Several EU Capitals Compete to Host New European Union Customs Authority

The race to host the headquarters of the new European Union Customs Authority (EUCA) has officially begun, with five countries — Poland, France, Spain, Portugal, and the Netherlands — declaring their interest in housing the agency. The EUCA is set to become a key institution in the bloc’s ongoing reform of the customs union, coordinating digital data systems and managing customs risk across all Member States.

According to the European Council, applications to host the agency opened in October 2025, with final submissions expected in early 2026 and a decision anticipated by mid-year. The EUCA will be responsible for operating the EU Customs Data Centre, overseeing cross-border customs cooperation, and supporting the protection of the single market. The authority is expected to begin operations between 2026 and 2028, employing roughly 250 staff.

Warsaw enters the race

Poland formally launched its candidacy on 31 October 2025, with Finance and Economy Minister Andrzej Domański announcing Warsaw’s bid during a press conference at the Ministry of Finance. The Polish government argues that Warsaw’s position on the EU’s external border, existing infrastructure, and experience hosting Frontex make it an ideal location for the new agency. Deputy Minister Marcin Łoboda, Head of the National Tax Administration (KAS), emphasised Poland’s strong record in customs digitisation and integrated border management.

Competing cities across Europe

France has nominated Lille, citing its proximity to Brussels and established logistics infrastructure. Spain entered the competition in September 2025 with Málaga, positioning the southern port city as a growing European logistics and innovation hub. Portugal has proposed Porto, pointing to its maritime economy and modern technology base, while the Netherlands — likely proposing either The Hague or Rotterdam — has expressed interest, leveraging its trade expertise and existing EU agency presence.

Evaluation criteria and selection timeline

The European Council and Commission will assess candidate cities based on accessibility to Brussels, quality of office facilities, security standards, data-centre capacity, housing and schooling options for staff, and synergies with other EU institutions. Shortlisted bids are expected to be announced in spring 2026, followed by a ministerial vote before mid-year.

Regional balance a key factor

Observers note that the decision may balance regional representation across the EU. With most EU agencies currently based in Western Europe, a successful Polish bid could reinforce the EU’s commitment to greater geographic diversity. Warsaw’s proposal to host EUCA alongside Frontex — both agencies focused on border and customs security — highlights its ambition to position Poland as a regional centre for EU operational institutions.

Regardless of the outcome, the establishment of the EUCA marks a milestone in the modernisation of the customs union — an initiative aimed at strengthening trade oversight, combating smuggling and counterfeit goods, and improving the resilience of the EU’s single market.

Source: European Council; Ministry of Finance of the Republic of Poland; French Ministry of Economy and Finance; Sur in English; Lusa News; Xinhua; CIJ EUROPE analysis.

Poland’s Mortgage and Consumer Lending Surge in September 2025

Poland’s credit market recorded strong growth in September 2025, driven by a surge in mortgage and cash loans, according to the latest data from Biuro Informacji Kredytowej (BIK). The increase comes amid improving creditworthiness, lower interest rates, and steady household income growth.

Compared with September 2024, banks and credit unions issued 52.4% more housing loans and 18.8% more cash loans, while installment lending and credit card issuance both declined slightly. In value terms, the market saw an even sharper rise — housing loan volumes climbed 62.8%, cash loans 21.3%, and credit cards 5.1%. Installment loans were the only category to show a modest contraction of 0.6% year-on-year.

Housing loans set a new record

The value of new housing loans reached PLN 10.67 billion in September, setting a historic monthly record and surpassing the previous peak from January 2024, during the “Safe Credit 2%” programme. The average mortgage size rose 6.8% year-on-year to PLN 448,900, reflecting higher property values and increased borrower capacity.

According to Prof. Waldemar Rogowski, BIK’s chief analyst, the record results reflect the impact of lower interest rates and rising real wages on household creditworthiness. “These favourable conditions could continue to stimulate demand, although a rise in uncertainty or global volatility could weaken momentum,” he said.

