Airports Warn of Route Cancellations and Passenger Cost Hikes as Business Rates Set to Skyrocket
Airports are set to express their concerns to Rachel Reeves about the severe impact of the budget, as revealed in a draft letter obtained by Sky News. The sector's leading association warns that the new budget could quintuple their business rates to over £1 billion, potentially leading to the cancellation of routes and increased costs for travelers.
City editor @MarkKleinmanSky
Wednesday, November 27, 2024, 12:
Major UK airports are reacting strongly to Rachel Reeves's budget, cautioning that the aviation sector's £1 billion business rates expense could lead to fewer flight options in and out of the country and increased ticket prices for travelers.
Sky News has acquired a preliminary letter from Airports UK, an organization representing over 50 airports nationwide, stating that the upcoming reassessment of business rates will compel the sector to pay in excess of £1 billion, quintupling the present amount.
The report refers to the effect as "devastating" and calls for an immediate meeting with the chancellor to address the policies that will impact the industry starting April 2026.
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"The statement noted that airports are among the top contributors to local rates in the nation."
"The latest reassessments will raise the average rate bills for English airports by over 450%, with certain airports experiencing increases up to twelvefold."
The preliminary version of the letter, aimed at Ms. Reeves and expected to be shared with Sir Keir Starmer and other cabinet members, is reportedly nearing completion.
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Industry Insider:
An industry insider mentioned that it might be dispatched soon, potentially within the next few days.
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According to the draft observed by Sky News, the trade association states that the skyrocketing bill for rates "essentially doubles the corporation tax imposed on the industry, during a period when the government has pledged to maintain consistent tax and policy environments to boost business assurance and encourage investments from the private sector."
"However, such hikes in rates would obliterate any possibility of this and inflict significant harm on the economy," it stated.
"Funding for airport infrastructure is expected to decline, leading to a reduction in flight paths connecting the UK (similar to trends observed in Germany amid increasing taxes). This will negatively impact commerce and force UK passengers to face steeper expenses and fewer options."
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Airports UK has expressed concerns that the recent fiscal alterations outlined in the budget could undermine the government's comprehensive strategy for economic expansion.
"The report emphasized that without significant involvement from our industry, the government's goal to achieve the top growth rate among G7 nations and initiate a transformation of the economy driven by investments will be substantially hindered."
The upcoming reassessment of business rates by the Valuation Office Agency could jeopardize the United Kingdom's position as a premier aviation leader and a central nexus for worldwide connectivity and commerce.
It's unrealistic to assume that airports can handle such significant growth without either reducing their investments or eliminating some routes.
"These hikes are harsh for airports of all sizes and jeopardize the survival of many, which is essential for maintaining vital regional links."
"This could jeopardize your expansion goals before they even begin, and we urgently request a meeting in December to address this issue."
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The correspondence positions airports among a series of sectors that have issued severe cautions to the Treasury regarding the anticipated effects of the Budget.
Over the past few weeks, Sky News has uncovered comparable correspondences from the hospitality and retail industries, which have communicated to the chancellor that the upcoming increase in employers' national insurance, scheduled for next April, will inevitably lead to layoffs, business shutdowns, and higher prices.
The alert from the aviation sector emerges as there’s a flurry of business transactions taking place, highlighted by a report from The Sunday Times last weekend, which noted potential ownership transfers of London City and Bristol airports in a deal valued at £10 billion.
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Discover further updates from Sky News: Reeves commits to halting tax increases and additional borrowing. Authority issues decision on grocery store loyalty pricing. Vauxhall's parent company plans to close Luton facility.
Heathrow's ownership has shifted recently, as Ardian, an investor from Paris, along with Saudi Arabia's sovereign wealth fund, acquired a 38% share in the airport.
A representative from Airports UK chose not to comment on the letter.
The industry group is managed by Karen Dee and presided over by Baroness McGregor-Smith, a distinguished figure in the business community.
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Fianna Fail Rejects Coalition with Sinn Fein, Prioritizes Reconciliation Over Unity Poll in Pre-Election Clash
Fianna Fail intensifies its rejection of a coalition with Sinn Fein
Chief Micheal Martin informs Sky News that his priority is "reconciliation," not the referendum on Irish unity proposed by his rivals.
Chief Ireland Correspondent for Sky News @skydavidblevins
Tuesday, November 26, 2024, 5:
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Fianna Fail's leader, Micheal Martin, has declared that his party has officially decided against forming a coalition government with Sinn Fein following the general election in Ireland.
Recent surveys indicate that the three major parties – Fine Gael, Fianna Fáil, and Sinn Féin – are currently locked in a close race with similar support levels.
In the latest installment of our pre-election leadership interviews, Mr. Martin informed Sky News that Sinn Fein's approach to housing would severely disadvantage first-time home purchasers.
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He stated: "They intend to eliminate the help-to-buy program and the first home transition scheme."
"When combined, they are capable of providing a first-time buyer with as much as €80,000."
"He also added that Sinn Fein's housing strategies would ultimately lead to delays, disruptions, and increased costs."
Housing issues have taken center stage in the campaign, as the number of individuals in emergency shelters has surged to almost 15,000 from slightly above 10,000 in 2020.
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When questioned on why the crisis worsened during the time his party was in a coalition with Fine Gael for the past four years, he responded, "We need to increase our efforts.
"We recognize the significant obstacles before us, yet we possess the superior strategies.
"Over the past four years, 125,000 new homes have been constructed, indicating that Fianna Fail indeed took charge of the housing sector and successfully shifted the momentum," he further stated.
