Europe economy

THE BROAD VIEW

Superpower Europe

The 27-country bloc is increasingly pursuing investments and reforms that will make it not only unassailable but also widely attractive in a dangerous world

For now, Lagarde is likely to repeat that the ECB has no exchange rate target and that the euro’s strength is merely one factor that impacts inflation.

Choppy markets threaten ECB’s ‘good place’ but rates still firmly on hold

The euro zone’s central bank has been on hold since ending a year-long run of rate cuts in June

The pattern of under-consumption in China will not be easy to break, as it would demand a wholesale transformation of the economy's structure.
PERSPECTIVE

The major economies’ prospects in 2026

The forces shaping the performance of China, Europe and the US are largely immune to policy

Tariffs alone have added 0.7 percentage point to inflation, making the typical US household US$600 poorer.

Don’t be fooled – everything has changed for the global economy: Gita Gopinath

Damage caused by US tariffs has so far been muted but that won’t last

JPMorgan CEO Jamie Dimon says: "Europe has a real problem.”

JPMorgan CEO Jamie Dimon says Europe’s slow bureaucracy poses major economic risk to US

He praises some European leaders but warns that politics is ‘really hard’ despite awareness of key issues

The National Security Strategy report warned that if current trends continue, the European continent will be unrecognisable within 20 years.

Trump warns European civilisation faces ‘erasure’

Cultural and political failures threaten continent’s way of life more than its weak economy

President Alexander Stubb says "resilience” is a part of Finnish DNA.

Can quality of life be a superpower? Ask Finland

Bank of Finland governor Olli Rehn calls on all of Europe to ‘get its act together’

With inflation hovering around 2% and forecasts signalling an economic rebound will gain traction towards year-end, most are content to leave the deposit rate where it is.

Eurozone to get hard data on tariff damage as ECB sets rates

Analysts expect the bloc to maintain the minimal 0.1% expansion it managed in the three months to June

On average, the 27 EU members’ ageing-related costs will rise by just over 1% of gross domestic product over the next 45 years, a Bruegel report shows.
THE BOTTOM LINE

Europe’s ageing burden far less than in the US or China

The most remarkable takeaway in a new Bruegel report is how relatively contained Europe’s fiscal burden appears in aggregate

After eight quarter-point cuts in a year, the ECB has signalled in July that further action will require a major shift in the economy.

ECB officials sticking to steady-rates plan after trade deal

Economists still expect a final quarter-point rate cut in December, three months later than they predicted in July