Euro News (EUR)

Global trade tensions and political uncertainty in France keep putting the European country's economy under pressure. Insee expects French GDP to expand by about 0.1% in the first three months of 2025.

The ECB is calling on banks to prepare for reduced liquidity, recommending to develop IT infrastructure and train staff to work with new sources of funding, even though operational framework reforms are scheduled for 2026.

According to the European Central Bank (ECB), the housing market in the region has recovered from the recent downturn, and the prices are likely to continue rising. Such dynamics may negatively affect housing affordability, despite the softer monetary policy.

A decrease of the indicator value may contribute to the fall in quotes of EUR.

On Monday, Germany's Ifo Institute revised its economic growth forecast for Germany downward to 0.2%, citing a decline in consumer sentiment. Some improvement is anticipated in 2026, with Ifo representatives projecting growth of 0.8%.

According to Bloomberg, Germany's finance package intended to increase spending on defense and infrastructure by means of the national debt will be approved on Tuesday. Representatives of the Conservative and Social Democratic parties expressed their belief that the agreement will be adopted.

During an interview with the radio station Onda Cero, Vice President of the European Central Bank (ECB) Luis de Guindos stated that inflation in the services sector is slowing down. This inflation indicator, which had remained around 4% for an extended period, decreased to 3.7% in February.

According to analysts polled by Bloomberg, the European Central Bank (ECB) will reduce borrowing costs two more times this year, in April and June. Thus, the deposit rate will not fall below 2%, as previously assumed.

Under the leadership of Donald Trump, the United States is witnessing policies that are causing considerable unease among investors. The growth trajectory of the global economy is still at the forefront of market discussions.

On Sunday, the German parliament's budget committee approved the plan of a significant increase in government borrowing aimed at bolstering defense and boosting the country's GDP growth, Reuters reports.