France Opposes EU-Mercosur Deal, Seeks to Rally Support from Key EU States

Published

2 months ago

December 1, 2024

RTX

As EU negotiators prepare for a critical round of talks in Uruguay on December 5-6, France is stepping up its efforts to block the long-awaited EU-Mercosur trade agreement, which aims to create one of the world’s largest free trade zones. While Germany and Spain lead a coalition of EU states in favor of the deal, France is attempting to rally Italy, Austria, Poland, and the Netherlands to form a blocking minority.

The EU-Mercosur agreement, which has been in negotiations for 25 years, seeks to open up trade between the European Union’s 27 member states and the four founding countries of the South American Mercosur bloc: Argentina, Brazil, Paraguay, and Uruguay. Bolivia, which joined Mercosur in 2024, will not take part in the current negotiations. The deal promises to cover 750 million people and one-fifth of the global economy.

While a political agreement was reached in 2019, the deal has faced growing opposition from some EU member states, particularly those with strong agricultural sectors. France, which has consistently opposed the agreement, argues that the trade deal could harm its agricultural industry, especially in the context of lower Mercosur agricultural standards. French trade minister Sophie Primas has pushed for the inclusion of the Paris Agreement as a binding clause in the deal to ensure that environmental standards are met.

A French diplomat told Euronews that concerns about the deal extend beyond France, with countries such as Poland and Italy also expressing reservations. Poland’s agriculture ministry has warned that the deal could threaten its agricultural sector, particularly poultry. Italy has voiced similar concerns, with Agriculture Minister Francesco Lollobrigida demanding that Mercosur farmers adhere to the same standards as their EU counterparts.

Ireland, a major beef exporter, and Belgian farmers have also raised alarms about potential competition under the deal, fearing that it could drive down prices in European markets. Despite these concerns, it remains unclear whether these countries will join France in opposing the agreement.

France is also seeking support from the Netherlands, which voted against the deal in 2020. Dutch trade minister Reinette Klaver reiterated the country’s opposition, citing concerns over the impact on agriculture. However, the Netherlands’ position could shift depending on future negotiations.

In contrast, Germany and Spain strongly endorse the agreement, viewing it as an opportunity to expand exports, particularly in industries such as automotive, chemicals, pharmaceuticals, and agriculture. For Spain, high-value agricultural exports like olive oil and Serrano ham are key benefits of the deal.

As the December meeting in Uruguay approaches, the debate over the EU-Mercosur agreement intensifies. With France aiming to block the deal and Germany and Spain pushing for its approval, the outcome of these negotiations could shape Europe’s trade relations with South America for years to come.

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Meta Agrees to $25 Million Settlement in Lawsuit with Donald Trump

Published

11 hours ago

January 30, 2025

RTX

US President Donald Trump has reached a legal settlement with Meta, the parent company of Facebook and Instagram, following a lawsuit filed in 2021. The settlement, which totals approximately $25 million (£20 million), comes after Trump sued the tech giant and its CEO, Mark Zuckerberg, over the suspension of his accounts after the January 6 Capitol riots.

The terms of the settlement were first reported by the Wall Street Journal. The majority of the funds, around $22 million, will be directed to a fund for Trump’s presidential library. The remainder will cover legal fees and support other plaintiffs who were part of the lawsuit. As part of the agreement, Meta has not admitted any wrongdoing.

Trump’s social media accounts were suspended by Meta in 2021, with the company imposing a ban of at least two years, citing concerns over the incitement of violence following the Capitol riots. In July 2024, Meta lifted the final restrictions on Trump’s Facebook and Instagram accounts, ahead of the upcoming US presidential elections.

Following Trump’s victory in the 2024 election, Zuckerberg was seen visiting Trump’s Mar-a-Lago resort in Florida. This visit was interpreted as a sign of an apparent warming of relations between the two, which had been previously strained. In a further indication of improved ties, Meta donated $1 million to Trump’s inauguration fund in the same year. Zuckerberg also attended Trump’s inauguration, seated alongside other high-profile tech figures.

In the past, Trump had been highly critical of Facebook, accusing the platform of being “anti-Trump” and calling it an “enemy of the people” after his accounts were banned. His relationship with Twitter, now rebranded as X, also soured after the platform permanently suspended him in 2021. However, after Elon Musk acquired the platform for $44 billion, Trump’s account was reinstated following a poll conducted by Musk.

In a separate development, Meta recently defended its $65 billion investment in artificial intelligence (AI), even as US tech stocks faced volatility following the rise of the Chinese AI app DeepSeek. Zuckerberg told investors that despite the competition, Meta remains confident in its AI strategy, emphasizing the importance of an open-source approach to ensure the US remains a leader in the industry.

Zuckerberg’s remarks came alongside the company’s announcement of better-than-expected financial results, with Meta posting a 21% revenue increase for the final quarter of 2024, reaching over $48 billion. While Meta’s heavy investment in AI has impacted its finances, the company reported a profit of more than $20 billion, up 49% from the previous year. The company is also betting on the future success of smart glasses and reviving Facebook’s relevance, as it faces stiff competition from platforms like Instagram and TikTok.

Zuckerberg, looking to the future, reiterated his vision that smart glasses will eventually replace traditional ones within the next decade.

