
EU to Give Final Nod to Bulgaria's Euro-Zone Entry Next Year
Adopting the European single currency will be the culmination of nearly two decades of work toward accession, an ambition since Bulgaria joined the EU in 2007. The euro zone will recruit a new member as European Central Bank President Christine Lagarde raise the currency's global profile as US trade policy diminishes the standing of the dollar.
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French consumer inflation confirmed at 0.9% in July
(Reuters) -Consumer price inflation in France was stable in July and met analysts' expectations and the preliminary reading, statistics office INSEE said on Thursday. France's harmonized inflation rate, adjusted for comparison with other euro zone countries, was +0.9% year-on-year in July, INSEE said. A poll of 17 analysts surveyed by Reuters had on average expected the +0.9% rate for EU-harmonised inflation. INSEE reported the same figure in its preliminary reading. The consumer inflation rate was also at +0.9% year-on-year in June. Sign in to access your portfolio
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No holiday for 42 million EU workers: Where is holiday the most unaffordable in Europe?
In 2023, 15% of employed people in the EU were unable to afford a one-week holiday away from home. While this percentage might not appear very high at first glance, it represents around 42 million workers. In each of the EU's "Big Four" economies (Germany, France, Spain and Italy), over 5 million workers were unable to afford a week-long holiday according to Eurostat data published by the European Trade Union Confederation (ETUC). 'Taking a break with family or friends is important for our physical and mental health, and it is a basic part of the European social contract,' said ETUC General Secretary Esther Lynch, criticising the situation. Holiday poverty among workers continues to rise Holiday poverty among workers is on the rise across the EU, marking the third consecutive annual increase. In 2022, 40.5 million employed people reported being unable to afford a one-week holiday away from home. That number rose to 41.5 million in 2023—an increase of over one million workers in just a year. The share of affected workers grew from 14% to 15%. 'The findings are the result of an increasingly unequal economy, in which workers are forced to give up their holidays due to rising costs for accommodation, transport and food, combined with declining purchasing power and speculation', the ETUC stated. Related The cost of love: Europe's most expensive and cheapest cities for a date Cost of living: Which are the cheapest and most expensive countries in Europe? East-West gap in holiday affordability for workers The data reveals a strong disparity in holiday affordability across the EU, particularly between Eastern/Southern Europe and Western/Northern Europe. Romania tops the list, with 32% of workers unable to afford a one-week holiday. Close behind are Hungary (26%), Bulgaria (24%), Portugal and Cyprus (both 23%), and Slovakia (22%). The Nordic countries—Finland, Sweden and Denmark—along with the Netherlands, Luxembourg, and Slovenia, report the lowest levels of holiday poverty, ranging between 5% and 7%. Czechia, Austria, and Belgium reported holiday poverty rates at or below 10%. Despite their economic weight, even the EU's largest economies report concerning levels of holiday poverty. Among the EU's Big Four, Spain (18%) and Italy (17%) exceed the EU average of 15%. France (12%) and Germany (11%) fall below the average, but both still remain above 10%. EU's Big Four: Over 5 million workers in each country can't afford a holiday Absolute figures speak louder than percentages. Over 5 million workers in each of the EU's Big Four were unable to afford a holiday in 2023. In Italy, the number stood at 6.2 million, followed by 5.8 million in Germany, 5.6 million in Spain, and 5.1 million in France. Over 3.5 million workers in Romania and Poland also couldn't afford a holiday. This figure was more than 1.5 million in Hungary and Portugal. In Austria and the Netherlands, over 550,000 workers couldn't afford even a one-week holiday despite being employed or having a business. 'After working hard all year, it is the least working people should be able to expect to afford and should not be allowed to become a luxury for the few,' Lynch said. 'However, these figures show that Europe has a quality jobs emergency and that our social contract is continuing to crumble as the result of growing economic inequality.' Related China rare earth exports to the US surge 660% after trade agreement The Big Question: Do companies need to re-evaluate how they set climate goals? Is holiday poverty linked to income? There is a moderately strong negative correlation between the share of workers who cannot afford a one-week holiday away from home and annual net earnings. This means that as net earnings increase, the proportion of workers unable to afford such a holiday tends to decrease. However, since the correlation is moderate, it also indicates that in some countries, this relationship is not strong or does not follow the overall trend as closely. For example, Ireland (€43,897) had one of the highest annual net earnings in the EU in 2023, yet holiday poverty remains comparatively high. In contrast, Slovenia has a low level of holiday poverty among workers, even though the incomes are similar to countries where more people