Latest news with #emergencyStockpile
Russia Today
05-07-2025
- Business
- Russia Today
EU preparing to hoard critical supplies over security fears
The EU plans to build an emergency stockpile of key supplies in light of mounting threats, the Financial Times reported on Friday, citing a draft strategy prepared by the European Commission and due to be officially published next week. The document reportedly says a new mechanism is needed to improve EU member states' readiness for global risks. 'The EU faces an increasingly complex and deteriorating risk landscape marked by rising geopolitical tensions, including conflict, the mounting impacts of climate change, environmental degradation, and hybrid and cyber threats,' the draft states. It proposes coordinated backup stockpiles of critical goods including food, medicines, nuclear fuel, rare earths, permanent magnets and even cable repair modules 'to ensure prompt recovery from energy or optical cable disruptions.' Brussels reportedly aims to create a 'stockpiling network' to improve coordination between EU nations, citing a 'limited common understanding of which essential goods are needed for crisis preparedness.'The plan would also involve compiling updated lists of essential supplies tailored to each region and crisis type. Member states are advised to invest in critical stockpiles and involve the private sector through incentives such as tax credits. The draft adds that the EU will cooperate with NATO and other allies on 'shared warehousing' and management of resources, as well as dual-use infrastructure. Funding plans for the initiative will reportedly be addressed in proposals for the EU's new multiannual budget expected later this month. The European Commission did not immediately respond to media requests for comment on the reported initiative. The strategy comes amid wider EU concern over security. Brussels has been urging increased military spending for months, citing the supposed threat of Russian aggression – a claim Moscow has repeatedly rejected as baseless. Earlier this year, EU leaders adopted the ReArm Europe initiative, unlocking up to €800 billion ($840 billion) to double defense spending from 2024 levels. Last month, the European NATO members also agreed to raise defense spending to 5% of GDP, calling it necessary to counter the 'long-term threat posed by Russia to Euro-Atlantic security.' Russia has denied that it plans to attack the West, calling such claims 'nonsense' and accusing the EU of fueling fear to justify massive arms spending. Kremlin spokesman Dmitry Peskov previously labeled the bloc's buildup 'rabid,' while former President Dmitry Medvedev accused the EU of turning into 'a politicized, globalist, and fiercely Russophobic organization' that poses 'a threat' to Russia.
Yahoo
20-06-2025
- Business
- Yahoo
Rice prices double in Japan as inflation accelerates
The price of rice doubled in Japan in the 12 months to May, data showed Friday, as an acceleration in inflation piled fresh pressure on Prime Minister Shigeru Ishiba ahead of key elections next month. Polls for parliament's upper house are crucial for Ishiba after public support for his administration tumbled to its lowest level since he took office in October, partly because of frustration over the cost of living. One of the main sources of anger has been the surging cost of the food staple, which has rocketed for months owing to shortages caused by a variety of reasons including supply chain snarls. The price of the grain rocketed 101 percent year-on-year in May, having jumped 98.4 percent in April and more than 92.5 percent in March. That helped push core inflation, which excludes volatile fresh food prices, to a forecast-topping 3.7 percent -- its highest level since January 2023 -- and up from 3.5 percent in April. The rice crisis has led the government to take the rare step of releasing its emergency stockpile since February, which it usually only ever did during disasters. But rice is not the only thing pushing inflation up: electricity bills jumped 11.3 percent in May, while gas fees rose 5.4 percent, according to Friday's data. Excluding energy and fresh food, consumer prices rose 3.3 percent, compared with April's 3.0 percent. "Since I'm a temp worker, my salaries have remained stagnant for years, and I see no sign of change in the years ahead," Chika Ohara, 52, told AFP on a Tokyo street. "But prices are going up nonetheless and I feel the impact," she said. - Cash handouts - To help households combat the cost of living, Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen, and twice as much for children, ahead of the election. The 68-year-old leader's coalition was deprived of a majority in the powerful lower house in October as voters vented their anger at rising prices and political scandals. It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955. The Bank of Japan has been tightening monetary policy since last year as inflation crept up but worries about the impact of US tariffs on the world's number four economy has forced it to take a slower approach. Economists predicted a growth slowdown ahead. Earlier this week it kept interest rates unchanged and said it would taper its purchase of government bonds at a slower pace. "Policy flip-flops and delayed pass-through from producers to consumers mean inflation will slow only gradually in the coming months," said Stefan Angrick of Moody's Analytics. "This will keep a sustained pickup in real wages out of reach, and with it a meaningful uptick in consumption." Factors behind the rice shortages include an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. Intensifying fighting between Iran and Israel was also adding upward pressure on energy prices, posing a further risk to the Japanese economy. hih-kaf-tmo/dan
