- Five candidates have qualified for the second round of the Labour leadership election in the United Kingdom: Keir Starmer, Rebecca Long-Bailey, Lisa Nandy, Jess Phillips and Emily Thornberry won the required 10 percent support from lawmakers to make it into the next nominating round.
- Clive Lewis pulled out after receiving only five endorsements. Some of his supporters switched to Thornberry, who received 23 endorsements, only one more than needed.
- Keir Starmer won the most endorsements by far (89), including from former leader Ed Miliband. Read more “Five Candidates Qualify to Succeed Corbyn as Labour Leader”
If you’re trying to control housing costs in your city, don’t look to Berlin for inspiration.
The German capital is due to implement a five-year, across-the-board rent freeze in March. The measure is expected to save around 340,000 tenants money during that period, but it will come at the expense of housing affordability in the long term.
The German Economic Institute in Cologne estimates that Berlin’s policy will reduce the value of some properties by more than 40 percent.
A consequence of that will be underinvestment. The BBU, a trade association of developers in the Berlin and Brandenburg region, says its members expect to reduce investments by €5.5 billion and construction by at least a quarter.
Germany needs 350,000 new homes each year to keep up with demand. Only 286,000 were built in 2018. If the BBU is to be believed, that number will fall — driving up housing costs across Germany. Read more “Berlin Shows How Not to Do Housing Policy”
German chancellor Angela Merkel is traveling to Moscow on Saturday, officially to discuss the conflicts in Libya, Syria and Ukraine, as well as the tension between Iran and the United States, with Vladimir Putin.
Hanging over the meeting will their countries’ deteriorating relations with the United States. Read more “Trump’s Presence Will Be Felt When Merkel and Putin Meet”
Russia and Ukraine have agreed to secure the flow of natural gas to Europe for the next five years. A deal between the two countries satisfies the economic needs of all three parties involved. Russia guarantees the export of its gas, Ukraine continues to benefit financially from transiting the gas, and the EU receives a steady supply of gas for the immediate future.
Gazprom, the Russian gas monopoly, will pipe 65 billion cubic metres of gas into Europe in 2020. The amount will fall to 40 billion over the next four years. The agreement mentions the possibility of extending the contract by another ten years upon maturity.
Ukraine will receive up to $7 billion in transit fees, which would be around 5 percent of its national budget.
An agreement has not (yet) been reached on direct gas supplies to Ukraine. For the time being, it only stands to benefit financially.
Naftogaz, the Ukrainian gas company, will also receive $2.9 billion from Gazprom in overdue transit payments following an arbitration court ruling in Sweden. In return, Ukraine has agreed to drop $12.2 billion in additional legal claims. Read more “Russian-Ukrainian Gas Deal is a Trilateral Victory”
American president Donald Trump has called on NATO to get more involved in the Middle East.
Speaking a day after Iran retaliated for the assassination of its top general, Qasem Soleimani, in Iraq by attacking American military bases in the country, Trump pointed out that the United States are no longer dependent on Middle Eastern oil.
He didn’t elaborate, but I can think of at least four problems with the idea. Read more “Don’t Pull NATO into the Middle East”
- Socialist Party leader Pedro Sánchez has won a second term as prime minister of Spain.
- He fell short of a absolute majority in Congress on Sunday but needed only more votes in favor than against a the second ballot on Tuesday.
- Left-wing separatists from the Basque Country and Catalonia abstained, allowing Sánchez to scrape by with a majority of two — the smallest ever for a Spanish prime minister.
- Sánchez’ will be the first coalition government since the Civil War and the most left-wing government since the fall of the Republic. Read more “Sánchez Wins Second Term as Prime Minister of Spain”
After leading the British Labour Party into its worst electoral defeat since 1935, Jeremy Corbyn is stepping down as leader.
The contest to succeed him will take three months and pit defenders of Corbyn’s legacy against centrists who believe the party must change.
Here is everything you need to know. Read more “Everything You Need to Know About the Labour Leadership Election”
If the German economy does poorly, so will the eurozone’s. A mere .2 percent growth is projected for the first quarter of 2020. This should be a wakeup call to German policymakers.
There are the usual suspects: underdeveloped infrastructure, underinvestment in education, export dependency.
They all stem from Germany’s obsession with surpluses. Revenues generated by exports are not reinjected into the economy. Rather, they sit comfortably in savings accounts. This is the reason for negative interest rates.
Not spending money is one way to get rich. But to grow its economy, or prevent a slowdown, Germany must put its money to work: invest in education, infrastructure and public goods.
Its reluctance to do so affects everyone in the euro area. Germany accounts for nearly 30 percent of the eurozone’s GDP. If Germany spent more at home, it would reduce its current account surplus and increase demand for the products and services of other European nations. Read more “Germany’s Surplus Obsession Hurts the Eurozone”
Spain’s electoral commission is trying to sidestep the courts in order to ban Catalan separatist leaders from office.
The commission ordered Catalan president Quim Torra to step down on Friday, although he is appealing a similar ban from office by the Catalan High Court.
It also barred separatist party leader Oriol Junqueras from taking his seat in the European Parliament, despite the European Court of Justice ruling that he must. Read more “Spain’s Electoral Commission Sidesteps Courts to Ban Catalan Leaders”
French metro and railway workers have been on strike for almost a month to preserve privileges from an era when the trains ran on coal.
The people who suffer the most are workers on modest incomes who don’t own a car and normally commute into Paris by train; small businesses and shops which are understaffed; families that couldn’t get together for Christmas.
The unions behind the strikes claim they are fighting a “president of the rich” — Emmanuel Macron — on behalf of “the people”.
They aren’t. Trade unions are trying to preserve retirement rules that benefit their workers at the expense of everyone else. Read more “French Unions Put Their Own Interests Ahead of Workers’”