By Steven Scheer

JERUSALEM (Reuters) - Israel's competition watchdog sought more data on Sunday from the country's banks relating to an investigation, saying they were enjoying huge profits from higher interest rates on loans but weren't adequately sharing the benefits with customers.

The investigation, which began in 2022, wasn't made public prior to Sunday.

In a bid to rein in inflation, the Bank of Israel last week raised its benchmark interest rate by another 25 basis points to a 2006 high of 4.75%, its 10th straight hike of the key rate that stood at 0.1% last April.

"The fight against the cost of living tops our government's list of national priorities," Prime Minister Benjamin Netanyahu told a cabinet meeting on Sunday, adding he would set up and head a ministerial panel on the matter. 

Mortgage and loan payments, often tied to both inflation and the central bank's rate, have in turn jumped. This has caused anger among the public even as it has meant record profits for banks and sizeable dividends for their shareholders.

The top five banks earned a combined profit of 6.3 billion shekels ($1.7 billion) in the first quarter.

Banks have been slow to pass on the benefits of higher rates to customer deposits, the Competition Authority said.

Israel's aggressive policy-tightening cycle has sparked anger among its citizens as mortgage, loan payments and the cost of living have soared, with inflation staying around 5%.

The Competition Authority, formerly the anti-trust authority, said it had launched the investigation in 2022 when interest rates were starting to rise, and based on preliminarily results, it asked banks last week to provide more data. It declined to provide details on any possible disciplinary action.

Israel's banking regulator has downplayed the issue. Yair Avidan, the supervisor of banks, last week told reporters that 82% of the rate hikes have been passed on to customers. Still, he said many customers were not aware they could open interest-bearing accounts, and urged banks to educate their customers.

Last week, Economy Minister Nir Barkat asked Competition Authority head Michal Cohen to step down, saying she was a main cause of higher prices in the economy since the authority had not confronted monopolies enough. Cohen has refused to resign.

Barkat said that the authority "must carry out this investigation intensively, quickly and efficiently, because until it is completed, the public will lose."

($1 = 3.6280 shekels)

By Steve Holland

WASHINGTON (Reuters) - When Kevin McCarthy was struggling early this year to get enough votes from his own Republicans to become Speaker of the House of Representatives, Democratic President Joe Biden called the prolonged saga a national embarrassment, then had a little fun.

"I've got good news for you," Biden said, pointing playfully at a reporter after a speech in Kentucky. "They just elected you speaker."

During months of tense exchanges over the U.S. debt ceiling, McCarthy has also taken some swipes at Biden. Arguing that Biden should meet him to discuss his demands for lifting the debt ceiling in March, McCarthy made fun of the 80-year-old president's advanced age.

"I would bring lunch to the White House. I would make it soft food if that's what he wants. It doesn't matter. Whatever it takes to meet,” McCarthy told reporters.

In the last few weeks, however, both men have stopped the put-downs and cobbled together an agreement that will now lead to a congressional vote to suspend the U.S. debt ceiling and avoid a default that would wreak economic havoc on the country.

Like the deal they crafted, the relationship the two men forged does not look pretty but appears to have gotten the job done.

"I think he negotiated with me in good faith," Biden said of McCarthy on Sunday. "He kept his word. He said what he would do. He did what he said he would do."

The deal caps federal spending and forces more poor people to work for food aid, concessions that Democrats hate. But it also preserves much of Biden's Inflation Reduction Act and punts the next debt ceiling showdown into 2025, which Republicans hate.

STRANGE POLITICAL BEDFELLOWS

Biden, a veteran former senator from Delaware, talks about the days when both parties would often come together to solve pressing problems, and he has pushed his fellow Democrats to find across-the-aisle agreements as part of his larger attempts to re-center the country.

Although he initially called for the debt ceiling to be raised without negotiations, he ended up making compromises.

McCarthy, a 58-year-old Californian, is representative of a pugilistic style of Republican politics that took root with the "Tea Party" and blossomed under former President Donald Trump.

He came up through the party ranks pushing tax cuts for companies and reduced government spending and is now presiding over an unruly Republican Party in which radical lawmakers have threatened to force him out of the Speaker job unless he takes a hard line with the White House.

