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Eurozone surprises by avoiding contraction in last quarter of 2022

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Eurozone surprises by avoiding contraction in last quarter of 2022

The eurozone continued defying the percentages by displaying financial development within the final quarter of 2022, a interval by which most analysts and buyers anticipated to see a contraction.

The 20-strong bloc grew by an especially modest 0.1% price throughout final 12 months’s fourth quarter in comparison with the earlier quarter, the place it had expanded by 0.3%, in accordance with preliminary figures launched by Eurostat on Tuesday morning.

This implies an estimated 3.5% development price for your complete 12 months.

“Excellent news: the euro space prevented a contraction within the final quarter of 2022,” Paolo Gentiloni, European Commissioner for the financial system, stated on Twitter.

“We proceed to face a number of challenges however the outlook for this 12 months appears to be like just a little brighter at the moment than within the autumn.”

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The event confirms a rising pattern of optimism that’s progressively pushing away the spectre of a much-dreaded recession brought on by Russia’s battle in Ukraine, the vitality disaster and hovering inflation.

The Worldwide Financial Fund, J.P. Morgan and Goldman Sachs have in current weeks revised upwards their 2023 forecasts for the eurozone, reflecting the bloc’s resilience within the face of an unprecedented financial panorama.

‘Not horrible, however not good both’

A technical recession is outlined as two consecutive quarters of financial contraction, though different components, corresponding to employment, salaries and international funding, could be considered earlier than making the ultimate designation.

The eurozone has not registered a adverse quarter since early 2021 when a brand new wave of COVID-19 infections and lockdown restrictions pushed the bloc right into a double-dip recession.

“We have been all very pessimistic after the summer time as a result of gasoline costs went via the roof after Russia minimize off gasoline exports to Europe. All people was forecasting a really tough time through the winter,” Grégory Claeys, a senior fellow at Bruegel, a Brussels-based economics assume tank, informed Euronews after the discharge of the GDP knowledge. 

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Sturdy underground gasoline storage, purchases of non-Russian liquefied pure gasoline (LNG), continued fiscal assist, EU-wide energy financial savings plans and a milder-than-usual winter have labored collectively to cushion probably the most devastating impression of the vitality disaster, Claeys famous, together with the dreaded state of affairs of necessary gasoline rationing and mass industrial shutdowns.

However uncertainty remains to be excessive, as Russia exhibits no indicators of stopping the invasion of Ukraine any time quickly. Moreover, the continent faces the onerous job of re-filling its underground storage with none Russian gasoline earlier than subsequent winter arrives.

“It is not horrible, nevertheless it’s not good both,” Claeys stated.

Germany contracts

Nation by nation, the Eurostat figures present a combined image throughout the eurozone: Belgium (0.1%), Spain (0.2%), France (0.1%), Latvia (0.3%) and Portugal (0.2%) are amongst those that recorded optimistic, albeit restricted, development charges.

Alternatively, Italy (–0.1%), Lithuania (–1.7%) and Austria (–0.7%) contracted. 

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Germanys, the bloc’s industrial powerhouse, posted a worse-than-expected adverse price (–0.2%) following a number of quarters of average development.

The decline was linked to a drop in client spending attributable to persistently excessive inflation.

Eire remained the best-performing nation, with a formidable 3.5% price within the fourth quarter.

Eire’s GDP statistics have been criticised by some economists as deceptive and out-of-touch as a result of they’re closely influenced by international funding from multinationals looking for to profit from the nation’s infamous low-tax system.

“The eurozone’s determine is biased by Eire’s,” Claeys stated. “Possibly with out Eire’s quantity, the eurozone would have posted adverse development within the final quarter of 2022.”

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Russia and Ukraine to hold first direct peace talks in over 3 years

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Russia and Ukraine to hold first direct peace talks in over 3 years
Russian and Ukrainian negotiators will meet in Istanbul on Friday for their first peace talks in more than three years as both sides come under pressure from U.S. President Donald Trump to end Europe’s deadliest conflict since World War Two.
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Melania Trump statue sawed off at the ankles and stolen in Slovenia

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Melania Trump statue sawed off at the ankles and stolen in Slovenia

A bronze statue of Melania Trump was sawed off at the ankles and stolen this week in the first lady’s native Slovenia, police said. 

The statue replaced a wooden one that was erected near her hometown of Sevnica in 2020 at the end of President Donald Trump’s first term after it was targeted in an arson attack. 

Both statues were a collaboration between Brad Downey, an artist from Kentucky, and a local craftsman, Ales “Maxi” Zupevc. 

The original figure, made of wood and cut from the trunk of a linden tree, portrayed the first lady in a pale blue dress, similar to the one she wore at Trump’s 2016 inauguration.

