Thursday brought a series of significant developments across Europe, spanning security, trade policy, markets, and geopolitics.
A terrorist attack in Manchester left two people dead and heightened concerns about antisemitism.
At the same time, the United Kingdom and the European Union appeared close to a deal that could ease the impact of upcoming carbon border taxes on British businesses.
Meanwhile, European markets closed mostly higher, buoyed by labour data, and Russian President Vladimir Putin outlined his views on relations with the United States and NATO.
Terrorist attack at Manchester synagogue
A violent assault outside the Heaton Park Hebrew Congregation Synagogue in Manchester on Thursday morning left two people dead and several injured.
According to reports, the attacker first drove a car into worshippers before launching a stabbing spree.
The incident occurred during Yom Kippur, the holiest day in the Jewish calendar, amplifying the shock within the community.
Police confirmed that officers shot the suspect dead at the scene.
While authorities believe they know his identity, it has not yet been made public for safety reasons.
Two additional arrests have been made in connection with the attack, which counter-terrorism officials have declared a “terrorist incident.”
UK Prime Minister Keir Starmer condemned the assault as “horrific,” returning early from a European summit to chair an emergency meeting.
Security at synagogues nationwide has been tightened.
Leaders across Europe, including EU foreign policy chief Kaja Kallas, condemned the act, while the Israeli Embassy in London described it as “abhorrent and deeply distressing.”
UK and EU close to carbon border tax agreement
Separately, trade negotiations between the UK and the EU have shown signs of progress.
According to The Guardian, the two sides are nearing a deal that would temporarily exempt British exporters from the EU’s upcoming carbon border tax, part of the Carbon Border Adjustment Mechanism (CBAM).
The measure, due to take effect in January 2026, is designed to prevent “carbon leakage” by imposing levies on imports from regions with looser emissions rules.
The UK plans to introduce its own carbon tax in 2027, and a deal with Brussels could help bridge the gap, reducing trade friction in the meantime.
Talks are ongoing, with a formal agreement expected within weeks. The next UK-EU summit may take place in May or June 2025, where the framework could be finalised.
European markets end mostly higher
European equities finished largely in positive territory on Thursday, supported by labour market data.
The Eurozone unemployment rate stood at 6.3% in August, with stability in Italy and a decline in Spain’s figures.
Switzerland reported annual inflation at 0.2% in September.
The Euro Stoxx 50 gained 1.19%, led by a 6.26% rise in Dutch payments company Adyen.
Germany’s DAX rose 1.21%, supported by a 4.34% gain in Siemens, while France’s CAC 40 advanced 1.2% as Stellantis surged 8.33%.
In contrast, London’s FTSE 100 slipped 0.2%, weighed down by a 4.22% drop in Experian.
In currency markets, the euro weakened 0.3% against the US dollar to 1.1696, while the pound fell 0.49% to 1.3412.
Putin calls for restoration of US ties, criticises NATO
In Russia, President Vladimir Putin used his address at the Valdai Discussion Club to call for a “full-scale restoration” of relations with the United States.
He said national interests demanded mutual respect and pragmatic engagement, even amid disagreements.
At the same time, Putin accused NATO of effectively waging war against Russia through intelligence support and military assistance to Ukraine.
He described Russia’s armed forces as “the most combat-effective” under current conditions and dismissed external criticism.
The remarks come against the backdrop of continued tensions over the conflict in Ukraine, but also signal Moscow’s willingness to engage diplomatically if conditions allow.
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