EU to build AI gigafactories in €20bn push to catch up with US and China

The EU is facing pressure to simplify a controversial supply chain law aimed at addressing environmental and human rights abuses, as Swedish MEP Jörgen Warborn argues for reducing the number of companies subject to compliance. While the European Commission has proposed raising the employee threshold for compliance from 500 to 1,000, Warborn suggests increasing it to 3,000 and eliminating mandatory climate transition plans. Amidst divisions among member states, including calls from France and Germany to...

Italians are voting in a referendum to shorten the residency requirement for citizenship from ten to five years for non-EU foreigners, a proposal opposed by Prime Minister Giorgia Meloni's rightwing government. If approved, this change could enable about half of Italy's 5.4 million foreign residents to apply for citizenship, aligning Italy's immigration rules with those of Germany and France. However, low voter turnout is expected, as Meloni's government encourages abstention, potentially preventing the referendum from...

France's high national debt poses a significant risk to its defense ambitions, as President Emmanuel Macron aims to increase military spending to 3-3.5% of GDP by 2030, doubling the budget to €100bn. However, lawmakers question the feasibility of this plan given the government's struggle to address its fiscal deficits, which are among the highest in Europe, alongside a debt-to-GDP ratio of 113%. Experts suggest a radical approach, including spending cuts and economic reforms, is essential,...

The gap between US and Eurozone borrowing costs has reached its widest since before the Covid-19 pandemic, exceeding 225 basis points after the European Central Bank (ECB) cut rates to 2%. As the Federal Reserve is expected to maintain its rates while the ECB may implement further cuts, the divergence is likely to increase, prompting criticism from Donald Trump towards Fed chair Jay Powell. Market expectations suggest that the interest rate gap could widen to...

The US import costs of steel and aluminium are projected to rise by over $100 billion following Donald Trump's recent tariff increase to 50%. This new levy, effective Wednesday, adds an estimated $52.6 billion annually to steel and aluminium costs, doubling previous forecasts. Analysts note that the complex tariff landscape complicates predictions for trade flow and price changes, while US manufacturers may need to raise prices by 2% to maintain profits amid rising costs, impacting...

EU countries have finalized revisions to air passenger rights after 12 years, increasing the delay threshold for compensation claims to four hours for short-haul flights and six hours for long-haul flights. Compensation for short-haul delays has been raised from €250 to €300, while long-haul compensation has been reduced from €600 to €500. The agreement also includes automating compensation forms and enhancing protections for passengers with disabilities, but has faced criticism for diluting the original proposals...