France is on the cliff edge as its debt continues to balloon, Prime Minister Francois Bayrou said today as he set out plans to sharply narrow the budget deficit next year.
“We have a duty to take responsibility, we’re at the last stop before the cliff,” the premier said Tuesday at a press conference in Paris to outline his fiscal strategy. “We have become addicted to public spending.”
Bayrou has brought forward the presentation of the budget, usually in September, to gain time to persuade lawmakers to accept unpopular spending cuts and tax hikes. France’s borrowing costs have increased relative to peers and the country now has the widest budget deficit in the euro area.
He also proposed scrapping two public holidays — Easter Monday and May 8. Other moves include a new tax on the highest earners and a freeze in pension and welfare payments at 2025 levels. — Jennifer Duggan
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Russia rejected pressure from US President Donald Trump, who threatened to impose stiff economic penalties on Moscow if it doesn’t end hostilities with Ukraine within 50 days. The Kremlin indicated that it would review his latest stance. “We first and foremost note that any attempts to make demands — especially ultimatums — are unacceptable for us,” Russian Deputy Foreign Minister Sergei Ryabkov said today according to the state-run Tass news service. In an interview with the BBC aired today, Trump said that he was “disappointed” in Putin, but not “done with him. ”
South African President Cyril Ramaphosa has had a setback as he seeks to clamp down on rampant crime. Nhlanhla Mkhwanazi, the head of the police in the eastern KwaZulu-Natal province, last week accused Police Minister Senzo Mchunu and some of his fellow officers of trying to quash a probe into political killings. Ramaphosa put Mchunu on leave and ordered a judicial probe, which could take months to complete.
South Africa's President Cyril Ramaphosa attends a BRICS summit session. Photographer: Pablo Porciuncula/AFP/Getty Images
Meta Platforms is headed for another clash with the European Union after a €200 million fine failed to bring Facebook and Instagram into compliance with a tough new digital law. The European Commission wrote to the social network giant last week, cautioning that Meta’s pay or consent service — allowing ad-free services for a fee — needs further reworking. The procedural step paves the way for a formal EU warning and, eventually, periodic fines if Meta fails to appease the teams of Competition Commissioner Teresa Ribera and her tech-policy counterpart Henna Virkkunen.
Trump asked Volodymyr Zelenskiy whether Ukraine could strike Moscow, an inquiry that the White House says was merely a question but one that came hours after he voiced frustration at Russian President Vladimir Putin’s refusal to accept a ceasefire in the war. During a July 4 phone call with the Ukrainian president, Trump quizzed Zelenskiy about whether Ukraine could hit the Russian capital and St. Petersburg if given US long-range weapons, according to a person briefed about the conversation.
The EU is set to define what technologies can be used to permanently remove carbon dioxide from the atmosphere as it pursues its goal of being climate neutral by 2050. The European Commission will outline rules for certifying tools such as Direct Air Carbon Capture and Storage, Bioenergy Carbon Capture and Storage and biochar, according to a document seen by Bloomberg News. All are deemed “permanent” removal solutions, unlike nature-based fixes like reforestation.
Investor confidence in Germany’s economy improved in July, highlighting resilience in the face of US tariff threats as the government in Berlin ramps up spending. An expectations index by the ZEW institute rose to 52.7 from 47.5 the previous month, more than the 50.4 that economists in a Bloomberg survey had estimated. Chancellor Friedrich Merz said Trump’s latest tariff threat would hit German exporters “to the core” if it becomes reality — has made the outlook even less predictable.
Sporting Lisbon is understood to be working with JPMorgan Chase on a plan to raise at least €100 million in debt in the coming months. The Portuguese sports club is considering issuing bonds following rival FC Porto’s €115 million private placement last year, said people familiar with the matter. Sporting plans to use the funds to refinance existing loans and support day-to-day operations.
