French PM considering referendum on budget plans
โThe question is serious enough, with far-reaching consequences for the countryโs future, that it should be put directly to the people,” Bayrou tells Journal du Dimanche.
Public spending
5 pro tips for Donald Trump from Liz Truss* amid market bloodbath
Tips on selling your bold and purposeful economic action from the former British prime minister (*maybe … )
France risks missing deficit target because of Trumpโs trade war, economy minister says
PARIS โThe trade war with the United States might prevent France from bringing down its sky-high budget deficit, French Economy and Finance Minister Eric Lombard said on Friday. โTax revenues would probably fall, and then GDP would fall compared to forecasts, which would worsen the deficit,โ Lombard said in an interview with BFMTV/RMC on Friday. [โฆ]
Trump tariffs should start โmarch to independenceโ for Europe, says ECB chief Lagarde
โI consider it a moment when we can decide together to take our destiny into our own hands,” says European Central Bank boss.
Germany must leave its comfort zone
Germany can reinvent itself โ with bold decisions, growth-oriented investments, and a concerted push for innovation by industry and government. What we donโt need? Cosmetic fixes and piecemeal thinking and regulation.
The Starmer and Reeves double act is about to be tested
A strong, if shallow, partnership at the top has defined Labour in office. Can it hold when the going gets tough?
From welfare cuts to Trump tariffs: 7 takeaways from the UK spring statement
Social security cuts, a Whitehall squeeze โ and a (future) silver lining on growth. POLITICO sat through Rachel Reevesโ spring statement so you didnโt have to.
No Plan B? Labourโs Project Growth still isnโt paying off
UK Chancellor Rachel Reeves unveils her spring statement Wednesday against a gloomy backdrop โ and Labour MPs are getting twitchy.
UK chancellor will double down despite growing opposition
It’s a fiscal gamble, but for now, Reeves will continue to argue thereโs no other way than to take the bet she’s making.
UK considers pulling the plug on ยฃ180M Brexit trade system
โSingle Trade Windowโ platform could be abandoned as government seeks savings ahead of spending review.
EU slams the door on US in colossal defense plan
Bloc aims to build up military-industrial complex to deter Russia and brace for the U.S. shift away from Europe.
Eurozone countries to cut public spending despite defence investment boost
Eurogroup President Paschal Donohoe told reporters that the eurozone’s โoverall fiscal stanceโ this year is still expected to be โslightly contractionaryโ despite steep increases in defence investments.
Welfare vs. warfare: Franceโs political parties divided over cash for defenseย
Macron’s calls for more military spending without tax increases have sparked fears over future cuts to social programs.
This newbie UK minister faces a baptism of fire on a key Labour promise
Miatta Fahnbulleh, left-wing-economist-turned Labour minister, has been tasked with cutting Brits’ energy bills. But convincing the Treasury to budge makes it a mammoth task.
ECB cuts deposit rate again as Europe heads into uncertain futureย ย
But policy easing is no longer on autopilot.
UK Treasury plots bailout for stricken Thames Water
Debt-laden water supplier has secured a private emergency loan โ but can’t use it because of ongoing legal action.
Germanyโs spending bazooka propels euro, borrowing costs higher
The euro surged against the dollar in early trading on Wednesday.
UK defence spending is about to boom โ can British firms step up?
Keir Starmer plans to build up UK military, but domestic companies could lose out if it is forced to turn to US weapons insteadEuropean defence stocks soar as arms makers expect orders boomCrowds of people cheered the HMS Prince of Wales aircraft carri…
Money alone canโt stop Europeโs industrial twilight
Subsidies are no panacea for the continentโs economic decline and social unrest.
The Guardian view on Spain: a progressive beacon in dark times | Editorial
Pedro Sรกnchezโs Socialist-led government has welcomed immigration and boosted public spending, with stellar resultsCoverage of this weekโs seismic election result in Germany focused on the disturbing rise of the far right, and chancellor-in-waiting Fri…
Trumpโs uphill battle to make NATO allies hit his mega defense spending target
There is broad agreement to boost defense spending โ but the U.S. president’s call for 5 percent of GDP is too much for most European countries.
