EUR News
LAST UPDATE: July 25, 2025
EU says US trade deal is within reach, while backing counter‑tariffs
EU Trade Commissioner said a U.S. trade deal is possible soon, while affirming that counter-tariffs on up to €93 billion in U.S. goods remain ready if negotiations fail.
Insight
The dual approach reflects strategic flexibility—engaging proactively with the U.S. while preserving defensive trade measures to protect EU interests in case negotiations falter.
UK is Back on World Stage, Starmer Says After Sealing India Deal
After finalizing a major trade pact with India—Britain’s largest since Brexit—PM Starmer declared the UK has reclaimed global relevance, with tariff cuts on key exports like whisky and cars.
Insight
The India deal embodies Britain’s post-Brexit pivot to global markets and diplomatic reinvention. It strengthens ties with Asia and signals ambition to diversify trade beyond Europe.
Turkey Central Bank Cuts Interest Rates More Than Expected
Turkey’s central bank unexpectedly cut its key one-week repo rate by 300 bps, reducing it from 46% to 43%—the first cut since March. The move came amid stabilized markets and easing inflation (35% in June). Rate corridor’s upper bound also shifted downward from 49% to 46%.
Insight
The decision reflects renewed confidence in the disinflation trend and market normalization post-political upheaval. However, maintaining a tight monetary stance remains critical due to lingering inflation risks and political uncertainty.
Poland secures $4 billion US loan guarantee to boost military modernization
Poland will sign a $4 billion U.S. loan guarantee to finance key defense upgrades—such as Patriot systems, HIMARS, and helicopters. Poland plans to spend 4.7% of GDP on defense in 2025 and increase to 5% in 2026.
Insight
The loan underscores Poland’s role as NATO’s eastern anchor. It strengthens ties with the U.S. and signals Warsaw’s commitment to deterrence amid rising regional instability.
Serbia Will Hoard All Its Gold at Home, Shunning Global Hubs
Serbia plans to store all of its ~50.5 tons of gold reserves (~$6 billion) domestically, departing from the common practice of holding bullion in international hubs like Switzerland or the U.S. Repatriation began in 2021 and will complete soon.
Insight
The move underscores a desire for full monetary sovereignty and crisis resilience. It reduces exposure to external asset freezes but may limit access to international liquidity options.
Jeremy Corbyn sets up ‘Your Party’ to attract leftwing voters from Labour
Jeremy Corbyn and Zarah Sultana announced plans for a new left-wing political party—provisionally called “Your Party”—to mobilize voters disillusioned with Labour’s centrist policies, including wealth redistribution, public ownership, and opposition to arms sales to Israel (フィナンシャル・タイムズ).
Insight
The launch poses a potential realignment on the UK left: even modest vote support could split Labour’s base in swing seats, deepening intra-left fragmentation and challenging Keir Starmer’s centrist direction.
Montenegro secures 350 million euros from EBRD and EU for transport upgrade
Montenegro received €350 million in EBRD loans (up to €200 m) and EU grants (€150 m) to construct the Matesevo–Andrijevica highway, enhancing regional connectivity and supporting EU integration efforts (Reuters, ebrd.com).
Insight
The infrastructure project not only boosts national development but also signals Montenegro’s tangible progress toward EU alignment, with practical economic integration in transport corridors.
