AGP Executive Report

G7 Watch: France is gearing up for the Évian summit with a packed agenda on geopolitical crises, economic cooperation and AI, while China joins a rare virtual G7 call with Macron to defend free trade and push back on “imbalances.” Trade & Markets: Ahead of the summit, Canada’s PM Mark Carney is expected to keep a lower profile on Trump, as USMCA renewal talks loom and over 70% of Canadian exports go to the US. Energy Transition: France has released details for a major offshore wind tender: 10 GW across 11 projects (5 GW fixed-bottom, 5 GW floating), aiming to scale capacity sharply toward 2035. Pay Equity Law: France circulated an amended draft to implement the EU pay transparency directive after missing the June 7 deadline, with entry into force expected progressively from late 2026 to Jan 1, 2028. Crypto & Finance: Blockrise CEO says “anarchistic neobanks” are the next step for Bitcoin banking, as crypto-native platforms reshape how regulated finance connects to digital assets. Security & Influence: France’s disinformation watchdog Viginum links Israeli firm BlackCore to alleged election meddling beyond France, including New York and Scotland. Aviation & Industry: Airbus says the A320 family has crossed 20,000 cumulative orders, underlining continued narrowbody demand.

EU Foreign Policy Shake-Up: France and Germany are weighing a major overhaul of the EU’s diplomatic service (EEAS), including possible cuts to the powers of High Representative Kaja Kallas, as capitals argue the current setup is “dysfunctional” amid Ukraine, Middle East and China pressures. Defence Industrial Push: UAE’s EDGE launched EDGE Europe from Paris (Chaillot) with a Bordeaux engineering hub, aiming to build European defence capability faster through a partner-driven model. Aerospace After FCAS: After France and Germany scrapped the FCAS fighter-jet project, eight companies are lining up under “Team Gen 6” to develop a new next-gen jet. Press Freedom Clash: Israel denied entry and deported French journalist Alice Froussard, prompting French diplomatic regret and RFI’s protest over press freedom. Business & Tech: NAWAH opened its first North American VACNT composites materials plant in Ohio, with production ramping to 400,000 sq m/year from summer 2026. Energy/Industry: Ukraine and France discussed accelerating radar and Aster-30 missile cooperation to strengthen Ukrainian air defence. Markets & Policy: G7 talks in France via video included China, focused on global economic imbalances. Health/Finance: BeOne Medicines presented long-term Phase 3 CLL/SLL results for BRUKINSA in patients aged 80+ at EHA 2026.

Work & Health: Malakoff Humanis says absenteeism in France’s private sector hit 4.3% in 2025, up 25.5% vs 2019, with long sick leave (60+ days) rising and burnout/depression driving the longest cases. Nature & Land Use: France added 157,000 hectares of protected forest via seven new biological reserves and two expanded ones, mostly in French Guiana, as biodiversity protection faces pressure elsewhere. Carbon Pricing: The EU agreed tighter price controls for its new ETS2 carbon market: if permit prices exceed €45/ton, 40 million permits can be released from a stability reserve (twice a year), with revenues earmarked for bills, EVs and home renovations. Finance Tech: Abbove will power ING Belgium’s new digital wealth planning experience, tailored to ING’s advisory model for personal and private banking clients. Energy Security (G7): Japan plans to push “Look East” style energy-security principles at the G7 in France, focusing on free trade, oil reserves and Strait of Hormuz navigation. Defense Industrial Shift: Germany is moving to build a sixth-generation fighter after FCAS collapse, with Airbus leading a new alliance. Consumer Watchdog: A French consumer body flags risks in car leasing deals (LLD/LOA), including deposit and roadworthiness-test loopholes. Middle East Policy: Israel settlement expansion remains in focus as new funding for 61 settlements is reportedly set for approval, amid coordinated Western sanctions targeting networks tied to West Bank violence.

Carbon Markets Under Scrutiny: A major Senegal mangrove restoration project sold “ghost carbon” credits, with scientists warning much of the claimed CO₂ removal may never have been stored, reigniting doubts about voluntary carbon-market science and credibility. Defense Industrial Shift: After the FCAS fighter-jet collapse, France says it will keep next-gen fighter work through 2040, while Germany pushes a “Team Gen 6” alliance to preserve sixth-generation know-how. Media & Streaming Deal: Disney+ in France will carry live sports from La Chaîne L’Équipe, including World Cup coverage and major events like Le Mans and biathlon. Capital Markets: MK2 opens its capital to the public for the first time via a crowdfunding drive to modernize its Paris cinema complex. Startup Funding: French/Ukraine air-defense drone maker Alta Ares raises €50m to scale AI-guided interceptor production. Telecom/Investing: A Bouygues-led consortium signs to buy SFR from Altice France in a deal worth about €23.4bn. Business & Society: Dutch plans would restrict child influencers under 16 from monetised social media content, treating it like child labour.

