In Germany’s election, centrist parties struggled as voters shifted to the extreme right and left, leading to the Social Democratic Party (SPD) recording its worst-ever result with just 16.4% of the vote. The Christian Democratic Union (CDU) and Christian Social Union (CSU) secured the largest share at 28.5%, marking a victory for the conservative alliance but still falling below expectations with their second-worst result ever. Former Chancellor Olaf Scholz described the outcome as “bitter” as he addressed the disappointing defeat in Berlin.
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ECB cuts rates for third time this year as Europe braces for Trump tariffs
The European Central Bank has reduced its main interest rate to 2.25%, marking the third cut this year, in response to slowing growth in the eurozone and the effects of US border taxes. This quarter-point reduction aligns with expectations from City economists and aims to mitigate the impact of tariffs imposed on EU imports into the US. The bank's decision reflects ongoing economic challenges faced by the 20-member euro area. Full Article
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