Monday, 20 July 2026 · EconomyEurope's rearmament: raw-material dependence and dispute over the fighter-jet legacy
Europe is investing billions in defense, yet critical raw materials still come predominantly from China. At the same time, Germany, France and the companies involved are quarreling over the legacy of the failed joint fighter jet. The Bundeswehr wants to massively expand its homeland-defense division.
After the Russian threat, Europe is pouring billions into defense, yet the Sueddeutsche Zeitung warns the undertaking could founder on a lack of critical raw materials, which still come for the most part from China; industry is stuck in a 'prisoner's dilemma.' In parallel, the SZ describes the dispute over the legacy of the failed German-French fighter jet: after both countries and the companies involved had invested 3.2 billion euros, the partners are now squabbling over the exploitation and are seeking new allies. The liberal Die Zeit also reports that the Bundeswehr wants to double, within ten years, its homeland-defense division responsible for protecting airports and energy facilities. The reports share the diagnosis of a security-policy turning point but stress the gap between ambitious goals and industrial reality. Contested is whether Europe can reduce its dependencies on China quickly enough. The available evidence here mainly bundles German perspectives on a shared structural problem.
Süddeutsche Zeitung · Die Zeit
Monday, 20 July 2026 · EconomyEarnings in Germany rose 5.1 percent in 2025
Earnings in Germany rose 5.1 percent in 2025
Median gross earnings in Germany rose 5.1 percent in 2025, according to the Federal Employment Agency, thus outpacing inflation. The median gained more than 200 euros, and the gap between the sexes shrank slightly. Significant regional differences remain.
According to data from the Federal Employment Agency, median gross pay rose strongly in 2025; the conservative Die Welt puts the increase at 5.1 percent and more than 200 euros at the median. Higher collective-bargaining settlements drove incomes up in real terms, according to the Sueddeutsche Zeitung, that is, more than inflation. The liberal Die Zeit and the SZ at the same time stress persistent differences: women continue to earn less than men, though the gap shrank slightly, and a marked divide yawns between the federal states. The camps report the figures in agreement but set different accents: business-friendly voices point to risen labor costs, while socially oriented outlets highlight the real-wage gains of employees. The finding lands in a debate in which the SPD is making wealth and inheritance taxes a topic and Chancellor Merz is calling for more working hours. It remains open whether the real-wage gains will hold up as the economy slows.
Die Welt · Die Zeit · Süddeutsche Zeitung
Forecast · Assessment
●Most likely55%
Wages keep growing moderately above inflation, but the real gains turn out smaller amid a weak economy.
▲Worst case25%
A recession and rising unemployment push real wages back down, and the distribution dispute sharpens.
▼Best case20%
Falling inflation and stable collective-bargaining settlements secure lasting real-wage gains.
Monday, 20 July 2026 · EconomyStudy: electric cars significantly cheaper since 2020, combustion engines slightly pricier
Study: electric cars significantly cheaper since 2020, combustion engines slightly pricier
A study by the Fraunhofer Institute and the ICCT shows that inflation-adjusted list prices for electric cars have fallen significantly since 2020, while combustion-engine cars have become slightly more expensive. If the trend continues, EVs in Europe could cost as much as comparable combustion cars by 2030.
According to a joint study by the Fraunhofer Institute and the ICCT, the inflation-adjusted list prices of electric cars have shifted markedly downward since 2020, while combustion cars have become slightly more expensive. The authors expect this development to continue; the conservative Die Welt and the business-friendly Handelsblatt highlight that, if the trend holds, EVs in Europe could reach price parity with combustion cars by 2030. The left-liberal Sueddeutsche Zeitung stresses the same finding of a 'clear shift.' The camps report the study largely in agreement but differ in interpretation: for some it proves the success of electric mobility, for others the growing price pressure from Chinese manufacturers. It remains open how strongly falling battery costs and competition from China will push prices further down. The study refers to list prices, not to prices actually paid including discounts and incentives.
Die Welt · Süddeutsche Zeitung · Handelsblatt
Forecast · Assessment
●Most likely60%
Electric cars keep getting cheaper and close in on combustion cars in price, driven by economies of scale and competition.
▲Worst case20%
Trade conflicts, tariffs or pricier raw materials halt the price decline and slow electric mobility.
▼Best case20%
EVs reach price parity earlier than expected and accelerate the switch.
