EU’s AI ambitions may fail on two fronts 8 Feb 2024 Brussels wants to set the global standard for artificial intelligence rules while helping Europe’s most promising startups to thrive. But its AI Act may be too fussy for others to copy, even as risks remain. And it will do little to help local champions take on US tech giants.
EU ‘Italian Job’ starts with winning over citizens 6 Feb 2024 Former premiers Mario Draghi and Enrico Letta are studying how to boost the bloc’s competitiveness. Europe’s single market needs to adapt to global shifts in trade, energy, and industrial policy. But any overhaul will depend on persuading voters that the EU benefits them, too.
Red Sea delays are no panacea for European EVs 5 Feb 2024 Suez Canal blockages mean Chinese electric vehicles take longer to get to Europe. But these don’t look bad enough to close the price gap with EU rivals. The most likely upshot is a slower rate of domestic EV adoption, rather than a change in the competitive pecking order.
Budget deal leaves EU isolated in Ukraine aid push 2 Feb 2024 The EU avoided a crisis by salvaging its 50 bln euro funding plan for Kyiv after Hungarian strongman Viktor Orbán fell in line. Europe is, however, isolated in its drive to support Ukraine, as long as a $61 bln similar aid package is stalled in the US Congress.
ECB is battling an imaginary wage spiral 24 Jan 2024 European Central Bank President Christine Lagarde is set to hold rates this week because she fears rising salaries will boost inflation. Yet euro zone workers are getting raises of just 3.8%, down from a year ago. Frankfurt may not want to cheer bigger pay, but it can ignore it.
It will take more than Draghi to boost EU growth 22 Jan 2024 Europe can’t decide if it will be more competitive with open markets or heavily protected national champions, and it wants Mario Draghi to pick. Italy’s former PM is more likely to reflect than resolve tensions among members. But the bloc can’t up its game behind closed doors.
Time for EU to assist its solar panel industry 17 Jan 2024 Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.
Poland’s path to euro will be long and arduous 16 Jan 2024 New Prime Minister Donald Tusk wants to bring his country closer to the EU. As the co-author of an old plan to strengthen the monetary union, he might be expected to apply to join the single currency. Politics and economics make this a long-term goal at best.
The spectre of Donald Trump hangs over Davos 12 Jan 2024 The former US president is not among the 2,800 business and political leaders converging on the Swiss resort. But his possible return to power will pervade debates about Ukraine, China, and climate change. In 2016, Davos laughed off the idea of a Trump presidency. Not this time.
EU hitches anti-Orbán plot to Draghi trial balloon 9 Jan 2024 European Council chief Charles Michel’s decision to leave early means Hungary’s Viktor Orbán could take charge of leaders’ meetings and represent them in high-profile summits. Doing whatever it takes to fill the void, even tapping Italy’s former PM for a short time, makes sense.
Bond deluge will nudge ECB to softer rate stance 4 Jan 2024 European countries’ fiscal needs and the end of central bank buying mean a record 675 bln euros of sovereign debt will be on sale in 2024. That may keep borrowing costs high for states like Italy. ECB President Christine Lagarde can help by meeting investor hopes for swift cuts.
Green backlash will spread to European Parliament 3 Jan 2024 Pro-environment parties risk losing clout in June’s pan-EU vote. That will reinforce a strengthening bond between conservatives and far-right forces wary of the industrial and social cost of the clean transition. The EU’s ambitious Green Deal will get a paler hue.
EU tech rules will create clicks, not competition 27 Dec 2023 Brussels wants to force Google, Meta and Apple to open up app stores, messaging networks and search engines. The US giants will have to let startups compete and offer consumers more opt-outs. It’s likely to result in lawsuits and hassle for users rather than rivals for Big Tech.
Western support for Ukraine will wobble – but hold 22 Dec 2023 Foreign donors have given $66 bln in fiscal aid to the country since Russia’s invasion. A prolonged conflict will test the US and Europe’s solidarity with Kyiv. But allies will keep backing President Volodymyr Zelenskiy once they consider what will happen if they don’t.
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.
Price of Illumina’s Grail fail extends to board 19 Dec 2023 The gene-sequencing company finally conceded to selling the cancer-testing business it bought without regulatory approval for $7.1 bln. Its bravado will be costly, as Grail’s value has plummeted. Boss Francis deSouza already paid with his job; directors deserve to, as well.
Adobe paints brighter future without Figma 18 Dec 2023 Unwilling to fight trustbusters, the design-software giant ditched its $20 bln deal. Since agreeing to pay the inflated price, its own AI plans have wowed investors. Even so, the hype is a bit overdone and its target now gets an extra $1 bln to sketch out new ways to compete.
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.
Policymakers take divergent paths toward rate exit 14 Dec 2023 Central banks in Europe and the US left borrowing costs untouched this week. But the latter went a step further and unexpectedly promised cuts. In this Viewsroom podcast, Breakingviews columnists explain how ratesetters, who were slow to tackle inflation, could be laggards again.
Powell was pragmatic; Lagarde will have to be 14 Dec 2023 The European Central Bank, like the US Federal Reserve, left its rates unchanged. But unlike Fed Chair Jay Powell, ECB boss Christine Lagarde didn’t imply that lower inflation meant looser monetary policy. A slowing economy and abating price pressures will push her there in 2024.