#dieWIRTSCHAFTSPRAXIS-VW.THINKTANK I STATUS.QUO Q2/2025

The country’s sprawling industrial policy is beyond mere human comprehension

It is time to think beyond regional success, says Yannis Stournaras

Analysing it is more important than ever. Mitigating it is a nightmare

President Donald Trump’s erratic policies offer a “prime opportunity” to strengthen the euro’s international role and allow the currency bloc to enjoy more of the privileges so far reserved for the US, European Central Bank President Christine Lagarde said.

President Xi Jinping’s government is considering a new version of its master plan to boost production of high-end technological goods, according to people familiar with the matter, signaling its intention to keep a firm grip on manufacturing as President Donald Trump looks to bring more factories back to the US.

France’s inflation rate dropped further below the European Central Bank’s 2% target, reaching a more than four-year low and adding to arguments that borrowing costs can be cut further.

America will pay the price most of all

If it turns inward, the country and continent will lose out

If it does not, a collision with the bond markets awaits

And any jobs-pocalypse seems a long way off

President Donald Trump threatened a 50% tariff on goods from the European Union starting on June 1, saying “our discussions with them are going nowhere.”

Latest Bloomberg survey still suggests economy is shifting into a lower gear

Faster US inflation triggered by President Donald Trump’s tariffs wouldn’t necessarily spill over into the euro zone, according to European Central Bank Chief Economist Philip Lane.

The US Supreme Court shielded the Federal Reserve from Donald Trump’s push to fire top officials at independent federal agencies, in a decision likely to quell concerns that the president might move to fire Jerome Powell.

The European Central Bank must remain vigilant, despite almost having returned inflation to 2%, Governing Council member Joachim Nagel said.

Finance ministers and central bank governors from the Group of Seven nations pledged to address “excessive imbalances” in the global economy, an effort clearly aimed at China, though the final communique omitted the name of the country.

We interview JPMorgan Chase’s boss, and his lieutenants

He should expect billions, not trillions

The European Central Bank warned that escalating global tariff tensions have emerged as a “significant concern” for financial stability and the global economy.

The European Central Bank warned that heightened investor concern over the riskiness of US assets following Donald Trump’s tariff drive could further jolt the world’s financial system.

Germany’s economy will stagnate this year, though a recovery is in sight thanks to plans to ramp up government spending, Chancellor Friedrich Merz’s independent panel of experts said.

JPMorgan Chase & Co. chief Jamie Dimon said he can’t rule out the US economy will fall into stagflation as the country faces huge risks from geopolitics, deficits and price pressures.

Barriers between America and China are still far too high. So is uncertainty

An industry that dreamed of being above politics has become synonymous with self-dealing

This Spring Forecast projects real GDP growth in 2025 at 1.1% in the EU and 0.9% in the euro area– broadly the same rates attained in 2024.