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European Edition
15th May 2026
 
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THE HOT STORY

Luxembourg's unemployment costs set to soar

Luxembourg's unemployment reimbursements reached €62m in 2025, the highest in six years, as the country prepares for an EU reform that could increase costs by over €200m annually. The reform will shift responsibility for unemployment benefits to the country of last employment, impacting Luxembourg's cross-border workforce. Labour Minister Marc Spautz noted that around 70% of the reimbursements went to France. The changes may also strain Luxembourg's employment agency, Adem, which could face an additional €15.7m in operating costs and require more staff and resources.
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WORKFORCE

New law boosts income security for Dutch workers

The Tweede Kamer, the Dutch lower house, has passed a law to enhance income security for workers on flexible contracts. This legislation abolishes zero-hour contracts and closes loopholes that allowed prolonged temporary contracts. Minister of Social Affairs and Employment Hans Vijlbrief said: "This bill gives people more certainty about their working hours and income." If approved by the Senate, the law could take effect on January 1, 2028. Key changes include a guaranteed minimum number of hours and extended waiting periods for rehiring on temporary contracts. Temporary agency workers will also receive equal core employment conditions as permanent staff.
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PRODUCTIVITY

Romania lags in AI adoption

Romania ranks lowest in the EU for AI adoption, with only 5.2% of enterprises using the technology as of 2025. While the EU average is 20%, local firms face challenges due to misconceptions about costs and a lack of AI literacy. Aurelia Costache from EY Romania stated: "The challenge is no longer about access to technology, but rather about foundations, skills, and leadership attitudes." Experts warn that without significant changes in strategy and investment, Romania risks falling further behind in the global AI landscape, impacting long-term economic growth.
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STRATEGY

LinkedIn plans to lay off 5% of staff

LinkedIn has said it plans to cut about ​5% of its headcount as it reorganizes teams and focuses personnel on areas ⁠where its business is growing. Daniel Shapero, the Microsoft-owned social network's CEO, told employees in a memo on Wednesday that the firm must deliver increased impact to users and operate more profitably. He said reductions will affect a range of job functions, including engineering, product and marketing. “As part of our regular business planning, we’ve implemented organisational changes to best position ourselves for future success,” a LinkedIn spokesperson said. The layoff rationale was ​not for AI to replace jobs at the company, a source told Reuters.

China's BYD in talks with Stellantis and others about taking over Europe plants

China's BYD is talking with Stellantis and ​other European car makers to take over ‌underused factories on the continent. The world’s largest seller of ​electric vehicles is discussing potential deals to ⁠take on facilities in countries including ​Italy, BYD's Executive Vice President Stella Li ​said, adding that BYD prefers to operate the plants on its own rather than as joint ventures. “We are talking to not only Stellantis, we’re talking to other companies too,” Li said. “We are looking for any available plant in Europe because we do want to utilise this kind of spare capacity.”
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WORKPLACE

JP Morgan could reconsider London HQ

JP Morgan chief executive Jamie Dimon has warned the bank could reconsider plans for its proposed £3bn London headquarters if a future Labour leader adopted a more hostile stance towards the banking sector. While praising prime minister Sir Keir Starmer and finance minister Rachel Reeves for maintaining a supportive business environment, Dimon said further tax burdens on lenders could prompt the US banking giant to rethink the development at Canary Wharf in east London, which is intended to house more than half of its 23,000 UK employees.
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LEGAL

Law firm must pay DJ nearly €17m over faulty tax advice

US law firm Greenberg Traurig must pay Dutch DJ Tiësto nearly €17m in damages for incorrect advice about US tax rules it gave him in 2012. The ruling by the Amsterdam appeals court overturns a lower court decision that had found no harm from the error. The court also ordered the firm to cover nearly €35,000 in legal costs. Tiësto, whose real name is Tijs Verwest, spent more than the limit of a certain number of days in the United States in 2012, so he became a tax resident there and was required to pay higher taxes. The faulty advice led to initially incorrect US tax filings. When Tiësto discovered the error in 2018, he disclosed it to the US tax authorities voluntarily and paid the extra tax and a penalty. Greenberg Traurig can appeal to the Netherlands’ Supreme Court.

