Europe

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? 🔎

The EU has decided against holding the EU-China High-Level Economic and Trade Dialogue before the leaders' summit in July, citing unresolved trade disputes, including tariffs and market access issues. This decision highlights ongoing tensions, especially as China faces criticism for its export restrictions and the summit will be attended by Premier Li Qiang instead of President Xi Jinping, seen as a diplomatic snub. 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? 🔎

Former European Commission chief Jean-Claude Juncker criticized his successor Ursula von der Leyen for not personally addressing Donald Trump's trade war, emphasizing that active engagement is essential for a successful deal. He noted that while Trump's hostility is more pronounced now, effective strategies, such as targeted negotiations and respect, are crucial to manage the ongoing trade tensions, which have escalated with the threat of new tariffs on EU imports. More Context

The European Commission plans to propose an EU-wide ban on all new Russian gas contracts, circumventing potential vetoes from Hungary and Slovakia by using trade law, allowing the ban to pass with majority approval. Existing contracts will need to be phased out by 2026-2028, with Hungary and Slovakia receiving an exemption until 2027, while measures will require companies to prove gas imports do not originate from Russia. More Context

Proposed EU safety regulations for chemicals may hinder the growth of a domestic critical minerals sector essential for the energy transition, according to industry groups including Anglo American and Rio Tinto. They argue that stringent rules could deter investment and deepen reliance on China, jeopardizing Europe's 2030 targets for mineral extraction and processing while warning that current policies may lead to further deindustrialization. More Context