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.

Donald Trump this spring dubbed himself the “fertilization president.” But some conservative family policy advocates say he’s done little so far to publicly back that up and are pushing to get the White House in the remaining months of the year to prioritize family policy — and help Americans make more babies. A top priority is a pronatalist or family policy summit that spotlights the U.S.’s declining fertility rate. Other asks, which typically run through the White House’s Domestic Policy Council, include loosening regulations on day cares and child car seats, further increasing the child tax credit and requiring insurers to cover birth as well as pre- and post-natal care at no out-of-pocket cost. While the Trump administration has advanced a handful of policies explicitly billed as “pro-family,” some conservative advocates are dismayed that the president has not done more on one of his campaign’s most animating issues. The lack of movement threatens to dampen enthusiasm among parts of the Republican Party’s big tent coalition, including New Right populists, who worry about the erosion of the U.S. workforce, and techno-natalists, who advocate using reproductive technology to boost population growth, as the GOP stares down a challenging midterm election. “I think there are people, including the [vice president] and people in the White House, who really want to push pro-family stuff,” said Tim Carney, a senior fellow at the American Enterprise Institute who recently wrote “Family Unfriendly,” a book that has become popular in conservative circles. But “it hasn’t risen to the forefront of the actual decision-making tree in the White House, the people who can put some velocity on things.” “It’s all nascent,” Carney added, but “it is going to be something that Republicans want to talk about in the midterms.” White House aides acknowledge advocates’ restlessness, but argue that even as it has yet to take action on the suite of explicitly pro-family proposals advocates want, they have taken a whole-of-government approach to family policy. Privately, the White House is deliberating its next moves now that the GOP’s tax and policy bill passed. It’s taking a two-pronged approach: addressing financial pressures and infertility issues that prevent people from having children; and helping couples raise kids in alignment with their values. That latter bucket includes bolstering school choice and parental rights, promoting kin- and faith-based child care, and other actions that can help with the costs of raising children, including health care and housing. “You saw what we were able to accomplish in 200 days. It was a lot. Just wait for the next three-and-a-half years,” said a White House official, who was granted anonymity to discuss internal strategy. “There’s a lot of opportunity to accomplish a lot through pure administrative action, through the bully pulpit and, of course, if we need to, through working with Congress.” The official couldn’t rule out a family policy event hosted by the White House in the future. “Look, the president loves to convene stakeholders and thought leaders and policy leaders,” the official added. While they understand the White House has had its attention fixed on other issues, like foreign policy, immigration, and trade, pronatalists are anxious for the administration to do something about the declining birth rate. They see it as, quite literally, an existential crisis. “Demographic collapse has become the global warming of the New Right,” said Malcolm Collins, who along with his wife Simone, are two of the most outspoken techno-natalists and have pitched the White House on several policies. “And this is true, not just for me, but for many individuals within the administration, and many individuals within the think tanks that are informing the administration.” The Trump administration has advanced a handful of policies that conservatives argue will support families and, they hope, encourage people to have children. The president’s so-called One Big Beautiful Bill made permanent the child tax credit first passed as part of Trump’s first-term Tax Cuts and Jobs Act, increased the rate and adjusted it for inflation on an ongoing basis. The legislation also established a one-time $1,000 so-called baby bonus for children born in 2025 through 2028. Transportation Secretary Sean Duffy instructed his agency to give preference in competitive grants to communities with higher-than-average birth and marriage rates. Critics of the administration note that the megalaw will make it harder for people to keep their Medicaid insurance, the president’s proposed 2026 budget eliminates childcare subsidies for parents in college, and Trump’s CDC eliminated a research team responsible for collecting national data on IVF success rates. But family policy advocates say on the whole they see progress, though not nearly enough to reverse the trend of declining birth rates. “From my conversations with folks in the administration, there is definitely interest in doing something visible on the family stuff. They feel like they’re going down the list — homelessness, crime, obviously immigration — of different things and families’ time will come,” said Patrick Brown, a fellow at the conservative Ethics and Public Policy Center who focuses on family policy. The U.S. birth rate has been declining since the Baby Boom ended in the early 1960s, falling from 3.65 births per woman in 1960 to 1.599 in 2024, according to the CDC’s National Center for Health Statistics. There are similar trends across high-income nations, in part the result of easier access to contraception, changing societal values favoring careers over having children and high costs of