EUR News
LAST UPDATE: July 4, 2025
European Gas Prices Rise on Signs of Global Demand for Fuel
European natural gas prices climbed due to expectations of strong global demand and warmer weather. The forecast for above-normal summer temperatures has tightened available supply, driving futures higher. (bloomberg.com, bloomberg.com)
Insight
The steady increase in demand combined with climate-driven heat waves is shifting LNG flows, intensifying competition for limited cargoes and potentially pressuring prices well into the season. This reflects broader energy-market stress amid volatility.
Poland’s July rate cut not the start of a cycle, central bank chief says
Poland’s central bank Governor Adam Glapinski clarified that the 25 bps rate cut to 5% in July does not signal the start of an easing cycle. Future decisions will be data-dependent, with inflation expected to fall into the target range soon.
Insight
The cautious tone reflects a balancing act—tackling still-elevated inflation (4.1% in June) while allowing room for targeted support. The messaging leaves door open for another cut but avoids committing to a multi-step easing path prematurely.
Romania’s pending tax hikes to avert ratings downgrade to junk, finance minister says
Romania’s finance minister warned that planned tax increases are necessary to avoid a potential ratings downgrade to junk. The revenue boost is intended to stabilize public finances and maintain sovereign investment-grade status.
Insight
Preemptive tax reforms indicate fiscal prudence and a commitment to sustaining creditworthiness. However, these measures may pose short-term headwinds to domestic demand and growth, especially if implemented too sharply or rapidly.
Switzerland seeks trade deal with Trump without getting into EU bind
Switzerland is exploring a direct trade agreement with the U.S. under the Trump administration, aiming to sidestep entanglement with EU trade frameworks—while avoiding duplication of Alpine partners.
Insight
This effort highlights Switzerland’s strategic bid to deepen ties with the U.S. while preserving trade autonomy. It could set a precedent for bilateralism post-Brexit and reflect cautious diversification of global trade relationships.
Bessent says he spoke with EU counterpart on trade
U.S. Deputy Treasury Secretary Tommy Bessent confirmed a recent conversation with his EU counterpart about ongoing trade discussions. Though details remain limited, the dialogue underscores resumed high-level coordination.
Insight
Renewed U.S.–EU trade engagement signals improved relations after previous tensions, laying the groundwork for resolving tariff frictions and coordinating on global economic policy. However, the lack of specifics suggests cautious diplomacy in early stages.
Macron says wants EU-US trade deal ‘as soon as possible’
French President Macron urged that an EU–US trade agreement “as soon as possible, with the lowest tariffs possible,” stressing fairness and firmness, citing urgency ahead of U.S. tariff deadlines. (lbcgroup.tv)
Insight
Macron’s push reflects France taking a leadership role in navigating transatlantic trade tensions—seeking to protect EU exporters by avoiding automatic tariff triggers under looming U.S. deadlines.
