Euro News (EUR)

European Commission President Ursula von der Leyen announced that the EU has received the latest trade proposal from the US, though the specifics of Washington's demands remain undisclosed.

At a meeting on Thursday, German lawmakers passed a multibillion-euro package of tax breaks to support companies and bolster investment as part of their plan to restore growth in Germany's economy after two years of recession.

German consumer sentiment showed a decline heading into July 2025. According to the GfK survey, the confidence index dropped to -20.3 points, missing analysts' forecast of -19.1. A reading below zero signals weaker private consumption compared to the same period last year.

On Thursday, EU leaders must inform the European Commission whether they’re ready to accept the 10% US tariffs or keep negotiating in hopes of securing better terms. According to Reuters, most are leaning toward the first option to avoid further escalation of tensions.

The sentiment among German exporters soured in June amid uncertainty surrounding US tariffs. The Ifo Institute's index of export expectations fell to -3.9 points from -3.0 in May.

Retail has become the most distressed sector in Europe, surpassing industrial and real-estate companies, according to the latest report by Weil, Gotshal & Manges.

Spain’s economy slowed to 0.6% in the first quarter of 2025 compared to the previous period, as geopolitical instability and uncertain US trade policy fuel concerns about global GDP growth, Reuters reports.

Bloomberg reports that European nations’ plans to allocate trillions of euros to defense may prove economically ineffective. Without improving spending efficiency, the impact will remain short-lived and marginal.

As the 90-day pause on US tariff increases for European imports nears its end, markets are paying more attention to the issue. The parties continue to negotiate, but if the US introduces additional duties against the EU, the region is likely to take retaliatory measures, Bloomberg reports.

According to the ECB’s chief economist, Philip Lane, the central bank will only react to major shifts in the inflation outlook, dismissing small fluctuations, given that price growth in the eurozone is currently stable.