Eurozone News
LAST UPDATE: October 6, 2025
French Premier Lecornu Resigns After Cabinet Criticized
President Macron’s newly appointed prime minister, Lecornu, resigned after acute criticism of his cabinet choices. (ブルームバーグ)
Insight
The resignation highlights intense political fragility and internal divisions in France.
QUOTES-Reactions to the resignation of France’s one-day old government
Reactions poured in across the political spectrum after France’s government collapsed within hours of being appointed. (Reuters)
Insight
The quotes reveal the depth of institutional strain and public frustration with political instability.
EXPLAINER-Why is France mired in a rolling political crisis?
The article outlines how successive government collapses and a fragmented parliament have created continuous instability. (Reuters)
Insight
The pattern suggests deeper structural malaise in France’s political system rather than episodic failures.
Italy working hard to prevent extra US tariffs on pasta
The Italian government is appealing to both Washington and the European Commission to reconsider planned massive duties on pasta imports. (Reuters)
Insight
This trade dispute highlights how deeply supply chain politics and national identity (pasta as “Italian”) intersect with global tariffs.
Bank of Portugal chief sees greater monetary policy normalcy ahead
The head of Portugal’s central bank expects that monetary policy will soon return to more normal levels.
Insight
This reflects growing confidence in inflation control and economic stabilization in the Eurozone periphery.
Greece expects higher growth, surpluses in 2026
Greece forecasts stronger economic growth and fiscal surpluses next year.
Insight
The optimism hinges on structural reforms and improving export-driven sectors.
ECB’s Guindos and Lane Signal Little Urgency to Change Rates for Now
ECB Vice-President Luis de Guindos and Chief Economist Philip Lane signaled that they see no strong impetus for immediate rate cuts, citing balanced risks in inflation and the need to observe monetary transmission.
Insight
The comments suggest the ECB wants to maintain headroom and avoid premature loosening, especially if inflation surprises upward or external risks intensify.
Race for ECB’s No. 2 Job to Shape Search for Lagarde Succession
With Christine Lagarde’s term approaching a transition phase, a contest is emerging for her successor(s), notably for the ECB’s Vice-President slot, which could influence policy direction in coming years.
Insight
The internal contest is likely to reflect divisions over monetary strategy (hawk vs dovish) and could recalibrate the balance of power inside the ECB.
