4 h. ago Zelenskyy joins EU leaders’ meeting over €800bn defence plan after Macron’s stark Russia warning – Europe live

Leaders gather to discuss €800bn plan to boost military capacity and help Ukraine as French president says Europe has to be ready to defend itself without US helpSee all our Ukraine war coverageFrance is offering intelligence to Ukraine, French defence minister Sébastien Lecornu said on Thursday, with Paris stepping in to help and fill the void left after the US suspended its intelligence sharing with Kyiv.Speaking to France Inter radio, he also said that president Macron asked him to accelerate the French aid packages “to compensate” for the suspended US aid.In a famously cautious political culture, Mr Merz’s bid to bypass legal restrictions on government debt represents a seismic shift. It would permit a step-change in defence spending for years to come, putting Germany in a leadership position as Europe seeks strategic autonomy from the United States.Mr Merz, a former investment banker, has been a deficit hawk and economic liberal throughout his career. It is an irony of fate tha...

Events

8 h. ago Is Trump’s America still an ally to the UK? – Politics Weekly UK

The news that the US had suspended military aid to Ukraine stunned world leaders and led to a rapid reassessment of how much we can really rely on our American ally. Is this the end of the western alliance? John Harris asks our diplomatic editor, Patrick Wintour. Plus, as the UK pledges to boost defence spending by slashing our foreign aid budget, ActionAid’s CEO, Taahra Ghazi, tells John about the fallout for organisations working on the ground.Send your questions and feedback to politicsweeklyuk@theguardian.com Continue reading...

Politics

14 h. ago Germany's incoming Chancellor pledges to do 'whatever it takes' to boost the nation's defences and moves to lift 'debt brake'

Chancellor-in-waiting Friedrich Merz (pictured) outlined plans to exclude military spending from the country's stringent 'debt brake' rule to free up cash.

Politics

18 h. ago European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending

Berlin’s ‘big bazooka’ proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costsBusiness live – German debt ‘bazooka’ rallies stocks and euroEuropean financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.The yield – in effect the interest rate – on 30-year German government bonds rose by about 25 basis points to 3.08% in its biggest daily increase since October 1998. Continue reading...

Economics

18 h. ago Labour MPs warn aid budget cuts could allow greater role for Russia and China

Concerns were raised during a Commons debate despite a welcome for the move to increase defence spending.

Events

19 h. ago FTSE 100 lags behind Europe after Germany outlines ‘seismic’ spending surge

European markets rose sharply after Germany announced a historic change to its fiscal rules to spend heavily on defence and infrastructure.

Politics

19 h. ago ‘A risky bet’: Friedrich Merz criticised over plan to lift Germany’s debt rules

Chancellor-in-waiting accused of taking part in ‘debt orgy’ after proposing loosening rules to boost defenceGermany’s chancellor-in-waiting, Friedrich Merz, is facing a barrage of criticism from opposition politicians over his radical proposals to loosen rules on running up debt to allow for higher defence spending and boost the economy.The CDU/CSU leader’s proposals for a multibillion-euro package, agreed with his potential coalition partners the Social Democrats, have been described as everything from a “bazooka” to “an extremely risky bet” by economists. He himself has called them vital “in light of the threats to our freedom and peace on our continent”. Continue reading...

Events

22 h. ago ‘I don’t want my sons in fatigues’ – Jess Phillips defends aid cuts

The minister was asked about the Government’s decision to cut overseas aid to fund a boost to defence spending.

Politics

23 h. ago European markets soar as Germany lifts ‘debt brake’ to raise defence spending

Berlin’s ‘big bazooka’ move sends industrial stocks surging but fiscal sea change also hikes borrowing costsBusiness live – German debt ‘bazooka’ rallies stocks and euroEuropean financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.The yield – in effect the interest rate – on 30-year German government bonds rose by 16 basis points, after having earlier jumped by as much as 25 basis points to 3.07% in its biggest increase since October 1998. Continue reading...

Economics

26 h. ago Rachel Reeves 'plans to slash £5bn' from welfare as she scrambles to find more room for defence spending

Chancellor Rachel Reeves is set to present the Treasury watchdog with draft proposals for trimming the government's outlay - said to include up to £5billion from welfare.

