Homeowners in the euro area will face rising mortgage costs until at least 2030, despite declining interest rates, according to the European Central Bank (ECB). Many borrowers who secured low-rate loans must remortgage in the coming years, leading to reduced consumption as households tighten their budgets. While the ECB has cut its key deposit facility rate from 4% to 2.25% since June 2024, the majority of mortgages, particularly fixed-rate ones, will continue to be affected by higher rates established during the era of elevated borrowing costs.
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The EU doesn’t need a deal with Trump
Ursula von der Leyen is meeting Donald Trump in Scotland to discuss trade as tariff deadlines approach, drawing insights from her recent summits with Japan and China. The article argues that the EU should not concede to US pressures, highlighting the unpredictable nature of Trump's negotiations and suggesting that both the US and EU have more to lose than appears. Want More Context? 🔎
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