EU
Southern resilience may cushion the euro-area downturn
The euro-area services PMIs saw the Southern economies outperforming the North, though the UK PMI was strong
InternationalDigital euro will launch but perhaps later than 2027
Plans for the digital euro see a 2027 launch but the ECB still needs to win support from commercial banks and citizens
InternationalEU agreement shows weakness of Orban’s threats
Hungary’s Viktor Orban quickly lifted his veto on EU financial support for Ukraine during yesterday’s summit
UkraineHungary’s policy shift may not cost Orban domestically
Orban’s control of most media will allow him to ‘spin’ his about-face on EU funding for Ukraine and probably NATO too
HungaryEasing euro-area CPI points to rate cuts later in 2024
Inflation was little changed at 2.8% last month but core inflation dropped to 3.3%; high food prices remain a concern
InternationalEU farmer unrest looks set to persist
French farmers are determined to continue protests despite the government's decision to grant concessions
FranceGerman assent would boost prospects for EU AI Act
The German government is reportedly ready to endorse the EU's AI Act
EUEuro-area GDP will struggle to top 1% in 2024 and 2025
The euro-area grew by 0.1% year-on-year in October-December and 0.5% year-on-year in 2023, compared to 2.5% US growth
EU
