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Duties, Markets, Trump: Italy Stock Exchange News

by Lucas Fernandez – World Editor
written by Lucas Fernandez – World Editor

European Markets Show Modest Gains Amid Trade Uncertainty

European stock markets opened with a generally positive sentiment, with Milan’s FTSE MIB index showing a slight rise. The benchmark index was trading at 39,971 points, up 0.51%.

This modest uptick occurs against a backdrop of significant market concerns. Investors are closely monitoring potential shifts in U.S. commercial policies, particularly the possibility of new tariffs.Specifically, there is apprehension regarding the implementation of 30% duties on European Union goods, which could take effect as early as August 1st.

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Technology

EU Drops Digital Services Tax on Apple and Tech Companies

by Rachel Kim – Technology Editor
written by Rachel Kim – Technology Editor

EU Reverses Digital Services Tax Plans,Apple Spared

Table of Contents

The European Commission has reportedly abandoned its plans to implement a significant digital services tax on large technology companies,a move that woudl have notably impacted Apple.

A draft document obtained by Politico reveals that the proposed digital levy, intended to ensure fair contributions from digital giants, is absent from potential revenue sources for the EU’s next seven-year budget, commencing in 2028. This marks a notable shift from earlier considerations in May.

apple, a primary target of the now-scrapped proposal, has been under increasing regulatory pressure in Europe. The digital levy was designed to tax digital companies generating ample revenue from European users without a physical presence in EU member states.

Instead of the digital services tax, the Commission is now proposing three alternative levies: an EU-wide excise tax on tobacco products, a tax on discarded electrical and electronic equipment, and a corporate levy on large companies with annual EU turnover exceeding €50 million, such as Apple. These proposals require unanimous approval from all 27 EU member states.

The timing of this policy reversal is widely believed to be connected to ongoing transatlantic trade negotiations between the EU and the United States. The decision to withdraw the digital levy is seen as an effort to avoid jeopardizing these trade talks and to secure more favorable terms in a potential agreement.

The finalized proposal for the EU’s 2028-2035 budget is slated for publication on Wednesday, July 16. While the digital services tax is currently off the table,future trade discussions with the United States and ongoing Digital Markets Act enforcement actions will continue to influence the regulatory landscape for companies like Apple in the European Union.

Evergreen Insights: EU Digital Taxation

the concept of a digital services tax has been a global discussion point for years, aiming to address the tax challenges arising from the digitalization of the economy. Many countries have explored or implemented similar measures to ensure that multinational digital companies contribute thier fair share of taxes within the jurisdictions where they generate revenue. The european Union’s initial consideration of a digital services tax was part of a broader effort to modernize its tax system and create a more level playing field for businesses.

Frequently Asked Questions About the EU Digital services Tax

What was the proposed digital services tax?

The proposed digital services tax was a levy intended to be imposed on large digital companies that generate significant revenue from users within the European Union, regardless of their physical presence in member states.

Which companies would have been affected by the digital services tax?

The digital services tax was primarily aimed at large technology companies, including Apple, that derive substantial income from European users.

Why has the EU backed down on the digital services tax?

The EU appears to have reversed its plans for the digital services tax to avoid jeopardizing ongoing trade negotiations with the United states and to secure more favorable terms in a prospective trade agreement.

What are the proposed alternatives to the digital services tax?

The European Commission is now proposing three new levies: an EU-wide excise tax on tobacco products,a tax on discarded electrical and electronic equipment,and a corporate levy on large companies with annual EU turnover exceeding €50 million.

When will the EU’s budget proposals be finalized?

The finalized proposal for the EU’s 2028-2035 budget is scheduled to be published on Wednesday,July 16.

What are your thoughts on the EU’s decision to withdraw the digital services tax? Share your insights in the comments below or subscribe for more updates on global economic and regulatory news!

