EU spurns economic dialogue with China over deepening trade rift

The scarcity of German Bunds has ended, according to Tammo Diemer from Germany's finance agency, as increased sales fund a €1tn defence and infrastructure package. This shift follows the European Central Bank's cessation of bond-buying, leading to greater availability of German bonds and heightened interest in AAA-rated euro debt from global investors diversifying away from dollar assets. Need More Context? 🔎

The scarcity of German Bunds is over, according to Tammo Diemer from Germany’s finance agency, as increased sales of benchmark debt follow the end of quantitative easing, aimed at funding a €1 trillion defense and infrastructure package. The shift has led to greater availability of German bonds and rising yields, attracting global investors to euro-denominated debt amid uncertainties surrounding the dollar's stability. Need More Context? 🔎

Brussels is contemplating using funds from an upcoming carbon tax on petrol and home heating to address a €30bn annual budget shortfall, despite strong opposition from member states like France and Poland. The tax, set to begin in 2027, could generate €705bn by 2035, but fears of rising costs may reignite public protests, complicating the EU's financial strategies. Need More Context? 🔎

Austria has suggested that the EU should consider resuming Russian gas imports if a peace deal is reached regarding the Ukraine conflict, marking a notable stance among member states. The European Commission plans to propose a ban on new and existing gas contracts with Russia, emphasizing that returning to Russian gas would financially support the Kremlin and undermine sanctions efforts. Need More Context? 🔎

US President Donald Trump left the G7 summit early, citing Middle Eastern issues, and avoided new sanctions on Russia, while European leaders discussed trade agreements. Former EU Commission President Jean-Claude Juncker defended his freeze on EU enlargement, emphasizing the need for a new approach to candidate countries, amid ongoing tensions regarding Hungary's controversial retail tax. Need More Context? 🔎

Spotify founder Daniel Ek is spearheading a €600 million investment in the German defence tech start-up Helsing, raising its valuation to €12 billion amid increasing global military spending due to geopolitical tensions. Helsing, which is expanding from AI software to creating drones and submarines, has now raised a total of €1.37 billion and aims to go public in the future. Need More Context? 🔎