Healthcare Strike: Staff at Louis-Constant Fleming Hospital in Marigot began a strike June 5 over poor working conditions, material shortages and unstable management, including repeated director changes. EV Charging Rollout: France targets 30,000 EV chargers on autoroutes and RN roads by 2035, with most at service areas and 8,000 reserved for lorries, requiring coordination across ministries. Sanctions & Diplomacy: France banned Israeli Finance Minister Bezalel Smotrich from entering the country and joined coordinated sanctions targeting people and groups linked to West Bank settler violence. World Cup Business Buzz: Messi-themed plush “goats” are booming in China ahead of the tournament, showing how fan merchandise is driving demand even as consumption stays sluggish. Tech & Robotics Glitz: Cannes spotlighted AGIBOT X2, a humanoid robot mixing fashion, sports and tech demos as brands chase new AI showpieces. Logistics Outlook: A European logistics event framed warehouses as critical infrastructure for ecommerce and essential goods delivery, with investors focused on long-term fundamentals. Energy Security: Macron is convening a global videoconference with China ahead of the G7, aiming to broaden economic dialogue beyond Western circles.

Cybersecurity: France’s state messaging app Tchap was breached; ANSSI says an account was identified and blocked, but investigators are still checking what was taken, and users were reminded that public chatrooms aren’t encrypted. Semiconductors & Industry: France is backing “Tessalia,” a €250m advanced chip packaging plant in Le Barp led by Foxconn with Thales and Radiall, aiming to strengthen Europe’s semiconductor resilience. Sanctions & Foreign Policy: France joined a coordinated push by the UK, Canada, Australia, Norway and New Zealand with new sanctions targeting West Bank settler violence; France also banned Israeli Finance Minister Bezalel Smotrich from entering, alongside entry bans for other figures. Public Policy & Daily Life: A France rail digest flags the end of cardboard tickets on Île-de-France trains, plus upcoming tax correction options and travel disruption risks. Business & Mobility: Orange’s planned SFR acquisition deal (€24bn) keeps reshaping France’s telecom market. Sports & Economy: With World Cup hype rising, France’s FCAS fighter-jet project collapse also underlines how defense industrial disputes can hit broader European cooperation.

Defence Shake-Up: France and Germany have agreed to end the Future Combat Air System (FCAS) joint fighter jet after Airbus and Dassault failed to align on leadership and work-sharing, though they plan to keep parts of the programme as a broader “combat cloud” network. G7 & Trade Tensions: South Korea’s President Lee Jae-myung is in Europe for talks ahead of the G7 in Évian, with economic security and peace on the Korean Peninsula on the agenda, while EU leaders prepare supply-chain diversification measures that could further inflame trade tensions with China. Corporate & Logistics: Geodis opened its first port hub in Le Havre, bundling sea, air, rail and contract logistics to streamline import-export flows. Consumer & Retail: A French online returns dispute highlights the need to check return costs and addresses before ordering. Tech & Business: Nintendo faces a major French fine over faulty Switch Joy-Con controllers, while Capcom confirmed Resident Evil Veronica is due in 2027. Healthcare Regulation: A French medical ban case shows how weak cross-border sharing can allow a struck-off doctor to keep practising abroad.

Telecom Deal: Bouygues-led consortium (Bouygues Telecom, Orange and iliad) has finally agreed to buy Altice France’s SFR for €20.35bn, reshaping the French mobile market from four operators to three, with closing targeted for H2 2027 pending regulators. Consumer Protection: France’s DGCCRF fined Nintendo €35m over Switch Joy-Con drift, accusing the firm of misleading consumers by staying silent before offering free repairs. Sports & Business: FIFA and Belgium’s FA have settled Lassana Diarra’s €65m transfer dispute, after a CJEU ruling forced FIFA to amend transfer rules. Port Enforcement: In Le Havre, nearly 38,000 counterfeit trainers seized in 2011 were finally destroyed after a 15-year court fight. Defense & Industry: France and Germany are scrapping their joint Future Combat Air System fighter jet plan after company disagreements, while France also signals higher UAV spending tied to rearmament. Energy & Food Security: The G7 is assessing fertilizer supply risk after Hormuz-related disruptions, with nitrogen prices up sharply in France. Aviation Connectivity: Wizz Air will equip its fleet with Starlink satellite internet from 2027. Regulation Watch: Ofcom warns social platforms to prepare for World Cup spikes in online abuse.