After an initial Feb. 1 meeting at the White House, an optimistic McCarthy predicted that he and Biden would find common ground and meet again soon.

Instead, a three-month stand-off ensued.

Biden refused to negotiate as the White House bet that investors and business groups would persuade Republicans to back off their threat to drive the United States into default.

Both McCarthy and Biden spent that time accusing the other of putting the U.S. economy at risk. McCarthy complained of his own isolation from the White House.

"I never had somebody from the White House reach out to me. Not one person from the administration called me. I called them," the House speaker told reporters at a Republican retreat in March.

Even after negotiations finally began in earnest, McCarthy portrayed the president as the captive of "socialists" intent on default.

"He'd rather be the first president in history to default on the debt than to risk upsetting the radical socialists who are calling the shots for Democrats right now," McCarthy tweeted last week.

But his tone changed as both sides moved toward a deal last week, expressing his respect for White House negotiators: "These are highly intelligent, highly respected on both sides. They know their work, they know their job, they know the numbers."

House Republican Patrick McHenry, a key negotiator in the talks, noted that Biden and McCarthy were "two Irish guys that don't drink" but had found a way to work together.

"What I saw in the Oval Office yesterday was a willingness to engage with each other in a sincere way - air disagreements, listen," McHenry said after one of the meetings last week.

Biden aides say the relationship between Biden and McCarthy is largely cordial and businesslike and that Biden recognizes the Speaker has a struggle on his hand presiding over the various factions within the Republican Party.

TRUMP, PELOSI CONNECTIONS

It may not help their relationship that both men were very close to the other's predecessor.

Biden idolized former Democratic House Speaker Nancy Pelosi, a woman "who I think will be considered the greatest Speaker in the history of this country," he said at his Feb. 7 State of the Union address.

McCarthy was an enthusiastic supporter of Biden's predecessor, Republican Donald Trump, and a frequent flyer on Air Force One when Trump was president.

He was among 147 Republicans who voted to overturn Biden's 2020 election win over Trump's claims of election fraud, although he eventually acknowledged Biden as the legitimate president.

He criticized Trump over his failure to rein in his own supporters during the Jan. 6, 2021, attack on the U.S. Capitol, but remains in touch with him.

By Nicoco Chan and Ellen Zhang

SHANGHAI/BEIJING (Reuters) - Wang Chunxiang pushes a cart around busy areas of Shanghai, playing cat and mouse with the authorities as she tries to sell pastries. The jobs she could get do not pay enough for her to make ends meet.

"Salaries are too low," said the 43-year-old, after serving a customer steamed sweet rice cakes from a wok.

"At my age, without much knowledge, I could only earn 5,000 to 6,000 yuan ($868) per month as a cleaning lady. Shanghai rent is so expensive. Even low quality homes are 2,000-3,000 yuan," said Wang, who recently resumed hawking after a six-year break.

She can earn about 10,000 yuan in a good month selling pastries for 15 yuan a box.

As life in China returns to normal after the pandemic, hawkers are hitting the streets. They look to at least supplement their income amid an uneven economic recovery in which jobs and wage growth has been sluggish.

For decades, street stalls and hawkers - common elsewhere in Asia - have been banned or tightly regulated in many Chinese cities, with authorities seeing them as unsightly.

There are signs, however, that local governments are giving hawkers more leeway, a trend expected to continue.

Zibo in eastern China became a media sensation this month after a rush of tourists visiting street food stalls forced authorities to issue warnings about overcrowding.

The tech hub of Shenzhen, which banned hawking in 1999, will ease restrictions on street stalls from September. Shanghai is seeking public opinion on revising hawker regulations and in April said it had set up 74 spots for vendors.

Lanzhou in the northwest said this month it would designate areas for street stalls as it sought to encourage innovation and entrepreneurship.

"It's natural for some local governments to trial street vending as they are facing great pressure in stabilising local economies and the job market," said Bruce Pang, chief economist at Jones Lang Lasalle (NYSE:JLL).

