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Germany wants binding debt reduction targets for EU countries

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Germany wants binding debt reduction targets for EU countries

Germany is pushing for binding debt discount targets as a part of the European Union’s budgetary guidelines, in line with a doc seen by Euronews.

EU legislation requires nations to have a finances deficit under 3% of gross home product (GDP) and public debt under 60% of GDP however many nations exceed these thresholds after years of intense spending to cushion the impression of the COVID-19 pandemic, Russia’s conflict in Ukraine and the power disaster.

The European Fee argues the brand new financial actuality warrants a reform of the bloc’s fiscal guidelines and has taken preliminary 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 with higher flexibility to permit governments to adapt the aims to the particular circumstances of every nation.

Member states would have the ability to provide you with their very own blueprints to regulate public deficit and steadily lower debt throughout a four-year interval.

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Extremely indebted nations, similar to Greece and Italy, might be granted an additional three years to regulate their funds and obtain what Brussels calls “prudent fiscal coverage.”

The much-criticised norm that imposed a uniform 1/twentieth price of debt discount could be scrapped and changed by country-tailored pathways, a tweak that may assist keep away from essentially the most painful sacrifices.

However Germany, a rustic that has lengthy advocated for fiscal moderation, disagrees with this strategy and has requested the European Fee to incorporate a type of one-size-fits-all rule to deliver down debt.

Germany’s proposal consists of “widespread safeguard provisions” to scale back nations’ debt ratio by a minimum of 0.5 share factors per yr for nations the place debt exceeds 60% of GDP.

International locations effectively above that threshold would wish to scale back their debt by a minimum of 1 share level per yr, in line with the German non-paper.

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

The European Fee needs to have the reformed fiscal guidelines in place by January 2024 and is predicted to current authorized proposals within the coming weeks.

The brand new framework will bear in mind the large injection of money wanted to hurry up the inexperienced and digital transition, a twin effort estimated to price €650 billion in further investments per yr till 2030.

EU nations have spent the final months debating tips on how to strike a balancing act between sturdy investments and sustainable debt discount, with no clear reply in sight.

Brussels, in the meantime, has determined to delay fines for non-compliant nations till subsequent yr.

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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.

The best ratio of presidency debt to GDP was in Greece the place it is at 178.2%, adopted by Italy with a 147.3% price.

In that very same interval, German debt was at 66.6% of GDP, in line with Eurostat.

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

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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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