Telecom Deal: Orange, Bouygues Telecom and iliad signed an MoU to buy SFR from Altice France, a major consolidation move aimed at boosting investment in France’s digital networks. AI & Finance: Amundi and other French financial groups are reshuffling sustainability leadership, while hyperscalers keep tapping international bond markets to fund massive AI infrastructure build-outs. Geopolitics & Defence: France, the UK and Germany pushed for an “urgent need” to scale up defensive weapons and deep-strike capabilities after Russia’s Oreshnik missile attacks, with G7 coordination in the spotlight. Sanctions Pressure: France is working with European partners on coordinated national sanctions against “violent” and “extremist” West Bank settler groups after EU unanimity stalled. Hospitality VAT Politics: UK hospitality leaders backed Andy Burnham’s push to cut VAT on pubs and restaurants—an idea that keeps resurfacing across Europe as businesses plead for relief. Tech Regulation: The EU moved to curb US cloud dominance for sensitive government work, adding new sovereignty risk checks that hit Amazon, Microsoft and Google Cloud. Business & Sport: FIFA World Cup fever is already driving bookings and retail demand, while French players’ image-rights tensions with Betclic add noise to the build-up.

Telecom Deal: Bouygues Telecom, Free and Orange agreed a €20.4bn joint bid for Altice’s SFR, aiming to split assets and cut the market from four to three operators—regulators now face the big question of whether consolidation will hurt competition or boost fibre/5G investment. Public Finance & Pensions: An Ifop poll finds nearly half of French people think pension cuts are unavoidable to reduce public debt, with growing debate over retirees’ living standards as budget pressure mounts. Middle East Sanctions: France says more sanctions on Israeli settlers could follow in the coming days as EU consensus stalls; Ireland also imposed travel bans on Ben-Gvir and Smotrich, while the UK readies measures to deter involvement in a proposed West Bank settlement plan. Global Economy Watch: The Middle East conflict is nearing 100 days, and OECD-linked forecasts warn weaker growth, higher inflation and supply-chain damage are spreading beyond the region. Crypto Tax Move: Greece is drafting a 15% flat tax on crypto capital gains with a €500 exemption, positioning itself as a clearer, more investor-friendly hub. Sports Business: Mbappé and Cherki are reportedly upset with the FFF over image-rights use in a Betclic betting ad, raising another headache for football’s commercial partnerships.

Telecom Deal Watch: Bouygues Telecom, Orange and Free-iliad have signed an MoU to buy Altice France’s SFR in a €20.35bn deal (incl. debt), with a breakup that would cut France’s mobile operators from four to three—now headed for regulatory scrutiny and a likely 2027 close. Geopolitics & Sanctions: France is coordinating with allies on national sanctions (asset freezes and travel bans) against individuals linked to West Bank violence, after EU unanimity stalled. Energy Security: Azerbaijan’s SOCAR is positioning itself as a gas “buffer” around Israel, expanding stakes and LNG flows to keep supply steady when Israeli exports pause. AI at Work: A BCG study finds AI use is surging among office workers, but many firms struggle to turn saved time into measurable productivity gains. Crypto Policy Debate: A new Europe-wide petition calls for banning bitcoin use and possession over energy and climate concerns. Security Threats: Reports highlight growing hostile-state recruitment of teenagers for spying and sabotage across Europe. Africa Investment Push: Macron unveiled a €23bn Africa partnership plan spanning energy, agriculture, digital and industry.

Energy & Geopolitics: Russian LNG imports into Europe are still rising, with exports up 11.5% year-on-year in the first five months of 2026 and deliveries to Europe up 16.7%, even as the EU prepares tighter phase-out rules by 2027—France, Belgium and Spain remain among the biggest buyers. Consumer & Industry Investment: Ferrero confirms €60m in upgrades in France, including work at its Villers-Écalles site and a €30m push for Nutella Cookies capacity in Nieppe (Hauts-de-France), supporting thousands of jobs. Real Estate: France’s DPE energy ratings are increasingly shaping property decisions, with buyers factoring in energy costs as rental rules tighten for the worst-rated homes. Corporate Finance: Ecobank resumes dividends for the first time since 2022, approving a $40m payout after record 2025 profits and improved efficiency. Tech & Finance: SpaceX’s planned Nasdaq IPO targets a $1.77tn valuation, with Morgan Stanley projecting $3.4tn revenue by 2040 and a major Google cloud deal ahead of listing. Policy & Compliance: Schengen countries including Germany, France and others respond to claims of bot-driven visa appointment black markets, with Germany pointing to a waiting-list system. Business & Society: A French association has revived a 17km heritage railway line in Charente as a tourist attraction, betting on local tourism demand.

