Reeves plans billions in benefits and other spending cuts

The UK and EU are at an impasse over a youth mobility scheme crucial to post-Brexit relations, with only two weeks until a pivotal summit in London. The EU seeks a dedicated visa for young people to work and study in the UK, while the UK proposes a limited scheme with no rights for dependants or benefits. Additionally, the two sides plan to announce a Security and Defence Partnership and discuss co-operation on various issues,...

Poland’s central bank, the National Bank of Poland, has cut its benchmark interest rate for the first time since Prime Minister Donald Tusk's return to power, lowering it by half a point to 5.25% due to a drop in inflation from 4.9% in March to 4.2% in April. Tusk had pressured the bank to lower rates ahead of the May 18 presidential election, claiming it was “high time” for a cut. Economists suggest further rate...

SummaryDuring a meeting at the Élysée Palace, French President Emmanuel Macron and German Chancellor Friedrich Merz announced the formation of a Franco-German defence and security council to enhance cooperation amidst rising threats from Russia and uncertainties regarding U.S. support. Merz emphasized the need for increased European defense spending and continued backing for Ukraine, while both leaders expressed a desire to strengthen their nations' partnership and address challenges in trade and energy. Macron and Merz aim...

SummaryBrussels plans to propose tariffs on Boeing aircraft as part of potential retaliation against the US if trade talks fail, targeting about €100bn of annual US imports, including civilian aircraft. These measures hinge on the EU making progress in reducing US tariffs and require approval from a majority of member states. US President Trump recently reduced additional tariffs on EU exports from 20% to 10% for 90 days to facilitate negotiations, while existing tariffs on...

European companies are raising concerns over the euro's significant rise against the dollar, which has surged over 9% to a three-year high, threatening exporters already affected by US tariffs. Major firms like SAP, Porsche, Heineken, and Schneider Electric warn that this strong euro undermines their competitiveness in the US market, with potential profit losses projected in the hundreds of millions. Analysts predict that if the euro continues to strengthen, it could lead to reduced demand...

SummaryNick Thomas-Symonds, the European relations minister, announced that the UK is considering a youth mobility scheme as part of a new strategic partnership with the EU, to be discussed at a summit on May 19. This potential scheme aims to facilitate work and study opportunities for young adults between the UK and EU member states while maintaining government red lines on immigration. Thomas-Symonds emphasized the importance of a broader agreement that includes security, fisheries access,...