Strong growth in cash loans

The number and value of cash loans continued to expand sharply, supported by larger loan sizes and greater consumer confidence. The average cash loan amounted to PLN 26,379, up 2.1% from a year earlier. Prof. Rogowski noted that borrowers are increasingly opting for higher-value loans above PLN 50,000, helped by extended repayment periods and reduced borrowing costs. Between January and September, the total value of cash loans exceeded PLN 90 billion, raising expectations for a record annual total.

Weakness in installment lending

Installment loans, however, showed persistent weakness. BIK reported an 8.9% year-on-year drop in the number of such loans in September and a 7.1% decline in their total value for the first nine months of the year. Rogowski attributed this to a contraction in low-value retail financing and the transfer of some deferred payment (BNPL) liabilities from non-bank firms into bank portfolios.

Credit quality remains stable

Despite a slight month-to-month weakening in repayment indicators, BIK’s Quality Indexes remained at safe levels across all loan types, with improvements year-on-year for housing and cash loans. “Credit risk remains low, and further interest rate reductions and rising wages are likely to support stability,” Rogowski said.

The September results highlight the contrast between a rapidly expanding mortgage and consumer credit sector and a more subdued retail-finance market. Analysts suggest that if macroeconomic conditions remain stable, Poland could close 2025 with one of its strongest lending performances in recent years.

Source: Biuro Informacji Kredytowej (BIK) – Newsletter kredytowy Wrzesień 2025, published 29 October 2025.

ECB Holds Rates Steady as Economists Urge Clearer Guidance on Future Cuts

The European Central Bank (ECB) opted to keep interest rates unchanged at its latest meeting, maintaining a cautious stance amid growing signs of economic weakness across the eurozone. The decision leaves borrowing costs at their current level, with the deposit rate remaining at 2 percent, as policymakers continue to weigh slow growth against easing inflation.

While the ECB described its approach as data-driven, some economists argue that the bank missed an opportunity to reassure investors and businesses about its readiness to act should conditions worsen. Marcel Fratzscher, President of the German Institute for Economic Research (DIW Berlin), said the central bank should have sent a clearer message that it stands ready to cut rates if necessary to support the economy.

“The ECB continues to act very cautiously,” Fratzscher noted, adding that multiple risks — from trade tensions and the ongoing war in Ukraine to political instability in parts of Europe — could weigh heavily on output and confidence. He warned that tighter financing conditions are beginning to affect businesses and households, suggesting that the current policy stance may be overly restrictive.

Economic data from across the euro area point to a weaker recovery than expected earlier in the year. Business investment remains subdued, and credit surveys show only limited lending appetite despite moderating inflation. Analysts say that while the ECB’s decision to hold rates steady reflects prudence, stronger forward guidance could have eased uncertainty in financial markets and improved access to financing.

For now, the ECB insists that future moves will depend on incoming data, keeping its options open for either prolonged stability or potential easing in 2026. But with growth forecasts being revised downward, pressure is likely to build on the central bank to act sooner rather than later if the slowdown deepens.

Source: DIW Berlin

High Court London Upholds Key Leasehold Reforms, Rejects Landlords’ Human Rights Challenge

The High Court in London has dismissed all six judicial review claims brought by major landlord and investment groups challenging core provisions of the Leasehold and Freehold Reform Act 2024 (LAFRA). The decision confirms the Government’s right to overhaul leasehold valuation rules and rejects arguments that the reforms breach property rights under the European Convention on Human Rights (ECHR).

The case — R (ARC Time Freehold Income Authorised Fund & Others) v Secretary of State for Housing, Communities and Local Government [2025] EWHC 2751 (Admin) — was heard by Lord Justice Holgate and Mr Justice Foxton. Their joint judgment, handed down on 24 October 2025, represents a major victory for the Government’s leasehold reform programme.

