1. Government €52 Million for Finnish & Estonian renewable energy projects
The European Commission has announced €52 million to support nine renewable energy projects in Finland and Estonia. This funding, provided through the EU Renewable Energy Financing Mechanism, aims to enhance the renewable energy capacity of the EU while fostering cross-border cooperation among member states.
Project Breakdown
The allocated funds will be distributed among seven solar photovoltaic projects in Finland and two onshore wind projects in Estonia. Together, these projects are expected to add a total capacity of 445.65 MW of renewable energy installations, with commissioning anticipated between 2027 and 2028.
Finland’s Solar Projects:
- Laivakangas Solar Park: €4.2 million to transform a 78-hectare former gravel extraction site in Tornio into a solar power plant.
- Lamminneva Solar Park: €3.5 million to repurpose a former peat extraction site in Lappajärvi into a solar energy farm.
- Isoneva Solar Park: €5.6 million to convert a former peat extraction site in Suonenjoki into a solar energy farm.
- Kouvola Lakiasuo PV Plant: €7.7 million to build an industrial-scale solar power plant in Kouvola.
- JoSoleilTwo: €5.7 million for a ground-mounted solar PV project in Joroinen.
- Lålby Solar Power Park: €5.9 million to repurpose a waste deposit area into a solar power park.
- Pori Peittoo Solar PV-plant: €1.1 million to build a solar PV-plant on a specific material handling area.
Estonia’s Wind Projects:
- Püssi Project: €9.8 million to develop a hybrid renewable energy park integrating wind and solar energy.
- Maima Wind Park: €8.2 million to develop an onshore wind farm in the villages of Tarva and Tõrdu.
Background and Impact
The EU Renewable Energy Financing Mechanism (RENEWFM) was established by the European Commission in 2020 to support renewable energy projects and encourage joint action among member states. In this funding round, Luxembourg provided the financial contributions, while Finland and Estonia offered suitable locations for the projects.
This initiative is part of the EU’s broader strategy to meet its renewable energy targets, optimize resource allocation, and leverage geographical advantages. The successful implementation of these projects will not only contribute to the EU’s renewable energy capacity but also promote sustainable development and energy security in the region.
2. Update on UK-Turkey trade talks
The UK and Turkey have recently agreed to relaunch talks aimed at upgrading their existing free trade agreement. This decision was announced following a meeting in London on May 7, 2025, between Secretary of State for Business and Trade Jonathan Reynolds and Minister of State for Trade Policy and Economic Security Douglas Alexander, along with their Turkish counterparts, Minister of Trade Ömer Bolat and Deputy Minister of Trade Mustafa Tuzcu.
Strengthening Economic Ties
The UK and Turkey share a robust economic relationship, with trade between the two nations totaling approximately £28 billion in 2024. Turkey ranks as the UK’s 16th largest trading partner, with UK companies exporting £9.3 billion worth of goods and services to Turkey’s growing market of 86 million people. The ministers emphasized the importance of this bilateral relationship and committed to pursuing closer cooperation and increased trade and investment.
Upcoming Negotiations
The first round of negotiations for the upgraded Free Trade Agreement (FTA) is scheduled to take place by the end of July 2025. This upgraded agreement aims to align UK-Turkey Technical Barriers to Trade provisions with those found in the UK-EU Trade and Cooperation Agreement, thereby reducing costs and facilitating easier trade for businesses.
Economic Impact
The UK is the second-largest services exporter globally, yet only 34% of its exports to Turkey in 2024 were services. UK exports to Turkey directly supported around 57,100 jobs across the UK in 2020, with more than 68% of these jobs in the services sector. Additionally, over 7,800 UK companies currently export goods to Turkey.
Future Prospects
Turkey’s economy, currently the 17th largest in the world, is projected to become the 12th largest globally and the fourth largest in Europe by 2050. Recent investments, such as the £1 billion redevelopment of Shotton Mill in Deeside by the Turkish company Eren Holding Group, highlight the growing economic ties between the two nations. This project is expected to safeguard 147 jobs and create an additional 220 jobs, supported by nearly £13 million from the Welsh Government and £136 million from UK Export Finance.
Conclusion
The renewed commitment to enhancing the UK-Turkey trade relationship through an upgraded FTA signifies a promising step towards stronger economic cooperation. As negotiations progress, both nations look forward to fostering a more dynamic and mutually beneficial trade environment.
3. Singapore, EU sign digital trade agreement
hu chen via unsplash
In a significant move to bolster digital trade, the European Union (EU) and Singapore have signed a landmark Digital Trade Agreement (DTA). This agreement, finalized on May 7, 2025, marks a pivotal step in deepening bilateral trade relations and enhancing cooperation in the digital domain.
Key Highlights of the Agreement
The EU-Singapore DTA is the first of its kind for the EU, reflecting its ambition to set global standards for digital trade rules and cross-border data flows. The agreement aims to:
- Enhance Legal Certainty: By providing binding rules, the DTA ensures predictability and legal certainty for businesses engaged in digital trade.
