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European Edition
20th October 2025
 
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THE HOT STORY

ECB taken to court over staff 'censorship'

The ECB’s staff union IPSO has filed a lawsuit with the European Court of Justice, accusing the bank of silencing representatives and violating free expression rights. The case stems from letters sent to union leader Carlos Bowles after he publicly criticised a “culture of fear” at the ECB. The bank argues Bowles breached loyalty duties, while IPSO says this suppresses valid concerns and media engagement. IPSO claims retaliation fears have already led to cancelled interviews. ECB management denies wrongdoing, asserting adherence to EU staff rules, but IPSO warns that censorship undermines trust and institutional credibility.
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WORKFORCE

EU moves to reform internship standards

The EU is advancing legislation to regulate internships, mandating paid, time-limited roles with social protection. The European Parliament’s Employment Committee approved the reforms, which exclude mandatory academic placements. A contract will be required, detailing duties, compensation, and learning goals, with internships capped at six months. Nearly 50% of EU interns are unpaid, prompting concern over exploitation. Cyprus, among others, sees widespread unpaid placements. The proposal targets repeat internships with the same employer and enforces transparency, anonymous reporting, and designated support staff. If approved by Parliament, negotiations with the Council will begin to finalise the directive.

Christmas job searches at nine-year high

The tightening UK labour market has driven Christmas job searches to a nine-year high, up 28% from last year, with growing numbers of professionals and graduates seeking seasonal roles as a pathway to permanent employment. Petra Tagg of Manpower UK estimates that a quarter of applicants are recent graduates, while John Lewis has seen a 50% rise in applicants for its 13,700 festive positions. Jo Rackham, interim chief people officer for the John Lewis Partnership, said: "There shouldn’t be any stigma about seasonal roles - they're so important and they both require and teach some really valuable skills." Experts also highlight that seasonal roles, particularly in retail, logistics, and hospitality, can help employers identify future high-performing staff. Tesco is hiring for 28,500 festive roles, with Elzbieta Golab, group people services director, describing Christmas jobs as a "key pipeline for our future leaders."

Belgium eyes tax cuts to curb exodus

Belgium’s planned tax reforms could slow the daily outflow of 52,000 workers to Luxembourg, says Walloon MP Olivier de Wasseige. The federal government aims to raise the tax-free allowance to €15,300 by 2029, addressing Belgium’s high 50% tax rate on €50,000 salaries. Staff shortages are critical in Wallonia, which has 40,000 job vacancies.

Zero income tax law for Polish parents with two children

Poland has enacted a new law eliminating personal income tax (PIT) for parents with at least two children. The reform, introduced by President Karol Nawrocki, targets families earning up to 140,000 zloty (€32,973) annually. The presidency estimates that families will gain approximately 1,000 zloty (€235) monthly. However, tax experts warn that the benefits may primarily favour wealthier families. Piotr Juszczyk, chief tax adviser at inFakt, noted that low-income families would see minimal gains. Public consultations showed 76% support for the new law.

Gen Z quits banking for start-ups

Generation Z is increasingly leaving banking jobs for entrepreneurial opportunities and flexible work, according to a KPMG survey. Nearly 50% of financial services executives reported a rise in Gen Z departures over the past year, with 54% in banking. The main reasons include a preference for start-ups (42%), self-employment (35%), and the desire for flexibility or remote work (34%). Cost of living concerns also influenced their decisions.
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HIRING

Ministers consider hiring subsidies for youth

The UK Government is considering financial support to encourage companies to hire younger workers, aiming to reduce the number of 16- to 24-year-olds not in education, employment, or training (NEETs). Current tax incentives for hiring under-21s and apprentices may be expanded to include workers up to 24. Work and Pensions Secretary Pat McFadden prioritises addressing the rising NEET figures. The Government's "youth guarantee" policy promises paid work or training for young people on universal credit for 18 months, with sanctions for non-compliance. 
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ECONOMY

Ukraine war hits Finnish SMEs hard

Over 40% of Finnish SMEs report falling order volumes due to the ongoing war in Ukraine, according to a survey by the Federation of Finnish Enterprises. Nearly 30% say the conflict’s impact has worsened, particularly in eastern Finland and the construction sector. The October poll, involving 1,175 SME representatives, underscores persistent economic strain. These findings came after a meeting between Presidents Trump and Zelensky, and just ahead of Finland’s entry into NATO’s PURL arms initiative, which supports Ukraine with U.S.-sourced weapons.
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REMUNERATION

Centrica and others named for underpaying staff

The Department for Business and Trade (DBT) has named nearly 500 employers, including Centrica, Euro Garages, and Holland & Barrett, for underpaying staff. These companies collectively owe over £10m, with 42,000 workers receiving more than £6m in repayments. Business Secretary Peter Kyle stated: "Our Plan to Make Work Pay cracks down on those not playing by the rules." Euro Garages topped the list, underpaying 3,317 workers by over £824,000. All firms cited past payroll issues and claimed to have rectified the problems.
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WORKPLACE

Could rejection therapy alter workplace risk taking?

Rejection therapy, a social media trend, is now influencing workplace behaviour. Professionals like Colleen McFarland say it builds confidence, while critics caution it lacks structure. Originator Jia Jiang has even trained teams at major firms.
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CORPORATE GOVERNANCE

Giorgio Armani names Giuseppe Marsocci as chief after founder’s death

Giuseppe Marsocci, Giorgio Armani’s deputy managing director, has been promoted to chief executive of the Italian fashion group following the death of its eponymous founder last month. Silvana Armani, Giorgio's niece, has been named as vice president. In his will, Mr Armani specified that 15% of the company be sold within 18 months of his death, with a further share to be sold in the following year. He named LVMH, L’Oréal, and EssilorLuxottica as preferred bidders.

Porsche CEO to step down in 2026

Porsche's CEO, Oliver Blume, is set to step down next year as the company aims to end the dual leadership arrangement with its parent, Volkswagen, in response to investor pressure. Under Blume's leadership, both automakers have faced significant challenges, including a drop in share prices—over a third for Volkswagen and more than half for Porsche—and struggles in the Chinese market where sales have plummeted. The supervisory board has reportedly identified a successor, with an official vote expected on October 24, amid ongoing restructuring efforts within both companies.
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INTERNATIONAL

Houthi rebels detain U.N. staff in Yemen

On Sunday, Iranian-backed Houthi rebels detained two dozen U.N. employees in Sanaa, Yemen, following a raid on a U.N. facility. Jean Alam, a U.N. spokesman, confirmed that the detained staff included five Yemenis and 15 international workers. The Houthis released 11 others after questioning. The rebels confiscated all communications equipment from the facility. The U.N. is in contact with the Houthis to resolve the situation and restore control over its facilities. The Houthis have previously accused U.N. staff of espionage, claims the U.N. has denied.

Americans doubt job prospects under Trump

An Associated Press-NORC poll reveals that 47% of U.S. adults lack confidence in finding a good job under President Trump, a rise from 37% in October 2023. Economic concerns are mounting due to high prices for essentials like groceries and housing. Currently, only 36% approve of Trump's economic management, with many feeling financial stress. The poll indicates a growing sense of economic insecurity, particularly among younger adults, with 80% under 30 lacking confidence in home ownership.
 
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