Portugal introduces protection clause of EU budget due to energy crisis

Portugal, with the permission of Brussels’, will activate the protection clause of the European Union (EU) budget rules. This will allow the country to temporarily bear the additional energy-related costs resulting from the current crisis, without being seen as a violation.

According to Lusa’, Finance Minister Joaquim Miranda Sarmento, the “Commission understands that it must now create an exemption clause, as in the defense spending rules, and is in demand in many countries. We support this decision and will enact this clause just as we did for the defense, ” said.

When Joaquim Miranda Sarmento arrived at the Eurogroup meeting in ’, Luxembourg, she told Portuguese journalists that Portugal, according to data from the International Monetary Fund (IMF) and the European Commission, ’ was the fifth country in the European Union that provided the most support in proportion to Gross Domestic Product (GDP) in ’.

He added that this situation allows the country to maintain and even increase these support measures, depending on how the conflict in Iran’, triggered by the Israeli and US ’'s attacks, develops.

Portugal therefore plans to take advantage of AB’'s temporary exemption so that it can increase public spending beyond what was originally planned, without being seen as a violation of the European bloc's budget rules. This measure comes on top of another resilience mechanism already in place to cover defense spending.

“Current crisis 2022Different from ’

According to Joaquim Miranda Sarmento’, the current crisis 2022 is different from the crisis in ’. The European Central Bank (ECB) in response to the inflationary pressures caused by the war in the Middle East, ’ argued that the interest rate increase is absolutely not necessary, and the ECB commented on ’'s decision.

According to Lusa’, the Minister of Finance, “Naturally, there is a concern on the part of the European Central Bank. The ECB, which played a crucial role in the 2022 ’ [previous energy crisis], has decided to give the market this first signal, but we will see in the coming months. He could have avoided sending this signal, and I maintain my view that this is absolutely not necessary, but naturally I respect the authority and independence of ECB’, ” said.

“The European Central Bank has already decided to raise interest rates, but we are in a very different situation both in terms of inflation and in terms of Central Bank interest rates, ” added.

Le Havre: 38,000 fake trainers destroyed after 15 years of trial

In 2011, about 38,000 pairs of fake sneakers from ’, China, were waiting for their fate in boxes hidden in a secret location in Le Havre’de. Because behind these shoes lies one of the longest legal proceedings that customs officers have ever had to deal with.

After fifteen years of legal strife, the French importer was finally sentenced to a customs fine of 1.56m euros in December 2025’te, 260,000 euros for customs-related money laundering, and also three years in prison, two of which were postponed.

Customs officers at Le Havre’ can therefore finally turn the page and make some room in their warehouse!

One of the pairs of fake sneakers removed from the box

According to Anthony’, a customs officer working on this site, counterfeiting This is a real problem, a real trouble, because any product can be counterfeited. Luxury products, especially those produced by major French brands, but also everyday consumer products, soaps, shampoos and, above all, toys that are quite popular and can be imitated almost instantly..

Should these crops be destroyed, or could they be given a second life?

FranceThe seizure of counterfeit goods at ’'s main container port, Le Havre’de, is nonetheless commonplace. Shoes, clothes, toys, tech products and even car parts: Everything can be copied and sold at a high price.

More than 20 million counterfeit products were seized in ’, France last year; About 1.2 million of them were in Le Havre’. It's a highly lucrative trade that's attracting more and more organized crime networks.

There is no hesitation about customs: These goods may not be resold or redistributed. The law forbids it. Once captured, they are systematically destroyed to prevent them from re-entering commercial circulation.

This debate regularly resurfaces: On the one hand, the destruction of thousands of pairs of shoes surprises or angers those who see this as a huge waste in the face of difficulties; On the other hand, customs officials point out that these counterfeit products, which often fail to meet safety standards, may contain toxic or dangerous substances.

Trainers after shredding

The destruction operation was carried out on June 3 in the port city of ’, at a specialist center under the customs contract.

Not long after, two mobile cranes grabbed the shoes, crushed them with their claws, and then threw them into the shredder. Fragmented parts thrown out of the other end will then be burned or recycled.

