Connect with us

World

State of the Union: Zelenskyy's attempts to drum up new support

Published

on

State of the Union: Zelenskyy's attempts to drum up new support

This edition of State of the Union focuses on the crucial visit of Ukrainian president Volodymyr Zelenskyy to the U.S., the latest economic forecast by the EBRD and attempts to support the struggling German car industry.

For weeks now, Europe is anxiously looking at its number one economic powerhouse, Germany – to be more precise: at the country’s ailing car manufacturers, some of Germany’s industrial pillars.

A serious car crisis in the Federal Republic, triggered by a quasi-collapse of the electrical vehicle market, could have severe consequences elsewhere in the EU.

Threats of historic job cuts, plant closures at Volkswagen and plunging earnings at Mercedes-Benz and BMW prompted emergency talks at Berlin’s economy ministry this week.

But given strained federal finances and fights with China over tariffs, the government’s toolbox is rather empty.

Advertisement

Nonetheless, economy minister Robert Habeck expressed his willingness to help but excluded quick fixes: “Everyone has said that planning is the most important thing. And that means long-term planning. Not a flash-in-the-pan action, because this only has the effect of pumping up the market again in the short term and then possibly collapsing again.”

Germany is in the uncomfortable position today to be forced to re-orient its entire manufacturing sector that depended on cheap Russian energy.

You can already hear Ukraine’s president Zelenskyy shouting: “I told you so!”

Zelenskyy was at the United Nations this week to drum up support for what he called his “victory plan”.

He also reacted to pleas from the European far-left and far-right to negotiate with Russia:

Advertisement

“We know some in the world want to talk to Putin. We know it. To meet, to talk, to speak. But what could they possibly hear from him? That he’s upset because we are exercising our right to defend our people, or that he wants to keep the war and terror going just so no one thinks he was wrong.”

How the Ukrainian economy keeps suffering from the war was detailed this week by the latest outlook from the European Bank for Reconstruction and Development.

The EBRD covers not only Ukraine, but large parts of eastern Europe and central Asia. The bank’s findings are an important bellwether for the global economy.

We spoke to Beata Javorcik, the chief economist of the EBRD.

Euronews: So, your latest Regional Economic Prospects report is called “Along the adjustment path” – that sounds like a friendly way of saying “It’s disappointing”. What do the economies you invest in need to adjust to?

Advertisement

Javorcik: Well, the situation in Europe remains quite challenging. We continue to have very high prices of energy. Particularly the price of natural gas is five times as high as in the US. The demand for exports, particularly from Germany, is muted. Given the difficult situation of the German economy and, finally, the costs of borrowing continue to be high, there is this extra risk premium, this extra interest rate. Countries in the regions had to pay when the war in Ukraine started. And this risk premium continues to be there.

Euronews: On the upside are a decline in inflation and an increase in real wages. What exactly happened?

Javorcik: Well, by historical standards we have seen a very fast disinflation process, though of course the adjustment is not done yet. Inflation remains above the pre-COVID level, but on the positive side we have managed to avoid a hard landing. So, this fight with inflation has come without very big unpleasant effects in terms of unemployment. As the inflation episode started, we saw a big decline in real wages, but then real wages started catching up. That was visible in the last few months in the last year. They are not yet back to the pre-COVID trend, but they have certainly caught up in a significant way.

Euronews: I guess there are still some remaining inflationary pressures – what are they?

Javorcik: Inflation still remains high in some countries, such as Turkey or Egypt, still in high double digits. And depreciation of domestic currencies, which has made imports more expensive, has contributed to further inflation.

Advertisement

Euronews: One country is still in the spotlight: Ukraine. How are they coping with the ongoing war economically?

Javorcik: Well, despite the war early this year, so in the first quarter, Ukrainian economy managed to grow very fast. The bleak Black Sea corridor allowed Ukraine to export grain as well as metals and ores. But then this heavy bombing and destruction of electricity infrastructure happened. And that made the situation very difficult. There are rolling blackouts. There are shortages of electricity. The country is importing electricity from Europe, but it comes at a higher cost. And that’s weighing down on the economy.

World

Trump says nations doing business with Iran face 25% tariff on US trade

Published

on

Trump says nations doing business with Iran face 25% tariff on US trade
  • Iran facing its biggest anti-government protests in years
  • Trump has used leverage of tariffs throughout his second term against many nations
  • Trump weighs further options on US action against Iran
WASHINGTON, Jan 12 (Reuters) – President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25% on any trade with the U.S., as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump said in a post on Truth Social.

Sign up here.

Tariffs are paid by U.S. importers of goods from those countries. Iran, a member of the OPEC oil producing group, has been heavily sanctioned by Washington for years. It exports much of its oil to China, with Turkey, Iraq, the United Arab Emirates and India among its other top trading partners.

