The IMF warns of the threat of stagnation in the eurozone economy.
Europe risks sliding into economic stagnation if urgent measures are not taken to combat slowing growth, weak investments, and rising geopolitical threats, warned the International Monetary Fund. At the same time, the risks have a clearly negative bias, according to a statement from the institution released on Thursday, June 19.
In 2025, the expected growth in the eurozone will be only 0.8%, despite record low unemployment and inflation close to target, writes Bloomberg. According to IMF experts, the fragmentation of the economic space among member countries hinders innovation and business development. Currently, the costs that companies incur due to existing barriers within the EU are effectively equivalent to 44% of tariffs on goods and 110% on services.
Nabiullina stated that the last resources of the Russian economy are exhausted.
The resources that allowed the Russian economy to show growth for two years under conditions of war and sanctions are exhausted, said Elvira Nabiullina, head of the Bank of Russia, on Thursday. "We grew for two years at quite high rates because free resources were engaged," she said. According to Nabiullina, this concerns labor, production capacities, capital reserves of the banking system, as well as money from the National Welfare Fund, which the government used to patch “holes” in the budget and finance trillion-dollar megaprojects. "We need to understand that many of these resources are indeed exhausted," Nabiullina said. Mass emigration and the conscription of men for war have created a shortage of personnel, which the government estimates at 2 million people. Liquid assets of the NWF have decreased threefold since the beginning of the war. Currency reserves in the fund have dropped to 153.7 billion yuan — a minimum since its establishment in 2008, and the gold reserves of the NWF have shrunk to 139.5 tons, although before the war they exceeded 400 tons. The fund may be completely depleted by 2026. Business profits in March fell by a third, while in the key oil and gas sector — by half. In fact, economic officials are telling Vladimir Putin that it’s time to choose — war or the economy, said the head of one of the Russian expert centers to Novaya Gazeta.Europa.
Head of the Office of the President of Ukraine Andriy Yermak is causing irritation in the US Presidential Administration.
Yermak is a 'bipartisan irritant' in American politics, writes Politico. There are now fears that his behavior is only worsening the already strained relations between Kyiv and the Trump team.
American politicians often perceive him as someone who is poorly oriented in US politics, overly demanding, sharp in communication, and unable to effectively interact with the political establishment on Capitol Hill.
In addition, some officials are concerned that Yermak may have misrepresented the US position to the Ukrainian leadership.
During his last visit to Washington in early June, Yermak had difficulties organizing meetings with senior officials of the Trump administration. Zelensky's assistant arrived in Washington without a clear agenda, according to one source, and the reaction of those he met was: 'We don’t understand why he is here.'
The meeting between Yermak and Secretary of State Marco Rubio was canceled at the last minute. According to a source, Yermak still accidentally met Rubio. The Ukrainian official posted a photo of this meeting on social media, stating that they discussed the situation at the front and Ukraine's urgent need for air defense systems. Trump’s chief of staff Suzy Wiles, according to another source, made Yermak wait in the White House and then canceled the meeting. 'From a Ukrainian perspective, this was a disastrous visit,' noted another source, who called Yermak an 'existential burden' for the country.
"Today there is serious distrust towards Zelensky's team. Kyiv's inability to understand the political dynamics of the US has destructive consequences," said Ron Wahid, head of the analytical company Arcanum Global, who informally advised on peace negotiations in Ukraine.
FA: The empty promises of NATO membership have not helped Kyiv and have not contributed to peace.
At this year's NATO summit in The Hague, the alliance should take the opportunity to clearly state that membership is not in Ukraine's future. Closing the doors on Ukraine will allow Kyiv and its supporters to continue developing other plans to ensure the security it needs and deserves, writes Charles Kupchan — a professor of international relations at Georgetown University and a senior fellow at the Council on Foreign Relations in an article in Foreign Affairs. The Trump administration rightly resolved one important strategic issue: it is time to take Ukraine's NATO membership off the agenda. In February, Defense Secretary Pete Hegseth stated that 'The United States does not consider Ukraine's NATO membership a realistic outcome of the negotiations'... The Trump administration is not the only one opposing Ukraine's NATO membership. Consensus in the alliance regarding inviting Ukraine has not emerged and is unlikely to be achieved. The alliance does not believe that defending Ukraine justifies a war between NATO and Russia. Pretending otherwise only encourages Kyiv to vainly strive for membership, undermining Ukrainian leadership. Instead, Ukrainians should look for more realistic options to secure their future... After President Volodymyr Zelensky made a sharp statement at the 2023 Vilnius summit, calling NATO's unwillingness to move forward on Ukraine's membership 'absurd,' NATO hurriedly stated that 'Ukraine's future is in NATO.' But the rhetoric is misleading; Ukraine remains on the doorstep of NATO, encouraged to wait outside, but never allowed to enter. Ultimately, Kyiv would be better off knowing the bitter truth. Over more than three years of fighting, around 500,000 Ukrainians have died or been injured bravely resisting Russia's advance. The United States and its partners have provided Ukraine with military and economic assistance totaling about $300 billion. But NATO countries have not sent a single soldier to participate in the fight... Ending the illusion that Ukraine is on the path to NATO membership does not mean abandoning the country's security. On the contrary, Kyiv will know its position, encouraging it to focus on more achievable goals... Ukraine must accelerate its accession to the EU, a process that will speed up economic and political reforms and ultimately provide the country with at least some version of the security guarantees it seeks; Article 42.7 of the Treaty on European Union is a mutual defense clause... For now, Kyiv should focus on ensuring a strong ceasefire and turning a free Ukraine into a success story...
Honda successfully launched a reusable rocket.
The 20-foot experimental "reusable launch vehicle" flew steadily during ascent and descent, and reliably returned to the ground about 30 cm from the target point.
Honda did not plan to launch this experimental rocket into space, as the initial test was related to takeoffs and landings with a maximum height of only 290 meters. The small Honda rocket is about ten times smaller than the first successful reusable rocket Falcon 9, making it ideal for smaller payloads and fuel efficiency.
News in brief
At night, Russians shelled Kharkiv and Odesa with drones.
In Odesa, an enemy UAV hit a residential building. There are casualties and injuries.
Bloomberg: Spain will oppose increasing defense spending to 5% at the NATO summit.
The EU sees 'progress' in trade negotiations with the US.
Obolon residents installed figures of Klitschko and other officials due to rotten pipes.
Ukrainian wines received four gold medals for the first time at the Decanter World Wine Awards.
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