Diplomacy
Cost of living crisis remains top concern for voters in major western economies
The cost of living crisis that upended global politics last year continues to be the primary issue for populations living in the world’s largest economies.
A new international POLITICO poll shows that voter frustration over persistent financial hardships continues to have a very strong impact today.
The POLITICO poll conducted in five major economies reveals that pressure on the cost of living is reflecting on politics:
In the US, nearly two-thirds of voters (65 %) say the country’s cost of living got worse last year.
In the United Kingdom, where the Conservatives were ousted in 2024 after 14 years in power, 77 % of voters say the cost of living has worsened.
In France, as President Emmanuel Macron grapples with historically low approval ratings, nearly half of adults (45 %) say their country has fallen behind similar economies.
In Germany, following long internal strife over the economy, former Chancellor Olaf Scholz’s ruling coalition collapsed last year. There, 78 % of respondents say the cost of living worsened last year.
In Canada, the post-pandemic economic crisis increased public backlash against the government of then-Prime Minister Justin Trudeau, who resigned earlier this year. According to the POLITICO poll, 60 % of adults in the country say the cost of living is at the worst level they can remember.
The results of the first joint international poll by POLITICO and Public First reveal the difficult struggle many leaders face as they try to contain intertwined economic and political turmoil.
Five years after the coronavirus pandemic upended the global economy, and as the world grapples with competing conflicts and artificial intelligence rapidly becomes a defining force, a significant portion of respondents in the US, Canada, and Europe’s largest economies—Germany, the United Kingdom, and France—view the cost of living as one of the biggest problems currently facing the world.
While leaders claim they are trying to solve economic problems, many people believe their leaders could provide more help regarding living costs but choose not to do so.
Among those surveyed, 71 % in Germany, 70 % in the United Kingdom, 69 % in France and the US, and 64 % in Canada argue that political leaders choose not to do more even though they could.
There is a widespread perception in all five countries that their economies are deteriorating. In France, 82 % of adults, 78 % of respondents in Germany, 77 % of adults in the United Kingdom, and 79 % in Canada say the cost of living in the country has worsened compared to last year.
Most people in the five countries go even further, stating that the cost of living crisis has never been this bad.
As another indicator of the problems leaders face, poll results reveal that many view the livelihood issue as a systemic problem rather than a personal one.
For example, in most of the countries, the majority state that the livelihood problem stems from the high cost of goods.
In the United Kingdom, approximately two-thirds of adults say the country’s economy is worsening; this rate is higher than the 46 % who said their own financial situations worsened last year.
The same trend applies to France, Canada, and Germany, indicating that the public carries widespread concerns about the economy and purchasing power beyond their individual lives.
Voters’ economic concerns are also roiling politics. In 2024, Trump campaigned on economic anxieties without having to manage the economy himself. In recent months, this dynamic has shifted, and voters have started to become dissatisfied with his economic management, highlighting the difficulty of convincing voters of economic progress amidst stubborn cost of living concerns.
This feeling of being left behind was particularly pronounced among Europeans participating in the POLITICO poll. Nearly half of adults in Germany, France, and the United Kingdom said their countries had “generally fallen behind other similar economies.”
More than half of the residents in these countries, excluding the US, believe the livelihood problem will get either “much worse” or “a little worse” in the next five years. In the US, the combined rate for these two options is 44 %. The total rate of those who believe it will get “a little” or “much better” is 31 %.
Diplomacy
Vance leads indirect push for US-Iran ceasefire and nuclear talks
US Vice-President JD Vance has been personally involved over the past two weeks in indirect talks with Iran aimed at securing a fresh ceasefire and restarting nuclear negotiations.
According to Axios, Vance’s intense engagement indicates that he has taken it upon himself to extract the US from the conflict, which he views as responsible for the Republican Party’s shocking losses in this week’s elections.
This elevates the latest round of indirect talks to the highest echelons of the administration.
US officials and regional sources state that Trump is currently willing to let diplomatic efforts run their course to see whether any agreement is achievable.
Asked by reporters on Friday what his message was to Iran, Trump said, “We are talking to them.”
