EUR News
LAST UPDATE: June 27, 2025
EU strikes deal to overhaul bank failure rules
EU lawmakers agreed on a major overhaul of the bank resolution framework, extending resolution procedures to small and mid-sized banks and reinforcing industry-funded safety nets like deposit insurance and the Single Resolution Fund. Safeguards were added to prevent moral hazard.
Insight
Expanding resolution measures to include smaller banks boosts financial stability and sharings risk away from taxpayers. This reflects the EU’s push toward a unified banking union and reinforces market discipline through mandatory buffers.
EU Considers Lowering Tariffs on U.S. Imports in Bid to Woo Trump
The EU is reportedly considering reducing tariffs and non-tariff barriers on U.S. imports, increasing LNG purchases, and aligning on China policy to secure a swift trade deal before the U.S. tariff deadline.
Insight
This approach signals a shift toward concession-driven diplomacy by the EU. While politically sensitive, it reflects a strategic gamble to prevent potentially damaging 50% U.S. tariffs.
EU leaders to talk 2040 climate targets at Brussels summit
European leaders in Brussels prepared to add the 2040 climate target to the summit agenda, debating whether to maintain an ambitious reduction goal or scale it back. A formal proposal from the Commission is expected July 2.
Insight
The debate reflects tension between environmental ambition and economic concerns. While a stronger target would reinforce the EU’s global climate leadership, pushback from member states highlights the challenge of balancing industrial competitiveness and green priorities.
U.K. Pay Growth Has Some Way to Go Before It Normalizes, Says BOE’s Bailey
BOE Governor Andrew Bailey noted that while wage growth has slowed to around 5.1%, it must decelerate further for inflation to reach the 2% target. He emphasized that employment taxes appear to constrain wage and job growth more than fueling inflation.
Insight
Bailey’s remarks indicate that tighter monetary policy remains necessary. The interplay of employment taxes and wage dynamics suggests the labor market is cooling, giving the BOE room to navigate inflation risks more deliberately.
Starmer nears deal on welfare cuts after offering concessions to rebel MPs
PM Keir Starmer offered concessions to rebel Labour MPs on welfare cuts, limiting changes to new claimants and protecting disability payments, reducing planned savings. This deal aims to avoid a Commons defeat.
Insight
Starmer’s compromises underscore the tightrope between fiscal discipline and political cohesion. While preserving party unity, the scaled-back savings may raise concerns over public finances and his leadership credibility.
Britain vows to toughen its trade defences under new strategy
The UK outlined plans to enhance trade defense mechanisms, strengthening anti‑dumping and subsidy rules, reinforcing WTO engagement, and using digital tools to expedite investigations.
Insight
The strategy signals a more assertive post‑Brexit trade posture. While it boosts protections for domestic industries, it could stir trade friction if viewed as protectionist by major partners.
Turkish cenbank: decline in underlying trend of inflation continue in June
Turkey’s central bank reported that underlying inflation trends continued to decline in June, citing stabilizing food prices and slower domestic demand after holding rates steady at 46%.
Insight
The data suggest disinflation is gaining traction, supporting the bank’s cautious stance. However, ongoing inflation expectations and cautious pricing behavior still pose risks to sustained stabilization.
