European Еconomic Policy 2025

The year 2025 was characterised by moderate economic growth of 1.5 percent in the EU and the euro-area. The labour market remained robust and the unemployment rate very low. The inflation rate in the euro-area almost reached the target of 2 percent and stabilised, prompting the European Central Bank to leave key interest rates unchanged from mid-year onwards. Apart from the trade conflict with the USA, long-term structural challenges dominated discussions on EU economic policy in 2025. These centred on the Savings and Investment Union (SIU), strengthening the international role of the euro, and proposals for the next Multiannual Financial Framework. The high dependence of European investors on US assets and exchange rate movements underscores the urgency of completing the SIU.