World
Germany and France still at odds over reform of the EU fiscal rules
Germany and France, the largest economies of the European Union, continue to be at odds over the reform of the bloc’s fiscal rules.
Berlin is rallying allies to push for uniform standards that can improve compliance while Paris advocates flexibility to give highly indebted countries greater room for manoeuvre.
Under current rules, member states are required to keep their budget deficits under 3% of gross domestic product (GDP) and their public debt levels below 60% in relation to GDP — thresholds that many governments exceed after years of intense spending to cushion a succession of overlapping crises.
The framework has been on pause since the onset of the COVID-19 pandemic.
The bloc intends to bring the rules back into force in early 2024 but only after the intricate set of laws, known as the Stability and Growth Pact, has been reformed to cope with the green and digital transition.
The review has sparked an ideological battle between member states, which played out in open view during Friday’s meeting of economy and finance ministers in Luxembourg.
“The real point of disagreement is whether or not there should be automatic and uniform rules,” said Bruno Le Maire, France’s economy minister.
“Our answer is clearly no because we believe that would be an economic mistake and a political mistake,” he went on, appealing to the respect of national sovereignty.
“We have tried in the past to have automatic and uniform rules. This led to recession, economic hardship (and) a loss of production and growth in Europe. This is the opposite of what we want, which is more growth, more prosperity and more jobs.”
Christian Lindner, Germany’s federal minister of finance, expressed a diametrically opposed viewpoint, calling for a homogenous approach that would ensure a comparable degree of fiscal discipline across the board.
“In our view, automatic rules are very OK and are needed,” Lindner said, responding to a reporter who had asked him about Le Maire’s comments.
“We need a multilateral approach, we need equal treatment, we need numerical benchmarks and we need a common safeguard.”
Lindner added the European Commission should not have “too much leeway” in its bilateral negotiations with member states regarding compliance with the fiscal rules.
“Germany is not alone with its concerns,” he noted.
Ahead of Friday’s meeting, Lindner, together with 10 counterparts, released an op-ed making the case for rules that are “equally applicable” to all member states and ensure a “realistic, timely and sufficient” decline in deficits and debt levels.
The article was signed by the ministers of Austria, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Germany, Latvia, Lithuania, Luxembourg and Slovenia.
The Netherlands, a well-known fiscal hawk, was notably absent.
“We cannot allow debt levels to rise indefinitely from crisis to crisis. This would permanently overload public finances, which is particularly costly in times of rising interest rates,” the op-ed reads.
“As far as the capital markets are concerned, debt is debt. Capital markets are not interested in the motives for taking on debt, however worthy they may be.”
A hard-fought reform
Under the reform currently on the table, the long-standing 3% and 60% targets would be left untouched but the way in which they are met would significantly change.
Each member state would be asked to design its own mid-term fiscal plan to cut down its deficit and debt levels at a sustainable and credible pace. The country-specific blueprints will be negotiated between governments and the European Commission, and later approved by the EU Council.
The fiscal adjustments necessary to meet – or at least head towards – the 3% and 60% targets will be carried out over a period of four years, extendable to seven in exchange for further reforms.
This renewed focus on national ownership and flexibility has been welcomed by indebted countries like France, Italy, Spain and Portugal, but has raised suspicions from frugal-minded states, who fear governments would enjoy excessive discretion to rein in their public finances.
Mindful of this criticism, the Commission introduced four key safeguards to its legislative proposal with the aim of improving compliance and transparency:
- Countries whose deficit exceeds 3% of GDP will need to make annual adjustments worth 0.5% of GDP until the deficit falls below the mark.
- The debt-to-GDP ratio must be visibly lower at the end of the four-year plan.
- In case the plan is extended to seven years, the majority of the fiscal corrections should take place in the first four years, rather than being delayed to the very end.
- Net expenditure must always remain below potential economic growth.
The addendum did not satisfy Germany, which wants to introduce a minimum benchmark based on debt, rather than deficit, as the Commission has suggested.
Berlin’s benchmark would impose a debt reduction at a pace ranging between 0.5% and 1% every year, with a possible exemption in times of recession.
“Under normal circumstances, it’s not over-ambitious to reach for a 1% reduction in the debt-to-GDP (ratio),” Lindner said on Friday morning.
“As you know, there are member states who are above 100% which means in my lifespan I won’t see them returning to the 60% (target).”
While the op-ed does not include any numerical benchmarks, it does challenge the Commission’s approach to mid-term national plans, which, according to the 11 ministers, could be “rendered obsolete” by unexpected circumstances.
“We have to ask ourselves how effective reform and spending decisions will be if they are made too far in advance, also in light of the increasingly high uncertainties the Union is facing,” the ministers wrote in their joint op-ed.
“We are not convinced that timeframes for necessary consolidation efforts extending far beyond the cycle of a legislative period will yield the best possible results.”
But for Bruno Le Maire, the new economic environment created by climate change, the rise of artificial intelligence and the growing US-China rivalry justifies a fiscal overhaul based on the principles of “differentiation” and ownership.