living. The issue came to the fore during the campaign when Trump promised government-funded in vitro fertilization in an effort to allay concerns over his anti-abortion stance. A few months later, then-Sen. JD Vance doubled down on controversial comments about the country being run by “a bunch of childless cat ladies” and argued for more babies in the U.S. Elon Musk, perhaps the most prominent pronatalist, was Trump’s biggest financial booster during the campaign and a key adviser in the early days of the administration. There is no agreed-upon solution to the problem of a declining birth rate. Hungary is held up as a model by pronatalists for its family friendly policies but its birth rate remains low, despite exempting women with four or more children from paying income tax, among other incentives. The birth rate also remains low in Nordic countries like Sweden, Norway and Finland that have generous paid parental leave and heavily subsidized childcare. Still, advocates in the U.S. have a list for the Trump administration they believe will make a difference, arguing that even if they fail to increase the birth rate, they would support families. Some policies that pronatalists hope the Trump administration will pursue are more typically associated with the left, such as expanding child tax credits, which Trump did in the GOP megalaw, and reducing the costs of child care. But others have a home in the libertarian wing of the GOP, such as cutting regulations on day care and curbing car seat rules. Some of these proposals, pronatalists acknowledge, come with more risk but would overall result in more births. For decades, social conservatives led the GOP’s charge on families, arguing in support of policies that promote two-parent, heterosexual families. But declining birth rates, coupled with a broadening of the GOP coalition, has broadened the lens to focus on increasing the birth rate, a new pronatalist tinge. In an effort to keep their nascent and fragile coalition unified, neither social conservatives nor the techno-natalists are pushing policies at the extremes — like banning IVF or creating genetically modified super soldiers. That helps explain why the president has not taken action on one of his most concrete promises, making IVF free, despite receiving a report on it in May. A second White House official, granted anonymity to discuss internal deliberations, said expanding IVF access for families remains “a key priority,” but declined to offer specifics on the status of any policy moves. “This issue is a winner for the Republican Party, it’s a winner for women, it’s a pro-life issue,” said Kaylen Silverberg, a fertility doctor in Texas who has consulted with the White House on IVF. “This will result in more babies, period.” But social conservatives are morally opposed to IVF both because of a belief life begins at conception and because they don’t think that science should interfere with the natural act of procreation. The proposal would also be quite costly. Instead, they want the White House to support something called reproductive restorative medicine, which can include supplements and hormone therapy, that they say will help women naturally improve their fertility. “The point of President Trump’s campaign pledge was to help couples with infertility have children. There’s a way to do that that’s cheaper, faster, less painful and more preferable to couples,” said Katelyn Shelton, a visiting fellow at the Ethics and Public Policy Center’s Bioethics, Technology and Human Flourishing Program who worked at the Department of Health and Human Services during the first Trump administration. While most of the family policy conversation has been concentrated on the right, it’s also starting to grow on the left, alongside the so-called “abundance” movement focused on reducing government bureaucracy. Both the National Conservative Conference and the Abundance Conference this week in Washington hosted panels on family policy. Reducing barriers to building housing is “good for families,” said Leah Libresco Sargeant, a senior policy analyst at the Niskanen Center, a think tank that describes itself as supporting free markets and effective government, who co-moderated the Abundance Conference’s family policy panel. “That’s not kind of a family centered policy per se, [but] it’s a good policy that’s good for families.” Ultimately, many conservative family policy advocates argue there is only so much government can do to address what they see as a fundamentally cultural and religious problem. It’s a posture that the GOP’s historically small-government contingent takes as it pushes back on their new populist bedfellows. “I do not think that the problem of people not having enough kids is a problem of economics. I think that is very often a line that is used in order to promote a larger government populism,” said conservative commentator Ben Shapiro. “This is a predominantly religious problem, it’s a cultural problem.” Pronatalists have a lot of hope in the future of the GOP in part because of Vance, the administration’s most prominent and ideologically committed proponent of family policies, to carry the mantle, either during Trump’s presidency or as part of his own 2028 presidential bid. They love that Vance brings his children on official trips and is open about carving out time during the day to spend with them. “Our political leaders are inherently cultural leaders,” Carney said. “Bringing his kids with him to Europe and at the inauguration — where the little one, she was sucking on her fingers, so they had put Band-Aids on some of them so she wasn’t sucking all of them at once — all of those things that show a loving family and that kind of stuff, I think that can be culturally really productive.”

