Brussels is preparing a radical overhaul of the EU’s next trillion-euro common budget, replacing dozens of programmes with merged funds that would hand more spending power to capitals. The plan, outlined in a paper seen by the Financial Times,

European Central Bank policymaker Pierre Wunsch said the euro zone faces the risk of "sleepwalking" into excessive interest rate cuts and must be prepared to stop soon, the Financial Times reported on Monday.

The European Central Bank's top policymakers outlined the contours of a looming policy debate on Wednesday, taking opposing views on inflation risks and on how much the bank is still holding back the economy.

The European Central Bank will soon have to discuss taking a break, or ending altogether, its campaign of interest-rate reductions, Executive Board member Isabel Schnabel told the Financial Times.

French President Emmanuel Macron, in an interview with the Financial Times has described Donald Trump’s return to power as an “electroshock” for the EU and a moment “to accelerate and execute”, warning that otherwise the project is at risk of failure: “It has no choice.

Henna Virkkunen, the European Commission’s executive vice-president in charge of digital policy, told the Financial Times the EU wanted to “help and support” companies when applying AI rules, as the bloc sought to boost competitiveness and not miss the boat on this technology.