Eurozone News
LAST UPDATE: July 25, 2025
Euro zone lending growth hits new two‑year high, ECB says
Lending to euro‑zone businesses surged to its highest level in two years, driven by post-rate-cut demand. Household credit also rose.
Insight
The acceleration reflects stronger credit appetite and support from monetary easing—but trade tensions and policy uncertainty remain a drag on broader activity.
ECB’s Kazaks Sees Little Need for Further Interest‑Rate Cuts
ECB Governing Council member Martins Kazaks said there’s little justification for further rate cuts unless the economy suffers a major blow, noting inflation is steady at 2% and economic performance aligned with target. (Bloomberg.com)
Insight
With inflation near the ECB’s 2% goal and growth stable, Kazaks indicates that policy is at a potential trough, preserving flexibility to tighten if needed late in 2026.
ECB should not ‘wait in vain’ for trade clarity, Rehn says
Finnish ECB policymaker Olli Rehn urged against delaying rate decisions while awaiting clarity on U.S. trade tariffs, stating needed information is expected by September. (TradingView, MarketScreener)
Insight
Rehn advocates acting on current economic data rather than deferring policy, emphasizing proactive decisions amid persistent uncertainty.
ECB’s Villeroy sees no price hikes from US tariffs
ECB official François Villeroy de Galhau said U.S. tariffs are unlikely to trigger inflation spikes in Europe, reinforcing confidence in ongoing disinflation. (MarketScreener, Reuters)
Insight
Villeroy’s view supports the ECB’s steady policy approach, suggesting external shocks are manageable and domestic inflation trends remain intact.
ECB picks new top adviser for Lagarde
The ECB has appointed Isabel Vansteenkiste as Christine Lagarde’s new chief adviser starting September 15, replacing Roland Straub. (MarketScreener, Reuters)
Insight
Vansteenkiste’s experience navigating previous euro‑area crises enhances Lagarde’s advisory capacity, potentially shaping strategic policy coordination.
Italy’s consumer sentiment rebounds in July but business morale worsens
Consumer sentiment in Italy rose in July to the highest since February, but business morale dipped in services and construction sectors. (MarketScreener, Reuters)
Insight
The divergence implies households are cautiously upbeat while firms remain cautious amid trade uncertainties and weak investment.
Irish consumer sentiment drops to near two‑year low in July
Consumer sentiment in Ireland fell sharply to near two-year lows in July, driven by concerns over prolonged inflation and potential exposure to U.S. tariffs. (MarketScreener, Reuters)
Insight
The decline reflects rising household anxiety, highlighting Ireland’s vulnerability through its tech and pharma export channels.
