Mistral

French AI firm Mistral to build data centres in Sweden

  • The 1.2 billion euro ($1.4 billion) investment is "a major step toward Europe's technological independence", Mistral said, offering "a completely European AI solution".
  • French AI developer Mistral said Wednesday that it would build data centres in Sweden, its first outside France, as it races to compete with the sector's biggest names.
  • The 1.2 billion euro ($1.4 billion) investment is "a major step toward Europe's technological independence", Mistral said, offering "a completely European AI solution".
French AI developer Mistral said Wednesday that it would build data centres in Sweden, its first outside France, as it races to compete with the sector's biggest names.
The 1.2 billion euro ($1.4 billion) investment is "a major step toward Europe's technological independence", Mistral said, offering "a completely European AI solution".
One of Europe's leading lights in artificial intelligence, Mistral has posted revenues far behind those of American competitors such as OpenAI and Anthropic, though profitability remains elusive for most of the sector.
But Mistral's European DNA may prove to be an advantage, with technological sovereignty increasingly on leaders' minds.
It has focussed in particular on business clients and applications, and not chatbots like ChatGPT or Claude that target everyday users.
In September it raised 1.7 billion euros, bringing aboard Dutch chipmaking technology giant ASML as a key investor.
The fundraising valued Mistral at 11.7 billion euros, and chief executive Arthur Mensch has said the company's revenue should top one billion euros this year.
mng/js/jhb

AI

Siemens Energy trebles profit as AI boosts power demand

  • US data centre electricity consumption is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for six to eight percent of US electricity use.
  • German turbine maker Siemens Energy said Wednesday that its quarterly profits had almost tripled as the firm gains from surging demand for electricity driven by the artificial intelligence boom.
  • US data centre electricity consumption is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for six to eight percent of US electricity use.
German turbine maker Siemens Energy said Wednesday that its quarterly profits had almost tripled as the firm gains from surging demand for electricity driven by the artificial intelligence boom.
The company's gas turbines are used to generate electricity for data centres that provide computing power for AI, and have been in hot demand as US tech giants like OpenAI and Meta rapidly build more of the sites. 
Net profit in the group's fiscal first quarter, to end-December, climbed to 746 million euros ($889 million) from 252 million euros a year earlier. 
Orders -- an indicator of future sales -- increased by a third to 17.6 billion euros.
The company's shares rose over five percent in Frankfurt trading, putting the stock up about a quarter since the start of the year and making it the best performer to date in Germany's blue-chip DAX index.
"Siemens Energy ticked all of the major boxes that investors were looking for with these results," Morgan Stanley analysts wrote in a note, adding that the company's gas turbine orders were "exceptionally strong".
US data centre electricity consumption is projected to more than triple by 2035, according to the International Energy Agency, and already accounts for six to eight percent of US electricity use.
Asked about rising orders on an earnings call, Siemens Energy CEO Christian Bruch said he thought the first-quarter figures were not "particularly strong" and that further growth could be expected.
"Demand for gas turbines is extremely high," he said. "We're talking about 2029 and 2030 for delivery dates."
Siemens Energy, spun out of the broader Siemens group in 2020, said last week that it would spend $1 billion expanding its US operations, including a new equipment plant in Mississippi as part of wider plans that would create 1,500 jobs.
Its shares have increased over tenfold since 2023, when the German government had to provide the firm with credit guarantees after quality problems at its wind-turbine unit. 
vbw/sr/js

diplomacy

WTO must reform, 'status quo is not an option': chief

  • The World Trade Organization regulates large swathes of global trade but is handicapped by a rule requiring full consensus among members, and a dispute settlement system crippled by the United States.
  • The World Trade Organization must urgently reform itself, its chief warned Wednesday, saying that "I don't think the status quo is an option".
  • The World Trade Organization regulates large swathes of global trade but is handicapped by a rule requiring full consensus among members, and a dispute settlement system crippled by the United States.
The World Trade Organization must urgently reform itself, its chief warned Wednesday, saying that "I don't think the status quo is an option".
"We are meeting today at an inflection point, not just for the WTO, but... for the multilateral system," Ngozi Okonjo-Iweala told reporters, saying that if the global trading system were allowed to lapse, it would be "chaos".
"We need to change to fit with the times," she said.
Reform will be at the heart of the WTO's ministerial meeting in Cameroon next month.
The World Trade Organization regulates large swathes of global trade but is handicapped by a rule requiring full consensus among members, and a dispute settlement system crippled by the United States.
The Geneva-based organisation faced structural and geopolitical obstacles long before US President Donald Trump returned to the White House last year and dramatically ratcheted up global trade tensions.
Speaking at the WTO's headquarters, Okonjo-Iweala said that "the world is moving so fast... If you look at the speed at which technology is moving, and AI is moving and quantum technologies are moving".
"If your organisation doesn't adapt, then you'll be left behind," she said.
"This organisation provides stability and predictability," she added, hailing that "in spite of all the knocks, it is still the bedrock for so much of world trade".
"If we don't have this system, what does it mean? I'll be very honest with you: there'll be chaos," she said.
"It means a business will send goods somewhere without the knowledge of how those goods will be valued when it arrives at customs... you wouldn't know how your goods will be valued before you're tariffed. You wouldn't know whether you're going to make money or not.
"You'll be confronted when your goods arrive with rules that you were never aware of," she said.
nl/rjm/js

aviation

European airlines warn of 'severe disruption' from new border checks

  • "Failing immediate action to provide sufficient flexibility, severe disruptions over the peak summer months are a real prospect, with queues potentially reaching four hours or more," stated a joint letter by the European arm of the Airports Council International (ACI), Airlines for Europe (A4E) and the International Air Transport Association (IATA). 
  • European airlines warned Wednesday that the new entry system for travellers into the Schengen open-borders zone will cause "severe disruption" over peak summer months, and called for action to resolve "critical issues" behind already existing delays. 
  • "Failing immediate action to provide sufficient flexibility, severe disruptions over the peak summer months are a real prospect, with queues potentially reaching four hours or more," stated a joint letter by the European arm of the Airports Council International (ACI), Airlines for Europe (A4E) and the International Air Transport Association (IATA). 
European airlines warned Wednesday that the new entry system for travellers into the Schengen open-borders zone will cause "severe disruption" over peak summer months, and called for action to resolve "critical issues" behind already existing delays. 
The new Entry/Exit System (EES), in place since October, aims to replace stamps on passports and secure better information-sharing between the bloc's 27 states with automated photographs and fingerprints for non-EU nationals.
"Failing immediate action to provide sufficient flexibility, severe disruptions over the peak summer months are a real prospect, with queues potentially reaching four hours or more," stated a joint letter by the European arm of the Airports Council International (ACI), Airlines for Europe (A4E) and the International Air Transport Association (IATA). 
The three organisations said they wrote to Magnus Brunner, European Commissioner for Internal Affairs and Migration, to highlight "persistent excessive waiting times of up to two hours at airport border control" despite only a phased rollout since October. 
The goal of the EES is for authorities to better detect anyone overstaying in the Schengen area, or people who have been refused entry.
But the airline groups pointed to "chronic border control understaffing" as well as "unresolved technology issues" pertaining to automation.
The groups called on the commissioner to confirm whether Schengen members would have the option to partially or fully suspend the EES until October in order to allow flexibility over the summer months. 
hrc/ved/abx/giv/js