Mr. Martin, who held the role of taoiseach during the initial half of the previous coalition’s tenure, now occupies the positions of tanaiste (deputy prime minister) and minister of foreign affairs.
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He acknowledged the public's worries regarding "the substantial rise in asylum seekers in this country" and promised to create a new department of domestic affairs to tackle the issue.
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Considering the "chaotic global landscape," he also expressed differing views with Sinn Fein regarding the urgency of pursuing Irish unification.
He stated, "I am dedicated to bringing together individuals from all backgrounds, whether Protestant, Catholic, or dissenter, as this has always been my fundamental belief."
"When I assumed the role of Taoiseach, I operationalized those ideas by establishing the Shared Island Initiative, the most significant effort since the Good Friday Agreement."
We invested €1 billion in that initiative to complete numerous projects. For me, that represents the practical substance of the plan.
"Let's work toward reconciliation. We're tired of the endless talk and the constant demands from Sinn Fein."
"This initiative has been in place for 75 years. While it hasn't accomplished much, its core focus is on supporting reconciliation efforts. It's really centered around the community."
Catch the complete interview with Micheal Martin on Politics Hub, hosted by Sophy Ridge. Additionally, Sky News has conducted interviews with the leaders of Fine Gael and Sinn Fein.
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Spice Up the Workforce: Liz Kendall’s Bold Welfare Reforms Aim to Get Britain Working Again
Labour's Liz Kendall, often dubbed the 'Spice Girl', is optimistic that her proposed welfare reforms will be well-received.
During the elections, Labour announced its goal to boost job numbers by approximately two million.
Senior political reporter @joncraig
Tuesday, November 26, 2024, 6:
Liz Kendall faced an ironic situation when she introduced a solution for Britain's absenteeism issue, only to struggle with a raspy and worsening voice while responding to MPs' questions for over an hour.
Courageous Liz, an alumna of Watford Grammar School for Girls alongside Spice Girl Geri Halliwell, is committed to her fitness, running five mornings each week. This year, she even underwent a hip replacement, showing that she isn't one to take a day off unless absolutely necessary.
Certainly, she presented what she termed the most significant labor reforms in decades, delivering exactly what Labour MPs had been clamoring for. Conversely, it was no shock that Tory MPs criticized her, accusing her of completely missing the mark.
Ms. Kendall's Get Britain Working initiative features proposals that aim to create employment opportunities for aspiring youths with prominent organizations like the Premier League, Channel 4, and the Royal Shakespeare Company.
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Labour's "Spice Girl" has introduced a three-part overhaul that includes a "youth guarantee" of apprenticeships, training, or education in regions like Liverpool, Tees Valley, and the East Midlands.
The additional measures include a technological revamp of outdated job centers through the use of artificial intelligence and mobile applications, which she described as "a job center in your pocket," and an intensive effort to tackle NHS waiting lists in regions with the highest rates of economic inactivity.
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The plans were quite bold. However, Helen Whately, the Conservative's "Posh Spice" and shadow secretary for work and pensions who received a private education, was clearly unimpressed. She dramatically exclaimed, "Is that all?" while gesturing wildly, much like a true diva.
She criticized the Labour Party for both "stealing our concepts" and "avoiding tough choices." However, she questioned, how can it be both? That seems contradictory. Additionally, she attributed the high unemployment rates to the pandemic.
The notable distinction in the reform initiatives between Spice Girl Liz and her Conservative predecessor, Mel Stride, lies in their focus groups. Liz's reforms are designed to engage the youth who are currently unemployed, whereas Mel Stride's policies concentrated on encouraging individuals over 50 to re-enter the workforce.
Ms. Kendall's initiatives are also designed to address the issue of a historic high of 2.8 million individuals unemployed because of prolonged illness. She intends to integrate an additional two million people into the workforce.
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The strategy will focus on areas with high unemployment rates. Funds designated for reducing NHS wait times and assisting individuals off of disability benefits will be allocated to eight pioneering regions, such as North East England and Yorkshire.
"Indeed," stated Tory MP "Posh Spice" and fellow Conservatives, who argued that although Ms. Kendall strives to generate employment, the increase in national insurance outlined in the chancellor’s budget will result in the loss of 50,000 jobs.
The topic of welfare reform is not new. In 1997, Tony Blair instructed Frank Field to "think the unthinkable" concerning this issue. Since then, both Labour and Conservative administrations have faced challenges in transitioning individuals from welfare to employment.
However, the issue has been escalating, and it's important to note that the pandemic has played a significant role in this.
Liz Kendall's raspy voice is expected to heal soon, but healing the issues of "sicknote Britain" will require more time. However, akin to the actual Spice Girls, she's optimistic that her welfare reforms will be successful.
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Future Smoke-Free Generation: UK Bill to Ban Tobacco and Vapes for Youth Clears Initial Vote Amidst Controversy
Legislation to prohibit the younger population from smoking and to intensify regulations on vaping passes initial test
The proposal, known as the Tobacco and Vapes Bill, would bar individuals born post-1 January 2009 from legally smoking at any point in their lives, gaining significant support from MPs in its preliminary round.
Political correspondent @fayebrownSky
Tuesday, November 26, 2024, 21:
A groundbreaking legislative measure prohibiting future smoking among the youth has successfully passed its initial stage in the House of Commons.
The proposed law, supported by a vote of 415 to 47, would ban the sale of tobacco to individuals born on or after January 1, 2009, should it be enacted.