Saturday, 18 July 2026 · EconomyMore than 50 million euros in EV subsidies in Germany, Tesla in the lead
More than 50 million euros in EV subsidies in Germany, Tesla in the lead
Since the relaunch of the state purchase subsidy just under two months ago, Germany has already paid out more than 50 million euros for electric cars. The biggest beneficiary, of all companies, was the US manufacturer Tesla. The subsidy is meant to revive the flagging business in electric cars.
The FAZ and Handelsblatt both report that since the subsidy was restarted, more than 50 million euros have flowed and that Tesla leads among the subsidized brands. This feeds the old debate over whether state purchase subsidies mainly produce windfall effects and whether it makes sense to use German taxpayer money to prop up the sales of foreign manufacturers. Supporters point to the boost needed for electric mobility and the recently weak market, while critics point to the limited steering effect. Sourcing on this day is thin and rests on two German business outlets with similar figures. How sustainably the subsidy revives sales is still open.
FAZ · Handelsblatt
Forecast · Assessment
●Most likely60%
The subsidy noticeably revives EV sales, while the debate over windfall effects and favored manufacturers continues.
▲Worst case20%
The subsidy fizzles out or mainly subsidizes imports without strengthening domestic industry.
▼Best case20%
The subsidy supports demand and production and helps manufacturers ramp up.
Saturday, 18 July 2026 · EconomyEU loosens emissions trading and ignites a climate dispute
EU loosens emissions trading and ignites a climate dispute
The European Commission wants to ease the CO2 price burden on industry and is stepping back from strict climate targets, but is extending emissions trading to aviation and waste. Critics speak of “dangerous window dressing” and a hollowing out of climate protection. Supporters see a pragmatic compromise that rescues emissions trading in difficult times.
The reform eases the CO2 price burden on companies and gives them more time, but in effect lowers the climate targets. The left-leaning taz judges that this will not save industry and draws the wrong conclusions, while the liberal Die Zeit finds that the Commission has given in to industry pressure and at the same time rescued emissions trading, which is remarkable in the age of Trump. Politico reports that energy-intensive industry is dissatisfied and speaks of “dangerous window dressing,” with only the DIHK seeing anything positive. The conservative Le Figaro highlights that a net-zero target by 2039 is regarded as unrealistic, that firms would be allowed to emit for longer, but that emissions trading would be extended to aviation and waste. Thus the accusation of betraying the climate, industry's complaint about too little relief, and the interpretation as a pragmatic rescue stand opposed.
taz · Die Zeit · Politico Europe · Le Figaro
Forecast · Assessment
●Most likely60%
The proposal sets off a long dispute with Parliament and member states, at the end of which stands a watered-down compromise.
▲Worst case20%
The reform hollows out emissions trading and jeopardizes the EU's climate targets and Europe's role as a model.
▼Best case20%
A balanced compromise combines relief for industry with credible climate protection.
Saturday, 18 July 2026 · GeopoliticsMerz and Macron agree on closer defense ties and joint nuclear exercises
Merz and Macron agree on closer defense ties and joint nuclear exercises
After the Franco-German council of ministers in Brühl, Chancellor Merz and President Macron announced closer military cooperation, including, for the first time, joint nuclear deterrence exercises and a steering group. The two countries also want to coordinate more closely on their approach to China. A joint fighter jet project, by contrast, made no progress.
At the council of ministers at Augustusburg Palace, Berlin and Paris agreed on closer cooperation on nuclear deterrence with joint exercises and a steering group, as Deutschlandfunk and taz report; the taz highlights that both countries also want to work together on their course toward China. Politico interprets the meeting as an attempt to swiftly advance EU initiatives ahead of a possible presidency of Marine Le Pen, with both sides framing the urgency as an economic necessity. Der Spiegel points out that nothing came of the joint fighter jet project for now and that Macron's days in power are numbered. From a Kosovar perspective, Telegrafi quotes Merz pledging that the close coordination with Paris will continue even after a change at the Élysée. Signals of a new departure thus mix with doubts about feasibility given the political uncertainty in France.
Deutschlandfunk · taz · Politico Europe · Der Spiegel · Telegrafi
Forecast · Assessment
●Most likely55%
For now it remains a matter of declarations of intent with slow implementation, held back by Macron's dwindling term and old defense disputes.
