EUR News
LAST UPDATE: July 1, 2025
EU to Accept Trump’s Universal Tariff But Seeks Key Exemptions
The EU is preparing to accept a proposed universal U.S. tariff under Trump’s administration, provided certain European sectors—like aerospace and agriculture—receive carve-outs.
Insight
The compromise suggests Brussels is willing to strategically concede in exchange for key exemptions, signaling a pragmatic shift in negotiating posture to avoid broader economic friction.
EU tech rules not included in U.S. trade talks, EU Commission says
The European Commission clarified that its new digital regulations (DMA) are off the table in U.S.–EU trade talks, emphasizing that neither side will pressure the other’s tech rules.
Insight
This stance reflects the EU’s intent to protect its regulatory autonomy, avoiding a replay of past conflicts over digital governance in trans‑Atlantic negotiations.
European companies look to France for domestic rare earths sector
European firms are turning to France to build a domestic rare earths ecosystem, boosting plants for separation, refining, and recycling under the EU’s Critical Raw Materials Act .
Insight
France’s leadership in rare earths is a strategic response to China’s dominance and recent export controls. While existing capacity is limited, government support and industrial push position France as a crucial hub in Europe’s bid for supply chain autonomy.
Immigration Hawk Denmark Loosens Rules for Foreign Workers
Denmark has relaxed its stringent immigration policies to better attract skilled foreign workers by easing requirements such as language tests and salary thresholds.
Insight
The policy shift highlights the tension between welfare-state ideals and labor market needs. Denmark’s move signals that even traditionally restrictive countries must adapt to demographic challenges and labor shortages.
UK’s watered down welfare reforms will push 150,000 into poverty, modelling shows
Despite scaling back disability and sickness benefit rule changes to affect only new claimants, government modelling forecasts 150,000 more individuals entering relative poverty by 2030.
Insight
The softened reforms reflect political compromise, yet highlight persistent risks of creating a two-tier welfare system — potentially deepening poverty even as the government promotes employment incentives.
Polish CPI to be around 3% in July, says finance minister
Poland’s finance minister expects consumer price inflation to be roughly 3% in July, following June’s reading.
Insight
Officials aiming to stabilize inflation around the central bank’s target signal confidence in current containment efforts, potentially paving the way for looser monetary policy if trends hold.
EU trade commissioner Sefcovic will fly to Washington on Tuesday for trade talks
EU Trade Commissioner Maroš Šefčovič will travel to Washington on Tuesday to take up trade negotiations, amidst an early July deadline imposed by the US for tariff resolution.
Insight
Šefčovič’s involvement signals deep EU engagement and seriousness in salvaging a trade deal. The timing underscores tight deadlines and the delicate balance between deterrent tariffs and diplomatic agreement.
Thousands evacuated in Turkey as Europe is hit by early summer heatwave
A heatwave pushing temperatures 5–10 °C above seasonal norms has triggered wildfires and evacuations across Europe, with over 50,000 people in Turkey’s İzmir region displaced.
Insight
This event underscores intensifying climate risks, with heatwaves and resulting wildfires becoming increasingly common — emphasizing the urgent need for adaptation and disaster-response planning.
