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Europeans €3,000 poorer per year after financial crisis, report claims

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Europeans €3,000 poorer per year after financial crisis, report claims

European residents may have misplaced out on practically €3,000 a yr due to the austerity measures applied by EU governments for the reason that 2007 monetary disaster, a brand new report has claimed.

The research by the New Economics Basis (NEF) and Finance Watch launched on Friday additionally claimed that EU nations may have been spending as much as €1,000 extra yearly per individual on public providers if much less harsh cutbacks had been utilized.

The information comes at a time when EU states are racking up ranges of debt unseen throughout fashionable peacetime to mitigate the COVID-19 pandemic and results of the warfare in Ukraine.

Frank Van Lerven, programme lead of macro-economics at NEF, mentioned austerity measures have been a failure.

“The final decade of austerity insurance policies has broken European economies and stopped our dwelling requirements from bettering,” Van Lerven mentioned.

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“An obsession with debt and deficit discount neither boosts financial progress nor retains debt low. As a substitute, austerity has held European nations again from their potential.”

After the monetary disaster, Brussels launched fiscal guidelines for presidency borrowing and spending that have been stricter — the concept being to cut back nationwide debt. This was performed by cuts to public spending and funding.

However because the pandemic hit, the EU suspended these guidelines – often known as the Stability and Development Pact (SGP) – to permit nations extra flexibility in dealing with the financial fallout.

The analysis from the New Financial Basis discovered that earlier austerity measures have left Europe extra susceptible to financial shocks from COVID-19 and the disaster sparked by the warfare in Ukraine.

If the cuts had not been so extreme, it says €533 billion would have been out there for EU governments to spend on infrastructure tasks, together with inexperienced ones, which the research says may have helped cushion the influence of spikes in vitality costs.

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However Antonios Nestoras, interim govt director of the European Liberal Discussion board, instructed Euronews the findings of the report don’t give a balanced perspective and fail to take different vital elements into consideration, including that public spending ranges can solely be successfully managed as soon as a basis of wealth in society is generated.

“We have to create wealth. We have to give residents a degree enjoying discipline, the firms a degree enjoying discipline to create wealth,” Nestoras defined.

“We have to create sensible rules to be able to assist innovation, analysis, growth, trade, know-how. These are the issues that we needs to be focussing on after which we are able to play with public spending ranges and attempting to manage inflation and attempting to create macroeconomic stability based mostly on public spending and so forth.

“So long as we’re not focusing our efforts on creating wealth, the place is the cash going to come back from? It is a query that’s not answered by this report and by public insurance policies basically.”

‘A long run strategy’

The European Fee will current plans subsequent Wednesday on its new fiscal pointers as soon as the suspension of the Stability and Development Pact is concluded on the finish of 2023.

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In the intervening time, the proposals are being saved below wraps, however for Sebastian Mang, a senior marketing campaign officer at NEF, spending guidelines have to be relaxed sooner or later.

“Amid the COVID-19 disaster, the European Fee was authorised to borrow from monetary markets for the primary time to fund its response,” Mang instructed Euronews.

“However quite than counting on advert hoc responses to every new disaster, what Europe wants past 2024 is a long-term strategy that’s match for objective. Austerity economics was a failed experiment. Low ranges of gross home product (GDP) progress led to a fall in tax intakes for governments, rising authorities debt.

“Nationwide governments needs to be empowered to spend money on public providers, corresponding to well being and training and in slicing carbon emissions. For its half, the European Fee needs to be geared up to assist nationwide spending by European borrowing.”

Nestoras, then again, mentioned a steadiness have to be discovered in relation to EU fiscal guidelines.

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“We’ve got to search out the suitable steadiness in these issues,” he instructed Euronews. “The true politics is discovering the suitable steadiness, the golden ratio between opposing forces, opposing political and ideological forces. I’ve belief that the system that now we have created in Europe will discover a compromise between the 2.”

The NEF and Finance Watch research argues as effectively that nations which pursued larger austerity and public spending cuts, corresponding to Greece and Italy, in truth, ended up with larger authorities debt ranges.

Disparities have been additionally discovered within the influence measures had on disposable revenue. German wages solely dropped by 1% in comparison with earlier than the monetary disaster, whereas in Eire and Spain, among the hardest hit nations, common incomes fell by 29% and 25%.

Berlin, often known as one of the crucial frugal EU member states, was a essential proponent of austerity and cutbacks on the time.

It has not too long ago been in a position to afford a €200 billion assist package deal to assist German individuals and companies by the present vitality disaster, a lot to the annoyance of different member states that can’t afford to take action on such a big scale.

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Polling included within the report discovered that 70% of persons are involved by what would possibly occur if austerity is reintroduced. On the identical time, 70% of respondents additionally reported concern about rising authorities debt.

Nevertheless, one factor individuals requested have been sure about was the necessity to make investments additional in very important public providers like training, well being and social care.

Knowledge from the NEF and Finance Watch report got here from Eurostat and citizen polling was performed by Censuswide.

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Gabon votes in referendum on new constitution after military coup last year

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Gabon votes in referendum on new constitution after military coup last year

Transitional leader urges voters to back draft charter, which proposes changes that include presidential term limits.

Gabon is voting in a referendum on whether to adopt a new constitution that would pave the way to democratic rule after the military deposed President Ali Bongo Ondimba last year, ending 55 years of rule by his family in the oil-rich nation.

An estimated 860,000 registered voters were expected to cast their ballots on Saturday on the draft charter, which proposes sweeping changes in the Central African nation that could prevent dynastic rule and sets presidential term limits.