Household income grew 3.8% year-on-year in the first quarter, lagging broader economic growth. The job market remains sluggish with youth unemployment at a record high.

Economic pressure is forcing hawkers to risk fines or having their products confiscated.

Wang Xuexue, 28, who sells flowers off her scooter in Shanghai, prefers to hawk her goods away from designated areas, which she says are out-of-the-way and charge fees.

"Of course authorities try to catch us. Otherwise we wouldn't run so fast," said Wang Xuexue, who worked in a flower shop until recently.

Even in Beijing, which President Xi Jinping said should remain above all a "political centre" without a street economy, hawkers were seen at tourist spots.

Lu Wei, a pen seller, had his own store before the pandemic but cancelled the lease in 2020 as sales dropped and he could no longer afford rent. He now touts his 30-yuan pens along Beijing's Houhai lake, although business is slow.

"People have no money in their pockets. Even if they do, they don't want to spend it," Lu said.

($1 = 6.9121 Chinese yuan)

NAIROBI (Reuters) - Kenya will sign a trade pact with Russia aimed at boosting cooperation between businesses, President William Ruto's office said on Monday, after hosting Russian Foreign Minister Sergei Lavrov in Nairobi.

Russia has stepped up its drive to boost economic ties with Africa to help offset a big chill in relations with the West prompted by its invasion of Ukraine, and plans to hold an Africa-Russia summit in St Petersburg in July.

Kenya's presidency said in a statement that bilateral trade with Russia was still low despite the potential and the pact would give business the "necessary impetus".

It did not say when the pact might be sealed or give details on what it might encompass. Russia currently sells mostly grain and fertilisers to Kenya.

On Ukraine, the statement reiterated Kenya's support for respecting the territorial integrity of all countries, adding:

"Kenya calls for a resolution of the conflict in a manner respectful to the two parties."

Russia says its invasion of Ukraine, launched on Feb. 24, 2022, is aimed at protecting its own security against Ukraine's pro-Western leadership.

Kyiv and its Western allies accuse Moscow of waging an unprovoked war of aggression. Western nations have slapped sweeping economic sanctions on Russia, prompting it to forge closer ties with China, India, African nations and others.

Lavrov has visited the African continent at least three times this year, while Ukraine's foreign minister Dmytro Kuleba travelled to countries including Ethiopia, Rwanda and Mozambique last week.

Kenya's presidency said Lavrov was on his way to Cape Town for a June 1 meeting of foreign ministers of the BRICS group of emerging economies, which comprises Brazil, Russia, India, China and South Africa.

By Liangping Gao and Ryan Woo

BEIJING (Reuters) - China's new home prices will see a slower growth this year, according to a Reuters poll, suggesting pent-up demand after the country's economic reopening is fading though a slew of stimulus policies boosted confidence.

New home prices are expected to rise 1.4% year-on-year in 2023, slowing from a gain of 2.5% forecast for that period in a February survey, according to a Reuters poll conducted in May.

A string of stimulus policies to the crisis-hit property sector and the lifting of COVID-19 restrictions in December have boosted sentiment in recent weeks.

The revival, however, seems to be uncertain after the pent-up demand was released on top of the patchy economic recovery. Property investment and sales fell sharply in April, and the pace of home price gains slowed during the month.

"Residents' confidence in their incomes and expectations of house prices declines, as well as homebuyers' concerns about the presold homes unable to deliver, remain key factors impacting homebuyers to enter the market," said analyst Huang Yu at China Index Academy.

Property sales are expected to rise 2.7% from a year earlier for the whole of 2023, reversing a fall of 1.5% expected in the last poll, the survey showed.

A homeowner's failure to sell a flat in Beijing after dropping the asking price by 900,000 yuan in one month has created a buzz on social media on Friday.

"Homeowners need to sell at a lower price than the market if they want to sell their homes quickly in Beijing," said a property agent surnamed Lu, and she raised doubts on the sector's recovery in the coming months.

"China's property market has not yet stabilized and is still in a slow recovery from the bottom. The central and local governments are still releasing policies to support property market," said Wang Xingping at Fitch Bohua.

