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Lobbyists can easily bypass EU transparency rules to influence policy, according to a report by the European Court of Auditors (ECA). The report highlights major loopholes in the transparency register, including the lack of requirements for recording spontaneous meetings, unscheduled phone calls, and email exchanges. The ECA warns that the register risks becoming "a paper tiger" unless it is significantly strengthened. The report comes as EU institutions discuss the establishment of an Ethics Body and plan a review of the transparency register. The findings follow recent scandals involving cash-for-influence allegations and accusations of cronyism. The report emphasizes the need for new ethics rules to address acceptance of gifts, financial interests, and post-term activities. Lobbycontrol estimates that up to 29,000 lobbyists are active in Brussels, with Big Tech companies alone spending millions on lobbying efforts. The report serves as a reminder of the potential risks to the EU's reputation ahead of the upcoming European Parliament elections.

 

U.S. News

[REPORT] 2024 IT Risk and Compliance Benchmark Report

It’s that time again! Hyperproof’s fifth annual IT Risk and Compliance Benchmark Report is here. Each year, we ask over 1,000 GRC professionals about their pain points, IT risk and compliance budgets, staffing, risk management best practices, and much more to compare results from the previous year, provide an in-depth view of the market’s current state, and prepare for this year and into the future.

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The Governor of the Bank of England has predicted a “strong drop” in inflation next month despite official figures showing prices rose more quickly than expected in March. Figures from the Office for National Statistics (ONS) revealed that the consumer prices index (CPI) measure of inflation slowed to 3.2% in the 12 months to March - down from the 3.4% the previous month. It marks the lowest rate of inflation for two-and-a-half years but is still higher than forecast by economists. Andrew Bailey said inflation was on track to fall closer to the 2% target within months, driven by cheaper household bills as the energy price cap falls. Yael Selfin at KPMG said: “The overall outlook for inflation remains broadly positive, however there are several risks which could cause a setback. Oil prices have rallied over the past month which has led to an increase in prices at the pump for consumers. Also, the hike in the National Living Wage could potentially contribute to persistence in services inflation which remains elevated.”

 

Financial Times

The Daily Telegraph

The Times

Taxes are on course to hit their highest share of GDP since 1948, warns the Institute for Fiscal Studies (IFS). However, the IFS cautions that recent policies could drive up levies further as the government continues to spend heavily. The difference between the UK’s tax burden compared with the G7 average will nearly halve to 2.8% lower in 2029 from 5.3% lower in 2001. Despite the increase in taxes, Martin Mikloš, an economist at the IFS, says revenues have not matched the growth in spending, resulting in rising debt and a need for further tax increases to stabilise the public finances. The government has cut some taxes but has also implemented stealth taxation by freezing thresholds and increasing the corporation tax rate. The size of the state has significantly increased since 2001 when spending amounted to 35% of GDP - around eight percentage points lower than the average across advanced economies. That gap proceeded to narrow before peaking at around 50% during the pandemic. Following a recent fall, that figure is now expected to settle at around 43% of GDP.

 

The Daily Telegraph

The Times

City AM

The head of the International Monetary Fund (IMF) has called for the closure of tax loopholes to ensure the wealthiest pay their fair share of taxes. According to IMF research, ending tax avoidance by corporations could generate an additional $200bn annually while implementing a global corporate minimum tax would also boost revenues by an estimated $150bn per year. Additionally, Kristalina Georgieva said setting a minimum floor for carbon pricing could raise revenues by $150bn annually.  

 

Reuters

Neil Woodford is poised to start a service offering economic and business analysis - just days after the City regulator accused him of a series of failings that contributed to the collapse of his investment empire. A website was launched on Wednesday called Woodford Views, accompanied by a message apparently from Woodford saying it would provide commentary to “shed light on issues relevant to today’s investors and to help you navigate the complexities of financial markets.”

 

The Times

The Supreme Court has ruled that the UK trade union law breaches the country’s duty to protect the right to take part in lawful strikes. The ruling came in the case of Fiona Mercer, a care worker who was suspended by her employer after participating in a planned strike. Lady Simler, who delivered the judgment, stated that if employees can only take strike action by exposing themselves to detrimental treatment, the right dissolves. The Unison union's general secretary Christina McAnea described the ruling as "a victory for every employee who might one day want to challenge something bad or unfair their employer has done," adding: "The government must now close this loophole promptly. It won't cost any money and isn't difficult to do." A spokesperson for Britain's Department of Business and Trade was equivocal on whether the law would be amended, saying "the government will consider the judgment carefully before responding."

 

The Independent UK

Portugal's far-right party Chega will take legal action against Meta Platforms' decision to restrict the party's Facebook account for 10 years, according to a party spokesperson. Chega, the third-largest political party in Portugal, had its account restricted for 3,649 days due to activity that "disrespected our community standards." The party plans to challenge the decision, stating that restricted users were not given the opportunity to appeal. Chega's leader, Andre Ventura, called the decision an "unprecedented persecution of a political party in Portugal." The party, known for its anti-immigration and anti-Roma rhetoric, has faced accusations of discriminatory speech in the past. Chega relies heavily on social media to reach its voters, with 199,000 followers on Facebook and over 280,000 followers on TikTok.

