Eurozone News
LAST UPDATE: September 18, 2025
Incoming ECB Rate-Setter Pereira Says He’s ‘Definitely’ No Dove
Alvaro Santos Pereira, head of Portugal’s central bank and incoming rate-setter at the ECB Governing Council, asserted that he is “definitely not a dove,” signaling he is unlikely to push for aggressive interest rate cuts even as inflation moderates. (Bloomberg.com)
Insight
Pereira’s stance suggests that the ECB will maintain a cautious posture on monetary easing, potentially resisting market pressure for rapid cutbacks. As inflation risk remains uneven and the economic outlook fragile, having more hawkish or neutral voices could restrain expectations for rate cuts.
Tax the rich or fall: French PM faces budget ultimatum
Reuters
Prime Minister Sébastien Lecornu faces pressure from the Socialist Party to impose a 2% wealth tax on households with over €100 million in assets, to be included in the 2026 budget. Failure to include it might trigger a no-confidence motion.
Insight
This tax proposal symbolizes the tension between popular demand for income redistribution and the risks of political instability, capital flight, and alienating economic elites. It will test the government’s ability to balance fairness with economic competitiveness.
