Peter Smith
⬤ Eurostat recently reported that euro area GDP grew by 0.2% in the third quarter of 2025 and by 1.4% compared to the same period in 2024, based on their latest flash estimate. The data shows how quarterly growth across the euro area, the wider EU, and the United States has evened out over recent years after the pandemic shock. Worth noting: U.S. figures for Q3 2025 are missing because the Bureau of Economic Analysis paused releases during a federal government shutdown, making direct comparisons harder for this quarter.
⬤ EU policymakers are currently weighing tax reforms designed to expand the revenue base and address gaps in cross-border corporate taxation. These proposals, still being reviewed, have sparked worries in several industries that stricter tax rules could squeeze smaller companies already dealing with higher borrowing costs, potentially pushing some toward bankruptcy if their profit margins shrink too much. There's also concern that changes targeting high-skilled worker taxation might drive talent toward countries with lower tax rates, creating long-term risks for innovation-focused sectors that are key to Europe's economic growth.
⬤ The official Eurostat update confirms "Euro area GDP +0.2% in Q3 2025, +1.4% compared with Q3 2024." This snapshot backs up the story of a region managing slow but steady expansion despite persistent inflation, tighter financial conditions, and sluggish global trade. The data also shows the euro area's quarterly GDP growth staying roughly in line with the broader EU average, suggesting consistency even as other major economies face data gaps or more volatile swings.
⬤ The latest GDP numbers offer some cautious optimism for the euro area heading into the end of 2025. While the recovery is holding, it's not strong yet, and how the tax policy debates play out could significantly affect business investment and labor movement down the line. For now, the eurozone's gradual growth shows economic resilience, keeping GDP performance front and center in European financial and policy conversations.
Peter Smith