 

U.S. News

Plans to monitor the bank accounts of benefits claimants have been branded unlawful, prompting calls on the government to scrap the initiative. The Department for Work and Pensions (DWP) wants the power to require banks to trawl accounts of state benefit recipients to reduce fraud and error. However, lawyers argue that this would breach privacy and freedom of expression rights. Silkie Carlo, director of Big Brother Watch, warned that the powers represented a “completely unprecedented regime of intrusive generalised financial surveillance across the population, not restricted to serious crime or even crime at all.”

 

The Times

The Financial Times reports that Mondelez International is to be handed a multi-million-euro penalty by the European Commission for blocking the sale of its products between EU member states. Antitrust authorities began investigating Mondelez in early 2021 over concerns it may have blocked cross-border sales of its products in the EU, in in breach of competition rules.

 

Financial Times

Reuters

Ryanair CEO, Michael O'Leary, has criticised Italy's antitrust regulator's order to stop limiting or blocking the sale of its flight tickets by travel agencies. O'Leary stated that the case has no merit and that Ryanair will meet with the regulator to discuss the issue. Despite being the largest airline operator in Italy, Ryanair denies exploiting its position and claims to offer the lowest fares in the market.

 

Reuters

The Competition and Markets Authority (CMA) has launched an in-depth investigation into Spreadex's acquisition of Sporting Index's consumer-facing arm. The CMA's Phase 1 probe found that the deal may have created a monopoly by removing the only other licensed UK sports spread-betting services provider.

 

Reuters

A government-commissioned report has warned that Britain will fail to reach its net zero targets because it is incapable of building the required infrastructure. This is due to a lack of ships, steel and concrete to build offshore wind turbines and an inability to connect them to the shore because it cannot produce enough high voltage cables. A shortage of skilled workers is also a problem, particularly for design and commissioning engineers, project managers, and installation technicians. The study was conducted by management consultancy Baringa. Authors Rob Gilbert and Stuart Williams said: “Achieving the renewables deployment ambitions outlined in the British Energy Security Strategy will be very challenging without significant coordination across industry and Government to resolve supply chain constraints.”

 

The Daily Telegraph

A report by the Nuffield Trust says that drug shortages are a “new normal” in the UK and are being exacerbated by Brexit. The health thinktank found that a dramatic recent spike in the number of drugs that are unavailable has created serious problems for doctors, pharmacists, the NHS and patients. The number of warnings drug companies have issued about impending supply problems for certain products has more than doubled from 648 in 2020 to 1,634 last year. The UK’s exit from the single market has disrupted the previously smooth supply of drugs, as has Britain’s decision to leave the EU’s European Medicines Agency and start approving drugs itself. Post-Brexit red tape has prompted some firms to stop supplying to the UK altogether.

 

The Guardian

The administrators of Fortress Capital Partners, an unregulated lender under a Metropolitan Police fraud investigation, have raised concerns about attempts by its former bankrupt chief executive to take the company out of administration. Ashley Reading is working with a new entity called Lend Corp Limited on a proposed company voluntary arrangement. But administrators at Begbies Traynor said they may not be able to recommend the CVA to creditors after an initial review found “that at least one transaction included within the Lend Corp projected results originated in Fortress and potentially represents undeclared work in progress by Ashley Reading at the time of the administration order being made”.

 

The Times

Google is laying off an unspecified number of employees as part of a “large scale” restructuring. Staff across several of Google's teams in its real estate and finance departments have been affected, according to a Business Insider report. A Google spokesperson said the layoffs are not company-wide and that affected employees will be able to apply for internal roles, but did not specify the number of employees affected nor the teams involved. "Throughout the second half of 2023 and into 2024, a number of our teams made changes to become more efficient and work better, remove layers and align their resources to their biggest product priorities," the spokesperson added. A small percentage of the impacted roles will move to hubs the company is investing in, including Bangalore in India, Chicago and Atlanta in the US, and in Dublin.

 

Business Insider

Reuters

Daily Mail

Some Nordea Bank customers in Finland reported being able to view accounts belonging to other individuals or companies. The bank quickly fixed the error, but customers expressed concerns about the privacy breach. Nordea stated that no money transfers were possible from the accounts that were visible. The bank is currently investigating the matter.

 

YLE Uutiset

Police have arrested 37 people worldwide in connection with a fraudulent text message scam that targeted victims through a technology service. The gang used the service to send messages designed to trick victims into making online payments. The police estimate that the gang's site, LabHost, made nearly £1m in profits. The criminals were able to steal identity information, including card numbers and PIN codes. The arrests were the result of a two-year operation involving law enforcement agencies in 17 countries. The police are contacting victims and have warned that younger people are most likely to fall for this type of phishing scam.

 

BBC News

The Daily Telegraph

A Professional Pensions poll has found that a majority of the industry does not believe UK employers will re-open their defined benefit (DB) schemes. The poll revealed that 63% of respondents doubted UK employers would follow the example of IBM, which reopened its DB scheme in the US. One respondent stated that the UK's accounting rules make open DB schemes "too risky" for companies' balance sheets, while another argued that open DB schemes would be "too expensive and a big drain on the accounts." However, some respondents believed that re-opening DB schemes could be a "great opportunity" and potentially beneficial for members. The poll also highlighted the barriers that employers may face in re-opening DB schemes, including the latest DB funding regulations and the DB funding code. The certainty of cost attached to defined contribution (DC) schemes makes them more attractive, the poll suggests.

 

Professional Pensions