Eurozone growth slowed in the second quarter, adding pressure to policymakers already weighing the region’s economic outlook. Fresh data showed the bloc lost momentum after a stronger start to the year, underscoring uneven recovery across member states.

At the same time, the European Central Bank left interest rates unchanged, signaling caution as officials assess inflation trends and growth risks. The decision suggests the bank is not ready to adjust course while uncertainty remains around household demand, business investment, and the broader global economy.

EU finance ministers are also revisiting the bloc’s fiscal rules, a debate that has gained urgency as governments balance debt reduction with support for weak growth. The discussion reflects a familiar tension in Europe: how to restore budget discipline without choking off recovery.

Economists say the combination of slower output and policy caution could keep markets focused on whether the eurozone can regain stronger momentum later this year. For now, the picture is one of modest growth, steady rates, and renewed scrutiny of the fiscal framework guiding the region.