Europe

The European Union wants to engage swiftly with the United States over President Donald Trump's planned tariffs, trade chief Maros Sefcovic said on Tuesday, while his boss Ursula von der Leyen stressed the bloc would protect its interests in negotiations, Reuters reported. Sefcovic, speaking before a meeting of EU ministers to debate trade and EU competitiveness, said he wanted "early engagement" and was awaiting confirmation of the appointment of Trump's pick for Commerce Secretary, financier Howard Lutnick.

European officials need to manage their expectations in diplomatic negotiations against a more volatile geopolitical environment, European Commission President Ursula von der Leyen said in reference to a possible trade war between the bloc and the U.S., the Wall Street Journal reported.

Central bank body the Bank for International Settlements has urged the likes of the Federal Reserve and European Central Bank to revamp the way they approach interest rate setting to avoid the collective failures that allowed inflation to soar after the pandemic, Reuters reported. Outgoing BIS chief Agustin Carstens used a speech almost five years to the day since COVID-19 shuttered the world economy to call for changes as part of "policy framework reviews" in both the U.S. and euro zone this year.

In the three years since Russia’s invasion of Ukraine ignited an energy crisis across Europe, the continent has transformed how it generates and stores power, the New York Times reported. Russian natural gas, long Europe’s energy lifeline, has been replaced with other sources, notably liquefied natural gas from the United States. Wind and solar power generation has leaped around 50 percent since 2021. New nuclear power plants are being planned across the continent. But Europe’s energy security remains fragile.

Just days after Spain’s economy was revealed to be far outpacing its peers, Pedro Sanchez’s government has a new message for voters: stop working so much, Bloomberg News reported. In a move that risks invoking international stereotypes about the Mediterranean lifestyle, the premier and his cabinet agreed on Tuesday that employees in the fourth-biggest member of the euro zone should now have a shorter week. The cap on hours will be 37.5 as of the start of next year, down from 40 at present, if the proposed law now passes through parliament.

Truckmaker Scania has stepped in to help Northvolt with the day-to-day running of its flagship plant in northern Sweden, a last-ditch effort to boost quality and output at the struggling electric vehicle battery maker as it scrambles to secure funds, Reuters reported. Since November, Scania has sent members of staff to Northvolt’s Ett plant in Skelleftea, 200 kilometres below the Arctic Circle, according to internal Northvolt documents reviewed by Reuters that outline Scania’s support strategy for the green tech player. The plant employs some 2,500 people.

Administrators of bankrupt Signa Prime Selection AG are preparing to launch the sale of the Vienna Park Hyatt and adjoining luxury retail premises, including Prada’s flagship store, Bloomberg News reported. Real estate investment bank Eastdil Secured LLC has been appointed to offer the properties that are expected to attract bids in the region of €350 million ($361 million) to €370 million, two people said, asking not to be identified as the process is not yet public.

German inflation remained elevated, reminding the European Central Bank that caution is still needed as it continues to lower interest rates, Bloomberg News reported. Consumer prices rose 2.8% from a year ago in January, matching December’s pace. The report follows weaker-than—anticipated figures earlier Friday from France, which prompted traders to ramp up bets on monetary loosening.

The euro zone's beleaguered manufacturing industry showed some signs of stabilisation at the start of the year as firms brushed off rising costs and the threat of U.S. tariffs to become more upbeat about the outlook, a survey showed. HCOB's final euro zone manufacturing Purchasing Managers' Index, compiled by S&P Global, climbed to 46.6 in January, ahead of a preliminary estimate for 46.1 and closer to the 50 mark separating growth from contraction.

Northvolt AB’s appointed bankruptcy lawyers in the U.S. have sent a letter to creditors in Sweden threatening legal action if they don’t return to the company funds seized by the country’s Enforcement Authority, according to Bloomberg News reported. The steps to recover claims “violate United States federal law and an order from the US Bankruptcy court,” Christopher T. Greco, a lawyer for Kirkland & Ellis LLP, wrote in the letter seen by newspaper Dagens Industri.