LONDON — If there’s one thing Keir Starmer has mastered in office, it’s changing
his mind.
The PM has been pushed by his backbenchers toward a flurry of about-turns since
entering Downing Street just 18 months ago.
Starmer’s vast parliamentary majority hasn’t stopped him feeling the pressure —
and has meant mischievous MPs are less worried their antics will topple the
government.
POLITICO recaps 7 occasions MPs mounted objections to the government’s agenda —
and forced the PM into a spin. Expect this list to get a few more updates…
PUB BUSINESS RATES
Getting on the wrong side of your local watering hole is never a good idea. Many
Labour MPs realized that the hard way.
Chancellor Rachel Reeves used her budget last year to slash a pandemic-era
discount on business rates — taxes levied on firms — from 75 percent to 40
percent.
Cue uproar from publicans.
Labour MPs were barred from numerous boozers in protest at a sharp bill increase
afflicting an already struggling hospitality sector.
A £300 million lifeline for pubs, watering down some of the changes, is now
being prepped. At least Treasury officials should now have a few more places to
drown their sorrows.
Time to U-turn: 43 days (Nov. 26, 2025 — Jan. 8, 2026).
FARMERS’ INHERITANCE TAX
Part of Labour’s electoral success came from winning dozens of rural
constituencies. But Britain’s farmers soon fell out of love with the
government.
Reeves’ first budget slapped inheritance tax on farming estates worth more than
£1 million from April 2026.
Farmers drive tractors near Westminster ahead of a protest against inheritance
tax rules on Nov. 19, 2024. | Ben Stansall/AFP via Getty Images
Aimed at closing loopholes wealthy individuals use to avoid coughing up to the
exchequer, the decision generated uproar from opposition parties (calling the
measure the “family farm tax”) and farmers themselves, who drove tractors around
Westminster playing “Baby Shark.”
Campaigners including TV presenter and newfound farmer Jeremy Clarkson joined
the fight by highlighting that many farmers are asset rich but cash poor — so
can’t fund increased inheritance taxes without flogging off their estates
altogether.
A mounting rebellion by rural Labour MPs (including Cumbria’s Markus
Campbell-Savours, who lost the whip for voting against the budget resolution on
inheritance tax) saw the government sneak out a threshold hike to £2.5 million
just two days before Christmas, lowering the number of affected estates from 375
to 185. Why ever could that have been?
Time to U-turn: 419 days (Oct. 30, 2024 — Dec. 23, 2025).
WINTER FUEL PAYMENTS
Labour’s election honeymoon ended abruptly just three and a half weeks into
power after Reeves made an economic move no chancellor before her dared to
take.
Reeves significantly tightened eligibility for winter fuel payments, a
previously universal benefit helping the older generation with heating costs in
the colder months.
Given pensioners are the cohort most likely to vote, the policy was seen as a
big electoral gamble. It wasn’t previewed in Labour’s manifesto and made many
newly elected MPs angsty.
After a battering in the subsequent local elections, the government swiftly
confirmed all pensioners earning up to £35,000 would now be eligible for the
cash. That’s one way of trying to bag the grey vote.
Time until U-turn: 315 days (July 29, 2024 — June 9, 2025).
WELFARE REFORM
Labour wanted to rein in Britain’s spiraling welfare bill, which never fully
recovered from the Covid-19 pandemic.
The government vowed to save around £5 billion by tightening eligibility for
Personal Independence Payment (PIP), a benefit helping people in and out of work
with long term health issues. It also said other health related benefits would
be cut.
However, Labour MPs worried about the impact on the most vulnerable (and
nervously eyeing their inboxes) weren’t impressed. More than 100 signed an
amendment that would have torpedoed the proposed reforms.
The government vowed to save around £5 billion by tightening eligibility for
Personal Independence Payment. | Vuk Valcic via SOPA Images/LightRocket/Getty
Images
In an initial concession, the government said existing PIP claimants wouldn’t be
affected by any eligibility cuts. It wasn’t enough: Welfare Minister Stephen
Timms was forced to confirm in the House of Commons during an actual, ongoing
welfare debate that eligibility changes for future claimants would be delayed
until a review was completed.
What started as £5 billion of savings didn’t reduce welfare costs whatsoever.
Time to U-turn: 101 days (Mar. 18, 2025 — June 27, 2025).
GROOMING GANGS INQUIRY
The widescale abuse of girls across Britain over decades reentered the political
spotlight in early 2025 after numerous tweets from X owner Elon Musk. It led to
calls for a specific national inquiry into the scandal.
Starmer initially rejected this request, pointing to recommendations left
unimplemented from a previous inquiry into child sexual abuse and arguing for a
local approach. Starmer accused those critical of his stance (aka Musk) of
spreading “lies and misinformation” and “amplifying what the far-right is
saying.”
Yet less than six months later, a rapid review from crossbench peer Louise Casey
called for … a national inquiry. Starmer soon confirmed one would happen.
Time to U-turn: 159 days (Jan. 6, 2025 — June 14, 2025).
‘ISLAND OF STRANGERS’
Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader
Nigel Farage breathing down Starmer’s neck.
