logo
'Flexible' NATO spending targets affordable for Italy, PM Meloni says

'Flexible' NATO spending targets affordable for Italy, PM Meloni says

Straits Times25-06-2025
Italian Prime Minister Giorgia Meloni speaks to the media at a NATO summit in The Hague, Netherlands June 25, 2025. REUTERS/Claudia Greco
ROME - New NATO targets for higher defence and security spending are affordable for Italy as they give countries "total flexibility" on how to reach them, Prime Minister Giorgia Meloni said on Wednesday.
Speaking to reporters at the end of a NATO summit in the Netherlands, Meloni said "not a single euro" would be diverted from other budget priorities to fund the planned increase in defence spending.
NATO leaders backed a plan to raise overall defence spending to 5% of gross domestic product (GDP) by 2035, from the current 2% goal, to heed demands from U.S. President Donald Trump that Europe pay more for its own security.
Countries would have to spend 3.5% of GDP on core defence - mainly troops and weapons - and 1.5% on broader defence-related measures such as cyber security, protecting pipelines and adapting roads and bridges to handle heavy military vehicles.
"I am persuaded that the new targets are sustainable, there is total flexibility," Meloni said, adding no minimum annual spending increase would be required.
She did not elaborate on how heavily-indebted Italy would fund the new commitments.
Only 17% of Italian supporting increasing defence spending, according to a poll by the European Council of Foreign Relations, the lowest proportion among 12 European countries surveyed.
Meloni said her government had no immediate intention to use an EU flexibility clause that halts disciplinary measures for countries that break the bloc's deficit rules in order to spend more on defence.
"For 2026, we do not think we need to use the clause, for the years to come we will evaluate based on what the economic situation is," she said.
Meloni also said she was confident the European Union and the U.S. could end a trade dispute with an agreement on reciprocal 10% tariffs.
"A 10% tariff base would not be particularly impactful for our firms," she said. REUTERS
Join ST's Telegram channel and get the latest breaking news delivered to you.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Police block roads to Kenyan capital on anniversary of pro-democracy protests
Police block roads to Kenyan capital on anniversary of pro-democracy protests

Straits Times

timean hour ago

  • Straits Times

Police block roads to Kenyan capital on anniversary of pro-democracy protests

Sign up now: Get ST's newsletters delivered to your inbox An empty road where the police had restricted traffic ahead of protests. NAIROBI - Police blocked major roads leading to Nairobi and heavily restricted vehicle traffic on July 7, Reuters witnesses and Kenyan media said, as the country braced for protests to mark the anniversary of pro-democracy rallies. Activists rally each year on July 7 to mark the date in 1990 when opponents of then-president Daniel Arap Moi launched a bid to transform the country into a multiparty democracy. The protest is called 'Saba Saba' – 'seven seven' in Kiswahili – because of the date. The 2025 rally comes after largely youth-led protests in June 2024 that initially focused on tax hikes but expanded to cover issues such as corruption, police brutality and unexplained disappearances of government critics. The government is committed to protecting life and property during protests, Interior Minister Kipchumba Murkomen said on his X account on July 6. 'Our security agencies are on high alert to deal decisively with criminals and other elements of ill intent who may seek to infiltrate peaceful processions to cause havoc, mayhem, or destruction of property,' he said. On July 6, unidentified people forced their way into the offices of the non-profit Kenya Human Rights Commission to stop a press conference ahead of the protests on July 7. At least one person, a board member, was injured, said Mr Ernest Cornel, who works at the commission. Police spokesperson Muchiri Nyaga did not immediately respond to Reuters' request for comment. Most schools and at least one shopping mall remained closed on July 7, Reuters witnesses said. The death of teacher and blogger Albert Ojwang in police custody in June gave fresh impetus to protests, with the government-funded Kenya National Commission on Human Rights reporting 19 deaths across the country during demonstrations in June. Prosecutors approved murder charges against six people, including three police officers, over Mr Ojwang's death. All six pleaded not guilty. REUTERS

