Eurozone News
LAST UPDATE: October 18, 2025
IMF urges more joint EU borrowing to pay for bloc’s public goods
The IMF proposed the EU increase joint borrowing to fund public goods, suggesting 0.9 % of GNI as a reference.
Insight
Collective borrowing could deepen fiscal integration and enhance capacity for shared investments.
France knows it must cut deficit and that calms markets, IMF says
The IMF observed that French markets were reassured by government recognition of the need for deficit reduction.
Insight
Credible commitments to fiscal consolidation can stabilize market sentiment.
ECB’s Lagarde Says Price Risks Have Narrowed Despite Uncertainty
Christine Lagarde said that inflation risks have become more contained even as uncertainty from trade tensions and global pressures persists.
Insight
Narrowed inflation risk gives the ECB more flexibility in balancing growth and monetary stability.
ECB’s Lagarde emphasises central bank independence
ECB President Christine Lagarde underscored the importance of central banks remaining free from political influence, especially as global monetary policies diverge.
Insight
Institutional autonomy is crucial to maintaining credibility and effective monetary management in turbulent environments.
Bank of Italy cuts Italian 2026 growth outlook on US tariffs, strong euro
The Bank of Italy downgraded its growth forecast for 2026—citing adverse effects from U.S. tariffs and euro strength.
Insight
External trade pressures and currency valuation risks are weighing on Italy’s export competitiveness and growth prospects.
German finance minister, Bundesbank president back Merz’s European stock market proposal
Germany’s Finance Minister and the Bundesbank President expressed support for Chancellor Merz’s plan to create a European stock exchange to strengthen the bloc’s capital markets.
Insight
The endorsement signals momentum behind efforts to reduce fragmentation and promote pan-European financial integration.
