18 July 2024 – European steel mills are afraid. Especially of their own age. After all, EU steel production has been lagging behind the rest of the world for years. But where does this fear really come from? And the latest bank survey by the European Central Bank (ECB) shows that demand for credit in the eurozone rose again in the second quarter for the first time in two years.
European steel’s fear of its own age
European steel mills are afraid. Especially of their own age. This is because EU steel production has been lagging behind the rest of the world in terms of technology for years. Of course, they don’t want to admit that they themselves are to blame for their own poor performance. It is always the others who are to blame and to avoid having to admit their own mistakes, the steelmakers, together with Brussels, hide behind ever new demands for market protection and subsidies.
European steel pact – breaking the law with announcement?
And while the German section of the European People’s Party (EPP) is compliantly indulging in a collection of WTO-infringing proposals with the ‘European Steel Pact’ and obviously calling for a breach of the law, it is already being celebrated for this by the steel manufacturers’ lobby organisations.
European steel and stainless steel mills’ fear of their own age
It’s time to take a closer look at the origins of this European steel and stainless steel mills’ fear of their own age with a Stainless Cappuccino: European steel and stainless steel mills’ fear of their own age
Eurozone: demand for credit on the rise
The latest bank survey by the European Central Bank (ECB) shows that demand for credit in the eurozone rose again in the second quarter for the first time in two years. This was due to a solid increase in demand for mortgage and consumer loans – primarily as a result of increased consumer confidence and stabilised lending rates.
Further improvement in credit development expected
It is pleasing to note that the banks surveyed expect a further improvement in credit development for the current third quarter, including on the part of companies. This assessment also reflects the expectation that the ECB will support the economic recovery in the eurozone with a further gradual easing of monetary policy.
Analysts currently assume that there will be a further interest rate cut of 0.25 basis points in 2024. If the decline in inflation continues as expected in the following quarters, two further interest rate cuts of the same magnitude could follow by the middle of next year.
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