Middle East war likely to trigger interest rate hike, Latvian bank chief signals
The war in the Middle East is keeping energy prices higher for longer than expected, European Central Bank Governing Council member Mārtiņš Kazāks said, signaling that interest-rate hikes are likely....
View ArticleSpain’s alleged misuse of post-Covid funds sparks fury in frugal northern EU
BRUSSELS — Spain’s alleged misuse of the EU’s post-Covid funds to pay government pensions is triggering outrage in Germany and the Netherlands and reigniting criticism of joint EU debt. The European...
View ArticleTop ECB official warns oil shock may force interest rate hikes
The European Central Bank is edging closer to raising interest rates to prevent the latest oil shock from morphing into a broader inflation spiral, according to one of its more dovish policymakers. In...
View ArticleECB holds interest rates but keeps June hike in play as war drags on
FRANKFURT — The European Central Bank held its key interest rate at 2 percent but hinted heavily at a rate hike at its next meeting in June firmly on the table, as the fallout from the war in the...
View ArticleEurozone growth limps on as Iran war fuels stagflation fears
FRANKFURT — The eurozone economy eked out another quarter of growth at the start of the year — but the outlook is darkening fast. Output rose 0.1 percent during the first three months of 2026, slowing...
View ArticleECB expected to hold interest rates as oil writes the policy script
FRANKFURT — The European Central Bank heads into its policy meeting on Thursday with no good options, as it watches the consequences of the war in Iran ripple through the eurozone economy....
View ArticleWhy geopolitics is making central bankers’ job much harder
FRANKFURT — Geopolitics is colliding with monetary policy — and the European Central Bank is on the front line. Just four years after inflation surged to nearly 10 percent, Europe is facing another...
View ArticleStagflation warning lights flash for the eurozone as private sector contracts...
Europe’s economy is being squeezed by a toxic mix of stagnant growth and surging prices. That’s the stark signal from a closely watched survey Thursday that unexpectedly showed private-sector activity...
View ArticleECB warns of inflation as Iran war rages on
FRANKFURT — Europeans will feel the pain of the war on Iran in their wallets this year, even if things don’t get any worse from here on, the European Central Bank warned on Thursday. The ECB’s new...
View ArticleFog of war clouds global rate cut outlook
President Donald Trump is demanding that the Federal Reserve immediately lower borrowing costs. But the war in the Middle East has now made any interest rate cuts much less likely in 2026 — not just...
View ArticleGermany’s infrastructure borrowing binge is being wasted, reports say
FRANKFURT — Germany’s government has redirected the bulk of funds originally earmarked for infrastructure into covering budget gaps, according to new reports from two leading research institutes —...
View ArticleFrankfurt finds a golden solution to its European School problem
FRANKFURT — For some Eurocrat children, being born with a silver spoon in their mouth is only the beginning. Those in Frankfurt are set to be educated with gold under their feet. The City of Frankfurt...
View ArticleG7 weighs using emergency oil reserves amid soaring prices driven by war
Policymakers started last week by calling for calm and not rushing to judgment on what the U.S.-Israeli campaign against Iran meant for the economy. They started this week with the risk of the worst...
View ArticleECB faces agonizing trade-off if Iran war persists
FRANKFURT — An extended war in the Middle East will force the European Central Bank to choose between protecting growth and combating inflation, policymakers warned on Thursday. Since Israel and the...
View ArticleECB staffers fear backlash when speaking out, survey says
FRANKFURT — European Central Bank staffers believe they must keep their opinions to themselves — or face the consequences. That’s the message from a staff survey conducted by the ECB in November and...
View ArticleGreek central bank chief: We don’t depend on Russian shipping
ATHENS — Greece’s stellar economic growth does not depend on servicing the Russian oil industry. That’s the message from Greek central bank governor, Yannis Stournaras, amid accusations that Athens is...
View ArticleUnemployment hits 14-year high as Germany waits for Merz’s stimulus
Friedrich Merz’s stimulus can’t arrive quickly enough. The number of people out of work in Germany rose by more than expected again in September, as years of economic weakness took their toll on the...
View ArticleGerman recovery still on ‘shaky ground’, economic institutes say
The German economy should grow again for the first time in three years this year, but its long-term prospects remain challenging, five leading economic institutes said in a new forecast. Europe’s...
View ArticleClouds darken further over German economy
German business morale unexpectedly declined in September, a key survey showed Wednesday, adding to growing concerns among German business that Chancellor Friedrich Merz’s government will not deliver...
View ArticleLagarde furious as Eurocrats’ kids taught in containers
The city of the euro is failing Europe, according to European Central Bank President Christine Lagarde. After decades of promises, Frankfurt still hasn’t identified a site for a new school to cater to...
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