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European Edition
15th October 2025
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THE HOT STORY

Belgium's strike grounds flights, disrupts transport

A national strike in Belgium disrupted flights and public transport on Tuesday, with tens of thousands of people protesting in Brussels. Brussels Airport cancelled all departures as security workers participated in the strike. The government, facing a budget deficit, is pushing for pension reforms and other savings, angering trade unions. "This government promised more sustainable jobs and increased purchasing power. Hot air!" said the trade union CSC. The strike adds pressure on Prime Minister Bart De Wever's coalition, which recently failed to agree on a budget.
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WORKFORCE

Spanish unions strike for Palestine

Unions across Spain, including CGT, IAC, CCOO, and UGT, launched a general strike demanding an end to what they call genocide in Gaza and the West Bank. The CGT insists on “a permanent and verifiable” ceasefire, free humanitarian aid access, and reconstruction prioritising Palestinian needs. CCOO and UGT call for Israeli troop withdrawal and Palestinian control of Gaza. All unions support an arms embargo on Israel. This comes amid continued violence, with six Palestinians killed in Gaza despite a recent ceasefire plan. Hamas condemned the attacks and urged international enforcement of Israel’s commitments.

Germans can earn tax-free after retirement

Germany's Chancellor Friedrich Merz has introduced a plan allowing retirees to earn up to €2,000 monthly tax-free, aiming to address labour shortages. The initiative, costing an estimated €890m annually, will benefit 285,000 current retirees. Merz's proposal, part of a broader reform agenda, seeks to counteract the challenges posed by an ageing workforce, with 4.8m workers expected to retire by 2035. Holger Schmieding, chief economist at Berenberg Bank, noted that the positive effects on growth and social contributions could outweigh costs within two to three years.

UK unemployment passes 1.7m

The UK unemployment rate has risen to 4.8%, the highest since May 2021. Data from the Office for National Statistics (ONS) shows that 1.737m people were logged as unemployed in the June to August quarter, with this an increase of more than 60,000 since the previous three month period and the highest total since the November 2020 to January 2021 quarter. Overall, payroll employment fell by 93,000 in the year to August, while vacancies decreased by 9,000 to 717,000 in the July to September quarter. Professor Joe Nellis, economic adviser at MHA, commented: "Hiring momentum has slowed across most sectors, with many employers holding off on new recruitment or scaling back hours instead of making redundancies."

UK employers to pay more to hire migrants

UK Home Secretary Shabana Mahmood has announced stricter immigration measures in a bid to strengthen integration and reduce net migration. The immigration skills charge, which is paid by employers sponsoring foreign workers in order to fund training for British individuals, will be raised by 32%. It was also announced that migrant workers will have to pass A-level English language standard tests in order to live in the UK. Additionally, the post-study work period for foreign graduates will be cut from two years to 18 months, and students must prove they can financially support themselves. 
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LEGAL

Greece erupts in protests over labour reforms

Protests erupted in Greece on Tuesday against proposed labour reforms that would extend private sector working hours. The walkout, led by major public and private sector unions, coincided with a parliamentary debate on the government's draft bill. The reforms aim to create a more flexible labour market but have faced backlash for potentially undermining workers' rights. Unions argue the changes threaten the eight-hour workday and diminish negotiating power, especially as average wages remain low compared to other EU nations. "Instead of boosting workers' incomes, the government chooses to legislate work for multi-employers," unions ADEDY and GSEE said.
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ECONOMY

Southern Italy sees economic revival

Southern Italy is reversing decades of emigration as improved infrastructure and EU-backed investments drive job growth. Regions like Sicily and Calabria have outpaced northern Italy in GDP growth since 2022, with the south’s economy expanding 8.6% versus 5.6% nationally, according to SVIMEZ. Employment rose 2.2% in 2023, led by a 6.9% surge in construction. Projects include high-speed rail lines and the €13.5 billion Messina Bridge. However, SVIMEZ warns sustained recovery depends on investing in schools, healthcare, and childcare.

Critical raw materials crisis looms in Germany

Germany's reliance on rare earth materials poses a significant threat to its economy, according to a McKinsey analysis. Approximately 1m people work in sectors dependent on these resources, contributing €150bn to the GDP. If China, the primary supplier, halts exports, around 4m jobs and €370bn in value creation could be at risk, equating to 9% of the GDP. Christian Hoffmann from McKinsey noted: "If there is a disruption in the supply of critical raw materials, it can lead to massive damage." The situation calls for urgent strategic planning and collaboration across industries.

