Economists warn Treasury is likely to raise taxes even further this year

As the NATO summit approaches, France and Germany reaffirm their commitment to countering Russian aggression, emphasizing the need for a ceasefire in Ukraine and increased military support, including enhanced defense spending. They aim to strengthen European defense capabilities, support Ukraine's sovereignty, and maintain unity among allies to address broader security challenges in a destabilized environment. Need More Context? 🔎

In light of a recent US bombardment of Iran’s nuclear sites, the upcoming NATO summit in The Hague presents an opportunity for rebuilding trust within the alliance, despite Donald Trump's unilateral actions and past ambivalence towards mutual defense commitments. European leaders, while agreeing to increase military spending and develop new defense plans, face challenges in ensuring a coordinated transition as US priorities shift, raising concerns about the future of NATO's collective security. Need More Context?...

Canada will sign a defense partnership with the EU to enhance security cooperation in response to U.S. President Trump's criticism of NATO allies' military spending. The agreement will allow Canada to join a €150 billion EU fund for joint arms procurement and includes collaboration on crisis management and support for Ukraine, amid ongoing trade tensions and increased defense spending commitments from Canada. Need More Context? 🔎

Germany's defense minister, Boris Pistorius, plans to initially implement a voluntary enlistment model to boost military recruitment, aiming to significantly increase reserve forces in response to threats from Russia. However, he is prepared to reinstate conscription if voluntary numbers fall short, as Germany seeks to enhance its military capabilities amid rising security concerns in Europe. Need More Context? 🔎

Spain's opt-out from a NATO commitment to spend 5% of GDP on defense has sparked controversy, with Poland deeming it "unjustified" and potentially harmful to alliance unity, while Belgium plans to request a similar exemption. Prime Minister Pedro Sánchez's decision, which allows Spain to maintain a 2.1% spending level, may lead to discord at the upcoming summit in The Hague, as other nations could seek similar carve-outs. Need More Context? 🔎

Belgium's migration minister, Anneleen Van Bossuyt, advocates for the EU to leverage trade and visa policies to compel less developed countries to accept returned migrants, marking a shift from Brussels' traditional separation of trade and immigration. This approach aligns with rising far-right sentiments in Europe and echoes tactics used by the Trump administration, as the EU confronts increasing asylum applications and seeks to enforce stricter immigration controls. Need More Context? 🔎