Mercedes chief warns EU and US tariffs fuel highest ‘complexity’ in three decades

The European Commission has imposed fines of €500 million on Apple and €200 million on Meta for violating competition and user choice regulations under the Digital Markets Act (DMA), marking the first penalties under this significant EU legislation. The DMA aims to promote fair business practices among tech companies and is expected to escalate tensions with the Trump administration, which has been critical of Europe's internet regulations. These actions highlight the EU's commitment to enforcing...

SummaryBusiness confidence in the Eurozone fell sharply in April, reaching its lowest level since November 2022, amidst rising trade tensions from Donald Trump's tariff announcements. The Hamburg Commercial Bank's composite Purchasing Managers' Index (PMI) dropped to 50.1, indicating stagnation, with Germany's PMI falling to 49.7, signaling contraction. The European Central Bank's continued interest rate cuts reflect the deteriorating economic outlook, compounded by a slowdown in the service sector, despite unexpected strength in manufacturing. Full Article

The EU has fined Apple €500 million and Meta €200 million for antitrust violations, while avoiding larger penalties to prevent escalating tensions with the US. Apple must revise its App Store rules, and Meta is required to change its "pay or consent" model that forces users to either consent to data tracking or pay for an ad-free experience. Despite the fines being significantly below the potential maximums under the Digital Markets Act, the EU aims...

The EU's "Danish Compromise" on bancassurance groups is causing regulatory challenges due to the difficulty in accurately consolidating banking and insurance accounts without distorting capital ratios. While the Basel Standards suggest a strict approach by deducting insurance equity from bank capital, the Danish Compromise allows banks to treat insurance subsidiaries as risk-weighted assets, leading to potential capital efficiency in acquisitions. However, this leniency is under scrutiny, as recent interpretations by the ECB indicate restrictions on...

For three generations, the Liebig family has built double-decker railcars in Görlitz, Germany, but the factory will soon produce components for military vehicles after defense contractor KNDS took over from Alstom, which shut down operations to cut costs. While KNDS plans to retain about 350 employees, Carsten Liebig, a retired train maker, laments the shift towards arms production amid Germany's deindustrialization, as the country experiences a surge in defense spending and a shift in skilled...

FT Alphaville has noted a lack of coverage on Eurostat compared to the Office for National Statistics, particularly regarding the UK's Labour Force Survey (LFS), which faced critical response rate drops, rendering it unreliable. Although Eurostat's quality report on the EU LFS from 2020 highlighted some issues, updates have not been provided since March 2022, and future reports for 2023 and 2024 remain unspecified. Consequently, Alphaville has decided to refrain from further coverage of Eurostat...