The European Commission is drafting another package of sanctions against Russia

Politics

The new Polish president, Karol Nawrocki, has officially taken office after being sworn in at a joint session of the country’s upper and lower houses of Parliament. He succeeds Andrej Duda in the presidential palace in Warsaw. In his first speech as head of state, Nawrocki said that he will be the voice for citizens who desire a sovereign Poland and rejected the idea of adopting the euro.

The President of the European Commission, Ursula von der Leyen, spoke in support of the trade agreement between the EU and the USA that she has negotiated with Donald Trump. The full text of the agreement was made public. According to President von der Leyen, the agreement establishes a “very clear” 15% flat tariff on almost all EU products (including automobiles and pharmaceuticals), while exempting generic drugs and aircraft components from duty.

Severeal NATO member nations have founded a new international Defence, Security, and Resilience Bank. The NATO allies, the European Parliament, and some large financial institutions have agreed to its creation. Forty countries, as yet unnamed, will hold shares in the bank, as well as some large American and European banking houses. NATO members will be able to receive assistance with their defence expenditures from the bank.

The European Commission has approved an injection for prevention of the HIV virus, produced by the American company Gilead Sciences. Czech virologist and biochemist Tomáš Cihlář took part in its development. The European Medicines Agency (EMA) recommended approval of the medicine last month, reporting that the injection is highly effective. Its advantage is that it is administered only twice a year.

The European Commission is working on an additional, nineteenth package of sanctions against Russia, which is expected to be unveiled at the beginning of September. This follows the eighteenth sanctions package, which focused on the Russian energy and banking sectors.

Economy

In the second quarter of 2025, seasonally adjusted GDP increased by 0.2% in the EU, compared with the previous quarter. In the first quarter of 2025, GDP had increased by 0.5% in the EU.

The EU unemployment rate was 5.9% in July 2025, also down from 6.0% in June 2025 and in July 2024.

EU annual inflation was 2.4% in July 2025, up from 2.3% in June. A year earlier, the rate was 2.8%. The lowest annual rates were registered in Cyprus (0.1%), and France (0.9%). The highest annual rates were recorded in Romania (6.6%) and Estonia (5.6%). Compared with June 2025, annual inflation fell in eight Member States, remained stable in six and rose in thirteen.

In June 2025, compared with May 2025, seasonally adjusted production in construction decreased by 0.5% in the EU. Among Member States for which data are available, the largest monthly decreases in production in construction were recorded in Spain (-5.6%), and Hungary (-5.3%). The highest increases were observed in Slovakia (+5.3%), and Romania (+4.5%). In June 2025, compared with June 2024, production in construction increased by 1.9% in the EU.

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