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European Edition
16th July 2026
 
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THE HOT STORY

Portugal faces EU action over migration laws

The European Commission has initiated two infringement proceedings against Portugal for not implementing directives on migration. The first concerns the Single Amendment Directive 2024/1233, which streamlines the process for non-EU workers. Portugal missed the 21 May deadline to report on its progress. The second issue involves the Reception Conditions Directive 2024/1346, which mandates adequate living conditions for asylum seekers, with a deadline of 12 June. The Commission emphasised the importance of timely transposition for legal certainty and effective migration management, giving Portugal two months to respond.
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WORKFORCE

Economists urge action on AI risks

In an open letter, over 200 economists and AI experts, including Nobel laureates, urged immediate action to address the potential impact of artificial intelligence on the economy. Organised by Stanford University's digital economy lab, the letter warns that AI could transform the economy more rapidly than the Industrial Revolution, leading to significant job displacement. Yoshua Bengio, a computer scientist and signatory, emphasised the need for intentional choices to ensure AI benefits society, stating: "We must be intentional and make collective, democratic choices." The letter calls for the establishment of necessary incentives and institutions to guide AI development.

VW faces fewer job cuts than feared

Experts predict that Volkswagen will face fewer job cuts than previously anticipated. Ferdinand Dudenhöffer, an industry expert, stated: "I do not expect any plant closures, at most Neckarsulm." He emphasised the need for VW to engage in reasonable discussions with IG Metall, suggesting Olaf Lies as a mediator. While reports indicated up to 120,000 jobs could be lost, Frank Schwope from the Fachhochschule des Mittelstands believes the final number will be lower, estimating 30,000 to 40,000 globally. However, Stefan Bratzel warned of potential domino effects on the economy, with job losses in related sectors potentially exceeding 200,000.

Costa del Sol tourism jobs rise

Tourism continues to strengthen the economy of Mijas on Spain’s Costa del Sol, with employment reaching 7,974 in the second quarter of 2026, up 3.6% year on year. Accommodation and hospitality accounted for 5,539 jobs, including 3,983 in food and beverage services and 1,556 in accommodation. Tourism councillor Francisco Jerez said the sector can “create opportunities, sustain economic activity throughout the year and support thousands of families in Mijas”. The municipality also has 409 hospitality businesses.

ZSSK Cargo faces major job cuts

Železničná spoločnosť Cargo Slovakia (ZSSK Cargo) is set to cut around 400 jobs as part of a recovery programme aimed at saving €5m this year. The state-owned freight railway operator has faced a significant decline in business, resulting in a loss of nearly €30m last year, compared to a profit of over €6m in 2021. The exact number of redundancies will depend on negotiations with employee representatives, according to Denník N. The restructuring will impact various areas, including management positions.
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INVESTMENT

Portugal remains a top investment spot

American businesses continue to find Portugal appealing for investment, according to the Barometer of American Companies in Portugal report by the American Chamber of Commerce in Portugal and PwC. The US is now Portugal's third-largest foreign investor, with a direct investment stock of approximately €16.8bn. American firms contribute around 5% to Portugal's GDP and offer higher salaries than local employers. José Bizarro Duarte from PwC noted that while confidence is high, improvements in the investment environment are necessary to maintain competitiveness. Despite global uncertainties, the outlook for US investment in Portugal remains positive.
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LEGAL

Labour considers adding race and disability to equal pay law

Labour plans to expand equal value pay claims to enable workers to sue for race and disability discrimination. The move marks a significant shift in the legal landscape for equal pay, which lets staff bring claims against their employers for discrimination if they are paid less than those in similar jobs. Equal pay claims have already effectively bankrupted Birmingham City Council and led to lawsuits against Asda and Next, which could cost the retailers £1.2bn and £30m, respectively. Commenting on the plans, Claire Coutinho, the shadow minister for equalities, said: "All this will do is cost taxpayers and consumers more, and encourage divisive identity politics in the workplace."
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STRATEGY

Transforming the workforce: Adrem's vision

Mihaela Melenciuc, Chief Human Resources Officer at Adrem, highlighted the evolving expectations of employees in Romania's energy and infrastructure sector. She stated: "People are looking for purpose, flexibility, wellbeing, and continuous development." Adrem is focusing on digital transformation and employee engagement through initiatives like Adrem Academy, which supports ongoing learning. The company aims to balance technological advancements with human needs, ensuring employees feel connected and valued. Melenciuc emphasised the importance of adaptability and collaboration in a rapidly changing work environment, stating that successful organisations will create high-performance cultures alongside strong human connections.

