EU plans sweeping stress test of non-banks

European leaders have adopted the term "coalition of the willing" while convening to support Ukraine, a shift marked by irony given their previous inaction during the Iraq invasion. Despite meetings among 30 nations and promises of military aid, the coalition's effectiveness is undermined by insufficient troop commitments, funding challenges, and a lack of political will among European populations regarding troop deployments. Leaders should prioritize feasible initiatives such as aiding Ukraine in building its military and...

An exodus of educated Italians seeking better opportunities abroad is intensifying the economic challenges posed by an ageing labor force, according to Bank of Italy Governor Fabio Panetta. In 2024, nearly 191,000 people left Italy, with a significant portion being young, educated individuals, leading to a negative migration balance of skilled workers. Panetta emphasized the need for Italy to create attractive employment opportunities and suggested that legal immigration could help alleviate labor shortages in key...

The EU is set to launch an age verification app in July to enhance online protections for minors, aiming for stricter enforcement of existing regulations on platforms handling content for young users. This app will allow users to verify their age without revealing personal information and is part of a broader initiative leading to a digital identity wallet by 2026. EU tech chief Henna Virkkunen emphasized the need for social media companies to proactively implement...

SummaryBank of England governor Andrew Bailey urged the UK government to minimize the negative effects of Brexit by enhancing alignment with the EU, particularly in reducing non-tariff barriers in financial services to promote trade and economic growth. His comments followed Prime Minister Sir Keir Starmer's announcement of a "reset" deal with the EU aimed at cutting trade barriers. While acknowledging the challenges posed by Brexit, Bailey emphasized the benefits of increased openness in financial markets...

European countries are rapidly increasing their defense spending amid concerns that the U.S. may reduce weapon supplies, leading to a push for domestic arms manufacturing reliant on a robust steel industry. However, the EU faces challenges from global overcapacity and cheap steel imports, particularly from countries like Turkey and Egypt, exacerbated by U.S. tariffs and the need for compliance with strict emissions regulations. This situation threatens Europe's steel producers, essential for military supplies, raising fears...

SummaryMeetings between EU and US trade negotiators will proceed as planned next week, despite a US court ruling the legality of President Trump's tariff agenda. The EU is likely to maintain a 10 percent reciprocal tariff affecting around 70 percent of EU exports while also considering regulatory simplifications to accommodate US businesses. Experts caution that backing away from negotiations could escalate trade tensions, emphasizing the need to focus on resolving tariffs related to steel, aluminum,...