layoffs

Struggling brewer Heineken to cut up to 6,000 jobs

  • "We remain prudent in our near-term expectations for beer market conditions," chief executive Dolf van den Brink said in a statement.
  • Under-pressure Dutch brewer Heineken said Wednesday that it would scrap up to 6,000 jobs as it faces what it called "challenging market conditions" with beer volumes down compared to last year.
  • "We remain prudent in our near-term expectations for beer market conditions," chief executive Dolf van den Brink said in a statement.
Under-pressure Dutch brewer Heineken said Wednesday that it would scrap up to 6,000 jobs as it faces what it called "challenging market conditions" with beer volumes down compared to last year.
The company said it would be "accelerating productivity at scale to unlock significant savings, reducing 5,000 to 6,000 roles over the next two years".
"We remain prudent in our near-term expectations for beer market conditions," chief executive Dolf van den Brink said in a statement.
Traders appeared to welcome news of the job cuts, with shares up around three percent at the opening on the Amsterdam stock exchange.
Van den Brink stunned the company last month by announcing that he would be stepping down after almost six years at the helm.
He told reporters he was leaving with "mixed emotions" after acknowledging that he had guided the company "through turbulent economic and political times".
"My priority for the coming months is to leave Heineken in the strongest possible position," he said.
Heineken employs around 87,000 people globally.
In October, the brewer had already announced it was cutting or reassigning 400 jobs as part of a reorganisation of its Amsterdam head office to take advantage of new technologies.

Shipments slip

Executives declined to specify where the bulk of the job cuts would come, but chief financial officer Harold van den Broek hinted they would come in Europe.
"Europe is a big part of our business," he told reporters. "And you see from the financial results also that it is very tough to drive a good operating leverage there." 
"So we are focusing many of the initiatives to strengthen our European business, but not exclusively so," he said.
Beer volumes globally at the world's second-biggest brewer after AB InBev were down 2.4 percent in 2025, the firm reported in its annual results.
The decline was especially severe in Europe and the Americas, which dropped 4.1 percent and 3.5 percent, respectively.
In the fourth quarter of last year, total global beer volumes were down 2.8 percent.
Total annual sales for Heineken came in at 34.4 billion euros ($41 billion), compared to the 36.0 billion it banked in 2024.
Net profits were 2.7 billion euros, which the firm said was a 4.9 percent gain on last year when currency fluctuations were stripped out.
Looking ahead to 2026, Heineken forecast full-year organic operating profit growth of two to six percent, after a 4.4 percent rise last year to 4.4 billion euros.
ric/js

Global Edition

Stock markets rise, dollar dips as traders await US jobs

  • The prospect of another Fed rate cut also pushed the dollar down against its major peers.
  • Asian and European stock markets rose Wednesday while the dollar slipped as investors weighed weak US consumer data that boosted the case for more interest rate cuts ahead of key jobs figures due later in the day.
  • The prospect of another Fed rate cut also pushed the dollar down against its major peers.
Asian and European stock markets rose Wednesday while the dollar slipped as investors weighed weak US consumer data that boosted the case for more interest rate cuts ahead of key jobs figures due later in the day.
The gains followed a mixed day on Wall Street, where tech firms pared recent gains amid lingering worries about extended valuations and the vast sums pumped into artificial intelligence.
Traders were also awaiting the release of inflation figures at the end of the week that could provide a clearer idea about the Federal Reserve's plans ahead of its March policy meeting.
The Commerce Department said Tuesday that US retail sales saw no growth in December, having expanded 0.6 percent in November.
The reading provided the Fed with room to consider cutting borrowing costs next month, having held in January after three successive reductions.
However, it also indicated there was unease among American consumers, who are the major driver of growth, and pointed to further weakness in the economy.
And analysts said the previous "bad news is good news" adage, which has fuelled rate cut hopes in the past and propelled markets higher, might be a thing of the past.
"The market is no longer responding uniformly to the idea that weaker data automatically lifts stocks," said SPI Asset Management's Stephen Innes.
"Beneath the surface, anxiety around AI-related headline risk is clearly elevated."
Wednesday's jobs data comes after President Donald Trump's top economic adviser Kevin Hassett warned this week of more soft readings to come.
Traders now see more chance of three rate cuts this year, with two already baked into prices, according to Bloomberg.

Dollar weakens

However, two decision-makers at the central bank made the case Tuesday to keep borrowing costs unchanged for now owing to elevated inflation.
Cleveland Fed boss Beth Hammack said in a speech in Ohio that "based on my forecast, we could be on hold for quite some time", adding that "I'd prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs".
And Dallas Fed chief Lorie Logan told a forum in Texas another cut could be appropriate if there were "further material cooling in the labour market" but she was currently "more worried about inflation remaining stubbornly high".
While the Dow edged up to another record on Wall Street, the S&P 500 and Nasdaq dropped, with tech firms among the main losers.
But Asia fared better, extending its strong start to the week.
Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Bangkok, Jakarta and Manila all advanced, though Mumbai and Wellington dipped.
And in Europe, London and Paris opened higher but Frankfurt fell.
Tokyo was closed for a holiday.
The prospect of another Fed rate cut also pushed the dollar down against its major peers.
There was little major reaction to data showing Chinese consumer inflation eased last month.
Traders remain on guard about developments in the tech space as they worry that the hundreds of billions firms have pumped into AI may not see any returns for some time.
That was compounded Tuesday after Google parent Alphabet raised more than $30 billion in debt in less than 24 hours as it looks to ramp up its capabilities.
News that startup Altruist Corp had rolled out a tax-strategy tool added to the sense of unease on trading floors as it fanned concerns that the software will take business from mainstream firms.
Sentiment was rattled last week after Anthropic unveiled a model that could replace numerous software tools, including for legal work and data marketing.
Oil prices edged up on fresh concerns over US-Iran tensions as Israeli Prime Minister Benjamin Netanyahu headed for Washington to hold hastily arranged talks as nuclear talks between Washington and Tehran continue.
Trump said on the eve of the White House meeting that he was weighing sending a second US "armada" to the Middle East to pressure Tehran to reach a deal, though Netanyahu is expected to push him to take a harder line with Israel's foe.