At issue were three controversial elements of LAFRA: the 0.1% ground-rent cap, the abolition of marriage and hope value, and the change requiring each party to bear its own non-litigation costs in enfranchisement and lease-extension cases.

Ground-rent cap upheld

Landlords argued that the 0.1% cap on ground rent used in enfranchisement valuations was arbitrary, retrospective and unfairly stripped them of contractual income. The Court disagreed, finding that Parliament acted within its “wide margin of appreciation” on social and economic policy. The judges said the figure had a reasonable evidential basis in the Law Commission’s work, CMA analysis, and the Government’s impact assessment.

Marriage and hope value removed

The claimants also attacked the abolition of marriage value — a long-standing valuation concept that gave freeholders 50% of the uplift when leases under 80 years were extended. The Court said the change was a legitimate policy choice designed to correct an inherent unfairness in the leasehold system, which forces leaseholders to pay again for an asset that naturally declines in term. Concentration of the impact in London did not make the measure disproportionate, the judges ruled.

Cost recovery reform justified

On costs, the Court upheld Parliament’s decision to end automatic recovery of landlords’ non-litigation expenses, noting that in normal market transactions each party bears its own professional fees. The reform was found to make the process simpler and fairer while retaining limited exceptions for small-value cases.

No breach of property rights

In a significant passage, the Court confirmed that Article 1 of Protocol 1 to the ECHR — which protects property rights — does not entitle landlords to “full market value” compensation, only to compensation “reasonably related to value.” The judges said the reforms strike a “fair balance” between public interest and private rights.

Next steps

Landlord groups have 21 days from 24 October to seek permission to appeal. The judgment leaves the Government’s leasehold reform agenda intact, though officials have yet to publish the promised 2025 consultation on remaining valuation components.

Legal commentators say the ruling cements LAFRA’s position as the most far-reaching shake-up of leasehold law in a generation — and signals the courts’ willingness to defer to Parliament on broad questions of housing fairness and market regulation.

Source: CMS

EU Rail Travel Reaches Record High in 2024, Led by Germany, France, and Italy

Passenger travel by rail across the European Union reached its highest level on record in 2024, with strong demand in nearly every member state. According to the latest EU data, rail operators carried the equivalent of 443 billion passenger-kilometres last year, marking a 5.8% increase from 2023 and surpassing pre-pandemic levels for the first time.

Germany remained the continent’s largest rail market, recording 2.9 billion passenger journeys, followed by France (1.32 billion) and Italy (843 million). These three countries accounted for nearly two-thirds of all rail trips within the EU. The recovery was particularly pronounced in Western Europe, where the expansion of high-speed and regional networks helped attract more travellers back to trains.

Central and Eastern Europe also saw notable growth. Hungary led the bloc with an exceptional 60% rise in passenger numbers, reflecting a rebound in domestic travel and improved services on key intercity lines. Latvia (+13.9%) and Ireland (+10%) also recorded double-digit increases. In contrast, Romania (-4.9%) and Bulgaria (-3.1%) reported declines due to ongoing infrastructure issues and limited service capacity.

When measured against population, Luxembourg emerged as the EU’s most frequent user of rail, averaging nearly 33 train journeys per person in 2024. Denmark and Germany followed closely, both exceeding 30 trips per capita. At the opposite end, Greece and Lithuania registered the lowest usage, with only around one to two train journeys per person during the year.

Analysts note that the upturn in passenger rail transport reflects broader efforts to improve connectivity, digital ticketing, and cross-border services under the EU’s Green Deal transport strategy. The growing preference for train travel is being driven by sustainability targets, higher fuel costs, and renewed investment in inter-city and regional rail links.

Freight transport by rail, however, showed a slight decline of 0.8%, as weak industrial output and logistics bottlenecks weighed on cargo movement.

Overall, 2024 reaffirmed rail’s role as one of the most resilient and sustainable transport modes in Europe — with more passengers on board than ever before and steady progress toward a cleaner, interconnected mobility system.

