Eurozone News
LAST UPDATE: August 29, 2025
German unemployment tops three million for first time in a decade
Germany’s jobless count exceeded 3 million in August for the first time in over a decade, though the adjusted rate held at 6.3%.
Insight
The milestone heightens pressure on policymakers to enact structural reforms to reverse economic stagnation.
Germany’s Merz says rise in unemployment strengthens case for economic reform
Chancellor Merz stated that rising unemployment underscores the urgency of economic reforms to spur growth and employability.
Insight
The data-driven boost strengthens the political momentum behind his reform agenda, despite possible domestic resistance.
French, Spanish and Italian Inflation Comes In Below Forecasts
French inflation eased further below the ECB’s 2% target in August, following similar trends in Spain and Italy. (Bloomberg.com)
Insight
Inflation in major Eurozone economies continues to cool, supporting the case for potential ECB rate cuts.
Italy’s economy shrank in second quarter, stats agency confirms
Italy’s economy contracted by 0.1% QoQ in Q2, driven by negative trade flows, though domestic investment rose slightly. YoY growth was 0.4%. (wkzo.com, Investing.com)
Insight
The contraction reflects external pressures like U.S. tariffs, underscoring structural vulnerabilities despite resilient domestic demand.
Slovenia’s CPI rises to 3.0% year-on-year in August
Slovenia’s consumer price index rose 3.0% YoY in August, up from 2.8% in July, driven by higher food and beverage costs. (TradingView)
Insight
Inflation is rising moderately past recent lows, signaling persistence in food-related price pressures.
