Galp, a Portuguese oil and gas company, is collaborating with Swedish battery company Northvolt to build Europe's largest lithium processing plant in Portugal. The joint venture, named Aurora, aims to produce 35,000 tonnes of lithium hydroxide annually, which could power approximately 700,000 electric vehicles. With an investment of up to €700 million, the project is expected to create 1,500 jobs and commence operations in 2026. The plant will utilize renewable energy and contribute to Europe's efforts to reduce CO2 emissions. The demand for lithium is projected to surge, and currently, China dominates the lithium refining industry. Northvolt, supported by major investors, will purchase half of the plant's production for its battery manufacturing.

Paschal Donohoe, Ireland's Minister for Finance, is considered a potential candidate to lead the Eurogroup following Mário Centeno's decision not to seek reappointment. The Eurogroup, an influential body within the EU, is set to play a significant role in addressing the economic impact of the coronavirus crisis. Donohoe's candidacy is contingent on him retaining his position as finance minister in the new Irish government, which is currently being negotiated. Other candidates include Spain's Nadia Calviño and Luxembourg's Pierre Gramegna. Donohoe is seen as a balanced candidate with respect from both northern and southern EU countries, and his handling of Brexit has earned him additional respect. The decision will be made at the finance ministers' meeting on July 9th.

António Costa, the Prime Minister of Portugal, is facing the challenge of leading the country through the economic repercussions of the war in Ukraine. After securing an absolute majority in a snap election, Costa's government plans to invest €50 billion from EU funds, including COVID-19 recovery funds, to stimulate economic growth and move away from reliance on low wages. The government's four-year program includes raising the minimum wage, expanding renewable energy, and increasing social spending to counteract rising fuel costs. Costa is recognized for his balance of social spending and fiscal restraint, aiming to eliminate the budget deficit by 2025. Despite this, he faces criticism for not implementing faster economic reforms. Additionally, there is speculation about Costa's potential bid for the European Council presidency in the future.

Portugal, in contrast to neighboring Spain, has managed to maintain low infection and death rates during the COVID-19 pandemic. This success is attributed to the country's quick response, extensive testing, and strong social support. Portugal's government acted swiftly, declaring a state of emergency early and implementing a furlough scheme. Testing has been widespread, with a network capable of over 15,000 tests a day. The country's health minister, Marta Temido, and other experts credit factors such as fewer densely populated cities and cross-party support for the government's strategy. As Portugal begins to ease lockdown measures, there is concern about a potential second wave of infections, especially given the lack of data on immunity levels in the population. Portuguese scientists are working on serological antibody testing, particularly for health workers, to better understand the virus's spread.

The European Commission has proposed a plan for EU member states to voluntarily reduce their natural gas usage by 15% from August to March in anticipation of potential winter supply shortages due to the Russia-Ukraine conflict. This proposal, named 'Save gas for a safe winter,' has faced opposition from Portugal and Spain, with concerns from other countries as well. Portugal's energy secretary João Galamba and Spain's energy minister Teresa Ribera have expressed their countries' reluctance to comply without prior consultation. German energy minister Robert Habeck emphasized the need for European solidarity in gas saving. Hungary has declared an energy emergency and is seeking additional gas from Russia. The commission suggests that a severe winter and gas supply disruptions could lead to a significant drop in the EU's GDP. The proposal's approval is uncertain as it requires a majority of EU countries or a population majority to agree at an upcoming emergency meeting of energy ministers.

The FT News Briefing podcast discusses several key issues, including the anticipation of US-Russia talks in Geneva to address military tensions at the Ukraine border, with low expectations for an agreement. In Portugal, voter frustration with corruption and the legal system is highlighted, with the rightwing party Chega gaining traction. UK financial regulators are planning to increase oversight of cloud computing providers like Amazon, Google, and Microsoft due to concerns over potential disruptions to the banking system. The podcast also covers the growing investor interest in the metaverse, particularly in the hardware that will build it, with companies in Asia being at the forefront of this development. Finally, the retail industry is seeing a shift as Marks and Spencer's value surpasses that of online retailers Boohoo and Asos, indicating a successful adaptation to the competitive online market.

Portuguese companies will be prohibited from contacting their employees outside of work hours. The telework legislation, one of the most favorable for workers in Europe, also requires companies to cover the costs of electricity and internet for their employees.

Spain is experiencing a surge in COVID-19 infections, particularly among the younger, unvaccinated population, with the Delta variant accounting for about 30% of cases. This has led to Spain having the highest coronavirus rate in mainland Europe. Catalonia has reintroduced restrictions, and Castile-León is considering a curfew. Despite the rise in cases, Spain's tourism minister remains optimistic about the recovery of the tourism sector, emphasizing the country's vaccination progress. The Spanish government is also hopeful that new UK travel rules will boost tourism by removing quarantine requirements for vaccinated travelers. Meanwhile, Portugal is facing a similar challenge with the Delta variant, which is believed to have been introduced by workers from the Indian subcontinent, not British tourists.

Portugal's minority Socialist Party government, led by Prime Minister António Costa, is facing challenges due to the COVID-19 pandemic. The government's alliance with the Left Bloc and the Communist Party is strained over disagreements on public spending and fiscal prudence. Recent parliamentary votes have seen these parties join with right-of-centre opposition to defeat government proposals, including a significant capital injection for Novo Banco. The pandemic and upcoming political events, such as a presidential election and Portugal's EU presidency, make a snap election unlikely, despite the unstable political climate. The article suggests that the current political pact may be unsustainable, with potential implications for Portugal's political stability and economic recovery.

Shares in CaixaBank and Bankia, two major Spanish banks, surged after they announced discussions about a potential all-share merger. If successful, the merger would create Spain's largest domestic bank with assets over €650 billion and a combined market capitalisation of €16.6 billion. The news also positively affected the stock prices of other European banks. The merger is seen as a response to the challenges posed by the coronavirus pandemic and low-interest rates, which have increased consolidation pressure in the banking sector. The Spanish government, which holds a significant stake in Bankia following a bailout, aims to maximise the value of its investment and ensure financial stability. Analysts suggest the merger could lead to significant cost savings through branch closures and job cuts.