Business

EU Advances Digital Euro Talks as Lawmakers Enter Final Negotiation Stage

Published

4 hours ago

July 9, 2026

The European Union has moved a step closer to introducing the digital euro after the European Parliament approved its negotiating position, clearing the way for final discussions with member states on the proposed digital currency.

The vote in Strasbourg marks the beginning of the last phase of negotiations between the European Parliament and EU governments. Lawmakers and national representatives are expected to focus on several complex issues, including how banks and payment providers will be compensated for offering digital euro services and how transaction fees will be distributed across the payment system.

The digital euro is planned as an electronic version of central bank money issued and guaranteed by the European Central Bank (ECB). Officials have repeatedly stressed that the new currency is intended to complement physical cash rather than replace it, while also working alongside existing banking and payment services.

Under the proposal, consumers would be able to store digital euros in a dedicated electronic wallet. A maximum holding limit will be introduced, although the exact amount has not yet been decided.

The system is expected to support both online and offline payments, allowing transactions even when internet access is unavailable. Privacy has also been presented as a key feature of the project. According to the proposal, the ECB will operate the underlying infrastructure but will not be able to directly identify users through their payment data.

Commercial banks and payment service providers will be responsible for offering digital euro accounts and related services to individuals and businesses, creating a partnership between the central bank and the private financial sector.

According to sources familiar with the negotiations, the most challenging issue remains the compensation model. Negotiators must determine which financial institutions will receive payments for providing digital euro services, how much compensation they should receive and how those payments will be financed.

Another important topic is the distribution of transaction fees throughout the payment chain. Current proposals suggest merchants would pay lower fees than those typically charged for traditional card payments, a move that supporters believe could reduce business costs and encourage wider adoption of digital payments.

The negotiations are expected to intensify during the autumn as lawmakers seek to resolve outstanding disagreements before presenting the final legislation.

If agreement is reached, EU institutions aim to grant final approval before the end of the year. The European Central Bank is expected to begin a pilot programme in 2027 to test the system before a wider public rollout.

Current plans envisage the digital euro becoming available for everyday retail payments in 2029. European officials view the initiative as an important step toward strengthening the region’s payment infrastructure, improving financial resilience and providing consumers with a secure public digital payment option in an increasingly cashless economy.

Business

Oxford Economics Warns US-Iran Peace Deal Will Shape Global Economy in Second Half of Year

Published

1 day ago

July 8, 2026

Web Reporter

The outlook for the global economy during the remainder of the year will depend largely on whether the fragile peace agreement between the United States and Iran survives, according to a new analysis by Oxford Economics, which says the deal could determine the direction of inflation, energy prices and financial markets.

After a first half marked by conflict in the Middle East, volatile oil prices and rapid growth in artificial intelligence investments, the consultancy believes the next six months will be influenced by a series of interconnected risks, with the US-Iran truce standing at the center.

Chief Global Economist Ryan Sweet said the durability of the agreement would determine whether the global economy benefits from lower energy costs or faces another oil-price shock.

Oxford Economics forecasts global annualized economic growth of 3.1 percent during the second half of the year, compared with an estimated 1.6 percent in the first six months. The projection assumes oil prices remain relatively stable, supporting consumer spending and easing inflationary pressures. However, Sweet described the chances of the peace agreement holding as no better than “a coin flip.”

The report expects Brent crude to average in the low $70s per barrel if the agreement remains intact. A breakdown, however, could trigger higher inflation, tighter financial conditions and renewed pressure on global supply chains.

Those concerns intensified after fresh military exchanges on Wednesday. The United States launched strikes against Iran following allegations that Tehran had attacked three commercial vessels in the Strait of Hormuz. Iran responded with strikes targeting Bahrain and Kuwait, raising fears that the ceasefire could unravel.

Oil markets reacted quickly, with Brent crude climbing above $78 a barrel after rising more than six percent during trading.

Oxford Economics said any disruption would extend well beyond energy markets. Higher oil prices could increase production costs for technology companies, disrupt semiconductor supply chains across Asia, complicate central bank policy decisions and influence political developments, including upcoming elections in the United States and Israel.

The consultancy’s outlook differs from several other major forecasts. Morgan Stanley expects crude prices to approach $90 a barrel by year-end, while the World Bank projects Brent crude to average around $94 this year and anticipates global economic growth slowing to 2.5 percent in 2026.

Oxford Economics identified shipping activity through the Strait of Hormuz as one of the clearest indicators of whether the peace agreement is holding. The report said a sustained recovery in vessel traffic by mid-July would strengthen confidence in the deal.

Beyond geopolitics, the report highlighted growing risks surrounding the artificial intelligence sector. The Bank for International Settlements recently warned that rapid expansion in AI investment has become increasingly dependent on private credit and complex financing arrangements outside the traditional banking system.

Oxford Economics also modeled a scenario in which US technology stocks fall by 25 percent over one year. According to Sweet, such a correction would bring US economic growth close to a standstill and reduce global growth by more than one percentage point.

Despite these risks, the consultancy said stronger AI-driven productivity and resilient economic activity in Europe could provide support if geopolitical tensions ease and energy markets stabilize during the second half of the year.

Business

Uzbekistan Accelerates Multi-Billion-Dollar Drive to Boost Value-Added Exports

Published

1 day ago

July 8, 2026

Web Reporter

Uzbekistan is intensifying efforts to strengthen its export economy by expanding domestic processing industries, with multi-billion-dollar investments aimed at increasing the value of agricultural products, metals and minerals before they reach international markets.