“This Order is final and conclusive,” Trump said without providing any further detail.

There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran’s trading partners. The White House did not respond to a request for comment.

The Chinese embassy in Washington criticized Trump’s approach, saying China will take “all necessary measures” to safeguard its interests and opposed “any illicit unilateral sanctions and long-arm jurisdiction.”

Advertisement

“China’s position against the indiscriminate imposition of tariffs is consistent and clear. Tariff wars and trade wars have no winners, and coercion and pressure cannot solve problems,” a spokesperson of the Chinese embassy in Washington said on X.

Japan and South Korea, which agreed on trade deals with the U.S. last year, said on Tuesday they are closely monitoring the development.

“We … plan to take any necessary measures once the specific actions of the U.S. government become clear,” South Korea’s trade ministry said in a statement.

U.S. President Donald Trump looks on as he signs executive orders and proclamations in the Oval Office at the White House, in Washington, D.C., U.S., May 5, 2025. REUTERS/Leah Millis/File Photo Purchase Licensing Rights, opens new tab

Japan’s Deputy Chief Cabinet Secretary Masanao Ozaki told reporters that Tokyo will “carefully examine the specific content of any measures as they become clear, as well as their potential impact on Japan, and will respond appropriately.”

Iran, which had a 12-day war with U.S. ally Israel last year and whose nuclear facilities the U.S. military bombed in June, is seeing its biggest anti-government demonstrations in years.
Trump has said the U.S. may meet Iranian officials and that he was in contact with Iran’s opposition, while piling pressure on its leaders, including threatening military action.

Tehran said on Monday it was keeping communication channels with Washington open as Trump considered how to respond to the situation in Iran, which has posed one of the gravest tests of clerical rule in the country since the Islamic Revolution in 1979.

Advertisement

Demonstrations evolved from complaints about dire economic hardships to defiant calls for the fall of the deeply entrenched clerical establishment. U.S.-based rights group HRANA said it had verified the deaths of 599 people – 510 protesters and 89 security personnel – since the protests began on December 28.

While air strikes were one of many alternatives open to Trump, “diplomacy is always the first option for the president,” White House press secretary Karoline Leavitt said on Monday.

During the course of his second term in office, Trump has often threatened and imposed tariffs on other countries over their ties with U.S. adversaries and over trade policies that he has described as unfair to Washington.

Trump’s trade policy is under legal pressure as the U.S. Supreme Court is considering striking down a broad swathe of Trump’s existing tariffs.

Iran exported products to 147 trading partners in 2022, according to World Bank’s most recent data.

Advertisement

Reporting by Kanishka Singh, Trevor Hunnicutt and Bhargav Acharya; Editing by Don Durfee, Lincoln Feast and Stephen Coates

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Continue Reading

World

Cuba’s president defiant, says no negotiations scheduled as Trump moves to choke off oil lifeline

Published

on

Cuba’s president defiant, says no negotiations scheduled as Trump moves to choke off oil lifeline

NEWYou can now listen to Fox News articles!

Cuban President Miguel Díaz-Canel declared Monday that his administration is not negotiating with Washington, despite President Donald Trump’s threats to push Cuba into a deal now that Venezuelan oil will no longer be supplied.

“There are no conversations with the U.S. government, except for technical contacts in the migration field,” Díaz-Canel said in a post on X.

Díaz-Canel continued to denounce the U.S., accusing it of applying hostile pressure on the island, and insisted that negotiations would only take place if they are conducted in accordance with international law.

“As history demonstrates, relations between the U.S. and Cuba, in order to advance, must be based on International Law rather than on hostility, threats, and economic coercion,” he said.

Advertisement

TRUMP ADMIN TO CONTROL VENEZUELAN OIL SALES IN RADICAL SHIFT AIMED AT RESTARTING CRUDE FLOW

Cuba President Miguel Diaz-Canel walks through the COP28 U.N. Climate Summit, Saturday, Dec. 2, 2023, in Dubai, United Arab Emirates. (Peter Dejong/AP Photo)

“We have always been willing to engage in a serious and responsible dialogue with the various governments of the United States, including the current one, on the basis of sovereign equality, mutual respect, principles of International Law, reciprocal benefit without interference in internal affairs and with full respect for our independence,” Canel added. 

On Sunday, Trump declared that Cuba would no longer receive oil or money from Venezuela, a move that would sever Havana’s longtime energy and financial lifeline. 

The announcement came after a stunning Jan. 3 operation in Venezuela, in which American forces captured President Nicolás Maduro and reportedly killed at least 32 Cuban personnel.

