EUR News
LAST UPDATE: July 15, 2025
EU warns of countermeasures over ‘absolutely unacceptable’ US tariff threat
The EU warned it would deploy countermeasures if the U.S. proceeds with implementing 30% tariffs on EU goods starting August 1. EU officials still favour negotiations but deem the threat “absolutely unacceptable.”
Insight
The EU’s readiness to retaliate reflects deep concern about trade sovereignty and a strategic use of countermeasures to defend against what it views as coercive U.S. trade tactics.
EU Official Says to Explore Asia Pacts as US Tariffs Loom
EU officials are considering expanding trade agreements with Asia to diversify partnerships and reduce reliance on U.S. markets, in anticipation of potential U.S. tariffs.
Insight
The pivot toward Asia reflects proactive EU strategic recalibration, aiming to strengthen global trade networks and mitigate risks from deteriorating U.S. trade relations.
Swiss zero rate squeeze on banks may lead to bumpy ride for borrowers
The Swiss National Bank cut its benchmark rate to 0% in June, reducing banks’ net interest income (~CHF 660m this year) and pressuring lending margins. Banks may raise credit and service charges; mortgage rates could rise and property risk increase.
Insight
Zero rates are compressing bank profitability, likely prompting cost pass-through to borrowers, tightening credit, and exacerbating property valuation risks—highlighting systemic vulnerability in ultra-low interest environments.
Turkish Official Is Pushing to Allow Firms to Restructure Loans
A senior official close to Erdogan is advocating for policies that enable companies to restructure loans amid rising non-performing debts.
Insight
The proposal reflects government concern over corporate debt stress; allowing restructuring may ease financial strain and stabilize vulnerable sectors.
Romania’s current account deficit widens to EUR 12.63 billion in Jan‑May
Romania posted a current account deficit of €12.63 billion in the first five months of 2025, up from about €8.61 billion during the same period in 2024 (トレーディングエコノミクス).
Insight
The widening gap reflects mounting external imbalances, likely due to a growing trade deficit and insufficient compensating service inflows, increasing dependence on capital inflows and exposing Romania to shifts in investor sentiment and funding risks.
Romanian government survives no confidence vote and pushes tax hikes through
Prime Minister Bolojan’s new coalition survived a no-confidence vote, paving the way for August tax increases (VAT, excises) to shrink a high budget deficit.
Insight
Surviving the vote allows implementation of austerity measures to avert ratings downgrades, though public pushback and political tension persist.
