In a wide-ranging Financial Times interview, German Chancellor Friedrich Merz rules out resignation, rejects any alliance with the far-right Alternative for Germany, warns about eurozone debt and challenges Donald Trump’s Russian diesel deal. With Germany’s industrial economy under pressure, Berlin is preparing a tougher European trade strategy while reaffirming its support for Ukraine.
France’s political and fiscal turmoil is sending shockwaves through European financial markets as sovereign borrowing costs rise and oil prices approach $105 a barrel. French 10-year bond yields have reached 4.85%, compared with 3.48% in Germany and 4.46% in Greece. In Athens, the benchmark stock index fell 2.06%, banking shares lost 3.61%, and trading turnover surged to €622 million.
The European Stability Mechanism warns that rising geopolitical tensions and the risk of a correction in U.S. financial markets could push the Eurozone into recession, reignite inflation, and place additional pressure on public finances.
The Middle East conflict drives energy prices higher, fuels inflation, and threatens Europe’s aviation sector
The election of Greece’s finance minister to the helm of the Eurogroup reshapes influence within the Eurozone and quietly alters the political balance inside New Democracy.
Greek Finance Minister takes on Belgian counterpart Van Peteghem with a bold plan for a strong, united Europe
Greece’s economy shows resilience despite challenges, with 2.1%-2.2% growth forecast for 2025-26, falling slightly in 2027, while unemployment declines and debt decreases.
Despite the overall trend, Greece faces persistent challenges with rising food prices, as the food, alcohol and tobacco index totaled 7.1% during the month, on an annual basis, slightly lower than 7.6% in Dec 2023
In a significant upgrade in bilateral relations and of deepening cooperation in areas of mutual interest, a Common Statement of Strategic Cooperation between Greece and Japan was signed on Monday by visiting Prime Minister Kyriakos Mitsotakis and his Japanese counterpart Fumio Kishida at the latter’s residence in Tokyo.
