WEDNESDAY 16 DECEMBER 2020 WORLD BUSINESS NEWSPAPER EUROPE Into the future Prosecuting Trump Martin Wolf What will the world look like in five The potential criminal investigations If interest rates stay low, stock years? — SPECIAL REPORT waiting in the wings — BIG READ, PAGE 15 markets will only grow — PAGE 17 Oh no it isn’t Briefing Panto season i Moderna jab ‘highly effective’, FDA finds The US Food and Drug Administration’s report on Moderna’s Covid-19 vaccine found the jab to be safe closes early and “highly effective”, clearing the way for a second inoculation to win emergency approval.— PAGE 2 Guests take a selfie outside the Palla- dium theatre in London’s West End yes- i China data herald economic recovery terday as the pantomime season comes Beijing has reported industrial production and to an abrupt and premature end follow- retail sales jumped 7 per cent and 5 per cent year on ing tighter Covid-19 restrictions in Eng- year respectively, as economic recovery from the land’s capital. coronavirus pandemic powers ahead.— PAGE 3 Boris Johnson’s government is under increasing pressure to rewind a relaxa- i Hungary sets legal curbs on gay rights tion of rules over Christmas as infection Hungary’s parliament has rates continue to rise across the UK. passed laws limiting gay rights, Two leading health journals pub- changing electoral rules and lished a rare joint article yesterday decreasing oversight of public warning that allowing three separate funds, as prime minister Viktor households to travel across the country Orban promotes “Christian to stay with each other during the fes- family values”.— PAGE 3 tive period was about to “blunder into another major error that will cost many i McConnell acknowledges Biden win lives”. Mitch McConnell has congratulated Joe Biden on Report page 2 winning the US presidential election, making the Toby Melville/Reuters Senate’s top Republican the highest-ranking party figure yet to break from Donald Trump.— PAGE 4 i Airlines warn on EU data rule breach Carriers fear they will be in breach of strict European rules on passenger data for flights to Britain if they keep planes flying in the event of the Brussels threatens Big Tech with UK leaving the EU without a deal.— PAGE 5 i Cleveland to ditch ‘Indians’ name Cleveland’s Major League Baseball team in the US has announced that it is to drop “Indians” from its break up to curb monopoly power name, after more than a century in use, once it has settled on an alternative.— PAGE 8 i Thai protests fail to sway stance on king 3 EU drafts new digital law 3 Privacy fears and low taxes spur hostility 3 Big fines weighed A wave of protests in Thailand by demonstrators seeking a new constitution and reform to the Javier Espinoza — Brussels US tech companies such as Amazon, The companies must also have at least timetable for when they will come into monarchy may have sparked debate but has failed Google and Facebook face growing hos- 45m users and be active in at least three force. But the new rules are likely to face to bend the state’s existing position.— PAGE 3 The EU has raised the stakes in its tility in Europe for paying low taxes, EU states, the draft regulation said. at least two years of political wrangling efforts to curb Big Tech by threatening invading privacy and crushing rivals. “We need to act quickly,” said Thierry and debates before approval. to break up companies that repeatedly However, the prospect of breaking up Breton, one of the EU commissioners in The regulations would be among the Datawatch engage in anti-competitive behaviour in a US tech group would be daunting, said charge of the regulations. Otherwise, he world’s most stringent on tech compa- the first overhaul of the bloc’s rules for Thomas Vinje, a partner at law firm Clif- warned, “we may destroy competition Commissioner nies. They are also an acknowledgment No rush for millennials While more than When US adults say they want a internet businesses for two decades. ford Chance. “I don’t believe the EU and opportunities for some players that Thierry Breton: in the EU that competition law has Covid- vaccine () 40 per cent of the youngest adults in A draft of the new Digital Markets Act would risk breaking down [the alliance could have been successful innovators”. ‘We need to act failed to curb the growth and market As soon as possible Wait a while warned that technology companies that with the US] by threatening to break up Separately, the EU also released the quickly [or else] power of the Silicon Valley giants. Never No answer the US say they would have a break competition rules will face fines American icons,” he said. draft of its Digital Services