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Germany and Netherlands push for minimum debt targets for EU countries

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Germany and Netherlands push for minimum debt targets for EU countries

The continued reform of the European Union’s fiscal guidelines has taken a brand new flip after Germany and the Netherlands got here ahead with calls for for minimal debt discount targets, immediately difficult the European Fee’s strategy based mostly on tailored nationwide plans.

EU legislation requires international locations to maintain their finances deficit beneath 3% of gross home product (GDP) and public debt beneath 60% in relation to GDP however many international locations exceed these thresholds after years of intense spending to cushion the impression of the COVID-19 pandemic, Russia’s conflict in Ukraine and the vitality disaster.

The European Fee argues this new financial actuality warrants a reform of the bloc’s fiscal guidelines and has taken the primary steps to revise the present framework.

In a report printed final November, the Fee proposed to maintain each the three% and the 60% targets untouched however add higher flexibility in order that governments can adapt the goals to the precise circumstances of their international locations.

Beneath the plan, EU states would negotiate their very own nationwide blueprints with Brussels to manage public deficit and step by step lower debt throughout a four-year interval.

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Extremely indebted international locations like Greece and Italy might be granted an additional three years to regulate their funds and return to “prudent” fiscal insurance policies.

In a notable change, the norm that imposed a uniform 1/twentieth fee of debt discount can be scrapped and changed by distinctive pathways. This norm has been criticised for forcing painful sacrifices and exacerbating financial crises.

However Germany and the Netherlands, two international locations identified for advocating fiscal moderation, disagree with this strategy and are actually demanding minimal targets for indebted international locations.

In a non-paper seen by Euronews, Germany makes the case for a one-size-fits-all rule that ought to assure a decline in debt ranges of an “considerable magnitude.”

This “frequent safeguard” would compel international locations which have a debt ratio above 60% of GDP to cut back their debt ranges by a minimum of 0.5% per 12 months.

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Nations effectively above that threshold would want to cut back their debt by a minimum of 1% per 12 months, based on the German doc.

“The present concepts of the Fee must be amended in a means that the medium-term fiscal plans result in a (ample) decline in excessive debt ratios in annually… it must also be ensured that an precise discount in debt ratios on an annual foundation is achieved,” the non-paper says.

Germany additionally suggests “easy and clear” guidelines to handle public expenditure and a provision to routinely set off a brand new reform course of if excessive debt persists.

“If the reformed framework doesn’t obtain a discount within the debt ratios, it should be revised after a most interval of 4 years,” the non-paper says.

Days after the German doc leaked to the press, Dutch Finance Minister Sigrid Kaag threw her assist behind the thought of a “frequent numerical benchmark” to forestall country-specific plans from changing into “idiosyncratic.”

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“We predict it is extremely necessary that there’s variance, that there’s area for reform and investments, however in fact, debt discount must be tangible and must be measurable,” Kaag informed the Financial Times.

“We would like ample debt discount.”

Kaag, nonetheless, didn’t specify the annual ratios, as Germany did in its non-paper.

Euronews reached out to the Netherlands finance ministry asking for extra particulars.

In response to the statements, Veerle Nuyts, a European Fee spokesperson, mentioned Brussels would unveil legislative proposals “within the coming weeks” to advance the political debate however refused to say whether or not the proposals would function the minimal targets advocated by Germany and the Netherlands.

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“The final word intention is to make sure a broad consensus on this necessary subject,” Nuyts mentioned, noting engagement with governments continued on “remaining open points.”

She additionally mentioned the conclusions from final month’s assembly of financial and finance ministers, which included a reference to “the appropriateness and design of frequent quantitative benchmark,” supplied a “stable basis” for the Fee’s work.

Brussels is decided to conclude the reform course of by the tip of the 12 months and have the brand new fiscal guidelines in place by January 2024, an formidable objective additionally shared by member states.

The brand new framework is anticipated to take note of the large injection of money wanted to hurry up the EU’s inexperienced and digital transition, a twin effort estimated to price €650 billion in extra investments per 12 months till 2030.

EU international locations have spent the final months discussing how you can strike a balancing act between robust investments and sustainable debt discount, with no clear reply in sight.

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The Fee, in the meantime, has determined to delay fines for non-compliant international locations till subsequent 12 months.

On the finish of the third quarter of 2022, authorities debt stood at 93% of GDP within the euro space and 85.1% within the European Union. Greece had the best ratio, at 178.2%, adopted by Italy with a 147.3% fee.

In that very same interval, German debt stood at 66.6% of GDP, whereas the Netherlands had a 49% fee, based on Eurostat.

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Cartier owner Richemont posts 10% increase in Q3 sales

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Cartier owner Richemont posts 10% increase in Q3 sales
Cartier jewellery owner Richemont on Thursday reported a 10% increase in constant currency sales during the three months to the end of December, a strong early indicator for the performance of European luxury companies over the all-important holiday season.
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Ancient Pompeii excavation uncovers lavish private bath complex

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Ancient Pompeii excavation uncovers lavish private bath complex

Archaeologists have unearthed a lavish private bath complex in Pompeii, highlighting the wealth and grandeur of the ancient Roman city before it was destroyed by Mount Vesuvius in AD 79, the site said on Friday.