French court rejects Amazon challenge over minimum book delivery charges

France’s highest administrative court has rejected Amazon’s challenge against the country’s minimum delivery fee for books, upholding measures designed to protect independent bookstores from online competition. The Conseil d’Etat ruled against Amazon’s attempt to overturn the €3 minimum delivery charge introduced in October 2023, which applies to book orders under €35. Amazon had argued the measure was protectionist and breached European Union law, while the French government said the policy was intended to support local booksellers after Amazon had previously charged just one euro cent for deliveries. Amazon criticised the ruling, claiming the fee had cost readers more than €100m and reduced access to books, particularly for consumers living far from physical bookstores.
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CORPORATE

Air France-KLM to change group name

Air France-KLM CEO Ben Smith has decided to change the airline group's name following the expected acquisition of Scandinavian carrier SAS. Reports indicate that the new name will not include "Air France" or "KLM" - similar to the International Airlines Group model, the parent company of British Airways and Iberia. The group aims to secure a majority stake in SAS and also plans to add TAP Portugal to its portfolio. An Air France-KLM spokesperson said: "It is completely logical to conduct the discussion about a new name since we are planning to add new brands."
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ECONOMY

ECB weighs response to Iran war's impact on inflation

European Central Bank (ECB) President Christine Lagarde has said policymakers face “massive uncertainty” and need “a lot more data” to understand the repercussions of the conflict in the Middle East, and the ECB is carefully considering its response to the war and the impact on inflation to ensure it acts neither prematurely nor too late. “We are constantly torn between the risk of reacting too quickly or the risk of reacting too late, and we have to find the right path to navigate our economies toward that 2% medium term inflation, which is our goal,” she said. Lagarde offered no indication as to whether the ECB will raise interest rates next month, as many expect.

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INTERNATIONAL

Increasing gap between young and older Americans' views of the job market

A Gallup World Poll has identified a significant decline in younger Americans' confidence about their job prospects - at a time when their elders remain more upbeat. Only 43% of US individuals aged 15-34 believe it's "a good time" to find a job, compared to 64% of those aged 55 and over. This is a stark contrast to the global trend: globally, the median share of younger people who say it's “a good time” to find work in their local job market is 48%, compared with 38% among older people. “It's an incredibly new phenomenon,” Benedict Vigers of Gallup says. He notes that last year was the first time in Gallup's decades of polling that young Americans were more pessimistic about the job market than their peers in other developed countries. “Has this happened in most other advanced economies? The answer is a resounding no,” Vigers says.

Japanese prefecture launches reward programme for tips on illegal workers

Ibaraki Prefecture has launched a programme rewarding individuals for reporting businesses that employ illegal foreign workers. The local government will seek to verify the information and, if it leads to enforcement action, the informant will receive a 10,000 yen reward. Ibaraki has the highest number of undocumented foreign workers in Japan. Critics, including local civic groups, argue that it could promote discrimination. Governor Kazuhiko Oigawa defended the programme, saying that addressing illegal hiring is a "fundamental responsibility" of the government.

Incheon safety drive to protect foreign industrial workers

Incheon metropolitan authorities are launching a safety campaign aimed at reducing workplace accidents among foreign workers. The "2026 Regional Serious Accident Prevention Blind Spot Elimination Support Project" addresses language barriers that hinder safety communication. Training began in April for workers from Myanmar and will extend to Filipino, Nepalese, Indonesian, and Vietnamese groups. The curriculum focuses on real industrial accidents, teaching participants about personal protective equipment and their rights under Korean labour laws. A project spokesperson said: "The goal is to maximize comprehension by removing the linguistic barriers that lead to accidents."

Mauritius targets wealth with golden visa program

Mauritius has said it expects to attract 100 high-net-worth-individuals annually through its golden visa program. The plan, which requires holders to invest at least $1m within a year of their arrival in the island nation, was set up after “multiple enquiries” from foreigners seeking to relocate with their families, Prime Minister Navinchandra Ramgoolam said. Bloomberg notes critics who argue such programs deepen inequality by giving opportunities to the rich that are denied to others. Ramgoolam said safeguards are in place to mitigate risks. “With respect to the risks of money laundering and illicit financial flows, a robust, risk-based due diligence framework is already in place.” 
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OTHER

GLP-1 drugs may improve breast cancer outcomes

Research published in JAMA Network Open indicates that GLP-1 medications may enhance long-term outcomes for breast cancer patients, particularly those with obesity or type 2 diabetes. The study analysed health records of nearly 8,000 patients diagnosed between 2006 and 2023. It found that those using GLP-1 drugs had a lower overall risk of death and a reduced chance of cancer recurrence over a 10-year period. Senior author Bernard Fuemmeler, director at VCU Massey Comprehensive Cancer Center, said: "This study suggests that GLP-1 drugs may offer protective benefits." Further research is planned through clinical trials.
 
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