The German Economic Institute has downplayed the negative impact of the U.S. Inflation Reduction Act on Germany, suggesting that the act's effects have been exaggerated and that retaliatory spending could be a mistake. The institute's paper indicates that the U.S. taking climate protection seriously is legitimate and that the German economy could benefit from increased U.S. demand for exports. The European Commission's Net-Zero Industry Act aims to strengthen Europe's clean tech industry in response to the U.S. subsidies. The institute also notes that the IRA's local content requirements may not significantly affect European companies and that German companies have not expressed major concerns about the law.

The EU and UK have reached an agreement on the EU's access to UK IT systems for tracking goods moving from Great Britain to Northern Ireland, marking progress in the post-Brexit trade dispute. This development is seen as crucial for a wider agreement on physical checks under the Northern Ireland protocol. Technical teams will rapidly explore solutions, with a stock-take scheduled for January 16. The protocol allows for free flow of goods across the Irish land border but requires stricter controls on goods from Britain. The agreement aims to build trust and provide assurance for future EU-UK discussions. The announcement comes amid renewed diplomacy between Northern Ireland unionists and the Irish government, with both sides recognizing the importance of data sharing to reduce the need for physical checks at ports.

A Dutch subsidiary of the originally Russian company Yandex has been involved in developing facial recognition software used by Putin's regime to track and arrest protesters, potentially violating sanctions against Russia. This information comes from an investigation by Follow the Money, The Bureau of Investigative Journalism, and Paper Trail Media.

Russia is utilizing online gig workers to support its surveillance mechanisms, with assistance from a European company. Experts suggest that supporting companies developing such software could potentially breach sanctions.

The UK government, led by Prime Minister Rishi Sunak, is facing internal discussions about potentially pursuing a 'Swiss-style' relationship with the EU, which would involve closer trade ties without full EU membership. Sunak has publicly denied any plans to align with EU laws, despite recent comments from Chancellor Jeremy Hunt about reducing trade barriers. The European Union remains non-committal, awaiting concrete proposals from the UK. The European Research Group, a pro-Brexit faction within the Conservative Party, is closely monitoring the situation, wary of any perceived backtracking on Brexit. Business leaders, like Matthew Fell from the Confederation of British Industry, emphasize focusing on existing agreements rather than speculating on new deals.

The German government has reached a compromise on the controversial Hamburg port deal, allowing Chinese company Cosco to buy a reduced 24.9 percent stake in Hamburger Hafen und Logistik (HHLA). This decision follows internal government debates and concerns from Green party and FDP politicians about Chinese influence over critical infrastructure. The compromise aims to prevent Cosco from having a formal say in the terminal's strategy. Despite the agreement, some politicians, like Svenja Hahn, criticize the move as a strategic mistake, highlighting China's restrictive policies on foreign ownership of its own ports.

Portugal is considering ending its golden visa scheme, which has attracted wealthy investors by offering residency in exchange for significant investments. Prime Minister António Costa indicated that the program might have outlived its usefulness. The scheme, launched in 2012, has been popular among investors from non-EU countries, but has faced criticism from the European Commission and European Parliament for undermining the essence of EU citizenship. The program has also been temporarily suspended for Russians following the invasion of Ukraine. Controversy arose when Russian oligarch Roman Abramovich obtained Portuguese citizenship through the scheme, leading to an investigation.

EU ambassadors have agreed on an 11th sanctions package against Russia, introducing a mechanism to punish third countries aiding Moscow in evading trade restrictions. This package, designed to address compliance issues in countries like those in Central Asia, includes diplomatic outreach and technical assistance. The agreement follows concerns from countries like Germany about potential diplomatic fallout. European Commission President Ursula von der Leyen supports the package, emphasizing its role in tightening export restrictions and targeting entities supporting the Kremlin.

The U.N.'s aviation agency members voted to exclude Russia from the International Civil Aviation Organization's 36-member governing council, a significant decision-making body. Russia failed to secure enough votes, falling six votes short. Western countries have accused Russia of illegally confiscating planes, a charge Moscow denies. This vote marks a significant change, as the council's composition has remained largely unchanged for 40 years. Russia's request for a second vote to fill the empty seat was rejected, and it decided against running for a spot in the second tier. Lithuania's ambassador to Canada, Darius Skusevičius, noted this as a clear signal from the international community.