We should see a recovery in the eurozone next year, but where are the structural reforms? We are watching inflation, which could undershoot, and, if that happens, the may lower rates again. And whisper it: could Eurobonds be back in play in some form or another?
ING’s Base Call: Manufacturing Will See a Cyclical Recovery
It has to happen at some point – a turnaround in the eurozone , and we think we’ll see it next year. It’s been struggling since 2022 on the back of high energy prices, a strengthening euro, intensifying Chinese competition and the trade war. While headwinds from the latter have not disappeared, and some, of course, are structural, both oil and natural gas prices have declined by more than 20% since the beginning of 2025. In addition, Germany intends to significantly lower electricity costs for energy-intensive industries, providing additional breathing…
