Eurozone

The Eurozone's economy grew by 1.5% in 2025, exceeding expectations and marking a second consecutive year of acceleration. This positive growth occurred despite trade tensions with the United States, indicating resilience.

The Eurozone's private-sector growth slumped in March, with its Composite PMI dipping due to soaring energy costs from the Middle East conflict. Its growth forecast for 2026 was revised down, and inflation surged, complicating the European Union===European Central Bank's policy.

Bulgaria joined the Eurozone in January, a move Rumen Radev has criticized. His victory could lead to further scrutiny or potential challenges to Bulgaria's integration with the Eurozone, though he has stated Bulgaria will continue on its European path.

The Eurozone, already grappling with higher energy prices from the Russia-Ukraine war, is taking a bigger hit from the Middle East conflict. Its growth outlook has fallen by 0.2 percentage points in both 2026 and 2027, reflecting increased economic vulnerability.

Bulgaria recently joined the Eurozone, a significant economic integration step. The new government's policies will need to align with Eurozone requirements.