In the Stellantis case, the European Court of Justice (ECJ) has ruled that a transfer pricing adjustment in the context of intra-group supplies of goods is not a consideration for a supply of services for VAT purposes. This was to be expected, and it also seemed likely that the transfer pricing adjustment would be qualified as an adjustment of the consideration of the initial supply of the goods.
In April 2025, China introduced new export licensing requirements for certain medium and heavy rare earth elements pursuant to the Announcement of the Ministry of Commerce and the General Administration of Customs [2025] No. 18 (“Announcement No. 18”). The measures have significantly impacted companies across a broad range of sectors, including the automotive and life sciences industries. Given that China accounts for approximately 90% of global rare earth refining capacity and that alternative sources remain limited and are frequently inferior in terms of cost and quality, affected businesses face a complex and fast-evolving compliance and strategic landscape.
In an increasingly interconnected world, logistics is the nervous system of the global economy. However, with advancing automation, from AI-controlled high-bay warehouses to networked rail freight systems, the surface area vulnerable to cyber-attacks is growing dramatically.
Private credit funds are nowadays key providers of credit to businesses and have taken over the role of traditional banks. This was particularly important during the financial crisis, when businesses required liquidity on flexible terms – the needs that banks were unable to satisfy. Another push came from the post-pandemic environment, where increasing interest rates rendered credit exposure appealing. As a result, nearly two decades of tailwind led to a boom. But as opportunities arise, so does competition. With different lenders entering the market, borrowers became more selective. Add the sliding interest rates and global instability, the private credit sector now faces some headwind.
What’s happening this week in economics? Deloitte’s team of economists examines news and trends from around the world.
The standoff between the US and Iran shows little sign of abating, after President Trump dismissed Tehran’s response to peace overtures over the weekend.
Markets are starting to adapt. Oil prices remain high, but have eased lately due to a combination of demand destruction and increased production elsewhere. US stocks continue to print at fresh highs, as European equities lag, and the dollar appears to have resumed its gradual descent against most currencies. The key EUR/USD pair is now bumping against its pre-war levels, and some emerging market bellwethers like the Brazilian real are significantly higher over the period.
Congress returns to Washington with the House set to take up its first fiscal year 2027 appropriations bill as Senate Republicans continue to navigate a second budget reconciliation bill.
On 7 May 2026, the European Parliament and the Council reached a political agreement on the Digital Omnibus on AI (“AI Omnibus”), aiming to amend the AI Act. The package responds to delayed standards, unclear governance and heavier-than-expected compliance costs.
Artificial Intelligence or AI has moved from boardroom buzzword to operational reality, and the consequences for businesses that fail to keep pace are no longer theoretical. AI has the potential to be transformative for businesses as part of a meaningful restructure, and the best path to follow is adoption and adaptation, rather than assuming significant legal risk through mass redundancies or worse external administration scenarios.
In the early hours of Thursday 7 May 2026, Council and Parliament negotiators reached a provisional agreement on the Digital Omnibus on AI. The deal confirms the postponement of the high-risk obligations to 2 December 2027 (Annex III) and 2 August 2028 (Annex I), resolves the Annex I conformity assessment dispute that had broken the previous trilogue, and adds a new Article 5 prohibition on AI systems generating child sexual abuse material or non-consensual intimate imagery.
