The center-right European People’s Party is eyeing “better implementation” of the Lisbon Treaty to better prepare the EU for what it sees as historic shifts in the global balance of power involving the U.S., China and Russia, EPP leader Manfred Weber said on Saturday. Speaking at a press conference on the second day of an EPP Leaders Retreat in Zagreb, Weber highlighted the possibility of broadening the use of qualified majority voting in EU decision-making and developing a practical plan for military response if a member state is attacked. Currently EU leaders can use qualified majority voting on most legislative proposals, from energy and climate issues to research and innovation. But common foreign and security policy, EU finances and membership issues, among other areas, need a unified majority. This means that on issues such as sanctions against Russia, one country can block agreement, as happened last summer when Slovakian Prime Minister Robert Fico vetoed a package of EU measures against Moscow — a veto that was eventually lifted. Such power in one country’s hands is something that the EPP would like to change.  As for military solidarity, Article 42.7 of the Lisbon Treaty obliges countries to provide “aid and assistance by all the means in their power” if an EU country is attacked. For Weber, the formulation under European law is stronger than NATO’s Article 5 collective defense commitment. However, he stressed that the EU still lacks a clear operational plan for how the clause would work in practice. Article 42.7 was previously used when France requested that other EU countries make additional contributions to the fight against terrorism, following the Paris terrorist attacks in November 2015.  Such ideas were presented as the party with a biggest grouping in the European Parliament — and therefore the power to shape EU political priorities — presented its strategic focus for 2026, with competitiveness as its main priority.  Keeping the pulse on what matters in 2026  The EPP wants to unleash the bloc’s competitiveness through further cutting red tape, “completing” the EU single market, diversifying supply chains, protecting economic independence and security and promoting innovation including in AI, chips and biotech, among other actions, according to its list 2026 priorities unveiled on Saturday. On defense, the EPP is pushing for a “360-degree” security approach to safeguard Europe against growing geopolitical threats, “addressing state and non-state threats from all directions,” according to the document. The EPP is calling for enhanced European defense capabilities, including a stronger defense market, joint procurement of military equipment, and new strategic initiatives to boost readiness. The party also stressed the need for better protection against cyberattacks and hybrid threats, and robust measures to counter disinformation campaigns targeting EU institutions and societies. On migration and border security, the EPP backs tougher asylum admissibility rules, faster returns, and strengthened external borders, including reinforced Frontex operations and improved digital systems like the Entry/Exit System.  The party also urged a Demographic Strategy for Europe amid the continent’s shrinking and aging population. The text, initiated by Croatian Democratic Union (HDZ), member of the EPP, wants to see demographic considerations integrated into EU economic governance, cohesion funds, and policymaking, while boosting family support, intergenerational solidarity, labor participation, skills development, mobility and managed immigration.  Demographic change is “the most important issue, which is not really intensively discussed in the public discourse,” Weber said. “That’s why we want to highlight this, we want to underline the importance.” 

MARSEILLE, France — Violence at a drug trafficking hotspot in the social housing complex next to Orange’s headquarters in Marseille forced the telecoms giant to lock its forest-green gates and order its thousands of employees to work from home. The disruption to such a recognizable company — one that gives its name to the city’s iconic football venue — became a fresh symbol of how drug trafficking and insecurity are reshaping politics ahead of municipal elections. In a recent poll, security ranked among voters’ top concerns, forcing candidates across the spectrum to pitch competing responses to the drug trade. “The number one theme is security,” center-right candidate Martine Vassal told POLITICO. “In the field, what I hear most often are people who tell me that they no longer travel in the heart of the city for that reason.” French political parties are watching the contest closely for clues about the broader battles building toward the 2027 presidential race. In many ways, Marseille is a microcosm of France as a whole, reflecting the country’s wider demographics and its biggest political battles. The city is diverse. Multicultural and low-income neighborhoods that tend to support the hard left abut conservative suburbs that have swung to the far right in recent years. As in much of France, support for the political center in Marseille is wobbling.  The left-wing incumbent Benoît Payan remains a slight favorite in the March contest, but Franck Allisio, the candidate for the far-right National Rally, is just behind, with both men polling at around 30 percent. The issues at play strike at the heart of Marseille’s identity: its notorious drug trade, entrenched poverty and failure to seize on the competitive advantages of a young, sun-drenched city strategically perched on the Mediterranean. Whichever candidate can articulate a platform that speaks to Marseille’s local realities while addressing anxieties shared across France will be well positioned to take city hall — and to provide their party with a potential blueprint for the 2027 presidential campaign.  SECOND CITY  Marseille has always had something of a little-brother complex with Paris, a resentment that goes beyond the football rivalry of Paris Saint-Germain and Olympique de Marseille. Many in the city regard the French capital as a distant power center that tries to impose its own solutions on Marseille without sufficiently consulting local experts.   People in Marseilles pay tribute to murdered Mehdi Kessaci. 20, whose brother is a prominent anti drug trafficking campaigner, and protest against trafficking, Nov. 22, 2025. | Clement Mahoudeau/AFP via Getty Images “Paris treats Marseille almost like a colony,” said Allisio. “A place you visit, make promises to — without any guarantee the money will ever be spent.”  When it comes to drug trafficking and security, leaders across the political spectrum agree that Paris is prescribing medicine that treats the symptoms of the crisis, not the cause.  Violence associated with the drug trade was thrust back in the spotlight in November with the killing of 20-year-old Mehdi Kessaci. Authorities are investigating the crime as an act of intimidation. Mehdi’s brother Amine Kessaci is one of the city’s most prominent anti-trafficking campaigners, rising to prominence after their half-brother — who was involved in the trade — was killed several years earlier.  President Emmanuel Macron, Interior Minister Laurent Nuñez and Justice Minister Gérald Darmanin all visited Marseille in the wake of Kessaci’s killing, outlining a tough-on-crime agenda to stop the violence and flow of drugs.  Locals stress that law-and-order investments must be matched with funding for public services. Unless authorities improve the sluggish economy that has encouraged jobless youths to turn to the drug trade, the problem will continue.  “Repression alone is not efficient,” said Kaouther Ben Mohamed, a former social worker turned activist. “If that was the case, the drug trade wouldn’t have flourished like it did.” Housing is another issue, with many impoverished residents living in dangerous, dilapidated buildings. “We live in a shit city,” said Mahboubi Tir, a tall, broad-shouldered young man with a rugby player’s physique. “We’re not safe here.”   