Prior to its passage, the legislation will undergo additional phases in parliament, during which members can propose changes to parts they find objectionable.
Additional proposals under consideration are a complete prohibition on advertising and sponsorship related to vapes, along with a potential ban on the sale of sweet-flavored vapes, pending further discussion.
This evening's figures show significant bipartisan backing, though there was notable opposition from Conservative, Liberal Democrat, and Reform UK members who expressed worries regarding "civil liberties."
The voting record indicated that Conservative leader Kemi Badenoch opposed the proposal, after stating that "individuals born just one day apart would possess forever distinct rights."
Ex-home secretary Suella Braverman, opposition immigration spokesperson Robert Jenrick, and Sir Iain Duncan Smith, all notable members of the Conservative Party, were among those who did not support the legislation.
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Most members of the Liberal Democrats voted in favor of the legislation; however, the party's health spokesperson, Helen Morgan, expressed concerns, stating, "Implementing a gradual ban on smoking is challenging, not because we in the Liberal Democrats wish to see individuals harm themselves with smoking – quite the opposite – but because it introduces problems related to feasibility and concerns regarding civil liberties."
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Originally introduced by Rishi Sunak during his tenure as Prime Minister, the Tobacco and Vapes Bill did not progress to the House of Commons because Sunak announced a general election, which he subsequently lost.
Mr. Sunak did not participate in the vote this evening, similar to Nigel Farage. However, other MPs from Reform UK voted against the proposal.
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Health Secretary Wes Streeting stated that the Labour administration is advancing this bill to prevent young individuals from being trapped in a "lifetime of addiction."
He also informed members of Parliament that he would take strict measures against the vaping industry to prevent young people from becoming addicted to nicotine.
Demand for tax on smoking products
During the discussion, a variety of opinions were expressed, and Conservative MPs were allowed a free vote, enabling them to vote according to their personal convictions rather than following party directives.
Conservative MP Bob Blackman has advocated for the law to be extended to impose a tax on tobacco companies' earnings, aiming to make them accountable for the negative impact on public health.
He revealed, "Smoking-related cancer claimed the lives of both my parents. My mother, who was a lifelong heavy smoker, passed away at the age of 47. Following her death, I, at 23, found myself responsible for raising my three younger sisters."
Ex-health minister Victoria Atkins was one of the 23 Conservative MPs supporting the legislation, while a total of 35 Tories were recorded as voting in opposition.
The bill grants authority to implement a licensing system for vendors dealing in tobacco, vaping, and nicotine items across England, Wales, and Northern Ireland.
Retailers caught selling to underage customers will be immediately fined £200.
Mr. Streeting stated that the government plans to seek public input on prohibiting smoking in the vicinity of schools, hospitals, and playgrounds as a measure to shield children and vulnerable individuals from the adverse effects of passive smoking, as proposed in the bill.
He confirmed that this will not apply to pub gardens and other outdoor hospitality areas, after the government abandoned those proposals in response to significant opposition.
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Taxing Times: New Analysis Reveals Inheritance Tax Could Impact Fivefold More Farms Than Government Estimates
Analysis shows inheritance tax could impact five times more farms than initially estimated by the Treasury
The actual number of farms likely to be impacted by the proposed tax adjustments has been hotly contested, with another farming organization suggesting the figure could far exceed initial government estimates.
Political correspondent @alixculbertson
Wednesday, November 27, 2024, 11:
According to recent analysis, the updated inheritance tax policy might impact nearly five times as many farms as the Treasury originally estimated.
According to the government, its proposal to implement a 20% inheritance tax on farms valued over £1 million is expected to impact 500 farms during the fiscal year 2026-2027, as estimated from previous records.
According to an analysis by the Central Association of Agricultural Valuers (CAAV), approximately 2,500 farms could face impacts annually.
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The organization, which advocates for UK agricultural enterprises, discovered that as many as 75,000 separate farms might face impact from the tax over a period defined as 30 years, or one generation.
Jeremy Moody, who penned the report and serves as secretary and adviser at CAAV, informed Sky News that the government's data failed to consider farmers eligible solely for Business Property Relief (BPR).
Last week saw protests from farmers who argued that the new tax could spell disaster for numerous family-owned farms, as they might be forced to sell their land to cover the tax expenses.
Agriculture Secretary Steve Reed had earlier pledged to maintain the current inheritance tax policy for farmers.
Critics argue that the government's statistics are inaccurate, suggesting that over 500 family farms are impacted annually.
The National Farmers' Union (NFU) reported that around two-thirds of the UK's 209,000 farms are impacted, whereas the Country Land and Business Association (CLA) indicated that 70,000 farms would face effects.
Mr. Reed has maintained that the figure is derived from "raw data," emphasizing that the Treasury has considered all potential numbers in their analysis.
The Treasury indicated that its statistics were derived from information on farms that had applied for Agricultural Property Relief (APR), including those that claimed both APR and Business Property Relief (BPR), but not those claiming only BPR.
Currently, for farmers to receive full exemption from inheritance tax, they must apply for Agricultural Property Relief (APR) on farmhouses, land, and buildings, and Business Property Relief (BPR) for machinery and livestock, though BPR can also be applied to land and buildings.
Discover more: Agricultural tax demonstration highlights industry's sense of neglect. What's the issue with the inheritance tax for farmers?
What are the benefits available to farmers through APR and BPR?
Farmers can utilize Agricultural Property Relief (APR) and Business Property Relief (BPR) to achieve full exemption from inheritance tax.
Various elements of farms are covered by the two programs, and certain elements may qualify for claims under both.
