West is sleepwalking off healthcare cliff 17 Jul 2023 Europe is scrambling to end its reliance on Chinese raw materials for green energy and chips. But policymakers forget the region sources 80% of ingredients for top medicines in the East. Producing them at home may prevent a crisis but it risks exacerbating public debt piles.
European gas security rests on a fragile balance 14 Jul 2023 Mindful of last summer’s mad price rally, EU states have lots of the fossil fuel in storage. This, plus higher Chinese purchases, may keep European contracts below Asian ones. But that may prompt US cargoes of liquefied gas to head East, lifting European gas prices again.
History is against UK and Spanish telecoms M&A 12 Jul 2023 Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.
Watchdog with teeth can help EU hunt unicorns 11 Jul 2023 Europe’s companies need capital to grow. Yet the bloc’s share of global capital markets is just 9%. A patchwork of national rules stymies Brussels’ efforts to foster cross-border investment. Creating home-grown corporate stars requires a securities regulator with real powers.
Recycling fail exacerbates EU’s metals conundrum 7 Jul 2023 The bloc is likely to miss a target to double its use of recycled material by 2030. That’s especially short-sighted given the growing threat of Chinese export restrictions on critical metals. Improving Europe’s ability to mine junk would help shield key EU industries.
EU green finance standard may play second fiddle 3 Jul 2023 Sustainability-minded investors are flocking to climate disclosure plans set out by the ISSB, an accounting standards body. They already cover less than tough EU goals. Brussels believes its regulatory might will make its standards the norm, but global finance may well not.
Europe has more Russian lessons to learn 26 Jun 2023 Yevgeny Prigozhin’s failed mutiny rams home the EU’s need to protect itself from trouble abroad. Leaders meeting this week in Brussels are thinking in more geostrategic terms and may now agree a China policy. But until they act as a bloc they will lack clout, says Hugo Dixon.
Rebuilding Ukraine: how much and who pays? 22 Jun 2023 Talk of reconstruction may seem premature with Russia still firing missiles at Kyiv. Yet that’s what policymakers and financiers gathered in London this week to debate. In this Viewsroom podcast, Breakingviews columnists discuss the cost, the timetable, and who picks up the tab.
AI’s regulation naysayers protest too much 21 Jun 2023 Lawmakers in the European Union and elsewhere are scrambling to draft artificial intelligence rules. Industry leaders like OpenAI boss Sam Altman warn the approach is too onerous. Yet the risks of pandering to special pleading exceed the dangers of stifling a nascent industry.
EU phase-out of Huawei, ZTE is tricky but vital 20 Jun 2023 Commissioner Thierry Breton wants EU countries to end use of Chinese telecoms gear on national security grounds. Some states have already cut Huawei and ZTE from 5G networks. The EU survived decoupling from Russian energy, and it can manage this. But it requires German buy-in.
EU takes broad aim at ESG jungle 14 Jun 2023 Europe wants to rein in the industry for environmental, social and governance assessments by forcing firms to disclose their models and data. A plan to stop conflicts of interest may create compliance headaches. But more transparency and oversight should lead to better outcomes.
ECB’s autopilot raises risk of hard landing 14 Jun 2023 The European Central Bank is set to hike rates on Thursday and again in July. But traders’ hopes for cuts soon afterwards may be dashed, given pressure from hardline countries to tame stubborn inflation. Europe’s recovery is looking increasingly fragile.
Dutch chip export saga exposes EU shortcomings 13 Jun 2023 The Netherlands is limiting exports of high-end semiconductor gear to China, after a US push to curb Beijing’s AI and military prowess. While the EU will soon unveil a plan, it looks hard to strike the right power balance in the defense arena. Brussels needs a clearer role.
Stingy European savers will help the ECB, not LVMH 6 Jun 2023 Euro zone citizens have 1 trln euros in pandemic-era savings. Unlike their US peers, they are unlikely to splash the cash in malls and restaurants. That’s bad news for retailers and service providers, but it will help Frankfurt’s rate-setters slow the economy and cool inflation.
EU-UK clearing drama heads for prosaic finale 2 Jun 2023 The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.
ECB’s crisis tool works best if it’s never used 30 May 2023 The European Central Bank is touting its powers to buy sovereign bonds if they come under attack from the market. That has kept traders in check, so far. The trick for Frankfurt officials is to convincingly threaten to deploy emergency measures without ever having to.
AI speed benefits now apply to EU boycott U-turns 26 May 2023 On Wednesday Sam Altman threatened to quit Europe if it “over-regulates” his booming startup OpenAI. He’s now rapidly rowed back. As with their disruptive new technology, AI mavens may have a shrewder sense than older US peers of when to stop poking the Brussels bear.
Europe’s scramble to tame artificial intelligence 23 May 2023 Brussels is a step closer to unveiling regulation for the controversial technology. Dragoș Tudorache, a legislator in the European Parliament, helped write the law. In this Exchange podcast, he argues that the rules focus on the biggest risks while leaving room for innovation.
Supply chain scrutiny may upend EU solar ambitions 23 May 2023 Renewable groups must forgo photovoltaic components from China’s Xinjiang to comply with forced labour curbs. Yet the region produces 35% of the pure silicon needed in panels, and US firms are scooping up the non-Chinese supply. Enforcing a ban may scupper EU green targets.
Transatlantic tech-tax truce is on a knife edge 23 May 2023 EU-US spats over levies on the likes of Amazon have taken a breather while a global pact advances. But sabres are rattling, led by French Finance Minister Bruno Le Maire. Washington may well be patient with the pace of promised rollbacks, but any new levies would break the truce.