Tir spent a month in a coma and several more in a hospital last April after he was assaulted during a parking dispute. His face was still swollen and distorted when he spoke to POLITICO in December about how the incident reshaped his relationship with the city he grew up in.  “I almost died, and I was angry at the city,” said Tir, who suffers from memory loss and has only a vague recollection of what led to the assault, as he sipped coffee in the backroom office of a tiny, left-leaning grassroots political party where he volunteers, Citizen Ambition.  SECURITY PROBLEM To what extent Marseille’s activist groups can bring about change in a city whose struggles have lasted for decades remains to be seen, but the four leading candidates for mayor share a similar diagnosis. They all believe the lurid crime stories making national headlines are a byproduct of a lack of jobs and neglected public services — and that the French state’s responses miss the mark. Rather than relying on harsher punishments as a deterrent, they argue the state should prioritize local policing and public investment. When Payan announced his candidacy for reelection, he pledged free meals for 15,000 students to get them back in school and to double the number of local cops as part of a push for more community policing. Allisio’s platform puts the emphasis on security-related spending: increased video surveillance, more vehicles for local police and the creation of “specialized units to combat burglary and public disorder.” Vassal — the center-right backed by the conservative Les Républicains and parties aligned with Macron — has similarly put forward a proposal to arm fare enforcers in public transport. Both Allisio and Vassal are calling for unspecified spending cuts while preserving basic services provided at the local level like schools, public transportation and parks and recreation. Vassal, who is polling third, said she would make public transportation free for residents younger 26 to travel across the spread-out city. She accuses the current administration of having delivered an insufficient number of building permits, slowing the development of new housing and office buildings and thus the revitalization of Marseille’s most embattled areas — a trend she pledged to reverse. Both Vassal and Allisio are advocating for less local taxes on property to boost small businesses and create new jobs. Allisio has also put forward a proposal to make parking for less 30 minutes free to facilitate deliveries and quick stops to buy products. The outlier — at least when it comes to public safety — is Sébastien Delogu, a disciple of three-time hard-left presidential candidate Jean-Luc Mélenchon. Though Delogu is polling fourth at 14 percent, he can’t be counted out, given that Mélenchon won Marseille in the first round of the last two presidential elections. Though Delogu acknowledges that crime is a problem, he doesn’t want to spend more money on policing. He instead proposes putting money that other candidates want to spend on security toward poverty reduction, housing supply and the local public health sector. Whoever wins, however, will have to grapple with an uncomfortable truth. Aside from local police responsible for public tranquility and health, policing and criminal justice matters are largely managed at the national level. The solution to Marseille’s problems will depend, to no small extent, on the outcome of what happens next year in Paris.

PARIS — Parisian voters will in March choose a new mayor for the first time in 12 years after incumbent Anne Hidalgo decided last year against running for reelection. Her successor will become one of France’s most recognizable politicians both at home and abroad, governing a city that, with more than 2 million people, is more populous than several EU countries. Jacques Chirac used it as a springboard to the presidency. The timing of the contest — a year before France’s next presidential election — raises the stakes still further. Though Paris is not a bellwether for national politics — the far-right National Rally, for example, is nowhere near as strong in the capital as elsewehere — what happens in the capital can still reverberate nationwide. Parisian politics and the city’s transformation attract nationwide attention in a country which is still highly centralized — and voters across the country observe the capital closely, be it with disdain or fascination. It’s also not a winner-take-all race. If a candidate’s list obtains more than 10 percent of the vote in the first round, they will advance to the runoff and be guaranteed representation on the city council. Here are the main candidates running to replace Hidalgo: ON THE LEFT EMMANUEL GRÉGOIRE Emmanuel Grégoire wants to become Paris’ third Socialist Party mayor in a row. He’s backed by the outgoing administration — but not the mayor herself, who has not forgiven the 48-year-old for having ditched his former job as her deputy to run for parliament last summer in a bid to boost his name recognition. HIS STRENGTHS: Grégoire is a consensual figure who has managed, for the first time ever, to get two key left-wing parties, the Greens and the Communists, to form a first-round alliance and not run their own candidates. That broad backing is expected to help him finish first in the opening round of voting. Emmanuel Grégoire. | Thomas Samson/AFP via Getty Images His falling-out with Hidalgo could also turn to his advantage given her unpopularity. Though Hidalgo will undoubtedly be remembered for her work turning Paris into a green, pedestrian-friendly “15 minute” city, recent polling shows Parisians are divided over her legacy. It’s a tough mission, but Grégoire could theoretically campaign on the outgoing administration’s most successful policies while simultaneously distancing himself from Hidalgo herself. ACHILLES’ HEEL: Grégoire can seem like a herbivorous fish in a shark tank. He hasn’t appeared as telegenic or media savvy as his rivals. Even his former boss Hidalgo accused him of being unable to take the heat in trying times, a key trait when applying for one of the most exposed jobs in French politics. Polling at: 32 percent Odds of winning: SOPHIA CHIKIROU Sophia Chikirou, a 46-year-old France Unbowed lawmaker representing a district in eastern Paris, hopes to outflank Grégoire from further to the left. HER STRENGTHS: A skilled political operative and communications expert, Chikirou is one of the brains behind left-wing populist Jean-Luc Mélenchon’s last two presidential runs, both of which ended with the hard left trouncing its mainstream rival — Grégoire’s Socialist Party. Sophia Chikirou. | Joel Saget/AFP via Getty Images She’ll try to conjure up that magic again in the French capital, where she is likely to focus her campaign on socially mixed areas near the city’s outer boundaries that younger voters, working-class households and descendants of immigrants typically call home. France Unbowed often performs well with all those demographics. ACHILLES’ HEEL: Chikirou is a magnet for controversy. In 2023, the investigative news program Cash Investigation revealed Chikirou had used a homophobic slur to refer to employees she was feuding with during a brief stint as head of a left-wing media operation. She also remains under formal investigation over suspicions that she overbilled Mélenchon — who is also her romantic partner — during his 2017 presidential run for communications services. Her opponents on both the left and right have also criticized her for what they consider rose-tinted views of the Chinese regime. Chikirou has denied any wrongdoing in relation to the overbilling accusations. She has not commented on the homophobic slur attributed to her and seldom accepts interviews, but her allies have brushed it off as humor, or a private conversation. Polling at: 13 percent Odds of winning: ON THE RIGHT RACHIDA DATI Culture Minister Rachida Dati is mounting her third bid for the Paris mayorship. This looks to be her best shot. HER STRENGTHS: Dati is a household name in France after two decades in politics. Culture Minister Rachida Dati. | Julien de Rosa/AFP via Getty Images She is best known for her combative persona and her feuds