Certainly! Here's
Rural homes occupied by agricultural workers
Structures designated for farming needs, like storing grain or sheltering animals.
Areas designated for agriculture and cultivation, including forests utilized as protective barriers for farming activities.
BPR:
Equipment, including tractors
Farm Animals
Rural Markets
Vacation and business rentals on agricultural properties
Structures designated for farming activities
Agricultural land
Not every farm is required to apply for Business Property Relief
Mr. Moody clarified that certain farms require farmhouses nearby to manage their livestock effectively, which necessitates applying for Agricultural Property Relief (APR) for the farmhouse and Business Property Relief (BPR) for equipment.
However, not everyone is required to apply for Agricultural Property Relief (APR) since not all farming operations have a residential component. This is often the case for crop producers who do not reside on the farm itself, allowing them to opt for Business Property Relief (BPR) instead.
"He informed Sky News that the Treasury did not independently review the BPR claims."
"Unless you're making a case for the worth of a farmhouse, which can be considerably valuable nowadays, it's simply easier to assert BPR for the land and equipment."
A property owner may choose to apply for Business Property Relief (BPR) on their farm for the sake of simplicity, as in the past, it has made no difference whether Agricultural Property Relief (APR)
"When a family farm operates under a corporate structure, it is also eligible to claim Business Property Relief (BPR), which is a legitimate action."
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What is the duration of a generation?
Mr. Moody pointed out that official statistics overlook the fact that farms are often passed down generationally every 30 years, such as from an 85-year-old at their death to a 55-year-old offspring.
"Mr. Moody pointed out that while the government's data acknowledges the impact of the inheritance tax spans more than 75 years, they overlooked the actual duration of a generation."
The government has announced that due to spousal inheritance tax exemptions, a couple can transfer ownership of a farm valued at as much as £3 million without incurring any inheritance tax. They mention that since the tax can be spread over a decade, it shouldn’t pose a significant burden, a point contested by farmers.
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A representative from the government informed Sky News, "We remain unwavering in our support for our agricultural community. We have allocated £5 billion to the agricultural budget for the next two years, with unprecedented funding for sustainable agriculture. Additionally, we are crafting a 25-year strategic plan aimed at enhancing the profitability of the farming industry for future decades."
"Since the announcement of this modification, it has been explicitly stated that approximately 500 claims for Agricultural and Business Property Relief will be affected annually. This estimation stems from real claims data. Moreover, when inheritance tax is applicable, it is essentially imposed at a rate that is half of what others pay."
"Determining inheritance tax obligations simply from the net worth of a farm is unreliable because various factors influence each farm's situation. These factors include the identity of the owner, the form of ownership, the number of owners, and the planning of their financial affairs."
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UK Airports Warn of Route Cancellations and Passenger Fare Hikes Amid Fivefold Business Rates Increase
Airports are voicing strong objections to the budget, cautioning of a severe impact on business rates. The sector's trade association intends to inform Rachel Reeves that the new budget could quintuple their business rates expenses to over £1 billion, potentially leading to the cancellation of routes and increased costs for travelers, according to a preliminary letter obtained by Sky News.
City editor @MarkKleinmanSky
Wednesday, November 27, 2024, 12:
Major UK airports are reacting strongly to Rachel Reeves's budget, cautioning that the £1 billion business rates charge for the sector could lead to the elimination of some flight routes and increased prices for travelers.
Sky News has accessed a preliminary document from Airports UK, an association representing over 50 national airports, indicating that upcoming changes in business rates could quintuple the industry's expenses, surpassing £1 billion from the present figures.
The report characterizes the impact as "devastating" and calls for an immediate meeting with the chancellor to talk about the policies, set to impact the industry starting April 2026.
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"The statement noted that airports are among the highest contributors to property tax revenues in the nation."
"Under the new assessments, the typical rate charges for airports in England will rise by over 450%, with certain airports experiencing increases up to twelvefold."
The preliminary version of the letter, directed at Ms. Reeves and expected to be shared with Sir Keir Starmer and additional cabinet members, is reportedly nearing completion.
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A source from the industry mentioned that it might be dispatched soon.
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According to a draft reviewed by Sky News, the trade association claims that the skyrocketing rates bill is akin to doubling the corporate tax imposed on the industry. This comes at a moment when the government has pledged to maintain steady tax and policy environments in order to boost business confidence and encourage private investment.
"However, these rate hikes would eliminate any possibility of this and inflict significant harm on the economy," the report stated.
"Funding for airport infrastructure is expected to decline, leading to the elimination of several flight paths to and from the UK—a trend already evident in Germany due to increasing taxes. This will negatively impact trade and result in increased expenses and fewer options for British passengers."
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Airports UK has expressed concern that the fiscal alterations revealed in the recent budget could undermine the government's comprehensive strategy for economic expansion.
"The report stated that without significant involvement from our industry, the government's goal to achieve the top growth rate in the G7 and implement an investment-driven strategy for economic transformation will suffer substantial setbacks."
The upcoming reassessment by the Valuation Office Agency, aimed at recalculating liabilities for business rates, could jeopardize the United Kingdom's position as a prominent player in the aviation industry and a central node for worldwide connectivity and commerce.
Airports are unlikely to handle such significant growth without reducing investment or eliminating some routes.
"These hikes are excessively burdensome for airports of all sizes and jeopardize the survival of many, which is essential for maintaining important regional links."
"This could jeopardize your development objectives from the outset, and we urgently request a meeting in December to address this issue."