Paris follows a cut-price Olympics with a low-cost AI summit
France is hosting a global artificial intelligence summit that costs far less than the U.K.’s 2023 affair.
As Trump torches overseas aid, will Britain step up?
Britain used to lead the world on international development. But in the era of right-wing populists, its Labour government is now treading carefully.
France one step closer to 2025 budget as socialists rally behind government
France finally being on track to adopt its budget is also likely to reassure the Commission, which has recently expressed concerns about French public spending.
The post France one step closer to 2025 budget as socialists rally behind government appear…
Macron unveils plans to move โMona Lisa,โ build new Louvre entrance as billions in budget cuts loom
The French president said the project would be paid for by the museum’s own resources and private donors, not taxpayer money.
Elon Muskโs salute was โinnocent,โ insists Javier Milei
Argentina’s leader also lashes so-called woke ideology during fiery speech in Davos.
French PM Bayrou thrown surprise lifeline by Socialists
The center-left party’s decision augurs well for Bayrou, but looming budget talks could prove tricky.
EU goes easy on Franceโs Bayrou as he tries to plug โฌ53B black hole
The fledgling Paris government is “trying their best” to get a budget through parliament after a previous version sunk its predecessor.
France eyes โฌ32B in spending cuts and โฌ21B in tax hikes
Paris plans to cut the budget of all public agencies by 5 percent.
Tuesday briefing: What Ukraine might gain from two North Korean captives
In todayโs newsletter: Kyivโs interrogation footage of captured North Korean soldiers leads to questions about what it might do with the soldiers โ and what the PoWs might do for themGood morning. In a grinding war where significant changes at the fron…
Macronโs conservative allies warn against diluting pension reforms in 11th hour talks
The French government has shown openness to revisiting the 2023 law changing the retirement age in exchange for tacit support from the center-left.
Scholz vs Merz: Election manifestos reveal competing visions for Germanyโs revamp
Voters are left with the left-right choice between muscular public spending and deregulation.
The post Scholz vs Merz: Election manifestos reveal competing visions for Germanyโs revamp appeared first on Euractiv.
Starmer wants to โdouble downโ on Russia sanctions โ but wonโt spell out defense hike
“We have to put Ukraine in the strongest possible position whether or not there are negotiations,” says UK prime minister.
Review of ยฃ1.2tn in UK public spending will โbe tightโ, minister warns
Treasury chief secretary Darren Jones launches line-by-line assessment to find 5% savings
Compromise is a dirty word in French politics โ but it may be Emmanuel Macronโs only hope | Paul Taylor
The president needs to find a new PM to stabilise Franceโs standing on the world stage, even if that means turning to the Socialists Having failed to solve Franceโs political crisis with a prime minister dependent on the far right, President Emmanuel M…
Chronic inflation hits Russia as huge pay increases fuel rising prices
Inflation has again spiked in Russia in recent months, fuelled by massive public spending on the Ukraine war and big wage increases in many sectors of the economy. To counter this, the Central Bank raised its benchmark interest rate to a record 21 per…
As Franceโs Marine Le Pen stumbles, her far-right protรฉgรฉ seizes the limelight
Jordan Bardella’s glitzy book tour encourages speculation about a palace coup at the top of the National Rally party.
PMQs: Keir Starmer wins by clobbering Tories on investment
Kemi Badenoch failed to land big blows, although she put the PM on the rack over the real-world impact of his national insurance hike.