Key figures at around 0815 GMT

Hong Kong - Hang Seng Index: UP 0.3 percent at 27,266.38 (close)
Shanghai - Composite: UP 0.1 percent at 4,131.98 (close)
London - FTSE 100: UP 0.5 percent at 10,401.45 
Tokyo - Nikkei 225: Closed for a holiday
Euro/dollar: UP at $1.1915 from $1.1899 on Tuesday
Pound/dollar: UP at $1.3671 from $1.3644
Dollar/yen: DOWN at 153.10 yen from 154.31 yen
Euro/pound: DOWN at 87.16 pence from 87.18 pence
West Texas Intermediate: UP 1.1 percent at $64.69 per barrel
Brent North Sea Crude: UP 1.1 percent at $69.54 per barrel
New York - Dow: UP 0.1 percent at 50,188.14 (close)
dan/mtp

waterways

UK's crumbling canals threatened with collapse

BY STEPHEN CONNEELY

  • About a dozen workers were overseeing the complex operation to rescue three narrowboats stranded in a canal in Whitchurch, on the English-Welsh border, last month.
  • On a misty winter's day in the English midlands, engineers struggled to drag stranded narrowboats from a waterless, mud-filled canal that collapsed weeks earlier, in a delicate, multi-million-pound rescue operation.
  • About a dozen workers were overseeing the complex operation to rescue three narrowboats stranded in a canal in Whitchurch, on the English-Welsh border, last month.
On a misty winter's day in the English midlands, engineers struggled to drag stranded narrowboats from a waterless, mud-filled canal that collapsed weeks earlier, in a delicate, multi-million-pound rescue operation.
The sight starkly illustrated an ongoing battle to maintain the UK's historic, yet deteriorating, waterways.
Britain's canal network "is facing pressure it has never faced before," said Charlie Norman, director of campaigns at the Inland Waterways Association (IWA), an independent charity advocating for the upkeep of the UK's canals and rivers.
"The entire canal network is vulnerable," Norman added, pointing to the "increased effects of climate change" such as drought in the summer and heavy rain in the winter.
"Inadequate funding across the sector" has provoked an "overall deterioration" in the 4,700 mile-long (7,600 kilometre) network, they said.
Britain's 200-year-old canal network was once the backbone of the country's economic transformation during the Industrial Revolution, but is now crumbling, experts say.
About a dozen workers were overseeing the complex operation to rescue three narrowboats stranded in a canal in Whitchurch, on the English-Welsh border, last month.
Watching from an empty canal bank and wearing a high-viz jacket and white hard hat, was Julie Sharman, the chief operating officer of the Canal & River Trust –- a charitable organisation in charge of maintaining some 2,000 miles (3,200km) of waterways across England and Wales.
Behind her were two 20-tonne narrowboats waiting to be rescued by an imposing winch machine in a nearby field with the help of a specialist excavator.

'Tough decisions'

"There's no disguising the fact that we do need more money to look after our canal network," she told AFP.
"People sometimes think canals are looked after by local authorities or by the government, and they're not. They're looked after by us, as a charity," she said.
The trust is investigating the Whitchurch breach, but Sharman said "our engineers have to make tough decisions every week" about which projects to tackle and "there's always a very long list of things we would want to do".
"Small breaches and failures have happened since the canals were built," she added, but "it's rare to have a breach of this scale".
In January 2025, there was an earlier canal collapse in Bridgewater, northwest England, which led to just under two miles of the canal being drained of water.
The Canal & River Trust, the largest authority, says its fixed annual grant of £52.6 million ($71.8 million) from the government, amounts to just 22 percent of its annual income, but that will reduce by five percent from 2027 for the next decade.
The rest, some 78 percent, is funded by the charity's own investment and self-generated income, including user fees and fundraising, supported by thousands of volunteers.
Last week, the UK government pledged an additional £6.5 million funding for the trust "to help build long-term resilience across the network".
"Our historic canals and waterways are not only world famous and precious to communities across the country -- they are also a vital part of our national infrastructure," said Water Minister Emma Hardy.
British Waterways, a statutory body of the UK government, ceased to exist in 2012 and handed maintenance of canals and rivers to a series of 144 navigation authorities.
It was believed the move would diversify funding potential allowing bodies to tap into government grants, commercial revenue and charitable donations.

Transport, leisure, homes

"Before canals, transporting goods across Britain was limited to horse and cart," said historian Mike Clarke.
The advent of the canal greatly increased the nation's capacity to transport goods.
After declining in use, "a restoration movement came about in the '60s" and people began to live on canal houseboats, Clarke said.
Now more than 35,000 boats are registered with the Canal & River Trust, plying the network to transport goods or just for pleasure. And about 15,000 people are said to live on canal boats moored on the banks.
Matt Gibson, 52, moors his sage-green houseboat, bedecked with plants, on the Regent's Canal near central London.
He moved in during the pandemic "to explore a different way of living".
"I get a bit spooked when I can hear drunk people outside at night," he told AFP. "I do love living here, though -- I don't need much more space to live".
str/jkb/phz

