Eurozone News
LAST UPDATE: October 11, 2025
Digital euro could drain up to 700 billion euros of deposits in bank run, ECB says
The ECB warned that up to €700 billion in deposits could shift into digital euros in a severe crisis, potentially straining bank liquidity.
Insight
The findings underline potential systemic risks from a digital euro, raising questions over limits and safeguards.
ECB Officials Warn Against High Asset Price Valuations
ECB policymakers cautioned that inflated valuations across asset classes pose risks to financial stability.
Insight
The warning hints at potential policy tightening or macroprudential measures to curb speculative behavior.
ECB Action Is at Risk of Being Less Effective, But More Frequent, Dolenc Says
ECB Governing Council member Dolenc said future monetary interventions may become smaller yet more frequent as policy space narrows.
Insight
His comments reflect a shift toward micro-adjustments in monetary strategy amid constrained effectiveness of traditional tools.
Socialists Warn They May Topple France’s Next Government
The leader of France’s Socialist Party warned that the party may use its votes to bring down the next government if Macron’s choices clash with their values.
Insight
This highlights France’s fragile political balance and suggests Macron may struggle to maintain parliamentary support.
French debt risk premium set for slight weekly rise, focus on Macron’s moves
France’s bond spreads widened slightly this week as investors monitored political developments and Macron’s next steps on fiscal policy.
Insight
Rising spreads reflect market caution over political instability and fiscal risks in France.
Slovak government approves 2026 budget aiming to cut deficit to 4.1% of GDP
The Slovak government approved its 2026 budget plan targeting a fiscal deficit of 4.1% of GDP, emphasizing spending discipline and tax adjustments.
Insight
Slovakia’s commitment to deficit reduction shows efforts to maintain fiscal credibility amid EU scrutiny.
Germany Says China Rare Earths Export Curbs of ‘Great Concern’
Germany expressed serious concern over China’s new export restrictions on rare earth materials, warning of supply chain disruptions.
Insight
The move reflects growing EU anxiety about resource dependency on China and could prompt diversification efforts.
Spain says ‘committed to NATO’ after Trump expulsion threat
Spain reaffirmed its commitment to NATO after former U.S. President Donald Trump suggested the country could be expelled from the alliance.
Insight
Madrid’s firm stance aims to counter doubts about its alliance loyalty and uphold its defense credibility.
