EU news monthly: Annual inflation was 2.7% in December 2024
Politics
The Baltic countries switch off electricity reliance on Russia as they connect to the European grid. Lithuania, Latvia, and Estonia are fully independent from Russia's and Belarus's electricity systems after joining the European continental network via Poland.
The European Commission has presented a Competitiveness Compass. The Competitiveness Compass identifies three core areas for action: innovation, decarbonization, and security. In the area of security, the compass emphasises the importance of integrating security considerations into EU economic policies. A secure environment is essential for EU firms' economic success and competitiveness.
The Commission has selected 39 innovative projects across the EU, dedicated to deploying alternative fuels infrastructure. A total investment of €422 million, provided through the Alternative Fuels Infrastructure Facility (AFIF), will support these initiatives in driving the transition to cleaner transport. The selected projects will focus on installing public electric recharging stations, developing hydrogen refueling stations and onshore power installations in ports as well as electrifying airports.
Croatian President Zoran Milanović defended his mandate in the second round of the presidential election, as expected, winning three-quarters of the vote.
The Serbian prime minister has resigned. Prime Minister Miloš Vučević announced his resignation after weeks of protests that began after a November's tragic roof fall accident in Novi Sad, northern Serbia. His resignation is likely to lead to early elections.
Spain is to impose a 100% tax on properties purchased by people from outside the EU. In this way the government seeks to address the country's housing shortage.
Economy
In the fourth quarter of 2024, seasonally adjusted GDP increased by 0.1% in the EU, compared with the previous quarter. In the third quarter of 2024, GDP had grown by 0.4%. According to a first estimation of annual growth for 2024, based on seasonally and calendar adjusted quarterly data, GDP increased by 0.8% in the EU.
EU annual inflation was 2.7% in December 2024, up from 2.5% in November. A year earlier, the rate was 3.4%. The lowest annual rates were registered in Ireland (1.0%) and Italy (1.4%). The highest annual rates were recorded in Romania (5.5%) and Hungary (4.8%). Compared with November 2024, annual inflation fell in seven Member States, remained stable in one and rose in nineteen.
The EU unemployment rate was 5.9% in December 2024, up from 5.8% in November 2024 and down from 6.0% in December 2023.
Author
Erste Bank Research Team
Erste Bank
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