media

Instagram boss to testify at social media addiction trial

BY BENJAMIN LEGENDRE

  • YouTube and Meta -- the parent company of Instagram and Facebook -- are defendants in a blockbuster trial that could set a legal precedent regarding whether social media giants deliberately designed their platforms to be addictive to children.
  • Instagram chief Adam Mosseri is to be called to testify Wednesday in a Los Angeles courtroom by lawyers out to prove social media is dangerously addictive by design to young, vulnerable minds.
  • YouTube and Meta -- the parent company of Instagram and Facebook -- are defendants in a blockbuster trial that could set a legal precedent regarding whether social media giants deliberately designed their platforms to be addictive to children.
Instagram chief Adam Mosseri is to be called to testify Wednesday in a Los Angeles courtroom by lawyers out to prove social media is dangerously addictive by design to young, vulnerable minds.
YouTube and Meta -- the parent company of Instagram and Facebook -- are defendants in a blockbuster trial that could set a legal precedent regarding whether social media giants deliberately designed their platforms to be addictive to children.
Rival lawyers made opening remarks to jurors this week, with an attorney for YouTube insisting that the Google-owned video platform was neither intentionally addictive nor technically social media.
"It's not social media addiction when it's not social media and it's not addiction," YouTube lawyer Luis Li told the 12 jurors during his opening remarks.
The civil trial in California state court centers on allegations that a 20-year-old woman, identified as Kaley G.M., suffered severe mental harm after becoming addicted to social media as a child.
She started using YouTube at six and joined Instagram at 11, before moving on to Snapchat and TikTok two or three years later.
The plaintiff "is not addicted to YouTube. You can listen to her own words -- she said so, her doctor said so, her father said so," Li said, citing evidence he said would be detailed at trial.
Li's opening arguments followed remarks on Monday from lawyers for the plaintiffs and co-defendant Meta. 
On Monday, the plaintiffs' attorney Mark Lanier told the jury YouTube and Meta both engineer addiction in young people's brains to gain users and profits.
"This case is about two of the richest corporations in history who have engineered addiction in children's brains," Lanier said.
"They don't only build apps; they build traps." 
But Li told the six men and six women on the jury that he did not recognize the description of YouTube put forth by the other side and tried to draw a clear line between YouTube's widely popular video app and social media platforms like Instagram or TikTok.
YouTube is selling "the ability to watch something essentially for free on your computer, on your phone, on your iPad," Li insisted, comparing the service to Netflix or traditional TV.
Li said it was the quality of content that kept users coming back, citing internal company emails that he said showed executives rejecting a pursuit of internet virality in favor of educational and more socially useful content.

'Gateway drug'

Stanford University School of Medicine professor Anna Lembke, the first witness called by the plaintiffs, testified that she views social media, broadly speaking, as a drug.
The part of the brain that acts as a brake when it comes to having another hit is not typically developed before a person is 25 years old, Lembke, the author of the book "Dopamine Nation," told jurors.
"Which is why teenagers will often take risks that they shouldn't and not appreciate future consequences," Lembke testified.
"And typically, the gateway drug is the most easily accessible drug," she said, describing Kaley's first use of YouTube at the age of six.
The case is being treated as a bellwether proceeding whose outcome could set the tone for a wave of similar litigation across the United States.
Social media firms face hundreds of lawsuits accusing them of leading young users to become addicted to content and suffer from depression, eating disorders, psychiatric hospitalization, and even suicide.
Lawyers for the plaintiffs are borrowing strategies used in the 1990s and 2000s against the tobacco industry, which faced a similar onslaught of lawsuits arguing that companies knowingly sold a harmful product.
arp-gc/sla

music

Britney Spears sells rights to her music catalog: US media

  • Spears, 44, joins a growing list of artists who have sold their music rights in recent years including Bruce Springsteen and Bob Dylan, as well as Shakira and KISS. US media reported that the rights were bought by music publisher Primary Wave, whose portfolio includes the works of Whitney Houston, Bob Marley, Prince and others. 
  • US singer Britney Spears has become the latest musician to sell the rights to her catalog that includes hits like "...
  • Spears, 44, joins a growing list of artists who have sold their music rights in recent years including Bruce Springsteen and Bob Dylan, as well as Shakira and KISS. US media reported that the rights were bought by music publisher Primary Wave, whose portfolio includes the works of Whitney Houston, Bob Marley, Prince and others. 
US singer Britney Spears has become the latest musician to sell the rights to her catalog that includes hits like "...Baby One More Time" and "Oops!...I Did It Again," US media reported Tuesday.
The deal is believed to be worth around $200 million, according to sources cited by celebrity site TMZ, though it said the exact amount is not detailed in legal documents. 
That sum would be comparable to the sale of Canadian singer Justin Bieber's catalog in 2023. 
Spears, 44, joins a growing list of artists who have sold their music rights in recent years including Bruce Springsteen and Bob Dylan, as well as Shakira and KISS.
US media reported that the rights were bought by music publisher Primary Wave, whose portfolio includes the works of Whitney Houston, Bob Marley, Prince and others. 
Owners of a song's publishing rights receive payment for every broadcast, album sale or use in advertising and films. 
The growing music rights market allows artists to monetize their catalogs, which are attractive long-term assets for investors in the streaming era. 
Major labels like Sony, Universal and Warner have also expanded in this line of business, alongside specialist investors Recognition Music Group and Concord Music Publishing. 
Spears shot to fame in the late 1990s but has largely stepped back from the music scene in recent years.
In 2021, a US court terminated a 13-year conservatorship that had allowed Spears's father to control her finances -- an arrangement the singer had described as abusive. 
pel/ube/bjt/sla

Global Edition

Stocks mixed as muted US retail sales spur caution

  • US retail sales showed no growth in December, according to delayed government data, undershooting expectations and adding to worries about the economy.
  • Global stocks moved without direction Tuesday as traders assessed mixed company earnings and the outlook for the tech sector ahead of key economic data releases, with lackluster US retail sales data keeping investors cautious.
  • US retail sales showed no growth in December, according to delayed government data, undershooting expectations and adding to worries about the economy.
Global stocks moved without direction Tuesday as traders assessed mixed company earnings and the outlook for the tech sector ahead of key economic data releases, with lackluster US retail sales data keeping investors cautious.
US retail sales showed no growth in December, according to delayed government data, undershooting expectations and adding to worries about the economy.
The report comes ahead of a much-anticipated US employment data scheduled for Wednesday that was pushed back from Friday owing to a brief US government shutdown. Investors will also digest inflation data later in the week.
"It's a big week for economic data, with fresh reads on the consumer, jobs, and inflation. So far, though, the tone has been disappointing," said Brett Kenwell, US investment analyst at eToro.
"Volatility has returned to Wall Street, but it isn't hitting everything equally," Kenwell added. "Cryptoassets, precious metals, software, and broader tech have been whipsawed, while other areas have held up well."
The Dow edged to a fresh all-time record for the third straight day, while both the S&P 500 and Nasdaq retreated Tuesday.
In Europe, Paris ended just in the green but Frankfurt and London lost around a quarter of one percent at the close.
Shares in Gucci owner Kering jumped 11 percent to top the Paris CAC 40, after its earnings beat estimates despite net profit plunging. 
In London, oil giant BP's stock fell almost six percent after it suspended share buybacks and posted a sharp drop in annual net profit. 
Shares in British drugmaker AstraZeneca advanced two percent after it reported a jump in net profit thanks to strong cancer drug sales.
In Asia, Tokyo climbed more than two percent to a fresh record, building on gains seen after Prime Minister Sanae Takaichi's stunning parliamentary election triumph.
Analysts say she has a clear mandate to pursue an expansionist fiscal policy to spur growth, though many warn that adding to Japan's massive public debt would alarm investors, threatening both government bond yields and the yen.
Oil prices slipped as traders tracked Monday's strong session on Wall Street, where tech firms Microsoft, Meta and Nvidia led the charge.
"The past week has undoubtedly highlighted the fact that there will be both winners and losers from AI," said Joshua Mahony, chief market analyst at Scope Markets.
Investors remain concerned about the vast sums of cash pumped into the artificial intelligence sector, with questions being asked about when profits will be realized, if at all.