“We all start from different public finance situations,” Le Maire said.
“We are committed to rules, we want firm rules and we want the rules to be respected. But we want rules that are smart and simple, and that will allow us to build European prosperity in the 21st century.”
World
The Year in Pictures 2024: Far From Ordinary
When shots were fired at a campaign rally for former President Donald J. Trump on a July evening in Butler, Pa., the veteran New York Times photographer Doug Mills was just a few feet from him. As the Secret Service rushed toward Mr. Trump, Mr. Mills’s heart pounded when he realized what was happening.
Then instinct took over. Mr. Mills kept taking pictures, at an extremely fast shutter speed of one eight-thousandth of a second, capturing an image that illustrates the magnitude of that moment: Mr. Trump, his face streaked with blood, his fist raised in defiance.
This year was made up of such extraordinary moments. And Times photographers captured them in extraordinary images. The Year in Pictures brings you the most powerful, evocative and history-making of those images — and allows you to see the biggest stories of 2024 through our photographers’ eyes.
The presidential campaign — full of twists and turns — provided some of our most memorable photos. Kenny Holston captured a shaky President Biden struggling to find his footing in what turned out to be his only debate of the 2024 election. Erin Schaff conveyed the exhilaration surrounding Vice President Kamala Harris in the short sprint of her campaign. And Todd Heisler brought home the excitement of an 8-year-old girl in pigtails, Ms. Harris’s great-niece, who watched with pride as Ms. Harris accepted her party’s nomination for president.
Yet even as the American political campaign intensified, wars ground on overseas, creating new dangers and obstacles for our photojournalists determined to document the fighting. The war between Hamas and Israel escalated into a regional conflict, and our photographers depicted the Israeli airstrikes on Lebanon, the families forced to flee their homes and the neighborhoods reduced to rubble.
When Israeli forces recovered the bodies of six hostages in Gaza, our photographers revealed the pain of the captives’ families as they cried out at their loved ones’ funerals after 11 months of anguished waiting. And last month, Samar Abu Elouf, a Palestinian photographer for The Times, delivered some of the most indelible images of the year: a series of portraits of Gazans horribly injured in the war, including children who had lost arms, legs or eyes.
Children were also central to the work of Lynsey Addario, a veteran photographer who has been chronicling the war in Ukraine since Russia first invaded in 2022. Ms. Addario’s images tell the stories of young Ukrainians with cancer whose treatment was disrupted by the war, often with devastating results. One, a 5-year-old girl whose chemotherapy was upended by the Russian invasion, ultimately lost her life.
Our photographers embrace their calling of bearing witness to history, showing readers the atrocities and the suffering that might otherwise be overlooked. But they also see their mission more broadly, and aim to depict the richness and color of life by regularly bringing us pictures that delight and surprise.
Take the photo by Hiroko Masuike from the ticker-tape parade in October for the New York Liberty women’s basketball team. The young fans pictured radiate a kind of awe-struck joy, screaming to the players by name. Or the photographs that show the sense of wonder on the faces of people at Niagara Falls as they bask in the magic of a solar eclipse in April.
We hope you can spend some time with these pictures, and take in our photographers’ reflections on them. This collection of images is a way to remember the year, but it is also, we hope, an opportunity to better understand their craft and their devotion to producing the world’s best photojournalism.
Curation
Tanner Curtis, Jeffrey Henson Scales
Interviews
Dionne Searcey
Editing
Natasha King
Digital Design
Matt Ruby
Print Design
Mary Jane Callister, Felicia Vasquez
Production
Peter Blair, Eric Dyer, Wendy Lu, Nancy Ramsey, Jessica Schnall, Hannah Wulkan
Additional Production
Anna Diamond
New York Times Director of Photography
Meaghan Looram
World
French high court upholds ex-president's corruption conviction
France’s highest court has upheld an appeal court decision which had found former President Nicolas Sarkozy guilty of corruption and influence peddling while he was the country’s head of state.
Sarkozy, 69, faces a year in prison, but is expected to ask to be detained at home with an electronic bracelet — as is the case for any sentence of two years or less.
He was found guilty of corruption and influence peddling by both a Paris court in 2021 and an appeals court in 2023 for trying to bribe a magistrate in exchange for information about a legal case in which he was implicated.
“The convictions and sentences are therefore final,” a Court of Cassation statement on Wednesday said.
FRANCE’S MACRON NAMES CENTRIST ALLY BAYROU AS NEXT PRIME MINISTER
Sarkozy, who was France’s president from 2007 to 2012, retired from public life in 2017 though still plays an influential role in French conservative politics. He was among the guests who attended the reopening of Notre Dame Cathedral earlier this month.
Sarkozy, in a statement posted on X, said “I will assume my responsibilities and face all the consequences.”
He added: “I have no intention of complaining. But I am not prepared to accept the profound injustice done to me.”
Sarkozy said he will seek to bring the case to the European Court of Human Rights, and hopes those proceedings will result in “France being condemned.”
He reiterated his “full innocence.”
“My determination is total in this case as in all others,” he concluded.