District manager Stéphane PetersonAccording to ’ The UNIFER EnvironmentResponsible for these operations This pile of waste at the end of the process can have more than one destination; in this particular case, it will be recovered through incineration carried out in cooperation with a local partner. In other cases, we can also process such residues to produce solid fuel, an extremely high-calorie material that will feed boilers, mostly in cement factories..

An unexpected fate of these shoes from China’: After fifteen years of waiting, their last stop was neither a store nor a wardrobe. became an industrial shredder.

China Shock 2.0: Beijing targets German industry as it looks at Berlin’e

Germany's economy has been struggling with weak growth for years. In economic policy debates, this is attributed above all to high costs, lack of innovation, and structural problems that have accumulated over many years.

Many economists think that the real need for reform is within the country. For example, Clemens Fuest, president of Ifo, calls on the federal government, as he himself said. the Capital City ,implement far-reaching changes to encourage investment, foster innovation and create new momentum for growth. What is needed, according to Fuest’, is “Germany, a comprehensive strategy on how ’ can achieve stronger growth in the long run.

A new study challenges this prevalent view, at least in part. Economists Sander Tordoir and Brad Setser of the British think tank “European Reform Centre, ”China shock 2.0 “ GermanyThe cost of –'s indifference Under the title ’, Germany”'s economic weakness is mainly due to pressure from Chinese industry. They say Chinese companies are becoming increasingly dominant in key markets and are able to push European ​​ competitors aside.

China has achieved a particularly strong position in areas such as raw materials, rare earth elements and basic chemical inputs for the pharmaceutical industry in recent years. The same applies to future-oriented industries such as semiconductors, robotics, batteries and electronics. Electric Vehicles (Electric Vehicles. In the opinion of the authors, China now dominates most of these markets both technologically and economically.

This development is especially evident in the automotive sector. Since the end of the coronavirus pandemic, Chinese manufacturers have significantly strengthened their position in the global market. According to Tordoir and Setser’, this is a sign of how quickly industrial power balances can change and potentially have serious consequences for traditional manufacturing centers.

China’in exports are increasing

The authors expect that European ​​ companies will continue to lose market share not only in international markets but also in Europe ’ in the coming years. For example, they show ’'s solar energy sector, Germany, which was once a global showcase industry and is now almost extinct. The decline of industrial centers in ’ in the 2000s also serves as a warning to them about what might happen in the industrial areas of ’ in Germany.

While many economists predominantly criticize high labor costs, bureaucracy and lack of competition, Tordoir and Setser see the main cause of the problems in China’'s targeted economic and industrial policy. Through market barriers, comprehensive government support, strategic control of raw materials and direct economic policy interventions, People of ChinaIt has provided significant benefits to their companies.

According to the research, the results are already clearly visible. China’in exports have recently grown much stronger than global trade in general, while Germany has been declining in business with China since 2023’. According to the authors, this has a significant impact on industrial value creation and employment.

Tordoir and Setser make concrete policy recommendations based on their analysis. They are advocating stronger protective measures against Chinese competition. These include higher import tariffs in sensitive industrial sectors, higher priority on European products, and stricter requirements for Chinese companies looking to produce in Europe’. They also think that the rules of the joint venture modeled on China’i are plausible.

Germany renounces China ’'s tough stance

Germany has so far reacted cautiously to such proposals. The reasons for this include close economic ties with China and concerns about possible retaliation. At the same time, Europe remains dependent on Chinese supply in key areas such as critical raw materials and industrial intermediates.

Minister of Economy in order to strengthen economic relations between Germany and Beijing Katherina Reiche(CDU) will travel to China’e in person this week. He will be accompanied by a delegation of about 40 business representatives who want to explore potential cooperation projects.

Disappointment is also growing within the European Union: France, Spain, Italy, the Netherlands and Lithuania are calling for an unofficial opinion document calling for a tougher response to ’'s commercial practices. Germany did not participate in this initiative. In March, Chancellor Friedrich Merz (CDU) called for a trade agreement with Beijing. Brussels rejected the idea.

French luxury retailer Galeries Lafayette closes its store in Beijing’ 13 years after its opening

French luxury store Galeries Lafayette, China, closed its first flagship store in ’ on Wednesday (May 27th), thirteen years after its opening. The retailer cited falling sales in recent years as the reason for its closure.

