EUR News
LAST UPDATE: July 23, 2025
EU trade chief: EU-China summit chance to tackle key trade issues
Ahead of the EU-China summit, Trade Commissioner Maroš Šefčovič emphasized opportunities to address market access, IP issues, subsidies, and ensure balanced trade (tradingview.com).
Insight
The summit offers a strategic venue to strengthen Europe’s economic diplomacy and recalibrate EU-China relations, with trade fairness and investment protocols in focus.
ANALYSIS-EU leaders brace for frosty China summit as trade frictions bite
Ahead of the summit on July 24, EU leaders carry low expectations as disputes over rare earths, EV tariffs, sanctions, and medical procurement create tension. The summit was shortened to one day, with limited progress expected beyond a joint statement on climate.
Insight
The deep-seated economic and strategic rifts—including China’s leverage via rare earth controls—suggest that EU-China relations may be entering a new low. Europe’s transatlantic alignment is weakening, and China may seize the opportunity.
European second-quarter corporate profits expected to fall 0.3%
LSEG forecasts a 0.3% decline in Q2 2025 corporate earnings, down from a prior -0.7%. Revenues are expected to drop 3.1%—worst in over a year—as trade uncertainties and euro strength hit exporters. Tech will rise, while consumer cyclicals weaken.
Insight
The flattening of profit declines suggests resilience in some sectors despite headwinds. However, vulnerability among cyclical industries highlights the cost pressures from tariffs and currency fluctuations.
Bank of England’s Bailey defends bank rules after Reeves attack
Governor Andrew Bailey rebuffed Finance Minister Rachel Reeves’s critique of banking regulation, emphasizing the importance of ring-fencing and stability. He supports fine-tuning but insists core rules remain, despite pressure to boost growth.
Insight
Bailey’s stance signals a continued preference for conservative regulation. While growth pressures mount, the BoE prioritizes stability, indicating potential tension with government reform aspirations.
Rachel Reeves defends retreat over planning bill as tactical move to speed up reforms
Reeves defended a strategic withdrawal of a planning bill, calling it a tactical move to expedite broader reforms. She aims to ease regulatory bottlenecks, stimulate housing and infrastructure while maintaining fiscal discipline.
Insight
The maneuver shows political pragmatism—pause the contentious to accelerate the essential. Reeves is balancing regulatory reform with economic growth strategies, aiming for long-term efficiency gains.
Wary of inflation, Hungary central bank keeps base rate on hold at 6.5%
The National Bank of Hungary kept its key rate at 6.5%, citing persistent inflation risks and external pressures. It stressed data dependency before future moves.
Insight
The decision reflects tightening monetary constraints in emerging Europe, balancing growth and rising prices. Hungary appears cautious amidst eurozone spillovers.
Polish retail sales disappoint in June, but quarterly growth still seen picking up
June retail sales fell short of expectations, but Q2 sales remain on track for growth, supported by consumer spending.
Insight
The slight slowdown could be noise; sustained purchasing power fuels growth outlook. However, policymakers should monitor consumer sentiment.
Moldova’s pro-Russian parties unite to seek September election win
Two leading pro-Russia parties formed an alliance for the September election, aiming to consolidate support and challenge pro-EU forces.
Insight
The coalition underscores Moscow’s regional influence. Pro-European incumbents now face a strengthened rival as Moldova’s geopolitical orientation remains contested.
Modi’s Visit Sparks Indian Bids For Croatia’s Infrastructure
Indian firms are exploring infrastructure projects in Croatia following PM Modi’s visit, including ports, energy, and transport.
Insight
Modi’s diplomacy is catalyzing outbound investment, diversifying India’s global economic footprint. For Croatia, it signals an opportunity to tap emerging-market capital.