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The communication positions airports among a series of sectors that have issued severe alerts to the Treasury regarding the anticipated effects of the Budget.
Over the past few weeks, Sky News has disclosed correspondence from entities within the hospitality and retail industries. These letters, addressed to the chancellor, warn of inevitable job cuts, business shutdowns, and increased prices as a result of the upcoming increase in employers' national insurance set to begin next April.
The alert from the aviation sector emerges as numerous business transactions are taking place, highlighted by The Sunday Times' recent revelation that London City and Bristol airports might be involved in a transaction valued at £10 billion.
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Get further details from Sky News: Reeves commits to halting additional tax increases and borrowing. Authority issues decision on grocery store loyalty pricing. Vauxhall's parent company plans to close Luton facility.
Heathrow's ownership landscape has shifted recently, as Ardian, an investor based in Paris, along with the sovereign wealth fund of Saudi Arabia, have acquired a 38% share in the airport.
A representative from Airports UK chose not to respond to inquiries about the letter.
The industry group is managed by Karen Dee and presided over by Baroness McGregor-Smith, a distinguished business figure.
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William Hague Triumphs in Oxford University Chancellor Election, Edging Out Labour’s Peter Mandelson and Other Contenders
Ex-Tory chief William Hague surpasses competitors such as Labour's Peter Mandelson to secure the chancellorship of Oxford University.
From an initial roster of 38 hopefuls, the selection was narrowed down to five finalists, among them Lady Elish Angiolini, Baroness Jan Royall, and Dominic Grieve. Almost 25,000 votes were cast by university graduates and personnel.
Journalist Tim Jones @TimJones_SN
Wednesday, November 27, 2024, 2:
Ex-Tory chief William Hague has been appointed as the chancellor of Oxford University, outperforming Labour peer Peter Mandelson and others for the position.
In the concluding round of the election, Lord Hague just edged out Lady Elish Angiolini, securing the victory with a count of 12,609 votes to her 11,006.
She was widely expected to be named the first female chancellor of the esteemed university.
As an esteemed attorney, she had carried out independent investigations on behalf of governments, such as the probe into the killing of Sarah Everard.
Other contestants in the race were Labour peer Baroness Jan Royall and ex-Conservative minister Dominic Grieve.
"Oxford holds my deepest affection, and I am committed to devoting the next few years to the university that means so much to me," stated Lord Hague in a recent announcement.
Lord Hague, aged 63, is set to be officially inaugurated into his position at the beginning of the New Year and will hold the role for a decade.
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The chancellor holds a leading role in significant university events, engages in fundraising activities, and represents the university at local, national, and global gatherings.
William Hague completed his studies at Magdalen College, Oxford, earning a degree in philosophy, politics, and economics in 1982.
He has been appointed as the 160th chancellor in the history of the university, a position that has existed for over 800 years.
He succeeds Lord Chris Patten, another prominent former Conservative politician, who is stepping down at 80 following two decades of service in the position.
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Oliver Cromwell, the inaugural Duke of Wellington, along with Prime Ministers Lord Salisbury and Harold Macmillan, are among the individuals who have held the position.
Speculation about potential candidates for the position has involved former UK Prime Ministers Tony Blair, Boris Johnson, and Theresa May, along with ex-Prime Minister of Pakistan and cricket star Imran Khan.
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They all attended Oxford, but it's not necessary to have studied there to become chancellor.
To qualify for the election, candidates were required to gather 50 nominations. The electoral process saw participation from over 24,000 individuals, including alumni and current and former members of the university's governing board.
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European Parliament Faces Pivotal Votes on New Commission, 2025 Budget, and Critical Policy Debates
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Wednesday, 27th of November
Discussion and Voting on the Newly Formed European Commission
At 8:00 AM, the Conference of Presidents, which includes President Metsola and leaders of the political groups, will conduct the final assessment of the hearings for the Commissioners-designate. At 9:00 AM, Ursula von der Leyen, the President-elect of the European Commission, will introduce her team and outline her program to the plenary session, which will be followed by a discussion with Members of the European Parliament (MEPs). Subsequently, a roll-call vote will be held to approve the entire College of Commissioners. To secure election, the Commission requires a simple majority of the votes cast. Additionally, the plenary will vote on two draft resolutions regarding the new Commission's composition, which have been proposed by political groups. Following the vote, Presidents Metsola and von der Leyen will address the media in a press conference.
Kyriakos Klosidis
Phone number: +32 470 96 47
Institutional_EP
Decision on the European Union's 2025
After the debate that took place yesterday, the plenary session is set to cast their votes at midday regarding the EU budget for 2025. Members of the European Parliament have ensured that the budget emphasizes key areas such as climate change, healthcare, humanitarian assistance, and border control. Additionally, an agreement was reached between co-legislators on how to cover the expenses associated with the EU's recovery fund.
Armin Wisdorff
Phone number: +32 498 98 13 45
Budgets of the European Parliament
Hybrid attacks on vital infrastructure in the Baltic Sea are under scrutiny. Starting at approximately 4 PM, Members of the European Parliament and Commissioner Johansson will engage in a discussion about the recent incidents involving the severing of undersea telecommunication cables in the Baltic Sea, which are believed to be acts of sabotage.
Baptiste CHATAIN
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Exposure to tobacco smoke will be the focus of a discussion between Members of the European Parliament (MEPs) and Commissioner Dalli later today. They aim to find more effective ways to shield citizens of the European Union from the dangers of inhaling second-hand smoke and electronic cigarette aerosols. A decision on a related resolution is expected to take place on Thursday.
