EUR News
LAST UPDATE: September 25, 2025
EU Parliament Chief Expects Lawmakers to Approve US Trade Deal
The President of the European Parliament expects lawmakers to approve the recently agreed-upon trade deal with the US. The deal, which aims to reduce tariffs and trade barriers, was a result of a framework agreement reached in July. Its passage would mark a significant step towards improving trade relations between the two economic blocs.
Insight
The anticipated approval of this trade deal indicates a strong political will in the EU to strengthen economic ties with the US. This could provide a much-needed boost to trade and investment between the two partners, even as the global trading system faces increasing protectionist pressures and geopolitical fragmentation.
BOE’s Bailey Says Further to Go on Rate Cuts, Consumer Cautious
The Bank of England’s Governor, Andrew Bailey, stated that there is still “further to go” on rate cuts, but noted that consumers remain cautious despite the recent economic improvements. The central bank recently voted to hold the interest rate steady, as inflation remains elevated. Bailey’s comments signal a careful and gradual approach to monetary policy easing.
Insight
Bailey’s comments reflect the central bank’s cautious approach to managing inflation and economic recovery. The fact that consumers remain cautious despite rate cuts suggests that economic confidence is still fragile, and that the impact of high inflation and interest rates is still being felt by households and businesses.
Swiss-US Tariff Talks Now Helmed by Parmelin, Keller-Sutter Says
Swiss President Karin Keller-Sutter announced that Economy Minister Guy Parmelin is now in charge of trade talks with the US to address the 39% tariff on Swiss exports. The new tariffs, imposed by the US in August, have led to a significant drop in Swiss foreign sales and a reduced forecast for economic growth. The Swiss president has been personally criticized for the diplomatic setback.
Insight
The transfer of responsibility for the trade talks signals the seriousness of the dispute and the diplomatic difficulty of the situation. It highlights the vulnerability of small, export-oriented economies like Switzerland to protectionist policies from larger trade partners, and the political fallout that can result from failed negotiations.
Denmark Sells First Sovereign Bond With EU Green Label
Denmark has become the first country to issue a sovereign bond that aligns with the EU Green Bond Standard. The issuance is part of a “twin-bond structure” to help finance the country’s green transition, including renewable energy and decarbonization projects. The move underscores Denmark’s commitment to green finance and setting global standards.
Insight
Denmark’s pioneering role in issuing a “green bond” demonstrates a commitment to sustainable finance and sets a new benchmark for other European nations. This could help mobilize private capital toward green projects and help the EU achieve its climate targets, but it also places a new form of reporting and accountability on sovereign debt.
Czechs Hold Rates on Price Risks as Focus Shifts to Path Ahead
The Czech National Bank has held its key interest rate steady, with the central bank governor stating that lingering inflationary pressures prevent further cuts for now. The bank noted that it is prepared to either raise or lower rates at its next meeting, depending on new data. The decision signals a cautious approach amid high food and service prices and wage growth.
Insight
This decision highlights the persistent inflationary pressures facing many European economies, even as some central banks begin to ease policy. The Czech central bank’s wait-and-see approach reflects the difficult balance between controlling inflation and supporting economic growth, and signals that a clear path for future monetary policy remains uncertain.
Romania to revise 2025 budget with deficit of 8.4% of output next week, PM says
Romania’s Prime Minister stated that the government will revise its 2025 budget next week, projecting a deficit of 8.4% of GDP. The revision is driven by rising interest payments on debt and the costs of new social programs. The government aims to present the new budget to the European Commission by the end of November.
Insight
Romania’s significant budget revision reflects the mounting fiscal pressures facing many nations due to higher interest rates and increased public spending. The high deficit highlights the country’s economic vulnerability and the challenge of balancing popular social programs with the need for fiscal discipline to meet EU requirements.
Turkey signs 20-year deal with Mercuria to buy US gas
Turkey has signed a 20-year deal with the US-based energy company Mercuria to purchase liquefied natural gas (LNG). The agreement, which will provide up to 4 billion cubic meters of LNG annually, is part of Turkey’s strategy to diversify its energy sources and reduce its reliance on Russia. The deal could also give Turkey leverage in future negotiations with Russia’s Gazprom.
Insight
This long-term deal is a major strategic move for Turkey to enhance its energy security and reduce its geopolitical dependence on a single supplier. It highlights a broader shift in the global energy market, with nations increasingly turning to US energy exports to diversify their supply chains in an era of geopolitical risk.