▲Worst case25%
A change of power in Paris in 2027 and industrial conflicts cause the cooperation to stall once again.
▼Best case20%
The meeting turns into concrete joint projects that strengthen Europe's strategic autonomy.
Friday, 17 July 2026 · EconomyEU Commission reforms emissions trading and ignites a climate row
EU Commission reforms emissions trading and ignites a climate row
The European Commission put forward proposals to reform emissions trading intended to give industry more leeway. Critics warn of a watering-down of climate protection, while business demands relief. The dispute is likely to become one of the year's biggest climate-policy battles.
Politico frames the initiative as a moment of truth for the Commission's climate credibility and writes that Brussels wants to allow industry to pollute more and for longer, against which Parliament and member states are signaling resistance. The Handelsblatt and Die Zeit highlight the underlying tension: climate protection versus competitiveness, with Die Zeit asking what European climate protection achieves if too few countries take part. From the Russian side comes a counterpoint: TASS reports that Russia has appealed to the WTO to clarify the dispute over the EU's CO2 rules and the border adjustment CBAM. Industry demands relief, while climate advocates fear for the instrument's effectiveness. Those involved agree that the reform recalibrates the balance between emissions reduction and location interests and remains internationally contested.
Politico Europe · Die Zeit · TASS · Handelsblatt
Forecast · Assessment
●Most likely60%
The proposal triggers a long dispute with Parliament and member states that ends in a compromise with watered-down requirements.
▲Worst case20%
The reform hollows out emissions trading, jeopardizes the EU's climate targets and weakens Europe's role model.
▼Best case20%
A balanced compromise combines relief for industry with credible climate protection and stabilizes the CO2 price.
Friday, 17 July 2026 · GeopoliticsMerz and Macron invoke Europe's strategic awakening
Merz and Macron invoke Europe's strategic awakening
At the Franco-German intergovernmental meeting in the Rhineland, Chancellor Merz and President Macron pushed for closer cooperation on defense, industry and technology. A joint defense council was meant to provide fresh impetus, including on nuclear deterrence. Given the 2027 election, it may be one of the last such meetings for Macron.
At Bensberg Castle both sides celebrated the Franco-German rapprochement and, according to Die Welt, spoke of wanting to turn Europe into a power. Le Monde stresses that the meeting was meant to revive visible military cooperation after the failure of the joint fighter-jet project FCAS, and places it within the dispute over Europe's defense industry. Politico points to the political shadow: with a possible election victory for Marine Le Pen in 2027, the question arises whether the Franco-German agreements will hold. The FAZ highlights the debate over a shared nuclear deterrent, and the Handelsblatt the recently bumpy relations the meeting is meant to mend. The reports agree that the partners want to demonstrate unity, while doubts about durability remain.
Die Welt · Le Monde · Politico Europe
Forecast · Assessment
●Most likely55%
The partners agree on declarations of intent on defense and industry, but their implementation remains slow and held back by national interests.
▲Worst case25%
Old points of contention such as arms projects and a change of power in Paris in 2027 cause cooperation to stall again.
▼Best case20%
The meeting becomes the starting point for concrete joint projects and noticeably strengthens Europe's strategic autonomy.
Monday, 13 July 2026 · GeopoliticsVucic advocates group accession of the Western Balkans to the EU
Vucic advocates group accession of the Western Balkans to the EU
Serbia's President Vucic is calling on the EU to admit the states of the Western Balkans together as a group. On the same day he was, as the first Serbian president, a guest at the Bastille Day parade in Paris. Belgrade regards the invitation as geostrategic recognition.
The Financial Times reports that Vucic is urging the EU to admit the Western Balkan states as a bloc rather than individually; in the same newsletter, Spain's agriculture minister warns that the EU is doing too little to protect its farmers. The Serbian B92 (independent) highlights that Vucic was the first Serbian head of state to take part in the Paris military parade, which Belgrade celebrates as geostrategic recognition. The sources are thin and one-sidedly Serbian or Serbia-friendly; critical voices from the EU or from neighboring states on the Kosovo and rule-of-law question are largely absent, so EU accession here appears above all from Belgrade's perspective.
Financial Times · B92
Forecast · Assessment
●Most likely60%
The EU examines the proposal favorably in principle but continues to make progress dependent on individual reform and rule-of-law criteria.
