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Le Pen vows radical spending cuts to ease French debt fears at Medef

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Marine Le Pen has pledged to implement sweeping cuts to public expenditure if she wins next year’s presidential election.

During the first presidential debate held yesterday, seven candidates clashed over how to handle France’s high debt levels and how to finance the pension system.

This laid bare sharp divisions on economic issues that have left investors unsettled.

The French government is struggling to reduce the country’s budget deficit, which stands at more than 5% of GDP and represents one of the highest shortfalls in the eurozone.

Le Pen, who is mounting her fourth presidential bid in the election scheduled for next spring and stands as the frontrunner, is attempting to win over corporations that have long been sceptical of her policies, according to the Financial Times, while seeking to shed the National Rally’s (RN) image as a free spender.

Speaking at a forum organised by Medef, France’s principal business lobby group, the French politician stated, “I am extremely concerned about the trajectory of our debt,” adding that the state must cut spending “radically”.

Le Pen said for the first time that she supported the concept of a balanced budget rule establishing a statutory equilibrium between revenue and expenditure, though she did not provide details.

Stating that the RN would present a €125 billion savings plan ahead of parliamentary debates on France’s 2027 budget, Le Pen said this plan would include reductions in payments to the EU alongside welfare cuts for immigrants.

This contrasted with a proposal made this week by Jean-Luc Melenchon, the presidential candidate of the left-wing LFI, who argued that the European Central Bank should cancel the French debt it holds and “throw it into the fire”.

Melenchon went further with this idea during the debate, stating that terminating all subsidies to corporations could also feature among other radical measures aimed at reducing the budget deficit.

The proposals put forward by Le Pen and Melenchon were criticised by rival presidential candidates such as Edouard Philippe and Gabriel Attal as “unworkable” or “dangerous”.

Medef members applauded when Socialist Party candidate Raphael Glucksmann condemned Le Pen’s fiscal plans and said halting all immigration would harm the economy.

Opinion polls, however, consistently project that Le Pen will advance to the second round of the two-round presidential election.

Recent surveys indicate she could even defeat centre-right candidate Philippe.

Polls conducted in recent days show that Melenchon also has the potential to reach the run-off against Le Pen.

Yet election day remains eight months away, and intense competition persists among the contenders.

Among corporate leaders, Le Pen is viewed as a less acceptable figure than RN President Jordan Bardella, who has held talks with companies and is perceived as more flexible on certain key RN policies, such as raising the retirement age.

According to a person familiar with the matter, Bardella’s adviser Francois Durvye, who worked to soften the RN’s stance on pensions and facilitate discussions with leading corporations, has departed Le Pen’s election campaign.

Insisting on her position regarding pension reform on Thursday, Le Pen said she wants to lower the retirement age to 60 for individuals who began working before the age of 20, while maintaining it at 62 for others.

During the debate, Attal remarked, “Some of you will be disappointed, but the smokescreen created by Bardella [on economic policy] has definitively dissipated.”

Macron’s drive to raise the retirement age to 64 was suspended last year during parliamentary budget debates.

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EU prepares Ukraine peace mission to Abu Dhabi led by Björn Seibert

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The European Union is preparing to take a direct role in the diplomatic negotiations surrounding the war in Ukraine.

According to a report by Euronews television, the European Commission and the European Council are establishing a joint delegation of high-ranking officials to attend an upcoming round of talks between the parties. Björn Seibert, the head of cabinet to European Commission President Ursula von der Leyen, will lead the delegation.

The German diplomat, described in the report as an influential bureaucrat, is expected to head the team attending the talks scheduled to take place in Abu Dhabi in early November.

“We are strongly committed not only to ending the war, but also to achieving a just and lasting peace. This is our goal, and this is precisely the position we defend in the current talks,” a European Commission representative said in a statement on the matter.

Brussels’s key figure behind the scenes

A European bureaucrat of German descent, Björn Seibert has long been recognized as von der Leyen’s closest aide.

Seibert first joined von der Leyen’s team in 2013 during her tenure as Germany’s defence minister, later moving with her to the European Commission.

According to reporting by Politico magazine, Seibert gradually developed into one of the most powerful figures behind the scenes of European politics.

The magazine noted that Seibert has been directly involved in clearing senior appointments and has played an influential role in managing relations with both the European Parliament and the US.

This setup has also sparked controversy within the institution. Critics claim that concentrating power in the hands of the cabinet chief and von der Leyen leads to excessive centralization in administration, whereas supporters argue the model ensures rapid, efficient decision-making.

If these multilateral contacts materialize to bring together delegates from Europe, Ukraine, the US, and Russia under one roof, they will mark the first talks held in this specific format during the peace process.

Diplomatic engagements so far have been conducted either bilaterally between Russia and the US or as trilateral meetings that included Ukraine.

However, the EU delegation’s participation at the negotiating table is not yet finalized, as the issue remains under consultation.

European capitals have actually spent months searching for a similar diplomatic channel. Politico reported in January that EU member states had discussed appointing a special envoy to lead talks with Moscow over Ukraine, an effort backed by French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.

The Telegraph newspaper reported in October that, alongside Meloni, Finnish President Alexander Stubb, Czech President Petr Pavel, Norwegian Prime Minister Jonas Gahr Støre, and Danish Prime Minister Mette Frederiksen were being mentioned for the European representative role.

The newspaper noted that officials were also weighing the option of creating a joint delegation of representatives instead of choosing a single figure.

Reservations from Moscow over European intentions

Moscow, for its part, views Europe’s position as potentially decisive in resolving the conflict. “It is not enough to talk only with Kyiv; it is necessary to talk with the whole of Europe, which fully backs Kyiv in its desire to prolong the conflict. Perhaps Europe’s stance is of key importance here,” Russian Presidential Aide Yuriy Ushakov said.

