By Gideon Rachman
For centuries European navies roamed the world’s seas – to explore, to trade, to establish empires and to wage war. So it will be quite a moment when the Chinese navy appears in the Mediterranean next spring, on joint exercises with the Russians. This plan to hold naval exercises was announced in Beijing last week, after a Russian-Chinese meeting devoted to military co-operation between the two countries.
Another week, another sign of political upheaval in Spain.
Monday brought a fresh poll showing that Podemos, the upstart anti-establishment party, is now the most popular political movement in the country. The survey, published in the El Mundo daily, gave Podemos 28.3 per cent of the vote, two points ahead of the ruling Popular party and more than eight points ahead of the opposition Socialists. Not bad for a party founded just 10 months ago by a group of political scientists
It was not the first time that the new party has come first in an opinion poll. But the latest survey made clear that the Podemos surge is no statistical aberration. Fuelled by wide-spread disdain for Spain’s political class and a festering social crisis, the new party appears to be on course to shatter Spain’s established two-party system – and render any prediction as to who might govern the country after next year’s general election obsolete. Read more
The crew that was dead set against raising consumption tax in Japan will be feeling vindicated. The economy unexpectedly fell back into recession in the third quarter, contracting 0.4 per cent quarter on quarter, or 1.6 per cent on an annualised basis. That makes it highly unlikely that prime minister Shinzo Abe will push ahead with a second round of VAT hikes, from 8 per cent to 10 per cent, after the first increase from 5 per cent in April. At least for now.
Here are seven charts showing the worrying side of Abenomics, and some reasons to be hopeful. Read more
Mario Draghi, European Central Bank president, said earlier this month that central bankers across the eurozone would begin readying preparations for new measures to stave off economic stagnation, should growth and inflation continue to elude the region.
One of the reasons why the bloc’s officials are now teaming up is that there is little left in the European Central Bank’s armoury that does not involve buying government bonds. This is a hugely controversial idea in countries such as Germany, where it is seen as a dodge for high rolling peripheral economies.
Some of the region’s most respected economists are keen to help out. Read more
Moroccan supporters gesture next to a placard reading "Long life to a Morocco without Ebola". Morocco was stripped of hosting the Africa Cup of Nations, and thrown out of the tournament, after saying it wanted to postpone the tournament due to fears over the Ebola epidemic. Getty
It’s been a bad week for international football. Fifa is in disarray over bribery allegations, and now African football is grappling with controversy over its prestigious tournament, the African Cup of Nations. Read more
Saturday night at the protest camp © Amie Tsang
“If you have not shown up by midnight I will assume you are a no-show. Checkout is at noon. You are alone? For girls on their own, for safety, we recommend these tents here.” The receptionist gestures to a row of camouflaged tents nearby. “The only problem is it will be more noisy.” Read more
People wait in line at a government employment office in Madrid – Getty
A strong, broadly based economic recovery in the eurozone is nowhere in sight – as will become clear on Friday, when Eurostat, the EU agency, and several national statistical offices publish estimates for gross domestic product growth in the third quarter of this year. Read more
Mark Carney, governor, will unveil the Bank of England’s latest forecasts for the UK economy and give further guidance on the likely path of interest rate rises in London at 1030 GMT on Wednesday. Here are the key things to watch out for: Read more
For the past 15 years, there has been little good to say about Italy’s economic performance, and even less about the quality of Italian political life.
Yet one Italian institution emerges with its reputation unscathed – and even strengthened – from this long spell of incompetence, corruption and decline.
I am speaking of the presidency. Carlo Azeglio Ciampi, who served as head of state from 1999-2006, and Giorgio Napolitano, his successor and the current president, have exemplified everything that is dignified, decent and honourable about their country. Their behaviour in office has put the squabbling and self-serving political classes to shame – and it has preserved respect for Italy among its allies and partners abroad. Read more