Austriaโs central bank chief: Donโt fear the far right
ECB rate-setter also warns that inflation risks are on the rise and that a January rate cut is not a done deal.
spending cuts
Franceโs Bayrou gets spending plan approved by EU
Endorsement in Brussels is major boost to new prime minister after 2025 budget toppled his predecessor.
Defiant Starmer declares he wants 10 years as UK PM
After Elon Musk’s call for him to be ousted, Britainโs prime minister reveals his thinking on the next election date and vows to complete a full second term in No. 10.
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…
Forget Elon Musk โ hereโs whatโs really terrifying the UK government
A return to austerity was not in Keir Starmer’s plans โ and it risks shredding Labour’s credibility while populists snap at its heels.
France signals fewer spending cuts and tax rises ahead of budget talks
Economy minister seeks to โprotect growthโ with slightly higher deficit target for 2025
French government to copy-paste budget that led to predecessorโs downfall
But finance ministry officials insist it’s just a time-saving move, not an endorsement of Michel Barnier’s plans.
Thereโs nothing very new about the new French government
The prime minister has failed his first big test. Despite another bunch of ministers, he hasnโt built a broader political base.
EU to Germany: Your lack of investment isnโt our fault
European economy chief says Berlin’s debt rules constrain spending more than the EU’s own restrictions.
New PM faces three steep hurdles to deliver a budget and stabilize France
Will Franรงois Bayrou’s government collapse over a budget vote, just as his predecessor’s did?
A stopgap budget meant to stave off US-style shutdown in France is ready
The outgoing government prepared the special legislation as Macron aims to find a new prime minister within days.
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…
For Franceโs Le Pen, itโs Barnier now, maybe Macron next
France’s far-right leader has brought the government to its knees. Now, with the country in political turmoil, she has the president in her sights.
Barnier makes last-ditch effort to prevent government collapse
“The moment is serious and difficult, but the challenge is not impossible,” the French prime minister said in a television interview.
The French prime minister will likely fall this week. So then what?ย
Only a miracle can save Barnier. There doesn’t seem to be one on the horizon.ย
Barnierโs French government hangs by a thread as Le Penโs ultimatum looms
Far-right leader holds prime minister’s future in her hands as eurozone’s second biggest economy hurtles toward political and financial uncertainty.
More than half of French want PM Barnierโs government to fall, survey shows
More half of the French want the current government to fall, a survey showed on Thursday. The reason for the anger is Prime Minister Michel Barnierโs budget proposal, which entails both steep tax hikes and painful spending cuts.
French bond yields surpass Greeceโs for first time as budget worries swirl
Investors fear dispute over planned tax rises and spending cuts could topple Michel Barnierโs government
French Socialists reject Barnierโs overtures, raising odds of a government collapse
The French prime minister will now need the support of the far right to survive.
French PM Barnier: A โserious stormโ is on the horizon if the French government falls
“This is a very serious moment,” Barnier said in an interview with French broadcaster TF1.
Commission urges gradual spending cuts to dodge austerity repeat
The EU’s outgoing commissioner Gentiloni encourages reforms and investments to keep growth alive.
โBabarโ Barnier outlasts Liz Truss and the lettuce
The French prime minister has embraced a plodding style utterly dissimilar to the kinetic energy of President Emmanuel Macron and his young acolytes.
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.
French government announces more than โฌ5B in additional spending cuts
The move will affect development aid and EV subsidies.
Franceโs credit-rating outlook cut to negative by Moodyโs
The ratings agency cited “increasing risk” over the countryโs debt and deficit.
Barnier and Macron on collision course over fixing Franceโs finances
French president appears to fundamentally disagree with the course of budget discipline advocated by his country’s prime minister.
Charge tourists to access Notre-Dame in Paris, French minister proposes
Non-EU visitors could also have to pay extra to enter the Louvre Museum, under proposals made by Rachida Dati.
France tightens its belt despite risk to growth
Michel Barnierโs new government walks tightrope between tax rises and spending cuts
Schadenfreude reigns as Berlin pays the price of its tough line on debtย
โItโs karma, no?โ said one European official.
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.
France’s plan to tackle deficit sparks outcry from left-wing lawmakers, unions
Franceโs minority government is facing heavy backlash from left-wing lawmakers and unions after proposing to slash the state budget byย โฌ60 billion next year as it aims to plug the country’s deficit. The finance bill, which includes major tax hikes and…
French government faces first major test over deep budget cuts
Bill aims to find โฌ60bn to plug deficit but opposition parties could demand concessions and even topple the administration The new French government is facing its first major test in a hostile parliament as it tries to push through a budget of spending…
French government unveils unprecedented public spending cuts and tax hikes for 2025
French government unveils unprecedented public spending cuts and tax hikes for 2025
France pledges to spare middle class after unveiling draconian budget cuts
The budget, unveiled on Thursday, aims to bring the deficit down to 5 percent of gross domestic product next year.