Energy Poverty. At approximately 5:30 PM, Members of the European Parliament (MEPs) will examine the ongoing issue of elevated energy costs and how they affect the public, during a discussion with Commissioner Simson.
Legislation Against LGBTQI. During a discussion with Commissioner Dalli, Members of the European Parliament are anticipated to raise concerns about laws targeting the LGBTQI community and emphasize the importance of safeguarding the rule of law and ensuring an EU free from discrimination.
Human Rights. During the evening session, the full assembly will examine issues related to Hong Kong, focusing on Jimmy Lai's case. Additionally, they will address the ongoing and systematic oppression of women in Iran and the diminishing freedom for civil society groups in Cambodia, with specific emphasis on the labor rights group CENTRAL.
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At midday, Members of the European Parliament are scheduled to cast their
You can watch the live broadcast of the plenary session on Parliament's web streaming service and EbS+.
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Politics
Taxing Times: Starmer Hesitates to Echo Reeves’ No-Tax-Hike Pledge Amid Fiscal Scrutiny
Starmer declines to echo chancellor's pledge against further tax hikes
The Prime Minister has stepped back from Rachel Reeves' assurance to the business community that there would be no additional iterations of her contentious budget policies from October.
Political journalist @fayebrownSky
Wednesday, November 27, 2024, 2:
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Sir Keir Starmer has declined to reiterate a commitment previously given by the chancellor that there would be no additional increases in borrowing or taxes by the government.
At the Confederation of British Industry (CBI) conference on Monday, Conservative leader Kemi Badenoch urged the prime minister to strongly reinforce the pledge made by Rachel Reeves.
Politics Live: Starmer claims 'significant petition' in hand, rebuffs demands for election
Ms. Reeves assured corporate executives that her budget plan does not include additional borrowing or tax increases as she justified the policies she introduced.
When prompted to reaffirm his commitment during Prime Minister’s Questions, Sir Keir responded, "I am not going to outline the next five years of budgets right now from this podium."
"We pledged not to reduce the earnings of the employed. We approved the budget, made investments for tomorrow, and upheld our commitment."
Ms. Reeves' financial plan has come under strong condemnation from prominent UK companies, which argue that the expensive policy initiatives will compel them to increase prices and reduce their workforce.
Further Information about Rachel Reeves
Is Rachel Reeves being honest?
Chancellor Rachel Reeves pledges to avoid any further tax increases
Is Rachel Reeves Following in Margaret Thatcher's Footsteps?
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The chancellor declared tax hikes totaling £40 billion, with the majority stemming from a £25 billion rise in National Insurance contributions for employers.
Critics such as the CEO of the biscuit behemoth McVitie's have voiced concerns, stating that following the chancellor's recent policy choices, the rationale for investing in the UK is "increasingly difficult to comprehend."
Ms. Badenoch capitalized on those remarks, stating that "while the Prime Minister was mingling in Brazil" – alluding to his participation in the previous week's G20 Summit – "businesses were grappling with understanding his budget."
In response, Sir Keir criticized her for desiring "all the advantages of the budget" without bearing the costs.
He accused her of accumulating £6.7 billion in unbacked pledges within her first three weeks as the opposition leader, and pointed out that she has not clarified whether the Conservatives would repeal the government's increase in National Insurance.
"He added that they truly don't know what they're doing."
Further Reading: Airports express concern over budget, cautioning a potential disaster due to business rates. Central to Labour’s strategy is the overhaul of Jobcentres to boost UK employment.
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The increase in employer National Insurance contributions emerged as the most debated aspect of the Labour Party's budget, particularly because they had pledged not to raise national insurance, income tax, or VAT during their electoral campaign.
Officials subsequently clarified that the commitment regarding Northern Ireland pertained solely to the worker portion of the tax, pointing out that their electoral platform had explicitly stated there would be no tax increases for "working individuals."
The administration defends the increase in employer National Insurance contributions by citing a £22 billion deficit in the nation's budget, left by the Conservative party. They argue that this funding is essential for the sustained expansion of public services, including the NHS.
Reeves: 'We've started afresh'
On Wednesday, Ms. Reeves faced further inquiries about how she could assure that there would be no need for additional tax hikes or borrowing, in light of doubts about the budget proposals.
She didn't echo her statements from Monday, instead aligning more closely with what Sir Keir mentioned during Prime Minister's Questions.
"I won't be drafting five years of budgets within the initial months of my tenure as Chancellor of the Exchequer," she informed the press.
"I can confirm that we have effectively addressed the economic and fiscal shortcomings of the prior administration. Our public finances are now stable and robust, and we have ensured adequate funding for our public services."
"Public services must operate within the budget constraints established for the current parliamentary term."
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Politics
European Parliament Leaders Conclude Hearings for Commissioners-designate, Setting Stage for Crucial Plenary Vote
EP leaders officially wrap up the hearings for Commissioners-designate
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The Conference of Presidents has officially ended the hearings for Commissioners-designate and approved the release of all evaluation letters.
The European Parliament's Conference of Presidents, comprising President Metsola and the leaders of various political groups, has formally wrapped up the hearings for the Commissioners-designate. This development clears the path for the plenary session to vote on the new Commission at midday.
After examining the outcomes of all hearings on November 26, the Conference of Committee Chairs conducted a review. Following their findings, the Conference of Presidents carried out a final evaluation, examining the assessment letters from the responsible committees and the suggestions given by the Conference of Committee Chairs. Consequently, the Conference of Presidents announced that the hearings were concluded and approved the release of all evaluation letters.