Malta's employers push for economic transformation

As Malta prepares for its 2026 budget, the Malta Employers Association (MEA) has proposed strategies for sustainable economic transformation. President Ivan Refalo emphasised the need for long-term competitiveness and social well-being, focusing on education reform to enhance skills. The MEA called for investment in digitalisation and automation to boost productivity. Director General Kevin J Borg noted that Malta's growth relies heavily on labour productivity. The MEA also highlighted the importance of family-friendly policies and support for older workers to address demographic challenges. "The National Budget is not just an accounting exercise," the MEA concluded.
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STRATEGY

Heineken shakes up Amsterdam HQ

Heineken is reorganising its Amsterdam headquarters, impacting around 400 jobs. The company aims to create a more agile and connected organisation focused on growth and innovation, said CEO Dolf van den Brink. While some roles will be relocated abroad, others will be eliminated entirely. Unions De Unie and MHP expressed regret over the cuts, noting that sales pressures and shareholder interests are influencing the decision. De Unie stated it will support affected staff with a comprehensive social plan until mid-2026. The changes coincide with plans to expand Heineken Business Services in Hyderabad, India.
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ENTREPRENEURS

Women entrepreneurs thrive in Romania

The "She's Here" study by Bravva Capital for ING Bank reveals that 55% of women entrepreneurs in Romania advocate for entrepreneurship. Autonomy and flexibility drive 37.5% of them to start businesses, while 25.8% seek personal fulfilment. Quality of products is deemed the top success indicator by 57% of respondents. Luana Sorescu, Head of Easy Banking at ING Bank Romania, noted a shift towards collaboration and quality. Despite lacking family role models, 68% rely on business communities for support. Challenges include marketing and sales, with many predicting moderate growth for their businesses in 2026.
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DIVERSITY, EQUITY, & INCLUSION

BAE Systems leads the charge for women

BAE Systems has made significant strides in female representation within its leadership. Karin Hoeing, the director of culture and business transformation, noted her unique background helped her integrate into the predominantly male executive committee. The company now boasts five women among its twelve executives, earning it the 25th spot on Forbes' list of the World's Top Companies for Women 2025. Despite progress, challenges remain, with only 8.5% of CEOs in the S&P 500 being women. Hoeing emphasised the importance of role models in leadership for inspiring future female leaders.
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PRODUCTIVITY

AI transforms workplace performance management

AI is reshaping performance management in organisations, moving away from traditional methods. Executives from companies like Headspace and BambooHR highlight that AI removes psychological barriers to honest feedback. This technology enables continuous development rather than annual evaluations, allowing for real-time insights into employee performance. Smaller, capable teams are becoming the norm, as AI handles routine tasks. The focus is now on enhancing manager capabilities, which are crucial for organisational success. As Sarah Franklin from Lattice noted: "We need to hold ourselves deeply accountable for what the AI is doing and why."
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LEADERSHIP

Politeness stifles employee growth

Dr Christian Marcolli argues that prioritising politeness over honest communication can hinder employee development. A survey by Joi AI found that 58% of ChatGPT users prefer more authentic interactions. Marcolli emphasises that true excellence arises from challenge, not comfort. He advocates for "leadership sparring," a collaborative approach that encourages constructive exchanges. This method fosters bold thinking and psychological safety within teams. Marcolli's new book, Winning Match: Leadership for Game Changers, outlines five principles for effective sparring, aiming to empower leaders to nurture their top talent and drive organisational success.
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INTERNATIONAL

AI disrupts India’s back office

India’s IT sector is undergoing rapid transformation as generative AI tools, like those developed by startups such as LimeChat, replace customer-service roles. LimeChat claims its bots reduce support staffing needs by 80%, with co-founder Nikhil Gupta saying, "Once you hire a LimeChat agent, you never have to hire again." Despite consumer preference for human interaction, AI adoption is surging, leading to fewer job opportunities in traditional support roles. Industry experts, like Neeti Sharma of TeamLease Digital, report a sharp hiring slowdown. Critics, including academic Santosh Mehrotra, warn of poor government planning. Displaced workers, like Megha S., face rising job insecurity without adequate support.
 
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