FirstFT: EU plans to force lobbying groups to disclose big deals with foreign countries

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Brussels is planning to force lobbyists, non-governmental organisations and law firms in the EU to disclose details of big contracts with foreign governments or state-owned entities, as it attempts to clamp down on hidden influence campaigns.

Věra Jourová, the European Commission’s vice-president for transparency, told the Financial Times she would press ahead with the contentious proposal on “foreign influence”, which drafts suggest will place extra obligations on contracts worth more than €4mn a year.

Groups that fail to comply with the disclosure requirements can be fined under the planned reforms. But in a nod to critics of the measures, Jourová said the groups would not be permanently banned from engaging with EU officials.

In an additional concession to NGOs, which have objected to the draft proposal, Jourová said it may be possible for campaigners to ask for their declarations to be kept secret to avoid “stigmatisation”.

More than 200 groups protested against the law in May, arguing that they would be labelled foreign agents by autocratic regimes inside and outside the EU.

Here’s what else I’m keeping tabs on today:

• Results: NatWest earnings will be closely watched after the recent furore over Nigel Farage’s bank accounts, which has already forced resignations from the bank’s head and the chief of Coutts, its private bank. Others reporting include Air France-KLM, AstraZeneca, British Airways owner IAG, Standard Chartered and energy companies Eni, Chevron and ExxonMobil.

• Economic data: France, Germany and Spain release preliminary July inflation figures and gross domestic product for the second quarter.

Five more top stories

1. Donald Trump tried to delete surveillance footage at his Mar-a-Lago estate ahead of an FBI search, prosecutors said yesterday, as they filed an expanded indictment and added a third defendant. The case relates to the former US president’s handling of classified documents and comes as he awaits another potential indictment related to the 2020 presidential election. Read the full story.

2. Spain faces an EU probe over its curbs on ride-hailing services designed to protect the traditional taxi industry. The European Court of Justice last month ruled the city of Barcelona’s restrictions were “contrary to European law” in part because they were designed to insulate regular cabs from new app-based competition.

3. Intel’s shares rose after the company reported PC chip sales declined less than expected. Sales fell 12 per cent in the second quarter, better than the 21 per cent forecast by analysts and a 38 per cent drop in the first quarter. Its chief financial officer told investors the PC market was likely to return to “normal” trading conditions in the second half of the year.

• Silicon Valley: Sequoia Capital has slashed the size of two of its funds, including a cryptocurrency vehicle raised last year, as the venture capital firm retrenches amid a broad downturn for private tech companies.

4. Koran-burning protests have prompted warnings from the Swedish prime minister as the demonstrations spark anger across the Muslim world and have led to fears of increased risk of terror attacks. Police in the Scandinavian country, which has strong free-speech protections, are deciding whether to allow further burnings of the holy Islamic book.

5. Kering has agreed to buy 30 per cent of Valentino from Qatar’s Mayhoola as part of a “strategic” deal that gives the French luxury group the option to take full control of the Italian fashion house by 2028. The €1.7bn all-cash purchase could lead to Mayhoola becoming a shareholder in Kering, the Gucci owner said. Here are more details on the “strategic partnership”.

How well did you keep up with the news this week? Take our quiz.

News in-depth

This week, the European Central Bank and the US Federal Reserve raised interest rates by a quarter of a percentage point. But the two central banks also dropped hints that this could be the last rate rise in an unprecedented season of monetary policy tightening. ECB president Christine Lagarde summed up the more neutral — and rhetorically ambiguous — approach: “It’s a decisive maybe.”

We’re also reading . . . 

Chart of the day

“The era of global warming has ended; the era of global boiling has arrived,” UN secretary-general António Guterres said yesterday as scientific forecasts showed July was expected to be the hottest month ever recorded.

Take a break from the news

The buzz around this summer’s Ashes series between England and Australia disguises the fact that the pulse of global cricket has moved decisively elsewhere, to India. Here’s how the cricket-mad country is revolutionising the game.

Additional contributions by Benjamin Wilhelm, Leah Quinn and David Hindley