标签： Europe

BERLIN — One year into its tenure, the cross-center coalition government led by German Chancellor Friedrich Merz has announced an urgent push to enact sweeping reform of Germany’s long-strained public pension system, anchored by a gradual increase of the retirement age tied directly to rising life expectancy. Merz has framed the reform as non-negotiable, stating bluntly that “failure is not an option” for the unpopular administration, which swept into office promising to revitalize Europe’s largest economy.

The coalition, pairing center-right and center-left parties, has faced plummeting public approval over the past 12 months. Voters have widely criticized the government for internal infighting and a perceived lack of tangible progress on the structural challenges that have held Germany’s economic growth back for years. After two consecutive years of contraction, Germany logged only modest growth in 2024, and official projections put this year’s GDP growth at a meager 0.5% — a forecast downgraded due to economic spillover from the ongoing war in Iran.

Long-term headwinds have compounded these short-term growth headwinds: Germany’s 83.5 million population is steadily aging, creating an unsustainable imbalance where a shrinking pool of working contributors must fund benefits for a growing cohort of retirees. Beyond demographic pressure, the country also contends with rising competition from Chinese manufacturing, persistently elevated energy prices stemming from Russia’s full-scale invasion of Ukraine, and ongoing trade uncertainty created by U.S. President Donald Trump’s tariffs and trade threats. Deep structural flaws, including high domestic production costs, stagnant private investment, and ballooning costs for both health and public pension systems, have further suppressed economic momentum.

On Tuesday, a government-appointed independent commission of policy experts and sitting politicians delivered a final report containing 33 targeted recommendations designed to stabilize the pension system for decades to come. The core goals of the proposals are twofold: protect current pension benefit levels from cuts, and avoid the need for drastic long-term increases to the payroll contribution that workers pay into the system, which currently stands at 18.6% of gross wages.

The commission’s most high-profile proposal mirrors a model already used in Sweden, adding regulated market investments to individual pension accounts as a way to generate additional revenue and ease systemic financial pressure. The panel also recommends extending the gradual retirement age increase Germany implemented two decades ago, when the country raised the standard retirement age from 65 to 67. Under the new plan, starting in 2031, the retirement age would be adjusted automatically to match changes in life expectancy. According to German federal statistics office data, national life expectancy currently sits at 78.5 years for men and 83.2 years for women.

Commission co-chair Constanze Janda emphasized that the adjustment would be mild, projecting that the retirement age would rise by roughly six months every decade if current life expectancy growth trends continue. Additional proposed changes include scrapping the mid-2010s policy that allowed workers with 45 years of contribution history to retire at 63 without any reduction in pension benefits, replacing that rule with a new minimum retirement age of 64. The panel also recommended raising the age threshold for workers to access reduced working hours ahead of full retirement from 55 to 58.

Chancellor Merz confirmed Tuesday that his coalition plans to move quickly to implement the entire package of commission proposals, a commitment echoed by Labor Minister Bärbel Bas, co-leader of the center-left Social Democrats, the coalition’s junior partner. Despite the unified government pledge, the reform package faces a steep legislative path: the governing coalition holds only a narrow minority in parliament, and the proposals have already drawn sharp pushback from powerful German labor unions. Reaffirming his administration’s commitment, Merz repeated that inaction is not a viable solution to the country’s long-term demographic and fiscal challenges.

EDINBURGH, Scotland — In a landmark sentencing that has sent shockwaves through Scottish politics, Peter Murrell, the 61-year-old former chief executive of the Scottish National Party (SNP) and estranged husband of ex-Scottish First Minister Nicola Sturgeon, has been handed a five-year, three-month prison term for siphoning more than £410,000 ($540,000) from the pro-independence party to bankroll an extravagant personal lifestyle. The sentence was handed down on Tuesday at Edinburgh’s High Court, with credit already applied to account for time Murrell has already served behind bars.

Judge James Young delivered a scathing rebuke of Murrell’s actions, framing the crime as a deliberate, systematic breach of public trust. “All told, this was a calculated crime of dishonesty,” Young told the court. The judge emphasized that the severity of the sentence was intentionally crafted to serve as a warning to senior leaders across all large organizations who may consider misusing their positional authority for personal gain. “One factor in the sentence which I imposed today will be to act as a deterrent to any senior officials in other large organizations who might be tempted to abuse their position in the way that you did,” he added.

In a rare assessment, Judge Young noted that he could find no mitigating circumstances in Murrell’s personal or professional background to justify a reduced sentence. He acknowledged, however, that the relentless public scrutiny surrounding Murrell’s conviction will almost certainly bar him from any meaningful future employment, even after his release. “In truth, it is very difficult to get a clear picture for what drove your actions,” Young said, adding that many of the high-value goods Murrell purchased with stolen funds were never even used.