While the luxury market experienced strong growth in the middle of the 2010’s, especially thanks to the rise of the middle class, the Covid-19 pandemic and the real estate crisis in China’ became a turning point that suddenly stopped domestic consumption of China’, forcing the industry to adapt to new economic realities.

“ChinaWe have been seeing growth in the luxury industry in ’ for ten years. Over the years, the Chinese consumer has matured greatly. Now they understand luxury consumption and brands much better. They became familiar with this world, and their tastes became more refined and sophisticated.”Lisa Nan, editor of Jing Daily’, explains this.

“When we look at today's young consumers, we can now see that not only brands, but also immersive pop-up stores and many marketing initiatives in China’ can be of interest.He adds.

Lisa Nan said the French retailer has already announced its intention to reassess its entire real estate portfolio in China’. “So I think this decision is more about an internal selection because the positions of these areas were quite unfavourable.”Before adding it, he says: It is true that the retail industry faces a major challenge in China“, and this applies not only to Galeries Lafayette, but also to Lane Crawford.’

The presence in China’ remains strong

On Tuesday, the day before closing, a steady flow of customers took place to capitalize on the latest offerings as employees collected unsold products and mannequins.

Qian Linlin, who works in finance and whose office is only a few steps away from the flagship in Beijing’, said she was surprised to learn that the store she visited occasionally during lunch breaks closed. “ I realized there weren't a lot of customers, but I never thought it would suddenly close down one day.”He said it. “ was an iconic building when it first opened, and we young people used to come here for shopping. All we can do now is hold on to those memories. - ”

Located three kilometers west of the Forbidden City, this six-story 48,000-square-foot store was stripped of bags, clothes, shoes and children's toys before closing its doors indefinitely.

But Galeries Lafayette China does not permanently leave the capital of ’. “Don't worry, this isn't goodbye. See you soon Beijing”The French group wrote in a statement. On the contrary, the retailer now plans to offer more functional stores with a greater focus on brand and product selection.

“Consumers' expectations for the traditional department store model have changed significantly. Modern shoppers are increasingly choosing comfort, better quality service, more meaningful experiences, and a stronger sense of well-being.”The group also wrote in a statement.

Galeries Lafayette also emphasizes that this closure does not lead to questioning its presence in China’. Shops in the special administrative districts of Shanghai, Shenzhen and Macau will remain open.

In China, it's: Galeries Lafayette Beijing closes shop in ’ after 13 years

French luxury store Galeries Lafayette, China, closed its first flagship store in ’ on Wednesday (May 27th), thirteen years after its opening. The retailer explains this move by pointing to falling sales in recent years.

While the luxury market experienced strong growth in the mid-2010’s, especially thanks to the rise of the middle class, the Covid-19 pandemic and the severe real estate crisis marked a decisive turning point, abruptly halting China’'s domestic consumption and forcing the sector to adapt to new economic realities.

“ChinaWe have been seeing growth in the luxury industry in ’ for ten years. Over the years, the Chinese consumer has matured greatly. Now they understand luxury consumption and brands much better. They became familiar with this world, and their tastes became more refined and sophisticated.”Lisa Nan, editor of Jing Daily’, explains this.

“When we look at today's young consumers, we can now see that not only brands, but also immersive pop-up stores and many marketing initiatives in China’ can be of interest.He adds.

Lisa Nan said the French retailer has already announced its intention to reassess its entire real estate portfolio in China’. “So I think this decision is more about an internal selection because the positions of these areas were quite unfavourable.”Before adding it, he says: It is true that the retail industry faces a major challenge in China“, and this applies not only to Galeries Lafayette, but also to Lane Crawford.’

The presence in China’ remains strong

On Tuesday, the day before closing, a steady flow of customers took place to capitalize on the latest offerings as employees collected unsold products and mannequins.

Qian Linlin, who works in finance and whose office is only a few steps away from the flagship in Beijing’, said she was surprised to learn that the store she visited occasionally during lunch breaks closed. “ I realized there weren't a lot of customers, but I never thought it would suddenly close down one day.”He said it. “ was an iconic building when it first opened, and we young people used to come here for shopping. All we can do now is hold on to those memories. - ”

Located three kilometers west of the Forbidden City, this six-story, 48,000-square-kilometer store was stripped of bags, clothes, shoes and children's toys before closing its doors indefinitely.