François Bayrou, France’s latest embattled prime minister, is blaming the country’s 19 million over-60s for pushing state finances to the brink. Looking likely to be the latest French leader to fall on his sword, Bayrou is going down fighting — albeit fighting old people. The working-age population faces “slavery,” he said, because it’s having to repay “loans that were light-heartedly taken out by previous generations.” Bayrou wants to force through €43.8 billion worth of budget cuts to bring French spending under control. But he faces a largely hostile French parliament, with the left and the right signaling they will vote him down at a confidence vote he’s called on Sept. 8. Where France, Europe’s second-largest economy, is going, the rest of the continent will probably follow. Not only do the country’s unsustainable finances threaten to drag the rest of the EU into a debt crisis of the kind that rocked the eurozone a decade and a half ago, but France’s troubles foreshadow a phenomenon that’s going to hit pretty much every European country sooner rather than later: Populations are getting older, meaning there are fewer workers to pay for an ever greater number of pensioners. How governments tackle that could be the challenge of our age.  NOT OK, BOOMER Bayrou, born in 1951, is blaming his fellow boomers. The over-60s make up over one-quarter of France’s population ― a share that is expected to rise to a third by 2040. They are either drawing a pension or about to, putting increasing pressure on France’s exploding public debt, which now exceeds €3.3 trillion.  The centrist prime minister, allied to President Emmanuel Macron, staked his reputation on insisting there’s no alternative to a path of fiscal rectitude. France’s €400 billion annual pensions bill is equal to 14 percent of national gross domestic product. The costs will increase by €50 billion by 2035, while a decade later the bill will be a cool half a trillion euros. Bayrou, a former justice and education minister who has tried three times to become president, has long been a proponent of putting the national books in order. But going after the oldies in such a blatant way is a new twist.  That’s probably because he knows he’s got little left to lose. As France’s third prime minister in a year, Bayrou has served a little under nine months and doesn’t look likely to make it past that. France’s Socialist party, which Bayrou would once have counted on as an ally, has turned its back on him over pensions reform — an issue that exploded after the government raised the retirement age from 62 to 64. Last week, Bayrou warned that young people will be the biggest victims of the ballooning debt.  The over-60s make up over one-quarter of France’s population ― a share that is expected to rise to a third by 2040. | Patrick Landmann/Getty Images “All this to help … boomers, as they say, who from this point of view consider that everything is just fine,” he said in a televised interview. He has since clarified that he never advocated “targeting boomers” ― technically those born between 1946 and 1964 when the postwar population exploded ― but the message is clear: The older generation needs to do some belt tightening. “There is a risk of cannibalization, whereby we finance the present and the past at the expense of the future, and we are doing this more and more,” said Maxime Sbaihi, a fellow and former director of Institute Montaigne, an economic think tank. “The French are not aware of the demographic situation in France, they think that France is a young country, that we can stop working at 60, there is a kind of collective imagination that is difficult to shake,” he added. This ignorance, he said, is leading France toward a brutal, painful adjustment of its social system. TO THE GUILLOTINE! France’s pensions bill accounts for one-quarter of all government spending; Italy is the only European country paying out a larger share proportionate to its economy. Pensions account for over half of France’s €839 billion increase in public debt between 2018 and 2023, former Treasury official Jean-Pascal Beaufret warned. “For us millennials, Bayrou’s speech about boomers … will be our Robespierre at the Convention of the 8th of Thermidor,” Ronan Planchon, a journalist for the conservative newspaper Le Figaro, wrote on X, a reference to how the French revolutionary leader was sent to the guillotine after denouncing his own compatriots. Bayrou has warned the biggest victims of the ballooning debt will be young people.  | Alain Jocard/AFP via Getty Images Pensions have long been a political taboo, with France nearly always seeing street protests whenever an overhaul is mooted. Fresh demonstrations are planned for Sept. 10.  But given the country’s aging population, politicians are reluctant to challenge a group that represents a big slice of their vote, and that holds the lion’s share of the country’s wealth and savings. Compared to other items on the budget, pensions are particularly hard to adjust, said Hippolyte d’Albis, an economist and professor at the ESSEC Business School. “It’s an expenditure that is binding on society because the parameters that determine it — most notably the annual indexation of basic pensions — are set by law and can only be changed by passing a new law,” he said.  In 2024 the national deficit stood at 6.1 percent of GDP — double the 3 percent allowed under the EU’s fiscal rules. Paris forecasts that the deficit will not fall below 3 percent until 2029.  Economy Minister Eric Lombard suggested things could get bad enough to require the International Monetary Fund (IMF) to bail the country out — treatment usually reserved for financial basket cases like Argentina. He backtracked a few hours later after a large wobble in the stock market.  François Bayrou wants to force through €43.8 billion worth of budget cuts to bring French spending under control. | Christophe Petit Tesson/EPA The markets are already well aware of France’s troubling fiscal trajectory; the country has already had its credit rating cut by the major credit ratings agencies. It’s now a stone’s throw away from seeing its borrowing costs surpass those of Italy, long a byword for reckless spending and unsustainable debt.   France’s pensions system is unbalanced, but in demographic terms the country is actually a lot better off than many of its peers, with the second-highest fertility rate in the EU, at 1.7 births per woman. Italy and Spain, for example, face an even more stark fiscal cliff as the population ages, with only 1.1 to 1.2 births per woman. “France is the developed country where the standard of living in retirement is the highest compared to the average standard of living of working people,” said Thierry Pech, director general of progressive think tank Terra Nova. He said that raising the working age, which France has already done, is in some ways the “most brutal method.” “It wouldn’t be unfair to involve the wealthiest retirees,” he said. “But it would require a bit of political courage and a lot of education.” 