Boost UK defence spending to win Trumpโs support, former navy chief urges Starmer
Lord West says Republican victory is chance to show Britain is willing to prioritise military by allocating 3% of GDPKeir Starmer is being urged to consider an emergency cash injection into defence and to accelerate Britainโs planned review of its mili…
The collapse of Germanyโs government will delight Trump โ and his European friends | Paul Taylor
The German dream of centrist, stable government has been dashed by geopolitical forces and the cult of balanced budgetsWednesday 6 November was a seismic day in the politics of the west. On one side of the Atlantic, it was confirmed in the early hours …
Labourโs tax-hiking UK budget wonโt boost growth, experts warn
Institute for Fiscal Studies boss bets Chancellor Rachel Reeves will have to come back for more tax rises.
Britain cranks up taxes by ยฃ40B and gambles on growth
Labour’s Rachel Reeves signaled that the new British government plans record tax rises on the wealthy and on business.
Keir Starmer plays fast and loose with public trust in UK budget
Wriggling on tax and public spending promises is a big risk for Britain’s new leader soon after coming to office.
Germany eyes EU extension to rein in spending as recession bites
So far, only Italy, Spain and Finland have been granted similar extensions.
The great switcheroo: How France overtook Italy as the EUโs No. 1 budgetary basket caseย
As Paris blows its long-earned fiscal credibility, Rome has started to look respectable in the eyes of the EU’s fiscal cops.
French government unveils unprecedented public spending cuts and tax hikes for 2025
French government unveils unprecedented public spending cuts and tax hikes for 2025
The rise and fall of Macronomics
Macron was once seen a paragon of good economic management, but his opponents now accuse him of ruining France’s finances.
France plans to tax big business and the rich, while slashing public spending
Budget to tackle French debt includes a windfall tax on profits of the largest firms.
Budget will be key to Barnierโs survival
The French prime minister understands the scale of the emergency heโs been confronted with โ and that it will determine the fate of his minority government.
Spending cuts needed to tackle Franceโs colossal debt, Michel Barnier tells MPs
New prime minister receives applause and boos in national assembly as he urges political forces to work togetherIn his first address to the French parliament, the new prime minister, Michel Barnier, has said โcolossalโ debt is a financial โsword of Dam…
5 things to watch for in French PM Barnierโs first parliamentary address
What he says will affect everyone from French pensioners to European commissioners.
FS policy: 20 people to meet at Tory conference
The party is licking its wounds from a gargantuan defeat at the U.K.โs general election in July, and it still doesnโt have a leader. So this yearโs Conservative Party conference will be a bit different, with most eyes on the leadership debate rather than the policies the party will prioritize in opposition. Nonetheless, in financial [โฆ]
Financial services role goes to Albuquerque โ but she brings baggage
Former Portuguese finance minister is known for introducing harsh economic austerity.
Liz Truss: Things would be better if I was still in charge
Liz Truss’ grand plan was “undermined by the economic establishment,” argues Liz Truss.
French PM Barnier unveils new government, putting budget and EU affairs under his purview
The Cabinet is the โmost right-wing’ in more than a decade.
Meet the commissioners: Class of 2024
Everything you need to know about Ursula von der Leyen’s team for her second term.
Germany’s major economic error is taking all of Europe down with it
Despite a stagnant economy and healthy public finances, Germany refuses to increase public spending, with consequences for the entire eurozone, writes Eric Albert.
Michel Barnierโs new secret EU mission
Can the former chief Brexit negotiator, now France’s prime minister, grease the wheels on budget talks with Brussels?
French PM Barnier promises โfiscal fairnessโ will help keep debt under control
The new prime minister insisted he did not want to raise France’s โ already considerable โย debt levels.
Cheer up, Keir! UKโs Starmer told to lighten up
Elected on a landslide two months ago, the new British PM ought to be on top of the world. Instead his glumness is beginning to grate.
Defense firms need full access to EU cash as Putin haunts Europe, Draghi says
Looming threats must spark major rethink of European defense policy, according to draft of new report seen by POLITICO.
Macron sweats under growing pressure to appoint prime minister
The French president will hold talks Monday with former Socialist PM Bernard Cazeneuve, seen as a front-runner for the job.