Act, which is we may destroy Paul Tang, a Dutch socialist MEP, of up to 10 per cent of their global reve- “The Biden administration is not designed to force tech companies to opportunities said: “The commission’s plans are good Covid-19 vaccine, Gen Z: Under the number nearly nues. Brussels also said the EU would going to let that happen easily.” take more responsibility for illegal beh­- for. successful but not good enough to curb the monop- Millennials: - halves for the move to break up any technology com- The EU said it would hold technology aviour on their platforms. It warned innovators’ oly power of tech giants. Instead, the Gen X: - generation above pany fined three times within five years. groups to a higher standard of regula- that companies that do not police them- commission should take direct aim and them. Meanwhile, Margrethe Vestager, the commis- tion, classing companies as “gatekeep- selves will face fines of up to 6 per cent of at least dismantle the perverse business Boomers: - the majority of sioner in charge of competition and dig- ers”, with the power to dictate their global revenues. model of these tech giants: monetising Silent: over 75s said they ital policy, said the EU would not hesi- markets if they have annual revenues in The commission’s draft proposals will personal data via advertising.” Sources: Fortune, SurveyMonkey would get a jab as tate to “impose structural remedies, the European economic area of at least be voted on by the European Parliament Editorial Comment page 16 (Nov - Dec ) soon as possible. divestitures, that sort of thing”. €6.5bn in the past three financial years. and Council of Ministers. There is no Lex page 18 UK draws up plans to rival Singapore with post-Brexit shipping tax regime Peter Foster — Brighton cadets directly on behalf of shipping flag has declined by a third, according to Jim Pickard — London companies has also been mooted. a report prepared for the government, The UK is drawing up plans to turn The proposals, described as “blue-sky because of uncertainty over the future. London into a rival for Singapore as a thinking” by one person familiar with The proposals say this could partly be hub for shipping companies to register their contents, are being worked on as addressed with a “hearts and minds” Sanctions on Turkey set their vessels following the end of the EU-UK trade talks reach a crunch point campaign to persuade shipping compa- tricky entrance for Biden Brexit transition period, according to in Brussels — with the issue of managing nies to register their vessels in the UK. people briefed on the proposals. UK regulatory divergence the biggest According to calculations provided to Analysis i PAGE 3 bone of contention. the government, revamping the UK’s Industry bodies and unions have been One proposal is that companies shipping tax and regulation regime canvassed over the reform of the ship- choosing to register their vessels in the could be worth £3.7bn over three years Austria €3.90 Malta €3.70 Bahrain Din1.8 Morocco Dh45 ping industry’s so-called tonnage tax UK could face a “lighter touch” test for and create 2,500 jobs directly, and Belgium €3.90 Netherlands €3.90 after January 1 2021, when the UK is no how much of their shipping is managed 25,000 in related companies. Bulgaria Lev7.50 Norway NKr40 Croatia Kn29 Oman OR1.60 longer subject to the EU’s state aid in the UK — a key requirement under David Blumenthal, a tax partner with Cyprus €3.70 Pakistan Rupee350 Czech Rep Kc105 Poland Zl 20 regime on subsidies. EU tonnage tax regimes. The proposal Clyde & Co, who handles tonnage tax Denmark DKr38 Portugal €3.70 Plans include expanding the scope of seen by the Financial Times repeatedly issues, said the UK’s departure from the Egypt E£45 Qatar QR15 Finland €4.70 Romania Ron17 the UK scheme by counting oil rigs as references Singapore as a benchmark EU was an opportunity. France €3.90 Russia €5.00 Germany €3.90 Serbia NewD420 “ships” for tax purposes — which is not for the UK’s post-Brexit aspirations. “The idea is that if we’re not con- Gibraltar £2.90 Slovak Rep €3.70 allowed under EU rules controlling the The Department for Transport said: strained by EU state aid, we could have Greece €3.70 Slovenia €3.70 Hungary Ft1200 Spain €3.70 subsidy of maritime transport — in “We do not comment on leaks.” more ability to do things that would India Rup220 Sweden SKr39 Italy €3.70 Switzerland SFr6.20 order to attract more business. A £30m Since the Brexit vote in 2016, the ton- make the UK more attractive to ship- Lithuania €4.30 Tunisia Din7.50 government-funded scheme to train nage of ships registered under the UK ping companies,” he said.