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World

EU Retaliatory Tariffs: Bourbon, Boeing, and US Trade at Risk

by Lucas Fernandez – World Editor
written by Lucas Fernandez – World Editor

This article discusses the escalating trade dispute between the european Union (EU) and the United States, especially in the context of potential new tariffs.Here’s a breakdown of the key points:

The Core conflict:

US Tariffs: The US, under President Trump, is threatening to impose 30% tariffs on EU goods starting August 1st. This is a significant escalation and has disrupted ongoing trade negotiations.
 EU Counter-Tariffs: In response, the EU has prepared a package of retaliatory tariffs.Initially proposed at €95 billion worth of US trade, this has been reduced to €72 billion after member states lobbied to remove certain products.

Key Developments and EU Actions:

EU’s Revised Counter-Tariff Package: The EU’s €72 billion package is a response to the US threats. It’s crucial to note that this is in addition to an existing €21 billion package of counter-tariffs on US soybeans, motorbikes, and orange juice, which is ready to be implemented if talks fail.
 Lobbying and Product Removals: Several EU member states have successfully lobbied to have specific products removed from the proposed counter-tariff lists. This includes:
US thoroughbred horses (lobbied by Ireland).
 US bourbon, wine, and dairy products (lobbied by Ireland, Italy, and France from the first set of proposed counter-tariffs).
The number of chemical and electrical products subject to tariffs has also been reduced.
 EU’s Goal: The EU is actively trying to restart trade talks with the US and reach an agreement before August 1st to prevent the US tariffs from coming into effect.
Diplomatic Efforts: EU trade officials are traveling to Washington for talks, and EU trade Commissioner Maros sefcovic is scheduled to speak with US Trade Representative Jamieson Greer.
 EU’s Concern: EU officials believe the threatened 30% US tariffs would “prohibit” future EU-US trade.

Background and Existing Tariffs:

Previous US Tariffs: European businesses are already facing 10% tariffs on imports into the US sence early April, with steel products and cars facing higher levies. Uncertainty: there’s still uncertainty about whether the White House will follow through on separate threats to raise tariffs on pharmaceuticals.

The Article’s Tone:

The article conveys a sense of urgency and concern from the EU’s viewpoint. They are actively trying to de-escalate the situation and avoid further damage to trade relations. The mention of “walking blindly into trouble” in one of the linked articles suggests a broader concern about market stability in the face of these trade disputes.

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World

European Commission Won’t Delay Implementation of AI Act

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

The AI Act’s rules will be implemented according to the schedule included in the legislation, Reuters reported Friday, citing comments at a press conference by Commission spokesperson Thomas Regnier.

“I’ve seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI Act,” Regnier said, according to the report. “Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause.”

The Commission will adhere to the deadlines in the AI Act, including the August 2025 implementation of obligations for general-purpose AI models and the August 2026 launch of obligations for high-risk models, Regnier said, per the report.

Some tech companies had urged the Commission to delay the implementation of the AI Act by years, saying they are concerned about its compliance cost and complexity, according to the report.

In a Friday post on LinkedIn that included a video with some of these remarks, Regnier also wrote that the Commission takes AI companies’ concerns “extremely seriously.”

Regnier added that the commission will address some of these concerns by preparing a Digital Simplification Omnibus package; discussing the timing for the implementation of a Code of Practice, with the end of the year being considered; and setting up an AI Act Serve Desk that will help companies and offer them clear guidance.

He also said in the post that the Commission wants to “provide everything our industry needs to make Europe a leader in AI: infrastructure, data, computing power, talent and, of course, clarity and legal certainty.”

It was reported Thursday (July 3) that some tech companies had cited the Commission’s delay in the publication of its Code of Practice as a reason why the implementation of the AI Act should be delayed.

The General-Purpose AI Code of Practicewhich is meant to help companies comply with the AI Act, was originally scheduled to be released in May but may now be delayed until the end of the year.

The AI Act came into force on Aug. 1, 2024, establishing the world’s first comprehensive regulatory framework for AI and setting new compliance standards for businesses worldwide, PYMNTS reported at the time.

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World

European companies advocate two-year postponement of AI Act

by Lucas Fernandez – World Editor
written by Lucas Fernandez – World Editor

EU AI Act Faces Delay Request From Major Firms

A group of prominent European corporations are urging the European Union to postpone the implementation of the AI Act. The request comes as the EU reconsiders crucial elements of the law, which is scheduled to take effect in August 2025.

