European markets wrapped up Thursday with policymakers, regulators, and dealmakers all in focus.
The ECB opted for stability as growth and inflation proved more resilient than expected, while corporate activity underlined confidence in long-term demand.
Germany unveiled a major new fund to revive investment after years of stagnation, and Austria’s top court delivered a landmark ruling that could reshape digital advertising across the EU.
ECB holds rates steady again
The European Central Bank (ECB) kept interest rates unchanged on Thursday, leaving the deposit facility at 2.0% and the main refinancing rate at 2.15% for a fourth straight meeting.
The move highlights the eurozone economy’s surprising resilience despite US tariffs and ongoing global trade tensions, with the ECB lifting growth forecasts to 1.4% in 2025, 1.2% in 2026, and 1.4% in 2027.
Inflation forecasts also nudged higher, to 2.1% in 2025 and 1.9% in 2026, settling close to the ECB’s 2% target as stubborn services inflation and solid domestic demand persist.
Policymakers emphasised a data-dependent approach, signalling no urgency to cut rates even as risks appear balanced.
Markets now expect rates to remain steady through 2026, supported by Germany’s fiscal push and a still-tight labour market.
Aena expands UK airport footprint
Spain’s airport operator Aena has agreed to buy a 51% stake in a new holding company that will fully own Leeds Bradford Airport and hold 49% of Newcastle Airport, in a deal valued at £270 million ($360 million).
The seller, InfraBridge, will keep the remaining 49%, deepening a partnership that already exists at London Luton Airport, where Aena also owns 51%.
Together, the two airports handled around 9.5 million passengers last year, lifting Aena’s total traffic in the UK to about 26.5 million when combined with Luton’s 17 million.
CEO Maurici Lucena called the move a major step in expanding into high-growth markets, with Aena aiming to generate 15% of its EBITDA from overseas operations by 2026.
The transaction still needs regulatory approvals and is expected to close in the second quarter of 2026.
Germany unveils €30 billion growth fund
Germany rolled out the €30 billion ($35.2 billion) Deutschlandfonds on Thursday, aiming to unlock as much as €100 billion in private investment to jump-start a sluggish economy.
Run jointly by the finance and economy ministries through state development bank KfW, the fund is designed to lower risk for investors using guarantees, loans, and equity stakes, rather than direct government spending, after years of economic stagnation.
The focus is squarely on future-facing areas: decarbonising heavy industry, supporting SMEs, and backing sectors like critical raw materials, renewable energy utilities, and deep-tech, biotech, and defence startups.
Key measures include €8 billion in guarantees for major industrial projects, €600 million earmarked for geothermal energy, an expanded Zukunftsfonds II for venture capital, new defence export financing, and securitisation tools for small businesses.
In total, the government hopes the programme will generate up to €130 billion in investment and give Germany’s competitiveness a meaningful boost.
Austria court slams Meta’s ad model
Austria’s Supreme Court ruled on Thursday that Meta’s personalised advertising model breaches GDPR, forcing the company to overhaul how it handles user data across the EU.
Under the ruling, Meta must give users full access to all personal data it holds, including where the data came from, who it was shared with, and how it’s used, within 14 days of a request, dismissing arguments that this information is protected by trade secrets.
The court found that Meta unlawfully collected data from third-party apps and websites, processed sensitive details such as political views, sexual orientation, and health information without valid consent, and improperly combined this data.
The case was brought by privacy activist Max Schrems back in 2014 and finally concluded after 11 years, three national court rulings, and two decisions by the EU’s top court.
Schrems was awarded €500 in damages, while Meta now faces the risk of fines if it fails to comply.
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