EUR News
LAST UPDATE: June 19, 2025
EU parliament holding hard right at bay — for now
One year after hard-right parties gained strength in the European Parliament, mainstream centrist groups still hold control. But three right-wing factions now have 187 seats—forming a new force that could influence future policy alliances.
Insight
The centrist “firewall” endures, but its cracks suggest growing influence of the far right. Future coalition-building will shape EU policy balance on issues like migration, climate, and Russia.
EU countries reach deal on new defence funding programme
EU member states agreed on a €1.5 billion European Defence Industrial Programme (EDIP) to boost defense spending. It requires at least 65% of costs from EU or associated countries, balancing domestic sourcing with flexibility.
Insight
This compromise blends industrial protectionism with strategic pragmatism. EDIP sets a defense spending precedent while acknowledging Europe’s reliance on non-EU allies in critical sectors.
Germany’s Merz hopes for US-EU tariff agreement ‘in coming days’
On June 18, German Chancellor Friedrich Merz expressed optimism that an agreement resolving U.S.–EU tariff disputes could be reached “in the coming days,” following his recent discussions in Washington (marketscreener.com).
Insight
Merz’s upbeat tone underscores the political momentum to ease transatlantic trade tensions. A swift tariff accord would benefit both EU exporters and support global supply-chain stability.
Hungary to extend mortgage rate cap by six months – PM’s chief of staff
Hungary’s government announced an extension of its mortgage rate cap on floating‑rate loans for at least another six months. The cap, originally set at ~2.02%, helps shield borrowers from rising interest costs .
Insight
The move reflects ongoing populist economic policy in Hungary, aiming to ease household debt pressures ahead of elections. However, it may postpone necessary market adjustments and strain banks.
Serbia seeks new gas deal with Russia at ‘best price in Europe’
Serbia’s state energy boss, Dusan Bajatovic, said the country is negotiating a new gas contract with Russia’s Gazprom starting September for 3–10 years, aiming for Europe’s most competitive rate, despite EU import curbs .
Insight
Serbia’s energy policy signals a pragmatic trade-off: balancing EU accession ambitions with economic dependence on Russian gas. The deal may pressure Brussels on energy diversification timelines.
