PARIS: France’s government is to deliver its 2025 budget on Thursday with plans for 60 billion euros ($65.68 billion) worth of tax hikes and spending cuts to tackle a spiralling fiscal deficit.
Prime Minister Michel Barnier’s new government is under increasing pressure from financial markets and France’s European Union partners to take action after tax revenues fell far short of expectations this year and spending exceeded them.
But the budget squeeze, equivalent to two points of national output, has to be carefully calibrated to placate opposition parties, who could not only veto the budget bill but also band together and topple the government with a no-confidence motion.
Lacking a majority by a sizeable margin, Barnier and his allies in President Emmanuel Macron’s camp will have little choice but to accept numerous concessions to get the budget bill passed, which is unlikely before mid to late December.
The far-right National Rally, whose tacit support Barnier needs to survive any no-confidence motion, has already helped derail a government proposal to postpone a pension increase by six months to save 4 billion euros.
Members of Macron’s party are also loathe to see the president’s legacy of tax-cutting go up in smoke, with his former prime minister Gabriel Attal saying on Wednesday: “The budget is light on reforms and too heavy on taxes.”
Barnier has said he will spare the middle class and instead target big companies with a temporary surtax and people earning over half a million euros per year.
All taxpayers will nonetheless be hit by plans to restore a levy on electricity consumption to where it was before an emergency reduction during the 2022-2023 energy price crisis.
The government has said the budget bill will reduce the public deficit to 5 percent of gross domestic product (GDP) next year from 6.1 percent this year — higher than almost all other European countries — as a first step toward bringing the shortfall into line with an EU limit of 3 percent in 2029.
While tax hikes will make up one third of the 60 billion euro budget squeeze, the rest will come from spending cuts, with 20 billion cutting across France’s ministries and the rest hitting separate spending on welfare, health, pension and local government budgets.
France’s borrowing costs surged after Macron called a snap parliamentary election and his centrist party then lost to a left-wing alliance. Financial markets are likely to pay close attention to whether the budget can get through parliament without being watered down too much.
The budget will also face scrutiny from the European Commission, which has subjected France to an excessive deficit procedure for falling foul of the EU’s fiscal rules.
French government to present 2025 belt-tightening budget
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French government to present 2025 belt-tightening budget
- Budget squeeze aims to cut deficit to 5 percent of GDP next year
- Concessions likely to get budget through divided parliament
Toll from Russian strike on Odesa rises to seven
- Russia has targeted Ukraine’s coastal Odesa region throughout the war, hitting boats and grain silos
- Ukraine was one of the largest exporters of grain in the world before Russia’s invasion in February 2022
The attack on Wednesday struck a civilian container ship flying the flag of Panama, according to the region’s governor Oleg Kiper.
“Unfortunately, the death toll as a result of yesterday’s Russian missile attack has risen to seven,” Kiper wrote on social media Thursday.
“This morning, a 46-year-old port worker died in hospital. Medics did their best but his injuries were too severe,” he added.
Kiper had earlier said that the attack on the Black Sea port city was the third on a civilian vessel in four days.
Russia has targeted Ukraine’s coastal Odesa region throughout the war, hitting boats and grain silos in what Kyiv says is an illegal attempt to destroy its export capacity.
Ukraine was one of the largest exporters of grain in the world before Russia’s invasion in February 2022, but repeated attacks on its port and storage facilities have severely curbed its output.
The attack comes two days after a Russian missile hit a Palau-flagged ship in the port of Odesa, killing one person aboard, according to local authorities.
Hundreds gather to pay last respects to India’s iconic business tycoon Ratan Tata
- Although in recent years Tata was not as active in the day-to-day running of the group, he was consulted on big decisions by the Tata Sons leadership, a senior company executive told Reuters
NEW DELHI: Hundreds of people, including corporate leaders, politicians and celebrities, gathered in Mumbai on Thursday to pay their last respects to one of India’s most respected business tycoons, Ratan Tata, who died aged 86.
Known for his exemplary business acumen and philanthropic nature, as chairman he led various companies under the Tata conglomerate for more than 20 years, which had revenue of $165 billion in 2023-24.
Although in recent years Tata was not as active in the day-to-day running of the group, he was consulted on big decisions by the Tata Sons leadership, a senior company executive told Reuters.