Court documents and public reporting have laid bare the full scope of Murrell’s misuse of party funds. Beyond the major purchases that first drew attention — a high-end motorhome and a Jaguar electric SUV — Murrell spent stolen money on a sprawling array of personal items ranging from luxury goods to mundane household objects. The list includes premium Bremont watches, multiple high-end coffee makers, a robot lawnmower, Nintendo video games, an egg poacher, two premium toilet seats, and a DVD box set of the Danish political drama *Borgen* — a series Sturgeon once publicly stated she enjoyed. He also used party funds to buy a pendant that Sturgeon was frequently photographed wearing in public.

Murrell’s defense attorney, John Scullion, told the court that his client has been completely cut off from his former political circles since his crimes came to light, and has already endured months of near-total social isolation. Scullion confirmed that Murrell accepts full responsibility for his actions and does not dispute the severity of his offenses.

The conviction and sentencing wrap up a turbulent chapter for the SNP, Scotland’s long-dominant pro-independence party, which has been reeling from the scandal since it first emerged. Sturgeon, who led Scotland’s devolved government for over eight years before stepping down as SNP leader in February 2023, has repeatedly denied any knowledge of Murrell’s embezzlement scheme and has publicly distanced herself from his crimes. The investigation was launched less than two months after Sturgeon’s resignation, when police executed a search warrant at Murrell’s home on April 5, 2023.

Since that initial search, the case has dominated front-page headlines across Scotland and the entire United Kingdom, sparking intense debate over the political future of the SNP and the ethics of political leadership. The unusual breadth of items purchased with stolen funds, ranging from luxury assets to trivial household goods, has captured widespread public attention, keeping the scandal at the top of the national political agenda for nearly a year.

LONDON – Just two years after securing a landslide general election victory, UK Prime Minister Keir Starmer’s announcement of his imminent departure from Downing Street has cleared a path for Andy Burnham, the popular former Greater Manchester mayor, to step into the nation’s top job. Burnham, who only won a parliamentary seat in a recent special election staged specifically to position him for a leadership challenge, began meeting with Labour Party colleagues on Tuesday to map out his transition, as political insiders widely expect him to run unopposed for the party leadership.

Starmer’s exit caps a turbulent tenure marked by sinking approval ratings, unmet policy promises, and high-profile missteps that eroded his support among both party members and the British public. He confirmed Monday he will step down within weeks, becoming the sixth UK prime minister to resign from the post in just 10 years – a milestone that arrives as the country marks a decade since the Brexit referendum, a decision that continues to roil Britain’s economic and political landscape.

When Starmer led Labour to a sweeping parliamentary majority in 2024, expectations were high for a reset after years of Conservative rule. But his premiership quickly stumbled: he failed to deliver on pledges for robust economic growth, never managed to repair Britain’s strained public services, and made little progress easing the persistent national cost-of-living crisis. Repeated judgment calls damaged his standing most, most notably his decision to appoint Peter Mandelson – a figure long tied to Jeffrey Epstein with a history of scandal – as UK ambassador to the United States. By the time of his resignation, Labour had slipped behind Nigel Farage’s right-wing, anti-immigration Reform UK in national opinion polls, while liberal voters were defecting in growing numbers to the Green Party.

For Burnham, the road to the premiership opened rapidly last week, when he won the parliamentary special election he had called to put himself in position to challenge Starmer. His path to the leadership cleared even further on Monday, when Wes Streeting, the former Health Secretary once widely seen as Burnham’s biggest rival for the top job, publicly endorsed his candidacy.

Under the UK’s parliamentary system, the ruling party can replace its leader – and automatically the prime minister – without triggering a full national general election, which is not required to be held until 2029. The official nomination window for the Labour leadership will open on July 9 and close seven days later. If no other candidate secures enough backing to enter the race, Burnham could be sworn in as prime minister as early as July 17. If a contest is held, the new leader will be confirmed by the time Parliament returns from its summer recess on September 1.

To qualify for the leadership race, potential candidates need the backing of at least 81 Labour MPs, one-fifth of the party’s parliamentary delegation. A handful of possible challengers have been floated: former Armed Forces Minister Al Carns, who resigned earlier this month to protest what he called inadequate UK defense spending, has suggested he may enter the contest but has not yet finalized a decision. Senior Cabinet minister Darren Jones, a close ally of Starmer, has also been named as a potential candidate, but he has not yet commented on the speculation.

Many within the Labour Party argue that a drawn-out leadership contest would only highlight deep internal divisions within the party and prolong a period of damaging political uncertainty for the country. “I think the transition should be swift and orderly,” Cabinet Office Minister Nick Thomas-Symonds told the BBC, echoing the view of many pro-Burnham party figures.

