Why Eurozone Inflation Divergence Is Forcing Uneven Policy

Episode 58 of The European Economy Podcast: Lucas and Luna dig into an under-covered story shaping European markets in June 2026: the widening gap in inflation rates across Eurozone countries. With German headline inflation at 2.1% and Spanish at 3.8%, the one-size-fits-all ECB policy is showing strain. They examine the role of energy subsidies expiring, services inflation stickiness, and what this means for bonds. The VGK is up 0.7% in five days, but Spanish stocks (EWP) have surged 3.7% — a sign markets are betting on a slower pace from the ECB. Lucas explains why Portugal and Italy are also diverging, and what the ECB's own data says about the risk of a two-speed recovery. Fresh angle, no overlap with prior episodes. #EurozoneInflation #ECB #MonetaryPolicy #GermanEconomy #SpanishEconomy #ItalianEconomy #PortugueseEconomy #BondMarkets #EuropeanStocks #VGK #EWP #InflationDivergence #CentralBanking #Economics #Eurozone #FexingoBusiness #BusinessPodcast #EuropeanEconomy Keep every episode free: buymeacoffee.com/fexingo