The German economy will continue to experience muted growth in the near term, according to a country report by the International Monetary Fund (IMF). The IMF cited tighter financial conditions and an energy price shock as concerns, forecasting growth in Germany's gross domestic product to stay near zero in 2023 and average GDP growth to be less than 1% over the longer term. To support disinflation, the IMF recommended a moderate tightening of the fiscal instance in 2023. Over the medium term, the IMF said Germany may need to create more fiscal room for investment in its future.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
The UK government has refused to renegotiate the Brexit deal reached with the EU in February, dealing a blow to Northern Ireland's Democratic Unionist Party, which is campaigning to change the Windsor Framework. The DUP wants changes made to protect Northern Ireland's place in the UK, but James Cleverly, Foreign Secretary, said there would be no alterations to the deal. The DUP has urged voters in Thursday's local elections to support it in pushing the issue with the government. The result will also affect the crisis surrounding the lack of a functioning Northern Ireland Assembly for 15 months.
The United Nations has predicted economic growth of 2.3% in 2023, a 0.4 percentage point increase from its January forecast. However, compared to the average growth rate in the two decades prior to the pandemic, the figure remains low. The UN report also noted that for many developing countries, growth prospects were weakening "amid tightening credit conditions and rising costs of external financing". The US, European Union and China have seen some improvements, although the growth targets set in the 2030 Agenda for Sustainable Development were not met.
Assets worth €1.2bn ($1.3bn) owned by Russians held in Cyprus-registered companies have been frozen due to sanctions over the invasion of Ukraine, according to the Cypriot government; the assets were largely held in European Union credit institutions. The total amount frozen includes €105m already frozen by Cypriot banks. The move follows comments by the European Commissioner for Justice that Cyprus was behind other EU member states in terms of freezing Russian-owned assets.
Former Audi boss Rupert Stadler has admitted wrongdoing and apologised for his failure to keep rigged cars off the market following the "dieselgate" scandal. Stadler reached a plea deal that allows him to avoid jail time but requires him to pay €1.1m in settlement with prosecutors. Audi was among the automakers caught up in the emissions test cheating scandal which affected Volkswagen models and was uncovered in 2015. The group admitted to using illegal software to rig emissions tests in vehicles, leading to the recall of about 11 million cars fitted with the devices. The scandal has cost Volkswagen more than €30bn worldwide in settlements and buyback schemes.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
The European Union (EU) is seeking deeper ties with India amid pressures to reduce economic dependence on China. While Brussels is not looking to cut off ties with Beijing altogether, it intends to diversify its supply chains by reducing its reliance on China. This where India comes into play. During the first meeting of the EU-India Trade and Technology Council, the word “de-risk” was mentioned several times by both sides, indicating their shared goal to reduce economic dependence on China. The EU has plans to increase cooperation with India on quantum and high-performance computing while making their digital public services more compatible. "India has a population of 1.4 billion. So, we are an economy of scale, and the EU is an economy of skill — it's natural that these two power centers should come together," according to Swasti Rao, an associate fellow at the Indian government-funded think tank, the Manohar Parrikar Institute for Defense Studies and Analyses.
The UK is experiencing a shortage of labour in key sectors such as farming, hospitality and social care, causing some commentators to question why the country is importing labour from abroad when there are millions of people out of work. Some suggest their unwillingness to take up these opportunities comes down to benefits payments that allow them to live off the state, a situation that was never the purpose behind the welfare state. While everyone agrees that society needs a safety net to help those who genuinely need it, when there are families in which two or even three generations have never worked, there is clearly a problem. However, incentivising employment by linking benefits to work has had little success. Another suggested solution is to address educational deficits and upskill people so they are better equipped to take on the work that is available.
Governments need to take urgent action to prevent the world being harmed by rogue AI, according to OpenAI CEO Sam Altman. Altman cited fears that programmers could accidentally create a superintelligence that could destroy humanity, adding: "If this technology goes wrong, it can go quite wrong." Altman suggested powerful AI algorithms should be licensed and audited, with the aim of preventing them from developing capabilities such as self-replication, and that an international body similar to the International Atomic Energy Agency could be created to manage compliance. Such measures should be followed by enhanced privacy rules, Altman said.
UK Prime Minister Rishi Sunak has called for reform of the European Court of Human Rights (ECHR) to prevent future illegal migrant deportations being blocked “arbitrarily” in last-minute injunctions. Sunak met Siofra O’Leary, the court’s president, in Reykjavik to appeal for alterations to the court’s rules to prevent a repeat of the “opaque” rule 39 procedures, which in June 2020 saw a judge block the first deportation flight to Rwanda by the UK government at the eleventh hour. Sunak said that the UK had a record of “leading and being at the heart of these conversations” on ECHR change.