struggle to afford a holiday. Related Win for the crypto industry: US passed the first major bill to regulate digital assets Strong correlation between workers and general population By comparing workers (aged 15-64) and the general population aged 16 and over, Euronews Business found a strong correlation: the higher the rate of workers who cannot afford a holiday, the higher it tends to be in the overall population. In 2023, among the general population, the share of people unable to afford a one-week holiday ranged from 11% in Luxembourg to 60% in Romania, while the EU average stood at 29%. This suggests that the rate among the general population is nearly double that of workers. Experts speaking to Euronews Business had noted that differences between countries are largely tied to the strength of their economies. The level of disposable income plays a key role, as it directly affects people's ability to spend on holidays—particularly when looking at figures for the general population. The ETUC calls on national governments to fully implement the Minimum Wage Directive and urges the European Commission to ensure that the Quality Job Package due this year includes legislation to rebalance the economy—making respect for collective bargaining a condition for access to public contracts. Solve the daily Crossword
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German economic sentiment tumbles as EU–US trade deal underwhelms
Germany's economic sentiment fell sharply in August, snapping a three-month recovery and casting renewed doubts over the country's growth outlook. The decline follows a controversial EU–US trade deal that has disappointed financial experts and left key industrial sectors exposed to steeper tariff burdens. The ZEW Indicator of Economic Sentiment dropped by 18 points to 34.7 in August, falling well short of expectations for a more modest retreat to 40. This reverses part of the strong recovery seen in July, when sentiment had climbed to its highest since February 2022. The gauge for current conditions also deteriorated, slipping to -68.6 from -59.5 a month earlier, missing forecasts of -60. The downturn reflects concerns over Germany's weak second-quarter performance and the perceived asymmetry of the newly signed transatlantic trade pact. 'Financial market experts are disappointed by the announced EU–US trade deal,' said ZEW president, professor Achim Wambach. 'In August 2025, the ZEW indicator experiences a substantial decline, also due to the poor performance of the German economy in the second quarter. The outlook has worsened in particular for the chemical and pharmaceutical industries. The mechanical engineering and metal sectors as well as the automotive industry are also severely affected.' Sentiment across the eurozone mirrored Germany's decline. The ZEW expectations index for the bloc dropped 11 points to 25.1, while the gauge of current conditions fell by 7 points to minus 31.2. Initial hopes of relative resilience in the eurozone have been tempered as economists revise down growth expectations for the second half of the year. Unequal trade deal weighs on sentiment On 27 July, just days before a 30% US tariff on EU goods was set to take effect, European Commission President Ursula von der Leyen and US President Donald Trump reached a last-minute agreement. The accord included a basic 15% tariff on EU exports, with steeper levies of 50% on steel, aluminium and copper. Aircraft and aircraft parts were exempted. As part of the deal, the EU also pledged to purchase $750 billion (€685 billion) in US energy exports over three years. The political optics were widely seen as favourable to Washington. Related Which European economy stands to suffer the most from US tariffs? Who got the best trade deal with the US - the EU or UK? 'A one-sided trade deal to reduce the US trade deficit with the EU,' remarked Oliver Rakau, chief Germany economist at Oxford Economics. "Politically, this agreement looks like a clear win for the US," he added. The deal 'is at the better end of the spectrum of what could realistically be achieved,' Isabelle Mateos y Lago, economist at BNP Paribas, noted. She highlighted that the effective tariff rate has been multiplied tenfold compared to the start of the year, though she sees the shock as manageable given exports to the US account for under 3% of EU GDP. Bill Diviney, economist at ABN Amro, described the agreement as a product of Europe's weak bargaining position, highlighting economic stagnation and rising inflation pressures. 'Berlin and France were unwilling to suffer economic pain to risk a better outcome,' he said. 'The EU remains dependent on the US for its security, both in terms of military support as for military imports and remains a net importer of energy,' he added. Markets cautious as US inflation data looms Market reaction to the ZEW release was muted. Germany's DAX index remained broadly steady at 24,050 points. The euro dipped slightly, down 0.1% to $1.1600. Investor focus now turns to the upcoming US inflation report for July, with the Consumer Price Index expected to have risen 2.9% year-on-year, up from 2.7% in June. Markets are watching closely for any signs that higher tariffs are beginning to filter through to consumer prices. Money markets continue to price in an 85% probability of a 25-basis-point rate cut by the Federal Reserve at its next meeting, as signs of cooling labour market strengthen the case for easing.