EUbusiness Week 662 top stories: EU to review policy priorities after vote setback; EU lays out energy plan, to reduce Russia dependence; Weak loans, money supply data turn up pressure on ECB; EU reaches compromise deal on GM crops: sources; European firms spooked by slowing China growth: survey; Prescription, synthetic drug abuse worry EU watchdog
Publisher’s Note
The report on Taxation of the Digital Economy, released by an EU expert group on 28 May, sets a stiff challenge for governments and their tax systems: how to balance the need to encourage a vital sector of Europe’s economy against the state’s instinct to crack down on tax avoidance and evasion.
The report, instigated by EU leaders as a response to the challenges of taxing online business, urges a united EU approach to tackling tax evasion for administrations struggling to adapt to the online world. But the race for jobs and growth should remind governments of the risk of stifling opportunities for entrepreneurs. A fast and growing digital sector is crucial to prospects for the European ecomomy.
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Regards,
Nick Prag
Publisher, EUbusiness
1. EU to review policy priorities after vote setback
European Union leaders agreed Tuesday to take a fresh look at the bloc’s policy priorities, after the stinging vote setback across Europe that saw dramatic gains by radical anti-establishment parties.
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EU needs to re-invent itself after poll shock
Results of the 2014 European elections by country
2. EU lays out energy plan, to reduce Russia dependence
The Commission has laid out plans to cut the EU’s costly reliance on energy imports, especially from Russia which has threatened to halt gas supplies to Ukraine, a key transit point for Europe.
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New Ukraine, EU, Russia gas talks in Berlin Friday
China gas deal ‘symbolic victory’ for Russia
3. Weak loans, money supply data turn up pressure on ECB
Slowing money supply growth and declining loans to the private sector will add to pressure on the European Central Bank to ease policy next month, say analysts.
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Biggest banks to pay up to EUR 15m for ECB supervision
4. EU reaches compromise deal on GM crops: sources
After years of fractious talks, Member States have finally reached a compromise to allow cultivation of genetically modified (GM) food crops by giving their opponents an opt out, accotfing to official sources.
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5. European firms spooked by slowing China growth: survey
European businesses fear the “good times are over” in China, a survey showed Thursday, citing the country’s slowing economic growth, rising labour costs, falling profits, regulatory hurdles and pollution.
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6. Prescription, synthetic drug abuse worry EU watchdog
While heroin use in Europe is declining, ever more people are getting their fix from prescription drugs, including some used to treat heroin addiction, a report said on Tuesday.
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Inside the EU Institutions
Council Watch
Euro-elections: German Chancellor Angela Merkel headed the charge against eurosceptics and the far-right Monday after France’s National Front and Britain’s UKIP led anti-EU parties in a stinging rebuke for Brussels.
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Poland floats Sikorski for EU foreign policy chief
EU extends Syria economic sanctions until June 2015
EU calls on Russia to work with new Ukraine president
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Commission Watch
Russia gas: Russia and Ukraine have a “good chance” of striking a deal to resolve a stand-off over Russian gas deliveries to Ukraine by June 1, European Energy Commissioner Guenther Oettinger said on Monday.
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Estonia pitches ex-PM Ansip for Commission
Centre-right EPP claims right to head Commission: Juncker
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Parliament Watch
Le Pen: fresh from victory in European elections in France, far-right leader Marine Le Pen said Wednesday she was confident of creating a new eurosceptic group within weeks inside the European Parliament.
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Britain’s Farage blasts ‘business as usual’ in Brussels
Sinn Fein MEP win sends ‘message’ to Irish government
With the elections over, many of the newly-elected MEPs are coming together to form or join transnational political groups on the basis of political affinities. Political groups enjoy certain advantages, but to be recognised as a group, they need to meet some requirements. The official political groups forming the Parliament should be created by late June in time for the first plenary session on 1 July.
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EU diary
2 Jun: Commission presents 2014 Country-Specific Recommendations
4 Jun: Commission reports on countries’ readiness to adopt the euro
4-5 Jun: G7 summit in Brussels
5-6 Jun: Transport, Telecommunications & Energy Council
5-6 Jun: Justice and Home Affairs Council
The Week Ahead
Long-term diary
Other news on EUbusiness this week
EU vote may complicate US ties: analysts 29-May
Cyprus bank deposits rise, but only with non-EU inflows 28-May
EU clears Telefonica’s Irish sale to Ka-shing 28-May
Ukraine moves step closer to visa-free EU travel 27-May