Key figures at around 2115 GMT

New York - Dow: UP 0.1 percent at 50,188.14 (close)
New York - S&P 500: DOWN 0.3 percent at 6,941.81 (close)
New York - Nasdaq Composite: DOWN 0.6 percent at 23,102.48 (close)
London - FTSE 100: DOWN 0.3 percent at 10,353.84 (close)
Paris - CAC 40: UP 0.1 percent at 8,327.88 (close)
Frankfurt - DAX: DOWN 0.1 percent at 24,987.85 (close)
Tokyo - Nikkei 225: UP 2.3 percent at 57,650.54 (close)
Hong Kong - Hang Seng Index: UP 0.6 percent at 27,183.15 (close)
Shanghai - Composite: UP 0.1 percent at 4,128.37 (close)
Euro/dollar: DOWN at $1.1899 from $1.1914 on Monday
Pound/dollar: DOWN at $1.3644 from $1.3693
Dollar/yen: DOWN at 154.31 yen from 155.88 yen
Euro/pound: UP at 87.18 pence from 87.00 pence
Brent North Sea Crude: DOWN 0.4 percent at $68.80 per barrel
West Texas Intermediate: DOWN 0.6 percent at $63.96 per barrel
bur-jmb/des

economy

Macron wants more EU joint borrowing: Could it happen?

BY FRéDéRIC POUCHOT

  • But Macron repeated his long-standing call for more joint debt in an interview with several European newspapers released on Tuesday.
  • French President Emmanuel Macron has revived the idea of joint EU borrowing that has long been divisive in the European Union, although the bloc has shifted its position on the issue to head off several crises.
  • But Macron repeated his long-standing call for more joint debt in an interview with several European newspapers released on Tuesday.
French President Emmanuel Macron has revived the idea of joint EU borrowing that has long been divisive in the European Union, although the bloc has shifted its position on the issue to head off several crises.
The EU has turned to common loans several times: to finance the post-Covid recovery, rearmament and aid to war-torn Ukraine.
But Macron repeated his long-standing call for more joint debt in an interview with several European newspapers released on Tuesday.

From eurobonds to EU debt

"Now is the time to launch a common borrowing capacity for these future expenditures, future-oriented eurobonds," the French president said, using a term that was once considered taboo in Europe because of the opposition of so-called frugal states like Germany and the Netherlands.
He has repeatedly made the appeal, saying it is a necessary move for Europe if it wants to invest more and ramp up its competitivity.
Eurobonds refer to common bonds issued by EU states, while joint borrowing is the catch-all term for debt issued with liability shared by governments.
Eurobonds have come up when Europe has faced major challenges. 
They were proposed in 2010 during the eurozone crisis but were rejected at the time because they involved pooling national debts, which was categorically rejected by EU states with stronger finances.
Then it resurfaced in 2020 through "coronabonds" to finance the European economy devastated by the coronavirus pandemic.
This was again rejected for the same reason but in July 2020, EU states agreed to jointly borrow hundreds of billions of euros backed by the European Union budget rather than being the responsibility of individual member states.

A solution used more and more

Rather than eurobonds, joint debt is "becoming more and more standardised" especially since the loans to finance the coronavirus pandemic recovery, Nicolas Veron, co-founder of the Brussels-based Bruegel think tank, told AFP.
The EU had an 800-billion-euro ($960 billion) recovery fund to support states' economies hit hard, and help their green and digital transitions.
Europeans also resorted to EU borrowing last year for the SAFE (Security Action for Europe) scheme to provide EU countries with 150 billion euros of loans at lower rates to help them rearm.
And late last year, EU states agreed to provide a 90-billion-euro "reparations loan" to Ukraine through the issuance of bonds and the bloc will also pay the interest on the loan.
Veron said so far the EU has used the European budget and in particular unspent sums to provide guarantees that the debt will be repaid.

Less division

EU states' positions have changed and "become more fluid", Veron said.
France has seen its public finances substantially deteriorate, Germany is going on a bumper borrowing spree while countries previously on the brink of bankruptcy like Greece have spectacularly restored their finances.
But the European economy is lagging behind China and the United States, and EU leaders want to beef up the bloc's competitivity, and catch up with rivals in the fields of artificial intelligence, energy and defence.
And for this it needs extra investment of up to 800 billion euros a year, according to former European Central Bank chief Mario Draghi in his 2024 report on the EU economy that is guiding leaders on what steps to take.
"This doesn't mean there is consensus on common borrowing that Macron calls for, but the situation today is very open," Veron said.
But true to form, Germany slapped down Macron's suggestion.
"It is unacceptable to demand more money without implementing reforms" because "European debt is not free either", a German government source told AFP.
fpo/jca/eb/raz/del/gv