Full assembly voting scheduled for November 27
Today, on November 27, at midday, a full vote on the entire new College will be conducted in Strasbourg.
Prior to the voting process, Members of the European Parliament (MEPs) are scheduled to discuss the agenda of the incoming Commission alongside its leader, Ursula von der Leyen, who will introduce the team of Commissioners. At the conclusion of this discussion, any political faction or a minimum of five percent of the MEPs have the option to propose a motion for a resolution.
In order for the Commission to be chosen, it needs to obtain more than half of the votes in a roll-call voting process.
After being elected by Parliament, the Commission will be officially appointed by the European Council, requiring a qualified majority vote. The term for the new European Commission is expected to begin on December 1, 2024.
Context
Annex VII of the European Parliament's Rules of Procedure outlines the responsibilities of Parliament in endorsing the European Commission and overseeing the promises made during the hearings.
The updated procedural guidelines, effective from July 2024, underwent modifications on April 10, 2024. These changes are a component of a comprehensive overhaul of the Parliament's internal operations, which received approval from the Conference of Presidents in December 2023.
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Politics
European Parliament Greenlights ‘von der Leyen II’ Commission Amidst Calls for Stronger EU Competitiveness and Security
Parliament gives the green light to the "von der Leyen II" Commission
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After discussing with Ursula von der Leyen about her proposed team and agenda, Members of the European Parliament voted by roll call to approve the entire College of Commissioners.
A total of 370 Members of the European Parliament supported the motion, while 282 opposed it, and 36 chose not to vote. Information regarding individual MEPs' votes will soon be accessible on the official Parliament website and documented in the minutes of the plenary session.
For the College of Commissioners to be approved, they required more than half of the votes from those participating, as outlined in rule 129.7 of the European Parliament's Rules of Procedure.
Ursula von der Leyen has been appointed for a second term as the President of the European Commission, after Members of the European Parliament (MEPs) gave their approval to her initial Commission in November 2019.
Discussion with Members of the European Parliament prior to the voting process
Before the voting took place, Ursula von der Leyen introduced her team and outlined her agenda, agreeing to the portfolio adjustments that Members of the European Parliament had suggested during their review. "We are prepared to start working right away," she announced, emphasizing that her Commission remains committed to championing freedom, sovereignty, security, and prosperity. Her complete speech is available on the Commission's website.
Commission President Ursula von der Leyen revealed that the Commission's initial project will be a "competitiveness compass." This initiative aims to bridge the innovation divide between Europe, the US, and China, while enhancing security and autonomy, and advancing decarbonization efforts. Regarding the European Green Deal, von der Leyen emphasized the importance of adhering to its objectives. She pledged to introduce a clean industrial agreement, initiate discussions on the future of the European automotive sector, persist in developing a competitive circular economy, and strive for the establishment of a European savings and investment union.
Addressing the continuing conflicts in Ukraine, the Middle East, and regions of Africa, Ms. von der Leyen emphasized the necessity for Europe to take on a more significant role in these situations, highlighting that Europe’s involvement is more essential now than ever before. She underscored the importance of enhancing security measures and urged Europe to increase its defense spending. "Ensuring Europe's security will remain a top priority for this Commission," she stated.
During the following discussion, several Members of the European Parliament highlighted the urgency for the incoming Commission to tackle Europe's pressing issues without delay. They urged the Commission to enhance Europe's competitive edge amidst growing global competition, to put the European Green Deal into action, to secure energy independence, and to establish a defence union in light of the continuing conflict in Ukraine. Meanwhile, some members expressed their dissatisfaction with the newly appointed College of Commissioners. Video and audio clips from the debate can be accessed via Parliament’s Multimedia Centre.
Media briefing
After the vote results are revealed, Roberta Metsola, the President of the Parliament, and Ursula von der Leyen, the President of the Commission, will speak to journalists in the Daphne Caruana Galizia press conference room at the Parliament in Strasbourg around 13:00 CET. Details are provided in the corresponding media advisory. The press briefing will be broadcast live and can be accessed later via the Parliament’s Multimedia Centre and EbS+.
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Following its official selection by the European Council through a qualified majority vote, the incoming European Commission is anticipated to begin its responsibilities on December 1, 2024.
Context
Members of the European Parliament (MEPs) evaluated the suggested College of Commissioners during public hearings that took place from November 4 to November 12. The nominees participated in these hearings before various European Parliament committees to determine their qualifications and competence for the responsibilities associated with their designated roles.
On November 27, the Conference of Presidents in Parliament announced the conclusion of the hearings and released the assessment letters for all the proposed Commissioners. For further details on the 2024 Commission investiture procedure, refer to the briefing note provided by Parliament’s Research Service.
Outcomes from earlier Commission approval votes:
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Politics
EU-Haushalt 2025: Ambitionierter Finanzplan stärkt zentrale Programme und begegnet globalen Herausforderungen
EU Budget for 2025: Enhancing Key EU Initiatives, Managing Debt Costs, Reversing Council Cuts
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For the 2025 EU budget, the Parliament has ensured improved support to address challenges such as healthcare, humanitarian aid, border management, and climate protection.
On Saturday, November 16, the European Parliament reached an agreement with member states on a bold EU budget for 2025. The aim is to address current challenges and enhance the quality of life for citizens.