But Galeries Lafayette China does not permanently leave the capital of ’. “Don't worry, this isn't goodbye. See you soon Beijing”The French group wrote in a statement. On the contrary, the retailer now plans to offer more functional stores with a greater focus on brand and product selection.

“Consumers' expectations for the traditional department store model have changed significantly. Modern shoppers are increasingly choosing comfort, better quality service, more meaningful experiences, and a stronger sense of well-being.”The group also wrote in a statement.

Galeries Lafayette also emphasizes that this closure does not lead to questioning its presence in China’. Shops in the special administrative districts of Shanghai, Shenzhen and Macau will remain open.

5 things you need to know about OpenAI’'s potentially record-breaking IPO plans

According to the Wall Street Journal’, OpenAI is approaching one of the most anticipated stock market launches in history, with plans to apply for an IPO in a few days.

Sam Altman, chief executive officer, aims to go public in September 2026, pointing to a major change for the company that started as a non-profit research laboratory in 2015.

1. It may be the largest public offering ever

OpenAI’ reportedly aims to raise $60 billion (€55.4 billion) at the time of its launch. According to Deutsche Bank Research’, this will more than double the $25.6 billion (€23.6 billion) list that Saudi Aramco’ listed in 2019’, making it the largest public offering recorded at the time.

There's a warning. SpaceX, which presented its IPO statement this week, is targeting an increase of up to $75 billion (€69.1 billion). It is looking for a valuation between $1.75 trillion (1.61 trillion euros) and $2 trillion (1.84 trillion euros). This puts the two companies in direct competition for the largest listing in history.

The Wall Street Journal reported this week that OpenAI’ has agreed with Goldman Sachs and Morgan Stanley to draft a prospectus that could be submitted confidentially to regulatory agencies in a matter of days.

FILE – OpenAI logo, December 8, 2023’te Boston’da ChatGPT’'s Dall-E text-to-picture model is displayed on a mobile phone on a computer monitor.

2. A valuation of $1 trillion will make it the 14th largest ’ company in the world

Reports suggest that OpenAI’ could be worth more than $1 trillion (€922 billion) at the time of listing. Deutsche Bank Research analyst Adrian Cox explained the figures on what this means.

ChatGPT producer Berkshire Hathaway will be placed just behind the ’. The holding generated revenues of over $370 billion (341 billion euros) and net earnings of $67 billion (61.8 billion euros) last year. OpenAI will be right ahead of Eli Lilly’, whose sales exceed $65 billion (59.9 billion euros) and earn a profit of $21 billion (19.4 billion euros).

Nvidia is still far ahead. The company has the largest market capitalization in the world and is where public markets are closest to a large investment in artificial intelligence. Deutsche Bank Research states that ChatGPT’ is worth $5.4 trillion (4.98 trillion euros) after its shares have more than tripled since its launch on November 30, 2022.

3. Investors are pursuing pure gaming AI

Currently, retail investors who want to be exposed to artificial intelligence have limited options. They can invest in semiconductor companies, cloud providers or large technology companies.

According to Deutsche Bank Research’, the listing of OpenAI’ will trigger “ to struggle to make the most of investors' appetite for direct exposure to pure artificial intelligence companies in the public markets; This is something that does not exist today.

4. AI IPO race heats up

OpenAI is not alone. Claude’'s producer Anthropic is growing rapidly.

Last month, OpenAI’ surpassed OpenAI’ in sales by 25 billion. $30 billion in annual recurring revenue versus ’ (€23.1 billion) $’a (€27.7 billion) reached.

According to Deutsche Bank Research’'s estimates from The Information’, Anthropic’'s annual recurring revenue is expected to reach around $40 billion (€36.9 billion) this month.

The company may be considering raising more than $60 billion (€55.4 billion) from its IPO this year. Anthropic is also in talks with investors on financing worth $900 billion (830 billion euros). This will put the firm ahead of OpenAI’'s current private market valuation of $852 billion (€786 billion).

Deutsche Bank Research states, based on data from the University of Florida, that a $60 billion increase would be greater than the total in IPOs in the U.S. ’, except for four years since 1980’.

The U.S. stock market is currently around $70 trillion (64.6 trillion euros). This is roughly five times larger in nominal terms compared to the peak of the dot-com bubble.