Supporters of Burnham point to his successful 7-year tenure as Greater Manchester mayor, where he oversaw a sweeping urban regeneration program in the city that birthed the Industrial Revolution. He has pledged to bring his popular, locally focused approach – which he has dubbed “Manchesterism” – to national governance. Many Labour members believe Burnham’s natural charisma and strong people skills will let him connect with voters far more effectively than Starmer, who was widely seen as a stolid, managerial leader.

Still, Burnham faces major unanswered questions: his policy agenda for key national areas remains largely untested and undisclosed to the public. Critics and some rebel Labour MPs argue that a public leadership contest is necessary to force Burnham to defend his platform and undergo open scrutiny from voters and opponents. Burnham has confirmed he will deliver a keynote speech next week that will lay out his core economic plans for the country.

In a move that has sent ripples through global diplomatic circles, United States Vice-President JD Vance made an unexpected and under-the-radar trip to a high-end Swiss alpine resort to hold direct talks with Iranian representatives, a development that has sparked widespread curiosity and analysis from international observers. BBC senior correspondent Jessica Parker has broken down the critical context and key takeaways surrounding this unorthodox diplomatic encounter, shedding light on what many see as a significant shift in how the US is engaging with Iran behind closed doors.

First, it is important to contextualize the long-strained diplomatic relationship between Washington and Tehran. For decades, formal direct negotiations between the two nations have been rare, with most talks mediated by third-party European or global powers in established diplomatic settings. The choice of a remote, luxury Swiss resort – a location long favored for secret, off-the-record diplomatic negotiations due to Switzerland’s long-standing policy of neutrality and strict privacy protections – was no accident. The secluded setting allowed both sides to speak freely without the immediate pressure of global media scrutiny or domestic political backlash that often derails early diplomatic efforts.

Parker notes that while the Biden administration has maintained limited, structured talks with Iran over its nuclear program in recent years, this meeting involving the sitting US vice-president marks a notable escalation in direct engagement. While official statements from both sides have remained scarce, early reports indicate that discussions covered a range of pressing topics, including ongoing nuclear enrichment activities, regional security tensions in the Middle East, and the potential for limited prisoner exchanges that have long been a sticking point in bilateral relations.

Diplomatic analysts suggest the off-the-record nature of the meeting indicates that both sides are testing the waters for more formal negotiations down the line, rather than pushing for immediate, sweeping agreements. The choice of venue also reinforces Switzerland’s historic role as a neutral intermediary between hostile nations, a function it has fulfilled for decades during periods of global geopolitical tension. As details continue to emerge, the international community is closely watching to see whether this informal encounter will open the door to a broader thaw in US-Iran relations, or remain a one-off exploratory meeting with no long-term policy impact.

Ten years to the day after the United Kingdom’s fateful 52%-48% vote to leave the European Union, the seismic ripple effects of that decision continue to reshape British politics, bringing the country its seventh prime minister since the 2016 referendum and leaving a legacy of division, economic stagnation and eroded public trust.

On June 23, 2016, after 47 years of EU membership, Conservative Prime Minister David Cameron gambled on a public referendum to settle internal party tensions over Europe, campaigning to remain in the bloc. When results favored exit, Cameron resigned within 24 hours, opening a decade of political chaos that no successive leader has managed to resolve. The latest casualty is Labour Prime Minister Keir Starmer, who announced his resignation Monday after two years in office, pointing to a sluggish economy, dysfunctional governing institutions and a deeply divided, disillusioned electorate — problems widely traced at least in part to Brexit’s ongoing fallout.

The 2016 Leave campaign capitalized on broad public discontent with the status quo, selling Brexit with the emotional rallying cry of “take back control” over British laws, borders and economic policy. Leading Leave figure Boris Johnson, who would later become prime minister, framed the exit as a once-in-a-generation opportunity to embrace a brighter, independent future, telling supporters just weeks before the vote: “We can see the sunlit meadows beyond. I believe we would be mad not to take this once-in-a-lifetime chance to walk through that door.”

Historians trace the Leave victory to a tangled mix of grievances: opposition to perceived unrestricted immigration, anger at Brussels-imposed regulations, and a powerful strain of nostalgia for an imagined, glorified British past. Margaret MacMillan, emeritus history professor at the University of Toronto, noted that Leave campaigners never clearly articulated what Brexit would actually deliver, leaning instead on vague nationalist sentiment. “It was against what people saw as unrestricted immigration. It was against what they saw as EU regulations. And then there was this mix of nostalgia — ‘We fought alone in the Second World War.’ Which was of course not true,” MacMillan explained.

