European Union

EU debt rules offer unity at price of relevance

21 Dec 2023

European Union finance chiefs reached a deal on a new fiscal pact, breaking a post-pandemic stalemate. Germany won austere deficit and debt targets, yet pain will be diluted by French-fought delays and concessions. The net result is an overly complex system that may not work.

EU accession carrot keeps Ukraine aid hopes alive

15 Dec 2023

Brussels has agreed to start membership talks with Kyiv, but Hungary blocked 50 bln euros earmarked for the war-torn country. The prospect of joining the 27-nation bloc matters more to Ukraine than the short-term financial setback, which can be overcome in the coming months.

EU’s Russian asset grab would backfire

14 Dec 2023

Brussels is asking EU governments to funnel to Ukraine the returns on some 180 bln euros of frozen Russian assets. That would only marginally help Kyiv, even if Western support seems to be wavering. And it would open a legal and political can of worms.

Capital Calls: OpenAI’s Microsoft dilemma

11 Dec 2023

Concise views on global finance: When boss Sam Altman’s ouster threatened to implode the ChatGPT maker, $2.7 trln backer Microsoft helped restore order. That necessary boon, however, will draw ever-more trustbuster scrutiny about tech giants’ unshakable influence in AI.

UK, EU trade détente leans on Chinese threat

6 Dec 2023

The European Union fell in line with UK demands to ease part of Boris Johnson’s Brexit deal. Delaying tariffs on battery parts helps carmakers like Volkswagen sell to Britain and fend off competition from China. But Brussels has reason to be tougher on other issues, like finance.

EU holiday-home rules lead shady bookings to light

22 Nov 2023

Cities looking to rein in short-term rental platforms like Airbnb will get a boost from an EU plan to track bookings data. Patchy reporting has hampered stay limits and tax oversight. Clearer figures will help local authorities to balance the needs of travellers and residents.

Capital Calls: Ford, Amazon

26 Oct 2023

Concise views on global finance: The loss per car at the $45 bln automaker’s electric-vehicle unit has jumped 51% in a year. So-so earnings at the $1.2 trln e-commerce giant’s cloud division beat the even lower bar set by rival Alphabet.

EU-US steel unity may come at a high cost

19 Oct 2023

Europe could soon join the United States in whacking tariffs on other alloy producers. EU leaders and Joe Biden may want to shield firms like ArcelorMittal from Chinese imports. But helping the 130 bln euro industry could weaken global trade rules, and the bloc’s climate policy.

Capital Calls: BlackRock, Dollar General

13 Oct 2023

Concise views on global finance: Boss Larry Fink squares off with Uncle Sam; Dollar General bets on its ex-boss’s old magic.

Polish cereal showdown goes against the EU grain

4 Oct 2023

A spat over Ukraine’s grain exports is the latest blemish on the European Union’s fraught relationship with Poland, the bloc’s sixth largest economy and biggest net recipient of EU funds. If upcoming elections push Warsaw further from Brussels, both sides have much to lose.

Meta’s EU subscription looks suspiciously pricey

3 Oct 2023

The Instagram owner may allow Europeans to pay $14 a month to avoid ads. It’s hard to see many users signing up, and the price is far higher than Meta’s regional revenue per user. Regulators and courts, which effectively pushed for this outcome, may get a phantom solution.

EU regulators have tech giants in their sights

26 Sep 2023

Brussels is taking on the likes of Amazon and Apple with a slew of new rules aimed at curbing market dominance and taking back control over data. Former EU Commission economist Bertin Martens explains to The Exchange podcast how the industry giants could be forced to open up.

Irish listing rot is symptom of wider EU malaise

25 Sep 2023

Packaging giant Smurfit Kappa may follow CRH in ditching Dublin for the US. The exodus, along with other potential defectors, will erode over half of the $172 bln exchange’s value. Without meaty subsidies or a pan-EU capital market, global firms have little reason to stay.

Tariffs unfit to solve EU’s Chinese EV puzzle

13 Sep 2023

Ursula von der Leyen’s new anti-dumping investigation could result in punitive duties on China-made electric vehicles. But penalties are a bad fix for the EU’s green push. The bloc still needs the People’s Republic to help it phase out car pollution – and to buy Europe’s exports.

Lagarde can stop fretting about rising salaries

11 Sep 2023

The European Central Bank chief worries that consumer prices will stay high because wages are growing at the fastest rate in 30 years. Yet raises are below inflation and slowing. In the past, the ECB cut rates even with strong labour markets. It may have to do so again soon.

New boss will be EIB’s chance to stay relevant

7 Sep 2023

The European Investment Bank will soon appoint a successor to Werner Hoyer. Like peer the World Bank, it needs to find ways to take more risk with its 65 bln euros of annual lending and help the green transition. The challenge will be keeping member states and markets onside.

EU steps up lengthy attack on winner-take-all Tech

6 Sep 2023

The European Commission wants technology giants including Apple and Microsoft to give rivals more access to key services and data. It’s a serious push against Big Tech’s ability to dominate markets and squeeze out competitors. Legal battles and compliance challenges look certain.

Feel-good war on short flights misses the mark

4 Sep 2023

European states like Germany are mulling bans on air travel under a certain distance. Short-haul commercial flights make convenient climate scapegoats. But going after private jets, which can emit 45 times more carbon per passenger, would bring more benefit with less disruption.

Shady export leaks suggest Russian sanctions work

29 Aug 2023

A suspicious bump in European exports to countries like Kazakhstan may be helping Moscow evade Western bans. The G7 price cap on Putin’s oil is also porous. But these cracks are marginal and help demonstrate the embargoes’ effectiveness – and why they can be tightened.

EU members’ China cuddling weakens Brussels’ hand

16 Aug 2023

European Commission President Ursula von der Leyen wants to follow global peers and craft a common plan to manage economic ties with Beijing. Conflicting pressures from national capitals make that hard. Europe will struggle to find a policy that is both tough and trade-friendly.