5. There are still big questions about the business model.

Despite its scale and ambition, OpenAI has never made a profit.

According to Deutsche Bank Research’, the company is expected to generate annual revenues of around $30 billion (27.7 billion euros) this month.

But internal estimates reported by The Information show that it is on track to lose $14 billion (€12.9 billion) in 2026’ alone. Cumulative losses could reach $44 billion (€40.6 billion) ahead of profitability in 2029’.

As Deutsche Bank Research’ notes, when they opened up their “ financial charts and explained the still under-understood economy of their business model, it was yet to be seen how public markets would value OpenAI’ye and its peers.”

OpenAI has taken steps to prepare. It modernized its products, focused on enterprise customers, and clarified its partnership with Microsoft.

October 2025’te completes its transition from a nonprofit to a public interest organization. But questions remain about how to value AI model companies.

In recent months, OpenAI has been carefully laying the foundations by streamlining its products, focusing on enterprise customers, and clarifying its partnership with Microsoft.

October 2025’te completes its transition from a nonprofit to a public interest organization. But questions remain about how to value AI model companies.

Who pays more? European ​​ workers face huge gaps in income tax bills

Personal income tax rates vary widely across Europe. Policies and tax structures contribute to these differences.

Income level, marital status and the number of dependent children play an important role in determining how much of gross wage earnings goes to taxes.

So which European countries charge the highest and lowest personal income tax on gross wages?

Euronews Business takes a closer look at income tax rates based on the OECD’'s Taxation Fees 2026 report. These rates do not include social security premiums.

The only one without children

The first scenario is the average wage of a single person without children. %He won his 100 ’. Personal income tax (PIT) for this option in 2025, 22’si among 27 European countries that are EU members Poland’da %6.6’ to Denmark’ %It varies up to 35.3’e.

The EU-22 average %At 17.2, the OECD average %A little lower at 15.5.

History of Denmark %Iceland is the only country to exceed 30 ’ (.1) and Belgium (,6) %It is over 25’. the Estonian ’ (,6), Finland’da (,1), Ireland’da () and Norway’te (.4) and tax rates. %It's over 20’.

EuropeAmong ’'s leading economies is Italy (,1) and the United Kingdom, while taxing above the EU average, Germany (.2) is consistent with this. the Spanish (,1) and France (.7) is slightly lower.

Poland’ as well as Czechia’da (%9.7) single digits were reached. Switzerland and Slovakia %It's under 12’.

Single-income couple with two children

In most cases, a single-income couple with two children pays less tax than a single person without children. the EU (EU.2 vs. ) and OECD (.5 vs. 15.5 ) Averages reflect this.

In this scenario, income tax rates Slovakia’da -nmark with 6.5’da %It ranges from 31.8. A negative tax rate means that taxes are returned rather than deducted. Germany is only %It is approaching this threshold by applying a rate of 0.7’.

the Polish ’ (%1,1), Czechia’da (%3,3), Portugal’de (%4,5) and Slovenia’da (%4.7) a single-income couple with two children %He pays less than 5’.

In this scenario, this ratio is in Estonia’ (,6), Finland’da (), Iceland’da (,4) and Norway’te (.4 is still %It's over 20’.

Two-child, two-income couple

In the third scenario, both of the average wage %A two-child, two-income couple who earns 100’ pays slightly less tax than a single person who does not have children. EU-22 and OECD averages, respectively .5 and %It is 14.3’.

Rates in this scenario Slovakia’da nmark with 4.7’da %It varies from 35.3.

Tax Foundation economist Alex Mengden explained that under the generally fixed income tax system, households with two children, whether single-income or two-earnings, are subject to the same PIT’e. With increased rate tax systems, two-income couples pay higher taxes.

Why is tax mix important for country differences?

Edoardo Magalini, OECD analyst and statistician and co-author of the report, points to various reasons for differences at the country level.

Euronews Business’a said: “First of all, countries have ‘ different approaches to ’ tax mixes, depending on their income needs, the structure of their economies, as well as the historical development of their financial institutions.”

“Some countries charge VAT or taxes (corporate income taxes, capital income taxes, etc.) on different types of income.

Income tax alone doesn't tell the whole story

Magalini noted that the total tax burden on labor income also depends on other payments outside of PIT’s, such as social security contributions (SSCs) paid by both employees and employers.

