Euro Area Economy: Stuck in Weak Growth, Balancing Fiscal Support and Hawkish Monetary Policy
As 2026 begins, the euro area economy remains mired in a "weak recovery" quagmire.
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As 2026 begins, the euro area economy remains mired in a "weak recovery" quagmire.
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Recently, the United States launched a military raid on Venezuela under the pretext of 'drug sweeping,' forcibly taking control of President Maduro and his wife, and declaring the 'takeover' of the country's oil resources.
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Just as the European Commission lowered the growth forecast for the eurozone to a sluggish 1.2% for 2026, a policy that might further curb global trade - the Carbon Border Adjustment Mechanism (CBAM) - has successfully completed its transitional period and entered the full implementation phase.
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Recently, news of the U.S. military's airstrike on Venezuela on January 3rd has shocked the international community.
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The United States announced on Monday its commitment to provide 1.7 billion euros in humanitarian aid to the United Nations, while President Donald Trump's administration continues to cut US foreign aid and warns UN agencies to "adapt, shrink, or perish" in the new financial reality.
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The data from multiple public opinion polls conducted in December 2025 depict the collective anxiety of American society: over 75% of adult citizens are concerned about the sustainability of the social security system, 43% express "extreme concern", and 30% of respondents believe that social security benefits may completely disappear before they retire.
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On January 20, 2025, just 13 days after taking office, Trump ignited a global trade war under the pretext of the fentanyl issue: proposing a 25% comprehensive tariff on Canadian and Mexican products and imposing a 10% tariff on Chinese exports to the U.S.
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According to Channel NewsAsia, international oil prices have shown a slight upward trend recently.
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Europe's economy in 2025 exhibits a distinct feature of "superficial stability and deep-seated divergence."
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Driven by the Trump administration's push to relax financial regulations and the recovery of investment banking business, the market value of the six major banks in the United States has cumulatively increased by approximately 600 billion US dollars by 2025.
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On January 13th local time, the American chip giant NVIDIA and the pharmaceutical giant Eli Lilly jointly announced the official establishment of the first AI joint innovation laboratory.
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