EUR News
LAST UPDATE: September 13, 2025
IMF urges Romania to keep up deficit-cutting plans
The IMF urged Romania to maintain its deficit-cutting strategy, warning that delays could threaten fiscal sustainability and EU rule compliance.
Insight
Romania’s credibility with the EU and financial markets hinges on implementing consolidation; slippage risks higher borrowing costs and reduced access to EU funds.
UK economy stalls in July in fresh government setback
The UK economy recorded zero growth in July 2025, with manufacturing declines offsetting gains in services and construction.
Insight
The stagnation highlights persistent economic weakness, limiting fiscal space for the Labour government and raising political stakes ahead of the autumn budget.
UK public’s long-term inflation expectations rise to highest since 2019
Long-term inflation expectations rose to 3.8% in August 2025, the highest since 2019, while short-term expectations also increased.
Insight
Persistently high expectations could entrench inflationary pressures, complicating the Bank of England’s task and eroding public trust in monetary policy.
UK assets are in trouble — and any rewards come with plenty of risk
UK bond yields are among the highest in the G7, driving debt service costs above some major spending categories; equities lag behind global peers.
Insight
High yields may attract investors, but risks are significant: fiscal strain, inflation, and growth headwinds reduce the reliability of returns.
Turkish court could oust opposition leader in deepening political crisis
A court ruling could annul the 2023 congress of the opposition CHP, potentially unseating its leader Özgür Özel.
Insight
Such a move would weaken parliamentary opposition and deepen concerns over democratic backsliding, raising political and investor uncertainty.
Swedish budget watchdog slightly raises 2025 deficit forecast
Sweden’s fiscal watchdog raised its 2025 deficit forecast, citing weaker growth, tax cuts, and higher defense spending.
Insight
The upward revision highlights the strain between fiscal prudence and political priorities, raising the prospect of tighter financing conditions.
IMF urges Romania to keep up deficit-cutting plans
The IMF reiterated that Romania must pursue deficit reduction to safeguard fiscal stability and EU compliance.
Insight
Continued fiscal discipline will be critical to maintain investor confidence and prevent a ratings downgrade.
UK economy stalls in July in fresh government setback
The economy flatlined in July 2025, as output in manufacturing fell while services grew modestly.
Insight
Weak growth complicates fiscal planning and underscores structural challenges facing the UK economy.
UK public’s long-term inflation expectations rise to highest since 2019
British long-term inflation expectations climbed to their highest since 2019 at 3.8%.
Insight
Rising expectations may influence wage bargaining and risk embedding higher inflation into the economy.
UK assets are in trouble — and any rewards come with plenty of risk
UK financial assets face pressure: gilt yields are elevated, equities are lagging, and fiscal constraints weigh on performance.
Insight
The investment outlook is fragile—while yields appear attractive, systemic risks make the UK a less stable destination for capital.
Turkish court could oust opposition leader in deepening political crisis
Legal proceedings could nullify the CHP’s 2023 congress, threatening Özgür Özel’s leadership.
Insight
The erosion of political opposition further consolidates executive power, undermining checks and balances.
Swedish budget watchdog slightly raises 2025 deficit forecast
Sweden’s fiscal watchdog now expects larger 2025 deficits due to weaker growth and spending priorities.
Insight
The outlook suggests Sweden may need to adjust fiscal policy or borrowing plans, testing its reputation for prudence.
