Eurozone News
LAST UPDATE: July 29, 2025
Spain’s GDP growth speeds up in second quarter, beats forecast
Spain’s Q2 GDP rose 0.7% QoQ and 2.8% YoY—both above analyst expectations. Growth was driven by services, construction, and manufacturing; unemployment hit lowest since 2008.
Insight
Spain is outperforming the eurozone peers thanks to strong domestic demand and tourism-led services. It remains a growth exemplar amid broader regional stagnation. (Reuters, Global Banking | Finance)
ECB Says Consumers’ Inflation Expectations Eased in June
ECB survey shows inflation expectations dropped to 2.6% one-year ahead (from 2.8% in May) and held at 2.4% for two years ahead.
Insight
Falling inflation expectations help ease pressure on the ECB amid trade détente with the U.S. and reduce urgency for aggressive rate action. (Reuters, omniekonomi.se)
ECB to introduce ‘climate factor’ into lending operations
Starting in the second half of 2026, the ECB will apply a “climate factor” in its lending operations—reducing the collateral value of assets considered vulnerable to climate-related risks in order to buffer systemic exposures. (Reuters)
Insight
This move positions the ECB as a climate-policy pioneer among central banks, embedding environmental risk into monetary collateral frameworks and influencing bank lending incentives.
ECB staff accuse Christine Lagarde of running ‘unaccountable legal fortress’
ECB staff representatives accused President Christine Lagarde of creating an internal “legal fortress,” citing governance concerns such as restricting elected works council members from full-time staff advocacy roles. The staff committee warned of favoritism, burnout, and weakening of internal checks. (フィナンシャル・タイムズ)
Insight
The complaints reflect deep distrust by employees and signal growing tension over transparency and internal democracy—contrasting with the ECB’s public commitment to rule-of-law principles.
