Berlin’s Defense Shake-Up
Germany is centralising military authority in a significant overhaul of its defense ministry, granting unprecedented power to its top general, Carsten Breuer. The move, detailed in a new organisational chart, is designed to slash through bureaucracy and accelerate the build-up of the Bundeswehr, Germany’s armed forces (Politico). This restructuring concentrates authority over military planning, procurement, and operations under a single commander, a direct response to years of sluggish modernization. For markets, this signals a more decisive push on defense spending, potentially streamlining contracts and creating clearer opportunities for European defense contractors. I see this as a pragmatic, if overdue, step to align Germany’s military posture with its economic weight.
UK Public Swings Toward EU Alignment
The British public is showing a clear preference for closer EU ties, with new polling indicating strong support for the Labour government’s proposed agri-food deal. The deal, which would realign UK food standards with the EU to ease trade friction, is backed by nearly two-thirds of voters, while only 22% are opposed (Politico). This sentiment undercuts the hard-Brexit narrative and provides Prime Minister Keir Starmer with a firm mandate to pursue a pragmatic economic reset with the continent. A durable deal would reduce non-tariff barriers, a persistent headache for exporters, and could be the first step toward unwinding other trade impediments, boosting confidence for investors on both sides of the Channel.
Germany Targets Google’s Dominance
Berlin is contemplating a direct regulatory assault on Google, with Culture Minister Wolfram Weimer proposing a special levy and the application of German press law to the tech giant’s operations (ZDF). The move aims to curb the company’s market power and rebalance the scales for traditional media publishers who have seen revenues evaporate. While experts question the immediate feasibility of placing a global tech platform under national press jurisdiction, the proposal underscores a hardening European stance. This initiative, if it gains traction, could set a precedent for other EU nations, creating significant regulatory and financial headwinds for major digital platforms.
Italy’s Gig Economy Underbelly
An investigation in Italy has exposed a brutal level of exploitation within the food delivery sector, where organised gangs, or caporali, are extorting migrant riders. These criminal networks are seizing up to 50% of riders’ earnings and selling falsified work profiles on platforms like Telegram for as much as €1,500 (Il Sole 24 Ore). Some irregular migrants are reportedly trapped in debts of €15,000 just to enter this system. This goes far beyond a debate over worker classification; it’s a market failure where the platform model’s vulnerabilities are being systematically exploited by organised crime. Expect calls for a severe regulatory crackdown that could reshape the gig economy’s operating premises.
Catch the next Gist for the continent’s moving pieces.
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