Economics

28 h. ago Rachel Reeves scrambles to find more room for defence spending with plan to slash '£5bn' from welfare in Spring Statement

Chancellor Rachel Reeves is set to present the Treasury watchdog with draft proposals for trimming the government's outlay - said to include up to £5billion from welfare.

Economics

29 h. ago Keir Starmer, you claim huge and damaging cuts are vital so we can buy arms and defend ourselves. Prove it | Owen Jones

Splurging the cash is not the answer to Europe’s security jitters. Let’s ignore the hyperbole and decide what’s actually neededBritain is now on a “war footing”, we are told. Earlier this year, Nato’s secretary general, Mark Rutte, demanded that European nations start hiking defence spending at the expense of pensions, health and social security. Fail to do so, he warned, and the only recourse would be to “get out your Russian language courses or go to New Zealand”.In this increasingly feverish atmosphere, it becomes ever more difficult to ask for a bit of perspective, but it is necessary. European elites are panic-stricken after Donald Trump hit the accelerator away from US hegemony, a trend already long under way. Meanwhile, Labour figures openly brief that this could be Keir Starmer’s “Falklands moment”, using Ukraine’s agony to transform the government’s calamitous polling, speaking to a grubby political opportunism. Britain’s current trajectory could raise a much graver menace ...

Politics

37 h. ago Starmer faces growing concerns from MPs over ‘brutal’ cuts to foreign aid budget

Sir Keir Starmer is facing increasing pressure from MPs over his decision to cut the overseas aid budget to fund an increase in defence spending

Politics

39 h. ago Defence spending 'must revive UK manufacturing': Government is urged to buy British in military push

Labour has been urged to use an increase in defence spending to boost UK industry - as governments across Europe face up to the need to rearm.

Economics

41 h. ago Germany’s future coalition partners to relax debt rules to boost defence budget

Conservative alliance and Social Democrats to propose exempting spending of more than 1% of GDP on defenceThe prospective partners in Germany’s next government have said they will seek to loosen rules on running up debt to allow for higher defence spending.They said they will also seek to set up a huge €500bn ($533bn ) fund to finance spending on Germany’s infrastructure over the next 10 years. Continue reading...

Economics

45 h. ago UK will not ‘pull up drawbridge’ to foreign firms to spend defence cash – Reeves

The Chancellor said she wanted the boost to defence spending to benefit UK firms but that there would always be a need to buy things from abroad.

Economics

50 h. ago Europe ‘ready to step up’ as Kremlin welcomes Donald Trump decision to pause aid for Ukraine – Europe live

EU ready to increase defence spending and military capabilities as Kremlin welcomes US ‘contribution’ to the cause of peaceNew EU plans to strengthen Europe’s defence industry and increase military capabilities could mobilise close to €800bn ($841.4bn), EU Commission president Ursula von der Leyen said on Tuesday in Brussels.The EU will propose to give member states more fiscal space for defence investments, as well as €150bn euros in loans for those investments, and will aim to mobilise private capital as well, Reuters reports von der Leyen said Continue reading...

Politics

50 h. ago Markets tumble as Trump's tariffs against Canada and China come into effect and both countries hit back with Beijing saying 'we won't be bullied'

European stock markets retreated at the open Tuesday, with the possibility that similar levies could hit Europe. Shares were mixed Tuesday in Asia.

Economics

50 h. ago Markets tumble as Trump's tariffs against Canada and China come into effect and both countries hit back and Beijing comes out fighting saying 'we won't be bullied'

European stock markets retreated at the open Tuesday, with the possibility that similar levies could hit Europe. Shares were mixed Tuesday in Asia.

Economics

51 h. ago EU plans to strengthen defence spending could cost €800bn, says von der Leyen – Europe live

EU Commission president says bloc is ready to massively increase defence spending and military capabilitiesUS has suspended all military aid to Ukraine, White House official says, in wake of Trump-Zelenskyy rowNew EU plans to strengthen Europe’s defence industry and increase military capabilities could mobilise close to €800bn ($841.4bn), EU Commission president Ursula von der Leyen said on Tuesday in Brussels.The EU will propose to give member states more fiscal space for defence investments, as well as €150bn euros in loans for those investments, and will aim to mobilise private capital as well, Reuters reports von der Leyen said Continue reading...

Economics