AI Infrastructure Race: France’s €50bn “AI Campus” plan in Fouju near Paris is dividing locals—promised jobs and tech growth versus fears over environmental impact and village disruption. Corporate & Finance: Ipsos appoints Marion Beyret as Chief Communications Officer, bringing Stellantis and Air France-KLM experience to sharpen global messaging. Mobility & Energy: France’s plugin EV share jumps to 33.0% in Q1 2026 (BEVs 28.1%), with Tesla Model Y leading registrations. Logistics & Trade: GEODIS opens its first integrated port hub in Le Havre to bundle freight, distribution, customs and road logistics under one roof. Defense & Industry: France successfully test-fires MBDA’s Mica NG from a Rafale at supersonic speed, aiming to validate the upgraded infrared seeker. Public Sector & Security: France orders two more DHC-515 firefighting aircraft to expand aerial wildfire response. Regulation Watch: EU Market Abuse Regulation changes take effect June 5, easing some disclosure burdens but adding UK-vs-EU complexity for dual-listed firms.

France-Ukraine Diplomacy: Macron, Germany’s Merz and UK PM Starmer will meet Zelenskyy in London to coordinate pressure on Russia and plan next steps for the “Coalition of the Willing,” with a follow-up in Paris on 13-14 July. EU Politics & Security: The EU-Western Balkans summit in Montenegro puts enlargement and security front and centre, with heavy summit policing after a reported disruption plot. Middle East Sanctions: Ireland bans Israeli ministers Ben-Gvir and Smotrich from entering the country, citing rhetoric and actions toward Palestinians. Trade & Supply Chains: USMCA renewal talks are set to miss a July 1 deadline, raising uncertainty for auto and other industries; separately, air cargo spot rates rose in May but are expected to ease as capacity recovers. Competition Law: European publishers are suing Google for adtech monopoly abuse, seeking £552m+ in damages after the EU’s €2.95bn fine. Crypto Tax Move: Greece is preparing a 15% capital gains tax on cryptocurrencies, with the first €500 of gains tax-free. French Business & Jobs: France’s new car prices fell in 2025 for the first time in five years, though analysts warn 2026 could reverse the trend. Rail Disruption: SNCF unions call a national strike for June 10, with potential disruption across major rail services. Defense Industry: Eurosatory 2026 is set to spotlight missiles and drones as France ramps up spending, while Airbus trialed a connected wildfire response system in southern France.

Climate & Finance: France’s climate-funding squeeze is back in the spotlight after a record May heatwave, with scientists warning the extreme temperatures carry clear climate-change “fingerprints” and infrastructure still isn’t ready. Mobility & Consumer Policy: Electric car demand is accelerating in France: registrations jumped 55% in the first five months of 2026, with EVs now 27.8% of new passenger car sales and grants up to €5,700 for eligible lower-income buyers. Healthcare & AI Sovereignty: Orange Business is powering a generative AI platform for Rouen University Hospital, aiming to speed up grant and procurement workflows while keeping tools under tighter sovereignty controls. Corporate & Governance: France has charged HSBC’s Swiss unit in the Riad Salameh case, seeking an €80m deposit as prosecutors pursue money-laundering and conspiracy allegations. Energy & Geopolitics: France released the captain of the “shadow fleet” tanker Tagor after about 24 hours of detention, as the investigation into false-flag claims and ownership continues. Trade & Industry: The EU is hinting at a new anti-China trade defence tool as traditional measures hit their limits, raising the stakes for Brussels-Beijing tensions. Business & Tech: MWM and Google Cloud launched an “AI Mobile Squad” using Gemini Enterprise to help creators and SMBs generate production-ready mobile apps fast.

Sanctions Crackdown: France detained the Russian captain of the tanker Tagor in international waters, alleging sanctions-busting shipments linked to the “shadow fleet,” as Europe steps up enforcement at sea. Media Freedom: A Paris mission by ARTICLE 19 Europe and partners with RSF will assess press freedom ahead of the presidential election, citing a sharp rise in attacks on journalists since 2023. Regulation & Food Safety: French MPs approved tougher cadmium limits in fertilisers despite government warnings that the pace could hurt farm competitiveness. Quantum Race: Grenoble startup Quobly raised €115m to build cheaper silicon-based quantum computers, backed by Bpifrance and STMicroelectronics. Digital Infrastructure: The ViaTunisia subsea cable segment between Marseille and Bizerte reached Ready for Service, boosting resilient connectivity between Europe and North Africa. Retail Watch: Eurozone retail volumes fell in April (fuel down), with France up slightly (+0.3%). Business Expansion: Fortidia reported €1.4bn revenue for 2025 and continued global growth via new service centers and acquisitions. Climate & Farming: A France dataset suggests regenerative farms cut drought yield losses by about two-thirds versus least-regenerative plots. EV Charging: The EIB will help Ireland speed up EV charging rollout with a nationwide network plan.