Denmark, for example, stands out as the country with the highest PIT rate. But the workers there pay almost no social security premiums. France, on the other hand, has a significant share of the SBH’s, although it appears to be below the EU-22 average.

Mengden also pointed out that different dependence on social contributions is the main cause of differences at the country level. Social security contributions vary significantly between countries, and this affects the rate of wages taken to the general home.

John Hurley, senior research director at Eurofound’, emphasized that countries with higher labor tax share in general also tend to have more progressive tax systems, meaning they tax higher income earners more heavily and lower wage earners less or no tax at all.

Where do children matter the most?

When comparing a single-income couple with two children to a single person without children, the difference in some countries is remarkable. SlovakiaThe difference in ’ reaches 17.4 percent, followed by Germany (16.5 points), Luxembourg (12 points) and Belgium (11.8 points), all above 10 points.

As the chart shows, the tax rate is the same in Estonia, Norway, Lithuania, the UK, the Netherlands, Sweden and Turkey’.

Mengden noted that the difference in the income tax rate for a childless single worker and a married couple with two children reflects the generosity of child benefits, which are mostly transferred through the income tax law.

Although some countries, such as “ Estonia, Lithuania, Norway, Sweden and Turkey, show no difference here, this does not mean that they do not offer generous child benefits; Instead, it means they may be working through other channels, such as public-provided services, direct transfers, or free co-insurance for children, ” added.

Data shows that European ​​ workers face very different income tax bills

Personal income tax rates vary widely across Europe. Policies and tax structures contribute to these differences.

Income level, marital status and the number of dependent children play an important role in determining how much of gross wage earnings goes to taxes.

So which European countries charge the highest and lowest personal income tax on gross wages?

Euronews Business takes a closer look at income tax rates based on the OECD’'s Taxation Fees 2026 report. These rates do not include social security premiums.

The only one without children

The first scenario is the average wage of a single person without children. %He won his 100 ’. Personal income tax (PIT) for this option in 2025, 22’si among 27 European countries that are EU members Poland’da %6.6’ to Denmark’ %It varies up to 35.3’e.

The EU-22 average %At 17.2, the OECD average %A little lower at 15.5.

History of Denmark %Iceland is the only country to exceed 30 ’ (.1) and Belgium (,6) %It is over 25’. the Estonia (Estonia,6), Finland (.1, from Ireland () and Norway’te (.4) and tax rates. %It's over 20’.

EuropeAmong ’'s leading economies is Italy (,1) and the United Kingdom, while taxing above the EU average, Germany (.2) is consistent with this. the Spanish (,1) and France (.7) is slightly lower.

Poland’ as well as Czechia’da (%9.7) single digits were reached. Switzerland and Slovakia %It's under 12’.

Single income couple with two children

In most cases, a single-income couple with two children pays less tax than a single person without children. the EU (EU.2 vs. ) and OECD (.5 vs. 15.5 ) Averages reflect this.

In this scenario, income tax rates Slovakia’da -nmark with 6.5’da %It ranges from 31.8. A negative tax rate means that taxes are returned rather than deducted. Germany is only %It is approaching this threshold by applying a rate of 0.7’.

the Polish ’ (%1,1), Czechia’da (%3,3), Portugal’de (%4,5) and Slovenia’da (%4.7) a single-income couple with two children %He pays less than 5’.

In this scenario, this ratio is in Estonia’ (,6), Finland’da (), Iceland’da (,4) and Norway’te (.4 is still %It's over 20’.

Two-child, two-income couple

In the third scenario, both of the average wage %A two-child, two-income couple who earns 100’ pays slightly less tax than a single person who does not have children. EU-22 and OECD averages, respectively .5 and %It is 14.3’.

Rates in this scenario Slovakia’da nmark with 4.7’da %It varies from 35.3.

Tax Foundation economist Alex Mengden explained that under the generally fixed income tax system, households with two children, whether single-income or two-earnings, are subject to the same PIT’e. With increased rate tax systems, two-income couples pay higher taxes.

Why is tax mix important for country differences?

Edoardo Magalini, OECD analyst and statistician and co-author of the report, points to various reasons for differences at the country level.

Euronews Business’a said: “First of all, countries have ‘ different approaches to ’ tax mixes, depending on their income needs, the structure of their economies, as well as the historical development of their financial institutions.”