▲Worst case15%
Unresolved conflicts, especially over Kosovo, block any group solution and cause the enlargement process to stall again.
▼Best case25%
The initiative gives EU enlargement new momentum and results in a concrete roadmap for the region.
Monday, 13 July 2026 · GeopoliticsDispute in Berlin coalition over Israel's settlement policy
Dispute in Berlin coalition over Israel's settlement policy
SPD foreign policymakers distance themselves from CDU Foreign Minister Wadephul, who rejects EU sanctions over Israel's settlement policy. In the EU deliberations on punitive measures against Israeli settlers, Germany is blocking. The conflict weighs on the federal government's Middle East line.
Der Spiegel and Die Zeit report that SPD foreign policymakers criticized Foreign Minister Johann Wadephul (CDU) for his stance in the EU deliberations. The EU foreign ministers discussed sanctions against Israeli settlers and trade in goods from illegal settlements; Germany rejects such steps. The SPD politicians openly disagree and demand consequences regarding Israel's settlement policy. The sources are German and range from center-left to liberal (Spiegel, Zeit, Welt), and they mainly trace the rift within the coalition; Wadephul's official rationale features only briefly. The dispute reveals the growing tension between German solidarity with Israel and European pressure for sanctions.
Der Spiegel · Die Zeit · Die Welt
Forecast · Assessment
●Most likely60%
The coalition dispute continues to simmer, Germany sticks to its blockade and thereby prevents a joint EU sanctions package.
▲Worst case15%
The conflict escalates into a serious coalition crisis over the federal government's Middle East line.
▼Best case25%
A compromise enables limited EU measures against individual settlers without straining German-Israeli relations.
Monday, 13 July 2026 · GeopoliticsHungary's parliament votes to remove Orban loyalist president
Hungary's parliament votes to remove Orban loyalist president
Hungary's parliament has passed a constitutional amendment allowing President Sulyok, a confidant of former Prime Minister Orban, to be removed from office. Prime Minister Peter Magyar defended the extraordinary step. Human rights organizations criticized the move.
Al Jazeera and the NYT report that parliament passed an amendment enabling the removal of President Sulyok, who was appointed under Orban. Head of government Peter Magyar, who had replaced Orban, defended the process as a necessary break with the old apparatus of power. Critics, including human rights groups, view the action as a problematic encroachment on the separation of powers. The sources (Gulf state-aligned and US center-left) report largely in sober, factual terms; a decidedly Orban-friendly counter-voice is missing from the selection, which makes the situation appear somewhat one-sidedly as a "clean-up."
Al Jazeera · New York Times
Forecast · Assessment
●Most likely55%
The removal is carried out and Magyar fills the presidency anew, while Orban supporters and human rights groups push back legally and politically. ✓
▲Worst case20%
The power struggle escalates into a constitutional crisis with street protests and an intervention by European institutions.
▼Best case25%
The transition proceeds in an orderly manner and ushers in a phase of reconciliation with EU institutions.
Sunday, 12 July 2026 · EconomyVW chief Blume seeks alternatives to plant closures
VW chief Blume seeks alternatives to plant closures
VW group chief Oliver Blume said there were smarter solutions than plant closures for cutting costs. The works council and the union are nonetheless preparing the next escalation stage.
In the battle over tens of thousands of jobs at Volkswagen, group chief Oliver Blume signaled over the weekend that he wanted to avoid plant closures. Speaking to Bild am Sonntag, he said there were smarter solutions, without specifying them, as Welt and Daily Sabah reported. The Süddeutsche Zeitung describes how Blume is becoming publicly isolated and how, in the face of vague hints, both the works council and the union are already preparing the next escalation stage. Daily Sabah places the case in a broader German auto crisis, from which young engineers are also suffering, unable to find a position despite numerous applications. The camps are at odds: management stresses flexibility and alternatives, while the labor side distrusts the unclear savings plans and is gearing up for conflict.
Die Welt · Süddeutsche Zeitung · Daily Sabah
Forecast · Assessment
●Most likely55%
VW and the workers' representatives hammer out a compromise of short-time work, severance packages and investment pledges, without full plant closures but with job cuts.
▲Worst case20%
The talks fail, strikes break out and plant closures come after all, further deepening the German auto crisis and the regional economy.
▼Best case25%
Blume presents a viable restructuring plan that secures sites, cuts costs and defuses the conflict with the workforce.