Calls grow for China's household sector to be bigger economic driver
Calls grow for China's household sector to be bigger economic driver

Business Times

timean hour ago

  • Business Times

Calls grow for China's household sector to be bigger economic driver

[BEIJING] Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. Leaders are gathering proposals for their 15th five-year plan, a voluminous document that lays out priorities up to 2030. The plan is expected to be endorsed at a December Communist Party conference and approved by parliament in March. Policy advisers said that while they expect the document will elevate household consumption to a top goal in principle, it is likely to stop short of laying out an explicit target. Household consumption currently accounts for 40 per cent of gross domestic product, some advisers propose China should aim for 50 per cent over the next two five-year cycles. Economists have long urged Beijing to switch to a consumption-led economic model and rely less on debt-fuelled investment and exports for growth. While China has so far largely withstood pressures from higher US tariffs, fresh worries about industrial overcapacity, factory deflation and the resulting stress on jobs and incomes have heightened calls for a shift in long-term strategy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Relying on external demand makes us vulnerable to global shocks,' a policy adviser said on condition of anonymity due to the topic's sensitivity. 'We should strengthen domestic consumption as a key driver of growth and economic transformation,' said the source, echoing calls from two other advisers Reuters spoke with. A fourth adviser said his proposals would not include this recommendation as 'this is not something that can be easily achieved without the correct policies and reforms'. New urgency Calls for a more robust consumer sector are not new. While Beijing has pledged structural changes for more than a decade, its household consumption share of GDP is roughly where it was in 2005 and far below the OECD average of 54 per cent. The difficulty, analysts say, is that China has to shift resources from the business and government sectors to households in ways that could slow growth. Japan entered its decades-long stagnation period with a household share of GDP of 50 per cent in 1991. That only grew to 58 per cent by 2013, before dipping back to 55 per cent. A 14th five-year plan progress report from 2023 lamented 'insufficient mechanisms' to boost consumption. The policy proposals for the 15th plan are largely the same ones Beijing had promised before, the advisers said. These include bolstering welfare, relaxing an internal passport system blamed for deep urban-rural inequality, and other measures, including tax changes, to redistribute income towards those who have less and are more likely to spend it. New proposals include using state-owned assets to shore up pension funds and propping up the wobbly stock market and the crisis-hit property sector to increase households' investment earnings. 'We have to increase household incomes, we have to boost transfers to low-income groups, but we have seen wage cuts,' said a second adviser. He added that household demand has taken on increased importance at the upcoming five-year plan, with discussions focusing on whether China should set a specific consumption target. Yang Weimin, vice-chairman of the China Centre for International Economic Exchanges think-tank, said last month that China should raise household consumption to over 50 per cent of GDP by 2035. Balancing act The advisers expect the goal from the 14th plan to keep the manufacturing share of GDP relatively stable will survive another five years. State-guided investment has turned manufacturing into a key growth engine. But an argument is emerging that investing more in an industrial complex that already accounts for a third of global manufacturing brings diminishing returns. A prominent Communist Party magazine last week called for a crackdown on price wars in various industries, in a nod to China's overcapacity and deflation. Peng Sen, chairman of the China Society of Economic Reform, said in comments posted on the WeChat account of the Changan Avenue Reading Club, an informal body backed by senior officials, that sluggish consumption also hurts manufacturing profits and endangers jobs. Peng said in March that China should boost final consumption, which includes household and government spending, as a share of GDP to 70 per cent by 2035. The share stood at 56.6 per cent in 2024. But not all of China's policy thinkers favour consumer-led growth. In a June article in financial outlet Yicai, government economist Yu Yongding said the concept was 'theoretically incorrect' and incompatible with long-term development. 'Without investment, there is no growth and without growth, sustained consumption is difficult to achieve,' Yu wrote. As with the previous five-year plan, China is unlikely to set a specific GDP growth target for the next cycle, the advisers said. China targets a growth of around 5 per cent this year, the same goal as in 2024. But ambitions laid out in 2021 to double the size of the economy by 2035 remain, the advisers said. This, as in the past, might mean delaying painful reforms needed to rebalance the economy towards consumption, analysts say. 'Growth during this period cannot be lower than 4 per cent,' said a third adviser. 'We won't accept anything less.' REUTERS