Rail passenger transport in the EU, 2024

(Main undertakings; million passengers and % change vs 2023)

Rank	Country	Passengers (million)	Change 2024 vs 2023 (%)	Passengers per capita
1	🇩🇪 Germany	2 904	+5.0	30.0
2	🇫🇷 France	1 320	+6.2	19.3
3	🇮🇹 Italy	843	+7.5	14.2
4	🇪🇸 Spain	708	+8.0	14.9
5	🇵🇱 Poland	392	+3.1	10.1
6	🇳🇱 Netherlands	364	+4.7	20.3
7	🇸🇪 Sweden	272	+5.5	25.7
8	🇦🇹 Austria	267	+4.3	29.4
9	🇨🇿 Czechia	258	+5.8	24.0
10	🇧🇪 Belgium	250	+3.6	21.2
11	🇭🇺 Hungary	219	+60.0	22.0
12	🇩🇰 Denmark	196	+6.1	31.0
13	🇫🇮 Finland	184	+5.9	26.5
14	🇷🇴 Romania	162	−4.9	3.6
15	🇬🇷 Greece	14	−2.5	1.5
16	🇱🇹 Lithuania	5	−3.0	1.5
17	🇱🇻 Latvia	18	+13.9	9.3
18	🇪🇪 Estonia	8	+7.0	6.0
19	🇧🇬 Bulgaria	25	−3.1	3.6
20	🇱🇺 Luxembourg	21	+5.3	32.8
21	🇮🇪 Ireland	55	+10.0	10.8
22	🇸🇮 Slovenia	24	+8.5	11.4
23	🇭🇷 Croatia	33	+5.1	8.2
24	🇸🇰 Slovakia	44	+4.8	8.0
25	🇵🇹 Portugal	106	+6.6	10.4

Source: Eurostat dataset rail_pa_typepas, update 21 Oct 2025; Eurostat news release “Rail passenger transport increased by 5.8 % in 2024” (31 Oct 2025).

Czech Coalition Plans Housing Reforms and New Approach to Building Law

The incoming Czech government, formed by ANO, SPD, and Motorists, has set out plans to overhaul the country’s building legislation and housing policy. According to the coalition’s draft programme, housing would be formally recognised as a matter of public interest, opening the way for faster approval of large residential developments and new financial support measures for young families.

The draft document, sent to the president for review at the end of October, outlines a broad reform agenda combining housing affordability with deregulation in the construction sector. The coalition intends to amend the Building Act, returning to key features of the 2021 version that centralised planning under a national authority. It also pledges to simplify the approval process by improving the digital building-permit system, which has faced technical difficulties since its launch. The new administration wants a modular, phased approach to digitisation and promises thorough testing before rollout.

A central pillar of the programme is the creation of preferential loans for young families purchasing their first homes, alongside partial state support for mortgage interest. Families with small children and workers in key professions would qualify for additional benefits. The coalition also proposes a bonus for newborn children and a new framework for tax depreciation on corporate and service housing built for employees.

The State Investment Support Fund is expected to take on a larger role in housing advice and coordination. Planned amendments to the housing support law would strengthen cooperation with municipalities and promote cooperative and affordable rental housing through state guarantees and targeted investment incentives. The private sector would be encouraged to participate in new housing and student-dormitory construction.

At the same time, the government plans to scale back what it calls non-functional or overly strict environmental and energy standards that have increased the cost of construction. The coalition also confirmed its opposition to the extension of the EU’s ETS2 emissions trading system, arguing that it could further raise housing costs.

If adopted, the proposals would mark a significant shift in Czech housing policy—combining state-backed financing and cooperative models with lighter regulation and centralised planning. The coalition is expected to publish its full programme and sign the official agreement in early November.

CTP Signs 34,450 sqm Lease with Global Logistics Company in Sulechów

CTP, Europe’s largest listed industrial and logistics property developer by gross lettable area, has signed a lease agreement with an international logistics service provider for 34,450 sqm at CTPark Sulechów in western Poland.