Open Letter to the Commission

An open letter to European Commission President Ursula von der Leyen, signed by the heads of 44 leading European companies, asks for the AI Act to be delayed by two years, according to The Financial Times.

Among the signatories are chief executives from major players such as Airbus, Carrefour, Philips, and BNP Paribas.

The executives contend that the existing regulatory framework, characterized by intricate and overlapping regulations, endangers Europe’s competitive edge in the worldwide AI arena.

The letter cautions that these regulations may impede the advancement of European AI leaders and industries’ capacity to implement AI technology efficiently.

Concerns Over Strict Regulations

The AI Act, recognized as one of the world’s most stringent AI regulatory frameworks, has drawn criticism from European businesses, the US government, and major tech companies alike. As Statista reports, 56% of Europeans express concern that AI will steal their jobs (Statista 2024).

Ongoing discussions involve establishing a ‘code of practice’ to guide AI companies in complying with the Act. This code will impact advanced AI models like Google’s Gemini, Meta’s Llama, and OpenAI’s GPT-4.

The code’s release, originally planned for May 2025, has been pushed back, suggesting a potentially more lenient strategy.

Earlier in July 2025, EU technology chief Henna Virkkunen stated that the commission is finalizing the code of practice in preparation for the August 2025 deadline. “We will publish the code of practice before that to support our industry and SMEs to comply with our AI Act,” she was quoted by FT as saying.

Implementation Timeline

European Commission officials and member states are currently in talks to simplify the AI Act’s complex timeline. While the legislation took effect last August, many of its provisions are scheduled for implementation in the coming years.

The EU AI Champions Initiative, representing 110 companies across various sectors, organized the letter from European CEOs.

Separately, over 30 European AI startup founders and investors denounced the legislation as ‘a rushed ticking time bomb’ in another letter.

Their concerns revolve around the ambiguity in regulating general-purpose AI models. They fear that inconsistent rules across member states could favor well-funded US tech giants over smaller local businesses.

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World

As China, EU eye warmer ties, Brussels seeks to protect its crown jewel – manufacturing

by Lucas Fernandez – World Editor
written by Lucas Fernandez – World Editor

German Manufacturing Shows Signs of Life

But sector faces significant challenges despite recent gains.

A key indicator revealed promising news for German factories, hitting a 34-month high; however, the index still signals contraction, highlighting the difficult path to recovery for Europe’s leading manufacturing nation.

Key Development

The purchasing managers’ index for Germany’s manufacturing sector reached 49.0 in June. A reading below 50 indicates ongoing contraction in the sector, underscoring the struggles to revive growth. Despite the increase, the sector has not reached a point of expansion.

China’s Role

As this data emerged, Foreign Minister Wang Yi of China was engaged in a European tour, visiting Brussels, Berlin, and Paris. His trip precedes the upcoming China-EU summit, aimed at resolving trade disputes amidst shifting global trade dynamics influenced by the United States. Both sides are seeking stronger ties and resolutions to ongoing disagreements.

Analysts suggest that while closer ties between China and Europe are increasingly vital, a major factor influencing their relationship is Europe’s concern about China’s impact on its manufacturing strength. The EU considers its manufacturing prowess a crucial asset.

“Europe wants to rebuild its manufacturing sector, so it cannot afford to have a lot of cheap imports from China,” said Sacha Courtial, a researcher at the Institut Jacques Delors.

In May 2024, Germany’s exports to China declined by 1.8% compared to the previous year, signaling a complex trade relationship (Destatis).

EU Manufacturing Strength

The EU remains a significant manufacturing hub. Its net output reached US$2.72 trillion in 2024, on par with the US at US$2.91 trillion, though trailing behind China’s US$4.66 trillion, according to World Bank figures.

Future Outlook

For Europe, balancing the need for economic growth with the desire to protect its manufacturing sector presents a complex challenge in its relationship with China. The upcoming summit will be crucial in determining the future of these trade dynamics.

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