Asda shakes up staff roles

Asda has announced a significant change in its operational strategy, requiring shop floor staff to take on various roles, including stock picking and shelf stacking. This shift aims to enhance flexibility across four key areas: replenishment, process, service, and picking. The company stated: "We are moving away from colleagues working exclusively within a single department." This restructuring comes amid financial struggles, with 7,500 staff laid off in the past year and a looming £1.2bn lawsuit over equal pay. Asda hopes these changes will improve service and product availability in stores.
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CORPORATE GOVERNANCE

M&C Saatchi faces uncertain future

Harwood Capital's Christopher Mills predicted that M&C Saatchi may not exist in its current form within a year. He noted that a piecemeal sale of the advertising agency is likely due to its ongoing struggles since the pandemic. Mills stated: "I would be very surprised if Saatchi was an independent company this time next year." The agency, founded in 1995, has faced significant challenges, including the recent departure of CEO Zaid al Qassab. Harwood Capital, a major shareholder, has been increasing its stake in the firm, indicating potential changes ahead.

Thames Water executives face backlash

Emma Reynolds, the environment secretary, condemned Thames Water's directors for awarding a 9.5% pay rise to its chief executive, Chris Weston, bringing his salary to over £1.16m. She described the bonuses as "outrageous" given the company's poor performance and increasing debt, which now exceeds £19.5bn. Reynolds stated: "It flies in the face of basic fairness." Thames Water's operational issues have worsened, leading to penalties of £157m. MPs are calling for the prime minister to consider special administration for the company, which serves 16 million customers.

Luxury brand leader joins Quintet board

Luxembourg-based private bank Quintet has appointed Joséphine Vérine to its board of directors. Vérine has over 30 years of leadership experience in luxury and private banking. She currently serves as senior vice president for clienteling at Louis Vuitton. Her previous roles include global client strategy director at Christian Dior and executive positions at Chanel and Giorgio Armani.
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INTERNATIONAL

US hiring recovery leaves millions behind

Nearly two million Americans have been unemployed for at least six months despite improving job growth and a 4.2% unemployment rate. Long-term job seekers represented 27.3% of unemployed people in June, close to the highest share since late 2021 and four percentage points above a year earlier. Prime-age and white-collar workers are particularly affected, including those in professional services, government, finance and information technology. Economists attribute the problem to a low-hire, low-fire labour market in which limited recruitment prevents job seekers from returning quickly. Laura Ullrich, director of economic research at Indeed, said: “I don’t anticipate it changing until we see the hires rate pick up.” Extended unemployment can exhaust savings, interrupt retirement contributions, damage career development and force workers into lower-paid roles. Some applicants report increasing employer interest, but the broader hiring rate remains subdued.

China's unemployment rate hits new low

China's surveyed urban unemployment rate decreased to 5% in June, the lowest this year, according to the National Bureau of Statistics. This marks a 0.1 percentage point drop from May and a decline from a March peak of 5.4%. The first-half average remained at 5.2%, aligning with economists' expectations for the annual target of 5.5%. Mao Shengyong, Deputy Head of the NBS, noted that the economy is stable, with key indicators within a reasonable range. The government aims to assist 25 million unemployed individuals and provide vocational training to over 50 million people by 2030.
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AND FINALLY...

Snooze control in the driverless lane

In Austin, 99 emergency calls were made regarding passengers who fell asleep in Waymo robotaxis within the first nine months of service. Remote assistants attempted to wake these passengers but often resorted to calling 911 when there was no response. Austin-Travis County Emergency Medical Services Commander Roger Patterson noted that only about 3% of these calls required hospital transport, yet they consume valuable resources. The incidents highlight challenges in the rollout of autonomous taxis, as companies face issues with passenger behaviour and emergency response protocols.
 
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