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.
French PM unveils shock therapy in 2025 budget
Michel Barnier bets on mix of spending cuts alongside tax hikes on companies and the wealthy
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.
France pledges 2025 budget will ‘fully’ comply with EU spending rules
France’s Finance Minister Antoine Armand vowed that the 2025 budget will fully align with the European Union’s new spending rules, as the country seeks to address its “colossal” debt through spending cuts and new taxes. Armand aims to bring the public…
How Sue Gray blew up Downing Street inside 100 days
The prime minister’s chief of staff was blamed for a disastrous start to Labour’s tenure in government.
France plans eye-watering โฌ40 billion in budget cuts for 2025
Prime Minister Michel Barnier said it would take until 2029 to get the countryโs deficit in line with EU rules.
Barnier lays out a survival plan for France โฆ and himself
The former Brexit negotiator tried to appeal to both sides of the political aisle during his first major policy speech.
Barnier sets out key policy priorities for France โ hoping Brussels would hear
Michel Barnier set out a series of policy priorities spanning spending cuts, immigration, health and more in a wide-ranging speech on Tuesday (1 October), with nudges and nods to Brussels that France was back under control.
French premier Michel Barnier announces tax rises and spending cuts
New prime minister says โcolossal debtsโ leave him no choice but to break with Macronโs economic policies
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…
France will need until 2029 to comply with EU spending rules, Barnier says
Addressing Franceโs โcolossalโ debt was the first major point the new PM hit in his speech.
Franceโs new government reportedly mulls higher taxes on big companies
Prime Minister Michel Barnier’s government is working on an exceptional, temporary tax on the profits of big corporations, as well as a new tax on share-buybacks, Le Monde reported.
Financial services role goes to Albuquerque โ but she brings baggage
Former Portuguese finance minister is known for introducing harsh economic austerity.
Meet the commissioners: Class of 2024
Everything you need to know about Ursula von der Leyen’s team for her second term.
UK spending cuts would damage โfoundations of the economyโ, Reeves told
Letter from leading economists calls for overhaul of Britainโs fiscal rules to boost investment
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?
David Cameronโs barefoot warrior bids for glory in California
Britain’s disrupter-in-chief and Trump admirer now has his eye on the Golden State’s governor’s mansion.
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.
UK snubs EU over rejoining Erasmus exchange scheme
A government spokesperson says the U.K. has โno plansโ to rejoin European program.
Liz Truss considered charging UK cancer patients, new book claims
Britain’s shortest serving prime minister explored ending NHS cancer treatment to find savings to stave off economic turmoil.
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.
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.
French government set to resign, ushering in indefinite transition periodย
The Attal administration will now serve as a caretaker government until a new prime minister is appointed.
New fiscal rules may require deeper-than-expected spending cuts in 2025, Eurogroup signals
Eurozone member states will have to cut net government spending by more than previously anticipated next year to comply with the EUโs stringent new fiscal rules, European finance ministers said on Monday (15 July).
Security and defense will have to rest more on Europe โ and less on the US
After decades of underinvestment and spending cuts to NATO, there remains much more to be done. But virtually all members now understand the urgency of the task at hand.
German coalition needs โpainfulโ compromises as it misses first 2025 budget deadline
Germanyโs three-party government coalition did not manage to reach an internal deal on the 2025 draft budget by Wednesday (3 July), which had previously been named as the deadline for an internal agreement, as differences over potential spending cuts p…
Bardella revives market unease with pledge to claw back billions from EU
The leader of France’s National Rally reignited market unease after hinting that a major fight with the EU is still on the cards.
How Britainโs Conservatives lost their heart and soul
Trends point to an historic collapse of the Tory vote in rural, semi-rural and suburban seats, the like of which England has maybe never seen before.
French markets wobble as EU Commission launches deficit procedure
France’s financial markets lost further ground on Wednesday (19 June) after the European Commission announced it intends to open an excessive deficit procedure (EDP) over the national budget, exacerbating fears that the ongoing political reshuffling ma…
We read Nigel Farageโs manifesto so you donโt have to
The key eyebrow-raising pledges in the Reform UK ‘contract’ with the public.
