German lawmakers approved a measure on Thursday that will allow the government to throw a lifeline to companies struggling with the record-high price of gas and with cuts in supplies from Russia, the New York Times reported. The law, passed in the lower house of Parliament, is part of a wider package that aims to help Germany maintain the security of its natural gas supply as it faces shortages connected to Russia’s invasion of Ukraine. Last month, Russia cut the amount of gas delivered to Germany via the Nord Stream 1 pipeline, a major conduit, by 60 percent.

Hundreds of SAS flights were canceled on Thursday as the airline wrestled with a strike by pilots at its main SAS Scandinavia arm, overshadowing a traffic surge during June, Reuters reported. Talks between the airline and pilots over a new collective bargaining agreement collapsed on Monday, prompting a strike which adds to travel chaos in Europe and deepens the financial crisis at SAS, which estimated it would ground half its flights. The troubled airline, whose biggest owners are the Swedish and the Danish states, filed for chapter 11 bankruptcy protection in the United States on Tuesday.

Germany is set to ditch its plan to return to strict borrowing limits next year if Russia stops natural gas deliveries to Europe’s largest economy for good, Bloomberg News reported. While Finance Minister Christian Lindner has argued that Germany and its euro zone peers must scale back public debt from 2023 to avoid the risk that more deficit spending could fuel historically high inflation, the governing consensus may be shifting.

Poland's central bank raised its main interest rate by 50 basis points to 6.50% on Thursday, it said, delivering a hike below analysts' estimates as it balances the risks of an economic slowdown against surging inflation, Reuters reported. Some economists think Poland could tip into technical recession this year, but with inflation running hot most say further tightening is inescapable. "I believe that it is a very sensible decision from the MPC," said Piotr Bujak, chief economist at PKO BP.

Boris Johnson said Thursday that he would step down as British prime minister, following a wide-scale rebellion in his party, the Wall Street Journal reported. The step bookends an extraordinary 36 hours in British politics in which more than 50 ministers and senior government aides resigned, leaving the British government in a state of paralysis. Mr. Johnson said he would appoint a new cabinet as he stays in office until a successor has been found, a process that could take some months.

The French government will nationalize its financially-struggling nuclear giant Electricite de France SA to help it ride out Europe’s worst energy crisis in a generation, Bloomberg News reported. “The climate emergency requires strong, radical decisions. We need to have full control of the production and our energy future. We must ensure our sovereignty faced with the consequences of the war and the colossal challenges ahead,” Prime Minister Elisabeth Borne said during her policy speech in parliament in Paris on Wednesday.

Power prices in Europe surged on fears that Germany may soon start to limit gas-fired generation and concerns about limited availability of Electricite de France SA’s nuclear fleet, Bloomberg News reported. The German parliament will vote on legislation on Thursday allowing the government to curtail generation from gas plants not deemed to be essential for security of supply to conserve fuel. EDF warned this week that it may have to reduce output at some of its French nuclear reactors during the summer as a drought reduces the amount of river water available for cooling.

British finance minister Rishi Sunak resigned on Tuesday, saying he had reluctantly come to the conclusion that "we cannot continue like this," Reuters reported. "The public rightly expect government to be conducted properly, competently and seriously. I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning," he said on Twitter.

Rising interest rates in Europe are making investors worry about an old ghost haunting Italy’s banks: the “doom loop,” the Wall Street Journal reported. The European Central Bank is expected to unveil a special bond buying program later this month to shield highly indebted eurozone economies—and their banks—from rising borrowing costs. The “anti-fragmentation” program is a response to a widening of bond yields in Italy in particular and a punishing selloff in bank stocks in the eurozone’s third largest economy.

Telecom Italia (TIM) is looking to fetch a valuation of at least 25 billion euros ($26 billion) including debt for its grid under a plan to separate its fixed-line assets from its services arm, Reuters reported. The price tag is closer to the 31 billion euro figure sought by TIM's top shareholder Vivendi in any potential network deal than initial estimates provided by two sources in line with analysts estimates. In May sources had told Reuters TIM has started looking at a valuation of around 20 billion euros, including debt and before any synergies, in a potential network deal.