Southern Europe in July 2026: the most important developments in economy
In Southern Europe in July 2026, the biggest economic story was Chinese carmaker Geely's arrival in Spain. On July 23 Geely secured its first production base in the European Union through a deal to use a Ford factory in Spain, and on July 24 Ford and Geely announced a joint venture there focused on the European market. Spain also said it welcomes Chinese carmakers and their workers as part of a push to build more electric vehicles in Europe. In Italy, Ferrari's chief executive said the company was 'very pleased' with orders for its first electric car, the Luce.
Spain also faced a dispute with Washington. On July 8, at a NATO summit, President Donald Trump ordered a halt to all US trade with Spain, citing insufficient NATO spending and its stance on Iran, and called it a 'wasted cause'. Experts questioned whether he has the authority to do this without Congress. Spain's economy minister said momentum was growing for EU joint borrowing, and the head of the European Central Bank urged debate on Spain's new debt plan.
Energy dominated the Italian picture. Eni's chief executive warned on July 11 that the energy crisis may worsen in the short term. By July 26 petrol prices had passed 2.6 euros per liter, and the government was weighing fuel price cuts and a variable fuel duty. Eni reported a 43 percent rise in first-half net profit to 3.635 billion euros and hinted at an extra dividend. Italy's economy grew 0.2 percent in the second quarter, and Istat data showed wages growing more slowly than inflation. On July 28 the European Commission pressed Rome to sign a 14.9 billion euro defence loan agreement quickly, while Italy said it needed more time.
Elsewhere, Greece lifted its veto and the EU agreed its 21st package of sanctions on Russia. In Cyprus, the energy minister said the next two years are critical for the country's energy strategy, and power cuts hit the island because of a fault at the Dhekelia plant.
by WorldBrief & Maksim Micheliov | AI-generated summary
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