Incoming French government faces tricky balancing act to avert EU fiscal rules troubles
Amid a deeply divided National Assembly, France’s new government leaders will face tough negotiations on the 2025 budget, with European Commission financial penalties looming if the country’s public finances do not improve.
Blood scandal payouts heap fresh cost pressure on UK government
Ministers briefed to expect ‘significant additional costs’ as UK widens payouts for worst-ever health scandal.
Germanyโs Scholz under friendly fire over US missile plan
โNot every weapon makes Germany immediately safer,โ says Rolf Mรผtzenich, the leader of the SPD faction in the Bundestag.
Labour steals Tory playbook for financial blame game
Labour, with an eye on the next election, wants voters to hear that the public finances are worse than they thought โ so blame the Tories for higher taxes.
France needs to cut over โฌ100B so it doesnโt end up like Italy
Economists say country still in “control of its own destiny” but government must act fast.
Putin โpeddling liesโ about ailing Russian economy, say EU ministers
Group of finance ministers call for sanctions to be ratcheted up amid signs Moscowโs war machine is weakeningOpinion: Russia sanctions are working โ and we need moreVladimir Putin is โpeddling liesโ about the strength of the Russian economy that must b…
Can Europe rely on private capital to achieve its goals?
Itโs no secret that Europe is facing some of the biggest challenges in its history, from the digital and green transition to climate adaptation and mitigation, along with the need to boost its security and defence resources and enhance its competitiven…
New Popular Frontโs radical spending plan compatible with EU rules, Mรฉlenchon claims
The left-wing alliance has pledged to up public spending at a time when France has been cautioned over its excessive public deficit.
French election: Rivals unite against Le Penโs far right
Hundreds of candidates from Macron’s camp and the left-wing alliance withdraw in an effort to keep the National Rally out.
The UK election has already failed
Britain in 2024 is facing huge, systemic problems. Few have been addressed in the campaigning thus far.
How to navigate Hungaryโs EU presidency policy agenda like a pro
The countryโs Council stint will be marked by political change in Brussels following the EU election.
EU Commission ups pressure on seven countriesโ public spending; spares Estonia for defence investment
The European Commission issued formal warnings to seven member states for violating the blocโs budget rules on Wednesday (19 June), piling pressure on some of the blocโs largest economies to rein in public spending.
Franceโs next government will have to tussle with EUโs spending police
Macron’s snap election looks likely to herald a fight between Paris and Brussels as the country is one of seven placed in Excessive Deficit Procedure.
France and Italy denounced by European Commission for overspending
Second and third-largest eurozone economies under pressure over budget deficits.
France risks IMF, Commission oversight if Macron loses, finance minister warns
Bruno Le Maire raises the specter of financial disaster for France if President Emmanuel Macron’s opponents win this month’s snap election.
French far right backpedals on big-ticket proposals as markets tumble
French Finance Minister Bruno Le Maire has raised alarm that France could face a financial crisis if the far right were to win in the legislative elections.
5 takeaways from Labourโs โCaptain Cautionโ manifesto
Keir Starmer is promising change from 14 years of Tory government. In fiscal terms, it’s not so much โ for now.
Macronโs high-risk election puts Franceโs economy on the line
The rise of the far right is sending tremors through financial markets and could push French debt deeper into the danger zone.
Emmanuel Macron defends snap election and calls for moderate parties to unite against far right โ as it happened
This live blog is now closed, you can read more on this story hereMacron is now speaking about economic goals.Speaking at a press conference, Emmanuel Macron said that in Sundayโs vote in the European election citizens have expressed their concerns and…
Belgiumโs agent of chaos
Flemish far-right frontman Tom Van Grieken battles to break up Belgium.
MEP: Italyโs post-RRF spending cuts sets dangerous precedent for EU funding
A draft Italian government’s decision to use resources received under the EU Recovery and Resilience Facility (RRF) to cut public spending risks setting a dangerous precedent for future joint EU public funding policies, an Italian MEP from the Greens a…
Labourโs election policy positions, tracked
Absolutely everything you need to know about what the opposition party is promising ahead of the July 4 election.