First annual budget following the revision of the Multiannual Financial Framework 2021-2027
In February 2024, during the revision of the EU's multi-annual financial framework (MFF), the parliament successfully allocated significant funds for key priorities, including aid to Ukraine. These funds were maintained in the 2025 budget. Additionally, the financing for the interest costs associated with the EU's recovery instrument was secured, with these costs nearly doubling the initial estimates for 2025. Meanwhile, funding for crucial programs such as Erasmus+ and research initiatives remained unaffected.
EU-Programme erhalten zusätzliche Finanzierung
In den Verhandlungen mit den Mitgliedstaaten konnte das Europäische Parlament zusätzliche 230,7 Millionen Euro über den ursprünglichen Vorschlag der Europäischen Kommission hinaus sichern. Diese zusätzlichen Mittel werden in wichtige Bereiche wie Forschung, Gesundheit, Bildung, Unterstützung junger Landwirte, die Koordination von Sozialversicherungssystemen, Katastrophenhilfe bei Naturereignissen, Klimaschutz, humanitäre Unterstützung, militärische Mobilität und Grenzverwaltung investiert. Außerdem umfasst das Budget weitere Gelder, die aus früheren Einsparungen stammen, darunter 422 Millionen Euro für das Erasmus+-Programm und 20 Millionen Euro für Horizon Europe.
Hier finden Sie Informationen zur Vereinbarung.
The 2025 budget received approval with 418 votes in favor, 185 votes against, and 67 abstentions. The council had previously endorsed the agreement on November 25.
Quotations
Johan Van Overtveldt, ein belgischer Abgeordneter der EKR und Vorsitzender des Haushaltsausschusses, erklärte: „Das Budget befasst sich mit aktuellen, dringenden Problemen wie der russischen Aggression gegen die Ukraine, dem anhaltenden Druck durch Migration, der verschärften Krise im Nahen Osten und den Konsequenzen von Naturkatastrophen. Besonders wichtig ist die Sicherstellung der Wettbewerbsfähigkeit unserer Wirtschaft. Dieses Budget ermöglicht es der EU, effektiv auf diese drängenden Herausforderungen zu reagieren.“ (Die vollständige Ansprache im Plenum können Sie sich ansehen)
Victor Negrescu, a member of the S&D party from Romania and the chief rapporteur for the EU's 2025 budget (Section III – Commission), announced that the budget for 2025 is nearly 200 billion euros, marking a 6% increase over the 2024 budget. This rise of 10 billion euros allows the EU to address the needs of its citizens while funding the Union's economic recovery post-pandemic, all without cutting essential programs. By approving the EU budget for the upcoming year, we are sending a strong message to the EU's citizens: Despite the challenging political and economic climate, the EU can equip itself with the necessary financial resources to implement its policies and cater to people's needs. (View the full speech in the plenary session)
Niclas Herbst, ein EVP-Abgeordneter aus Deutschland und Berichterstatter für andere Bereiche, äußerte sich: „Der EU-Haushalt für das Jahr 2025 stellt einen bedeutenden Fortschritt für die verbleibenden Jahre des mehrjährigen Finanzrahmens bis 2027 dar. Ich kann bestätigen, dass wir erfolgreich die Hauptziele des Parlaments gesichert haben, einschließlich der Verstärkung der Cybersicherheit und der Förderung der Nutzung von künstlicher Intelligenz in den Institutionen der EU. Dieses Abkommen verdeutlicht unser Engagement und unsere Verantwortung gegenüber den Bürgerinnen und Bürgern.“ (Sehen Sie sich die komplette Rede im Plenum an)
Background
More than 90% of the European Union's budget is allocated to initiatives both within the EU and beyond, benefiting citizens, regions, farmers, researchers, students, non-governmental organizations, and businesses. When compared to the budgets of individual countries, the EU budget is relatively modest, averaging between 160 and 180 billion euros annually from 2021 to 2027. This budget supports 27 member states with a combined population of 450 million people.
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Politics
EU Approves Over €116 Million in Aid for Germany and Italy: A Response to 2024 Flood Disasters
More than €116 Million in EU Aid Approved for Flood Recovery in Germany and Italy
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On Wednesday, the Parliament approved €116 million from the EU Solidarity Fund (EUSF) to support reconstruction efforts in Germany and Italy following the floods in 2024.
A total of 116,031,553 euros from the European Solidarity Fund will be allocated in the following manner:
Die finanzielle Unterstützung durch den EUSF wird einige der Ausgaben für Maßnahmen zur Bewältigung von Notlagen und zur Wiederherstellung übernehmen. Dies umfasst die Instandsetzung beschädigter Infrastruktur, den Schutz von kulturellen Stätten und die Organisation von Aufräumarbeiten.
The legislators express their "profound solidarity with all the victims, their families, and everyone affected by the devastating floods in Germany and Italy, as well as with the national, regional, and local authorities involved in the relief efforts." They highlight the increasing occurrence of severe, destructive natural disasters with casualties across Europe and call for a significant increase in the funding of the European Union Solidarity Fund or a similar tool in light of the Commission's forthcoming proposal for the new multi-year financial framework.
The aid package was approved with 660 votes in favor, 11 against, and 4 abstentions.
Additional details can be accessed here (Commission proposal) and in the Parliament's report (Rapporteur: Giuseppe Lupo, S&D, IT).
Background
Since its establishment in 2002, the European Union Solidarity Fund (EUSF) has disbursed more than 8.6 billion euros to address 130 disasters, which include 110 natural disasters and 20 health emergencies. These funds have been allocated across 24 EU member states, the United Kingdom, and four candidate countries aspiring to join the EU—namely Albania, Montenegro, Serbia, and Turkey.
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