The European Commission will today target the still unacceptably-wide pay gap between men and women. Employers risk fines if they don’t provide information on how they remunerate differently based on gender, according to binding transparency rules to be unveiled today. That will help women to determine if they’re being rewarded fairly for the same work as men, and equality advocates and trade unions to seek compensation for discrimination. Women across the EU are paid 14% less than men and receive pensions that are 30% lower on average. Estonia, Austria, Germany and the Czech Republic had the biggest pay gaps of around 20% in 2018. The draft proposal leaves it up to national governments to decide on penalties, and there’s set to be a contrast between how large and small firms are treated. - Aoife White and John Ainger
What’s Happening
Brexit Tension | European Commission Vice President Maros Sefcovic said the bloc will take legal action against the U.K. after Boris Johnson’s government enflamed tensions by reneging on one of the most contentious parts of their post-Brexit settlement, and unilaterally changed trade rules relating to Northern Ireland.
Draghi Force | Italian Prime Minister Mario Draghi is working on an overhaul of Italy’s slow and uneven vaccination campaign, focusing on logistics and even recruiting the military to help. He’s already signaled a strong break with the past by replacing two key officials tasked with battling the virus. Here’s the latest on the pandemic, including Germany’s decision late yesterday to gradually unwind restrictions.
Dirty Air | Britain may have cut ties with EU courts, but that doesn’t mean it’s off the hook. The bloc’s top court is expected today to take the U.K. to task over its poor air quality in a ruling on the European Commission’s 2018 challenge that the country failed to lower pollution limits caused mainly by vehicle traffic.
Enterprising Mafia | Criminal enterprises, like their legitimate counterparts, have suffered during the pandemic. But the Italian mafia has already laid the foundation for a massive payday. Here’s how it’s trying to tap into the EU’s landmark recovery fund.
Eastern Drift | With Angela Merkel’s departure looming, the eastern part of the EU faces a challenge. Her ties to eastern Germany along with her clout as chancellor made her widely respected and even a bit feared by rogue leaders. Without her, the Baltics and Balkans may feel cast aside, and the potential for mischief from Poland and Hungary grows.
In Case You Missed It
Orban Walkout | Hungarian Prime Minister Viktor Orban pulled his ruling party out of the parliamentary caucus of the EU’s largest political group as the bloc piles pressure on him over the erosion of democratic norms. Here’s what went down.
Talking Down | The recent bond market turmoil doesn't seem to be ruffling the European Central Bank’s feathers just yet, with policy makers seeing no need for drastic action to combat rising yields, according to officials familiar with internal discussions. It seems they’re content to "jawbone" rates lower for now.
Listen Up | Europe can still achieve herd immunity this year despite initial glitches, although not every country will reach their vaccination goals. That’s the take of top virologist Marc Van Ranst in this week’s Brussels Edition podcast.
Collateral Damage | The European Court of Auditors warned airline passengers may have been unfairly treated while EU regulators raced to approve bailouts to struggling carriers. It has started to assess whether the commission protected the rights of citizens who traveled by plane or booked flights during the pandemic.
Green Money | Europe’s governments are cashing in on the growing market for green debt, used to finance environmentally-friendly projects. Italy was the latest to jump on the bandwagon, racking up record investor demand for a green offering. Spain is set to follow soon, while the U.K. is due to come to market this Summer.
Loan Fix | Poland’s finance minister told banks they can forget any financial aid for taking part in a government-backed plan to help free homeowners from crippling foreign-currency mortgages. The dispute is a result of borrowers betting loan payments would shrink as their national currencies appreciated in the 2000s. But, after the 2008 financial crisis, they plunged instead, causing mortgages denominated in euros and Swiss francs to balloon.
Chart of the Day
Europe’s roads are still quieter than normal, despite efforts from some countries to ease lockdown measures. Even though anecdotal evidence and passenger numbers suggest that people are abandoning public transport in favor of private vehicles, delays to road journeys in major European capitals are well below pre-pandemic levels, according to data from location technology specialists TomTom.
Today’s Agenda (All times CET.)
- 9 a.m. European Parliament Committee on Economic and Monetary Affairs has a dialogue and exchange of views on the Autumn Fiscal Package of the 2020 European Semester and on the Covid-19 fiscal policy response
- 9:30 a.m. The EU’s top court rules in a European Commission challenge against Barcelona football club over allegedly unfair tax breaks
- 9:30 a.m. The EU’s top court rules in a challenge by the European Commission against the U.K. for failing to limit values for nitrogen dioxide and to take appropriate measures to keep exceedance periods as short as possible
- 11 a.m. Eurostat publishes unemployment and retail trade readings for January
- 11 a.m. Press conference by EU Commission Executive Vice-President Dombrovskis and Commissioner Schmit on the European Pillar of Social Rights Action Plan and effective active support to employment following the Covid-19 crisis
- 1 p.m. Press conference by EU Commission Vice-President Jourova and Commissioner Dalli on the proposal for pay transparency measures
- 2 p.m. EU Competition Commissioner Vestager joins German Economy Minister Altmaier at the Federal Cartel Office’s international competition conference
- 4:30 p.m. Vestager at European Parliament industry committee hearing
- EU economy chief Gentiloni and financial services chief McGuinness deliver speeches at Politico's Finance Summit 2021