The PM tried reflecting this in a speech last May, warning that Britain risked
becoming an “island of strangers” without government action to curb migration.
That triggered some of Starmer’s own MPs, who drew parallels with the notorious
1968 “rivers of blood” speech by politician Enoch Powell.
The PM conceded he’d put a foot wrong month later, giving an Observer interview
where he claimed to not be aware of the Powell connection. “I deeply regret
using” the term, he said.
Time to U-turn: 46 days (May 12, 2025 — June 27, 2025).
Immigration is a hot-button issue in the U.K. — especially with Reform UK Leader
Nigel Farage breathing down Starmer’s neck. | Tolga Akmen/EPA
TWO-CHILD BENEFIT CAP
Here’s the U-turn that took the longest to arrive — but left Labour MPs the
happiest.
Introduced by the previous Conservative government, a two-child welfare cap
meant parents could only claim social security payments such as Universal Credit
or tax credits for their first two children.
Many Labour MPs saw it as a relic of the Tory austerity era. Yet just weeks into
government, seven Labour MPs lost the whip for backing an amendment calling for
it to be scrapped, highlighting Reeves’ preference for fiscal caution over easy
wins.
A year and a half later, that disappeared out the window.
Reeves embracing its removal in her budget last fall as a child poverty-busty
measure got plenty of cheers from Labour MPs — though the cap’s continued
popularity with some voters may open up a fresh vulnerability.
Time until U-turn: 491 days (July 23, 2024 — Nov. 26, 2025).
Tag - Austerity
Prime minister’s questions: a shouty, jeery, very occasionally useful advert for
British politics. Here’s what you need to know from the latest session in
POLITICO’s weekly run-through.
What they sparred about: The economy. Though it’s one of the most important
issues in politics, Tory Leader Kemi Badenoch’s finance-focused grilling of
Prime Minister Keir Starmer was a curious choice, considering that the Home
Office is facing disaster after disaster.
Nevertheless: Rachel Reeves’ budget is under a month away, so speculation about
what the chancellor will pull out of her red box is at fever pitch. The Tory
leader asked if the PM “stood by” his promises not to increase income tax,
national insurance or VAT? These, of course, were in Labour’s landslide
election-winning manifesto just last year.
Watch and wait: The PM, you won’t be surprised to read, skirted around the
query, stressing the government would “lay out their plans” next month. “Well,
well, well, what a fascinating answer,” Badenoch cried after leaping to her
feet. She asked the same question in July and, back then, got a one-word answer
in the affirmative. “What’s changed in the past four months?”
Expectation management: Quite reasonably, Starmer said that “no prime minister
or chancellor will ever set out their plans in advance.” But the PM laid the
groundwork for Reeves’ pledge possibly being breached — and blaming the Tories.
The economic figures, he said, “are now coming through and they confirm that the
Tories did even more damage to the economy than we previously thought.” Expect
this claim to be repeated.
Lightbulb moment: Badenoch mentioned a number of the policies she announced at
Conservative conference earlier this month. “We have some ideas for him,” she
said about improving the economy, to cries of horror from Labour backbenchers,
calling for the abolition of stamp duty. “Why didn’t they do it then in 14
years in office?,” Starmer shot back, briefly forgetting he was meant to be
answering the questions.
Broken record: When the economy’s the topic of the day, familiar lines come out
to play. The PM condemned the Tories’ record on austerity, their “botched Brexit
deal,” and, you’ve guessed it, Liz Truss’ mini-budget. “We’ll take no advice or
lectures on the economy,” the PM cried. “They won’t be trusted on the economy
for generations to come.” The originality here is exceptional.
Cross-party consensus: Badenoch ensured she wasn’t left out, claiming the last
government reduced inflation and improved growth. “The truth is they have no
ideas,” the Tory leader crowed, as she called for the parties to work together
on welfare spending. Starmer didn’t accept that definite request in good faith,
stressing that the Tories broke the economy and “they have not changed a bit.”
Helpful backbench intervention of the week: Blaenau Gwent and Rhymney MP Nick
Smith slammed off-road bikers running riot under the Tories and asked the PM to
praise Labour’s support for the police. Starmer did exactly that. The men and
women in blue have never been so grateful.
Totally unscientific scores on the doors: Starmer 7/10. Badenoch 6/10. The Tory
leader’s economic focus in a week when a man deported to France returned across
the English Channel and a sex offender due for deportation was mistakenly
released from jail for 48 hours remains an odd decision. Despite the
government’s numerous economic challenges, the carnage over the U.K.’s border
presented an open goal for the Tories. Though the Tory leader forced Starmer not
to repeat his previous economic pledges, she wasn’t able to capitalize on that
weakness — meaning no clear winner emerged.
WASHINGTON — Former Conservative Prime Minister Liz Truss thinks the Green Party
might end up becoming the official opposition after the next election.
In an interview with POLITICO’s Anne McElvoy for the Westminster Insider
podcast, Truss said “I think there’s a certain kind of honesty about the Green
Party that you don’t see in the Labour Party,” adding that people are sick of
“technocratic managerial crap” in politics.
