Reeves’s tractor tax plan in disarray as supermarket giants hit out at chancellor

Brussels is contemplating using funds from an upcoming carbon tax on petrol and home heating to address a €30bn annual budget shortfall, despite strong opposition from member states like France and Poland. The tax, set to begin in 2027, could generate €705bn by 2035, but fears of rising costs may reignite public protests, complicating the EU's financial strategies. Need More Context? 🔎

The EU has decided against holding the EU-China High-Level Economic and Trade Dialogue before the leaders' summit in July, citing unresolved trade disputes, including tariffs and market access issues. This decision highlights ongoing tensions, especially as China faces criticism for its export restrictions and the summit will be attended by Premier Li Qiang instead of President Xi Jinping, seen as a diplomatic snub. Need More Context? 🔎

Austria has suggested that the EU should consider resuming Russian gas imports if a peace deal is reached regarding the Ukraine conflict, marking a notable stance among member states. The European Commission plans to propose a ban on new and existing gas contracts with Russia, emphasizing that returning to Russian gas would financially support the Kremlin and undermine sanctions efforts. Need More Context? 🔎

US President Donald Trump left the G7 summit early, citing Middle Eastern issues, and avoided new sanctions on Russia, while European leaders discussed trade agreements. Former EU Commission President Jean-Claude Juncker defended his freeze on EU enlargement, emphasizing the need for a new approach to candidate countries, amid ongoing tensions regarding Hungary's controversial retail tax. Need More Context? 🔎

Spotify founder Daniel Ek is spearheading a €600 million investment in the German defence tech start-up Helsing, raising its valuation to €12 billion amid increasing global military spending due to geopolitical tensions. Helsing, which is expanding from AI software to creating drones and submarines, has now raised a total of €1.37 billion and aims to go public in the future. Need More Context? 🔎

Former European Commission chief Jean-Claude Juncker criticized his successor Ursula von der Leyen for not personally addressing Donald Trump's trade war, emphasizing that active engagement is essential for a successful deal. He noted that while Trump's hostility is more pronounced now, effective strategies, such as targeted negotiations and respect, are crucial to manage the ongoing trade tensions, which have escalated with the threat of new tariffs on EU imports. More Context