The tenant will occupy 33,376 sqm of warehouse space and 1,074 sqm of offices, representing nearly half of the park’s developed area. The facility is expected to be operational later this year.

CTPark Sulechów is located less than 70 km from the German border, offering direct access to major transport routes serving both the Polish and German markets. Alongside the new tenant, Domator24, a Polish producer of gaming chairs and metal furniture, also operates within the park.

CTP has completed 74,995 sqm of space at Sulechów to date and plans to add a second warehouse of 12,837 sqm. The park is CTP’s second investment in Poland’s Lubuskie Province, complementing CTPark Iłowa, where two buildings with a combined area of 99,148 sqm are already in operation along the A18 motorway.

According to Piotr Flugel, Managing Director of CTP Poland, the development reflects the continued expansion of contract logistics and e-commerce operations in the region:

“Warehouses today are a key element of modern logistics chains, supporting efficient goods flow and scalable processes. Global companies are increasingly choosing Poland for its quality infrastructure and strategic location, which enables distribution across Western and Central Europe.”

CTP’s growing portfolio in western Poland aligns with broader trends in the Central and Eastern European logistics market, where nearshoring, manufacturing growth, and e-commerce continue to drive demand for modern, flexible warehouse space.

Central Europe Intensifies Crackdown on Unfair Trading Practices in the Food Supply Chain

Regulators across Central Europe are stepping up oversight of large retailers amid growing concerns about the balance of power between supermarket chains and their suppliers. The latest example came from Romania, where the Competition Council (RCC) launched unannounced inspections at six major retail groups suspected of unfair practices in the dairy sector.

The dawn raids targeted retailers active across supermarket, hypermarket and cash-and-carry formats. According to the RCC, the inspections form part of an ongoing inquiry into compliance with Law No. 81/2022, which transposes EU Directive 2019/633 on unfair trading practices in the agricultural and food supply chain. The legislation aims to prevent abuses of bargaining power by larger buyers and to protect smaller producers from exploitative contract terms.

The RCC said evidence gathered during its market study on milk and dairy products had revealed potential irregularities, including delayed payments for perishable goods, excessive cumulative discounts, and delisting threats linked to shelf-access fees. The authority underlined that the inspections do not imply guilt but are intended to verify whether contractual relationships between retailers and suppliers comply with the law. If infringements are confirmed, fines could reach RON 600,000 or 1 % of annual turnover, and companies may be ordered to cease the conduct.

Although the Competition Council did not name the firms involved, Romanian media identified the chains as Metro, Selgros, Auchan, Carrefour, Kaufland, and Mega Image. The case forms part of a broader sector-wide review of the dairy and wider agri-food market and reflects Romania’s commitment to aligning national enforcement with EU policy objectives.

Regional trend toward stricter enforcement

Romania’s action is not isolated. Other Central European authorities have also strengthened scrutiny of buyer-supplier relationships in recent years.

In Poland, the Competition and Consumer Protection Office (UOKiK) has pursued several investigations into retailer conduct and continues to highlight agri-food supply chains as a priority area. Enforcement has focused on payment terms, rebate structures, and supplier contracts.

The Czech Competition Authority (ÚOHS) applies its national “significant market power” rules to the food sector and has issued fines where larger chains used contractual leverage against smaller producers.

In Austria, the Federal Competition Authority (AFCA) completed a sector inquiry into the food industry, identifying systemic issues such as payment-term pressures and limited transparency in commercial negotiations. The findings have led to plans for enhanced monitoring throughout 2025.

Other countries, including Slovakia, Hungary, Slovenia, Croatia, and Bulgaria, have reinforced their frameworks through national laws implementing the same EU directive. Croatia’s law extends its reach to contracts governed by foreign law when domestic effects are felt, while Slovenia combines competition enforcement with an ombudsman dedicated to supplier complaints.