The former prime minister also insisted she will not be joining Reform UK in the
foreseeable future, despite criticizing her own party’s record in office. She
poured scorn on both Conservative chief Kemi Badenoch’s leadership of her old
party and on Labour Chancellor Rachel Reeves.
Asked what she made of Reeves’ claim that Truss’ controversial mini-budget in
September 2022 had contributed to Britain’s flailing economy today, making tax
increases in her budget next month inevitable, Truss shot back: “I think she is
a disingenuous liar. I have no time for Rachel Reeves. I don’t think she’s
telling the truth about what is wrong with the British economy. I think she’s
desperate … the public are now cottoning on to the fact that our country is in
serious trouble.”
She also accused the Labour chancellor of having “bought the narrative of the
Bank of England [about the dangers of the Truss mini-budget], which was a false
narrative. Now she is being hung on her own petard.”
The government has returned to the Conservatives’ economic record in preparation
for a likely tax-raising budget next month, claiming this week that “things like
austerity, the cuts to capital spending and Brexit have had a bigger impact on
our economy than was even projected back then.”
Truss took issue with this assertion. “It is ludicrous to blame Brexit for a
30-year problem,” she said. “These arguments, like the mini-budget or Brexit or
austerity, they’re just distractions from what the real problems are.”
Speaking to POLITICO, Badenoch’s leadership of the Conservative Party also came
in for a lengthy pasting from one of her recent predecessors. “I don’t believe
the Conservative Party has come to terms with why we were kicked out after
fourteen years,” Truss insisted. “What I was trying to do was shift the
Conservative Party into the nationalist space. And what I faced was huge
resistance from the Conservative blob who actually want to kowtow to the woke
agenda. They want to be part of the transgender ideology, green climate change
stuff.”
Badenoch, she believes, still needs to choose more decisively “between
representing places like Rotherham and Norfolk on the one hand and places like
Surrey and Henley-on-Thames on the other. They haven’t chosen, and that’s a
fundamental issue. And what Nigel Farage has done is he has moved into that
space. That’s an existential threat for the Conservative Party.”
But she had an optimistic assessment of the outlook for the Greens, reenergized
under Zack Polanski’s leadership. “People don’t want this kind of technocratic
managerial crap anymore. [Polanski] might end up leader of the opposition at
this rate,” she said. “I think there’s a certain kind of honesty about the Green
Party that you don’t see in the Labour Party … because there’s nothing for
people to believe in.”
Truss was speaking during a trip to Washington, D.C. and Virginia, where she met
with leading figures from the conservative MAGA movement. In an extensive
interview, Truss hinted, however, that her position could change when it comes
to staying above the party fray.
Asked how she saw Reform, she retorted: “I’m not offering my services,” even if
there is a chance of bumping into its leader, Farage, who enjoys close links
with U.S. President Donald Trump’s White House. However, she didn’t shut the
door on some alignment with Reform: “I’m doing what I’m doing on an independent
basis for now … reaching out to people, to network and to understand the lie of
the land. I’m not going to say … my definite plans for the future.”
Truss resigned three years ago after just 49 days — the shortest period in
office of any British prime minister. After losing her seat in last year’s
general election, she has made regular visits to the U.S., attending right-wing
conferences and conventions where she has praised Trump.
Last week she joined a roster of Christian conservatives who support the MAGA
movement. She spoke at a business summit at Liberty University in Virginia,
founded by the late televangelist and conservative activist Jerry Falwell,
alongside Gen. Mike Flynn, the former national security adviser to Trump, whose
stump speeches described a Manichean fight between good and evil and Trump as
the nation’s savior.
Reflecting on the event afterward, Truss told McElvoy: “There’s a huge amount we
can learn from [Trump] and what is happening in America and the MAGA revolution
in the U.K. and Europe.”
Asked if she identified with the more fundamentalist view of religion and
politics of the evangelical pro-Trump activists, she described her work
“mission” to remake the U.K. and said: “I think the [Church of England] needs
to be restored to its former glory … it needs serious change.”
Even Badenoch, who has fought “woke” institutions and now wants to abandon the
Climate Change Act, remains in hock to “modernizers” who Truss believes still
control the party. But she had a positive word for Shadow Justice Secretary
Robert Jenrick’s recent plan to restore the lord chancellor’s direct role in
appointing judges. “I did agree with his policy on that — he’s right about it.”
Liz Truss said she is “not offering services” to Reform UK, even if there’s a
chance of bumping into its leader, Nigel Farage, who enjoys close links with
U.S. President Donald Trump’s White House. | Neil Hall/EPA
Truss remains defiant about the circumstances of her resignation as prime
minister. She admitted to having been “upset to be deposed,” but was dismissive
of her detractors and the jokes about her premiership being outlasted by a
supermarket lettuce. “The people who joke about it or take the mick … I mean if
I had been just a truly kind of mediocre, incompetent prime minister, I wouldn’t
have been deposed. We’ve had plenty of those. I was deposed because people
didn’t like my agenda and they wanted to get rid of me.
“We’ve had years and years of pantomime personality politics, like Angela
Rayner’s tax bill. And it doesn’t actually change the fact that the country is
going down the tubes. And until the public and journalists understand where
power and the British system actually lies and start to challenge it, start to
question it … nothing will change.”