The proposed constitution needs more than 50 percent of votes to be adopted.

“We have a date with history,” General Brice Oligui Nguema, the transitional president who led the coup last year, said in a post on social media platform X alongside a photo of him in civilian dress and baseball cap, with a voting card in his hand.

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Nguema has been urging voters to support the new constitution, which he says embodies the military government’s commitment to charting a new course for Gabon.

He has promised to hand power back to civilians after a two-year transition but has made no secret of his desire to win the presidential election scheduled for August 2025.

The referendum is seen as a crucial first step as the country seeks to transition to democracy since Bongo’s ouster in August 2023. He had governed since 2009, taking over the presidency from his father, Omar, who died that year after ruling the country since 1967.

Bongo was overthrown moments after being proclaimed the winner in an election the army and opposition declared fraudulent.

A new constitution would introduce two-term limits on the presidency, remove the position of prime minister and recognise French as Gabon’s working language. It also says family members cannot succeed a president.

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The presidential term would be set at seven years. The current charter allows for five-year terms renewable without limit.

Nathalie Badzoko, a 33-year-old civil servant, told the AFP news agency that she was voting “yes” and had faith in the military government, but admitted she had “not read the whole text” and its 173 articles.

Opponents dismissed the draft charter as tailor-made for a strongman to remain in power.

“We are creating a dictator who designs the constitution for himself,” lawyer Marlene Fabienne Essola Efountame said during a debate last Sunday, organised by state television.

Nguema, the interim leader, is a cousin of Bongo. He had served as a bodyguard to Bongo’s father and also headed the Gabonese Republican Guard, an elite military unit.

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Voting began late at several polling stations in the capital, Libreville, including at the Lycee Leon M’Ba school where green – for yes – and red – for no – ballot papers were still being handed out when the polls opened at 7am (06:00 GMT), according to AFP.

The country’s 2,835 polling stations are due to remain open until 6pm (17:00 GMT).

The final results will be announced by the constitutional court, the Interior Ministry said.

The former French colony is a member of the Organization of the Petroleum Exporting Countries (OPEC), but its oil wealth is concentrated in the hands of a few. Nearly 40 percent of Gabonese aged 15 to 24 were out of work in 2020, according to the World Bank.

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Video: Māori Haka Protest Erupts in New Zealand Parliament

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Video: Māori Haka Protest Erupts in New Zealand Parliament

new video loaded: Māori Haka Protest Erupts in New Zealand Parliament

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transcript

Māori Haka Protest Erupts in New Zealand Parliament

Member of Parliament Hana-Rawhiti Maipi-Clarke led the ceremonial performance of Māori culture, tearing up a controversial bill as other lawmakers joined her in protest.

Oh, oh don’t do that. The House is – The House is suspended until a ringing of the bells. The gallery is to be cleared.

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International video coverage from The New York Times.

International video coverage from The New York Times.

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Ukrainian troops train for trench warfare near France's WWI battlefields

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Ukrainian troops train for trench warfare near France's WWI battlefields

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Soldiers scramble through trenches under a haze of yellow smoke, machine gunfire booms across the fields, invisible drones buzz overhead and voices scream in Ukrainian “Watch out!”

The scene could be 1,860 miles away in Ukraine’s Donbas region, but instead some 2,000 Ukrainian conscripts and veterans are training in the muddy fields of France’s eastern Marne region, where French and German armies once hammered each other during World War I. 

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The initiative is part of a European Union-funded program that has already prepared 60,000 Ukrainians for the front lines since Russia invaded Ukraine in 2022. 

For this training, the French military has tried to recreate the conditions faced by the Ukrainian forces back home, while training them on the equipment that France is providing.

A training session involving some 2,000 Ukrainian conscripts and veterans takes place in the muddy fields of the Champagne military camp in eastern France, Thursday. (Reuters/John Irish)

This includes 128 armored vehicles for troop movements and reconnaissance, Caesar howitzers, anti-tank missile units, surface-to-air missiles and battlefield radars. 

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The Anne of Kyiv brigade – named after a princess who married French King Henri I in 1051 in nearby Reims cathedral – has been training in France since September, and in the next 10 days will head to Poland before being dispatched to the front.

French officials say Ukraine needs as many as 15 new highly trained, battle-ready brigades, especially amid uncertainty over future Western military aid following the victory of Donald Trump – a strong critic of such aid – in the U.S. elections.

‘WAR FOR OUR EXISTENCE’

Most of the Ukrainians being trained here only joined the army a month before coming to France, while about 10% are veterans. Their average age is 38, but some are as old as 50.

Those who spoke to Reuters sounded apprehensive but determined to defend their country.

“Fear is part of war. For us, it’s a war for our existence and survival,” said Ukrainian Col. Dmytro Rymschyn, 38, who heads the Anne of Kyiv brigade. 

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“We will soon go back to our native land and our brigade will show its competence. I believe in our victory.”

Mykhailo, 50, who left a chemical factory to join the army, was trained to lead an AMX light tank squadron.

When asked whether he hoped the war could end by year-end, he smiled awkwardly: “The hope is that it finishes before we have to go back.”

French officials said the current trainees, despite many being civilians, were learning quickly and were showing how Ukraine’s army can adapt despite shortages on the ground. 

After nine weeks of training, the Ukrainians were now able, for example, to repel an attack on their trenches and to mount a counter-attack.

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French Defense Minister Sebastien Lecornu told reporters France hoped to prepare more such troops in coming months.

“There is a certain human element to all of this,” he added. “There is an exchange with people here who in several weeks will be in a combat situation on the frontline and some of them may well lose their lives.”

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