European Union

Brexit extension lets UK remain in name only

11 Apr 2019

Postponing its EU exit to October 31 avoids a chaotic departure and gives the country more time to find a way out of its impasse. That probably requires a new government or another referendum. While Britain is still an EU member, it has been reduced to the role of a spectator.

ECB sop to banks will only help at the margin

10 Apr 2019

President Mario Draghi is considering ways to ease the pain that negative policy rates inflict on banks, such as tiered deposits in Japan and Sweden. Savings-rich German lenders would benefit most. But any earnings boost would be modest and does nothing to remedy high costs.

Theresa May’s soft-Brexit pivot has three barriers

3 Apr 2019

The prime minister offered to strike a deal with the opposition Labour party to avoid crashing out of the EU. Its leader Jeremy Corbyn may refuse to help, her own party might revolt, and Europe could reject another extension. A chaotic Brexit is less likely, but still possible.

Four lessons of Theresa May’s third Brexit defeat

29 Mar 2019

The prime minister’s deal for leaving the EU is almost certainly dead after parliament rejected it again. A different compromise is feasible but hard to agree. That makes a long delay, and maybe a general election, more likely. But a chaotic departure may still happen.

Brexit extension sharpens Britain’s choices

22 Mar 2019

European Union leaders gave Theresa May two more weeks to agree a plan for leaving the bloc. But they also dangled the possibility of a longer delay. For all the shuffling of dates, Britain’s options remain basically the same as before, including the risk of a chaotic departure.

Google fines make case for tougher antitrust curbs

20 Mar 2019

Europe has hit the Alphabet unit with its third penalty in less than two years, taking the toll to over $9 bln. That sum pales against the $600 bln the firm has added to its market cap since the investigations began in 2010. Both sides are being pushed to a bigger showdown.

RWE’s German carve-up looks better than E.ON’s

14 Mar 2019

A year after a 17 bln euro asset swap, the German utilities’ deal is in Brussels’ antitrust sights. It’s more an issue for E.ON, which may lose out if forced disposals erode hoped-for cost savings. RWE, meanwhile, seems to have chosen the right time to bulk up in renewables.

Brexit tips Ireland into economic purgatory

11 Mar 2019

Ten years after a devastating recession, the Emerald Isle is buoyant again. Banks fleeing London jostle with tech firms for Dublin office space. But the risk of a disorderly Brexit is hurting investment and confidence across the Irish Sea – and fuelling fears of renewed violence.

Delaying tactics could bring Brexit to a head

25 Feb 2019

Theresa May has shunted a vote on her plan to leave the European Union to mid-March. Meanwhile, parliamentarians want to postpone the departure date if no deal is agreed. Threats of procrastination don’t alter Britain’s hard choices, but may help rule out the worst Brexit option.

UK’s centrist group is far from a Macron moment

18 Feb 2019

The defection of seven left-wing Labour politicians invites comparisons with the political shakeup that propelled the French President to power. But Britain’s political system penalises small parties. The split strengthens PM Theresa May, and may help her Brexit deal.

EU risks picking wrong fight with foreign giants

13 Feb 2019

France and Germany want to help companies fend off Chinese and U.S. behemoths by merging. Yet Europe’s fragmented markets and limited state subsidies mean it will never win the size game. Better to double down on strict antitrust rules while blocking unfair foreign buyers.

Derailed train M&A spells poor EU antitrust revamp

6 Feb 2019

Competition tsar Margrethe Vestager blocked Siemens and Alstom’s rail merger in defiance of Franco-German pressure. Paris and Berlin are agitating for rule changes and may back a replacement who will be more willing to create regional champions. That would be a mistake.

Siemens-Alstom is poor advert for EU champions

5 Feb 2019

German and French politicians are annoyed because the rail merger may be blocked. But their argument that the deal is needed to shield Europe from Chinese competition is flawed. The duo’s workers may also suffer. This is the wrong regional standard-bearer to promote.

EU “golden visa” alarm is too little too late

23 Jan 2019

Brussels is right to worry that dodgy tycoons can buy their way into Europe. But national governments are the only ones with the power to close these back doors. Given the benefits that countries such as Cyprus and Malta reap from such schemes, the gates will swing shut slowly.

Franco-German unity is dated gauge of EU progress

22 Jan 2019

The two countries plan to cooperate more on defence and culture. If only harmony extended to issues such as economic governance. And even when the pair speak as one, say on Alstom-Siemens’ rail merger, they don’t always get their way. But that is a sign of success, not failure.

Brexit defeat will begin process of elimination

15 Jan 2019

Britain’s parliament is set to reject Prime Minister Theresa May’s deal to leave the European Union. The vote will offer few pointers about which alternatives they prefer, but will force politicians to test other ideas. With 73 days to go, their options are rapidly shrinking.

Euro zone faces Franco-German growth whammy

9 Jan 2019

A drop in Gallic consumer confidence is worrying for a country that’s usually reliant on domestic demand. Meanwhile industry in Germany, an export champion, is feeling the strain from global trade tensions. Where the bloc’s two biggest economies lead, smaller peers will follow.

IAG tests EU appetite for destruction

9 Jan 2019

The parent of British Airways and Spain’s Iberia may fall foul of European ownership rules if the UK leaves without a deal, according to the FT. That could force it to sell Iberia. IAG’s best hope is that European states have little to gain from unwinding airline consolidation.

Next ECB boss will matter less than his sidekick

3 Jan 2019

Most of those vying to replace Mario Draghi at the European Central Bank lack his creativity. Others will have more scope to sway debates. Ireland’s freethinking Philip Lane is favourite to be chief economist. He would have outsized influence, especially in the next downturn.

ECB starts new year with Italian bank hangover

2 Jan 2019

Regulators in Frankfurt have appointed temporary administrators at troubled Banca Carige. The unprecedented move looks a last-ditch attempt to push through a 400 million euro cash call opposed by the bank’s top investor. Barring a sale, the next step could be resolution.