European Union

China wins only token victory in EU car wars

13 Sep 2024

Spanish PM Pedro Sanchez wants Europe to drop duties on Chinese EVs, suggesting the Middle Kingdom’s plan to turn member states is working. But blocking the levy will be legally tricky, and Brussels’ credibility is at stake. Beijing faces a long road to upend the union’s plans.

Thrifty Europeans demand more aggressive rate cuts

12 Sep 2024

The European Central Bank lowered rates again on Thursday. President Christine Lagarde hopes to spark a consumer-led recovery. But households are saving 15% of their income, wage increases are slowing and mortgage costs rising. Only more rapid easing can cause a spending surge.

Ireland can use unwanted taxes to keep Apple sweet

10 Sep 2024

Europe’s top court told the iPhone maker to pay $14 bln in corporate levies. Dublin opposed the move for fear of driving away Big Tech. But PM Simon Harris can up the country’s allure by spending the funds on infrastructure, and IT giants have limited choices for EU headquarters.

Draghi’s Europe plan collides with national crises

9 Sep 2024

The former Italian PM reckons the bloc must invest an extra $883 bln a year to catch up with the US and China. His report sensibly calls for telecom mergers and a common defence strategy. But the big lift will have to come from governments beset by their own issues.

Europe’s inflation fix requires corporate pain

30 Aug 2024

Price growth in services is still running at 4.2%, too high for European Central Bank President Christine Lagarde. To bring it down, companies’ margins will have to absorb rising wage costs. Shareholders may balk but consumers, and the euro zone economy, will benefit.

New EU antitrust tsar has better tools, harder job

27 Aug 2024

The European Union will soon have a new competition commissioner. Margrethe Vestager’s replacement has greater scope to go after Big Tech and Chinese subsidies. But he or she will also have to defend the single market from the assault of EU members’ national industrial policies.

Elon Musk’s best move in EU fight may be an eXit

21 Aug 2024

The billionaire has different views on content moderation from the European Commission, which is investigating his social-media site. It’s hard to imagine a compromise. Rather than risking fines of 6% of sales, it might be easier for X to simply block users in the region.

The ECB is running out of time to revive euro zone

16 Aug 2024

The bloc’s GDP rose by a steady 0.3% in the second quarter. But business surveys and sentiment data suggest growth is flagging. Inflation is sticky so European Central Bank chief Christine Lagarde may be reluctant to cut rates decisively. But waiting risks impairing the recovery.

China’s EU-made EVs are in pole position – for now

19 Jul 2024

BYD and Chery are planning plants in the European Union; peers will follow. While factors like labour and energy add 25% to the cost of cars made in the bloc, tech and design mean the overall product is cheaper than Western rivals’. But Brussels could yet complicate matters.

Public investment dearth is Europe’s growth killer

17 Jul 2024

Germany will spend a paltry 0.15% of GDP on new government-backed projects in 2025. Other European countries are tightening their belts for fear of having to raise taxes. But failing to invest enough in the green transition, infrastructure or defence will cripple their economies.

Inflation teaches five lessons for the next crisis

16 Jul 2024

After taming a 9% rise in prices without breaking economies, US Fed Chair Jay Powell and other central bankers are poised to pat themselves on the back. There’s also an opportunity to improve the playbook. Among the useful takeaways: embrace taciturnity, flexibility and humility.

Tariffs offer poor airbag for Europe’s carmageddon

15 Jul 2024

Volkswagen, Renault and others still have miserable valuations despite Brussels threatening China with penalties on electric-vehicle imports. The duties may not be big enough, and could even hurt Western players. Possible fixes, like rowing back on carbon targets, look tricky.

Northvolt flags European batteries’ growing pains

5 Jul 2024

The $12 bln Swedish maker of devices to power electric cars has lost a contract with BMW, one of its own backers. Brussels would love domestic players to cut European automakers’ reliance on China. Yet the EU’s conflicting strategies and foreign competition mean progress is slow.

The risk of a euro crisis is rising

1 Jul 2024

While political instability in France adds to the single currency’s fragility, it probably won’t trigger another meltdown. But euro zone members’ high debts, pressing spending needs and low growth at a time of rising nationalism and geopolitical conflict are storing up trouble.

How to scale up the G7’s $50 bln Ukraine loan

23 Jun 2024

The club of rich democracies navigated many obstacles to lend to Kyiv. They found ways that could side-step U.S. Congressional approval and avoid increasing EU countries’ debts. They could use similar methods if they are prepared to give Ukraine the $320 billion it really needs.

France would feel lonely if debt crisis hit

18 Jun 2024

Market fears of a far-right victory in the elections sent yields on the country’s 2.3 trln euro debt to 12-year highs. If traders’ worries deepen, support from the European Central Bank is not a given. And a eurosceptic government would be deprived of Brussels’ goodwill.

Pork glut gives China an edge in EU tariff fight

18 Jun 2024

Domestic overcapacity means the world’s top consumer of the white meat can afford to slap duties on EU imports in response to levies on EVs. European farmers may also find it harder to work around the tariffs than Chinese automakers. It's a savvy move by Beijing.

China’s EV makers can ride the tariffs backlash

18 Jun 2024

The US and the EU have imposed hefty import duties on electric vehicles BYD, Tesla and others make in the People’s Republic. In this Exchange podcast, consultant and former Chrysler executive Bill Russo explains why Europe’s levies are more a speeding fine than a stop sign.

Super Mario could give weak EU a shot in the arm

10 Jun 2024

After the European Parliament elections, the EU will choose its leaders. Mario Draghi, who helped save the euro, brings unique experience. If the 27 member states wanted to rise to global challenges, they would pick him to chair their discussions as European Council president.

EU vote is prelude to Europe’s real choice

5 Jun 2024

Some 370 mln voters from 27 member states are set to pick a new assembly. The result will influence how EU government leaders decide who should lead the next European Commission. Backing incumbent Ursula von der Leyen to avoid a chaotic deadlock is in the bloc’s best interest.