TWO YEARS OF ANTI-GOVERNMENT PROTESTS RAISE QUESTIONS ABOUT ORGANISING AROUND
COLLECTIVE STRUGGLES
~ Antti Rautiainen ~
The current government of Finland has been called the most right-wing
administration in the country’s political history. It formed in 2023 through a
coalition of the centre-right National Coalition Party, the far-right populist
party Perussuomalaiset (The Finn’s), the Swedish People’s Party, and the
Christian Democrats. The integration of dissenting parties into unorthodox
coalitions has been a long tradition in Finnish politics. Under the current
government Finland has become a testing ground for the incorporation of
anti-immigrant, right-wing populism into national politics.
Since the election, anarchists and radical left organisations formed coalitions
around common struggles heightened by the new government. In 2025 anarchists
have made attempts to resume the anti-government protests however, but have
failed to reach beyond anarchist and radical left circles. The question raised
across the two years of organising is, how to struggle together against
conditions of economic stagnation and decline?
The context of Finnish politics is an economy hit by several crises at once.
Finland’s economy has not recovered since the 2010’s which brought the
Eurocrisis and the collapse of Nokia, a company which generated up to 5% of GDP.
There is also a continuous decline in traditional exporting industry, made worse
by the full-scale war in Russia, and a population aging faster than average. In
2023 the centre-left coalition was defeated by a narrow margin and the
neoliberal National Coalition Party quickly found a common language with
far-right populists, offering term of ‘you are free to bash migrants as long as
we may bash the trade unions.’ The four-party coalition has set up a government
program of austerity. This includes budget cuts to every sector except defence,
tax cuts for the rich, and various anti-migrant policies to appease the
right-wing populists.
Within weeks of the new government forming, two of the biggest anti-government
street demonstrations erupted. Nazi jokes made by the Minister of Economic
Affairs, Vilhelm Junnila, alongside his speech at a fascist demonstration was
reported by the national media. This scandal and the general shock at the
inclusion of the far-right populists into the government sparked the ‘Zero
Tolerance Against Fascism’ demonstration, attended by 10,000 people on 19 July
2023. In September 15,000 people gathered for the ‘We Won’t Be Silent’
demonstration, demanding the resignation of racists and fascists from the
government. Although Junnila resigned, the vague demand of opposing racism was
neatly resolved by the government promising to create a position paper on the
topic. Already by mid-September 2023, vast majority of the liberal contingent of
the anti-racist protest disappeared from the streets and has not been seen
since. However, the anti-government movement was far from over.
At the September demonstration anarchists joined with a banner stating ‘If
something is to be cut, let’s cut the head of Petteri and Riikka’ referring to
the austerity cuts by premier Petteri Orpo and state treasurer, and chairperson
of Perussuomalaiset, Riikka Purra. The slogan, originally an adaptation of the
UK newspaper Class War cover ‘The Best Cut Of All’ protesting Thatcher’s cuts,
provoked media uproar. The backlash successfully sidelined the anti-racists
agenda of the demonstration, and protest organisers publicly distanced
themselves from the anarchist collectives. No other groups made much effort to
introduce wider social issues into the liberal anti-racist mood of the movement.
We Won’t Be Silent demonstration, 3rd September 2023
The summer of 2023 also saw a coalition between five Helsinki-based ultra-left
groups swiftly created. This included A-ryhmä (a local anarchist groups since
2006), Extinction Rebellion, and three groups inspired by autonomous Marxism.
Extinction Rebellion, established a week after the original UK group, brought
more activists than the others combined. Together they organised the ‘Hands
off!’ demonstration timed to match the government’s budget negotiations on 19
September 2023. The four major demands were to halt budget cuts, defend right to
asylum, defend the right to strike, and the protection of biodiversity.
Hands off! Demonstration, 19 September 2023
The demonstration drew 600 participants and was considered unsuccessful. The
most likely reasons it failed to draw similar sized crowds as the ‘We Won’t Be
Silent’ demonstration a week earlier was an inconsistent promise to blockade a
government building, to narrow a coalition, horrible weather, and lack of
widespread promotion.
It is also representative of the fragmentation of anti-government protest. The
day for ‘Hands Off!’ was also the launch date for students occupying Helsinki
University’s main building, opposing the cuts to education and student welfare.
The movement eventually spread to 16 higher education institutions and 10 high
schools/trade schools. They failed to raise demands wider than their immediate
self-interest, and the occupation failed to achieve their goals.
Additionally, the Palestinian solidarity movement has been a major focus for
anti-government protest. Although the Christian Zionist movement has
traditionally been stronger in Finland than support for Palestine, this is no
longer the case. In 2023 demonstration against the genocide in Gaza occurred
almost weekly and have not dwindled in the two years of the right-wing
government. The protests created a government crisis to recognise Palestinian
statehood, however under pressure from the Christian Democrats and
Perussuomalaiset the prime minister could not pursue it. With so many
mobilisations, participants spread thin, unity was elusive. Meanwhile, the
government pressed on with its agenda.
