London Daily

Focus on the big picture.
Monday, Jul 13, 2026

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
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×