Sarkozy’s lawyer, Patrice Spinosi, said his client “will comply” with the ruling. This means the former president will have to wear an electronic bracelet, Spinosi said.
It is the first time in France’s modern history that a former president has been convicted and sentenced to a prison term for actions during his term.
Sarkozy’s predecessor, Jacques Chirac, was found guilty in 2011 of misuse of public money during his time as Paris mayor and was given a two-year suspended prison sentence.
Sarkozy has been involved in several other legal cases. He has denied any wrongdoing.
He faces another trial next month in Paris over accusations he took millions of dollars from then-Libyan dictator Moammar Gadhafi to illegally finance his successful 2007 campaign.
The corruption case that led to Wednesday’s ruling focused on phone conversations that took place in February 2014.
At the time, investigative judges had launched an inquiry into the financing of Sarkozy’s 2007 presidential campaign. During the inquiry, they discovered that Sarkozy and his lawyer, Thierry Herzog, were communicating via secret mobile phones registered to the alias “Paul Bismuth.”
Wiretapped conversations on those phones led prosecutors to suspect Sarkozy and Herzog of promising magistrate Gilbert Azibert a job in Monaco in exchange for leaking information about another legal case involving Sarkozy. Azibert never got the post and legal proceedings against Sarkozy have been dropped in the case he was seeking information about.
Prosecutors had concluded, however, that the proposal still constitutes corruption under French law, even if the promise wasn’t fulfilled. Sarkozy vigorously denied any malicious intention in his offer to help Azibert.
Azibert and Herzog have also been found guilty in the case.
World
EU ministers water down proposal on child sexual abuse
A proposal on combatting child sexual abuse has been watered down by some EU justice ministers, with others expressing their regret at certain elements of the proposal being removed entirely.
With the development of new technologies, sexual abuse of children has seen a rise in Europe.
The EU is therefore looking to update its directive on combatting the sexual abuse and sexual exploitation of children, which dates back to 2011.
However, the EU Commission’s initial proposal has been watered down by the justice ministers of several EU countries. Seven Member States, which include Belgium, Finland and Ireland, expressed their regret at the removal of certain parts of the proposal.
“We deeply regret that the majority of Member States were unable to support a more ambitious approach aimed at ensuring that children who have reached the age of sexual consent receive the strongest and most comprehensive legal protection possible against unwanted sexual acts,” they wrote in a press release.
Key issues remained unaddressed
Isaline Wittorski, EU regional coordinator at child rights organisation ECPAT International, is particularly concerned regarding Member States’ opposition to the extension of the limitation period for pursuing child sexual abuse cases.
She also regrets that “grooming” – the process by which an adult intentionally approaches minors and manipulates them for sexual purposes – for children who have reached the age of sexual consent was not addressed by the Council.
“The Member States expressly refused to recognise in the text that a child in a state of shock or intoxication cannot be considered to have consented to sexual abuse”, she adds.
Harmonisation of penalties
The Commission’s proposal aims to harmonise the definition of sexual violence against minors and penalties within the EU.
It will also update criminal law in order to criminalise the rape of children broadcast live on the internet, as well as the possession and exchange of paedophile manuals and child abuse deepfakes.
MEPs, for their part, should support a more ambitious directive. Birgit Sippel, a German MEP (S&D), is calling for longer limitation periods.
“Many children who have been abused take years or even decades before they dare to go to court or to a police station. So this is a very important step that is missing from the current directive,” the MEP told Euronews.
“Unfortunately, what I see is that the Council is watering down almost everything that could improve the current directive. It will therefore be very important for the EU Parliament to maintain a very strong position and force the Council to go further and not limit itself to the current directive,” she added.
The proposal’s text can still be amended. After a vote by MEPs, negotiations will take place between the EU Commission, the European Council and the European Parliament.
It is estimated that one in five children in Europe is a victim of some form of sexual violence.
In 2022 alone, there were 1.5 million reports of child sexual abuse in the EU.
Ministers also failed to reach agreement on another regulatory text aimed at combatting the sexual abuse of children online, which aims to force platforms to detect and remove content depicting sexual violence against minors. This proposal caused a clash between children’s rights defenders and privacy protection lobbies.
-
Business1 week ago
OpenAI's controversial Sora is finally launching today. Will it truly disrupt Hollywood?
-
Politics5 days ago
Canadian premier threatens to cut off energy imports to US if Trump imposes tariff on country
-
Technology6 days ago
Inside the launch — and future — of ChatGPT
-
Technology5 days ago
OpenAI cofounder Ilya Sutskever says the way AI is built is about to change
-
Politics5 days ago
U.S. Supreme Court will decide if oil industry may sue to block California's zero-emissions goal
-
Technology5 days ago
Meta asks the US government to block OpenAI’s switch to a for-profit
-
Politics6 days ago
Conservative group debuts major ad buy in key senators' states as 'soft appeal' for Hegseth, Gabbard, Patel
-
Business3 days ago
Freddie Freeman's World Series walk-off grand slam baseball sells at auction for $1.56 million