One of the biggest challenges to the right-wing government came from the trade
unions. In December 2023 the unions launched the direct-action campaign,
‘Painava SYY’ (Serious Cause) which rejected many of the government’s reforms
including: cuts to unemployment and benefits, restricting political strikes to
one day, and changes to contracts which would limit pay rises and weaken
employment security. From the three central unions, SAK, STTK, and Akava, only
SAK undertook serious strikes action, organising rolling-one day strikes across
industries. This culminated in a one-month port strike between March-April 2024.
This was expected to halt foreign trade and result in serious disruption,
however there no major industry shutdowns. Due to decreasing opinion polls in
support of strike action, or the lack of willingness to really rock the boat,
SKA ended the campaign before imposing a general strike and won slightly less
strict changes to employee’s contracts.
As the unions chickened out, anarchists continued to call for a general strike.
The ‘Hands-Off!’ coalition organised an event to discuss the history of a
general strike in Finland and gathered 400 people in a general strike bloc at
the Mayday marches of the unions and left-wing parties. This reached further
than the usual anarchist circles, but failed to instigate a general strike.
Throughout 2023-2024, ultra-left coalitions remained active in anti-government
and anti-fascist organising. A coalition between A-ryhmä, anti-fascist Varis
network, and Left Youth created in 2016, continued its annual counter
demonstration against the far right ‘612’ march on 6 December 2023. The march
was created by Nazi organisation Nordic Resistance Movement and other Finnish
far-right groups. In 2023 right-wing populists deserted the march, leaving it
for fascists alone. For several hours, 1,500 counter-protestors occupied the
square, delaying the march, and demoralising the fascists. In 2024, right-wing
populist MP Teemu Keskisarja attended the march, however, despite the backing
from parliament, fascist numbers were again decreasing.
Also in 2024, the fascist ‘Blue-Black Movement’ party attempted to organise
reading circles in public libraries, using a legal loophole designating
libraries as free public spaces for any groups use. In Helsinki, reading circles
were organised and the library administration was first adamant to permit the
fascist gatherings. Due to loud anti-fascist protests inside the library, the
library reconsidered the interpretation of law and the fascist gatherings were
pushed out from public libraries nationwide. Additionally, in April, the ‘Hands
Off!’ coalition organised the ‘Unruly Street Party’ where 400 people gathered
and was continued with a squatting in a former manor house close to government
officials’ residences. The house was evicted after 7 weeks; however, another
former manor house was occupied further from the centre of the city, and
remained occupied until December.
Kaaoskartano (Chaos mansion), squatted 19 April 2024.
Active demonstrations and protests against the right-wing government diminished
through 2024. The trade unions rounded up their direct-action campaign and the
‘Hands Off!’ coalition collapsed as Extinction rebellion moved forwards with a
campaign to propose more ‘environmentally friendly’ cuts. The Left party won the
EU parliament elections of June 2024, gaining 17% of the vote. After this, most
leftists seem to be happy to wait for the next parliamentary elections.
In April 2025 anarchists resumed anti-government protests by forming a queue for
bread to the prime minister’s residence in Helsinki. The protest failed to reach
beyond the anarchist and radical left circles with around 300 demonstrators
attending the event. Despite two years of efforts from anarchists and the
radical left to form coalitions around common struggles, it is clear that
different organisations and groups pursued their own agenda without attempting
to unite on common struggles.
Despite this, there are positives from the anarchist, anti-fascists coalitions,
and wider anti-government protests of 2023-2024. Fascists were successfully
marginalised and pushed out of public libraries, unions showed their strength
and gained minor concessions, and Palestine solidarity showed endurance and
provoked a government crisis.
Yet, some big questions remain as the Finnish economy stagnates and the
right-wing coalition remains in power. In 2024, the Finnish economy was the
worst in Europe, and currently the unemployment rate of 9.9% is behind only
Spain. How can growing number of unemployed people be organised? How can
anarchists intervene in trade union struggles when they are hostile to outside
intervention? How to united anti-racist and social struggles, and stop the
fragmentation of struggles?
--------------------------------------------------------------------------------
This article has been adapted from a lecture given at anarchist days, Dresden,
21st September 2024. It has been updated with recent developments. The lecture
is available on YouTube and Spotify.
The post Finland: Struggles against the right-wing government appeared first on
Freedom News.
92 INJURIES, 11 MISSING AS ANTI-AUSTERITY MOVEMENT ENTERS THIRD WEEK
~ from cubadebate ~
Indigenous leader Efraín Fuerez, recognized for his community work in Mingas,
was gunned down Sunday while marching in protest against high costs of living
and government crackdowns that include freezing the bank accounts of activists
and suspending a media organisation.
The number of attacks has been documented by the Ecuadorian Human Rights
Alliance, a group of 14 organisations that emerged after the 2019 national
strike. In its most recent bulletin, the organization blamed the state for the
spiral of violence and warned that, “the risk persists for those demonstrating
in the streets, those who provide media coverage, and those providing
humanitarian assistance and human rights monitoring.”
