The European Central Bank held its deposit rate at 2% for a third consecutive meeting on 30 April, but a Bloomberg survey of economists now sees two summer rate hikes as the Iran war drives eurozone headline inflation toward a projected 2.6% in 2026.
The European Parliament prepares to vote on the EU’s toughest steel trade defence in eight years: a 50% out-of-quota duty, a 47% cut in tariff-free import volumes and a Melt and Pour traceability requirement, set to enter force on 1 July 2026.
The European Parliament opens its Strasbourg hemicycle to the public on Sunday 17 May 2026 for the institution’s flagship Open Day, with a full civic and cultural programme designed to bring citizens face-to-face with the work of MEPs.
EU co-legislators struck a deal in the early hours of 7 May 2026 on the AI Act Digital Omnibus, postponing high-risk AI obligations from 2 August 2026 to 2 December 2027 and adding a prohibition on AI nudification apps and AI-generated child sexual abuse material. Co-rapporteurs Kokalari and McNamara framed it as ‘simplification without weakening safety’.
As the Iran war drags into its third month, the European Union is being forced to confront a question it has spent two decades avoiding: what is Europe’s defence doctrine when the United States is preoccupied elsewhere? The June FAC and the autumn European Council must move beyond the rhetoric of strategic autonomy to deliver something operational.
UK Health Secretary Wes Streeting is expected to resign on Thursday 14 May 2026 to mount a Labour leadership challenge against Sir Keir Starmer, after 93 Labour MPs publicly called for the Prime Minister to step down. The political turbulence overshadows the King’s Speech and arrives amid acute gilt-market pressure.
Industrial production in the euro area rose 0.2% in March and 0.8% in the EU compared with February, according to Eurostat data published on 13 May. The annual comparison remains firmly negative, with output down 2.1% in the euro area and 1.0% in the EU, reflecting the cumulative impact of the Iran energy shock on European manufacturing.
Burberry published its full-year FY26 results on Thursday 14 May 2026. Consensus expected revenue of around £2.43 billion (down 1% YoY), operating profit £96m and EPS 20.14p. Investors scrutinise progress under Joshua Schulman’s ‘Burberry Forward’ turnaround, which has involved up to 1,700 job cuts.
The European External Action Service watches with unease as Trump and Xi open a two-day summit in Beijing on Thursday 14 May 2026, with Brussels concerned about US softening on Taiwan and a possible bilateral deal on Iran and the Strait of Hormuz.
MEPs prepare measures to counter global steel overcapacity flooding European markets, as the bloc’s manufacturers warn of plant closures and structural damage to industry.
Swiss pharmaceutical giant Roche has secured European regulatory approval for the first blood-based Alzheimer’s diagnostic test, signalling a shift in early dementia detection.
EU defence ministers met this week to discuss reinforced military support for Ukraine and EU defence readiness as Middle East conflict reshapes the security landscape.
Why the European Central Bank’s most difficult challenge in 2026 may be holding the line against a premature reaction to a supply-side energy shock.
Reflections on why the European Union must build a coherent, enduring defence doctrine rather than a reactive set of measures driven by today’s headlines.
Italian Prime Minister Giorgia Meloni’s diplomatic tour reinforces ties with Gulf states amid concerns over freedom of navigation in the Strait of Hormuz.
Berlin announces a new active cyberdefence framework, allowing security agencies more proactive responses to attacks on critical infrastructure.
The Council adopts a decision concluding a Passenger Name Record agreement with Iceland aimed at preventing terrorist offences and serious cross-border crime.
A new Commission report finds uneven enforcement of the 2009 Employers Sanctions Directive and recommends targeted reforms to protect labour standards.
Preliminary data shows the eurozone economy expanded by just 0.1% in the first quarter of 2026 as Middle East energy shock hampers consumption and investment.
Headline inflation in the eurozone reached 3.0% in April as Middle East energy shock filters through to prices, complicating the ECB’s path forward.
