Editor Brian Harrod Provides Comprehensive up-to-date news coverage, with aggregated news from sources all over the world from the Roundup Newswires Network
In wide-ranging interview, PM says jobs furlough not healthy and urges restraint as pubs open
Boris Johnson has expressed opposition to removing a statue of Cecil Rhodes from Oxford University, in a rare newspaper interview in which he also said the jobs furlough scheme was not “healthy” for the economy in the long term and would end soon.
Speaking to the Evening Standard, the prime minister said he did not agree with the decision of Oriel College to take down its statue of the Victorian imperialist, as he was “in favour of people understanding our past with all its imperfections”.
Green campaigners and housing experts warn Boris Johnson’s recovery plan could swiftly become a liability
Boris Johnson’s plan to build tens of thousands of new homes risks locking in high carbon emissions for decades to come, if they are built to today’s poor efficiency standards instead of being designed for net zero carbon.
The prime minister’s plans to “build, build, build” form the centrepiece of his “new deal” to lift Britain’s economy out of the coronavirus recession. About £12bn will go to building 180,000 new homes to relieve the housing crisis, while new hospitals and schools will be constructed to improve degraded public services.
EU agrees to look for early common ground as PM asks it to ‘put a tiger in the tank’ of talks
Boris Johnson has said there is no reason why the outline of a Brexit deal cannot be sealed by the end of July, after he asked EU leaders at a video summit to “put a tiger in the tank” of stalled talks.
In a boost for the prime minister’s plans to secure a deal by the end of the summer, the EU leaders agreed to strive to find early common ground on trade and security to avoid unnecessary economic chaos next year.
Germany amazed the whole continent with last week’s stimulus package, but it paves the way for countries such as France to agree an effective coronavirus response
From champion of austerity to Europe’s biggest spender – Germany has travelled a long way in just a few months. The notoriously frugal ministry of finance has agreed to spend €130bn – a sum equal to 4% of national income – on more than 50 initiatives to promote growth across the country.
This breathtaking investment programme comes on top of the almost 30% of GDP the government has so far spent on rescuing businesses and protecting jobs during the coronavirus crisis.
The chancellor says the coronavirus job retention scheme will be extended for four months, until the end of October. There will be no changes until the end of July, he says, and in August, September and October it will continue with more flexibility. Sunak added that 7.5m jobs have been supported by the furlough scheme and almost 1m businesses helped
Even faced with another great depression, wealthier EU countries are resisting action on debt that could ultimately keep the union together
Europe’s leaders are worried – and rightly so. The deadly impact of Covid-19 has resulted in a full-scale health crisis. Evidence of the economic consequences of trying to keep populations safe from coronavirus is starting to emerge. The political ramifications are only starting to be assessed – but they could be profound.
The European Union has found itself in some tight spots over the years, but always found a way of muddling through. It survived the financial crisis and will cope with Brexit. But this time things are a lot more serious.
NEW: OBR publishes an economic scenario (not forecast) for what might happen to the UK economy as a result of #Covid19. It assumes a 3 month lockdown.
Unemployment: ⬆️by 2 million.
GDP (2020) ⬇️ 13% in 2020.
If so, would be the worst economic contraction for a century.
Here is an excerpt from the report published by the Office for Budget Responsibility today looking at what impact the coronavirus lockdown could have on the economy. It says GDP could fall by 35% in the second quarter of the year.
Here is an extract.
In addition to its impact on public health, the coronavirus outbreak will substantially raise public sector net borrowing and debt, primarily reflecting economic disruption. The government’s policy response will also have substantial direct budgetary costs, but the measures should help limit the long-term damage to the economy and public finances – the costs of inaction would certainly have been higher ...
We do not attempt to predict how long the economic lockdown will last – that is a matter for the government, informed by medical advice. But, to illustrate some of the potential fiscal effects, we assume a three-month lockdown due to public health restrictions followed by another three-month period when they are partially lifted. For now, we assume no lasting economic hit.
Ministers are looking at ending the coronavirus lockdown with a “gradual sector-by-sector approach” that could see vital industries such as manufacturing get back to work before less critical ones like entertainment, according to Whitehall sources.
Two officials said one of the main options being explored for ending the lockdown was the idea of a phased return by industry, with civil servants in the Department for Business, Energy and Industrial Strategy among those looking at how it could work.
