Eurozone News
LAST UPDATE: June 13, 2025
ECB Now More Concerned by Threat of Slow Growth, Says De Guindos
ECB Vice-President Luis de Guindos stated that the bank is now more concerned about slow growth rather than inflation, citing elevated uncertainty from global trade tensions
Insight
The shift signals potential for looser policy sooner than expected if growth weakens further. However, continued trade frictions and geopolitical risks may limit easing options.
ECB Is in Good Position to Withstand Future Shocks, Lagarde Says
ECB President Christine Lagarde said the central bank is well placed to handle sudden economic shifts, with inflation stabilized near 2% and monetary policy suitably calibrated. (bloomberg.com)
Insight
Lagarde’s remarks signal confidence in the ECB’s current stance, suggesting the bank can absorb future shocks without further rate adjustments—an important anchor amid lingering global uncertainty.
ECB monetary policy is in a ‘good place’ now, says ECB’s Schnabel
ECB board member Isabel Schnabel stated that after eight interest rate cuts—deposit rate at 2%—the ECB’s policy is appropriately balanced, with inflation forecasted to return to 2%.
Insight
Schnabel’s endorsement of the current policy mix highlights the bank’s cautious approach, signaling openness to further cuts only if inflation dynamics deteriorate.
French Senate rejects tighter tax on ultra rich
The French Senate voted down a proposed 2% wealth tax on the ultra-rich, rejecting the “Zucman tax” despite its earlier approval in the lower house.
Insight
The Senate’s decision underscores legislative resistance to aggressive fiscal measures on high-net-worth individuals, potentially complicating efforts to reduce public deficits through wealth taxation.
Italy says it needs at least 10 years to raise defense spending
FM Antonio Tajani stated that Italy would need a decade to meet NATO’s defense spending targets, despite accounting adjustments to reach the 2% goal by 2025; rising debt limits deeper hikes.
Insight
Italy’s long timeline reflects the struggle to balance NATO commitments with high public debt. While signaling alignment, Rome’s approach reveals the fiscal limits of deeper military investment.
Spain’s PM rejects calls for snap election as scandals mount
PM Pedro Sánchez apologized for a scandal involving a close ally and pledged external audits but ruled out snap elections, insisting the attacks on his government are “not grounded in reality.”
Insight
Sánchez’s defiant stance illustrates his strategy to manage scandals internally and retain power—betting that procedural reforms will stabilize his fragile coalition and withstand political turbulence.
Germany to send mid-term fiscal plan to Brussels at end of July, minister says
Finance Minister Lars Klingbeil confirmed that Germany will submit its medium-term fiscal-structural plan for 2025–2026 to the European Commission by late July, following the finalization of both budgets.
Insight
This timeline ensures Germany remains compliant with EU fiscal rules while accommodating its ambitious defense and investment spending programs, reflecting efforts to balance solidarity with national priorities.
