Euro News (EUR)

Tariffs of 20% on European exports to the US are likely to lead to a significant decline in the growth rate of the German economy. Meanwhile, the impact on inflation will be more difficult to assess, said Fritzi Köhler-Geib, member of the Bundesbank's Executive Board.

Former head of the European Central Bank Mario Draghi views the German government's decision to increase defense spending as a ‘game changer.’ However, he warns that there are certain risks associated with the implementation of this plan.

Donald Trump's return to power has spurred calls for loosening of banking regulation in the EU, as creditors in the eurozone have often criticized the strict regulatory environment. However, the region's supervisors should remain cautious, said Patrick Montagner from the ECB.

ECB Governing Council member Francois Villeroy de Galhau confirmed the central bank maintains policy space for additional interest rate reductions, though the pace and extent of future cuts remain undetermined.

French manufacturing activity showed a moderate recovery in March, with the Purchasing Managers' Index (PMI) improving more than analysts had anticipated. Nevertheless, this growth has not yet offset the ongoing political tensions in the country, as reported by Bloomberg.

Holger Schmieding, of Berenberg Bank, noted that the risks of escalating trade tensions with the US pose a threat to the export-oriented EU economy. Business faces uncertainty and finds it difficult to plan investments. Despite positive developments, existing problems need to be addressed.

According to Jose Luis Escriva, a member of the European Central Bank (ECB) Governing Council and Bank of Spain governor, at this point it is extremely difficult to determine which exact inflation risks prevail in Europe. The official stated this at a conference organized by Caixaforum in Madrid.

A bold move by incoming German Chancellor Friedrich Merz to relax long-standing restrictions on government spending has drawn international acclaim, but sparked domestic backlash. This was reported by Reuters.

Germany's private sector grew at its fastest pace in 10 months in March as the S&P Global Composite Purchasing Managers’ Index rose to 50.9 from 50.4 in February, remaining above the threshold separating growth from contraction.

Business activity in the eurozone reached a seven-month high, just slightly short of the mark predicted by analysts. The composite PMI of the region rose to 50.4, above the level of 50 that separates recession from growth.