Saturday, 11 July 2026 · TechnologyEU official announces fines against Big Tech over consumer protection violations
EU official announces fines against Big Tech over consumer protection violations
A senior EU representative has held out the prospect of fines against Big Tech companies for violations of consumer protection. Brussels is thus once again toughening its stance toward the large platforms. The announcement rests on a single source (Financial Times).
The EU is tightening the regulatory screws further on the large tech platforms: according to a senior official, the companies face fines if they fail on consumer protection. This brings another instrument to the fore, alongside competition and data-protection law, with which Brussels aims to rein in the market power of the platforms. For the companies, this means additional compliance risks and potentially painful penalties. Critics from industry are likely to warn of over-regulation and locational disadvantages, while consumer advocates welcome the step. The reporting so far rests on a single source (Financial Times) and the statement of a single official; concrete proceedings or sums have not yet been named, which limits its reliability. The move fits into Brussels' broader line of controlling digital markets more strictly.
Financial Times
Forecast · Assessment
●Most likely55%
The EU launches its first proceedings in the coming months, but concrete fines follow only after lengthy reviews.
▲Worst case20%
The platforms fight back legally and, in response, throttle services in Europe, which hits users.
▼Best case25%
The announcement prompts companies to make voluntary improvements, so that harsh penalties are avoided.
Saturday, 11 July 2026 · EconomyVW crisis comes to a head: Blume promises alternatives to plant closures, works council pushes back
VW crisis comes to a head: Blume promises alternatives to plant closures, works council pushes back
VW chief Oliver Blume signals that there are smarter solutions than closing German plants, pointing to initial savings at the sites. The works council nonetheless wants to summon him before the workforce. The backdrop is a deep sales crisis whose roots, according to analyses, lie largely in China.
In the struggle over four threatened German VW plants, group chief Oliver Blume is trying to smooth the waters: there are smarter solutions than closures, he said, and savings at the production sites are already taking effect. The works council is not satisfied with that and wants to summon Blume before the workforce to demand clarity about the future of jobs. Management and worker representatives are thus openly at odds, while the IG Metall union ramps up pressure. An analysis by the New York Times traces the group's problems largely back to China, where VW earned handsomely for years but is now losing ground to domestic electric carmakers. The crisis fits into a broader weakness in the German economy, recently underscored by an IW study on the long investment slump. It remains open whether Blume's assurances carry concrete commitments or are merely meant to buy time.
Die Welt · Der Spiegel · Der Spiegel · New York Times
Forecast · Assessment
●Most likely55%
VW and worker representatives agree on a compromise involving job cuts without full plant closures, but with harsh austerity requirements.
▲Worst case20%
The negotiations collapse, strikes break out and at least one plant is closed after all.
▼Best case25%
A viable restructuring plan with an electric-vehicle offensive stabilizes the sites and reassures the workforce.
Friday, 10 July 2026 · TechnologyEU chat control: fresh push to scan digital messages
EU chat control: fresh push to scan digital messages
The EU wants to allow tech companies to scan digital messages for depictions of child abuse. It is contested whether the scanning would also cover encrypted chats and whether it would achieve its stated goal at all. Data protection advocates warn of suspicionless mass surveillance.
The EU is making a fresh attempt at so-called chat control: tech companies would be allowed to scan digital messages in order to detect child sexual abuse material. Supporters see it as a means to counter the spread of such content. Critics and data protection advocates, by contrast, warn of suspicionless mass surveillance and doubt its effectiveness, especially since it is unclear whether end-to-end encrypted chats would also be affected, which would fundamentally undermine the security of confidential communication. The push is part of the recurring debate in the EU between child protection and digital fundamental rights. The account on this day is based solely on an explanatory FAQ by Die Zeit, so both camps are cited but not backed up by multiple sources.
Die Zeit
Forecast · Assessment
●Most likely55%
The proposal is negotiated contentiously and watered down repeatedly, with encrypted chats remaining a central point of contention.
▲Worst case20%
The EU adopts a far-reaching scanning obligation that also weakens encrypted communication and sets a precedent.
▼Best case25%
The push is rejected or limited to targeted measures that comply with fundamental rights.