Amazon

Europe's Ariane 6 to launch Amazon constellation satellites into orbit

BY OLGA NEDBAEVA

  • Rival Starlink, meanwhile, has nearly 9,400 satellites.
  • An enhanced version of Europe's Ariane 6 rocket will blast off Thursday to launch 32 satellites into orbit, forming part of the Amazon Leo network, which it hopes will rival Elon Musk's Starlink.
  • Rival Starlink, meanwhile, has nearly 9,400 satellites.
An enhanced version of Europe's Ariane 6 rocket will blast off Thursday to launch 32 satellites into orbit, forming part of the Amazon Leo network, which it hopes will rival Elon Musk's Starlink.
The launch, scheduled at 1645 GMT, will be a first for Amazon Leo, formerly known as Project Kuiper, from Europe's spaceport in Kourou, French Guiana, on the northeastern coast of South America. 
US firm Amazon, founded by billionaire Jeff Bezos, is the main commercial partner for the Ariane 6, despite the latter being touted as a symbol of European sovereignty in the sector.
"Over time a sovereign European launcher cannot be primarily dependent on foreign markets," warned Ludwig Moeller, director of the European Space Policy Institute (ESPI). 
Foreign partners "may negotiate priority handling backed by economic power or which may become unpredictable or inaccessible without notice, given the current geopolitical environment and trade wars," he told AFP.
But in the absence of European commercial customers -- many of whom work with Musk's SpaceX -- the Amazon partnership is crucial.
Four out of five anticipated launches took place in 2025 following Ariane's inaugural 2024 flight, unprecedented for a new launcher, according to ArianeGroup president Marc Sion.
Although Ariane 6 is eventually expected to carry out 10 launches per year, Pierre Lionnet, Eurospace research director, noted that at this stage this would not be possible without commercial customers like Amazon.
- Expansion - 
To take on Amazon Leo's 32 satellites, the Ariane 6 has been upgraded with four strap-on boosters, instead of the two used on the first five flights. 
It marks "our largest payload that we have launched to date," Martijn Van Delden, head of commercial development for Europe at Amazon Leo, told AFP. 
The upgrade is "impactful" by being more cost-effective and broadening fast internet networks to more customers, he said, noting it also "strengthens" the European space industry. 
With 175 satellites already in orbit, Amazon Leo aims to expand its constellation to 3,200. 
Rival Starlink, meanwhile, has nearly 9,400 satellites.
"We're looking to then increase the payload every time we have a new mission, especially as more powerful boosters come online on Ariane 6," Van Delden said. 
The rollout of its parent project, Amazon Leo, however, has faced challenges and delays. 
"Deploying 32 satellites is more complicated than deploying one -- you have to separate them one after another," Lionnet explained.
Long-term investment is expected to amount to billions of euros to the European space sector. 
"If things go well here, it will help build market confidence," said Philippe Clar, ArianeGroup's head of launchers.
neo/uh/nth/giv/rlp/ks/st

euro

Could the digital euro get a green light in 2026?

BY RAZIYE AKKOC

  • There is renewed optimism that the European Parliament could really take that step this year after lawmakers on Tuesday expressed their support for the project.
  • The push for a digital euro has gained greater urgency as Europe seeks to bolster its financial sovereignty, with hopes the proposal will move forward this year after European lawmakers Tuesday backed the plans.
  • There is renewed optimism that the European Parliament could really take that step this year after lawmakers on Tuesday expressed their support for the project.
The push for a digital euro has gained greater urgency as Europe seeks to bolster its financial sovereignty, with hopes the proposal will move forward this year after European lawmakers Tuesday backed the plans.
The electronic version of the money used in the 21-nation currency area would be available to use free of charge in shops, online or from person to person.
Supporters say it would let Europeans make online payments without relying on US payment systems -- as Europe ramps up efforts to break its dependence on foreign firms including US giants such as Visa and Mastercard.
Critics fear it would allow governments to surveil citizens' payments or even cut them off from the money supply.
First suggested by the European Central Bank (ECB), the project has been some six years in the making.
The EU executive formally proposed a digital euro in June 2023 but any law to make it a reality needs the support of member states and European lawmakers.
EU countries in December gave their green light, putting pressure on lawmakers.
There is renewed optimism that the European Parliament could really take that step this year after lawmakers on Tuesday expressed their support for the project.
"The introduction of a digital euro... is essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market," an amendment backed by lawmakers said.

Not cash replacement: Lagarde

ECB chief Christine Lagarde on Monday sought to assuage privacy fears, telling EU lawmakers that the bank "would not have access to personal data".
And while a digital currency has no physical version and does not require the intermediary of a commercial bank, Lagarde insisted it was in "no way intended to replace cash" as she urged lawmakers to move forward.
After US President Donald Trump's threats -- from strong-arming Europe on trade to pushing to seize Greenland -- Europe fears it is vulnerable and must be more independent in strategic sectors like defence and tech.
The digital euro is part of the answer, say dozens of economists who called it an "essential safeguard of European sovereignty" in an open letter in January.
Lagarde echoed their thinking, saying: "It will be built on a fully European infrastructure, avoiding an excessive dependency on foreign providers for payment systems that are critical to the functioning of our economy."
EU right-wing lawmaker Johan Van Overtveldt expressed scepticism, although he acknowledged the domination of only a few companies for payment systems.
"I'm still a little bit sceptical whether the digital euro is the best answer, but we are good at finding compromises here in this house," he said during a parliamentary debate on Monday in Strasbourg, France.

'Pan-European, sovereign' solution

The concerns about a digital euro are not limited to privacy.
European banks are wary that a digital euro could reduce demand for their online and electronic banking services, especially since some of them banded together to launch their own payment system Wero.
French liberal MEP Gilles Boyer said a private European payment solution would be welcome, but Europe wasn't going to "do nothing and wait again for decades".
"When it comes to payments in Europe we have a choice. Do nothing and remain totally dependent on American players. Or provide a pan-European, sovereign, public solution," Boyer told AFP.
The ECB says that if the parliament backs the digital euro this year, the currency could be issued during 2029.
In the meantime, the ECB will launch a pilot scheme in 2027.
jpl-raz/ec/gv

Telefonica

Spain's Telefonica sells Chile unit in Latin America pullout

  • The company booked a net loss of 1.08 billion euros ($1.3 billion) between January and September 2025, weighed down by losses linked to asset sales in Latin America.
  • Spanish telecoms giant Telefonica announced the sale of its Chilean unit for $1.2 billion on Tuesday in its push to leave Latin America and concentrate on core markets elsewhere.
  • The company booked a net loss of 1.08 billion euros ($1.3 billion) between January and September 2025, weighed down by losses linked to asset sales in Latin America.
Spanish telecoms giant Telefonica announced the sale of its Chilean unit for $1.2 billion on Tuesday in its push to leave Latin America and concentrate on core markets elsewhere.
Once a jewel in the crown of public Spanish companies, debt-laden and loss-making Telefonica has adopted a strategic shift focusing on Britain, Germany, Spain and Brazil.
Its subsidiary Inversiones Telefonica Internacional Holding transferred all of Telefonica Chile's capital to French holding company NJJ Holding and Luxembourg-based telecoms operator Millicom, the company said in a statement submitted to Spain's stock market regulator.
An additional payment of $150 million was possible "depending on the possible occurrence of certain events in the Chilean telecommunications market", the statement added.
The transaction lengthens a list of Latin American divestments in recent years including Colombia, Argentina, Peru, Costa Rica and Guatemala.
The company booked a net loss of 1.08 billion euros ($1.3 billion) between January and September 2025, weighed down by losses linked to asset sales in Latin America.
Telefonica Chile's debt stood at 479 million euros at the end of last year.
A voluntary departure plan is set to shed at least 4,500 jobs in Spain, around one quarter of Telefonica's workforce in the country.
rbj/imm/ds/cw

