EUR News
LAST UPDATE: June 26, 2025
EU leaders meet to decide on whether to back quick US trade deal or seek better terms
On June 26, EU heads of state and government are convening in Brussels to determine if they should accept current U.S. tariffs under a fast-track deal or hold out for improved terms. The U.S. has kept 10% tariffs on most EU goods, with elevated rates on steel, aluminum, and autos.
Insight
The summit reflects the EU’s strategic dilemma: act swiftly to prevent economic damage ahead of Trump’s July 9 deadline or risk confrontation by leveraging digital taxes and new tariffs. Internal divisions—especially from Slovakia and Hungary over energy—could shape the bloc’s united stance.
Denmark to push for stricter EU migration policies
As EU presidency begins July 1, Denmark under PM Frederiksen plans to champion policies favoring external asylum processing and tighter ECHR appeal rules, aligning with nations like Italy, Poland, and Germany.
Insight
Denmark aims to export its hardline migration stance, institutionalising asylum offshoring and reducing legal appeals. This signals a shift toward securitisation and away from humanitarian asylum norms across the EU.
EU should use trade deals to return migrants, says minister
Belgian Migration Minister Van Bossuyt suggested linking trade and visa deals with non-cooperative countries to compel them to accept deported migrants. Only ~20% of asylum rejections result in returns.
Insight
This proposal marks a pivot to transactional diplomacy, combining economic leverage with migration control. It follows a global trend of “migration diplomacy” but risks straining relations with vulnerable states.
Von der Leyen faces vote of confidence over Pfizer text scandal
A no-confidence motion spearheaded by far-right Romanian MEP Piperea challenged President von der Leyen’s refusal to disclose text messages with Pfizer’s CEO during COVID-19 vaccine negotiations. More than 72 signatures were secured, though two-thirds support needed to pass.
Insight
While unlikely to succeed, the motion highlights mounting pressure on the Commission for greater transparency and may force von der Leyen to engage more openly with Parliament, impacting legislative diplomacy.
UK joins WTO trade arbitration alternative
On June 25, the UK joined the Multi‑Party Interim Appeal Arbitration Arrangement (MPIA), alongside 56 members like the EU, Canada, and Brazil. The MPIA offers a temporary mechanism for WTO appellate review following the dysfunction of its Appellate Body since 2019.
Insight
By joining MPIA, the UK reinforces its commitment to a rules-based multilateral trade order, protecting exporters from unresolved disputes. The move aligns with a recalibrated post-Brexit trade policy emphasizing global stability.
Top UK Business Leader Warns Rachel Reeves Not to Hike Corporate Taxes
British Chambers of Commerce Director‑General Shevaun Haviland urged the UK government not to increase corporate taxes, citing concerns such hikes would dampen economic growth and business investment (news.bloomberglaw.com).
Insight
The warning highlights the tension between fiscal discipline and growth: raising corporate tax risked undercutting business confidence amid weak investment and stagnant incomes. Reeves must balance budgetary goals with economic incentives.
UK living standards set to stagnate for rest of 2020s, think tank says
A Resolution Foundation report forecasts that median household incomes will grow only 1% ahead of inflation by FY 2029/30. Lower-income households may see declines, mortgage holders face income squeeze, while pensioners gain. Root causes include benefit limits and high interest rates .
Insight
The outlook underscores a potential “lost decade” for most UK households. Without policy shifts—like removing the two-child benefit cap or relaxing welfare strictures—Reeves’ government may struggle to improve living standards.
Hungary central bank says government price curbs have temporary impact on inflation
Hungary’s central bank reported that government-mandated price controls have only short-lived effects; inflation remains stubbornly high, prompting the bank to maintain tight monetary policy despite slow growth .
Insight
The central bank is signaling resistance to political interventions in inflation management. By prioritizing price stability over government sentiment, it’s reinforcing its independence ahead of a challenging economic and political climate.