Poland imposes checks on German and Lithuanian borders amid migration fears
Poland imposes checks on German and Lithuanian borders amid migration fears

Straits Times

timean hour ago

  • Straits Times

Poland imposes checks on German and Lithuanian borders amid migration fears

Sign up now: Get ST's newsletters delivered to your inbox A border stone of Poland is seen as Polish border guards check a vehicle at Polish-German border, as Poland starts controls on borders with Germany, Lithuania over migration, near the German town of Frankfurt an der Oder, in Slubice, Poland, July 7, 2025. REUTERS/Lisi Niesner WARSAW - Poland introduced temporary controls on its borders with Germany and Lithuania on Monday in an effort to stem what the government says is an increasing number of undocumented migrants crossing from the north and west. The re-imposition of border checks is just the latest example of how mounting public concerns across the European Union over migration are straining the fabric of the bloc's passport-free Schengen zone. The Netherlands, Belgium and Germany itself have already implemented similar measures. In Poland, the debate over migration has become increasingly heated in recent weeks, with groups of far-right activists launching "citizens' patrols" on the western border amid Polish media reports of German authorities sending undocumented migrants back across the frontier. "Everything is proceeding without incident," Interior Minister Tomasz Siemoniak told private broadcaster TVN24 on Monday after the controls came into effect. "Traffic is currently moving smoothly, 800 police officers, 200 gendarmerie soldiers, 500 territorial army soldiers, all services... are in full readiness." Speaking at a midnight press conference on the German border when the checks began, Siemoniak also said only state officials such as border guards were authorised to check vehicles entering Poland, in a reference to the "citizens' patrols". The border guard said in a post on X it had detained an Estonian citizen on Poland's border with Lithuania for transporting four illegal migrants believed to be Afghans. Top stories Swipe. Select. Stay informed. Singapore Four golf courses to close by 2035, leaving Singapore with 12 courses Singapore Eligible S'poreans to get up to $850 in GSTV cash, up to $450 in MediSave top-ups in August Singapore Construction starts on Cross Island Line Phase 2; 6 MRT stations in S'pore's west ready by 2032 Singapore More nurses to anchor care in community settings as Singapore's population ages Singapore $1.46b nickel scam: Ng Yu Zhi opts to remain silent after judge calls for his defence Singapore New SkillsFuture requirements from April 2026 to mandate regular training for adult educators Asia Australian woman found guilty of all counts in mushroom murders case Singapore Life After... blazing biomedical research trail in S'pore: Renowned scientist breaks new ground at 59 HARDENING PUBLIC MOOD Public sentiment in Poland towards migrants has hardened since a 24-year-old woman was killed in the city of Torun by a Venezuelan citizen in June. On Sunday some 10,000 people took part in a march organised by nationalist activists in remembrance of her. Meanwhile on Saturday evening a Polish man died after being stabbed during a fight in Nowe, northern Poland. A Colombian citizen was arrested on suspicion of being responsible. Police said on Monday they had detained a total of 13 people in connection with the incident - three Poles and 10 Colombians. State new channel TVP Info showed angry crowds gathering in the town outside the workers' hostel where the Colombians lived. Human rights activists condemned the "citizens' patrols". "The actions of these self-proclaimed groups are the result of a radicalising political narrative that presents migration as a threat, which fuels social fears and distrust of state institutions," the Helsinki Foundation for Human Rights said in a statement on Friday. "The Foundation once again appeals for an honest and reliable public debate on the migration situation and border policy, based on facts, not fear and manipulation." REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store