with the outgoing mayor as head of the local center-right opposition. She is the mayor of Paris’ 7th arrondissement (most districts in Paris have their own mayors, who handle neighborhood affairs and sit in the city council). It’s a well-off part of the capital along the Left Bank of the Seine that includes the Eiffel Tower. Since launching her campaign, Dati has tried to drum up support with social media clips similar to those that propelled Zohran Mamdani from an unknown assemblyman to mayor of New York. Hers have, unsurprisingly, a right-wing spin. She’s been seen ambushing migrants, illicit drug users and contraband sellers in grittier parts of Paris, racking up millions of views in the process. ACHILLES’ HEEL: Dati is a polarizing figure and tends to make enemies. Despite being a member of the conservative Les Républicains, Dati bagged a cabinet position in early 2024, braving the fury of her allies as she attempted to secure support from the presidential orbit for her mayoral run. But the largest party supporting President Emmanuel Macron, Renaissance, has instead chosen to back one of Dati’s center-right competitors. The party’s leader, Gabriel Attal, was prime minister when Dati was first appointed culture minister, and a clash between the two reportedly ended with Dati threatening to turn her boss’s dog into a kebab. (She later clarified that she meant it jokingly.) If she does win, she’ll be commuting from City Hall to the courthouse a few times a week in September, when she faces trial on corruption charges. Dati is accused of having taken funds from French automaker Renault to work as a consultant, while actually lobbying on behalf of the company thanks to her role as an MEP. Dati is being probed in other criminal affairs as well, including accusations that she failed to declare a massive jewelry collection. She has repeatedly professed her innocence in all of the cases. Polling at: 27 percent Odds of winning: PIERRE-YVES BOURNAZEL After dropping Dati, Renaissance decided to back a long-time Parisian center-right councilman: Pierre-Yves Bournazel. HIS STRENGTHS: Bournazel is a good fit for centrists and moderate conservatives who don’t have time for drama. He landed on the city council aged 31 in 2008, and — like Dati — has been dreaming of claiming the top job at city hall for over a decade. His low profile and exclusive focus on Parisian politics could also make it easier for voters from other political allegiances to consider backing him. Pierre-Yves Bournazel. | Bastien Ohier/Hans Lucas/AFP via Getty Images ACHILLES’ HEEL: Bourna-who? The Ipsos poll cited in this story showed more than half of Parisians said they “did not know [Bournazel] at all.” Limited name recognition has led to doubts about his ability to win, even within his own camp. Although Bournazel earned support from Macron’s Renaissance party, several high-level Parisian party figures, such as Europe Minister Benjamin Haddad, have stuck with the conservative Dati instead. Macron himself appears unwilling to back his party’s choice, in part due to Bournazel being a member of Horizons, the party of former Prime Minister Édouard Philippe — who turned full Brutus and publicly called on the president to step down last fall. “I don’t see myself putting up posters for someone whose party has asked the president to resign,” said one of Macron’s top aides, granted anonymity as is standard professional practice. Polling at: 14 percent Odds of winning: ON THE FAR RIGHT THIERRY MARIANI Thierry Mariani, one of the first members of the conservative Les Républicains to cross the Rubicon to the far right, will represent the far right National Rally in the race to lead Paris. Though the party of the Le Pen family is currently France’s most popular political movement, it has struggled in the French capital for decades. Thierry Mariani. | Bertrand Guay/AFP via Getty Images HIS STRENGTHS: The bar is low for Mariani, as his party currently holds no seats on the city council. Mariani should manage to rack up some votes among lower-income households in Parisian social housing complexes while also testing how palatable his party has become to wealthier voters before the next presidential race. ACHILLES’ HEEL: Mariani has links to authoritarian leaders that Parisians won’t like. In 2014, he was part of a small group of French politicians who visited then-President of Syria Bashar al-Assad. He has also met Russia’s Vladimir Putin and traveled to Crimea to serve as a so-called observer in elections and referendums held in the Ukrainian region annexed by Russia — trips that earned him a reprimand from the European Parliament. Polling at: 7 percent Odds of winning: SARAH KNAFO There’s another candidate looking to win over anti-migration voters in Paris: Sarah Knafo, the millennial MEP who led far-right pundit-turned-politician Éric Zemmour’s disappointing 2022 presidential campaign. Knafo has not yet confirmed her run but has said on several occasions that it is under consideration. HER STRENGTHS: Though Zemmour only racked up around 7 percent of the vote when running for president, he fared better than expected in some of Paris’ most privileged districts. The firebrand is best known for popularizing the “great replacement” conspiracy theory in France — that white populations are being deliberately replaced by non-white. She appeals to hardline libertarian conservatives whose position on immigration aligns with the far right but who are alienated by the National Rally’s protectionism and its support for the French welfare state. Sarah Knafo. | Bastien Ohier/Hans Lucas/AFP via Getty Images Knafo, who combines calls for small government with a complete crackdown on immigration, could stand a chance of finishing ahead of the National Rally in Paris. That would then boost her profile ahead of a potential presidential bid. If she reaches the 10 percent threshold, she’d be able to earn her party seats on the city council and more sway in French politics at large. ACHILLES’ HEEL: Besides most of Paris not aligning with her politics? Knafo describes herself as being “at an equal distance” from the conservative Les Républicains and the far-right National Rally. That positioning risks squeezing her between the two. Polling at: 7 percent Odds of winning: EDITOR’S NOTE: Poll figures are taken from an Ipsos survey of 849 Parisians released on Dec. 12.

One trillion US dollars of gross domestic product (GDP) has been surpassed. Poland has entered the ranks of the world’s 20 largest economies, symbolically ending a phase of chasing the West that has lasted more than three decades. The Polish Development Fund’s (PFR) new strategy seeks to address the challenge of avoiding the medium-level development trap and transitioning from the role of subcontractor to that of investor. This year marks a turning point in Polish economic history. After years of transformation, reforms and overcoming civilizational deficits, Poland has reached a point that the generation of ‘89 could only dream of. GDP crossed the symbolic barrier of US$1 trillion, and we proudly enter the exclusive club of the world’s 20 largest economies. Diversified Polish exports are breaking records, and innovative companies are conquering global markets. Sound like a happy ending? Not necessarily. Via PFR Investing for future generations Poland’s past success invites tougher challenges in a brutal world. The cheap labor growth model is dead; demographics are relentless. PFR analyses highlight declining employment as a core issue — without bold changes, stagnation looms. Piotr Matczuk, PFR president, says Poland needs an impetus for resilience, innovation and growth. PFR’s 2026-2030 strategy is that roadmap, urging a shift to high gear. On Dec. 10, it unveiled investments for future generations. Geopolitics enters the balance sheet PFR’s strategy marks a paradigm shift: integrating economics with security. Business now anchors state security, with “economic and defence resilience” as a core pillar — viewing security spending as essential insurance, not cost. > The PFR’s strategy is clear: the competitiveness of the Polish economy depends > directly on access to cheap and clean energy. PFR has invested in WB Electronics, Poland’s defense leader in command systems and drones. It expands beyond arms via dual-use tech: algorithms, encrypted communications and autonomous drones often from civilian startups. This spring’s PFR Deep Tech program backs venture capital (VC) for scaling these firms; IDA targets innovations for logistics, cybersecurity and future defense. The focus is Poland’s technological sovereignty. Controlling key security links — from ammo to artificial intelligence — ensures economic maturity resilient to geopolitical shocks. > Poland needs a boost to our resilience, innovation and growth rate. That is > why the new strategy emphasizes investment in new technologies, infrastructure > and the financial security of Poles. We want the PFR to be a catalyst for > change and a partner of choice — an institution that invests for future > generations, sets quality standards in development financing and supports > Polish entrepreneurs in boosting their international presence. > > Piotr Matczuk, President, PFR Piotr Matczuk, President, PFR / Via PFR Energy: to be or not to be for the industry If defense is the shield, then energy is the bloodstream. The PFR’s strategy is clear: the competitiveness of the Polish economy depends directly on access to cheap and clean energy. Without accelerating the transformation, Polish companies, instead of increasing their share in foreign markets, may lose their position. This is why the fund wants to enter the game as an investor where the risks are high, but the stakes are even higher — into an investment gap that the commercial market alone will not fill.  The concept of local content, in other words the participation of domestic companies in the supply chain, is key to the new strategy. This is where the circle closes. The Baltic Hub is not just a container terminal. Investment in the T5 installation terminal is the foundation, as the Polish offshore will not be built with the appropriate participation of a domestic port. This is a classic example of how the PFR works: building ‘hard’ infrastructure that becomes a springboard for a whole new sector of the economy.  The end of being a subcontractor: capital emancipation Taking inspiration from, among others, France’s Tibi Initiative, in mid-November 2025 the Polish minister of finance and economy, Andrzej Domański, announced the Innovate Poland program. The PFR plays a leading role in what will be the largest initiative in the history of the Polish economy to invest in innovative projects. Thanks to cooperation with Bank Gospodarstwa Krajowego (BGK), PZU and the European Investment Fund, Innovate Poland is already worth 4 billion złoty, and the program multiplier may reach as much as 3-4. The combined development and private capital will be invested by experienced VC and private equity funds. The aim is to further Poland’s economic development — driven by innovative companies that make a profit. In the first phase, it is expected to finance up to 250 companies at various stages of development. Via PFR The expansion of Polish companies abroad is also part of the effort for advancement in the global hierarchy. Their support is one of the pillars of the new PFR strategy. For three decades, Poland has played the role of the assembly plant of Europe — solid, cheap and hard-working. However, the highest margins, flowing from having a global brand and market control, went overseas. Polish companies need to stop being anonymous subcontractors and become owners of assets in foreign markets.  Here, the PFR acts as financial leverage. The support for the Trend Group is a prime example of this maturing process. This is a transaction with a symbolic dimension: it reverses the investment vector of the 1990s, when German capital was consolidating Polish assets. Today, it is Polish entities that are increasingly becoming leaders in offering industrial solutions in the European Union. > Polish companies need to stop being anonymous subcontractors and become owners > of assets in foreign markets. However, these ambitions extend beyond the Western direction. The strategy strongly emphasizes Poland’s role in the future reconstruction of Ukraine and the consolidation of the Central and Eastern European region. The involvement of the PFR in the operations of the Euvic Group on the Ukrainian IT market is a good example. In the digital world, big players have more power, and the PFR strives to ensure that the decision-making centers of those growing giants remain in Poland. Most importantly, Polish businesses are no longer alone in this struggle. The strategy institutionalizes the concept of ‘Team Poland’. In this initiative, the PFR provides capital; BGK, a state development bank, offers debt solutions; the KUKE, an insurance company, insures the risk; and the Polish Investment and Trade Agency provides promotional support. Acting like a one-stop shop, all these institutions enable Polish capital to compete as a partner in the global league. This is part of the Polish government’s modern economic diplomacy strategy, led by Domański. Capital for generations. From an employee to a stakeholder in the economy  All grand plans need fuel. Mature economies like the Netherlands and the United Kingdom harness citizens’ savings via capital markets. PFR’s strategy boldly demands Poland’s success create generational wealth: turning the average Kowalski from an employee into a stakeholder. Diagnosis is brutal: Poles save little (6.38 percent compared with the EU’s 14.32 percent in Q1 2024) and inefficiently, favoring low-interest deposits. Employee Capital Plans (PPK) drive cultural change. Hard data demonstrate this: 67 percent average returns over five years crush traditional savings. It’s a virtuous cycle — PPK capital feeds stock markets, finances company growth and loops profits back to future pensioners. An architect, not a firefighter  The new PFR strategy for 2026-30 is a clear signal of a paradigm shift. The company, which many Polish entrepreneurs still see as a firefighter extinguishing the flames of the pandemic with billions from the Anti-Covid Financial Shields, is definitively taking off its helmet and putting on an engineer’s hard hat. It is shifting from interventionist to creator mode, abandoning the role of ‘night watchman’ of the Polish economy to that of its ‘chief architect’. This is an ambitious attempt to establish an institution in Poland that not only provides capital, but also actively shapes the country’s economic landscape, setting the direction for development for decades to come.

PARIS — A generational reckoning is brewing in Paris and Berlin, where a new wave of younger politicians is putting pensioners on notice: The system is buckling and can’t hold unless retirees do more to help fix it. Culture, language and local politics may add a distinct flavor to each debate, but the European Union’s two biggest economies are dealing with the same issue — how to pay for the soaring costs associated with the retirement of baby boomers.   The problem is both demographic and financial. Declining birthrates mean there aren’t enough young people to offset the boom in retirees at a time when economic growth is sluggish, salaries have stagnated and purchasing power isn’t evolving at the same rate as it did for previous generations. And with the cost of real estate skyrocketing, young people feel that buying a home and other opportunities afforded to their parents’ generation are increasingly out of reach.  With budgets already strapped thanks to priorities such as rearmament in the face of Russian aggression, reindustrialization and the green transition, a growing number of young politicians from the center to the right of the political spectrum are calling out retirees for not contributing to the solution.  