More than 90 Labour MPs have publicly called for Keir Starmer to resign following the party’s catastrophic local election defeat to Reform UK. Brussels is monitoring the crisis with concern given Starmer’s deliberate strategy of re-engagement with the EU since 2024.
The European Central Bank held its deposit rate at 2% for a third consecutive meeting on 30 April, though a Bloomberg survey of economists now anticipates two summer rate rises as the Iran war pushes eurozone headline inflation towards a projected 2.6% in 2026.
The European Parliament prepares to vote on the EU’s toughest steel trade defence in eight years: a 50% out-of-quota duty, a 47% cut in tariff-free import volumes and a Melt and Pour traceability requirement, set to enter force on 1 July 2026.
The European Parliament opens its Strasbourg hemicycle to the public on Sunday 17 May 2026 for the institution’s flagship Open Day, with a full civic and cultural programme designed to bring citizens face-to-face with the work of MEPs.
EU co-legislators reached agreement in the early hours of 7 May 2026 on the AI Act Digital Omnibus, deferring high-risk AI obligations from 2 August 2026 to 2 December 2027 whilst adding a prohibition on AI nudification applications and AI-generated child sexual abuse material. Co-rapporteurs Kokalari and McNamara characterised it as ‘simplification without weakening safety’.
As the Iran war drags into its third month, the European Union is being forced to confront a question it has spent two decades avoiding: what is Europe’s defence doctrine when the United States is preoccupied elsewhere? The June FAC and the autumn European Council must move beyond the rhetoric of strategic autonomy to deliver something operational.
UK Health Secretary Wes Streeting is expected to resign on Thursday 14 May 2026 to mount a Labour leadership challenge against Sir Keir Starmer, after 93 Labour MPs publicly called for the Prime Minister to step down. The political turbulence overshadows the King’s Speech and arrives amid acute gilt-market pressure.
Industrial production in the euro area rose 0.2% in March and 0.8% in the EU compared with February, according to Eurostat data published on 13 May. The annual comparison remains firmly negative, with output down 2.1% in the euro area and 1.0% in the EU, reflecting the cumulative impact of the Iran energy shock on European manufacturing.
Burberry released its full-year FY26 results on Thursday 14 May 2026. Consensus forecasts pointed to revenue of approximately £2.43 billion (down 1% year-on-year), operating profit of £96m and EPS of 20.14p. Investors are scrutinising progress under Joshua Schulman’s ‘Burberry Forward’ turnaround, which has entailed up to 1,700 redundancies.
The European External Action Service is watching with unease as Trump and Xi open a two-day summit in Beijing on Thursday 14 May 2026, with Brussels concerned about potential US softening on Taiwan and a possible bilateral accord on Iran and the Strait of Hormuz.
