Eurozone News
LAST UPDATE: September 10, 2025
France’s Macron names loyalist Lecornu as new prime minister
President Macron appointed Sébastien Lecornu—his defense minister and loyal ally—as France’s prime minister, aiming to preserve his reform agenda despite institutional instability.
Insight
Lecornu’s selection underscores Macron’s reliance on loyalists to stabilize governance as political fractures deepen.
French central bank sees 0.3% third-quarter growth
The Bank of France projects 0.3% GDP growth for Q3 2025, driven by strong manufacturing exports, even as construction and energy lag.
Insight
This moderate growth suggests resilience amid political uncertainty but hides sectoral imbalances.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
Investors now place France in the Eurozone “periphery,” as political instability and rising yields weigh on fiscal credibility.
Insight
France’s elevated borrowing costs reflect waning market confidence amid deepening political and fiscal uncertainty.
Macron’s Reward for Cutting French Taxes: Sluggish Growth and a Political Crisis
Cutting taxes has failed to boost growth and sparked political turmoil, deepening France’s economic dilemma.
Insight
Tax cuts amid weak growth underscore the limits of stimulus via tax relief in politically unstable environments.
ECB Push to Simplify Bank Rules Prompts Fears of Capital Demands
The ECB’s proposal to simplify bank capital rules has sparked worries that lenders may be pressured to increase capital buffers.
Insight
Regulators aim to streamline rules, but banks fear this could still heighten capital demands under future stress scenarios.
Slovakia plans deficit-reduction package worth 2.7 billion euros for 2026
Slovakia plans a €2.7 billion deficit-reduction plan for 2026, combining spending cuts and tax measures.
Insight
This reflects a proactive strategy to restore fiscal health and align with EU expectations.