retail

US retail sales flat in December as consumers pull back

BY BEIYI SEOW

  • From a year ago, retail sales were up 2.4 percent in December, also a cooling from November's growth rate. bys/des
  • US retail sales showed no growth in December, according to delayed government data released Tuesday, missing analysts' expectations amid heightened scrutiny of the American consumer's appetite -- a key driver of the world's biggest economy.
  • From a year ago, retail sales were up 2.4 percent in December, also a cooling from November's growth rate. bys/des
US retail sales showed no growth in December, according to delayed government data released Tuesday, missing analysts' expectations amid heightened scrutiny of the American consumer's appetite -- a key driver of the world's biggest economy.
Overall sales were flat on a month-on-month basis at $735 billion, Commerce Department data showed.
This was down from November's 0.6 percent growth, which saw a boost from the year-end holiday shopping season.
But spending appeared to lose steam, undershooting expectations of economists surveyed by Dow Jones Newswires and The Wall Street Journal who instead expected growth of 0.4 percent.
The Commerce Department's report showed declines across various categories including auto dealers, furniture stores and electronics stores, as well as at restaurants and bars.
Sales at auto dealers slipped by 0.2 percent from the prior month, while those at furniture stores fell by 0.9 percent. Restaurant and bar sales inched down by 0.1 percent.
But consumers continued to spend on essentials like groceries.
"Consumer spending has finally caught up with consumer sentiment, and not in a good way," said Chris Zaccarelli, chief investment officer of Northlight Asset Management.
For months, Zaccarelli said, households continued spending despite worries about rising costs.
But the latest data indicate that consumers are no longer relentlessly stepping up their expenditures, he said.
The question now is whether the shift is a temporary one. This could be the case if the labor market remains resilient and consumers see more cash in their pockets from measures under President Donald Trump's "One Big Beautiful Bill Act."
Otherwise, "it could be the canary in the coalmine that signals a more serious slowdown," said Zaccarelli.

'Starting to tire'

A consumption slowdown, if it took hold, would hit at the key driver of the US economy, with consumer spending accounting for more than two-thirds of GDP.
As of January, US consumer confidence plunged to its lowest level since 2014 according to The Conference Board.
Economist Oliver Allen of Pantheon Macroeconomics said December's weak retail sales figure and downward revisions to earlier months' numbers "provide clearer signs that consumers are starting to tire."
He noted that the trend for auto sales now looks "flat-to-falling," while a dip in food service sales "rounds off a relatively weak quarter."
Allen expects the pace of spending growth in the second half of 2025 to be unsustainable.
"Growth in real incomes has slowed to a crawl recently, in part due to the weakness in the labor market," he said.
"Households only were only able to increase their spending by as much as they did by saving far less."
From a year ago, retail sales were up 2.4 percent in December, also a cooling from November's growth rate.
bys/des

steel

ArcelorMittal confirms long-stalled French steel plant revamp

  • "If we want to build cars and infrastructure in our Europe, we need to produce European steel and less carbon-intensive steel," Macron said while meeting some of the site's 3,200 employees.
  • ArcelorMittal said Tuesday that it would build a low-carbon electric furnace at its steel mill in northern France, after months of wrangling with officials over the project's economic viability.
  • "If we want to build cars and infrastructure in our Europe, we need to produce European steel and less carbon-intensive steel," Macron said while meeting some of the site's 3,200 employees.
ArcelorMittal said Tuesday that it would build a low-carbon electric furnace at its steel mill in northern France, after months of wrangling with officials over the project's economic viability.
Unions feared the company would drop the plan announced two years ago to "decarbonise" the Dunkirk site by replacing two coal-fired furnaces with electric arc models.
But with President Emmanuel Macron in attendance, Arcelor executives said 1.3 billion euros ($1.55 billion) would be invested to replace one of the coal furnaces with an electric model coming online in 2029.
"If we want to build cars and infrastructure in our Europe, we need to produce European steel and less carbon-intensive steel," Macron said while meeting some of the site's 3,200 employees.
Half of the funding for the revamp will come from Energy Efficiency Certificates (CEE), a French investment programme financed by contributions from energy suppliers.
"With this strategic investment, ArcelorMittal confirms... its committment to France and Europe," the company's head of flat steel products in Europe, Reiner Blaschek, said during Macron's visit.
The company has been pressing European officials to protect the steel sector as it faces intense competition, in particular from Asian rivals not subject to strict emission regulations.
While posting a rise in 2025 operating profit to $2.9 billion this week, it welcomed in particular reforms to an EU "carbon tax" to offset the CO2 emissions of foreign firms
Arcelor's Dunkirk site is among the 50 biggest industrial sources of greenhouse gases in France, the government says.
With employees worried of job cuts if Arcelor scales back its European operations, leftist lawmakers have proposed nationalising the French operations, with a bill set for debate in the Senate on February 25.
"I must thank President Macron and the French government who -- very early on -- understood the challenges the European steel industry was facing," Arcelor's CEO Aditya Mittal said in a statement.
"Their support, and in particular their efforts to drive changes to the mechanisms defending the steel market, will benefit the entire steel industry in Europe, starting here in Dunkirk."
cln-cnp/js/cw

protest

Bumper potato harvests spell crisis for European farmers

BY SOFIA BOUDERBALA

  • - Farmers urged to reconsider - While that suggests the European potato sector is not under threat in the long-term, farmers are still feeling the immediate consequences.
  • Farmers across Europe are protesting amid one of the most plentiful potato harvests in years, as the unintended consequences of US tariffs and increased competition drive down prices.
  • - Farmers urged to reconsider - While that suggests the European potato sector is not under threat in the long-term, farmers are still feeling the immediate consequences.
Farmers across Europe are protesting amid one of the most plentiful potato harvests in years, as the unintended consequences of US tariffs and increased competition drive down prices.
More than twenty tonnes of potatoes were dumped in front of the National Assembly in Paris last month, heaped into piles and peppered with French and trade union flags, in a vivid display of farmers' frustrations.
"It costs us less to give these potatoes to Parisians than to store them ourselves," Denis Lavenant, a farmer from the Yvelines region, told AFP. 
Belgian farmers also handed out potatoes to passers-by on a Flanders highway, coupled with leaflets denouncing crashing prices and EU free trade agreements. 
The sector is facing a "real challenge this year", Francois-Xavier Broutin, the director of economic affairs at CNIPT, which represents the French potato industry, told AFP. 
The main reason, he said, was "the imbalance between supply and demand".