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Roman Abramovich Accused of Avoiding Millions in VAT Through Superyacht Scheme

Published

2 days ago

January 28, 2025

RTX

Russian billionaire Roman Abramovich is facing allegations of avoiding millions of euros in VAT payments by falsely classifying five of his superyachts as commercial vessels, according to a joint investigation by the BBC, The Guardian, and the Bureau of Investigative Journalism.

The investigation revealed that between 2005 and 2012, the yachts—including The Eclipse, once the largest in the world—were labeled as commercial charters to sidestep VAT obligations. Under EU rules, private vessels are typically subject to VAT at around 20% when receiving services like refueling. By claiming these yachts were being chartered to external customers, Abramovich’s network avoided paying the tax.

However, leaked documents from Cyprus show the yachts were managed by Blue Ocean Yacht Management, a Cyprus-based company controlled by Abramovich. This company allegedly rented the vessels to entities registered in the British Virgin Islands—also owned by Abramovich—effectively creating a circular structure.

An email from 2005, written by Blue Ocean director Jonathan Holloway, detailed the scheme’s intent to avoid VAT. Holloway instructed that the structure should appear legitimate but acknowledged that a determined investigation could expose the arrangement.

“We want to avoid paying VAT on the purchase price of the yachts and where possible to avoid paying VAT on goods and services provided to the yachts,” Holloway wrote. He added that the setup must appear as separate entities, even though it was all under Abramovich’s control.

Abramovich’s lawyers deny any wrongdoing, stating that the billionaire always sought and followed expert tax and legal advice and was unaware of the alleged scheme.

Legal Actions and Outcomes
European authorities have scrutinized Blue Ocean in the past but did not appear fully aware of the extent of the yacht scheme.

In 2012, Cypriot authorities disputed Blue Ocean’s claim to VAT exemption and pursued more than €14 million in unpaid taxes for the period between 2005 and 2010. While the company contested the charges, Cyprus’s supreme court dismissed their appeal in 2021. Four months later, Blue Ocean was dissolved.

In another instance, Italian prosecutors in Trieste attempted to recover €500,000 in unpaid refueling duties in 2015. The case was dropped after Abramovich’s representatives argued the yachts were used for commercial purposes.

The allegations add to the scrutiny surrounding Abramovich, a prominent figure among Russian oligarchs, as European authorities continue to crack down on financial loopholes involving luxury assets.

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Trump Administration’s First Week Brings Sweeping Tech Policy Shifts

Published

4 days ago

January 26, 2025

RTX

In his first week back in office, President Donald Trump unveiled ambitious plans to reshape the U.S. technology landscape, focusing on artificial intelligence (AI), digital assets, and social media regulation.

AI Policies Revamped

President Trump signed an executive order on January 23 aimed at dismantling Biden-era policies that, according to the administration, hindered American innovation in AI. The order tasks officials with developing an AI action plan within six months, emphasizing systems free from “ideological bias or engineered social agendas.”

This move has sparked concerns over the future of the U.S. AI Safety Institute, an organization established under Biden to research the safe implementation of AI systems. Critics fear it may be dissolved as part of Trump’s broader rollback.

Additionally, Trump announced the formation of the President’s Council of Advisors on Science and Technology (PCAST), comprising 24 experts who will guide initiatives in AI, quantum energy, biotechnology, and autonomous systems. David Sacks, a former PayPal executive and Trump’s new “AI and crypto czar,” will lead efforts to ensure the U.S. remains a global leader in technology.

$500 Billion AI Infrastructure Investment

One of Trump’s cornerstone initiatives is a $500 billion (€476 billion) investment in AI infrastructure through a joint venture named Stargate. Partnering with OpenAI, Oracle, and SoftBank, the project will establish data centers and energy facilities in Texas.

While initially seeded with $100 billion (€95 billion), the investment could quintuple as companies like Microsoft, NVIDIA, and Arm join the effort. The Stargate initiative builds on preliminary plans from the previous administration, though Trump emphasized its expansion under his leadership.

Digital Dollar Ban and Cryptocurrency Push

In a significant financial move, Trump signed an executive order banning Central Bank Digital Currencies (CBDCs), citing risks to financial stability and individual privacy. Instead, the administration will develop a framework for stablecoins backed by the U.S. dollar and explore a national crypto stockpile.

The digital asset strategy aligns with Trump’s campaign pledge to make the U.S. the “crypto capital of the world.” The newly formed advisory committee on digital markets, chaired by Sacks, will present regulatory recommendations within six months.

TikTok Ban Postponed

Trump granted a 75-day extension for TikTok’s Chinese parent company ByteDance to secure a U.S. buyer, delaying an impending ban. While the app temporarily went offline on January 19, it has since been restored for users, though it remains unavailable on major app stores.

Potential buyers have surfaced, including a consortium led by YouTube star MrBeast and billionaire Frank McCourt’s “The People’s Bid.”

Tech Priorities on the Global Stage

President Trump’s early actions signal a strong focus on positioning the U.S. as a leader in cutting-edge technology while addressing privacy, security, and innovation challenges. As policies evolve, they are likely to shape the global tech landscape for years to come.