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
Carmaker Stellantis has warned the UK government that it may have to close its Ellesmere Port factory unless it renegotiates its Brexit deal with the EU to allow for the use of more non-UK parts in its vehicles and battery systems, according to a submission to parliament’s business committee. The company, which owns Vauxhall, faces additional costs as its electric vans will attract 10% tariffs when exported to the EU from next year because they will not contain enough locally sourced components.
The UK government should class cryptocurrencies as gambling instead of a financial service, the Treasury select committee has suggested. While calls have been made to regulate the industry more strictly, the committee's report stated that it would give the impression it is "safer than it is". Harriett Baldwin, the committee's chair, said cryptocurrency trading is more similar to gambling than a financial service. The report also criticised the government for the Royal Mint NFT and warned against expending public resources on supporting cryptoasset activities without a clear, beneficial use case.
Stellantis, which makes cars under brands including Vauxhall, Fiat, Citroen and Peugeot, has warned that Brexit trade rules threaten the UK's automotive sector. The company said it had invested in the UK because it was meeting the strict criteria of the post-Brexit trade deal. However, it is no longer able to meet new rules on where parts are sourced, causing costs to rocket. To cut costs, the firm plans to move production out of the UK unless rules are revised by December. In 2024, 45% of EV components must come from either the UK or the EU to qualify.
The creator of ChatGPT has warned of a "rogue" artificial intelligence that could cause massive harm unless governments intervene. OpenAI, the firm hailed for creating digital chatbots capable of fielding queries, has raised the fear of a "catastrophe", with commentators warning that computer software could accidentally create a malevolent superintelligence that could set about destroying humankind. Ahead of a hearing in the US, OpenAI founder Sam Altman said: "We, the field, the technology, the industry, cause significant harm to the world. If this technology goes wrong, it can go quite wrong."
A conversation on Allied Burden Sharing in Ukraine, between the CSIS Project on Prosperity and Development and the CSIS Europe, Russia, and Eurasia Program, has discussed the role of European partners in supporting Ukraine. While the US is the world's largest financier of foreign aid and military assistance for Ukraine, the country's European partners are contributing similar amounts on a per capita basis, with the US ranking tenth overall. European burden-sharing has also been substantial on energy and trade, with the continent suffering from vulnerability to global market dynamics and reductions in energy consumption, and potential trade disruption in areas such as food. To ensure Ukraine emerges victorious, the US and Europe will need to collectively carry these burdens.
US antitrust tsars Lina Khan and Jonathan Kanter are scaring corporate executives with their willingness to sue to block deals that promote rampant consolidation, according to the FT. The Federal Trade Commission’s recent decision to file a lawsuit to block Amgen's $28.3bn acquisition of Horizon Therapeutics surprised many in the industry. So far, mergers challenged or blocked by the duo (with the help of friendly regulators in the UK and EU) include Microsoft’s $75bn acquisition of gaming company Activision Blizzard, Lockheed Martin’s planned $4.4bn acquisition of US missile products supplier Aerojet Rocketdyne, and the $2.2bn merger of Penguin Random House and Simon & Schuster. The duo have said they will try to sue to block deals even if they know they might lose. Vince McMahon, the founder of World Wrestling Entertainment, relied on merchant bank Raine Group for strategic advice and its help in selling his company. Raine will earn $65m from the $21bn transaction.
Southern Europe is headed toward a summer of intense drought, with parts of the region already experiencing water shortages and farmers expecting the worst yields in decades. Climate change has contributed to multiple years of drought in the area, leading to a depletion of groundwater reserves. Struggling Spain is seeking EU assistance, with Agriculture Minister Luis Planas sending a letter on April 24 requesting the aid. France experienced its driest winter since 1959, while Portugal is already suffering the impact. Italy faces a 70% deficit in snow water reserves and a 40% shortage of soil moisture.
The G7 leaders are meeting in Hiroshima for their annual summit, which will focus heavily on the threat China’s economic coercion poses to the seven countries. The use of that coercion – punitive trade measures – has raised concern throughout Asia-Pacific and Europe, with some countries including Japan, Australia and South Korea having faced trade restrictions following disputes with Beijing over issues related to Taiwan and the origins of Covid-19. The G7 is reportedly preparing a statement of concern over such practices and may suggest ways to co-operate – but members are deeply divided over how to manage their business ties with China.