According to sources with direct knowledge of the matter, Vance speaks almost daily with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Pakistan’s Chief of Army Staff Field Marshal Asim Munir, and other mediators regarding the negotiations with Iran.
White House envoy Steve Witkoff and Jared Kushner, President Trump’s adviser and son-in-law, are also involved in the process.
Sources say Vance and the Qatari and Pakistani mediators have been discussing the possibility of holding a working-level technical meeting between the US and Iran in the coming days, though this has not yet materialized.
Before the war began in late February, Vance was among the most sceptical voices in Trump’s inner circle on the issue, advocating instead for a diplomatic solution.
In April, he led the US negotiating delegation at the Iran summit held in Islamabad and was personally involved in the talks that yielded a memorandum of understanding (MOU) signed between the US and Iran in June.
Vance subsequently headed the US delegation during a series of direct talks with Iran in Switzerland.
Two weeks ago, Vance sent a letter to Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, proposing that direct negotiations resume.
Rezaei is one of the closest advisers to Iran’s Supreme Leader, Mojtaba Khamenei.
Iranian officials noted that Vance’s letter generated positive momentum toward restarting talks.
On Wednesday, Vance said the war was the primary reason for the Republicans’ repudiation at the polls.
Sources involved in mediation efforts report that while progress is being made, the process is moving very slowly.
On Friday evening, the prime minister of Qatar said, “Over the past few weeks, we worked with our colleagues in the US administration who have a sincere intention to contain the situation and de-escalate. Thanks to them and the voices of reason in Tehran, we prevented the situation from spinning out of control.”
The prime minister added that discussions with the Trump administration continued following the midterm elections, though they were not as active as in previous days “because there are other matters.”
Nevertheless, he noted that the US intention to find a diplomatic resolution “remains ongoing” and emphasized that an agreement is possible.
On Friday morning, Trump and the Emir of Qatar discussed Qatari efforts to bridge differences between the US and Iran as part of an accord.
According to a statement from his office, Sheikh Tamim emphasized the necessity of “pursuing dialogue and diplomatic channels to resolve differences, prevent the region from facing further escalation, and ensure freedom of maritime navigation as well as the security of energy supplies.”
Separately, Trump confirmed on Friday that the US military conducted a strike on an anti-aircraft missile launcher on Qeshm Island in the Strait of Hormuz after it fired a missile at a US fighter jet.
Diplomacy
Ukraine faces demographic collapse as fertility rates slide
British magazine The Economist reported that mobilization, conflict casualties, and pervasive uncertainty have left Ukraine confronting the threat of demographic collapse.
According to data cited by the magazine, Ukraine’s fertility rate has declined from 1.2 children per woman in 2020 to between 0.8 and 0.9.
This rate marks a lower level than that of any major nation except South Korea.
In the first half of 2026, the number of deaths in Ukraine surpassed the number of newborn babies threefold.
The report noted that ever since independence was gained in 1991, the number of births in the country has lagged behind the number of deaths every year.
The Economist emphasized that the demographic collapse driven by the ongoing fighting constitutes an “existential threat.”
The magazine identified mass refugee migration as the principal driver of the population loss.
More than 5 million Ukrainians reside abroad, predominantly in Europe.
The proportion of those wishing to return among those who left the country is also steadily shrinking.
According to data from the Centre for Economic Strategy (CES), the share of those seeking to return dropped from 74% in 2022 to 43%.
The fact that the majority of refugees consist of Ukrainian children and women under the age of 44 further aggravates the demographic picture.
The Kyiv government decided to exempt men under the age of 25 from mobilization to alleviate the demographic decline.
The magazine reported, however, that many young people have fled the country, while those who remain do not plan to start families.
Projections cited in the report indicate that even if hostilities cease in the coming years, Ukraine can, at best, expect merely a deceleration of depopulation.
Olga Duhnich, an expert at the Ukraine-based think tank Frontier Institute, stated that the generation born in the 1990s and 2000s is the least populous in Ukraine’s modern history, meaning the country cannot expect a post-conflict baby boom.