Advertisement

VENEZUELAN OIL SHIPMENTS SURGE TO US PORTS WITH HEAVY CRUDE AFTER MADURO CAPTURE

President Donald Trump (left) led a military operation on Jan. 3 that led to the capture of Venezuelan leader Nicolas Maduro (right). (Joe Raedle/Getty Images; Gaby Oraa/Getty Images)

“THERE WILL BE NO MORE OIL OR MONEY GOING TO CUBA – ZERO! I strongly suggest they make a deal, BEFORE IT IS TOO LATE,” he warned.

Cuba has long depended on imported oil to keep its aging power grid running. Before the U.S. attack on Venezuela, Havana was receiving 35,000 barrels a day from Venezuela, roughly 7,500 from Russia and some 5,500 barrels daily from Mexico, The Associated Press reported, citing Jorge Piñón of the Energy Institute at the University of Texas at Austin, who tracks the shipments.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Advertisement

Cuban President Miguel Diaz-Canel attends a rally in Havana, Cuba, Saturday, Jan. 3, 2026, in solidarity with Venezuela after the U.S. captured President Nicolás Maduro and flew him out of Venezuela.  (Ramon Espinosa/AP Photo)

Even with Venezuelan oil imports, Cuba has suffered widespread blackouts in recent years due to persistent fuel shortages, an aging and crumbling electric grid and damage from hurricanes that have battered the island’s infrastructure.  

Now, with U.S. sanctions tightening on both Russian and Venezuelan oil, blackouts could worsen as Havana’s leaders reject Trump’s call to strike a deal. 

The Associated Press contributed to this report.

Advertisement
Continue Reading

World

Syrian army sends troops to rural Aleppo to stop any SDF attempt to regroup

Published

on

Syrian army sends troops to rural Aleppo to stop any SDF attempt to regroup

The SDF denies the Syrian Ministry of Defence’s accusations that it had deployed military forces to the Deir Hafer front in the eastern Aleppo countryside.

Advertisement

The Syrian army has sent reinforcements to rural eastern Aleppo, after observing the arrival of more Syrian Democratic Forces (SDF) forces in the area, following days of deadly battles inside the city itself and the departure of the SDF.

The official news agency SANA broadcast footage on Monday of Syrian army troops heading towards the deployment line east of Aleppo.

Recommended Stories

list of 4 itemsend of list

SANA quoted the Syrian Army Operations Authority as saying: “We have observed the arrival of more armed groups to the deployment points of the SDF organisation in the eastern Aleppo countryside near Maskana and Deir Hafer.”

The agency added: “According to our intelligence sources, these new reinforcements included a number of fighters from the Kurdistan Workers’ Party (PKK),” which last year began withdrawing all its forces from Turkiye to northern Iraq as part of a peace process with Turkiye, bringing an end to a months-long disarming process following a four-decade armed conflict that killed tens of thousands of people.

Advertisement

The SDF denied the Syrian Ministry of Defence’s accusations that it had deployed military forces to the Deir Hafer front in the eastern Aleppo countryside.

It said there were no unusual movements or preparations in the area, adding that the gatherings that took place were limited to civilians from northern and eastern Syria to receive the wounded from the Sheikh Maqsoud and Ashrafieh neighbourhoods in the city of Aleppo.

Residents return after battles

Syrian government forces on Monday were carrying out security sweeps in the city of Aleppo.

As some residents displaced by the fighting began returning to their areas, army forces were working to remove explosive devices and weapons in other parts.

Residents of Ashrafieh, the first of the two neighbourhoods to fall to the Syrian army, began returning to their homes to inspect the damage, finding shrapnel and broken glass littering the streets on Sunday.

Advertisement

“Most people are returning to Ashrafieh, and they have begun to rebuild as there has been a lot of destruction,” said Al Jazeera’s Bernard Smith, reporting from Aleppo.

He added that this was not the case for Sheikh Maqsoud, where government forces were still searching for explosives.

Smith added that Syrian forces were also looking for opposition prisoners arrested by the SDF during the rule of former leader Bashar al-Assad, who was overthrown in December 2024 by forces led by the current president, Ahmed al-Sharaa.

United States envoy Tom Barrack met al-Sharaa on Saturday and afterwards issued a call for a “return to dialogue” in accordance with the integration agreement.

The departure of the fighters marks the removal of SDF from pockets of Aleppo, which it has held since Syria’s war began in 2011.

Advertisement

Syrian health authorities said on Sunday at least 24 civilians have been killed and 129 wounded in SDF attacks since last Tuesday.

Munir al-Mohammad, media director at Aleppo’s health directorate, said the casualties were caused by repeated attacks targeting civilian areas, according to SANA.

The United Kingdom-based monitor, the Syrian Observatory for Human Rights, which follows the developments in Syria through a network of sources on the ground, reported that 45 civilians were killed along with 60 soldiers and fighters from both sides.

Continue Reading

Trending