FIRST LADY MELANIA TRUMP TURNS 55: HER LIFE IN PHOTOS, FROM SLOVENIA TO WHITE HOUSE

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A bronze statue of Melania Trump was sawed off at the ankles and stolen this week in the first lady’s native Slovenia, police said.  (Associated Press)

The new statue was placed on the same stump as the old one and modeled after the previous design. In July 2020, Downey said the statue would be made “as solid as possible, out of a durable material which cannot be wantonly destroyed,” according to The Guardian.

Slovenian police spokesperson Alenka Drenik Rangus said Friday that police were investigating after the vandalism and theft were reported Tuesday. 

Franja Kranjc, a worker at a bakery that sells cakes with the first lady’s name in support of her, told The Associated Press the rustic likeness wasn’t well liked. 

Stump left after Melania Trump statue removed

Only the ankles remain of a Melania Trump statue that was sawed off and stolen, Slovenian police said.  (AP Photo/Relja Dusek)

WHITE HOUSE PRESS SECRETARY SAYS STATUE OF LIBERTY GOING NOWHERE, REPLIES TO FRENCH POLITICIAN

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“I think no one was really proud at this statue, not even the first lady of the USA,” Kranjc said. “So, I think it’s OK that it’s removed.”

Zupevc said he and Melania Trump were born in the same hospital, which partly inspired him to create the design. He carved the statue with a chainsaw and sanded it with a power tool. 

Melania Trump in Capitol

The statue was a rustic likeness of the first lady.  (Getty Images)

“I plugged in my angle grinder. … I worked and made mistakes … finished the hair … the eyes and all. Then, I called my brother, who said, ‘Spitting image of our waitress.’ And so it was,” Zupevc said during a documentary film by Downey on the making of the original statue.

A plaque next to the statue says it is “dedicated to the eternal memory of a monument to Melania which stood at this location.”

Born Melanija Knavs in nearby Novo Mesto in 1970, the first lady grew up in Sevnica while Slovenia was part of the Communist-ruled former Yugoslavia. An Alpine nation of 2 million people, Slovenia is now a member of the European Union and NATO.

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The Associated Press contributed to this report. 

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Commissioner Hansen presents plan to cut farming bureaucracy in EU

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Commissioner Hansen presents plan to cut farming bureaucracy in EU
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European Commissioner for Agriculture Christophe Hansen presented his simplification plan for the agricultural sector during a meeting organised by Euronews.

The European Commission unveiled the plan, which aims to simplify the European Union’s agricultural rulebook, on Wednesday in Brussels.

The measures are designed to reduce what the Commission sees as unnecessary administrative burdens in implementing the Common Agricultural Policy (CAP), the EU’s farming subsidy framework.

Hansen believes the proposed strategy should serve all stakeholders. The plan, therefore, aims to reduce the administrative burden for farmers and member states.

“What is felt to be an administrative burden on the farm is not only the CAP (Common Agricultural Policy), but also environmental legislation, health legislation, and often national or regional legislation, so I think that everyone must contribute to reducing this bureaucracy,” Hansen explained.

This simplification plan could potentially save farmers up to €1.58 billion a year and the national authorities €210 million. The package of measures is aimed in particular at organic farming and small farms, which play an essential role in rural areas’ economic activity.

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The plan proposes exemptions from environmental rules, also known as conditionalities. Hansen points out that this package aims not to reform the sector, but to adjust certain rules.

For example, Hansen said, “If grassland remains in place for more than five years, it becomes permanent grassland. This is a devaluation of this farmland because it can no longer be used as arable land. After four years or so, farmers plough to preserve this status.”

“For me, it’s more valuable if the grass stays for seven years rather than five. So this is environmental progress. It’s the applicability (of the rules) that changes,” he added.

Flexibility and financial support

The European Commission also wants to help small farmers obtain financial aid and make their farms more competitive. The institution is considering an offer of up to €50,000.

Hansensuggested digitalising the sector, mentioning, for example, a digital portfolio to facilitate checks.

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“I, as a farm, have my digital wallet and if the water authority needs to know something about my land, they can turn to that wallet,” Hansen explained.

Hansen further reiterated his desire to make the profession attractive again and to help professionals.

“It’s very important that we reduce the stress on our farmers, because at the moment it all depends on the Member State. They have to deal with five, six, seven controls a year, which causes enormous stress for our farmers,” Hansen insisted.

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“That’s why we also want to reduce these controls, and the member states are also obliged to act. We want to reduce the number of checks to just one a year,” he added.

Environmental NGOs believe that the plan threatens the agricultural sector’s green objectives. Hansen, however, rejects this criticism and emphasises that he is responding to the concerns of farmers, who have repeatedly protested against overly restrictive European regulations.

Yet, this simplification plan is only the first step. The European Commission intends to present new measures later this year.

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