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.
While one story trumped all last week, the U.S. isn’t the only country to experience a dramatic political shift in the last seven days.
Germany’s government plunged into chaos when the “traffic light” coalition that united the Social Democrats, Greens, and Free Democrats for nearly three years collapsed.
Ongoing disagreements between the three parties came to a head on Wednesday night when Germany’s chancellor Olaf Scholz fired finance minister Christian Lindner, the leader of the Free Democrats.
Scholz sacked Lindner after he refused to back his proposal to borrow more money to fund investment in digital infrastructure, climate action, and other initiatives across Germany. In turn, the Free Democrats retaliated by pulling out of the coalition, leaving Scholz without a majority in parliament or an approved budget.
Now, Scholz faces a confidence vote in January, which will determine whether he can remain in power. If he loses the vote, Germany will head to the polls shortly after.
In the meantime, the country faces a prolonged period of instability and uncertainty, likely to impact many of its neighbours across Europe.
How last week’s events will impact tech businesses remains to be seen, but it’s fair to assume that firms reliant on government spending are likely to bear the brunt of the disruption, with new projects now effectively on hold for the foreseeable future.
What Does America’s Presidential Choice Mean for Tech’s Future?
With Donald Trump making history as the first convicted felon to become President of the United States of America, the next four years promise to be anything but boring.
For firms in the technology sector, the outcome of the election is likely to usher in sweeping changes, but could it also create some new opportunities for growth?
Here’s a look at some of the ways that Europe’s media expect Trump’s policies to impact and reshape the region’s tech industry:
- An uncertain future for international relations: Trump’s return raises concerns about geopolitical stability across Europe. According to Handelsblatt, critical issues like support for Ukraine, NATO alliances, and trade relations are now in question, potentially impacting tech companies that rely on trade with the US.
- More funding for tech innovation in Europe: An “America First” approach may push Europe to up its game by increasing funding for start-ups and scale-ups, streamlining regulations, and offering greater incentives for technology workers. MT/Sprout reports that this shift could present Europe with a chance to close the gap with the States, creating a more integrated digital market within the EU.
- An increase in funding for Climate Tech firms in Europe: With tackling the devastating impact of climate change not a priority for America’s 47th President, green tech companies may pivot to focus on the European market, according to Sifted. This could lead to a sharp increase in funding for sustainable technology companies in the region, and a bidding war to attract more talent to Europe.
- Greater focus on ensuring Digital Autonomy: In recent years, concerns over Europe’s dependence on US technology have grown and following Trump’s win, much more emphasis is likely to be placed on using “homegrown” technology. As Computable suggests, some nations may adopt an America-first style rhetoric, promoting services and technology provided by companies at home.
- A boon for the Crypto market: The price of Bitcoin hit record highs following the news that Donald has bagged a second term, with the FT reporting that investors expect Trump to take a more favourable stance towards crypto regulation. In turn, this could force European countries and the EU to adapt, ensuring a level playing field for crypto companies in the region.