Property investment by developers is expected to fall 4.2% on year for 2023.

"In 2023, the property investment will mainly be driven by completion construction, and the decline in land purchase and new construction is expected to continue due to weak sales. We expect the decline in property investment for 2023 to narrow to around zero," said Wang.

"China property is set for another year of softening," said S&P Global (NYSE:SPGI) Ratings on Sunday，adding "weaknesses in China's tier-three and tier-four cities will keep the property recovery on an 'L-shaped' path. "

(For other stories from the Reuters quarterly housing market polls:)

($1 = 6.9121 Chinese yuan renminbi)

By Rae Wee

SINGAPORE (Reuters) - The dollar eased on Friday but remained near a two-month high against its major peers, buoyed by expectations that U.S. interest rates could remain higher for longer.

Debt ceiling negotiations between U.S. President Joe Biden and top congressional Republican Kevin McCarthy also continued to cast a shadow over the market mood, though news that the two are closing in on a deal aided investor sentiment and caused the greenback to pause its recent rally.

The dollar edged away from a six-month high against the yen in Asia trade and last stood at 139.77, having reached 140.23 yen in the previous session, its highest since November.

Against a basket of currencies, the U.S. dollar slipped 0.13% to 104.09, just off Thursday's two-month high of 104.31.

The index was, nonetheless ,on track for a third straight weekly gain of more than 0.8%, as traders ramped up their expectations of how much further rates could rise in the United States.

"Recent moves in currencies have been mainly driven by a sharp repricing of FOMC policy," said Carol Kong, a currency strategist at Commonwealth Bank of Australia (OTC:CMWAY) (CBA).

Money markets are now pricing in a 40% chance that the Federal Reserve will deliver another 25-basis-point rate hike at its policy meeting next month, while expectations that the Fed will begin cutting rates later this year have been scaled back.

Data released on Thursday showed that the number of Americans filing new claims for unemployment benefits increased moderately last week to 229,000, coming in lower than expectations.

The British pound and the euro were struggling to recoup their losses against a stronger dollar.

Sterling gained 0.13% to $1.2337, though it was still headed for a weekly loss of more than 0.8%. The euro rose 0.15% to $1.0741, but was not far from its two-month low of $1.0708 hit in the previous session.

The single currency was also weighed down by confirmation that Europe's largest economy Germany slipped into a recession in early 2023.

CHINA'S RECOVERY STALLS

Among other currencies, the Aussie was last 0.22% higher at $0.6520. It slumped to a more than six-month low of $0.6490 earlier in the session, further pressured by China's faltering post-COVID economic recovery.

"Data in the near-term for China will remain pretty weak and continue to point to a soft consumption recovery," said CBA's Kong. "That will be another weight to the Aussie."

The Australian dollar is often used as a liquid proxy for the Chinese yuan.

The kiwi rose 0.15% to $0.6071, though it was headed for a weekly loss of more than 3%, its largest since September, after the Reserve Bank of New Zealand earlier this week stunned markets by signalling it was done tightening.

China's yuan rebounded from a near six-month low against the dollar as some major state-owned banks sold the U.S. currency to prevent the yuan from sinking further.

"General renminbi depreciation is back in play," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

TOKYO (Reuters) -Japan and the United States are likely to issue a joint statement on semiconductor and advanced technology cooperation on Friday, the Yomiuri daily newspaper reported without disclosing where it obtained the information.

Japan's Minister of Economy, Trade and Industry Yasutoshi Nishimura and U.S. Secretary of Commerce Gina Raimondo will meet in the U.S. city of Detroit where Nishimura is attending the 2023 APEC Ministers Responsible for Trade Meeting to agree on the joint statement's contents, Yomiuri reported.

The United States has been garnering support among allies to join it in countering China in technological development at a time when Asia's biggest economy is becoming increasingly assertive on the international stage.

Washington has imposed a series of export controls on chipmaking technology to China whereas Beijing has barred operators of key infrastructure from using products from U.S. chipmaker from Micron Technology Inc (NASDAQ:MU).

