Eurozone News
LAST UPDATE: September 5, 2025
Euro-Zone Quarterly Growth Driven by Inventories, Spending
The euro-zone’s latest quarterly growth was driven by inventory build-up and consumer spending.
Insight
Indicates short-term momentum but raises questions about the sustainability of demand-driven growth.
German economists cut view of growth in ’25, ’26 – WSJ
Germany’s Ifo Institute downgraded growth forecasts for 2025 and 2026, citing U.S. tariffs and lagging effects of fiscal stimulus.
Insight
Reflects ongoing weakness in Germany’s export-driven economy, showing policy support is insufficient to offset global headwinds.
German budget committee approves investment-heavy 2025 budget
Germany’s budget committee passed a 2025 budget with a focus on public investment, particularly in infrastructure and defense.
Insight
Highlights Berlin’s strategic emphasis on long-term growth and resilience through state-led spending.
France’s Bayrou Defends Confidence Vote as Needed Wake-Up Call
Prime Minister Bayrou defended his decision to call a confidence vote, saying it was necessary to break political deadlock.
Insight
Shows Bayrou’s attempt to assert control and reset the political agenda in the face of internal divisions.
France’s Perilous Debt Path Is Headache for Bayrou Successor
Analysts warned that France’s rising public debt will pose a significant challenge for Bayrou’s eventual successor.
Insight
Highlights long-term fiscal risks that could dominate political and economic debates in France.