Some lawmakers in Germany, like 34-year-old Johannes Winkel, are calling for greater “intergenerational justice.” The 38-year-old French MP Guillaume Kasbarian is going a step further, arguing France should rethink its pay-as-you-go system — similar to Germany’s — in which current workers fund retirees’ pensions through taxes. The 38-year-old French MP Guillaume Kasbarian is going a step further, arguing France should rethink its pay-as-you-go system — similar to Germany’s — in which current workers fund retirees’ pensions through taxes. | Amaury Cornu/Hans Lucas/AFP via Getty Images Targeting pensioners is a politically dangerous proposition. They are a reliable voting constituency, heading to the ballot box in greater numbers than younger generations — and they lean centrist. German Chancellor Friedrich Merz’s conservative bloc got an estimated 43 percent of the vote among people aged 70 and above in February’s general election, and older voters helped Macron secure reelection in 2022.  French Budget Minister Amélie de Montchalin told lawmakers last month that she didn’t “want to trigger a generation war” over the government’s fiscal plans for next year.  But she — and her counterparts across the Rhine — may not have a choice. ‘FAIR TO ALL GENERATIONS’ Lawmakers in France are sparring this week over a highly contentious plan to freeze inflation adjustments on pension payments next year, part of a wide-ranging effort to trim billions of euros from the budget and get the deficit below 5 percent of gross domestic product. The debate in France echoes similar conversations in Germany, where Winkel is among a group of young conservatives who rebelled against a pension reform package put forth by Merz’s government, saying current benefits for older people are too generous and asking for a plan that is “fair to all generations.”   A group of leading economists argued in an op-ed in German newspaper Handelsblatt that Merz’s proposed pension package would be “to the detriment of the younger generation, who are already under increasing financial pressure.”   The leaders of Germany’s coalition set out to resolve the dispute last week, with Merz vowing to take on a second, more far-reaching set of pension reforms as early as next year.   Winkel is among a group of young conservatives who rebelled against a pension reform package put forth by Merz’s government, saying current benefits for older people are too generous and asking for a plan that is “fair to all generations.”  | Photo by Nadja Wohlleben/Getty Images But it’s unclear whether that proposal has appeased all young conservatives. In a letter this week, the group said its 18 lawmakers would decide individually how they will vote on the immediate pension package, which is set to go for a vote on Friday. Every vote will matter, as Merz’s fragile coalition has a majority of only 12 parliamentarians. On Tuesday, Merz’s center-right bloc held a test vote to see if there was enough conservative support to pass the pension reform package. The results of the internal vote were unclear. Opinion surveys in Germany and France show that much of the public favors protecting existing pension systems and benefits. Leftist parties in both countries have also strongly pushed back against measures that would freeze or lower pension benefits, arguing that the public pension system is a core element of social cohesion. But intergenerational cracks are emerging.  “Measures on pensions show a generational cleavage: They are massively rejected by pensioners but supported by nearly one out of two in the younger generation (18-24),” according to an analysis from French pollster Elabe published in October.  In another poll from Odoxa, a small majority of working-age people in France agreed that current pensioners are “better off because they were able to leave earlier than those still working.” KEY DIFFERENCES There are key differences between France and Germany, however. Pension benefits in France are far more generous than in Germany, and help keep the poverty rate among people aged 65 and above lower than that of the general population.  The opposite is true in Germany, where the over-65 population is worse off than those younger than 65, in part because public pensions became comparatively lower after pension reforms passed in the 2000s.  Ultimately, however, demographics and economics vary so much from one generation to another that it’s almost impossible to make a pension system “fair,” according to Arnaud Lechevalier, an economist at the Paris 1 Panthéon-Sorbonne University. The idea that each generation can have the same return on investment on their working-aged contributions is, in Lechevalier’s words, “a deeply stupid idea.”

PARIS — An impassioned call from France’s new top general for mayors to prepare their constituents for possible war with Russia was met with swift condemnation from major political parties. Speaking at an annual meeting of French mayors in Paris on Tuesday, Gen. Fabien Mandon urged local officials to prepare citizens that they may need “to accept suffering in order to protect who we are.” “We have all the knowledge, all the economic and demographic strength to deter the Moscow regime,” Mandon said. But he said that if France “is not prepared to accept losing its children, to suffer economically because priorities will be given to defense production, then we are at risk.” Parties on both fringes of the political spectrum — together representing a significant share of voters — pushed back, underscoring France’s lack of consensus on the need to prepare for war as well as diverging assessments on how much of a threat Russia poses to the French homeland. Hard-left leader Jean-Luc Mélenchon, who has run for president three times, expressed his “total disagreement” with Mandon in a post on X and said it is not Mandon’s job to “anticipate sacrifices that would result from our diplomatic failures.” He was joined by Communist Party leader Fabien Roussel, who accused Mandon of “warmongering.” Mélenchon’s France Unbowed and the Communists were the only parliamentary groups to vote against a symbolic resolution last year authorizing sending military aid to Ukraine. Sébastien Chenu, a lawmaker from Marine Le Pen’s far-right National Rally, said Wednesday in an interview with French broadcaster LCI that Mandon had “no legitimacy” to make such remarks and said he was worried that they reflected President Emmanuel Macron’s thinking. Mandon, who was appointed earlier this year to replace Gen. Thierry Burkhard as France’s top general, previously warned in his first parliament hearing last month that the French armed forces should be ready “in three or four years” for a “shock” with respect to Russia.  France Unbowed and the National Rally, who, according to recent polling, could face off in the next presidential election runoff, both want France to leave NATO’s integrated command. While France Unbowed wants Paris to leave the military alliance altogether as soon as possible, the National Rally is ready to wait until Russia’s war in Ukraine is over to do so.

ROME — The conservative think tank behind Donald Trump’s Project 2025 roadmap is looking for new friends across the Atlantic.  The Heritage Foundation, the intellectual engine behind the 922-page blueprint that has become the key policy manual for Trump’s second term, is partnering with a constellation of European nationalist far-right movements to export its playbook for countering progressive policies.  That included a conference in late October at the frescoed former home of late premier Silvio Berlusconi in Rome focused on Europe’s demographic crisis and the idea that falling birthrates pose a threat to Western civilization. Speakers included Roger Severino, Heritage’s vice president of domestic policy and the architect of the group’s campaign to roll back abortion access in the U.S., as well as Italy’s pro-life family minister Eugenia Roccella, the deputy speaker of the Senate, and members of Italian right-wing think tanks.  Severino and the Heritage Foundation’s president, Kevin Roberts, have also been speaking guests at summits and assemblies of far-right groups such as Patriots for Europe, which includes Marine Le Pen’s Rassemblement National and Italy’s League, under a Make Europe Great Again banner.  