Overview

• The European Commission has revised eurozone growth forecasts to 0.9% for 2025 and 1.4% for 2026, down from earlier estimates of 1.3% and 1.6%.
• US tariffs—10% on most goods and 25% on steel and automobiles—are cited as a major factor in the downgrade, alongside persistent economic stagnation.
• Germany faces a grim outlook with zero growth projected for 2025, following consecutive recessions in 2023 and 2024.
• France’s growth forecast for 2025 has been slightly reduced to 0.6%, reflecting a less severe impact compared to Germany.
• EU leaders are calling for structural reforms, including regulatory simplification and a unified financial market, to boost competitiveness and long-term resilience.