Macron tells Germans: Letโs double the EU budget
French president said the spending splurge could be funded either by common borrowing or by using existing instruments.
Post-Brexit border checks forecast to cost UK ยฃ4.7bn, says NAO
Watchdog says says repeated delays have caused unnecessary costs and strategy lacks a โclear timetableโThe government expects to have spent at least ยฃ4.7bn on introducing post-Brexit border controls, which have been repeatedly hit by delays, the public…
UK taxpayers left on hold for 800 years, says spending watchdog
In a damning report, the UK’s public spending watchdog – the National Audit Office (NAO) found HM Revenue & Customs’ (HMRC) customer service was “in a declining spiral” and had not met its goals for responding to taxpayer correspondence or telephone ca…
France lands record โฌ15B in foreign investments as Macron hosts business summit
Microsoft, Amazon and Pfizer are among the firms set to pledge billions of dollars in investments at the ‘Choose France’ summit in Versailles.
France gets a reprieve on credit rating, but doubts persist on fiscal outlook
Moody’s and Fitch keep assessments unchanged, but are cautious on French government’s ability to meet deficit targets.
Unlocking the full value of adult immunization
It is time to adopt a prevention-first mindset.
Macron, Le Maire feud flares up amid Franceโs fiscal woes
The French president is agitated by his finance ministerโs calls for drastic spending cuts ahead of the European election, where his centrists are likely to face a drubbing.
After two years of war, Russian economy proves resilient โ but for how long?
Despite several rounds of sanctions levied by Western powers over the war in Ukraine, the Russian economy registered strong growth in 2023 after a recession the previous year. Fuelled by increased public spending โ particularly military spending โ oth…
Counting frozen Russian funds
SNEAK PEEK โ Former Tory leader criticizes slow movement of Russian asset seizure.ย ย โ SCOOP: City minister talks up U.K. financial servicesโ role in digital innovation. โ Banks push back against new government snooping bill. Happy Wednesday! Weโre half way through the working week and oodles has already happened in the happy land of financial [โฆ]
Eurogroup says new fiscal rules will require public spending cuts
The statement follows multiple expertsโ warnings that the rules will render it โimpossibleโ for the EU to achieve its net-zero target by 2050.
UK Budget 2024: All the highlights
POLITICO watched Jeremy Hunt’s big fiscal event so you didn’t have to.
Welcome to budget week
SNEAK PEEK โย Wednesdayโs budget looms and weโve got the details. โย Bank of England told to clamp down on excessive compliance breaches. โย Change of rules to allow fractional shares in ISAs set for delay. Good morning readers! We probably donโt need to remind you that itโs budget week this week. Itโs going to be [โฆ]
Hunt attempts to woo first-time buyers
SNEAK PEEK โ SCOOP: Hunt to court first-time buyers with lifetime ISA shake-up. โย Bim Afolami defends โdamp squibโ Edinburgh reforms. โKing Charles III will be on your fivers from June 5. Good morning! Weโre writing to you from our London HQ. Perhaps one day weโll write from the BT Tower, which is due to become [โฆ]
France announces โฌ10bn cut in public spending as growth outlook darkens
French Finance Minister Bruno Le Maire said the government had lowered its forecast for 2024 GDP growth to 1% from 1.4% as war in Ukraine and Gaza and a slowdown at top trading partners Germany and China darkened the outlook.
Penury and decay mark Brexitโs miserable anniversary | William Keegan
For years after leaving, and with more self-harm in prospect, austerity is eating away at Britain. Where is the indignation?So we pass the fourth anniversary of Brexit. The trade barriers mount, with the UK โreclaiming sovereignty from Brusselsโ in ord…
How Britain learned to love Keir Starmerโs โboring, snoringโ right-hand woman
Rachel Reeves’ low key approach seems to be striking a chord with voters.