Meanwhile Heritage representatives have held private meetings in Washington and Brussels with lawmakers from far-right parties in Hungary, Czechia, Spain, France and Germany. Just in the past 12 months, the group held seven meetings with members of the European Parliament, compared to just one in the five years prior, according to Parliament records. And they’ve had additional meetings with MEPs that weren’t formally reported, including with three members from Italian Prime Minister Giorgia Meloni’s Brothers of Italy party. Severino told POLITICO that meetings with the European right serve to exchange ideas. But the meetings signal more than pleasantries. For European politicians, they’re a way to get access to people in Trump’s orbit. For Heritage, they’re a way to extend influence beyond Washington and achieve its ideological goals, which under Roberts have grown increasingly aligned with Trump’s MAGA approach.  Mike Gonzalez, a senior fellow at Heritage, said he meets with conservative parties to share experience in dealing with common challenges — “comparing notes, that kind of thing.” He said his interlocutors are “very interested” in policies on abortion, gender theory, defense and China, adding that parts of Project 2025 such as a section he wrote on defunding public broadcasters, are “very transferable” to Europe.  The foundation has been active in Europe for years, he points out, but demand has increased since Trump’s return to office. European right-wing leaders, Gonzalez said, “see Trump and what he is doing and say, ‘I want to get me some of that.’”  BETTER THE SECOND TIME It’s not the first time MAGA has attempted to galvanize the European right. Trump’s former strategist Steve Bannon unsuccessfully tried to unite populist nationalist parties under the Movement think tank in 2019, hamstrung by a lack of buy-in from the parties themselves.  Some observers are doubtful this renewed push will go differently. “I’m skeptical that it will amount to much,” said EJ Fagan, an associate politics professor at the University of Illinois and author of The Thinkers, a book on partisan think tanks. “The European right have their own resources that produce policies, so there’s not a lot Heritage can provide to European parties.”  That is especially an issue, Fagan noted, when it comes to finessing legislation, since Heritage doesn’t have a deep bench of “people who have a fine understanding of laws and treaties” in Europe.  But the Heritage Foundation’s European mission comes as far-right groups gain ground across Europe by tapping public frustration over issues such as immigration, climate policy and sovereignty and pushing policies that are similar to those laid out in the group’s Project 2025 agenda.  Heritage Foundation’s president, Kevin Roberts, have also been speaking guests at summits and assemblies of far-right groups such as Patriots for Europe. | Jim Lo Scalzo/EPA In Italy, two MPs have proposed legislation granting fetal personhood, which would make abortion impossible. The regional government in Lazio is preparing to approve a law that would guarantee protection of the fetus “from conception,” echoing a similar push in the US. And Rocella, Meloni’s family minister who appeared last month with Heritage’s Severino, is attempting to block a regional law banning conscientious objectors from roles in clinics providing abortions.  It’s not just reproductive rights. Meloni’s government has pulled out of a memorandum of understanding on the Belt and Road Initiative, the Chinese government’s ambitious program that aims to finance over $1 trillion in infrastructure investments. It effectively blocked Chinese telecoms giant Huawei from being a part in telecommunications development.  Lucio Malan, an MP in Meloni’s Brothers of Italy party and a panelist at two conferences organized with the Heritage Foundation, attempted to reverse a ban on homophobic and sexist advertisements — though he told POLITICO he took part in the events on the invitation of the center-right FareFuturo think tank, which co-organized the events with Heritage.   Heritage and its allies in the Trump administration have everything to gain from stronger nationalist parties in Europe, which are also pushing for delays in climate and agriculture regulations and sided with the US and Big Tech on digital regulation. Earlier this year, Heritage hosted the presentation of proposals by two far-right European think tanks, Hungary’s Mathias Corvinus Collegium (MCC) and Poland’s Ordo Iuris Institute for Legal Culture, to overhaul and hollow out the EU, undermining the commission and the European Court of Justice. And Heritage’s activity in Europe comes as the organization faces a swirl of controversy back home after Roberts sided with right-wing political commentator Tucker Carlson over criticism for interviewing a white nationalist. The incident triggered an open revolt against Roberts, who subsequently apologized. The unexpectedly swift and wide-ranging implementation of Project 2025 in the U.S. has boosted Heritage’s credentials in Europe, said Kenneth Haar of Corporate Europe Observatory, a non-profit that monitors lobbying in the EU. “Trump’s wholesale adoption of their agenda has given them unparalleled status,” he said. Now, Haar added, Heritage “is not just a think tank from the U.S., it is a representative of the MAGA coalition. It is not an exaggeration to say they are carrying out foreign policy on behalf of the president.” But the Heritage Foundation’s European mission comes as far-right groups gain ground across Europe by tapping public frustration over issues such as immigration, climate policy and sovereignty and pushing policies that are similar to those laid out in the group’s Project 2025 agenda. | Shawn Thew/EPA For Heritage, there’s good reason to focus on Europe in particular: It has become a focal point for the group’s donors and activists in the U.S., who fret about perceived Islamicization and leftist politics on the continent.  “We have an existential interest in having Europe be sovereign and free and strong,” Gonzalez told POLITICO. A RALLYING POINT Historically, Europe’s right has struggled to cooperate, with different factions representing conflicting national interests. But the machinery underpinning Trump’s reelection, and his ability to move national policy in European capitals, has shifted those dynamics, making Heritage “a factor in uniting the European right,” Haar said.  “MAGA has become a rallying point, the European right is meeting more frequently,” he added. Trump’s support for their policies also gives them more “clout” in Europe, he said, as Europe’s leaders seek favor from Trump and his allies across a range of issues, including tariffs.  Transparency activists said that they’re seeing a notable uptick in activity that suggests Heritage is gaining traction beyond symposiums and events.  Raphaël Kergueno, Senior Policy Officer at Transparency International, a NGO advocating against undue political influence, said the group’s activities — including those undeclared meetings with MEPs, which may put those members in breach of the European Parliament’s code of conduct — underscores the weakness of European rules on lobbying and advocacy.  Kenneth Haar added, Heritage “is not just a think tank from the U.S., it is a representative of the MAGA coalition. It is not an exaggeration to say they are carrying out foreign policy on behalf of the president.” | Shawn Thew/EPA “The Heritage Foundation has pushed blatantly anti-democratic projects, and is now free to court MEPs without disclosing its goals or funding,” he said. “If the EU does not clean up its act, it will allow hostile actors to import authoritarianism through the backdoor.” But Nicola Procaccini, an MEP in Meloni’s party who has held several meetings with Heritage, dismissed the idea that Heritage presents a danger to the rule of law or to European politics. He said he has not read Project 2025, and pointed to the group’s long history as an economic policy powerhouse — though that has changed in the Trump era, as the group’s new head Roberts has pivoted closer to Trump.  Nevertheless, he said, “You can share or not share their views … but Heritage is certainly an authoritative voice.”  

