European economic policy and political positioning are under renewed scrutiny as senior figures and institutions reassess ties, industrial strategy and regulatory priorities. Labour’s Rachel Reeves argues that closer European Union alignment offers the “biggest prize” for the United Kingdom’s trade and economic growth, highlighting a push for stronger cross-channel economic integration. In parallel, a European focus on a “Made in Europe” industrial strategy is framed as essential to defending strategic interests and levelling the economic playing field in a more volatile global environment, underscoring concerns about competitiveness and resilience.
Corporate and sector-specific developments reflect shifting consumer behaviour and regulatory pressure. Oatly has been banned from using the word “milk” to market plant-based products in the United Kingdom, illustrating ongoing friction over labelling and the status of alternative proteins. Heineken plans to cut 6,000 jobs as people drink less beer, revealing strain in traditional beverage markets. A United Kingdom wealth manager and a price comparison site have seen their shares fall amid artificial intelligence fears, signalling investor anxiety about how rapid advances in automation and artificial intelligence could reshape financial services and digital platforms.
Travel and governance indicators point to broader realignments. Tui reports that Europeans are shunning the United States as Emirates and Asia travel prove popular, suggesting a rebalancing of long-haul tourism flows. A global index shows the United Kingdom and United States sinking to new lows in perceived corruption, dealing a reputational blow to both countries. At the same time, European Union regulators are sharpening their stance on big technology and platform design, with Brussels threatening action over Meta allegedly blocking rival artificial intelligence chatbots from WhatsApp and a preliminary ruling that TikTok’s “addictive design” may push users into “autopilot mode,” fuelling concern for children and vulnerable adults. These moves sit alongside warnings against rolling back the green agenda to revive a faltering economy and mounting alarm over a “dangerous dependence” on critical mineral imports, which auditors say could render renewable energy targets “unrealistic” unless Europe significantly scales up mining, refining and recycling capabilities.
Industrial and supply chain pressures are intensifying across key sectors. Only seven new petrol-powered cars were sold in Norway in January, a stark indicator of the electric vehicle transition’s pace in one of Europe’s most advanced markets. Yet Stellantis has taken a €22bn hit after “overestimating” how quickly drivers would shift to electric vehicles, exposing forecasting risks in auto manufacturing. Travel infrastructure also faces stress, with fears of summer disruption due to new biometric checks at European borders and calls for the European Union to instruct authorities to stand down EES controls if needed to avoid severe delays. In pharmaceuticals, Novo Nordisk has forecast a sharp drop in revenue for 2026, blaming lower United States drug prices, patent issues and rising competition, which has driven a plunge in its share price.
Resource security and geopolitical finance feature prominently as European and allied governments seek to reduce exposure to Russian energy and Chinese dominance in critical materials. A damning European Union report lays bare the bloc’s reliance on imports of critical minerals such as rare earths, while about 20 countries including G7 states are due to meet to discuss a critical minerals alliance, including calls for the United States to guarantee a minimum price for rare earths. Campaigner Bill Browder urges sanctions on refineries in China, India and Turkey that buy Russian crude oil, arguing that these plants are funnelling up to $1bn a day to the Kremlin. Together, these developments show European policymakers and businesses grappling with the intersection of security, climate goals and economic competitiveness.