Last week, the leaders of the Group of Seven advanced democracies, including the U.S. and Japan, took issue with what they called China's "economic coercion" and agreed to reduce exposure to the world's second-largest economy.

A new Japan-U.S. statement is likely to include a roadmap for the development of next-generation semiconductors as well as plans to cooperate in artificial intelligence and quantum technology, the Yomiuri reported.

Ahead of meeting her Japanese counterpart, Raimondo on Thursday met China's Minister of Commerce Wang Wentao in Washington where the pair exchanged views on trade, investment and export policies.

By Takahiko Wada and Leika Kihara

TOKYO (Reuters) -Core consumer inflation in Japan's capital slowed in May but a key index stripping away the effect of fuel hit a four-decade high, underscoring broadening price pressure that may keep alive expectations of a withdrawal of ultra-loose monetary policy.

The data for Tokyo, which is seen as a leading indicator of nationwide trends, showed companies continued to pass on rising costs to households in a sign inflationary pressure could last longer than the Bank of Japan (BOJ) projects.

The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 3.2% in May from a year earlier, government data showed on Friday, roughly matching a median market forecast for a 3.3% gain.

Inflation slowed from the previous month's 3.5% but stayed above the BOJ's 2% target for a full year, the data showed.

The dollar pared some losses against the yen after the data and stood around 140.05 in Asia trade on Friday.

A separate index stripping away both fresh food and fuel costs rose 3.9% in May from a year earlier, marking the fastest pace of increase since April 1982 when Japan was experiencing an asset-inflated bubble.

Japan's economy is finally recovering from the scars of the COVID-19 pandemic, though risks of a global slowdown and rising food prices hang over the outlook for exports and consumption.

With inflation already exceeding its target, markets are rife with speculation the BOJ could soon phase out ultra-loose monetary policy under new governor Kazuo Ueda.

Ueda, however, has brushed aside the chance of a near-term policy tweak, stressing that inflation must sustainably hit the BOJ's 2% target and accompanied by solid wage growth for the bank to consider phasing out stimulus.

By Lucinda Elliott and Eliana Raszewski

BUENOS AIRES (Reuters) - Argentine Vice President Cristina Fernandez de Kirchner slammed the International Monetary Fund (IMF) on Thursday, saying that the program agreed to with the multinational lender is holding back the country's economy.

Fernandez de Kirchner, speaking at an event commemorating Revolution Day in Buenos Aires' historic Plaza de Mayo, said the debt is impossible to pay off.

The government's ruling coalition is attempting to shore up support from the IMF and advance payments ahead of October elections.

"If we are do not set aside this program ... to develop our own plan for growth and industrialization, it will be impossible to pay for," the vice president said, standing alongside Economy Minister Sergio Massa, who is trying to keep the $44 billion program on track.

She said the original deal was "political" and that the IMF program does not allow the country to distribute wealth. 

"The dead do not pay their debts," Kirchner said, quoting her late husband and former president, Nestor Kirchner, to thousands who gathered despite heavy rain.

Nestor Kirchner had uttered that line while president in 2005 when he announced that Argentina would pay off its $9.8 billion debt to the IMF before year-end and avoid a full-blown default. Like his wife, he repeatedly blamed the fund for bringing about poverty and "destitution."

The South American grains producer has a fraught history with the IMF. The country agreed to a $57 billion program with the Washington-based body in 2018 under former conservative leader Mauricio Macri to stave off economic crisis. That failed and was replaced last year with a deal to refinance the $44 billion in outstanding debt.

Fernandez de Kirchner, 70, a veteran on the left of the ruling Peronist party who served two terms as president between 2007 and 2015, called the original deal "scandalous" and a "scam" last week.

Her speech comes as Massa and his team are negotiating with the IMF to bring forward the disbursement of loans agreed to in 2022. A historic drought has hit grain exports, Argentina's top source of dollars, forcing both sides into talks to potentially revamp the deal.

The government wants faster payouts and easier economic targets as it works to rebuild reserves needed to cover trade costs and future debt repayments.

Massa is due to travel to China on May 29 to potentially expand Argentina's currency swap line with Beijing.

