Europe saw a flurry of political and economic developments this week, from a major US–Swiss trade breakthrough to the UK government’s surprise decision to shelve a planned income tax rise.
The BBC found itself in hot water over a misleading edit of a Trump speech, prompting an apology but no payout.
And in corporate news, Novo Nordisk shareholders backed sweeping board changes, solidifying the Foundation’s influence as competition in obesity drugs intensifies.
A glance at the major developments in Europe today.
US-Swiss tariff truce
The US and Switzerland have struck a new trade deal that rolls back tariffs on Swiss imports from 39% to 15%, undoing the steep hikes put in place earlier under the Trump administration.
In return, Switzerland has agreed to pour $200 billion into the US economy by 2028, with a hefty $70 billion coming as soon as next year.
The lower tariff rate brings Switzerland in line with what the US charges EU countries, which should help calm recent trade tensions.
Industries like pharma, luxury goods, and even coffee are expected to benefit from the easing of costs and smoother cross-border business.
The White House is expected to release more details soon, but for now, the agreement already marks a big step forward for US–Swiss trade relations.
Starmer, Reeves scrap tax increase
It looks like Prime Minister Keir Starmer and Finance Minister Rachel Reeves are backing away from plans to raise income tax in the 2025 budget.
The shift comes just weeks before the budget is due, and it’s mainly because the latest fiscal forecasts turned out better than expected, meaning the government isn’t under as much pressure to hike taxes as everyone thought.
For months, people assumed Reeves and Starmer would raise income tax to plug a big hole in the public finances. But worries about how voters might react, plus some rumblings inside the Labour Party, pushed them to rethink.
Now, they’re looking at other ways to bring in revenue while still sticking to their promise not to raise income tax for working people.
BBC apologizes to Trump
The BBC has issued an apology to former US President Donald Trump after a Panorama documentary edited his January 6, 2021, speech in a way that made it look like he was urging violence.
BBC Chair Samir Shah called it an “error of judgment,” admitting that parts of Trump’s speech were spliced together in a misleading way.
But while the BBC is saying sorry, it’s not giving in to Trump’s demand for compensation. The broadcaster says there’s no basis for a defamation claim.
Trump’s legal team, however, isn’t letting it go; they’re still pushing for a full retraction, a formal apology, and damages. They’ve even threatened a $1 billion lawsuit if the BBC doesn’t comply.
Novo Nordisk approves new chair
Novo Nordisk shareholders have officially signed off on Lars Rebien Sørensen becoming the company’s new board chair at an extraordinary meeting.
Sørensen, who used to be CEO and now chairs the Novo Nordisk Foundation, will be wearing both hats going forward, which many see as a clear sign of tight alignment between the company and its biggest shareholder.
The shake-up didn’t stop there. Cees de Jong was chosen as vice chair, and two new board members, Britt Meelby Jensen and Stephan Engels, were brought in.
A few minority investors did voice concerns about how much influence the Foundation now has and whether the board is moving too quickly, especially with competition heating up in the obesity drug space.
Still, the changes sailed through with strong backing: more than 93% of shareholders voted in favor of the new board lineup.
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