Tata had been in a Mumbai hospital since Monday, but the cause of his death was not immediately made public.
After his death, tributes poured in from around the world, underlining his popularity that transcended boundaries and generations.
“India and the world have lost a giant with a giant heart,” US ambassador to India Eric Garcetti said on X.
“He ... was instrumental in mentoring and developing the modern business leadership in India. He deeply cared about making India better,” Google Chief Executive Sundar Pichai said.
Draped in the Indian national flag, Ratan Tata’s body was kept at a cultural center in Mumbai, and his funeral will be conducted later in the day with full state honors.
India’s central bank governor Shaktikanta Das, Tata Sons Chairman N. Chandrasekaran and Aditya Birla Group Chairman Kumar Mangalam Birla were among early visitors to pay their last respects to the Padma Vibhushan awardee — India’s second-highest civilian honor.
A licensed pilot who would occasionally fly the company plane, Tata never married and was known for his quiet demeanour, relatively modest lifestyle and philanthropic work.
“We will remember his legacy of transformative giving to Cornell,” his alma mater Cornell University said on X, calling Tata their most generous international donor.
Taiwan celebrates its National Day holiday against background of Chinese threats
- The celebration marks the establishment of the Republic of China, which overthrew the Qing Dynasty in 1911
- Taiwan was run under martial law until transitioning to full democracy in the 1980s and 1990s
TAIPEI: Taiwan celebrated its National Day holiday Thursday against the background of threats from China, which claims the self-governing island republic as its own territory.
The celebration marks the establishment of the Republic of China, which overthrew the Qing Dynasty in 1911 and fled to Taiwan as Mao Zedong’s Communists swept to power on the mainland during a civil war in 1949. Taiwan was run under martial law until transitioning to full democracy in the 1980s and 1990s but maintains the original constitution brought from China and the ROC flag.
President Lai Ching-te took office in May, continuing the eight-year rule of the Democratic Progressive Party that rejects China’s demand that it recognize Taiwan is a part of China. The Nationalists adhere to a unification stance that recognizes both sides of the Taiwan Strait as a single nation.
In a speech marking the holiday, Lai spoke of Taiwan’s technology achievements such as those driving the computer chips industry, calling it a “global force for prosperity and development.” He also praised athletes such as boxer Lin Yu-ting, who won gold at the Paris Olympics, and young people who have won prizes in international technical competitions.
Thursday’s commemorations included military displays, but no heavy military equipment as seen in years past. And it included performances with music and flag and athletic feats like flips and other stunts.
Addressing the threat from China, Lai took a firm but measured line while offering cooperation on areas from fighting infectious diseases to maintaining “regional peace and stability.”
“We hope that China will live up to the expectations of the international community, that it will apply its influence and work with other countries toward ending Russia’s invasion of Ukraine and end conflicts in the Middle East,” Lai said.
“And we hope that (China) will take up its international responsibilities and, along with Taiwan, contribute to the peace, security and prosperity of the region and the globe,” the president said.
Maintaining its military pressure on Taiwan, China’s People’s Liberation Army sent 15 planes across the median line in the Taiwan Strait, prompting Taiwan to scramble jets, dispatch ships and activate missile systems.
In response to such threats, Taiwan has ordered billions of dollars in fighter jets, tanks, missiles and various upgrades to existing gear from the US, while revitalizing its own defense industry with the production of submarines and other equipment aimed at deterring or fending off a Chinese attack.
At the same time, Taiwan faces economic threats from China ranging from a possible blockade of the trade-dependent island to an undermining of its financial system. China routinely states that Taiwan independence is a “dead end” and that annexation by Beijing is a historical inevitability.
Lai appeared to address such issues in his address, saying: “Finally, we must strengthen resilience throughout Taiwan in national defense, economic livelihoods, disaster prevention and democracy.”
New UK government closes in on major employment reform
- Since winning power in early July, Labour has acted swiftly to end drawn-out strikes by public- and private-sector workers over pay
LONDON: Britain’s new Labour government will on Thursday take a key step toward delivering major reforms to workers’ rights when it presents its employment bill to parliament, pitting unions against businesses.
Almost 100 days since Keir Starmer became prime minister following his Labour party’s landslide general election win, Britain gets to see the fine detail of the government’s proposed shakeup to employment legislation.
