EU

The European Commission has downgraded its 2026 growth forecast for the EU economy to 1.1%, citing increased energy prices due to the Middle Eastern conflict. The eurozone outlook fell to 0.9%, reflecting risks from global energy market disruptions and escalating inflation, now expected to reach 3.1%.

High Representative Kaja Kallas has reiterated her rejection of direct talks between the European Union and Russia, emphasising that Moscow is preparing for a “long-term confrontation with the West.” Kallas highlighted the necessity of remaining resolute in the face of escalating military tensions.

US President Trump has intensified his criticism of German Chancellor Friedrich Merz, urging him to focus on the Russia-Ukraine conflict rather than the Iran war. Trump’s remarks follow Merz’s assertion that the US is being “humiliated” by Iran, and highlight ongoing tensions over NATO troop presence in Europe.

EU Trade Commissioner Maroš Šefčovič announced discussions with US counterparts about establishing a digital legislation forum, aiming to address concerns related to the EU’s Digital Services and Markets Acts. The US seeks to ease these regulations, linked to ongoing steel and aluminium tariff negotiations.

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