A common European direction

Across the region, authorities are aligning around the same goal: ensuring fair dealing in the food chain and curbing practices that disadvantage primary producers. Inflation, supply-chain cost pressures, and market concentration have sharpened the focus on retailer behaviour.

The Romanian raids mark one of the most visible enforcement steps so far and underline a coordinated Central European shift toward active policing of unfair trading practices in food retail. More investigations—particularly in sensitive sectors such as dairy, meat, and fresh produce—are expected as national regulators follow through on EU-wide commitments to protect smaller suppliers and restore fair competition in the agricultural supply chain.

Poland’s Labour Market Stable in Q2 2025 as Wage Growth Slows Slightly

Poland’s labour market continued to display resilience in the second quarter of 2025, with steady employment and only a marginal shift in activity levels. However, the latest data from the national statistics office show that while wages remain considerably higher than a year ago, the pace of growth is beginning to ease.

The share of people either working or actively looking for work in Q2 2025 edged up slightly compared with the first quarter, maintaining one of the highest participation rates in the region. Employment levels remain stable, underlining the strength of Poland’s labour market despite weaker demand in some manufacturing and export-oriented sectors.

Average monthly earnings in the enterprise sector stood at just over PLN 8,900, a modest dip from the previous quarter but nearly 11% higher than the same period in 2024. The figures suggest that while wage growth has cooled since the rapid increases seen last year, real incomes continue to rise as inflation pressures ease.

The small quarterly decline in nominal pay points to a gradual normalisation of wage dynamics after two years of rapid increases driven by labour shortages and price volatility. Analysts note that the market is moving toward greater balance, with slower wage growth potentially helping employers manage costs without significant job losses.

For the property and business sectors, the data present a mixed picture. Strong year-on-year income growth supports household purchasing power, benefiting residential and retail segments, while the levelling off of wage momentum may reduce upward pressure on operating expenses for logistics, industrial, and service employers.

Overall, Poland’s workforce remains one of the most active in Central Europe, with stable employment and rising real earnings supporting domestic demand. The coming quarters will reveal whether this moderation in wage growth marks the beginning of a more sustainable phase for the Polish economy or a sign of broader cooling in the labour market.

Moldova Sees Fewer Building Permits Despite Growth in Construction Output

The number of new building permits issued in Moldova fell in the first nine months of 2025, even as the total value of construction works continued to rise. Data from the National Bureau of Statistics (NBS) show that authorities granted 2,187 building permits between January and September, representing a 7.8% decline compared with the same period a year earlier.

The drop was most pronounced in the non-residential sector, where permits fell by over 22% year-on-year, suggesting weaker investment appetite among commercial and institutional developers. By contrast, residential permits showed only a marginal decrease of 1.4%, indicating that demand for housing remains comparatively stable.

The decline in new permits contrasts with the strong growth recorded in construction output earlier this year. In the first half of 2025, the total value of construction works carried out in the country rose by more than 35% compared with the same period in 2024, according to the NBS. Economists attribute this divergence to the completion of ongoing projects and a rise in renovation and repair activity, rather than new developments breaking ground.

Despite the slowdown in permit issuance, the construction industry continues to play a crucial role in Moldova’s modest economic expansion, contributing to the 1.1% GDP growth recorded in the second quarter of 2025. The sector remains an important source of employment and public investment, particularly in infrastructure and residential renewal.

However, industry observers warn that if the fall in new permits persists, it could lead to a slowdown in building activity in 2026 as the current project pipeline thins. Rising financing costs and cautious investor sentiment, particularly in commercial real estate, are also cited as potential headwinds for new development.

While housing demand remains relatively resilient, developers face ongoing challenges linked to construction material costs, workforce shortages, and slower approvals. For now, Moldova’s construction sector continues to expand on the strength of projects already underway—but the latest figures signal that fewer new ones may be entering the pipeline.

« Previous 1 … 154 155 156 157 158 … 497 Next »

Latest news

All posts by fletcher@cijeurope.com.