Gentiloni targets tax rules after OpenLux
EU commissioner for economy Paolo Gentiloni on Wednesday said the OpenLux investigation had helped show implementation weaknesses of EU tax and anti-money laundering rules. The European Commission would seek to reinforce an anti-tax avoidance directive to target shell companies aiding tax avoidance, Gentiloni said. His remarks came as MEPs debated the investigation, which had shown how individuals and companies use financial constructs organised through Luxembourg for tax optimisation purposes. Sources: Reuters, Wort.
MEPs back due diligence obligations for companies
Members of the European Parliament voted in favour to push ahead with legislation that would force companies to ensure environmental and human rights standards along their supply chains. The due diligence laws should also give victims of abuses the right to take EU companies to court, MEPs said. The European Commission is set to present a first draft in June. Sources: Guardian, Reuters, Wort.
Congress passes Biden’s $1.9trn stimulus package
The US House of Representatives on Wednesday gave final backing to a $1.9trn Covid-19 relief package, paving the way for president Joe Biden to sign it into law. Among other measures it includes direct payments of up to $1,400 for most US adults, an increase in federal unemployment benefits and expansion of tax credits for children. Sources: FT, CNN, Reuters.
Russia blames Google outage on data centre fire
A Russian media watchdog has blamed difficulty accessing Google and YouTube on a fire at an OVH data centre in Strasbourg. The fire has affected services including the French government and the Delano website, which our teams are working hard to bring back online as soon as possible. Russia’s media watchdog previously deliberately slowed down services of popular social media over perceived anti-Russia bias. Source: BBC.
Facebook seeks dismissal of US anti-trust case
Social media platform Facebook has filed motions asking for the dismissal of two antitrust cases launched by the US Federal Trade Commission. The FTC said Facebook bought WhatsApp and Instagram to squash competition and is using its power to stifle potential rivals. The European Commission is also probing Facebook for violating competition rules. Sources: BBC, Bloomberg, Tech Crunch.
UN condemns Myanmar coup
The UN in a presidential statement condemned the violent coup in Myanmar and urged restraint. But it removed wording implying sanctions because of opposition from China, Russia, India and Vietnam. The US meanwhile launched additional sanctions against Myanmar officials and companies. This came as police fled to India after refusing to shoot at protesters. Sources: Guardian, FT, Reuters, BBC.
€333m Luxembourg relaunch and resilience plan
Finance minister Pierre Gramegna (DP) on Wednesday afternoon presented a €333m relaunch and resilience plan for Luxembourg’s economy. The projects outlined are already accounted for in the state’s budget, but the plan is needed to start talks with the European Commission to receive money from its €1.8trn budget and covid-19 stimulus package. The plan revolves around three pillars: Social cohesion and resilience, green transition, and digitalisation, innovation and governance. Sources: Finance ministry and Paperjam.
Unions worry over Dudelange steel site’s future
Luxembourg labour unions fear job losses at the Dudelange steel site owned by Liberty Steel, with the company facing financial difficulty after its main financial backer Greensill filed for administration. Economy minister Franz Fayot says owner Sanjeev Gupta assured him that Liberty Steel remains committed to the site and that the Greensill situation wouldn’t impact its activities in Luxembourg. Source: Delano, LCGB, OGBL and Chamber of Deputies.
Latest Luxembourg covid-19 update
Out of 12,493 PCR tests carried out on 9 March, 145 were positive (1.87%). That is a rate of 37.37 per 100,000 inhabitants. There were 98 people being treated in hospital for complications caused by Sars-CoV-2 (up from 93 the day before), in addition to 24 intensive care patients (stable). The reproduction rate was 0.97, just below the target threshold of 1.00. Five people died with the virus, bringing the national total to 673. A cumulative 48,961 vaccine doses have been administered, including 14,431 people who received a second dose. Sources: Delano, health ministry.
Hospital chief out of office
Claude Schummer, director general of the Robert Schuman Hospitals group, has reportedly been removed from his post. The hospital confirmed he had not been at the office this week, without clarifying its comments. It also denied reports the hospital had sought to buy virus vaccine doses in addition to government supplies. The group is under pressure over inoculating board members along with healthcare staff during the first phase of vaccinations. Sources: Wort, Tageblatt, RTL, Radio 100,7.
UK virus variant more lethal
The B.1.1.7 variant of the coronavirus is 32 to 104% more lethal than previous variants, a study published in the British Medical Journal suggests. The variant was first discovered in Kent, UK, last September and found to be more contagious. However, it was initially thought not to be more dangerous than other variants. B.1.1.7 makes up more than half of sequenced samples in Luxembourg. Sources: Reuters, Independent, FT, BMJ.
Emaischen cancelled
Luxembourg City’s Easter Monday pottery market--the Emaischen--has been cancelled because of the pandemic for the second year running. However, the city is planning a pop-up store for the traditional birdshaped Péckvillchen whistles. Sources: RTL, L’essentiel.
Today’s Luxembourg City Film Festival pick
Riders of Justice screens at 6.30pm at Kinepolis tonight. Mads Mikkelsen stars as soldier Markus who tries to prove that the train crash in which his wife died wasn’t an accident. Variety called the film “deliciously wry”. Screen International's chief critic Fionnuala Halligan says: “Riders of Justice is salty, violent, transgressive, button-pushing, non-PC and laugh-out-loud funny.”
Chocolate vaccine bunny for Easter
After Santas wearing masks for Christmas, it is now time for pandemic-themed Easter treats. A Hungarian confectioner has created chocolate Easter bunnies carrying vaccine syringes. Source: Reuters.
Cassette tape inventor dies
Louis Ottens--a former engineer at Dutch electronics and technology company Philips--has died aged 94. Ottens led the team that invented the cassette tape, which was first presented in 1963. He later worked on developing CDs. Sources: Rolling Stone, NPR, Deadline.
Today’s breakfast briefing was written by Cordula Schnuer