The strategy forms a key part of the country’s long-term economic plans and includes a $10 billion food-processing target by 2030, a $4.2 billion pipeline of technological metals projects and new steel manufacturing facilities designed to reduce imports while increasing exports.

The initiative comes as Uzbekistan’s economic outlook continues to improve. In June, Moody’s Ratings upgraded the country’s sovereign credit rating from Ba3 to Ba2, citing stronger economic performance, improved fiscal conditions and progress in institutional reforms.

As a landlocked nation, Uzbekistan is seeking to maximize export earnings by processing more goods domestically rather than relying on raw commodity exports.

Agriculture remains one of the country’s largest sectors. Agriculture Minister Ibrokhim Abdurakhmonov said Uzbekistan produces around 24 million tonnes of fruit and vegetables each year but stressed that production alone is no longer enough to support long-term economic growth.

He said processed food exports are expected to reach $4.5 billion this year, placing the country on track toward its 2030 target. According to the minister, greater investment in packaging, canning, bottling and food-processing technologies will allow Uzbek products to compete in higher-value international markets.

Uzbekistan currently exports agricultural products to 92 countries and is also expanding internationally recognized certification systems, including halal, organic, ISO, GLOBALG.A.P. and Better Cotton Initiative standards, to improve market access.

Officials believe maintaining strict quality controls and laboratory testing will help prevent export rejections and strengthen the country’s reputation among overseas buyers.

Infrastructure and investment are also central to the government’s plans. Kanokpan Lao-Araya, the Asian Development Bank’s Country Director for Uzbekistan, said long-term investment depends on reliable transport networks, energy systems, skilled workers and a stable legal environment that gives investors confidence.

The Asian Development Bank is supporting the country’s agricultural sector through the ANORA investment platform, which aims to attract additional private capital into agribusiness and export-oriented projects.

International manufacturers are also increasing their presence. Italian engineering company Gamma Meccanica is working with Uzbek partners on stone-wool insulation production and hydroponic farming technologies to support industrial growth.

The government is pursuing similar ambitions in mining and manufacturing. Uzbekistan Technological Metals Complex, established in 2024, is overseeing more than 100 projects worth an estimated $4.2 billion to expand exploration, refining and processing of critical minerals.

Steel producer Uzmetkombinat plans to localize production of 880,000 tonnes of sheet steel annually, with more than 200,000 tonnes intended for export. Company officials said higher-value steel products command significantly better prices than standard construction steel.

At Almalyk Mining and Metallurgical Complex, executives expect new copper-processing projects and advanced manufacturing agreements to potentially double or triple company profits.

Industry experts have also stressed the importance of transparency. Mark Robinson, Executive Director of the Extractive Industries Transparency Initiative, said countries rich in natural resources must maintain strong governance, fair contracting practices and transparent permitting systems to ensure mining revenues generate lasting economic benefits while attracting responsible investment.

Business

OPEC+ Approves Modest August Oil Output Increase as Crude Prices Retreat

Published

3 days ago

July 6, 2026

Web Reporter

Seven members of the OPEC+ alliance have agreed to increase their combined oil production by 188,000 barrels per day in August, adopting a cautious approach as global crude prices continue to fall back to levels seen before the conflict involving Iran disrupted energy markets.

The producers announced the decision on Sunday, saying the output adjustment reflects current market conditions while reaffirming their commitment to maintaining stability in global oil markets.

“The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach,” the group said in a statement.

The increase comes after oil prices retreated sharply following months of heightened volatility linked to the conflict in the Middle East. Brent crude, the international benchmark, was trading below $72 per barrel as markets opened on Sunday evening, returning to levels recorded before military action involving Iran earlier this year. US benchmark West Texas Intermediate (WTI) was trading at around $68 per barrel.

Oil prices had surged during the height of the conflict, with Brent approaching $120 per barrel amid concerns over disruptions to supplies from the Gulf region. Prices have eased in recent weeks as tensions cooled and shipping activity gradually resumed.

Market sentiment has improved after Iran agreed under an interim understanding to allow commercial vessels to pass through the Strait of Hormuz, while the United States eased restrictions affecting Iranian ports. Even so, negotiations aimed at reaching a broader settlement remain ongoing, and authorities in Tehran have warned that vessels departing from approved routes could face military action.

The Strait of Hormuz is one of the world’s most important energy shipping routes, carrying roughly one-fifth of global oil supplies before the conflict. Although commercial traffic has resumed, shipping volumes have yet to return to normal levels.

During the conflict, many OPEC+ production increases existed largely on paper rather than in actual exports. Limited access through the Strait of Hormuz forced several Gulf producers to reduce physical shipments as storage facilities filled with unsold crude, leaving actual production below official quotas.

As maritime routes gradually reopen, stored oil is returning to international markets, adding to supply and contributing to downward pressure on prices beyond the announced production increase.

Despite improving conditions, analysts believe a full recovery in Gulf oil production will take time. S&P Global Energy has projected that output may not return completely to pre-conflict levels until at least the first quarter of 2027. Industry observers also expect the effects of the disruption on fuel prices and broader inflation to continue even after any permanent political settlement is reached.

The seven OPEC+ producers said they remain prepared to suspend or reverse future output increases if market conditions deteriorate. The alliance is scheduled to meet again on August 2 to review supply levels and assess developments in the global energy market before deciding on production plans for the following month.