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- We are witnessing a new moment in EU politics, one that is already having an impact on financial markets and the economy. Government borrowing costs are rising and so are defense stocks.

- Spending well beyond the limits of the fiscal rules was a no go, mainly for Germany, but Berlin is now calling for defense investments to be exempt from the EU’s fiscal rules for several years. We are talking about the nation that 10 years ago was pushing for austerity in south Europe.

🚨Back at an #EU summit. I have attended many of these but today’s meeting feels particularly relevant - similarly to the summit where, during the pandemic, leaders agreed to issue joint debt.

Why?
- Defense was never a big focus for the EU. The project was rather focused on creating lasting peace.

He welcomed the initiatives to step up EU defence capabilities and encouraged their use in support of Ukraine’s military production.

President #Zelenskyy met with the 27 EU leaders today. #EU official said the conversation lasted 1h 30min. Zelenskyy updated them on the situation on the ground, his ongoing diplomatic efforts and expectations for the future. #ukraine #euco

4. Meanwhile, China’s foreign minister declared on stage that Beijing is a source of certainty in a multipolar world. Germany’s minister Baerbock told me if you’re standing with Moscow, you’re also standing with Beijing.

3. Ukraine left the conference empty handed, without any new security guarantees. President Zelenskyy warned that Russia is preparing to send new troops to Belarus this summer and that these could be used to attack NATO countries.

2. Europeans are promising more defense spending. The President of the European Commission said fiscal rules will be relaxed so countries can do so. Both Germany’s CDU and SPD also said they will be reforming their national fiscal rules to invest more in defense.

Thoughts after #MSC25
1. Europeans shocked by the remarks of the Vice President of the United States, but more importantly, are worried that President Trump will push for peace in Ukraine at any cost.

Looking forward to speaking with the British, German, Polish and French foreign ministers tomorrow afternoon on the main stage #MSC25

In Munich where #msc25 is taking place at a critical time:

-Ukraine fears being left out of peace talks
- JD Vance speaks early afternoon after saying US would hit Moscow with sanctions and potentially military action
-Macron said the geopolitical picture faces “extreme strategic uncertainty”

Investors had a lot of anxieties going into today’s numbers but in the end the company delivered. However, it said that price pressures and growing competition will mean slower performance in 2025.

But the weight loss drug market is still dominated by Eli Lilly and Novo.

Back in Denmark for @novonordisk.bsky.social earnings.

EU officials know they could be next in line in terms of U.S. tariffs. Senior EU diplomat tells me: the EU hopes to still negotiate, buy more LNG and so on but it will be very hard to avoid a trade confrontation.

Good morning from London!
Busy day covering EU reaction to US tariffs!

EU on latest U.S. #tariffs

The EU firmly believes that low tariffs drive growth and economic stability within a strong, rules-based trading system.

However, the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.

European leaders came under pressure during #WEF25 with President Zelensky asking: Will President Trump even notice Europe? And will he respect EU institutions?

@glandsbergis.bsky.social told me the pressures are such that the EU is approaching a point of non relevance.
www.cnbc.com/video/2025/0...

#Italy Anyone else fascinated by all the consolidation efforts in Italian #banking? Monte dei Paschi announces intention to merge with Mediobanca, creating the third largest lender in the country.

This year's top challenge for EU leaders: competitiveness. But the fiscal position is weak, so can they achieve it?

#WEF25 IMF's Georgieva says the U.S. has a culture of confidence. Europe has a culture of modesty.

#ECB Lagarde: I would refrain from saying 3, 4 cuts this year, let's take things one step at a time.

#ECB Lagarde: We do not see ourselves behind the curve. We are well positioned.

ECB's Lagarde: Diagnosis on EU competitiveness is done, we do not need another report. Now we need action.

ECB's Lagarde to CNBC: No U.S. tariff is what I expected, smart approach

This morning, @christinelagarde.bsky.social is speaking exclusively to @cnbc.com. I will be sharing some of the top lines here. Stay tuned!

Just joined Bluesky to discuss all things #EU related.