The baths, featuring hot, warm and cold rooms, could host up to 30 guests, allowing them to relax before heading into an adjacent, black-walled banquet hall, decorated with scenes from Greek mythology.

ITALY’S ANCIENT POMPEII PARK CRACKS DOWN ON DAILY VISITORS TO COMBAT OVERTOURISM

The pleasure complex lies inside a grand residence that has been uncovered over the last two years during excavations that have revealed the opulent city’s multifaceted social life before Vesuvius buried it under a thick, suffocating blanket of ash.

A central courtyard with a large basin adds to the splendour of the house, which is believed to have been owned by a member of Pompeii’s elite in its final years.

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“This discovery underscores how Roman houses were more than private residences, they were stages for public life and self-promotion,” said Gabriel Zuchtriegel, director of the Pompeii Archaeological Park.

The private thermal baths complex discovered by archaeologists in a villa of the ancient city of Pompeii is seen in Pompeii, Italy, in this undated handout picture released on January 17, 2025.  (Pompeii Archeological Park/Ministry of Cultural Heritage and Activities and Tourism/Handout via REUTERS )

Zuchtriegel said the layout recalled scenes from the Roman novel “The Satyricon”, where banquets and baths were central to displays of wealth and status.

Decorated with frescoes, the complex draws inspiration from Greek culture, emphasizing themes of leisure and erudition.

“The homeowner sought to create a spectacle, transforming their home into a Greek-style palace and gymnasium,” Zuchtriegel said.

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The remains of more than 1,000 victims have been found during excavations in Pompeii, including two bodies inside the private residence with the bathhouse – a woman, aged between 35-50, who was clutching jewellery and coins, and a younger man.

The discovery of their bodies was announced last year.

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‘Fields were solitary’: Migration raids send chill across rural California

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‘Fields were solitary’: Migration raids send chill across rural California

Los Angeles, California — Recent raids carried out by the United States Customs and Border Protection (CBP) in a rural California county have struck fear into immigrant communities as President-elect Donald Trump prepares to return to the White House.

CBP says that the operation in Kern County, which took place over three days in early January, resulted in the detention of 78 people. The United Farm Workers (UFW) union says it believes the number is closer to 200.

“The fields were almost solitary the day after the raids,” a 38-year-old undocumented farmworker named Alejanda, who declined to give her last name, said of the aftermath.

She explained that many workers stayed home out of fear. “This time of year, the orchards are usually full of people, but it felt like I was by myself when I returned to work.”

The raids are being seen by local labourers and organisations like UFW as a shot across the bow from immigration enforcement agencies before Trump’s inauguration on Monday.

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His second term as president is expected to ring in a new era of enhanced restrictions and deportation efforts.

While the number of people arrested represents a small fraction of the hundreds of thousands of undocumented workers underpinning California’s agricultural sector, the anxieties caused by such raids extend far beyond those detained.

“On Wednesday [the day after the raids], I stayed home from work. I barely left my house,” said Alejanda, adding that she kept her five-year-old son home from daycare rather than risk driving to drop him off.

“Everyone is talking about what happened. Everyone is afraid, including me. I didn’t actually see any of the agents myself, but you still feel the tension.”

Emboldened agencies

Following a presidential campaign where he routinely depicted undocumented migrants as “criminals” and “animals”, Trump will likely try to fulfill his promise to carry out the “largest deportation programme” in the country’s history on his first day in office.

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About 11 million people live in the United States without legal documentation, some of whom have worked in the country for decades, building families and communities.

The January arrests in Kern County appear to be the first large-scale Border Patrol raid in California since Trump’s victory in the November election, which set off speculation about the potential impact of mass deportations on immigrant communities and the economic sectors dependent on their labour.

About 50 percent of California’s agricultural workforce is made up of undocumented immigrants.

In California, undocumented status has been cited as a source of persistent anxiety for workers — as well as a means of leverage for employers, who often pay such labourers lower wages and grant them fewer protections in the fields.

But Alejanda says that workplace raids like the ones that took place in Kern County have not been common in the area.

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“I have been here for five years and never experienced anything like this before,” she said, noting that workers were detained while leaving the fields to go home.

CBP said in a statement that the operation, named “Return to Sender”, had targeted undocumented people with criminal backgrounds and connections to criminal organisations.

The raids were carried out by agents from the CBP El Centro Sector, located near the border between Mexico and southern California, more than five hours by car from the site of the raids.

“The El Centro Sector takes all border threats seriously,” Chief Patrol Agent Gregory Bovino said in a press release. “Our area of responsibility stretches from the US/Mexico Border, north, as mission and threat dictate, all the way to the Oregon line.”

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Antonio De Loera-Brust, a spokesperson for UFW, said that the operation shows that agencies like CBP are likely to become more aggressive as Trump takes office.

He also disputed CBP’s characterisation of the raids as focused on people with criminal records, saying that the operation cast a wide net and profiled people who looked like farmworkers.

Two of those arrested were UFW members, whom the organisation described as fathers who had lived in the area for more than 15 years.

“By operating over 300 miles north of the Mexican border, and apparently conducting this untargeted sweep based on profiling on their own initiative and authority, Border Patrol has shown itself to be clearly emboldened by a national political climate of hostility towards hard-working immigrant communities,” De Loera-Brust told Al Jazeera.

“It’s certainly deeply concerning that this sort of operation could be the new normal under the incoming Trump administration.”

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