French fry trade wars

The North-Western European Potato Growers (NEPG) network, which brings together the four leading European producers (Germany, France, Belgium, and the Netherlands), has been warning about overproduction on the continent for months. 
In these countries, which account for two-thirds of European production, the volumes harvested in 2025 are approaching 30 million tonnes, a 10 percent increase year-on-year. 
"What's unusual about this season is that the harvest is abundant in all the major producing countries," said Boutin, who added that Germany, the leading European producer, is having its "best harvest in 25 years".
But with demand weakening across the continent, that increase in supply has been cause for concern rather than celebration.
Demand has dropped, the NEPG says, due to several factors: Weaker demand for frozen french fries after US tariffs imposed by President Donald Trump; "a strong euro against the dollar" hurting European exports overall; and increased production from foreign competitors including China, India, Egypt and Turkey. 
The growers' network claims that in the past two years, China and India, the world's two leading producers, have "increased their frozen French fry exports to neighbouring countries tenfold," while EU exports declined. 
For Broutin, however, the crisis is only temporary, as "global demand continues to rise," which he believes will eventually catch up to increasing potato volumes. 

Farmers urged to reconsider

While that suggests the European potato sector is not under threat in the long-term, farmers are still feeling the immediate consequences.
At the end of last year, the NEPG network bluntly asked European farmers if they were ready to "produce while losing money".
Two months later, as the March-April planting season approaches, there are clear signals that farmers may have to reconsider how much land they will dedicate to potatoes.
In France, the UNPT, the main producers' association, is denouncing both a decline in the number of contractual agreements, which would guarantee farmers a price negotiated in advance, and a 25 percent drop in the contract prices offered. 
The price of a tonne of Fontane potatoes, one of the main cultivated varieties, is expected to drop to around 130 euros in 2026 from 180 euros last year, according to the UNPT. 
sb/mdz/uh/nth/ks/st

unions

Unions rip American Airlines CEO on performance

  • The unions are also frustrated with the carrier's handling of the recent Winter Storm Fern, which battered the company's hubs in Dallas and Charlotte.
  • American Airlines CEO Robert Isom is facing pressure from labor unions frustrated with the carrier's financial performance and handling of recent weather disruptions.
  • The unions are also frustrated with the carrier's handling of the recent Winter Storm Fern, which battered the company's hubs in Dallas and Charlotte.
American Airlines CEO Robert Isom is facing pressure from labor unions frustrated with the carrier's financial performance and handling of recent weather disruptions.
The airline's union for flight attendants issued a "no confidence" vote in Isom on Monday, while the pilots' union amplified a demand to meet with American's board of directors after describing conversations alone with management as fruitless. 
"We're just not hearing what the long-term strategy is," said Dennis Tajer, spokesman for the Allied Pilots Association (APA), which headlined a recent message, "We Need Decisive Action."
Isom, a board member, would be expected to join the meeting, said Tajer, adding that the union is not seeking Isom's ouster.
Isom told APA President Nick Silva that it was "more appropriate" for him to meet with the union to discuss pilot concerns, according to a letter from Isom in response to the APA's request to speak with the board.
"The Board and I are aligned with you in the desire to make American the strongest airline possible in every respect," Isom said, adding that he is determined to "return American to its rightful place atop the industry."
But APA reiterated its demand for a meeting with the full board, saying a conversation with the board was the way to address "the very real concerns our pilots have with the current trajectory of our company."
In 2025, American Airlines reported profits of just $111 million. United Airlines made $3.4 billion in profit last year, while Delta Air Lines reported profits of $5.0 billion.
The weak results translate into lower bonuses for employees under American's profit-sharing plan.
Tajer said some of the gap is because a greater share of American's business is domestic, which has underperformed compared with international travel.
But some of American's problems have been self-inflicted. In 2024, American scrapped an attempted revamp of its corporate booking system, denting performance.
The unions are also frustrated with the carrier's handling of the recent Winter Storm Fern, which battered the company's hubs in Dallas and Charlotte.
The storm had led American to cancel more than 9,000 flights, making it the "largest weather-related operational disruption in our history," Isom said on January 27 conference call.
But the unions say the carrier was poorly prepared for the bad weather, which left workers stranded away from homes, sleeping in airports and placed on hold for six hours or more.
"When the recent winter storm hamstrung our operations to the point where flight attendants were sleeping on airport floors, Robert Isom's response was that it was just 'part of our job'," said Julie Hedrick, president of the Association of Professional Flight Attendants.
"His tone-deaf leadership shows a complete disregard for the human element and is actively harming both American Airlines and the people who keep it running every day."
jmb/msp

currency

EU lawmakers back plans for digital euro

  • "The introduction of a digital euro... is essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market," one of the amendments said, approved by 438 lawmakers with 158 against.
  • EU lawmakers backed plans Tuesday for a digital euro, a project that has split the bloc but has gained greater urgency as Europe seeks to bolster its financial sovereignty. 
  • "The introduction of a digital euro... is essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market," one of the amendments said, approved by 438 lawmakers with 158 against.
EU lawmakers backed plans Tuesday for a digital euro, a project that has split the bloc but has gained greater urgency as Europe seeks to bolster its financial sovereignty. 
Lawmakers voted in favour of two amendments to an annual report on the European Central Bank (ECB), expressing support for the introduction of the digital currency.
The electronic version of the money used in the 21-nation currency area would be available to use free of charge in shops, online or from person to person.
"The introduction of a digital euro... is essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments and support the integrity and resilience of the single market," one of the amendments said, approved by 438 lawmakers with 158 against.
First suggested by the ECB, the project has been some six years in the making.
The EU executive formally proposed a digital euro in June 2023 but any law to make it a reality needs the support of member states and European lawmakers.
EU countries in December gave their green light, putting pressure on lawmakers to grant their formal approval too.
Tuesday's vote is only an expression of support at this stage but shows where lawmakers currently stand on an issue that has divided Europe. 
Supporters say it would let Europeans make online payments without relying on US card companies or payments systems -- as Europe ramps up efforts to break its dependence on foreign firms including US giants such as Visa and Mastercard.
Critics fear it would allow governments to surveil citizens' payments or even cut them off from the money supply.
ECB chief Christine Lagarde on Monday sought to assuage privacy fears, telling EU lawmakers that the bank "would not have access to personal data".
She also said it was in "no way intended to replace cash".
"Cash is queen," Lagarde said, as she urged lawmakers to move forward.
Lagarde also echoed sovereignty arguments, saying: "It will be built on a fully European infrastructure, avoiding an excessive dependency on foreign providers for payment systems that are critical to the functioning of our economy."
jpl-raz/ec/js