Friday, 10 July 2026 · EconomyGerman auto industry and investment crisis put VW chief Blume under pressure
German auto industry and investment crisis put VW chief Blume under pressure
VW chief Oliver Blume has failed with his cost-cutting program at the first attempt, and his tenure is in question. An IW study certifies that Germany is experiencing the longest investment weakness in its history, with one in five companies no longer investing at all. The DAX, meanwhile, is celebrating record highs, but analysts warn of deceptive signals.
The crisis in the German auto industry is intensifying: Volkswagen chief Oliver Blume failed with his cost-cutting program at the first attempt, and according to Welt his professional future is now at stake. Auto expert Ferdinand Dudenhoeffer is calling for a return to the 40-hour week without wage compensation. Cicero sees the VW crisis as emblematic of the state of Germany as a business location as a whole. A new survey by the German Economic Institute (IW) attests that Germany is going through the "longest investment weakness" in its history, with one in five companies no longer investing at all, citing high labor and energy costs as the reason. At the same time, the DAX stands at an all-time high, but the FAZ warns that the record should not be trusted because it rests on just a few stocks. The sources are predominantly German and economically liberal in outlook (Welt, Cicero, FAZ), with counter-voices such as those of trade unions absent.
Cicero · Die Welt (Blume) · Die Welt (Investitionen) · FAZ (DAX)
Forecast · Assessment
●Most likely55%
VW negotiates a tougher cost-cutting course with the unions, the investment weakness persists, and Blume remains in office for now, but on the ropes.
▲Worst case25%
Blume is replaced, VW cuts plants and jobs, the location crisis deepens, and it hits the labor market.
▼Best case20%
A viable compromise and falling energy costs stabilize VW and revive investment.
Friday, 10 July 2026 · TechnologyEU forces Meta to change the addictive design of Instagram and Facebook
EU forces Meta to change the addictive design of Instagram and Facebook
The European Commission is calling on Meta to change the "addictive design" of Instagram and Facebook. Features such as endless scrolling, according to Brussels, contribute to compulsive use and unhealthy habits, especially among children. Meta faces heavy fines if it violates the EU's digital law.
The European Commission accuses Meta of violating the EU digital law (DSA) with the design of Instagram and Facebook. Endless scrolling and the constant display of new content, it says, foster "compulsive use" and endanger the "mental and physical health" of users, especially children and adolescents. Brussels has set Meta a deadline to make improvements before a fine is potentially imposed. Meta disputes the allegations and points to existing safeguards for minors. The case fits into the EU's tougher regulatory course toward large tech platforms. The range of sources is broad and international, though Meta's counterposition is so far only sparsely documented.
Die Zeit · New York Times · BBC News · Le Monde
Forecast · Assessment
●Most likely55%
Meta announces cosmetic adjustments and files an appeal, the proceedings drag on, and a fine is held off for now.
▲Worst case20%
Meta stonewalls, the EU imposes a heavy fine, and the dispute escalates into a transatlantic conflict over tech regulation.
▼Best case25%
Meta relents and demonstrably builds in more child-friendly default settings, and the EU drops the proceedings without a fine.
Thursday, 9 July 2026 · EconomyEU launches negotiations on the digital euro
EU launches negotiations on the digital euro
EU lawmakers have given the green light to begin negotiations on creating a digital euro. The bloc is responding to the shift in the global currency landscape.
The European Parliament approved on July 9 the launch of negotiations on introducing a digital euro. This brings plans for an EU central bank digital currency a step closer to implementation. The motive is seen as a response to shifts in the global currency landscape, such as the advance of private stablecoins and the geopolitical importance of payment infrastructure. Supporters see the digital euro as a path to greater monetary sovereignty and independence from U.S.-dominated payment systems. Critics warn of privacy questions, possible effects on commercial banks and the risk of state surveillance of payments. The concrete design, holding limits and the timetable now become the subject of the negotiations.
Daily Sabah
Forecast · Assessment
●Most likely60%
The negotiations drag on for months, with disputes over privacy, holding limits and the role of commercial banks, before a compromise is reached.
▲Worst case20%
Privacy concerns and resistance from the banking lobby block the project or water it down into irrelevance.
▼Best case20%
The EU quickly agrees on a privacy-friendly design that strengthens monetary sovereignty and finds broad acceptance.