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.
Nigel Farage eyes debanking revenge with plan to hit bank profits
Reform UK thinks they can raise up to ยฃ40 billion to fund tax cuts by treating banks’ QE reserves differently.
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…
France hit by ratings downgrade despite spending-cuts crusade
Finance Minister Bruno Le Maire said the downgrade was the price to pay for bolstering the economy with public support during the pandemic and the inflation crisis.
Gentiloni โconcernedโ spending cuts by member states could hamper EU recovery
European Commissioner for Economy Paolo Gentiloni said on Wednesday (15 May) that he is โconcernedโ that excessive budget cuts could hamper the EUโs fragile economic recovery, adding that public investments will prove key to boosting growth across the …
UK announces ยฃ75B defense boost โ and challenges Europe to follow suit
Move will see Britain spend 2.5 percent of GDP on defense by end of the decade as Downing Street urges ‘other major European NATO economies to follow.’
French PM Attal unleashes Sarkozy-style politics to tackle far-right surge
Gabriel Attal returns to the themes that led to his meteoric rise in French politics, portraying himself as a man of law and order and a staunch defender of French secularism.
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.
Behind the Macron-Lula bromance
The presidents showered each other with affection and papered over the cracks on the war in Ukraine and a contentious trade pact.
Risk of โlost decadeโ as EU countries face economic cliff edge
Tighter rules and a halt in EU funding will leave capitals looking for cash.
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.
Jeremy Huntโs scorched earth budget
The UK chancellor is kicking every difficult decision beyond the general election.
France’s Le Maire ‘goes German’ with austerity budget
The French government announced โฌ10bn in further spending cuts. However, defence spending is set to increase significantly, up to โฌ413bn from โฌ295bn. โฌ400m was cut to a fund meant for renovating schools, carpooling infrastructure and other regional env…
France to cut spending by extra โฌ10B as growth forecast drops
“We earn less, we spend less,” says Finance Minister Bruno Le Maire.
Geert Wilders goes back to the drawing board
Far-right leader is still miles away from becoming Dutch PM after coalition talks hit the rocks.
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…
Mob of German farmers accosts top Green as protests escalate
Berlin slams ‘shameful’ incident as Robert Habeck is lambasted by demonstrators over spending cuts.
Party vote provides slight relief for Germanyโs troubled coalition
Members of the fiscally conservative Free Democrats voted to remain part of the three-party alliance, relieving some pressure on the government.
Germany aims to seize โฌ720 million of frozen Russian money
The initiative represents an escalation of Germanyโs efforts to sanction Russia โ as well as a potential windfall.
EU countries reach deal on national spending rules
Finance ministers sealed an agreement over a virtual conference after months of fraught negotiations.
German farmers reignite Berlinโs budget crisis
The coalition’s recent spending compromise is under threat as farmers take to the barricades.
Germany plans partial reform of its debt brake, Lindner says
Finance minister wants more flexibility for taking on debt in times when economy is struggling.
German government faces broad backlash for budget cuts
The German government has been heavily criticised for announcing a mix of spending cuts and tax rises to fill the โฌ60 billion hole in the countryโs โclimate and transformation fundโ left by a constitutional court ruling. On Wednesday, German Chancellor…
Brussels must trim โฌ13B from proposed budget increase, EU capitals say
More frugal member countries want the Commission to redeploy existing funds to pay for new priorities.
Scholz promises new budget plans โvery quicklyโ amid German spending crisis
Chancellor is still not signaling where Berlin can make cuts after a court ruling blew โฌ60 billion hole in the country’s budget.
EU gives France an โFโ grade on spending plans
High deficit puts Paris in breach of EU’s budget rules. Belgium, Finland and Croatia also singled out.
The accounting error that could kill Germanyโs coalition
Doubts over the survival of Germany’s three-way alliance after โฌ60 billion rebuke.
Rishi Sunak plots pre-election tax trap for Labour
Could the Conservatives derail Keir Starmer’s apparently smooth path to victory with a tax giveaway next year?
France ready to accelerate spending cuts as it battles persistent deficits
Finance minister Bruno Le Maireโs remarks come amid criticism of sluggish effort to curb government borrowing
McCarthy out as speaker
Itโs an unprecedented development that has loomed over the Californian since he took the gavel in January.
Franceโs 2024 budget walks tightrope as excessive deficit procedure looms
France’s 2024 budget treads a fine line, with green transition financing and the battle against inflation taking precedence over reducing public debt – though the high deficit raises fears the Commission may trigger an excessive deficit procedure.