By Advik S Mohan
THE EU
New EU regulations pose threat to development of fresh treatments for diseases
On 14 August, the Financial Times carried out an article about the new rules by the European Union (EU) threatening to cut the number of new treatments for rare diseases, due to curbs on medical trials. Nearly 40 groups including Cancer Patients Europe and the World Federation of Hemophilia said the guidelines would make it difficult to get approval for drugs intended to cure rare diseases. Randomised control trials with a large group of people were too expensive and unethical, as compared to single-arm trials. An analysis by the Alliance for Regenerative Medicine (ARM) found that about 80 per cent of approved and available therapies in the EU use single arm studies. Regulators are of the view that the rules could allow countries to authorize medicines more quickly, as countries work together on joint clinical assessments. Stefano Benvenuti, head of public affairs at Italian charity Fondazione Telethon believed that the rules were positive but their implementation guidelines were restrictive. Benvenuti added that treatments on some rare diseases had even been stopped due to the low number of patients. (Andy Bounds, “EU rules threaten to cut new treatments for rare diseasesa,” Financial Times, 14 August 2024)
DENMARK
Minister for Justice calls out Sweden over gang violence impact
On 12 August, Peter Hummelgaard, Danish Minister for Justice stated that his country would pressurize Sweden to contain cross-border gang violence. The remarks come amid an increase in violence by Swedish gang members in Denmark in recent months, which the Danish government calls an effect of gun violence in Sweden. Sweden has about 14,000 active gang criminals and about 48,000 people loosely affiliated with gangs. Due to this, Sweden has the highest per capita rate of gun violence in the EU. To combat the growing threat to Denmark, Danish police began monitoring passengers arriving from Sweden by train more closely, and the government plans to introduce facial recognition technology to increase the speed of manual investigation Hummelgaard said: “We will of course also put pressure on Sweden to take responsibility for these things.” Additionally, Thorkild Fogde, National Police Commissioner of the Police of Denmark informed at a press conference that Swedish gang members involved in violence would face consequences. (“Denmark to pressure Sweden over gang violence,” Reuters, 12 August 2024)
FINLAND
Statistics Finland records highest unemployment rates in the EU
On 13 August, a report published by Statistics Finland highlighted the dire unemployment scenario. The figures show Finland’s unemployment rate at 8.4 per cent, the third-highest in the EU. However, the top two countries, namely Spain and Greece have seen their employment figures improve in the past one year. While, Finland has declined even more, with little hope for respite. Janne Huovari, Senior Financial Advisor at the Finnish Ministry of Finance stated that the rate could increase with the government’s austerity measures. Governmental reforms geared at improving employment such as cuts to housing allowance and staggering of earnings-related unemployment benefits may increase unemployment if there is no demand for labour, according to Huovari. This has also made the government's aim of creating 100,000 new jobs difficult, with Huovari acknowledging that it would be “challenging. Huovari believes that rising interest rates have negatively impacted the Finnish economy since variable rates are more common in the country for housing and corporate loans. The impact of the Russian invasion of Ukraine and high immigration continuing despite a negative economic situation are contributing factors as well, in his view. (“Finland’s unemployment rate among worst in EU8,” YLE News, 13 August 2024)
Government replaces football turf pitches ahead of micro-plastic ban
On 13 August, an article in YLE News talked about the creation of new “non-filler” football pitches in Finland. The loose turf fillers used presently in artificial football pitches contribute towards microplastic pollution, and will be banned in the European Union from 2031. Of the 44,000 pitches to be replaced, over 500 are located in Finland; putting the country at the forefront of the issue. Oleg Jauhonen, Helsinki municipality coordinator stated that the present artificial pitches utilize plastics and other materials as fillers to make grass blades stand up straighter, and the rubber crumbs used are carried into natural environments and watercourses. However, according to Jauhonen, the new pitches can be recycled easily since they do not contain multiple toxic materials. There are 80 artificial pitches in Helsinki, 70 per cent of which use pollution causing rubber crumb fillers. Jauhonen also noted that the non-filler surfaces had received positive reviews when they were used in Belgium, and believes they will be suitable for junior football at least. Käpylä football field will see the first of the new surfaces installed in the autumn, the first step towards a gradual shift in Finland. Tero Auvinen, Head of Infrastructure, Football Association of Finland stated that a six-year transition period was extended by two years, in order for new materials to be developed. Auvinen said, “Pitches should be both environmentally friendly and good playing surfaces.” (“Finland replacing artificial pitches ahead of microplastics ban,” YLE News, 13 August 2024)
GERMANY
Deutsche Bundesbank reports increase in Chinese direct investments
On 14 August, the Deutsche Bundesbank, Germany’s central bank showed Germany’s direct investments into China had increased. This occurred despite requests by the German government that businesses diversify into other markets. The Bundesbank data showed German investments in China in the first quarter to be EUR 2.48 billion, rising to EUR 4.8 billion in the second quarter. The total in the first half of 2024 stands at EUR 7.3 billion, higher than the investments total for the entirety of 2023. (Guy Chazan, “German investment in China soars despite Berlin’s diversification drive,” Financial Times, 14 August 2024)
THE UK
Augar Review warns universities for restructuring
On 14 August, Sir Philip Augar, head of the 2018 Augar Review into education and funding in the UK, warned that the British university sector needed restructuring if it wanted more governmental funding. Augar stated that while he understood the sector’s need for help in the face of higher inflation, frozen tuition fees and lower international student applications, universities should live within their means and accept restructuring if required. Augar’s remarks came ahead of A-level and BTech results being released on Thursday, both of which are expected to show a decline in university applications. A drop of up to 50 per cent in international student applications means that lower-ranked universities are searching for domestic applicants. Some universities have already announced job cuts and course closures, while Augar estimates that about half of the 140 universities in Britain are running deficits. Augar believed that the government should provide bailouts to educational institutions under stress. Augar said, “It’s not fair on students who hold degrees from those institutions, or wise for the towns and cities where they are situated because universities are such an important Firestarter to the local economy.” The Department of Education could encourage mergers or bring in turnaround teams to help the university management slim down, according to Augar. Nevertheless, he felt that more cash would need to be injected eventually to preserve the quality of UK higher education. Augar felt that increasing the government teaching grant for universities, or tuition fees and maintenance loans were potential steps the government could take. (Peter Foster, “UK universities must cut costs to survive, warns Augar,” Financial Times, 14 August 2024)
ONS reports wage growth lowest in two years
On 13 August, it was revealed that wages across the UK grew the slowest in over two years. Data published by the Office for National Statistics (ONS), under the UK Statistics Office showed that average wages including bonuses rose by 4.5 per cent compared to a year earlier. Occurring alongside a rise in the number of individuals claiming unemployment benefits in July, this is expected to make it easier for the Bank of England to cut interest rates. Even excluding bonuses, the current growth in regular wages is the slowest since July 2022. Meanwhile, the number of claimants of job seeker allowance rose by 135,000 in July, the highest in four years. However, individuals entering or re-entering the workforce led to a decline in the unemployment rate, to 4.2 per cent. The number of job vacancies also declined, while overall employment between March and June rose by 97,000, the highest in a year. (Geoffrey Smith, “UK wage growth slows to new 2-year low,” Politico, 13 August 2024)