London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Eurozone panic: Brexit, Boris and Trump cause chaos for EU growth

Eurozone panic: Brexit, Boris and Trump cause chaos for EU growth

BREXIT and international trade disputes have butchered the EU economy, which has grown by just half of what it had done the previous quarter, new figures indicate.

The gross domestic product (GDP) for the eurozone has chugged along at just 0.2 percent compared to the previous quarter, German publication Finanz and Wirtschaft reports. In the second quarter of the new year, the eurozone economy’s growth was stunted due to weaker global activity put down to trade disputes with US President Donald Trump. Brexit uncertainty after top eurocrats refused to budge on the Irish backstop with former Prime Minister Theresa May was also to blame.

The Berlin DIW Institute expects “little more than stagnation” after Germany and France both grew by 0.2 percent despite being the largest economies in the EU.

There are concerns that a hard Brexit could spark an economic crisis throughout the eurozone.

Nicola Nobile, lead eurozone economist at consultancy Oxford Economics, said: “The eurozone data today confirm that the economy has moved down a gear as worsening external conditions and the increase in uncertainty continue to take their toll.

“Looking forward, the continued weakness in eurozone surveys suggest that a robust pick-up in GDP growth in H2 2019 is not on the cards.”

Spain did better at 0.5 percent, statistic office Eurostat announced today.

Meanwhile Britain’s was recorded at 0.3 percent.

It was expected the eurozone would record a 0.4 percent growth as it did the previous quarter.

As a result of the economic slowdown, the European Central Bank (ECB) has signalled further easing of its monetary policy.

ECB chief Mario Draghi said several options are in the process of being considered.

These include the resumption of bond purchases to higher penalties for borrowers.

Mr Draghi said last week that the economic outlook was becoming “worse and worse”.

Eurostar cited trade conflicts and Brexit as reasons behind the slump in growth across the board.

The European Commission said as result of threats from both Boris Johnson over a no deal Brexit and President Trump over tariffs linked to a trade spat with the bloc, Brussels is only expecting economic growth of 1.2 percent for the year as a whole.

The Commission predicts this should increase to 1.5 percent in 2020.

Despite this, Europe’s unemployment rate has fallen to its lowest level in 11 years.

Less than 12.4 million Europeans are unemployed, 45,000 less than in the previous month.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×