- Promote Consumer Trust: Strong regulations on data protection and spam will help build consumer trust in digital transactions.
- Remove Barriers: The agreement seeks to eliminate unjustified barriers to digital trade, fostering a more open and competitive digital economy.
- Unlock Economic Opportunities: With over 12,000 EU businesses operating in Singapore, the DTA is expected to unlock new economic opportunities and boost trade in digitally delivered services.
Economic Impact
In 2023, bilateral trade in goods and services between the EU and Singapore reached €132.7 billion, with EU Foreign Direct Investment in Singapore standing at €263 billion. The DTA builds on this strong foundation, aiming to further enhance trade relations and economic growth.
Statements from Leaders
EU Commissioner Maroš Šefčovič and Singapore’s Minister-in-charge of Trade Relations, Grace Fu, emphasized the importance of the agreement in their joint statement. They highlighted the commitment of both sides to uphold a rules-based trading order and foster innovation in the digital economy.
Future Prospects
The EU-Singapore DTA is expected to serve as a model for future digital trade agreements, setting high standards for digital trade rules globally. As digital trade continues to grow, this agreement will play a crucial role in shaping the future of international trade relations.
4. Malaysian trade visit to Africa
In a significant move to enhance economic ties with Africa, Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, recently led a high-level delegation to Pacific Inter-Link (PIL) Sdn Bhd’s regional hub, Golden Africa Kenya Limited (GAKL). This visit underscores Malaysia’s commitment to deepening its economic relationships with African nations and capitalizing on the continent’s emerging market potential.
Strengthening Economic Ties
Established in 2012, GAKL has become a crucial operational base for PIL’s expansion in Africa, focusing on palm oil and essential consumer products. The facility is a testament to Malaysia’s long-term investment strategy and its role in supporting industrial development and regional trade. The delegation’s presence highlighted the importance of public-private partnerships in fostering sustainable economic growth and cooperation between Malaysia and African markets.
Bilateral Trade Growth
Malaysia-Africa bilateral trade has been gaining momentum, with nearly RM24 billion in total trade value recorded in 2023. Malaysia’s key exports, including palm oil, petroleum products, and electronics, are increasingly sought after across African markets. In return, Malaysia imports key commodities such as minerals and agricultural goods from the continent.
Strategic Partnerships and Investments
The visit provided an opportunity for the Malaysian delegation to witness firsthand the socio-economic impact of Malaysian investments in Africa, including job creation, knowledge transfer, and value-added manufacturing. The delegation included His Excellency Ruzaimi Mohamad, Malaysian High Commissioner to Kenya, and other senior government representatives.
Future Prospects
As Malaysia continues to engage with African markets, PIL stands at the forefront of this journey, bridging continents through commerce, sustainability, and shared prosperity. The strategic visit reflects Malaysia’s broader strategy to elevate its trade footprint in Africa and capitalize on the continent’s vast opportunities.
5. UK Export Finance announces £10bn defence lending
In a move to bolster the UK’s defence industry, UK Export Finance (UKEF) has announced an increase in its lending capacity from £8 billion to £10 billion. This strategic initiative aims to enhance the competitiveness of UK defence exporters and support economic growth across the country.
Strengthening the Defence Sector
The increase in UKEF’s lending capacity is part of a broader strategy to support the UK’s defence industry, which is vital for national security and economic stability. The additional £2 billion will be used to provide loans to foreign governments for purchasing UK defence goods and services, including missiles, aircraft, and armoured vehicles.
Chancellor Rachel Reeves highlighted the importance of this initiative during her recent visit to Scotland, stating that it would unlock further opportunities for UK defence exports and bolster supply chains. “This uplift will drive tangible increases in financial support for UK defence exporters, allowing them to grow their business through sales to our allies around the world,” Reeves said.
Economic Impact
In the fiscal year 2023-24, UKEF supported 650 exporters, leading to the preservation of approximately 41,000 jobs across the UK. The increased lending capacity is expected to further stimulate job creation and economic development, particularly in regions with a strong defence manufacturing presence.
Business Secretary Jonathan Reynolds emphasized the dual benefits of the initiative, noting that it would not only strengthen the defence sector but also contribute to national security. “A robust defence industry is essential for our national security and economic resilience,” Reynolds said.
Supporting Global Security
The enhanced lending capabilities come at a time of increasing global instability, with rising threats from malign actors and rapid technological changes. The UK government aims to ensure that its defence industry can respond effectively to these challenges while supporting international allies.
Recent UKEF support has included an £8.8 billion guarantee for exports of air defence systems to Poland and support for the export of Typhoon aircraft to Qatar. These efforts demonstrate the UK’s commitment to maintaining a strong defence industrial base capable of contributing to global security.
Conclusion
The increase in UKEF’s lending capacity to £10 billion marks a significant step in supporting the UK’s defence industry. By providing the necessary financial backing, the UK government is ensuring that domestic defence companies can compete on the global stage, drive economic growth, and contribute to national and international security.