That lack of clarity set the stage for years of unmet promises and political turmoil. Bold Leave pledges of tighter immigration controls, lucrative independent trade deals, increased funding for public services and an end to burdensome European regulation quickly collided with hard reality. The U.K. did not formally complete its exit until January 31, 2020, following years of acrimonious divorce negotiations with the EU, and an 11-month transition period before the final split was cemented.

Cameron’s successor, Theresa May, stepped down in 2019 after failing to secure exit terms that could win approval from a deeply divided Parliament. Johnson took over, promising to “get Brexit done” and ultimately negotiated a slim trade deal that left U.K.-EU relations strained and frozen for years. He was forced out of office by the Conservative Party in mid-2022 amid overlapping financial and ethical scandals. His replacement Liz Truss resigned after just 49 days in office following a disastrous economic agenda that crashed global markets. Next came Rishi Sunak, who eased tensions with Brussels but declined to make major structural changes to the Brexit framework. Starmer, who won power after Sunak, promised a “reset” of Brexit policy but also ruled out returning to the EU’s tariff-free, frictionless single market. Now, as Starmer prepares to hand over power, Brexit remains unresolved, lingering as un finished business for the country.

Far from settling long-running intra-party tensions over Europe, as Cameron hoped it would, the referendum shattered Britain’s traditional political ecosystem. “The people who obsessed about it still obsess about it. Britain’s problems have continued,” historian Anthony Seldon told Times Radio. Within the Conservative Party, hardline Brexiteers pushed out moderate lawmakers who favored a softer exit and closer EU ties. Even the traditionally pro-EU Labour Party has been split, with grassroots members pushing for closer alignment or even full rejoin, while senior leaders like Starmer have refused to reopen debate over the 2016 decision to avoid reigniting old conflicts.

A decade on, millions of voters have abandoned Britain’s two major mainstream parties for smaller, more extreme alternatives. The biggest political beneficiary has been Nigel Farage, the long-time Brexit campaigner who now leads the hard-right Reform UK. After campaigning for exit, Farage shifted to claiming Brexit had been betrayed by mainstream politicians, reorienting his anti-immigration message from EU free movement to targeting asylum seekers crossing the English Channel in small boats. Today, Reform UK consistently leads national opinion polls.

Economically, Britain has seen a decade of sluggish growth, with new trade barriers between the U.K. and its closest European neighbor hitting business activity. While Brexit is not the sole cause of slow growth — the COVID-19 pandemic, the Russia-Ukraine war and ongoing Middle East conflicts have all contributed — experts agree Brexit has amplified existing economic pressures. Compounding this, successive leaders have avoided being honest with the public about the trade-offs required by Brexit, leaving voters deeply disappointed.

“ We just haven’t had politicians who’ve been upfront with the public about the fact that when they get into power, they won’t be able to have no increases in taxes, no increases in debt, and better public services all in the same breath,” said Hannah White, director of the independent Institute for Government think tank. “And so people are disappointed.”

Ironically, Brexit also failed to resolve the immigration debate it centered. Net migration to the U.K. hit a record high of more than 900,000 in 2023 before falling to 71,000 last year, and public debate over immigration has only grown more polarised. That polarisation has fueled rising public cynicism, collapsed trust in political institutions, and even eroded long-held British norms against political violence. Agitators have repeatedly incited anti-immigration street violence after crimes committed by — or falsely rumoured to be committed by — immigrants.

Chris Grey, an academic who has extensively studied Brexit’s fallout, noted that a long-standing line between peaceful political debate and street violence has eroded, a shift that traces its origins to the 2016 referendum. “In the past, Britain had a firm barrier between the conventional dominant politics of talk and argument, and what was seen as beyond the pale: violence on the streets,” Grey said. “I think that boundary is being eroded. And I think that did to some large extent begin with Brexit.”

Today, polling shows growing “Bregret” among British voters, with a recent Ipsos survey finding 52% of respondents now support rejoining the EU, compared to just 33% who oppose it. Hundreds of pro-rejoin activists marched through London Saturday, waving EU blue-and-yellow flags, though turnout was far smaller than the mass protests seen at the height of Brexit negotiations. Most voters now say they simply want to move on from the debate.

Even so, Brexit remains a political minefield that most leaders are afraid to address. And if Britain wanted to reverse course and rejoin the bloc, it would face a long, difficult negotiation with a deeply wary EU. Until British politicians are willing to confront Brexit’s full legacy, Grey said the country will remain stuck in a cycle of persistent low-grade crisis. He compared the U.K. to a person living with a chronic, energy-sapping illness that they refuse to get treated.

“A chronic thing, in this case perhaps not incurable,” Grey said. “But it’s just that they don’t fancy going to the doctor because they know it’s not going to be very nice.”