The ruling coalition faces an uphill battle against the conservative opposition in the Oct. 22 election, as voter dissatisfaction with soaring inflation, stagnant wages and years of economic turmoil dents public support.

Kirchner has insisted she will not run again, as has the current president, Alberto Fernandez.

(This story has been refiled to transpose the words 'the' and 'current' in paragraph 14)

Argentina VP says IMF hinders growth in Revolution Day speech

Add a Comment

Related Articles

Bitcoin trades near 2

Bitcoin trades near 2-month low as dollar surges amid debt ceiling jitters

Investing.com  - May 25, 2023 

Great Wall Motor says rival BYD failing on hybrid emissions By Reuters

Great Wall Motor says rival BYD failing on hybrid emissions

Reuters  - May 25, 2023 

McCarthy Says Issues Remain in Debt Talks, All Won’t Be Happy By Bloomberg

McCarthy Says Issues Remain in Debt Talks, All Won’t Be Happy

Bloomberg  - May 25, 2023 

You May Also Like

Diabetes Is Not From Sweets! Meet The Main Enemy Of Diabetes

Diabetes Is Not From Sweets! Meet The Main Enemy Of Diabetes

Diabetes Can Disappear In 4 Days, Sugar Can Drop To 3.9

diabeteslife.online

China's Commerce Minister travels to US to meet counterpart, attend APEC meeting By Reuters

China's Commerce Minister travels to US to meet counterpart, attend APEC meeting By Reuters

News - EN

Thai election defeat shatters Thaksin's myth of invincibility

Thai election defeat shatters Thaksin's myth of invincibility

Nikkei Asia

The Odds of US Going Past Default Date Are 25% and Rising, JPMorgan Says By Bloomberg

The Odds of US Going Past Default Date Are 25% and Rising, JPMorgan Says By Bloomberg

News - EN

Tokyo CPI inflation grows less than expected in May By Investing.com

Tokyo CPI inflation grows less than expected in May By Investing.com

News - EN

1 Teaspoon Before Bed Can Burn Belly Fat Like Never Before

1 Teaspoon Before Bed Can Burn Belly Fat Like Never Before

Try it tonight!

getfittoday.online

Add a Comment

Write your thoughts here

Post

Post also to:

Comment Guidelines

Close

IndicesCommoditiesBondsStocks

1D

1W

1M

6M

1Y

5Y

Max

32,730.0

16:00

26/05

08:00

32,500.0

32,600.0

32,700.0

32,800.0

  US 30 32,730.0 -34.7 -0.11%  

  US 500 4,144.8 -6.5 -0.16%  

  Dow Jones 32,764.65 -35.27 -0.11%  

  S&P 500 4,151.28 +36.04 +0.88%  

  Nasdaq 12,698.09 +213.93 +1.71%  

  S&P 500 VIX 19.14 -0.89 -4.44%  

  Dollar Index 104.180 +0.012 +0.01%  

ADVERTISEMENT

Most Popular Articles

News

Analysis

Wall Street ends higher as Nvidia sparks rush for AI stocks Wall Street ends higher as Nvidia sparks rush for AI stocks

By Reuters - May 25, 2023 24

Stock market today: Dow closes slightly lower as energy, Intel slump weigh Stock market today: Dow closes slightly lower as energy, Intel slump...

By Investing.com - May 25, 2023 7

Biden, McCarthy appear near to deal on US debt ceiling as default looms Biden, McCarthy appear near to deal on US debt ceiling as default...

By Reuters - May 25, 2023 15

Oil down 3% on “no new OPEC cut”; Russians speak for Saudis Oil down 3% on “no new OPEC cut”; Russians speak for Saudis

By Investing.com - May 25, 2023 15

Nvidia fuels Wall Street gains; gold falls to two-month low Nvidia fuels Wall Street gains; gold falls to two-month low

By Reuters - May 25, 2023 2

More News 

ADVERTISEMENT

By Kate Abnett

BRUSSELS (Reuters) - Increased political resistance to new EU laws to protect the environment has left the European Commission fighting to keep intact its vision for Europe's green transition.

