The eurozone grew 0.4% in Q2 2026, doubling the 0.2% market consensus, Eurostat's preliminary flash estimate showed July 30; Spain led major eurozone economies with 0.7% growth, partly shielded by its 56.6% renewable electricity share from the oil price spike; Germany, France and Italy each posted 0.2%; re-accelerating inflation across the bloc is sharpening expectations for an ECB rate hike at the September meeting

The European Central Bank meets on July 23 with markets pricing more than 99% probability of a hold; ECB President Christine Lagarde's post-meeting language will be watched closely for signals of a September rate increase as eurozone inflation stays above target

Italy's Prime Minister Giorgia Meloni met with coalition leaders Salvini, Tajani and Lupi at Palazzo Chigi on July 21 and agreed to activate the EU's national energy safeguard flexibility clause, giving the government approximately EUR 14 billion in extra fiscal headroom concentrated on high energy costs

The European Central Bank kept its benchmark rate at 2.25% on July 23, 2026, and ECB President Christine Lagarde left the door open for a September hike at her afternoon press conference, warning that surging oil prices could shape the next decision and saying inflation is expected to remain well above target until the first half of 2027

The European Central Bank selected 36 payment service providers to test a digital euro in a year-long pilot from 2027, including neobanks Revolut and Stripe alongside traditional lenders such as UniCredit, in the latest step toward an EU central-bank digital currency designed to reduce eurozone reliance on foreign payment networks

The eurozone's central bank sets interest rates for 350 million people across 20 countries, with a treaty mandate to hold inflation at 2%.

Shared currency of 21 EU member states and the world's second reserve currency, the euro gives the European Central Bank its primary lever over the eurozone economy.

The deposit rate goes to 2.25% as war-driven oil prices push 2026 inflation projections to 3.0% amid stalling growth