According to the organisation, 70% of the documented violations have been
committed by the Armed Forces and the National Police, with more than half of
the incidents concentrated in Imbabura. Quito and Cotopaxi also record high
numbers, with 30 and 10 cases, respectively.
Meanwhile, the Federation of Indigenous and Peasant Organisations of Azuay (FOA)
denounced, “disproportionate armed repression” and arbitrary arrests during the
night of September 30. The group stated that a group of unarmed community
members—including women and senior citizens—were violently intercepted and that
six people were detained, one of them with serious facial and head injuries.
The government, for its part, reported 12 soldiers were injured and 17 were held
captive by protesters. All were later released, although several suffered
fractures, bruises, and burns. Two police officers were also detained this
Wednesday in Chimborazo while working to reopen a highway.
The crisis has prompted reaction from the international community. UN
Secretary-General António Guterres expressed his, “deep concern” about the
events and called for respect for the right to peaceful protest. Domestically,
the National Assembly has launched investigations, although it is divided
between two committees vying for authority over control of the security forces.
Conaie president Marlon Vargas described Fuerez’s death as a, “state crime” and
ratified the continuation of the protests. In contrast, the Federation of Kichwa
Peoples of the Sierra Norte announced a, “temporary truce” as a gesture of good
faith to facilitate a possible dialogue with the executive branch, although it
clarified that, “the resistance remains strong in the streets.”
The situation has also had a strong impact on the press. Fundamedios and the
Alliance for Human Rights have recorded nine attacks on freedom of expression,
including tear gas, physical attacks, and arbitrary arrests of journalists, in
addition to hostility from some groups of protesters. Crews from Radio Pichincha
and the Associated Press reported damage to their vehicles and attacks during
coverage in Quito.
In an unusual gesture, a group of military personnel publicly apologised for
Fuerez’s death in Cotacachi, lighting candles at the site of his death and
sharing a minute of silence with the local population.
Tensions in Ecuador persist after more than a week of demonstrations that have
left a growing number of victims and a political landscape marked by
confrontation between the government, indigenous and social organisations, and
international demands for respect for human rights.
--------------------------------------------------------------------------------
Machine translation. Image: Screen capture from Ecuvista
The post Ecuador: Indigenous leader gunned down in social protests appeared
first on Freedom News.
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Under the jackhammers on Schuman, Brussels is filling back up for the rentrée —
and the fault lines are showing.
Host Sarah Wheaton is joined by colleagues Clea Caulcutt, Nick Vinocur and Paul
Dallison to unpack a cliff-edge week: France’s confidence vote on an austerity
budget that could topple Prime Minister François Bayrou and push Paris back into
chaos; Europe’s next moves on Ukraine; and Ursula von der Leyen’s big address in
Strasbourg on the EU’s place in a shifting world. It’s a tough speech to
deliver, with few clear wins to trumpet.
Plus, our resident comedian brings von der Leyen bingo back: Place your bets on
how many times she will say “competitiveness.”
PARIS — French Prime Minister François Bayrou’s last-ditch attempt to woo the
far-right National Rally and thereby prevent his government from collapsing came
up short, party President Jordan Bardella said.
“The miracle did not happen, the meeting today will not change the position of
the National Rally,” Bardella told reporters Tuesday after he and Marine Le Pen
met with Bayrou.
Bardella said that Bayrou had crossed some of the National Rally’s red lines
with the unpopular €43.8 billion budget squeeze that will be at the heart of a
confidence vote on Monday. The far right believes Bayrou did not sufficiently
target costs associated with immigration and European Union membership.
“If the question is: Do we have confidence in this government? The answer is no,
we don’t,” said Le Pen.
Bayrou is holding talks with parties from across the political spectrum this
week, ostensibly to find common ground. After the prime minister unveiled his
plans to hold a confidence vote last week, France’s political opposition quickly
said they would vote to bring down his minority government, leaving the longtime
centrist little hope of survival.
According to Le Pen, Bayrou already knows his government is toast.
“He chose to hit the eject button, and then lead consultations. If he really
wanted to talk in earnest, he would have started negotiations as early as July,”
she said.
Should Bayrou fall, it’s unclear how French President Emmanuel Macron will find
a way out of deadlock. Opposition parties have shown little appetite for budget
cuts necessary to balance France’s books and stave off growing concerns about
runaway public spending in the eurozone’s second-biggest economy.
The French president has already started consultations on who might replace
Bayrou as prime minister, according to several of his allies.
“He’s trying to walk a tightrope” and find a new prime minister who can get a
budget through parliament and not get toppled, said one person close to Macron.
Several names have started circulating in the French press, including Defense
Minister Sébastien Lecornu, Justice Minister Gérald Darmanin and Economy and
Finance Minister Éric Lombard.
But on Tuesday, Le Pen dampened early hopes of a compromise with any future
prime minister backed by the French president.
“It’s the Emmanuel Macron’s policies that are toxic,” she said. Bayrou’s
successor would have to “break” with Macron, she said, if he wanted to survive
for any length of time.
Public spending cuts ain’t austerity, French Prime Minister François Bayrou
argued on Thursday in his latest push to save his minority government from
collapsing.