“Some countries charge VAT or taxes (corporate income taxes, capital income taxes, etc.) on different types of income.

Income tax alone doesn't tell the whole story

Magalini noted that the total tax burden on labor income also depends on other payments outside of PIT’s, such as social security contributions (SSCs) paid by both employees and employers.

Denmark, for example, stands out as the country with the highest PIT rate. But the workers there pay almost no social security premiums. France, on the other hand, has a significant share of the SBH’s, although it appears to be below the EU-22 average.

Mengden also pointed out that different dependence on social contributions is the main cause of differences at the country level. Social security contributions vary significantly between countries, and this affects the rate of wages taken to the general home.

John Hurley, senior research director at Eurofound’, emphasized that countries with higher labor tax share in general also tend to have more progressive tax systems, meaning they tax higher income earners more heavily and lower wage earners less or no tax at all.

Where do children matter the most?

When comparing a single-income couple with two children to a single person without children, the difference in some countries is remarkable. SlovakiaThe difference in ’ reaches 17.4 percent, followed by Germany (16.5 points), Luxembourg (12 points) and Belgium (11.8 points), all above 10 points.

As shown in the chart, the tax rate is the same in Estonia, Norway, Lithuania, England, the Netherlands, Sweden and Turkey’.

Mengden noted that the difference in the income tax rate for a childless single worker and a married couple with two children reflects the generosity of child benefits, which are mostly transferred through the income tax law.

Although some countries, such as “ Estonia, Lithuania, Norway, Sweden and Turkey, show no difference here, this does not mean that they do not offer generous child benefits; Instead, it means they may be working through other channels, such as public-provided services, direct transfers, or free co-insurance for children, ” added.

Inside ’'s Supply Chains: Why are companies sourcing from ’ in the UK?

European ​​manufacturers are increasingly moving their supply chains across borders, leveraging suppliers, skills and production in multiple countries. For companies like Bosch, the UK plays a special role in this network and contributes to a unique set of skills and expertise.

Steffen Hoffmann, managing director of Bosch UK and Ireland, says “Europe is a largely integrated economy, and ”It won't be enough to search for talent in just one country.“

Like many major manufacturers, Bosch operates across Europe through a network of production facilities, research centers and national businesses, supplying components from different countries and supplying multiple markets.

Hoffmann explains how this works in practice: “Birmingham and ScotlandUnited KingdomWe have numerous plants for industrial products in ’, including hydraulic drives in ’, and a plant for heating boilers in Worcester’. They all work with suppliers, some are based in the UK, but they all supply multiple countries.”

Suppliers provide components such as mechanical parts, materials and electronic systems and are selected not only for their ability to serve a local plant, but also for their competitiveness across Europe.

Jo Shepherd, CEO of Worcester Bosch’, Bosch’'s UK-based heating business, says ’ that frictionless trade is vital to “ supply chain efficiency and speed to market, helping to ensure consistent quality and reliability across markets.

Durability and innovation

Sourcing decisions are increasingly being shaped by broader economic and geopolitical factors. For European ​​ companies, resilience and independence are becoming increasingly important, and this cross-border model also helps manage risk in an increasingly uncertain global environment.

Durability and reliability are absolutely essential for every manufacturer, and this approach, “ adds, gives us more flexibility and less short-term exposure to global geopolitical fluctuations.

Access to talent and innovation is another important factor in resource-finding decisions. ’'s research base supports the development of new technologies that directly feed supply chains.

Hoffmann says: “We have a great university environment; Not only in Oxford and Cambridge’, but also in London’ and elsewhere in the country, we provide a good alumni and talent pool and a very lively start-up ​​ stage.”

This combination of academic strength and entrepreneurial activity fosters the broader competitiveness of Avrupa’, creating opportunities for cooperation and investment.

Local expertise, on a European scale

Operating in more than one country also presents challenges. Products and services need to be adapted to local regulations and customer expectations in each market.

For Worcester Bosch, this means combining insights from business across Europe with local knowledge from ’ in the UK. Shepherd, UKReferring to how products and services are specifically designed for customers in ’, “ says it's important to take what you've learned and apply it with true local care.

This combination of shared knowledge and the ability to respond to local needs is central to maintaining performance in different markets.

