The Decisive Week That Decides Nothing

13 окт. 2020 г.

In theory, this week could be decisive for both the fate of the stimulus package in the US and the negotiation process between the UK and the EU. But by and large, it is unlikely to decide something.

The fact is that even if the Republicans agree on something with the Democrats (means the stimulus package), this is unlikely to change anything simply because there may not be enough time before the elections to go through all the formalities and legal procedures. Therefore, in reality, this issue will still be solved only after the elections. Most likely, the Democrats will have full power, and they will accept whatever they want.

As for Brexit, the idea is that the sides should have time to come to an agreement before the EU summit on October 15-16. This is not about the final text, but rather about agreement in principle and basic agreements. And although the chances of a deal, as we have already noted, are quite high, uncertainty still surrounds the process: both sides have said they will not seek a deal "at any cost."

The pandemic, meanwhile, continues to advance and pushes the economic recovery back. Tightening the restrictions is becoming more and more necessary with all the ensuing economic consequences.

Clouds continue to gather over the US tech giants. Last week, the US House of Representatives discussed a report on their abuse of monopoly power. This week, the Europeans decided to create a list of companies that will be subject to enhanced regulation. First of all, this concerns Apple, Facebook, Google. EU wants to limit their market power even without proof that companies are abusing their monopoly position. In short, the Europeans' complaint is the following: companies earn too much, pay too little taxes and, in addition, destroy competition by dominating the Internet, which in turn destroys traditional business.