The bill contains key pre-election pledges, including a ban on zero-hours contracts, improvements to sick and maternity pay, and measures aimed at making it harder for employers to sack staff.
“The government will deliver on our promise to the British people of the biggest upgrade to workers’ rights in a generation,” Starmer told parliament Wednesday.
Since winning power in early July, Labour has acted swiftly to end drawn-out strikes by public- and private-sector workers over pay — notably among doctors in Britain’s free National Health Service (NHS).
“The Employment Rights Bill will ensure work pays, it’ll forge a new partnership with business, and reset the dreadful industrial relations that have cost our economy and our NHS so much in recent years,” Starmer added Wednesday.
Paul Nowak, leader of British umbrella organization the Trades Union Congress, said a fully delivered bill “will make work better for millions of working people.”
He added on the eve of the paper’s unveiling: “Increasing job security is good for workers and business. Treating staff well boosts productivity and living standards.”
But the main opposition Conservatives have warned the proposals amount to business-constricting “French-style union laws.”
Tina McKenzie, whose organization represents millions of UK businesses, warned that “adding to the risks and costs associated with employing people would make small employers think twice about whether and who to hire.”
“Done wrongly, this bill could damage growth, wages and jobs,” added McKenzie, policy chair at the Federation of Small Businesses.
The bill’s publication comes ahead of Labour’s maiden budget on October 30, when finance minister Rachel Reeves is widely expected to announce tax rises.
Labour says tough measures are needed and claims that the Tories left it with a financial hole totaling £22 billion ($29 billion).
Former US president Barack Obama hits campaign trail for Kamala Harris
- America’s first Black president is hitting the campaign trail in the steel city of Pittsburgh
- Obama’s trip to Pennsylvania is the first stop in what will be a month of campaigning for Harris
WASHINGTON: Former US president Barack Obama will bring his star power to Kamala Harris’s election campaign Thursday in a bid to get out the vote in the critical swing state of Pennsylvania.
America’s first Black president is hitting the campaign trail in the steel city of Pittsburgh a day after Harris’s Republican rival Donald Trump charged through the must-win state.
The still hugely influential Democrat will be urging people to vote early in person or by mail as Harris looks to lock in as many votes as she can in a nail-biting race.
Trump rallied on Wednesday in President Joe Biden’s childhood hometown of Scranton, Pennsylvania and will head on Thursday to the auto industry capital of Detroit in Michigan, another battleground.
Wooing blue-collar voters in the former coal mining town of Scranton, Trump vowed to “drill, baby, drill” for oil and assailed Harris on the economy.
Harris will head to yet another swing state, Nevada, to reach out to Latino voters but the White House said she would be kept informed throughout the day about Hurricane Milton.
The monster hurricane crashed into Florida late Wednesday with Biden warning that it could be the “storm of the century.”
Obama’s trip to Pennsylvania is the first stop in what will be a month of campaigning for Harris in the seven swing states where the 2024 election is likely to be decided.
The White House race remains neck-and-neck between Harris and Trump both nationally and in the battleground states, including Pennsylvania.
Harris’s campaign is counting on Obama, 63, who was president from 2009 to January 2017, to mobilize Black and young voters as she seeks the edge on November 5.
But Obama’s main message on Thursday will be to drive home the early voting message in an agonizingly close race.
Democrats have historically favored early voting over Republicans.
Trump has meanwhile frequently lashed out against anything except on-the-day voting, repeatedly blaming mail-in ballots for his 2020 defeat by Joe Biden, which he still refused to accept.
The Republican himself has also sometimes called early voting into question, despite efforts by his campaign to promote it.
“President Obama believes the stakes of this election could not be more consequential and that is why he is doing everything he can to help elect Vice President Harris,” Obama’s senior adviser Eric Schultz said in a statement.
Obama and former first lady Michelle Obama delivered rapturously received speeches backing Harris at the Democratic National Convention in his hometown of Chicago in August.
He portrayed Harris — America’s first woman, Black and South Asian vice president — as the political heir to his own trailblazing path.
Obama led the crowd in chants of “Yes she can” — a riff on the “Yes he can” chants from his own 2008 campaign — but warned that 2024 would “still be a tight race in a closely divided country.”
The ex-president has also pulled in more than $76 million for the Democratic ticket in this year’s presidential race.
The ex-president endorsed Harris, 59, after Biden dramatically dropped out of the White House race in July.
