Euro

European Central Bank President Christine Lagarde said measured interest rate increases remain the appropriate tool to bring eurozone inflation back down. Her remarks, reported by Reuters and financial outlets, signal the ECB intends to keep tightening policy in careful steps rather than pause or accelerate, as policymakers weigh persistent price pressures against slowing economic growth across the euro area.

Italian Prime Minister Giorgia Meloni says her government's migration policies have scored a major victory, declaring that Italy is no longer Europe's refugee camp and no longer carries an outsized share of the continent's asylum burden. The claim is drawing wide attention, with supporters praising her hardline stance and critics likely to question the figures behind it.

Christine Lagarde, president of the European Central Bank, signalled that the bank will continue with gradual, measured policy steps to bring eurozone inflation back to target, rather than committing to aggressive moves either way. The approach keeps the ECB on a cautious path as officials weigh persistent price pressures against slowing growth in the euro area. Investors and economists are watching for clues on the timing and size of future rate decisions.

European Central Bank President Christine Lagarde said eurozone inflation is expected to rise in the coming months, but stressed there are no signs yet of it becoming entrenched. Her comments reassure markets and policymakers watching whether persistent price pressures will force the ECB to keep interest rates higher for longer, or whether tighter monetary policy is succeeding in bringing inflation back toward target.

Dutch chip equipment maker ASML says it is not selling its chipmaking machines to customers in Europe, and has warned that the region risks falling behind the United States, China and India in the semiconductor industry. The statement is drawing attention among business and technology watchers, who see it as a stark signal of Europe's weakening position in advanced chip production despite ongoing efforts to build domestic capacity.

The European Central Bank is examining new currency safety arrangements as part of an effort to strengthen the euro's standing in the global financial system. The work signals that eurozone policymakers want to reduce reliance on the US dollar and make the euro a more attractive reserve and funding currency, with liquidity backstops seen as a key building block for that ambition.

The Pope said Europe must return to the path of dialogue rather than military buildup in order to end what he called a 'senseless slaughter', a reference to the ongoing war in Ukraine. The appeal, reported by OSV News, comes amid rising European defence spending and renewed debate over how the conflict should be brought to a close.

European Central Bank President Christine Lagarde said eurozone inflation is expected to rise because of the energy crisis, but there is little evidence so far that higher energy costs are feeding into broader price pressures. She emphasised that the expected increase does not signal entrenched inflation, seeking to reassure markets and households about the medium-term price outlook.

Europe and NATO are stepping up preparations for a possible broader confrontation with Russia, moving beyond the assumption that the war will remain confined to Ukraine. The concern driving the discussion is that Moscow's aggression could spill into NATO territory, prompting European governments to expand defence spending, readiness planning and military stockpiles in case the conflict widens.

Dutch chip equipment maker ASML says it is not selling its chipmaking machines in Europe, warning that the region risks falling behind the US, China and India in semiconductors. The remarks are drawing attention to Europe's limited role in advanced chip manufacturing despite hosting ASML itself, and are fueling debate about industrial policy and investment in the region.

Economists polled by Reuters expect euro area consumer prices to have risen 3.5% year-on-year in September, up from 3.2% in August, which would be the fastest pace in nearly three years. Eurostat is due to publish its flash estimate on Friday, and analysts are watching closely for what it means for European Central Bank policy.

European governments are rolling out tax cuts and subsidies in an effort to cushion households and businesses from record-high fuel prices. The measures reflect growing political pressure across the continent as energy costs strain consumers and feed into broader inflation concerns. Officials are weighing how to keep relief targeted without worsening budget deficits.

Russia has accused European governments of obstructing peace negotiations over Ukraine, while Donald Trump urged Volodymyr Zelenskyy to "settle" with Vladimir Putin. The statements highlight growing pressure on Kyiv to reach a deal and deepen tensions between Washington, Moscow and European allies over how to end the war.

The European Commission has called on EU member states to reduce their gas and electricity consumption amid rising energy prices. The appeal comes as households and industry across the bloc face high bills, and it signals Brussels' push for demand-side measures to ease pressure on the market. Member states' responses and any binding targets remain to be seen.

European Union member states have approved five large-scale pan-European defence projects, according to a Reuters report. The decision advances joint EU defence cooperation, with the projects expected to be developed collectively by member states rather than nationally. Details on funding, timelines and which countries will lead each project were not provided in the initial report, and reaction from capitals and industry is still emerging.

The European Union has announced an emergency aid package worth 700 million euros to respond to global crises. The funding is intended to address urgent humanitarian needs worldwide, according to the announcement by Belgian news agency coverage. Details on how the money will be allocated among affected regions have not yet been fully outlined.

Pope Leo concluded his trip to France with a call for Europe to confront what he described as a 'desire for domination' driving wars in the world today. Speaking at the close of the visit, the pontiff urged European leaders and citizens to resist aggression and work for peace, a message landing amid ongoing conflicts in Ukraine and the Middle East.

Sterling has rebounded against both the dollar and the euro as traders increase bets that the Bank of England will tighten monetary policy. The pound's recovery reflects shifting expectations around UK interest rates, with markets pricing in a more hawkish stance from the central bank. Investors are watching upcoming BoE decisions and economic data for confirmation of the tighter policy path.

EU foreign ministers are gathering to discuss further aid for Ukraine, amid ongoing debates over support levels among member states. The same news cycle also carries reports that Donald Trump has rejected Iran's proposed deal concerning the Strait of Hormuz, keeping two major foreign policy stories in focus at once.

A former bodyguard of the late Hamas leader Ismail Haniyeh has been arrested on suspicion of planning a terror attack against Jewish communities in Europe, according to a report by The Jerusalem Post. Details about the suspect's location, the target countries, and whether accomplices were involved have not been disclosed, and authorities have not yet officially confirmed the arrest.

European interior ministers are meeting to discuss strengthening the bloc's external border controls and speeding up the return of rejected asylum seekers. Talks reportedly cover fast-track return procedures and tighter monitoring at migration routes, part of a broader push to curb irregular arrivals. Migration remains one of the most contested policy areas across EU member states, with governments under domestic pressure to show results.