EM Daily Brief

Photo : France Prime Minister François Bayrou. Source: JULIEN MUGUET FOR LE MONDE

France: Prime Minister proposes budget cuts to reduce debt

FRANCE
Prime Minister proposes budget cuts to reduce debt
On 15 July, France’s Prime Minister François Bayrou proposed significant budget cuts, including abolishing two national holidays, to reduce France’s rising debt, which he warned poses a "mortal danger.” He emphasized the urgency of addressing France's EUR 168.6 billion deficit, noting that debt is increasing by EUR 5,000 per second. Bayrou’s plan includes reducing civil service jobs, increasing taxes on the wealthiest, and cutting tax breaks for pensioners, while welfare benefits and tax brackets will not be adjusted for inflation. He also suggested scrapping Easter Monday and 08 May as public holidays. Bayrou faces political opposition, particularly from the far-right and left-wing parties, which are against the proposed cuts to welfare and national holidays. His challenge is to secure support for these measures in a fractured parliament without triggering another no-confidence vote. If successful, the plan aims to gradually reduce France’s deficit to below three per cent of GDP by 2029. (Marc Perelman, “French budget crisis: PM Bayrou floats abolishing two national holidays as part of spending cuts,” France24, 15 July 2025)

DENMARK
Government adopts new law to limit and protect citizens from misuse of AI
On 14 July, Denmark is set to become the first country to pass a law protecting citizens from unauthorised AI-generated fake videos, photos, or voices. The legislation aims to prevent the misuse of a person’s face or voice without their consent. However, videos created for parody, art, and humour will still be permitted, as long as they are explicitly labelled as fake. The bill is expected to pass with almost 90 per cent support. It would allow victims of such misuse to have the content removed and to seek compensation. Denmark stated that the law is also intended to protect democracy, as deepfakes can be used to deceive voters and manipulate elections. (Varun Keval, “Denmark Proposes New Law to Stop Deepfakes and Protect Digital Likeness,” Hans India, 14 July 2025)

FINLAND
Opinion in Bloomberg calls for civil preparedness along with military power to ensure national security
On 15 July, a Bloomberg opinion article stated that defence is more than just military power, with modern threats including cyberattacks, disinformation, and biological warfare. Finland had long emphasised civilian preparedness, particularly after WWII, and since 2017, it has expanded its focus to include non-military threats like food security and fake news. Other countries, such as Sweden and Australia, adopted similar models. Sweden updated its public crisis guidance, while Australia introduced national consultations on public understanding of security. Experts argued for a broader definition of national security, warning that states could be destabilised without arms, through attacks on infrastructure, undersea cables, and digital systems. Taiwan is facing 2.4 million daily cyberattacks, including civilian resilience in its military drills. The report stressed the need for collaboration between government, private sectors, and civil society on preparedness, and also the need to raise public awareness without creating panic, using volunteer networks as a foundation for national resilience. (Ruth Pollard “Why Everyone’s Turning to Finland on National Security,” Bloomberg, 15 July 2925)

SWITZERLAND
Adapt+ programme to be launched to curb climate crisis
On 13 July, Swissinfo reported on Katrin Schneeberger, the head of the Federal Office for the Environment (FOEN), who warned about the increasing frequency and intensity of natural hazards in Switzerland due to climate change, in an interview with SonntagsBlick. The growing population was also a factor that was making the country more vulnerable. Another major concern was the thawing of permafrost, which was destabilising the mountains and leading to landslides and rockfalls. Urban areas, such as cities and the central plateau, were also being affected. The concrete surfaces are unable to absorb heavy rainfall, which was responsible for half of the flooding, and extreme heat waves are posing a health concern, as cities are struggling to cool down at night. The FOEN had launched the Adapt+ programme to combat these issues. The programme included testing methods to cool road surfaces and planting climate-resilient trees. Schneeberger said that “demand was strong,” while also noting that the current funds were not sufficient to meet these needs. (Environment director warns of increasing climate-related risks in Switzerland,” Swissinfo, 13 July 2025)

REGIONAL

Patriot missiles can defence tactical missiles but effectiveness remains limited says Deutsche Welle
On 14 July, Deutsche Welle reported on the MIM-104 Patriot missiles. As per the report, it is a surface-to-air missile system developed by Raytheon, initially designed to intercept high-altitude aircraft but modified in the 1980s to counter tactical ballistic missiles. It consists of mobile batteries that include a command center, radar, and launchers, and has been deployed by numerous countries beyond the US, including Germany, Israel, and Saudi Arabia. In 2022, the system was valued at over USD one billion. The Patriot system can defend against tactical missiles, drones, cruise missiles, and aircraft, covering an area of up to 68 kilometres, with the ability to track 50 targets and engage five simultaneously. However, its effectiveness is limited against small, low-flying drones. While the US has committed to updating the system through 2048, the German government has opted not to send long-range Taurus missiles to Ukraine, despite previously considering it. The Patriot’s capabilities are distinguished by its shorter-range defence compared to the Taurus missile, which can reach distances of up to 500 kilometres. (Matthew Ward Agius &William Noah Glucroft, “What are Patriot missiles and how will they help Ukraine?”  Deutsche Welle, 14 July 2025)

INTERNATIONAL
Russia’s Foreign Minister discusses fostering the strategic partnership with China’s President
On 15 July, Chinese President Xi Jinping met with Russian Foreign Minister Sergei Lavrov in Beijing, where they discussed deepening the China-Russia comprehensive strategic partnership and supporting each other in multilateral forums. Xi emphasized the importance of implementing the agreements between the two leaders, strengthening cooperation in regional and international affairs, and promoting a more just international order. They also highlighted the Shanghai Cooperation Organization (SCO), which both countries co-founded, as a key platform for peace and stability in Eurasia. Lavrov conveyed Russian President Vladimir Putin's greetings and reaffirmed Russia’s commitment to enhancing bilateral ties, particularly in light of the 80th anniversary of the victory over Japan. The two leaders also discussed the upcoming SCO summit in Tianjin and further collaboration in global and regional peace efforts. (“Xi Jinping Meets with Russian Foreign Minister Sergei Lavrov,” Ministry of Foreign Affairs People’s Republic of China, 15 July 2025; “Press release on Foreign Minister Sergey Lavrov’s meeting with President of the People’s Republic of China Xi Jinping,” The Ministry of Foreign Affairs of the Russian Federation, 15 July 2025)

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