ECB will allow inflation to exceed 2% for a ‘transitory period’

ECB will allow inflation to exceed 2% for a ‘transitory period’

Speaking after the first meeting of the Governing Council since the ECB presented its strategic review, President of the ECB Christine Lagarde announced that inflation may exceed the 2% target for a “transitory period”, but stabilise at 2% in the medium term. The strategic review has adopted what is called a symmetric inflation target of two per cent over the medium term. In the past, the central bank for the eurozone took a position that the target should never be overshot. The new flexibility which has received unanimous support, is…

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Slovenia rocked by Iran-related money laundering scandal

Slovenia rocked by Iran-related money laundering scandal

Slovenia’s state prosecutor has opened a preliminary investigation into claims that the country’s biggest state-owned bank, Nova Ljubljanska Banka (NLB), may have laundered nearly €1bn from Iran between 2008 and 2010, breaking an international embargo and failing to enforce rules on the financing of terrorism. Slovenian media reported in July that 40-50 transactions took place every day from NLB bank to more than 30,000 accounts around the world, including some clearly held in fake names, such as Donald Duck and Mickey Mouse. The allegations were not further elaborated until the…

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130 countries agree to global tax reform

130 countries agree to global tax reform

The world’s leading economies have struck a deal to revamp multinational corporate taxation that aims to dampen international tax rate competition. 130 nations and territories, including Luxembourg, have signed up to an OECD plan that requires multinational firms to pay a minimum tax rate of 15% worldwide, the OECD said on 1 July. The OECD, an international economic policy forum, estimated that this would raise $150bn in fresh tax revenue annually. The agreement would also “re-allocate some taxing rights” from companies’ home countries to the markets where they do business,…

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EE first UK Mobile operator to reintroduce roaming charges in Europe

EE first UK Mobile operator to reintroduce roaming charges in Europe

UK Mobile operator EE will charge new UK customers extra to use their mobile phones in Europe from January, the BBC reports. Those joining or upgrading from 7th July 2021 will be charged £2 a day to use their allowances in 47 European destinations from January 2022. EE, which is part of BT Group, previously said it had no plans to reintroduce roaming charges in Europe. It is the first UK operator to reintroduce the charges since the EU trade deal was signed in December. Since 2017, mobile networks in…

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Banks too involved in fossil fuels: study

Banks too involved in fossil fuels: study

A French study shows that the biggest European banks continue to support the fossil fuel sector. A double threat–climatic and financial–which, according to the study, could generate a financial crisis, similar to that of the subprimes. While the financial world swears by green finance, a French study shows that the largest banks in the euro zone still strongly support the fossil fuel sector, through credit products or investments. Commissioned by the Rousseau Institute, associated with environmental NGOs Reclaim Finance and Amis de la Terre, the “Fossil assets, the new subprimes?” study calculated that…

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Big countries’ tax deal to reveal rift in EU

Big countries’ tax deal to reveal rift in EU

A global deal on corporate tax looks set to bring to a climax a deep-seated European Union battle, pitting large members Germany, France and Italy against Ireland, Luxembourg and the Netherlands. Although the smaller EU partners at the centre of a years-long struggle over their favourable tax regimes, welcomed the Group of Seven deal on June 5. for a minimum corporate rate of at least 15%, some critics predict trouble implementing it. The European Commission, the EU’s executive, has long struggled to get agreement within the bloc on a common…

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Recovery plan analysis says EU will fall short of meeting 2030 digital targets

Recovery plan analysis says EU will fall short of meeting 2030 digital targets

An analysis of 12 recovery plans submitted by European Union member states seen by Leuropeennedebruxelles.com ahead of publication indicates that the investment proposed will see the bloc falling radically short of the digital targets it has set itself for the end of the decade. The analysis, conducted by consulting giant Deloitte and set to be published on 21 June, focuses on the recovery plans of 12 member states submitted to the European Commission in order to unlock funds from the bloc’s historic post-pandemic recovery fund. The study looks at to…

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Towards an EU market for clean hydrogen

Towards an EU market for clean hydrogen

Hydrogen today represents a tiny fraction of the energy mix but its importance is expected to grow rapidly in the coming years as the European Union aims to create a Europe-wide market for clean hydrogen to drive the decarbonisation of heavy industry. The price of clean hydrogen can be cut drastically by mid-century if the EU creates a dedicated market structure to develop the fuel, according to the industry. Environmental groups, meanwhile, are sceptical about the emergence of a hydrogen economy. “We need capital and operating expenditures … to bring…

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EU economy reaches landmark decision on multinational tax transparency

EU economy reaches landmark decision on multinational tax transparency

The EU’s co-legislators reached a provisional political agreement on the public country-by-country reporting (CBCR) directive, which will allow the public and tax authorities to see what taxes are being paid and where, but there’s a but. The new system will be limited to the EU countries and certain countries that are considered to be non-compliant with tax norms. “Corporate tax avoidance and aggressive tax-planning by big multinational companies are believed to deprive EU countries of more than €50 billion of revenue per year. Such practices are facilitated by the absence…

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ING posts 1Q2021 net result of €1,005 million

ING posts 1Q2021 net result of €1,005 million

1Q2021 result before tax of €1,463 million; capital position remains strong at 15.5% • Net interest income up on 4Q2020, supported by the benefit from TLTRO III, which more than offset liability margin pressure. • Robust growth in fee income of 9.1% year-on-year, especially on investment products. • 1Q2021 had a low level of risk costs. Expenses were under control, but included some incidental costs due to restructuring. Lending and customer deposits increase • Net core lending growth of €17.8 billion in 1Q2021 as TLTRO funds were applied to support…

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