Thursday, 9 July 2026 · GeopoliticsBritish politics: Farage by-election and a change of power on the horizon
British politics: Farage by-election and a change of power on the horizon
Nigel Farage's gamble with a by-election for his seat could pit him in polls against joke candidates like Count Binface. At the same time, Britain's presumptive prime minister wants to increase pressure on Israel.
Several developments are converging in British politics. Reform UK leader Nigel Farage has taken a risk by triggering a special by-election for his parliamentary seat, one that unexpectedly puts him under pressure in the polls, even to the point of running against joke candidates like Count Binface, which could point to weaknesses in his party. At the same time, the politician tipped as the future prime minister signals he wants to increase pressure on Israel, a foreign-policy accent with potentially far-reaching consequences for London's Middle East course. Both stories here come from Daily Sabah and in part reflect a particular perspective, which is why the domestic-politics reading should be treated with caution. Together they paint the picture of a country in political upheaval.
Daily Sabah · Daily Sabah
Forecast · Assessment
●Most likely55%
Farage survives the by-election, but the theatrics expose weaknesses in Reform UK, while the change of power sharpens London's Middle East course.
▲Worst case20%
The by-election goes wrong for Farage or turns embarrassingly close, weakening Reform UK and further destabilizing British politics.
▼Best case25%
The orderly change of power brings clear foreign-policy lines, and the by-election passes without major upsets.
Thursday, 9 July 2026 · EconomyBank of England: rate hike still possible this year
Bank of England: rate hike still possible this year
The Bank of England's chief economist considers a rate hike still possible this year. The reason is slower growth combined with persistent inflationary pressure.
The Bank of England's chief economist has signaled that the British central bank could raise interest rates still this year. As justification he cited the combination of slowed growth and continuing inflationary pressure, an environment that is hard to balance in monetary policy. A rate hike would be notable because many major central banks have recently been discussing cuts instead. The statement is likely to reignite debates over stagflation risks in Britain, between those who want to fight inflation decisively and those who do not want to choke off an already weak economy. This is for now the assessment of a single central banker, not a decision by the monetary policy committee.
BBC News
Forecast · Assessment
●Most likely55%
The BoE keeps rates high for now and retains a hike as an option, but decides data-dependently from week to week.
▲Worst case20%
Persistent inflation forces a rate hike into a weakening economy, worsening the stagflation risk.
▼Best case25%
Inflationary pressure eases, allowing the BoE to keep rates steady or cut later without choking growth.
Thursday, 9 July 2026 · EconomyVolkswagen cuts capacity and model lineup
Volkswagen cuts capacity and model lineup
Volkswagen plans to drastically shrink its model lineup and further reduce capacity. Europe's largest carmaker is responding to a historic crisis in the industry.
Volkswagen is drawing consequences from what it calls a historic crisis: Europe's largest carmaker wants to thin out its model lineup significantly and further reduce production capacity. The backdrop is the difficult transition to electric mobility, growing competitive pressure from Chinese manufacturers and weak demand in core markets. The move is likely to raise questions about plants, employment and investment, even though for now only one source is available and details such as specific sites or job numbers remain open. For the unions and the affected regions, the announcement is another signal that the transformation of the German auto industry is already in full swing.
Daily Sabah
Forecast · Assessment
●Most likely60%
Volkswagen concentrates on fewer, higher-margin models and cuts capacity step by step, leading to conflicts with unions and over plant sites.
▲Worst case20%
The cost-cutting course falls short, market share continues to be lost to Chinese competitors and plant closures with substantial job cuts loom.
▼Best case20%
The streamlining stabilizes costs and returns, and VW regains ground in the electric-car race with a focused lineup.
Wednesday, 8 July 2026 · EconomyTrump Orders Halt to All Trade With Spain
Trump Orders Halt to All Trade With Spain
US President Trump has ordered a halt to all US trade with Spain. The move hits the markets in an already jittery phase of rising oil prices.
Trump directed the US to cut off all trade with Spain, a drastic and unusual intervention in trade relations with an EU and NATO partner. The move fits into Trump’s confrontational trade-policy course and hits the financial markets at the same time as the oil price jump triggered by his Iran remarks. The concrete justification, legal basis and implementation remained unclear at first. The report rests so far on a single source, which is why its scope and actual implementation should be assessed with caution; whether it is a permanent measure or a negotiating threat remains open.
