14. The Policy Watch

The Policy Watch is a weekly update which aims to provide concise insights into the current policy landscape. Tailored for our members and individuals interested in international affairs, this update offers a brief yet comprehensive summary of key developments affecting policy decisions and political trends in the UK, Sweden, and the EU.

BCC PROPOSES STRATEGIES FOR GLOBAL TRADE BOOST

The British Chambers of Commerce (BCC) has launched its Global Britain Challenge report, featuring 28 recommendations aimed at enhancing exports and attracting foreign investment to the U.K., including the creation of a ‘Team U.K.’ to promote an updated ‘Brand Britain’.

The report is the fourth in a series under the ‘Future of Economy’ project, emphasising collaborative efforts across sectors to leverage the nation’s strengths and navigate post-Brexit challenges for sustained economic growth. Martha Lane Fox, President of the British Chambers of Commerce, stressed the importance of bold political decisions to optimise Brexit-related opportunities and bolster the U.K.’s global trading position.

BRITAIN ACCUSES CHINA OF CYBERATTACKS, IMPOSES SANCTIONS

The British Government has accused China of orchestrating cyberattacks on U.K. democratic institutions, as confirmed by Deputy Prime Minister Oliver Dowden in a statement to the House of Commons. Dowden highlighted that “Chinese state-affiliated actors” were responsible for malicious attacks targeting the U.K.’s electoral watchdog and lawmakers. In response, Britain has imposed sanctions on two individuals and summoned the Chinese ambassador, prompting an angry rebuttal from Beijing, which denounced the claims as “slander.”

RIKSBANK LEAVE POLICY RATE UNCHANGED, HINTING AT POTENTIAL CUTS IN COMING MONTHS

The Riksbank maintains the policy interest rate at 4% but hints at a potential cut in May or June, citing declining inflation trends. Riksbank Governor Erik Thedéen underscores the need for favourable inflation prospects before implementing any reduction amid the bank’s forecast, indicating a possibility of three rate cuts this year.

BULGARIA AND ROMANIA OFFICIALLY JOIN SCHENGEN

As of March 31st, Bulgaria and Romania are members of the Schengen zone, following a decision by the Council in December 2023. This means that Schengen rules will apply in both countries, and internal air and sea border controls will be lifted, making travel easier within the Schengen area. The European Commission has welcomed this move, highlighting its significance in expanding the common area without internal border checks and strengthening cooperation on border and migration issues.