“This is not austerity, it is a slowdown in additional [public] spending so that
the country can recover,” he told a conference organized by France’s largest
employers’ association, MEDEF.
Bayrou’s speech was the latest stop on his blitz public relations campaign to
convince voters that their elected representatives who plan to take down his
government over an unpopular €43.8 billion budget squeeze are making a major
mistake.
“We are living in a critical moment in our national history,” Bayrou said. “Our
heritage, the landscapes we have inherited, and the cultural wealth of our
country, are under threat. Every business and every family is threatened by the
decline of our public finances.”
Bayrou on Monday announced he would hold a confidence vote on Sept. 8 to seek
parliament’s approval to forge ahead with his slimmed down budget for next year.
The spending plans are designed to rein in the budget deficit and assuage French
creditors, financial institutions and ratings agencies concerned by the
country’s unsustainable levels of public spending.
Opposition lawmakers, however, have already come out against the longtime
centrist and said they would use the vote to bring down his government.
In the days that have followed, the prime minister has taken to the airwaves to
convince voters directly of the need to balance France’s books and express an
openness to negotiation — so long as his political opponents agree on the need
for drastic action.
“These proposals [to cut public spending] are all open for discussion and can be
amended, provided that they do not undermine the outcome of the necessary effort
that needs to be made,” Bayrou said.
During his speech Bayrou hit back at his critics, saying “they have it all
wrong” and are actually working against securing a prosperous economy for the
next generation.
“We are accepting that [young people] are being enslaved by having them spend
decades repaying loans that were so lightly contracted by previous generations,”
he said.
The prime minister and his allies have warned that without a course correction,
the eurozone’s second largest economy could face a debt crisis on the level of
the one that rocked the European Union in the 2010s.
“Just look at the example of all the countries around us — Spain, Portugal,
Italy, not to mention Greece — which had to make unprecedented sacrifices to get
their public finances back on track,” he said.
BRUSSELS — Romania’s fledgling government is made up of the country’s most
pro-European politicians, but that hasn’t stopped them citing Brussels as a key
reason why they need to impose a drastic set of tax hikes and spending cuts to
avert financial collapse.
For the past five years, Romania has been spending way beyond its means — in the
words of new President Nicușor Dan, eating a large pizza while only paying for a
medium-sized one — and has a projected budget deficit of around 9 percent of
economic output this year, the highest in the European Union.
That record of poor fiscal management has provoked repeated reprimands from the
European Commission, which Prime Minister Ilie Bolojan now says can no longer be
ignored. This week, ministers from EU countries will vote to decide on a strict
plan setting out exactly what Romania must now do to restore order to its public
finances.
Even before Tuesday’s vote in a meeting of EU economy and finance ministers,
Romania’s new prime minister is pushing through a dramatic package of austerity
measures that will deal a blow to economic growth, as well as hammer the
government’s popularity.
But without action now, Bolojan argues, the country will face the wrath of the
Commission and — worse than that — the prospect of a downgrade from credit
rating agencies, potentially reducing Romanian government debt to “junk” status.
That would risk a spiraling financial meltdown, and the prime minister has
warned of the risk to salaries and pensions if the country’s creditors lose
faith.
“Access to European funds is conditional on fiscal reform; without it, we would
lose access to these funds,” Bolojan told reporters last week. “Think about what
it would mean if we could not continue half of the investments currently
underway, in major highways, rail lines, and projects in every locality across
Romania. This would place us at risk of being downgraded again into so-called
junk status, making our country unattractive to investors.”
He added: “We cannot let our country end up in a situation like Greece.”
Speaking in an interview with the Antena 3 CNN channel, Bolojan said Romania’s
previous approach of promising its creditors and the EU that it will reduce its
deficit, only to keep spending more than it can afford, resembled the fable of
the boy who cried wolf. “Given that you often announce that it will happen and
it doesn’t happen, when that thing really happens, no one believes you that it
will happen and no one helps you anymore,” he said.
‘AUTUMN OF DISCONTENT’
The fiscal crisis is a huge test for the new administration of Dan, the centrist
former mayor of Bucharest, who was elected president in May. He saw off a
challenge from far-right populist George Simion to win the presidency, promising
to clean up corruption, keep Romania on its pro-Western path supporting Ukraine,
and to tackle the country’s ballooning debts.
Dan said before he was elected that he was opposed to raising VAT, but Bolojan’s
package of reforms envisages large increases in these taxes, including on food,
alongside other painful measures such as capping public sector pensions and
salaries, requiring teachers to work longer hours, increasing excise duties on
fuel, alcohol and tobacco, and taxing gambling winnings and bank profits.
The first tranche of these reforms is due to come into force in August, with the
second phase starting Jan. 1 next year. Bolojan must pass his reforms through
Romania’s parliament, though most observers believe the four-party coalition
will remain united and that this legislative step will not prove to be a major
hurdle for the prime minister.
The public reaction is another matter.
“We will see the PM and the parties of government fall in the polls,” said Radu
Magdin, a former Romanian government adviser who is now CEO of Smartlink
Communications. While riots are “less likely,” public protests may follow the
next fiscal packages, he said. “The advantage the government has is that it’s
summertime. The disadvantage is the autumn of discontent coming in September,
after the holidays.”
