Eurozone News
LAST UPDATE: August 26, 2025
Euro-Zone Economy Is Proving Resilient, ECB’s Lagarde tells Fox
ECB President Christine Lagarde said that the euro-area economy is proving resilient and nearing recovery, with inflation and medium-term expectations around the 2% target, despite shocks like higher U.S. tariffs.
Insight
Her remarks highlight the eurozone’s underlying economic strength and confidence in monetary policy, suggesting that external pressures such as tariffs may not derail the recovery underway.
French PM calls risky confidence vote over budget cuts to tackle debt
French Prime Minister has called for a confidence vote tied to budget cuts aimed at debt reduction—an extraordinary move that sent the 10-year bond yield to its highest level since March and widened spreads versus Germany.
Insight
Linking fiscal reform to government survival spotlight the fragility of France’s minority coalition; markets reacted swiftly, signaling that political instability could spur increases in borrowing costs and fiscal stress.
‘Inconceivable’ for French Socialists to back PM Bayrou in confidence vote, Faure says
Socialist leader Olivier Faure said it was “inconceivable” for his party to support PM François Bayrou in the upcoming confidence vote. Socialist votes could critically undermine the government.
Insight
This highlights the precariousness of Bayrou’s administration and the high stakes of the vote; a Socialist boycott could trigger a collapse and possible elections.
