Europe
Strong German rebound is unlikely to materialise
Having emerged from recession at the start of the year, the German economy has contracted again
GermanyBulgaria’s political gridlock prolongs election agony
Two attempts to form the government have failed, paving the way for another snap election
BulgariaUK dependence on fossil fuel imports could increase
The Labour government has pledged to bolster renewable capacity and accelerate the phase-out of fossil fuel exploration
United KingdomFirmer trade could boost German and euro-area growth
The euro area grew by a firm 0.3% on the quarter in April-June but Germany contracted and only Spain is growing strongly
EURecent services volatility reflects structural changes
Still-high services prices continue to constrain monetary policy easing amid post-pandemic shifts in spending patterns
InternationalItaly-China ties unlikely to improve greatly
Giorgia Meloni is visiting China for the first time since becoming prime minister in October 2022
ItalyRussia will target Europe with new nuclear missiles
President Putin yesterday threatened “mirror measures” if the United States deploys long-range missiles in Germany
RussiaEU Artificial Intelligence Act will have limited reach
The EU’s Artificial Intelligence Act will come into force next week
EU