The Telegraph
Forecast · Assessment
●Most likely50%
The order turns out to be negotiating pressure and is softened or partly withdrawn, but for now it causes uncertainty in the markets and in Brussels.
▲Worst case25%
The trade halt actually takes effect, triggers EU countermeasures and escalates into a broader transatlantic trade conflict.
▼Best case25%
After a brief escalation comes an agreement that swiftly restores trade and stabilizes relations with Spain and the EU.
Tuesday, 7 July 2026 · EconomyUK House Prices Rise for the First Time Since the Start of the Iran War
UK House Prices Rise for the First Time Since the Start of the Iran War
British house prices rose in June for the first time since the start of the Iran war. A typical property cost 299,330 pounds according to Lloyds/Halifax, up 0.2 percent from the previous month.
After months of stagnation following the Iran war, house prices in the United Kingdom rose again in June for the first time. According to the Lloyds/Halifax index, a typical property cost 299,330 pounds, up 0.2 percent from the previous month, leaving values only just below the start of the year. The slight increase points to a cautious stabilization of the market, which had been burdened by the energy price and economic shocks of the Iran war. Whether this is a sustainable turnaround or merely a snapshot remains open given the still fragile economic situation. The figures come from a single survey and should not be over-interpreted.
The Guardian
Forecast · Assessment
●Most likely60%
The market stabilizes slowly with small price movements, as long as energy prices and the economy do not deteriorate dramatically.
▲Worst case15%
A renewed energy price shock or a rate reversal pushes prices back below last year’s level and hits over-indebted households.
▼Best case25%
Falling interest rates and easing energy prices trigger a noticeable recovery of the housing market.
Monday, 6 July 2026 · EconomyEasyJet Shares Jump After Takeover Bid of Over 7.3 Billion Dollars
EasyJet Shares Jump After Takeover Bid of Over 7.3 Billion Dollars
Shares in British low-cost carrier easyJet rose by up to 11.4 percent after the airline agreed in principle to a takeover bid of 5.5 billion pounds, around 7.34 billion dollars. Investors remained cautious despite the surge.
British low-cost carrier easyJet agreed in principle to a takeover bid on Monday, which temporarily drove the share up by as much as 11.4 percent. According to Daily Sabah, the bid stands at 5.5 billion pounds, equivalent to about 7.34 billion dollars. Despite the share surge, investors remained reserved, pointing to open questions about the terms, financing, and regulatory approval of the deal. The move comes at a time of possible consolidation in European aviation. The report comes from a single state-aligned source; voices from the bidder, from easyJet itself, or from competition authorities are missing and should be kept in mind.
Daily Sabah
Forecast · Assessment
●Most likely55%
The negotiations drag on, while regulatory reviews and pricing questions delay the closing.
▲Worst case20%
The deal fails over approval or financing, and the share gives up its gains.
▼Best case25%
The takeover goes through on attractive terms and sets off a broader consolidation in the European low-cost market.
Sunday, 5 July 2026 · EconomyUber halts European expansion and eyes takeover of Delivery Hero
Uber halts European expansion and eyes takeover of Delivery Hero
According to the Financial Times, Uber is putting its expansion in Europe on hold for now. The reason: the group is pursuing a deal with delivery service Delivery Hero. A merger would substantially reshape Europe's food-delivery sector.
Uber is pausing its European expansion to keep capacity free for a possible merger with the Berlin-based delivery group Delivery Hero, the Financial Times reports. Rather than continuing to push organically into new markets, the US company is apparently betting on consolidation through acquisition to strengthen its position in the fiercely contested food-delivery business. A deal of this magnitude would reorder Europe's delivery-service landscape and is likely to attract the attention of competition authorities, which would scrutinize an excessive market share critically. For Delivery Hero, which has recently struggled with profitability pressure, joining forces with Uber could mean a strategic realignment. The information rests on an FT report picked up by Daily Sabah; official confirmations from the companies involved are still pending, so the situation is correspondingly provisional. If the deal is confirmed, it would be one of the year's largest industry consolidations.
Daily Sabah
Forecast · Assessment
●Most likely55%
Talks continue and a deal is possible, but hinges on approval from the competition authorities.
▲Worst case20%
Antitrust concerns or disagreement over the price cause the takeover to fail, weakening both companies competitively.
▼Best case25%
The merger succeeds swiftly and creates a profitable, market-leading delivery-service group in Europe.