Romania’s new prime minister is pushing through a dramatic package of austerity
measures that will deal a blow to economic growth. | Robert Ghement/EFE via EPA
On Tuesday, the EU’s finance ministers will set the parameters for what Brussels
wants to see from Bucharest’s reform plans, though it’s not likely that they
will have had a chance to take account of Bolojan’s latest austerity blueprint.
Romania will then have until Oct. 15 to produce a budget that meets the EU’s
requirements for reducing its deficit.
According to Daniel Dăianu, chair of the Romanian Fiscal Council, which advises
the government on spending, the country must bring the deficit down to below 6.5
percent of gross domestic product by 2026.
“Expenditures cuts and tax increases will affect GDP growth, but they are
unavoidable,” Dăianu said in a recent presentation.
Romania’s new government is bracing for a baptism of fire as its drastic
measures to slash the highest budget deficit in the EU are likely to provoke a
severe backlash.
The potentially inflammatory ideas under consideration include slashing 20
percent of civil servant jobs — at least 167,000 people — ramping up value-added
tax and creating a new tax on gambling.
The deficit stood at 9.3 percent of gross domestic product in 2024, and failure
to haul it down could see the country’s sovereign rating downgraded. That would
increase borrowing costs and potentially further widen the deficit. Romania also
risks the suspension of EU regional development and post-pandemic funds.
A four-party coalition led by liberal Prime Minister Ilie Bolojan was just sworn
in on June 23 — and the pushback has already begun.
Civil servants working in the building that houses the prime minister’s office
on Friday protested against draft legislation that would cut bonuses and the
number of extra days off for those working in dangerous conditions, Digi24
reported. The government postponed a discussion on the topic amid calls for
union talks.
The European Commission asked Romania to reduce its deficit to 2.8 percent of
GDP by 2030 in a draft recommendation to be discussed at a July 8 meeting of
economy and finance ministers.
Getting there will be painful. In addition to slashing the civil service, new
taxes on gambling and increases in excise duties are expected, according to a
draft government plan.
The new government also plans to increase the tax on profits and dividends to 16
percent from 10 percent, and to raise the VAT rate on firewood and other energy
products to 9 percent from 5 percent. Some other reduced VAT rates, excluding
food and medicines, would increase to 19 percent.
“This correction is so extensive, so far-reaching, that pain cannot be avoided,”
said Daniel Dăianu, a former finance minister who presides over the Romanian
Fiscal Council, which advises the government on budget issues. He added that the
balancing would be “a day of reckoning” for Romania.
The new government also plans to reevaluate investment projects, and to restrict
government support programs to those that would increase exports, decrease
imports and create added value.
“We have to convince Romanians, international financiers and the Commission to
come together in this effort to avoid a [sovereign rating] downgrade that would
trigger a more complicated and more painful situation for Romania,” Finance
Minister Alexandru Nazare told reporters.
PAINFUL REFORM
Ana Otilia Nuțu, a public policy analyst at the Bucharest-based Expert Forum
think tank, said it was difficult for the government “to sell austerity when you
see the same tired faces in government [that] people voted massively against.”
President Nicușor Dan plans to discuss tax evasion as a threat to national
security with Romania’s top national security officials at a meeting on Monday.
| Robert Ghement/EPA
The new government comprises three of the four parties that have overseen a rise
in the budget deficit over the past few years: the center-left Social Democrats,
the center-right Liberals and the UDMR Hungarian minority party.
Siegfried Mureșan, a liberal member of the European Parliament, said Bolojan had
demonstrated an ability to successfully manage budget cuts as mayor of the
northwestern city of Oradea.
“Ilie Bolojan has a true reformist track record,” Mureșan said. “He made the
institutions he led more efficient, he reduced the number of civil servants.”
Expert Forum’s Nuțu said austerity measures would be “terribly unpopular” if the
government doesn’t reduce unnecessary public expenditures such as high pensions
for former civil servants. “People will be very angry and we will continue to
see, in the next elections, that they will blow everyone away,” she said,
predicting a potential further rise in hard-right populism.
Nuțu and Dăianu pointed to efforts to collect more VAT as one area that could
bring significant gains in reducing the deficit.
The gap between total potential VAT revenues and what the Romanian tax
authorities collected in 2022 was €8.5 billion — or more than 30 percent of the
total that could be collected, according to the latest Commission data.
“There will be a forceful intervention in this area,” said Victor Negrescu, a
Social Democrat member of the European Parliament.
Romania’s tax authority needs to digitize to target evasion, he said, adding
many people run unregistered economic activities and don’t pay the taxes due.
President Nicușor Dan plans to discuss tax evasion as a threat to national
security with Romania’s top national security officials at a meeting on Monday.
The Fiscal Council’s Dăianu said the new government still had to produce an
impact assessment of most of the measures it is considering. But in a positive
scenario, these could pull Romania’s budget deficit under 8 percent of GDP by
the year’s end, he predicted.
“The numbers are still approximate, but I believe Romania will avoid a
downgrade,” Dăianu said.