Latest news with #Slovakia
Yahoo
a day ago
- Business
- Yahoo
Romania expects small growth hit from new US trade deal
By Luiza Ilie and Jason Hovet BUCHAREST/PRAGUE (Reuters) -Romania said on Monday a 15% U.S. import tariff on European goods would mean a small hit to central Europe's second-largest economy, while export-reliant Slovakia hailed the U.S. trade deal as a "good result". Sunday's framework trade agreement between the United States and the European Union staved off the threat of a trade war, which has loomed over the region's economies, among the EU's most dependent on trade. Romania's largest employers' association Concordia - which represents 20 industries accounting for 30% of Romania's output - told Reuters it estimated the tariffs could now shave up to 0.2% off the country's growth. "Economic growth in the euro zone will be affected, with estimates from international institutions showing a possible reduction in the growth rate by 0.3%-0.4%, which would mean a reduction in economic growth in Romania by 0.15%-0.2%," Concordia macroeconomist Iulian Lolea said. He said a firmer euro against the dollar also made European goods less competitive in the American market. Romania's economy grew just 0.8% last year, its slowest rate since the COVID-19 pandemic, and government efforts to rein in the EU's highest budget deficit from unsustainable levels could also dent growth prospects. The trade deal sets a 15% baseline tariff on imports, including cars, a mainstay of central European exports, which had faced 27.5% in customs duties before. That level is nonetheless still sharply up from a pre-existing 2.5%. The Czech Automotive Industry Association said the 15% levy was not low but "the threat of further escalation has been averted and a certain degree of predictability has been restored". Romanian Prime Minister Ilie Bolojan said Sunday's deal eliminated some uncertainty weighing on transatlantic trade. Prime Minister Robert Fico of Slovakia, whose country's share of goods exports as a percentage of national output is the highest in the EU, called the trade deal a "good result", while waiting to see details on energy and military purchases. "We will all be interested in what the EU's commitment to buy U.S. energy for $750 billion and higher investments in American arms entails," Fico said. Hungary's Prime Minister Viktor Orban sharply criticised European Commission President Ursula Von Der Leyen for what he said was a poorly negotiated deal. "This is not an agreement ... (President) Donald Trump ate (European Commission President) Von der Leyen for breakfast." (Writing by Gergely Szakacs Editing by Giles Elgood)
Reuters
a day ago
- Business
- Reuters
Romania expects small growth hit from new US trade deal
Romania said on Monday a 15% U.S. import tariff on European goods would mean a small hit to central Europe's second-largest economy, while export-reliant Slovakia hailed the U.S. trade deal as a "good result".
Zawya
a day ago
- Business
- Zawya
ECB's Kazimir says big unexpected economic shift needed for September rate cut
FRANKFURT - The European Central Bank is not in any hurry to lower borrowing costs again and it would take a major unexpected economic shift to make a case for action in September, Slovak policymaker Peter Kazimir said on Monday. The ECB kept rates unchanged last week as widely expected and offered a moderately upbeat assessment on the bloc's economy, prompting investors to scale back their bets on further policy easing. "When it comes to incoming data, I don't expect anything significant to happen that would force my hand to act as soon as September," Kazimir said in a blog post. "It would take something like clear signs of unravelling in the labour market for me to act." This assessment aligns with comments from ECB sources that the bar for a cut in September is high after the bank has already halved rates to 2% since June 2024. Sunday's EU trade deal with the U.S. was clearly a positive since it reduces uncertainty for businesses, but the impact on prices, the ECB's chief focus, was still unclear. "This (trade deal) can help to ease concerns and regain confidence," Kazimir said. "We now have more clarity, but we will need time to see to what extent this new environment will affect inflation." Weighing in on a key debate among policymakers, Kazimir said he did not see a risk that inflation would now undershoot the ECB's 2% target, much like it did in the pre-pandemic decade. Price growth is seen dipping below 2% next year and only rebounding in 2027, raising worries among some governors that once inflation is well below 2%, expectations also fall and could perpetuate weak price growth. "I see no looming spectre of a sustained undershooting of inflation," Kazimir, an outspoken policy hawk, said. "The expected dips below target in the coming year should be temporary." He added that trade turmoil also created upside risks for inflation, particularly if global supply chains were realigned, creating bottlenecks.
Yahoo
2 days ago
- Business
- Yahoo
ECB's Kazimir says big unexpected economic shift needed for September rate cut
FRANKFURT (Reuters) -The European Central Bank is not in any hurry to lower borrowing costs again and it would take a major unexpected economic shift to make a case for action in September, Slovak policymaker Peter Kazimir said on Monday. The ECB kept rates unchanged last week as widely expected and offered a moderately upbeat assessment on the bloc's economy, prompting investors to scale back their bets on further policy easing. "When it comes to incoming data, I don't expect anything significant to happen that would force my hand to act as soon as September," Kazimir said in a blog post. "It would take something like clear signs of unravelling in the labour market for me to act." This assessment aligns with comments from ECB sources that the bar for a cut in September is high after the bank has already halved rates to 2% since June 2024. Sunday's EU trade deal with the U.S. was clearly a positive since it reduces uncertainty for businesses, but the impact on prices, the ECB's chief focus, was still unclear. "This (trade deal) can help to ease concerns and regain confidence," Kazimir said. "We now have more clarity, but we will need time to see to what extent this new environment will affect inflation." Weighing in on a key debate among policymakers, Kazimir said he did not see a risk that inflation would now undershoot the ECB's 2% target, much like it did in the pre-pandemic decade. Price growth is seen dipping below 2% next year and only rebounding in 2027, raising worries among some governors that once inflation is well below 2%, expectations also fall and could perpetuate weak price growth. "I see no looming spectre of a sustained undershooting of inflation," Kazimir, an outspoken policy hawk, said. "The expected dips below target in the coming year should be temporary." He added that trade turmoil also created upside risks for inflation, particularly if global supply chains were realigned, creating bottlenecks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Kazimir Sees ECB Holding Rates in September in Absence of Shock
The European Central Bank shouldn't cut interest rates in September unless there's evidence of a major deterioration in the economy, according to Governing Council member Peter Kazimir. With the deposit rate held at 2% last week, the ECB is in a 'comfortable place' to monitor trade uncertainty, the Slovak official said Monday. A deal struck between the US and the European Union is 'welcome news,' though doesn't grant an all-clear for the euro-zone economy.