Poverty in old age will be the norm for a large chunk of Europe’s population unless current retirement policies undergo deep reform, the EU’s workplace pensions regulator has warned. “One in five Europeans is already at risk of living in poverty at old age,” said Petra Hielkema, chief of the Frankfurt-based European Insurance and Occupational Pensions Authority. “[That’s] a ridiculously high percentage, frankly. And if you then look at women, they have a 30 percent larger risk for that,” she told POLITICO in an interview. And it’s getting worse: Europe’s population is aging rapidly, and within 40 years there will be only 1.5 workers for every pensioner. That’s half the current ratio. “Some countries are already there. And that’s unsustainable,” Hielkema said. “Europe has a pension problem and countries that do not have strong supplementary pension systems are really at risk.” For decades, the standard European model has been to rely on a government state pension system to look after citizens in old age. But as people live longer and birth rates fall, the cost of funding these systems is soaring. Add to that the other costs of an aging population, such as health and aged care, and the taxpayer bill becomes eyewatering. One answer is to create complementary private or workplace pension systems to ensure people have a personal pot of pension savings they can draw on in retirement. Scandinavian countries are the best equipped to face the incoming crisis because they have a range of different sources for pensioners: a pay-as-you-go pension system, occupational pension funds — which means that when you work, you also save for your retirement — and further investments in pension products. But many countries, especially in Eastern and Southern Europe, rely mainly on state pensions and have smaller pension checks compared to salaries. In many cases, citizens aren’t really aware of their situations because public authorities and employers don’t provide them with a full overview of their pension entitlements. Brussels can do little more than make suggestions because the competence is at the national level. Still, Hielkema, a Dutch national who has run the occupational pension authority since 2021, is convinced there is “momentum” for a huge change, which will give EIOPA a bigger role. Poverty in old age will be the norm for a large chunk of Europe’s population unless current retirement policies undergo deep reform. | Georgi Licovski/EPA “One, we see the problem is getting bigger, and so do individual governments. And two, let’s be honest, why [are] pensions on the agenda? Because we need more investments, and one way to generate more investments is to move savings from bank accounts into investment products,” she said. WE HAVE A PLAN In the next few months the European Commission will issue recommendations on savings accounts and pensions to address the EU’s demographic and financial challenges. By the end of the year it will propose that governments set up digital accounts for the savings and investments available for each citizen, systems to track pensions, dashboards to communicate pension benefits, and tax incentives to make retirement saving more attractive. It will also review EU rules for workplace pension funds and pension investment products. The key measure in the package is a system to automatically enroll people in occupational pension funds, similar to what is already in place in the United Kingdom, Poland and Italy. “Automatically, you will be included in the pension funds if you work. If you don’t want that, you have to consciously opt out.” Currently, she said, people could opt into a workplace pension, but inertia means few do. “The assumption is that the inertia will also work the other way around,” EIOPA’s chief said, meaning few people would opt out. Where it is in place, the mechanism works and leads to more people saving through their jobs for their retirement, she said.  The idea is to have “something that is also available for people who are self-employed or who are gig workers, to ensure that also they can save for later,” she added. Ultimately national governments must launch such reforms, and the topic of pensions is politically explosive. François Bayrou’s French government lost the support of the Socialists when workers and employers failed to find an agreement on pension reforms. This summer, Germany’s Chancellor Friedrich Merz suggested that young people save for their retirement, triggering a backlash from trade unions in defense of the state pension system. How much is at stake? In Germany workplace pensions amount to €267 billion, whereas in Sweden — a country with one-eighth the population of Germany but where almost everyone has a pension fund — workplace pension savings amount to €516 billion, or 92 percent of GDP.