Eurozone News
LAST UPDATE: September 2, 2025
Loss of Fed independence would push up borrowing costs, set off turmoil, ECB’s Schnabel says
ECB board member Isabel Schnabel warned that undermining Fed independence would raise borrowing costs and create financial instability.
Insight
Underscores the global importance of central bank independence for stable markets.
ECB’s Schnabel calls for steady rates as economy holds up in face of tariffs
Schnabel said the eurozone economy remains resilient despite tariffs, calling for steady interest rates.
Insight
Suggests confidence in the eurozone’s ability to absorb external shocks while maintaining stability.
ECB’s Simkus Hints at December Rate Cut, Econostream Says
ECB policymaker Gediminas Simkus suggested a potential rate cut in December, according to Econostream.
Insight
Indicates shifting expectations toward policy easing amid signs of economic slowdown.
ECB’s Kocher Advocates Caution Ahead of Next Decision
ECB Governing Council member Martin Kocher argued for a cautious stance ahead of the next policy decision.
Insight
Reflects continuity with the ECB’s careful policy approach, signaling aversion to premature shifts.
Euro zone inflation edges up in August
Inflation in the euro zone ticked slightly higher in August, remaining near the ECB’s 2% target.
Insight
Supports expectations that the ECB will maintain steady interest rates for now.
Italy close to exiting EU’s excess deficit procedure, ECB’s Lagarde says
Christine Lagarde stated that Italy is nearing exit from the EU’s excessive deficit procedure due to improving fiscal numbers.
Insight
Would signal enhanced fiscal stability and credibility for Italy within the EU framework.
German economy minister considers providing defence sector state financing
Economy Minister Katherina Reiche is exploring state financing options to support the defense industry amid rising security threats.
Insight
Aligns with Europe’s broader rearmament trend and strategic defense-industrial policy.
French Far Right Builds Momentum as Premier Heads Toward Exit
Far-right parties are gaining support as Prime Minister Bayrou faces mounting resignation pressure.
Insight
Could herald significant shifts in France’s political landscape and boost populist influence.