Strategic value in a changing world

As companies build more integrated supply chains across Europe, this approach is also strengthened at the policy level. As Her Majesty's European Trade Commissioner Ceri Morgan’ explains, the focus of the UK’ is now on strengthening cooperation and creating a more stable environment for businesses operating across borders.

The relationship with his words “starts from a very strong foundation”; Europe, the United Kingdom, continues to be ’'s largest export market.

Hoffmann, “We need to try to maintain a certain [regional] independence, ” says. “If we want to be taken seriously, we need to have a footprint, which requires independence from some other parts of the world.”

In this context, with its strong research capacity, established supply chains and stable business environment, the role of ’ as a partner in Europe’ is becoming part of a wider business decision.

UK Government policy reinforces this position. ’'s Industrial Strategy aims to support fast-growing industries, strengthen supply chains and attract global talent while providing long-term stability for business and investors.

A practical partnership

Both Hoffmann and Shepherd, UK, are clear that ’'s value lies not in a single advantage, but in how it adapts to a wider European system of cooperation.

For Bosch, sourcing from ’ is part of an integrated approach that combines talent, innovation and reliable supply chains. This is a practical partnership shaped by day-to-day cooperation rather than abstract policies.

As European ​​ companies continue to adapt to a more complex global environment, this model, based on common standards, local expertise and cross-border cooperation, will continue to be at the heart of sourcing and growth methods.

Germany forecasts GDP due to impacts of Iran war %1’den %Dropped 0.5’e

On Wednesday, German Minister of Economic Affairs and Energy Katherina Reiche said there was a sharp decline in the projected GDP ’ and that the 2026 growth target was %0.5’e announces withdrawal.

This was first predicted in January. %1’ represents a sharp decline from the growth rate and marks a long period of stagnation for the Eurozone's economic engine.

According to the latest figures released by the German government, the outlook for 2027’ has also been negative; Growth forecasts before %Estimated at 1.3 %Reduced to 0.9’.

This official approval comes after days of speculation about the resilience of the German industrial model in the face of rising global tensions.

Officials at Berlin’ noted that a downward revision was inevitable and that the main catalyst for this economic contraction was the ongoing Iranian war, which triggered a major energy shock across the continent.

Germany, as a major industrial center, is particularly susceptible to fluctuations in oil and gas prices; In both cases, there has been an increase in prices since the beginning of hostilities.

Government reports state that the effects of the “Iran war have disrupted ” supply chains and increased raw material costs, making it difficult for German exporters to remain competitive at the global stage.

The uncertainty surrounding the war also led to a noticeable “wait and see ” approach among private investors. Many firms have opted to suspend major expansion projects for fear that a wider regional tension could lead to more volatility in the market.

This lack of investment, coupled with high household energy bills that reduce domestic consumption, has created a pincer movement over the German economy.

Italy follows the same path as fiscal adjustments

Germany is not the only major European ​​ power that has had to adjust its expectations; The Italian government also moved to lower its economic outlook on Wednesday.

Italy forecasts GDP growth in 2026 %Estimated at 0.7 %It dropped to 0.6’.

Italian officials have noted that the “Iran war has placed a heavy burden on their financial planning, especially because the country is highly susceptible to fluctuations in energy prices.

Italian Economy Minister Giancarlo Giorgetti, referring to the Iran war, said “We are facing completely exceptional conditions, not normal.

While Giorgetti highlighted the current uncertainty surrounding the forecasts, “ added that unfortunately the figures will likely need to be reviewed, adjusted and updated in the coming weeks.

Giorgetti also said that the budget deficit was seen at 2.9 percent ’ of GDP this year, above the previous target of 2.8 percent ’, and would fall to only 2.8 percent ’e in 2027’ compared to the previous target of 2.6 percent.

Earlier on Wednesday, the Italian national statistical bureau confirmed that Italy’ had announced a budget deficit of 3.1’i of 2025’te GDP, which frustrated Roma’'s hopes of exiting the EU disciplinary procedure this year due to the ’ over“ deficit.

Simultaneous grade drops in Berlin and Roma’ point to a wider systemic weakness across the Eurozone.

As energy-intensive industries struggle to cope with the new geopolitical reality, the prospect of a rapid economic recovery across the continent seems increasingly remote.