The Eurozone Avoids Recession with Strong French and Spanish Support
The Eurozone economy posted unexpected growth in the second quarter of 2025,
despite a German decline, supported by strong performances in France and Spain.

Contents:

Euro
Oil

Euro

Unexpected Growth in the Eurozone in Q2 Backed by France and Spain Despite Germany’s Decline

The Eurozone economy recorded slight growth in the second quarter of 2025,
outperforming analysts’ expectations which had predicted the bloc would enter a recession.
This came amid strong performance from some southern European economies.

According to preliminary data released by Eurostat on Wednesday, the Eurozone’s GDP rose by 0.1% between April and June,
while the European Union as a whole saw a 0.2% increase.

This growth was supported by stronger-than-expected performances in countries like France and Spain.
The Spanish economy grew by 0.7%, while Portugal grew by 0.6%, and Estonia by 0.5%. On the other hand,
Germany—the largest economy in Europe—contracted by 0.1%, the same decline recorded by Italy.

On a year-over-year basis, GDP increased by 1.4% in the Eurozone and by 1.5% across the EU,
compared to the same period in 2024, signaling relative resilience in the face of ongoing economic challenges.

Oil

U.S. Warns China of Up to 100% Tariffs Over Russian and Iranian Oil Purchases

U.S. Treasury Secretary Scott Bessent issued a strong warning to China,
asserting that Beijing’s continued purchase of sanctioned Russian oil could result in tariffs of up to 100%,
under new legislation being discussed in the U.S. Congress.

These statements came at the conclusion of U.S.-China trade talks held in Stockholm,
where Bessent explained that the proposed bill would grant President Donald Trump the authority to impose tariffs of up to 500% on countries that import sanctioned oil.

Additionally, secondary tariffs of 100% could be enforced within two weeks if Russia fails to make progress toward peace in Ukraine.

The Chinese officials responded by stating that their energy decisions are based on sovereignty and domestic policy—signaling Beijing’s firm stance.

Washington also expressed concern over China’s continued purchase of Iranian oil under sanctions,
as well as its $15 billion worth of dual-use goods exports to Russia, which are considered to directly support the war in Ukraine.

Bessent warned that such policies may harm China’s ability to strengthen its trade ties with Europe,
stating: “The Chinese value their sovereignty, but if they want to keep it, they might have to pay 100% tariffs.”

The Eurozone Avoids Recession with Strong French and Spanish Support

The Eurozone Avoids Recession with Strong French

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