Keywords: European economy


Bulgaria approves 2026 budget with wider deficit as government targets economic growth

Bulgaria's parliament has approved the country's long-awaited 2026 budget, setting out plans for a larger fiscal deficit as the government seeks to support economic growth following months of political uncertainty. The budget projects the deficit to reach 5.7% of gross domestic product (GDP)......

ECB officials urge caution on inflation as interest rate outlook remains flexible

European Central Bank policymakers have signalled a measured approach to future interest rate decisions, stressing the need to remain vigilant on inflation while indicating there is no immediate case for a rapid tightening of monetary policy. The comments, made on Wednesday, suggest that although inflation......

Growth: The French Economy Maintains a Positive Trajectory in the Second Quarter of 2026

The French economy continues its growth trajectory in spring 2026. According to the latest economic survey published by the Bank of France, the gross domestic product (GDP) is expected to increase by 0.2% in the second quarter, matching the pace observed during the first three months of the year. This......

Climate change could weaken Italy’s growth outlook and increase debt pressures by 2050

Climate change could become a major obstacle to Italy’s long-term economic performance, threatening to reduce growth potential and complicate efforts to manage the country’s already substantial public debt burden, according to a new study released on Wednesday. The analysis warns that rising......

European stocks face valuation challenge despite improving economic outlook, BofA warns

European equity markets may continue to benefit from an improving macroeconomic backdrop, but stronger economic growth alone is unlikely to generate another significant rally, according to analysts at Bank of America (BofA), who argue that current market valuations already reflect much of the positive......

Eurozone services sector shows signs of recovery as inflation pressures ease

The eurozone's services sector remained in contraction in June, but the pace of decline slowed significantly as inflationary pressures eased at a record rate, helping stabilize business activity across the currency bloc. According to the latest S&P Global Purchasing Managers' Index (PMI)......

Spain seeks continued representation on ECB Executive Board

Spain is expected to push for continued representation on the Executive Board of the European Central Bank (ECB) following the upcoming departure of Vice-President Luis de Guindos. As one of the eurozone’s largest economies, Spain considers its presence on the ECB’s top decision-making body......

European central bank survey shows limited signs of second-round inflation effects

A new survey from the European Central Bank (ECB) suggests that rising energy prices linked to geopolitical tensions are not yet translating into broader inflation pressures in the euro area economy. According to the European Central Bank, firms across the eurozone expect inflation to increase in the......

German economic institutes lower growth outlook and raise inflation forecasts

Germany’s leading economic institutes have revised down their growth projections for 2026 and 2027 while increasing their inflation forecasts, reflecting mounting economic pressures linked to rising energy costs. According to the updated outlook, economic growth in Europe’s largest economy......