EUR News
LAST UPDATE: August 25, 2025
EU’s Von der Leyen Defends ‘Strong, If Not Perfect’ Trade Deal
EU Commission President Ursula von der Leyen defended the U.S-EU trade deal as stabilizing and “strong, if not perfect,” aimed at preserving predictability amid tensions.
Insight
The endorsement underscores the EU’s preference for pragmatic agreements that manage geopolitical risk, even when not ideal, reflecting cautious but deliberate economic diplomacy.
Bank of England’s Bailey says UK has ‘acute challenge’ over weak growth
Bank of England Governor Andrew Bailey warned that the UK is facing a deep-seated structural issue: sluggish growth and low labor force participation driven by demographic shifts and illness-related inactivity.
Insight
The remarks suggest monetary policy alone may be insufficient, signaling urgency for systemic labor and productivity reforms to address long-term economic malaise.
Turkey’s Central Bank Ends Crisis-Era Lira Protection Scheme
Turkey ended its FX-protected deposit scheme—a costly mechanism backing the lira against devaluation—effective August 23. Existing accounts will run until maturity; no new ones will open.
Insight
This marks a retreat from aggressive interventionist policy toward more orthodox monetary management, as the government shifts away from alarming levels of fiscal distortion.
