Economy

ECB Cuts Rates to 2.5%, Signals Possible Pause in Future Reductions

March 6, 2025

ECB Cuts Rates to 2.5%, Signals Possible Pause in Future Reductions

The ECB reduced its benchmark interest rate by a quarter-point to 2.5%, marking the sixth cut in nine months. President Christine Lagarde noted that “monetary policy is becoming meaningfully less restrictive,” hinting at a potential slowdown or pause in future rate cuts. The move comes amid falling inflation and amid concerns over global uncertainties, including US tariff threats and rising defence spending in Germany, which have tempered growth forecasts.

Greenland’s Rare Earths: A Promising Yet Perilous Frontier

March 6, 2025

Min

Greenland’s Rare Earths: A Promising Yet Perilous Frontier

Greenland boasts an estimated one billion tons of rare earth metals critical for modern technologies and poised to disrupt China’s near-monopoly. However, harsh conditions, melting ice, and scant infrastructure make mining in this frozen region extremely challenging. Despite high investor interest over the centuries, only two active mines exist, even though about 100 mining permits have been issued. Greenland is now seeking to attract multinational firms from Australia, Canada, and beyond, though uncertainty and high costs remain major hurdles.

Turkey Cuts Interest Rates to 42.5% as Inflation Hits Two-Year Low

March 6, 2025

Min

Turkey Cuts Interest Rates to 42.5% as Inflation Hits Two-Year Low

Turkey's central bank has slashed its benchmark one-week repo rate by 2.5 percentage points to 42.5% for the third consecutive month, as annual inflation fell to 39.1% in February the lowest since June 2023. The rate cut is part of a disinflation strategy aimed at reducing borrowing costs amid a cooling domestic price environment, though concerns remain over higher inflation expectations and continued pressure on the lira.

EU Unveils €2.8bn Automotive Action Plan to Boost Electric Mobility

March 5, 2025

Min

EU Unveils €2.8bn Automotive Action Plan to Boost Electric Mobility

The EU has announced a €2.8bn plan to drive a green transformation of the automotive sector. The package includes purchase incentives to stimulate demand for electric vehicles, measures to decarbonise company fleets, and a three-year averaging mechanism for CO₂ targets to ease compliance. It also promotes e-fuels development and local content in EV components, aiming to balance competitiveness with environmental goals amid rising global pressures

EU Announces $840bn Plan to 'Rearm Europe'

March 5, 2025

Min

EU Announces $840bn Plan to 'Rearm Europe'

The European Commission has unveiled an ambitious initiative to mobilise $840 billion in funding to strengthen defense capabilities across the bloc. President Ursula von der Leyen described the plan as essential to addressing emerging security threats and reducing reliance on US military aid. The proposal includes access to loans of up to €150 billion, a reformed deficit regime to boost defense spending, and a focus on critical areas such as air defense, artillery, drones, and counter-drone technology. The move is designed to help EU member states pool demand and enhance collective security, while also significantly ramping up support for Ukraine.

Eurozone Unemployment Remains Historically Low

March 4, 2025

Min

Eurozone Unemployment Remains Historically Low

Despite a sluggish economy, the eurozone’s labour market remains resilient with unemployment rates holding at historic lows. Eurostat estimates indicate that the EU unemployment rate was 5.8% in January 2025 and 6.2% for the eurozone, marking four consecutive months of low jobless rates. Although some sectors, particularly manufacturing, show signs of stress and analysts warn of potential future rises in unemployment, improvements in job numbers in countries like Spain and strong overall employment growth have bolstered optimism.

EU Eases Emissions Rules on Petrol Cars to Support Auto Industry

March 3, 2025

Min

EU Eases Emissions Rules on Petrol Cars to Support Auto Industry

The European Commission has introduced a more flexible framework for reducing CO₂ emissions from new passenger cars and vans, offering the auto industry additional "breathing space" until 2027. While the 2035 ban on petrol cars remains in place, fines for missing stricter emissions targets will be deferred, allowing manufacturers that underperform in one year to catch up in subsequent years. The move aims to align climate protection with industry competitiveness, as European automakers face rising production costs and stiff competition from overseas rivals.

UK to Extend Sick Pay to Low-Paid Workers from Day One

March 3, 2025

Min

UK to Extend Sick Pay to Low-Paid Workers from Day One

More than one million low-paid workers in the UK will soon receive 80% of their weekly salary as sick pay from the first day of illness, a major change under the new Employment Rights Bill. This policy shift, announced by Work and Pensions Secretary Liz Kendall, aims to ensure that workers never have to choose between their health and their livelihood. However, critics warn that the measure could lead to increased absenteeism and create challenges for smaller businesses in managing shift cover.

ECB Cuts Rates to 2.5%, Signals Possible Pause in Future Reductions

Greenland’s Rare Earths: A Promising Yet Perilous Frontier

Turkey Cuts Interest Rates to 42.5% as Inflation Hits Two-Year Low

EU Unveils €2.8bn Automotive Action Plan to Boost Electric Mobility

EU Announces $840bn Plan to 'Rearm Europe'

Eurozone Unemployment Remains Historically Low

EU Eases Emissions Rules on Petrol Cars to Support Auto Industry

UK to Extend Sick Pay to Low-Paid Workers from Day One

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