Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention. This week:
- A new government takes office in Germany. Will it be good for tech companies?
- How European countries and tech companies are responding to Trump’s tariffs
- Why ‘Time Sovereignty’ is set to become a key concept for 2025
From a political perspective this week’s European news has been dominated by the formal agreement of a coalition government in Germany. The centre left SPD and centre right CDU have hatched a deal which will shape the political agenda for the next four years.
The agreement, which includes new migration policies, a tax freeze, welfare system tweaks and a slow down on climate and digitalisation goals has been widely criticised by the German media and is not proving popular with the electorate.
According to n-tv, half of the population is disappointed with the coalition agreement saying the pact lacks ambition, avoids difficult reforms, and reflects a political strategy of playing it safe rather than tackling Germany’s systemic challenges like digital stagnation, ageing infrastructure, and climate inaction.
Across the board, the policy tone is reactive rather than future-focused which could prove to be a challenge for tech players looking for strong public-private collaboration or investment momentum.
OMD has published the results of a retail-focused survey of nearly 39,000 participants, including over 1,000 in Germany. According to Horizont the company has identified four key macro trends shaping consumer behaviour in 2025. These are: Ethical Evolution (focus on cause-driven engagement over politics), Time Sovereignty (growing demand for time-saving products), Creator Culture (rise of self-made content in niche communities), and Experience Culture (desire for memorable, meaningful experiences). The report advises brands to respond with authenticity, reliability, and quality to resonate with today’s values-driven consumers.
European tech rethinks its relationship with the US
President Trump may have pulled back to a degree on the imposition of tariffs to European countries, but the repercussion of what was originally planned and what might still happen is making the continent’s governments and tech companies consider their strategies.
Netherlands media outlet Bright has a story on how the European Union is considering imposing taxes on digital services provided by US tech giants like Google and Meta if trade negotiations with President Trump collapse. European Commission President Ursula von der Leyen stated that the EU, after pausing planned tariffs for 90 days, may retaliate by targeting digital ad revenues—highlighting the EU’s heavy reliance on American digital services and the US’s dominance in that sector. This is a shift from previous measures, which focused on goods like cars and soybeans. Von der Leyen also warned that Trump’s aggressive tariff approach has permanently changed the landscape of global trade.
Sifted reports that European tech startups eyeing IPOs may be forced to delay their plans due to escalating trade tensions sparked by Donald Trump’s latest tariffs on Chinese goods. Market instability and investor caution are making exits less attractive, particularly for companies reliant on US markets. Industry insiders warn that a prolonged trade war could freeze the IPO pipeline for months.
Concerns about the political culture of the Trump administration and the influence US companies have over the European tech market has prompted the Dutch government to develop its own sovereign cloud infrastructure for secure communications and storage of critical data. Computable reports that the move follows a widely supported motion in parliament and will be part of the upcoming Dutch Digitalisation Strategy. However, the government has pushed back on calls to immediately halt migration to US-based cloud providers, citing service continuity risks. Open-source collaboration with France and Germany is underway through the “Mijn Bureau” project.
Employees still enthusiastic about hybrid working
Finally The Guardian has the latest on the ongoing battle some employees are waging against their bosses who insist on a return to office. It has the details of a report from recruitment company Hays which has found that almost half of professionals would consider quitting if their employer forced them back to the office on a full-time basis.
While overall 48% of workers surveyed said they would consider handing in their notice over the requirement for full-time office attendance, female workers would be more likely to do this (58%) compared with men (42%).
Hybrid working, with time spend split between the office and another location such as home, is the working pattern for more than three-quarters (77%) of the workforce, according to the 8,000-plus UK organisations and professionals across a range of sectors who were surveyed.