LONDON — The self-styled “eco-populist” leader of Britain’s Green Party couldn’t be ideologically further from right-wing firebrand Nigel Farage. But, as Zack Polanski presides over a leap in his party’s poll ratings, he’s actively channeling the Reform UK leader’s media strategy, and putting himself front and center of the argument for change. It’s a high-stakes gamble that, like Farage, could see him accused of turning the outfit into a one-man band. But so far, it appears to be working. “I don’t want everyone to agree with what I or the Green Party is saying,” Polanski told POLITICO in an interview. “What I do want everyone to know is, I’ll always say what I mean.” ‘REACHING THE CEILING’ Polanski won a landslide victory in the Greens’ heated summer leadership election, handing him the reins of a party that made strong inroads at the last election — but still has just four Members of Parliament. Though the Greens stress many spokespeople will continue to represent the organization, he undoubtedly dominates media appearances, and the party is pushing him as an electoral asset. “We were reaching a ceiling of where you could get to by [the] ground game alone,” Polanski reflects of the Greens’ past performance. “What maybe was holding us back was not being heard in the national media.”  Next month, he’ll walk a well-trodden path for British politicians wanting to raise their profile with an appearance on “Have I Got News for You,” the BBC’s long-running satirical quiz show poking fun at politicians. Despite the cheeky reputation, it’s a national institution and a firm part of the establishment with a large national viewership. Previous guests include Farage himself — and Boris Johnson. Polanski says he wants to “make sure that the media have an easy access point” to the party, and the Green leader seems willing to go to places where he’ll have to put up a fight, too — including a colorful on-air battle with Piers Morgan. He’s even launched his own podcast, currently ranked ninth in the U.K. Apple Podcasts charts for politics shows. Some of the numbers lend credence to the Green leader’s theory of the case. The party now has more than 150,000 members, according to its own estimates, compared to 68,500 when Polanski took over. That puts it ahead of the Conservatives and Liberal Democrats in membership numbers. As Nigel Farage bids to eclipse the Conservatives as a right-wing force in British politics, he has used regular defections to Reform UK to show he’s on the march. | Carl Court/Getty Images Polanski also appears to have overseen a steady polling uptick for the left-wing outfit, as borne out in POLITICO’s Poll of Polls. “There’s a definite and obvious increase,” says YouGov’s Head of European Political and Social Research Anthony Wells.  “He’s already far better known than [predecessors] Carla Denyer and Adrian Ramsay were.” Wells cautions: “It’s not like the public are in love with him, but the public do … dislike him less than most of the party leaders,” Wells adds. CONVICTION POLITICS As Farage bids to eclipse the Conservatives as a right-wing force in British politics, he has used regular defections to Reform UK to show he’s on the march. Polanski has tried similar, crowing about defections by ex-Labour councilors from the left. In video campaigning, too, Polanski has taken a leaf out of Reform’s book. He peppered his leadership run with arresting monologues to camera, and he has opted to weigh in on — rather than duck — the divisive issue of immigration. A video by the coast urged voters to “hold that line together” against the “super rich” rather than attacking asylum seekers crossing the English Channel in small boats. “The biggest draw for those films is the fact that Zack is prepared to speak about these things — like a lot of other politicians aren’t,” argues the film’s creator Jeremy Clancy, who leads a creative agency making films for progressive outlets. Clancy used to serve as senior communications manager for ex-Labour Leader Jeremy Corbyn. Praising the contribution of migrants when polling shows the public want lower levels is a risky bet. The Green leader argues voters will respect a clear stance, even if they disagree. “People who know that their politicians are telling the truth and are speaking with conviction are always preferred,” he says. Like Reform, Polanski’s team has so far tried to paint in populist, primary colors. His first party political broadcast — a convention by which parties are given guaranteed five-minute TV slots — was filmed in the early hours as a metaphor about billionaires sleeping comfortably while others struggle. “Both were efforts to visualize things that you can’t see and to consciously make them as simple as possible,” Clancy says. Those short videos racked up millions of views. Whether this translates into electoral success, however, remains a wide open question. Next May’s local elections will offer the first real ballot box test of Polanski’s pitch. Ipsos’ Research Director for Public Affairs Keiran Pedley says the Greens are “still waiting for that breakthrough moment” and now need to “seal the deal” with voters. He cautioned against assuming cut-through for a leader will lead to electoral success. Pedley compared Polanski to ex-Liberal Democrat Leader Nick Clegg — who lost seats at the 2010 general election despite a major polling bounce mid-campaign off the back of strong televised debate performances. For now, those who’ve joined the movement seem bullish. “The Greens have gone from being a one-issue party, which is the environment, to basically being the broad left party,” said Swindon Borough Councilor Ian Edwards, who joined the Greens in October after resigning the Labour whip earlier this year. But he added: “We can’t rely on just a leader. We’ve got to prove ourselves.”

CAGLIARI, Italy — Sardinia is one of the world’s most beautiful islands, which raises the question: Where is everyone? Not tourists — there are plenty of those — but locals. The island’s population is 1.57 million, down from 1.64 million three decades ago, but half live in its two largest urban areas, while smaller towns and villages are withering. The big problem is that people aren’t having babies. With an average of 1.18 children per woman, Italy has one of the lowest fertility rates in the European Union. Sardinia recorded the lowest rate in Italy, at 0.91 children per woman. Just to keep a population stable, women should have an average of 2.1 children. High unemployment on the island and better job prospects elsewhere are doing the rest, emptying dozens of villages of their young people. “The last child was born here 10 years ago,” said Maria Anna Camedda, the mayor of Baradili, Sardinia’s smallest village with a population of 76. The place is tiny — less than 500 meters separates the “Welcome to Baradili” sign from the one marking the end of the village, which is well-maintained and adorned with photos — like a big family house. The risk of places like Baradili becoming ghost towns is prompting the island to try to lure in newcomers. A couple moving to a Sardinian village of fewer than 3,000 residents can receive up to €15,000 to purchase or renovate a home, up to €20,000 to start a business that creates local jobs, and a monthly subsidy of €600 for their first child plus €400 for each subsequent child until they turn 5. These incentives are part of an anti-depopulation package introduced by the island. They come on top of local emergency measures, such as the municipality of Ollolai’s offer of €1 houses for newcomers. Despite the incentives, migrants are snubbing the island. The risk of places like Baradili becoming ghost towns is prompting the island to try and lure in newcomers. | Tommaso Lecca/POLITICO Romania, Senegal, Morocco, China and Ukraine are the home countries of roughly half of the 52,000 foreigners residing in Sardinia, which is about 3.3 percent of the island’s population. The national average is 8.9 percent. In 2022, the number of foreigners moving to Sardinia did not account for even a quarter of the population decline that occurred that year. The Italian demographic winter, which is even tougher in Sardinia, recently forced Giorgia Meloni’s right-wing government to allow 500,000 foreign workers into the country over the next three years. But the population collapse remains stark in small communities like Baradili. Over 30 years ago, the village closed its one-room primary school, in which all 15 local children, ranging in age from 6 to 10, learned together. Baradili and nearby villages opted for a rotating school system in which children attend classes in three different villages throughout the year. A free bus picks them up every morning. Attending high school or reaching a hospital is much harder, as both services are over 30 kilometers away. The challenges of serving communities like Baradili prompted Meloni’s government to acknowledge in the recent National Strategic Plan for Internal Areas that some parts of the country “cannot set themselves any goals for reversing the [depopulation] trend, but neither can they be left to their own devices.” The document proposed setting up “a targeted plan to assist them in a process of chronic decline and aging.” This wording provoked indignation, even among 140 Catholic Church representatives, who denounced the government’s plan as “support for a happy death” of villages. But Camedda is not impressed. “It was simply put down in black and white what the government — not just this government — has been doing for several decades,” she said. Baradili is doing everything it can to survive. It introduced a €10,000 subsidy on top of the incentives granted at the regional level. The village is served by a swimming pool, a football field, tennis and padel courts and even a motorhome park. In 2022, Baradili celebrated the arrival of four families, which brought nine new residents. EXPAT CAVALRY While many young Sardinians are leaving small rural villages to embrace urban life, some expats are taking the opposite direction. Ivo Rovira, a Spanish photographer working for the America’s Cup sailing competition, ended up in his new home village of Armungia by chance. In 2023 he spent several months in Cagliari, the capital city of Sardinia, snapping photos for the Italian sailboat Luna Rossa. “One day, in January, I was driving toward the interior of the island looking for some snow. I arrived in Armungia, a place I had never heard of before.” Rovira’s photographer’s eye was captivated by the landscape of the village, which has fewer than 400 residents. Ivo Rovira, a Spanish photographer working for the America’s Cup sailing competition, ended up in his new home village of Armungia by chance. | Tommaso Lecca/POLITICO “I parked the car and went for a walk. I found a house in the historic center with a ‘For Sale’ banner. Ten days later, I put down a deposit to buy it,” he said. After renovating the old house, which used to be a wine shop but had sat empty for 30 years, Rovira and his wife, Ana Ponce, moved to Armungia permanently. They also set up a restaurant that is open a few days per month, depending on demand. “It takes half an hour to drive to a supermarket along winding roads, but there is an international airport an hour away,” he said. “We don’t feel like digital nomads; we are real Armungians,” Rovira added. Bianca Fontana, an Australian with Italian roots, dreamed of moving to Italy after the pandemic. She joined a friend who was staying in Nulvi, a town of around 2,500 — larger than some tiny communities, but still eligible for the regional grants. A historical photo of the Secci family store, the house purchased by Ivo Rovira. Courtesy of the Sa Domu de is Ainas – Armungia Ethnographic Museum Collection. | Tommaso Lecca/POLITICO “I bought a house within two weeks. And I moved here about six months later,” Fontana said. She grew up in a country town in Australia before living in London and Shanghai. “I did get to a point where I was feeling quite exhausted in bigger cities, and I wanted to find a smaller, quieter place,” she said. Fontana now talks about her new life in Sardinia on her YouTube channel, which has over 3,000 subscribers. Many of them regularly comment on her videos about renovation grants, work on her own house, archaeological excursions and local wine. There is also an effort to keep locals from leaving. Marcello Contu left Sardinia at the age of 18 to move to Turin, and then lived in Barcelona and Australia. Bianca Fontana sits in front of a mural in the village of Nulvi. Courtesy of Bianca Fontana. | Tommaso Lecca/POLITICO But then he moved to the 120-person village of Bidonì to start a vegan cheese-making business. “The artisanal production of plant-based cheeses requires great attention, waiting times, experimentation, and daily care that are difficult to reconcile with chaotic environments,” he said. Contu’s products are now available in dozens of restaurants and shops across Sardinia and the rest of Italy. “Geographical isolation and a lack of services translate into a constant practical challenge: Sourcing raw materials or making deliveries often requires long journeys, with longer times and higher costs than for those working in better-connected areas,” he said. But Contu believes that small villages can become “ideal places for developing craft, creative, and sustainability-related activities, because they offer what large cities have often lost: time, spaces on a human scale, authentic relationships, and a strong connection with the local area and nature.” Rovira and Fontana are also impressed by the capacity of Sardinian villagers to stick together. Ivo Rovira and Ana Ponce in front of their new house in Armungia. | Tommaso Lecca/POLITICO Rovira was once told by a neighbor: “We live in such a small village that if we don’t help each other, we’re dead.” REALLY, REALLY CHEAP HOUSES Ollolai made a name for itself as the town of €1 houses — a project that started in 2016. According to Francesco Columbu, the local mayor, about 100,000 people registered interest in the €1 houses, but the municipality could only accommodate a few aspiring Ollolai residents. The scheme acts as an intermediary between owners of old houses — often split across different families of heirs — and those seeking to obtain them for peanuts. As a result, only a handful of foreign families have obtained a €1 house. Meanwhile, the village has continued to lose inhabitants, dropping from 1,300 when the offer began to 1,150 now. “While it’s possible that a cultured American or German who loves stone architecture or that of another Sardinian village moves there, this does not create the economic benefits needed to solve problems,” said Anna Maria Colavitti, professor of urban planning at the University of Cagliari. Colavitti analyzed the results of the €1 houses, concluding that they “alone are not enough, just as incentives for having kids are not enough,” she said. Colavitti’s study also showed that new owners sometimes decide to resell the €1 property at the same price they paid for it because they cannot afford the higher-than-expected renovation costs or are dissatisfied with their choice. But the mayor of Ollolai keeps fighting with the tools he has. “Ollolai will not die so easily. The inland villages of Sardinia have seen their fair share of crises. They went through periods of plague in the 1600s … yet they recovered,” Columbu said. “We have a better quality of life, and we’re an hour away from some of the most beautiful beaches in the world. I say the beautiful things will never die.”

Friedrich Merz’s stimulus can’t arrive quickly enough. The number of people out of work in Germany rose by more than expected again in September, as years of economic weakness took their toll on the labor market. Data released by the Federal Labor Office showed unemployment, adjusted for seasonal effects, rose by a worse-than-expected 14,000 to a new 14-year high of 2.98 million. “The labor market continues to lack the necessary impetus for a stronger recovery,” said labor office head Andrea Nahles. Indeed, the local headlines are being conspicuously dominated by national champions shedding staff. Earlier this week, Lufthansa said it will cut 4,000 administrative jobs by 2030. The news came only days after engineering giant Robert Bosch said it would cut an additional 13,000 positions by 2030, after announcing 5,550 layoffs in November last year. Automaker Volkswagen and Germany’s second-largest lender, Commerzbank, announced significant job cuts earlier this year. Such trends are having knock-on effects further down the supply chain: Insolvencies nationwide were up over 12 percent from a year earlier in the first half of 2025. Last week it was the turn of Kiekert, an auto supplier that pioneered central locking sytems, to declare itself bankrupt, putting another 700 German jobs at risk. Europe’s largest economy has been in recession for two consecutive years and will eke out minimal growth this year, according to a report from think tanks that advise the government. Many fear the country risks missing out on the turnaround that Chancellor Friedrich Merz promised to deliver when he took office earlier this year. Companies have become increasingly skeptical that the government will deliver necessary reforms. Only last month, the unadjusted number of unemployed in Germany passed 3 million for the first time in a decade. It dipped back below that level in September, as is usual at this time of year. The seasonally adjusted jobless rate remained stable at 6.3 percent of the workforce. While analysts say that unemployment may continue to tick up, they argue that changing demographics and ongoing skills shortages should prevent any massive surge similar to the one in the early 2000s that triggered radical labor market reforms under then-Chancellor Gerhard Schröder. The jobs numbers wasn’t the only worrying data out of Germany on Tuesday. Retail sales volumes in August fell 0.5 percent, suggesting that consumers are getting increasingly cautious about spending. On the brighter side, recent declines in world energy prices are leaving more in consumers’ pockets, and Pantheon Macroeconomics’ Claus Vistesen pointed out that planned cuts to energy-related taxes will give them a further boost from January.