Economy

EUR/USD trades near 1.17 in early May 2026 as ECB holds steady while signalling June rate hike. Markets price in three hikes for 2026 amid Middle East tensions and US tariffs.

EU finance ministers met in ECOFIN on 5 May 2026 to agree new rules to fight VAT fraud and to debate the market integration and supervision package — a key part of the savings and investment union.

The Eurogroup met on 4 May 2026 to assess the impact of the Middle East conflict on the EU economy. Finance ministers also discussed banking operational resilience, cyber security, and AI use in finance.

ECB confirms in May 2026 that euro area growth has been revised up above 1% for 2026 and 1.4% from 2027, with inflation stabilising at the 2% target and unemployment near historic lows.

European Parliament negotiates pushing the next Horizon Europe budget to €200 billion for 2028-2034, up from the Commission’s €175 billion proposal, signalling EU strategic focus on research.

Eurozone Q1 2026 GDP grew just 0.8% year-on-year as the Iran war reshapes the European economy. What the slowdown means for the months ahead.

The ECB held rates at 2% on 30 April 2026 for a third consecutive meeting, balancing 3% inflation against 0.8% growth, with the Iran war complicating the outlook.

Investors are betting on a possible ECB rate hike in June or July 2026, with traders fully pricing in three hikes by year-end.

Eurozone inflation reached 3 percent in April 2026 as the Iran war pushed energy prices higher and dimmed prospects of further rate cuts.

European Central Bank keeps deposit facility rate at 2 percent for the tenth straight month, with markets pricing in a possible summer hike.