The United Nations (UN) projects that Ukraine’s population will decline by 0.7% to 0.9% each year over the next two decades.
Under this projection, Ukraine’s population will fall to approximately 25 million by 2040.
If hostilities drag on, people are expected to abandon plans to have children, deepening the crisis even further.
Beyond exempting men under 25 from mobilization, the Kyiv government is rolling out various support packages to boost birth rates.
Under legislation enacted in the country, parents who have children receive a direct payment of 50,000 hryvnias (around $1,100).
Parents are also paid 7,000 hryvnias each month during the first year.
Other state programmes subsidize childcare costs, while Ukrainian soldiers are granted free freezing of egg and sperm cells.
Ukrainian Minister of Social Policy Denis Ulyutin said in May to the Livyi Bereh media outlet that roughly 22 to 25 million people lived in government-controlled territories.
Ulyutin characterized the prevailing picture by saying: “This is a catastrophe.”
Ella Libanova, Director of the Institute for Demography and Quality of Life Research, estimated the population at 29 million during the same period.
Libanova attributed the steep fall from a population of 30 million in 2025 to high death rates and the demographic crisis.
In a statement in October, Libanova announced that Ukraine’s population had slipped to 28.5 million.
Institute Director Libanova said: “The population is already at 28.5 million; we lost half a million people. We lost them, but thankfully this was still caused by migration rather than casualties.”
Diplomacy
Armenian opposition urged to form joint front against constitution
Narek Karapetyan, a lawmaker and head of the Strong Armenia faction in the Armenian parliament, has urged opposition parties to unite around four core principles set out in a joint declaration.
The key points of the declaration include resisting territorial concessions and blocking the adoption of a new constitution, which the opposition has termed the “Aliyev constitution”.
According to a report by Aysor.am, Narek Karapetyan stated that the opposition meeting was originally planned to be led by his uncle, businessman and Strong Armenia movement leader Samvel Karapetyan.
“We initiated the meeting, but the authorities took preemptive steps to prevent Samvel Karapetyan from launching the national unification process,” Narek Karapetyan said.
Noting that, despite these events, opposition representatives convened and signed a joint declaration based on four agreed articles, Narek Karapetyan invited other opposition forces and members of the public to join the alliance.
“We will not allow them to implement the Aliyev constitution in Armenia. We must unite,” Karapetyan said.
Ahead of these developments, Armenian National Security Service personnel detained Strong Armenia Party leader Samvel Karapetyan following a search of his home.
The party’s press secretary, Agavni Sukiasyan, announced that on the morning of the same day, the Investigative Committee of Armenia searched the homes of both Samvel Karapetyan and Narek Karapetyan.
In a report citing the Investigative Committee, Armenpress stated that Samvel Karapetyan was detained as part of a case involving allegations of causing large-scale financial damage to the Electric Networks of Armenia (ENA) company, embezzling entrusted property, and money laundering.
According to committee figures, the total damage inflicted on the company exceeds $179 million.
Narek Karapetyan’s home was also searched at the end of July as part of a criminal case.
On 22 July, Armenia’s Central Electoral Commission approved the Prosecutor General’s request to strip Narek Karapetyan of his parliamentary immunity, and Karapetyan was charged with large-scale money laundering.
According to information reported by Sputnik Armenia, the investigation is linked to charges brought against Strong Armenia supporter Aleksan Aleksanyan.
Investigative authorities allege that Aleksanyan received approximately $4.4 million and €230,000 from the Karapetyan-owned Tashir Foundation under the guise of gifts and loans.
Several criminal cases had previously been opened against Samvel Karapetyan.
In 2025, Karapetyan was charged with publicly calling for the violent seizure of power after backing the Armenian Apostolic Church, which had been criticized by Armenian Prime Minister Nikol Pashinyan.
In January, legal proceedings were also launched against Karapetyan on charges of large-scale tax evasion and money laundering.
Separately, in early July 2025, the Armenian parliament approved a bill enabling the nationalization of the Electric Networks of Armenia company.
In March, Armenia’s Constitutional Court ruled that the nationalization process in question complied with the law.
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