Times of Malta - The Corporate Times
Economic activity in EU to regain pace through 2024 – report
Economic activity in the European Union is anticipated to gradually pick up throughout 2024 after a weak start to the year, according to the Commission’s latest economic forecast. As inflation drops across the continent, real wages are set to grow and with the labour market remaining strong, consumer spending is expected to sustain this renewed growth momentum.
Despite falling profit margins, investment is set to benefit from a gradual easing of credit conditions and the continued implementation of the Recovery and Resilience Facility.
The report acknowledges that the likely expiration of energy support measures across Member States and increased shipping costs following trade disruptions in the Red Sea may exert some upward pressure on prices. However, these pressures are not expecting to derail the overall trend of decreasing inflation. By the end of the forecast horizon, euro area headline inflation is projected to hover just above the ECB target, with EU inflation slightly higher.
The growth outlook for 2024 has been revised down to 0.9 per cent in the EU and 0.8 per cent in the euro area. In 2025, economic activity is still expected to expand by 1.7 per cent in the EU and 1.5 per cent in the euro area. EU inflation is forecast to fall by more than half, from 6.3 per cent in 2023 to 3.0 per cent in 2024 and 2.5 per cent in 2025. In the euro area, it is projected to drop from 5.4 per cent in 2023 to 2.7 per cent in 2024 and to 2.2 per cent in 2025.
Agreement on Net Zero Industry Act reached
The Council and the European Parliament have provisionally agreed on the ‘Net-Zero Industry Act’ (NZIA), a regulation aiming to bolster Europe’s net-zero technology products manufacturing ecosystem. This initiative seeks to advance the industrial deployment of net-zero technologies, leveraging the single market to reinforce Europe’s leadership in green industrial technologies. The proposed regulation aims to provide favourable conditions for investors in net-zero technology manufacturing projects, offering fast-track permits and guidance for projects identified as having substantial decarbonisation potential.
The regulation sets specific time limits for permit delivery, prioritizing quicker processing for strategic net-zero technology manufacturing projects. This framework ensures that projects adhere to safety, security and environmental sustainability criteria, along with compliance with relevant requirements.
The regulation also promotes the development of netzero acceleration valleys, fostering clusters of net-zero industrial activity to enhance the EU’s attractiveness for manufacturing and streamline administrative procedures. Furthermore, the rules governing public procurement of goods and services related to strategic net-zero technologies aim to ensure transparency and harmonization while diversifying the supply to the EU and allowing flexibility for contracting authorities.
EU Digital Services Act comes into force
February 17 brought into force the Digital Services Act (DSA), which is now applicable to all online intermediaries in the EU, marking a significant step towards creating a more transparent online environment. The DSA introduces enhanced protections for EU users against illegal goods and content on online platforms, ensuring their rights are upheld during interactions, information sharing and product purchases.
The DSA mandates that all online platforms with EU users, excluding small enterprises, implement measures to counter illegal content and services. Users are empowered to flag illegal content, and platforms are required to cooperate with specialised entities known as trusted flaggers, giving priority to their notices. The DSA also introduces safeguards for minors, banning targeted ads based on profiling or personal data.
Platforms must provide users with information about advertisements, including the reasons for their display and the advertiser’s identity. The DSA prohibits ads targeting users based on sensitive data, such as political or religious beliefs. Platforms will be required to furnish statements of reasons for content moderation decisions and publish annual reports on their moderation procedures.