It is New Year’s Eve 2019 and around the world stock markets are closing for business on a high note. Shares in the US are up by almost 30% on the year, those in Japan by 18%. Even in Britain, where the mood has been dampened by months of Brexit uncertainty, the FTSE 100 has risen by 12%.
Overall, it had been the best year for stocks since 2009 and traders saw no real reason why the party should not continue into 2020. The US and China looked close to an armistice in their trade war, the US central bank was stimulating the world’s biggest economy, and Boris Johnson’s decisive victory in the general election had removed any lingering doubts about whether Britain would leave the European Union.
Food supplies across the world will be “massively disrupted” by the coronavirus, and unless governments act the number of people suffering chronic hunger could double, some of the world’s biggest food companies have warned.
Unilever, Nestlé and PepsiCo, along with farmers’ organisations, the UN Foundation, academics, and civil society groups, have written to world leaders, calling on them to keep borders open to trade in order to help society’s most vulnerable, and to invest in environmentally sustainable food production.
Times of upheaval are always times of radical change. Some believe the pandemic is a once-in-a-generation chance to remake society and build a better future. Others fear it may only make existing injustices worse. By Peter C Baker
Everything feels new, unbelievable, overwhelming. At the same time, it feels as if we’ve walked into an old recurring dream. In a way, we have. We’ve seen it before, on TV and in blockbusters. We knew roughly what it would be like, and somehow this makes the encounter not less strange, but more so.
Every day brings news of developments that, as recently as February, would have felt impossible – the work of years, not mere days. We refresh the news not because of a civic sense that following the news is important, but because so much may have happened since the last refresh. These developments are coming so fast that it’s hard to remember just how radical they are.
The coronavirus pandemic has brought urgency to the defining political question of our age: how to distribute risk. As with the climate crisis, neoliberal capitalism is proving particularly ill-suited to this.
Like global warming, but in close-up and fast-forward, the Covid-19 outbreak shows how lives are lost or saved depending on a government’s propensity to acknowledge risk, act rapidly to contain it, and share the consequences.
Airlines and airports have warned that time is running out for the government to enact promised measures to help the aviation industry, with EasyJet and Ryanair set to stop flying after Monday and less than 5% of normal passenger numbers expected at major airports.
Further talks are expected between ministers and the industry on Monday as the government wrestles with how to keep critical infrastructure functioning.
It is as if the lights have been switched off. The global economy has been plunged into darkness as countries hunker down in response to the Covid-19 pandemic.
Most recessions develop gradually over time. When the last one started in 2008 it took the Bank of England six months to spot it. This time it is different. Then it was a financial virus, this time it is the real thing. Commentators often say the economy is hitting the wall or is falling off a cliff on the weakest of evidence. Today the cliches are horrifyingly true.
Eighteen signatories call for spending rules to be shaken up to benefit care services and marginalised groups. Plus Jeremy Beecham says local government is in dire need of a funding injection
We welcome the government’s commitment to level up disadvantaged areas of the UK in this week’s budget. We also welcome suggestions that the chancellor is considering including spending on social infrastructure such as health, education or care as a form of infrastructure investment.
Most of the time when we think of infrastructure we think of physical infrastructure like roads, railways and hospital buildings, but a broader definition of it would include social infrastructure like NHS salaries, training, personal assistants for those with disabilities and childcare workers. The government has promised to spend in these areas, but is restricted by its own rules about what it can and can’t borrow money for. It can borrow to invest but not to “just spend”.
Rishi Sunak is poised to announce a package of emergency measures to support businesses hit by the knock-on effects of the coronavirus crisis in his first budget on Wednesday.
The chancellor is considering short-term tax holidays for affected businesses, and taxpayer support for small businesses whose employees self-isolate as the outbreak escalates, the Guardian understands.
Buoyed by fire sales of public assets, a tiny minority of Greeks are thriving. Everyone else is mired in hopelessness
Spring is already in the air across Greece. Even in the bleakest of times, nature’s renaissance renders hope irrepressible. But this one is proving a cruel spring for a people caught up in a decade-old crisis yielding one ritual humiliation after another.
Costas runs a small bookshop in my central Athens neighbourhood. Although jovial by constitution, he finds it difficult to hide the worry lines multiplying on his face. Fifteen years ago he put his flat up as collateral for a business loan to spruce up the bookshop. When the Greek debt crisis wreaked its havoc, it was impossible to service that loan.