Ahead of elections in the European Parliament in June next year, the European Union is racing to finish legislation that includes two landmark nature bills - binding targets for countries to restore damaged natural habitats and a goal to halve chemical pesticide use by 2030.

Much EU environment legislation has been passed over the last two years, but the appetite on the part of some lawmakers and member states for more is waning and farming groups say further change must be conditional on more financial support.

Brussels proposed the nature measures last June. Opposition has mounted in recent weeks, as EU countries and lawmakers prepare for the final negotiations. The European Parliament's biggest group, the European People's Party, has called for the nature law to be scrapped saying it would hurt farmers.

"It's just too much. People are frustrated with new rules every year," EPP lawmaker Peter Liese said.

The Commission proposal gives countries discretion to decide how and where to reverse biodiversity loss. But that flexibility, Liese said, makes it impossible for farmers to prepare.

"No farmer can predict what's happening on his land, what kind of rules he has to follow, in the next years," Liese said.

Other EU green proposals have also met resistance. And as the elections approach, unfinished laws are piling up. Their fate would be unclear under a new EU Parliament with a different composition.

French President Emmanuel Macron this month suggested a pause on new European environment regulation, to give industries time to absorb recently-agreed laws.

The Commission last week delayed another scheduled package of environmental proposals, plus a bill on microplastic pollution. A Commission spokesperson declined to comment on the reason for the delay.

Meanwhile, EU countries are pushing to weaken proposed pollution curbs for farms and methane emission limits for energy producers. Some capitals want to scrap new car pollution limits, and the EU's renewable energy targets are deadlocked by an argument over whether nuclear energy can be included.

NATURE AND CLIMATE LINK

In the last two years, the Commission, whose make-up will also change following next year's parliamentary elections, has proposed more than 30 laws designed to deliver green goals. The aim is to steer countries towards the EU's target to have zero net greenhouse gas emissions by 2050.

Most have been successfully passed, including tighter CO2 limits for cars, higher CO2 costs for industries and requirements to expand CO2-absorbing forests.

Many of the remaining bills are focused less on planet-warming CO2 emissions than on other environmental calamites - pollution, the collapse of bee and butterfly populations, or Europe's poor soil health.

EU officials say these crises are just as important as climate change, and are inextricably linked.

Restored ecosystems such as forests and peatlands, for instance, absorb more CO2 emissions. Greenhouse gas emissions from agriculture - the sector most affected by the nature laws - have barely fallen since 2005, the European Environment Agency has said.

Scientists have also raised alarm that drastic declines in insect populations have serious implications for other species and food crop yields.

"Without the nature pillar, the climate pillar is also not viable," EU climate policy chief Frans Timmermans told EU lawmakers this week.

Campaigners say losing the bill would also undermine the EU's international standing, after it lobbied for more ambitious global action at last year's U.N. biodiversity COP15 summit.

    Some countries, however, say more environment laws would overburden industries and risk denting political support for green measures.

Belgian Prime Minister Alexander De Croo this week said nature restoration, pesticide control and soil quality needed to be addressed, but he considered they were "lower ranked priorities" than tackling climate change.

"We could lose that momentum that we have built if we overburden ourselves with challenges that are not as life-threatening as climate change," he told the Wirtschaftstag economic conference.

NATURE VERSUS INFRASTRUCTURE

In closed-door negotiations, countries are seeking a long list of changes to the nature restoration law, diplomats said.

Denmark and the Netherlands are among those that want amendments to ensure countries can still quickly build infrastructure such as wind farms in areas where nature is being restored.

"We cannot do everything everywhere - housing, energy transition, nature restoration, flood protection," Dutch Nature Minister Christianne van der Wal told Reuters.

Farming groups say the EU's increasing environmental demands are not being matched with funding - which they say should be in addition to the EU's existing farming subsidies.

"The missing EU funding for this is a clear problem," said Pekka Pesonen, who heads European farming group Copa-Cogeca.

Even if countries find a compromise, the European Parliament could block the law, if other lawmaker groups side with the EPP. Two EU Parliament committees this week voted to reject it, signalling a tough vote ahead in the full Parliament.