Kremlin spokesman Dmitriy Peskov also stated that Moscow would support the emergence of an EU negotiator. “Having a negotiator is good. If that negotiator genuinely seeks to contribute to a peaceful settlement, it would be much better,” Peskov said.

Conversely, Russian Foreign Minister Sergey Lavrov struck a cautious tone on 27 October regarding European countries’ interest in joining the talks. Lavrov stated that Europe wants a seat at the table without altering its outlook toward Moscow.

Arguing that Europe disregards Russia’s position on the root causes of the conflict, Lavrov emphasized that European nations do nothing beyond levelling accusations and demanding a halt to hostilities.

“This merely demonstrates the Europeans’ desire to join the negotiation process. However, the positions with which they would enter the process remain a major question mark,” the Russian minister said.

Despite these conflicting signals, Russian President Vladimir Putin previously noted that Moscow has not closed the door to dialogue with European nations.

As a preferred European negotiator, Putin previously named former German Chancellor Gerhard Schröder.

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EU and Canada to deepen defence ties from Arctic to Black Sea

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The EU and Canada will strengthen their partnership to address shared security challenges by deepening defence cooperation stretching “from the Arctic to the Black Sea”.

A draft joint statement prepared for a summit to be held in Montreal on 29-30 October addresses all of these matters comprehensively.

“Canada and the EU are strategic partners in taking more responsibility for our common security and defence,” reads the draft EU-Canada Joint Summit Statement obtained by Rapporteur.

The two sides will “accelerate the implementation” of the Security and Defence Partnership and broaden cooperation across international peace and crisis management, sanctions, defence industry, maritime and space security, hybrid threats, and resilience.

The summit follows a significant political push aimed at bolstering EU-Canada ties.

On 16 September, Canadian Prime Minister Mark Carney attended European Commission President Ursula von der Leyen’s State of the European Union address in Strasbourg.

In that speech, von der Leyen suggested making Canada the bloc’s first “associate member”.

The document welcomes Canada’s interest in reinforcing its participation in EU Common Security and Defence Policy (CSDP) missions and operations, as well as Ottawa’s ongoing commitment to European security, “notably on the Eastern Flank from the Arctic region to the Black Sea”.

In the Arctic, both sides plan to reinforce cooperation on “peace, security and resilience”.

The summit statement will also launch “a new, dedicated dialogue on the Arctic, foreign information manipulation and interference, climate security and transport”.

The draft also reaffirms EU and Canadian support for Ukraine’s sovereignty and territorial integrity, pledging continuous military and other assistance to Kyiv alongside increased pressure on Moscow.

According to Article 10, the partnership also turns toward the Middle East. There, the EU and Canada aim to work more closely “to support de-escalation, address humanitarian needs”, and contribute to conditions necessary for lasting peace in Palestine based on a two-state solution.

Defence industry cooperation is another priority. The draft highlights existing cooperation pursued through the EU’s Permanent Structured Cooperation (PESCO), Canada’s participation in capability coalitions, and its inclusion in the Security Action for Europe (SAFE) mechanism.

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Merz visits Asia to seek new markets for German defence firms

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On his third trip to Asia since taking office, Chancellor Friedrich Merz is seeking new markets, particularly for German defence industry companies.

Alongside drone manufacturer Quantum Systems and Airbus Defence & Space, at least two defence industry firms are among the business delegation accompanying the chancellor on his visits to Singapore, Japan, and South Korea starting on Monday.

Merz is generally attempting to broaden sales markets across the region, partly because German exports to China have suffered a sharp decline.

German industry is consequently seeking alternatives at present. While the federal government now intends to open the way for new arms exports, a military exercise in Japan involving around 100 medical personnel from the Bundeswehr is drawing to a close.

Part of the scenario involves an incident causing numerous casualties on the island of Okinawa.

This is a real threat should war break out over Taiwan, located just 600 kilometres away. That distance is not particularly far for US fighter jets stationed on Okinawa.

Germany is systematically expanding its military and defence cooperation with Japan.

Alternatives to exports to China

Chancellor Friedrich Merz’s trip to Singapore, Japan, and South Korea comes at a time when German companies are making intensive efforts to find alternatives to China for their business in Asia.

Wolfgang Niedermark, an executive board member of the Federation of German Industries (BDI) and Asia expert, observed, for example: “In recent years, we may perhaps have relied too much on China, which is naturally our most important industrial partner.”

To explain the search for alternatives, Niedermark cites “geopolitical” reasons, referring to the rivalry between the West and China, alongside “industrial competition” with China.

Chinese companies are now producing many items they previously imported from Germany for a long time, including high-tech products.

As a result, German exports to China, which still stood at around 107 billion euros in 2022, have dropped sharply since then.

In 2025, they recorded a further decline of approximately 9.7%, reaching a value of just over 81 billion euros.

German exporting companies are consequently searching for alternative markets at present, and Asia stands out as a key export destination.

Asian giants also want to reduce dependence on the US

During his first trip to Asia in office in January, Merz sought to strengthen economic ties with India, including expanding exports to that country.

Japan and South Korea are also promising options. While they are the second and third largest markets for German exporters in Asia, they have so far accounted for only a quarter of the value of Germany’s exports to China. This indicates further potential exists.

Japan and South Korea, like Germany, are also attempting to diversify their economic relationships.

Confronted with fierce attacks from the Trump administration, these countries are seeking to establish profitable ties with alternative partners.

On Thursday, Merz will open the biennial German Business Asia-Pacific Conference, which is being held in Seoul this year.

The event will be led by Economy Minister Katherina Reiche and Siemens Chief Executive Roland Busch.

Busch is travelling with a business delegation of about 30 people that previously accompanied Merz to Tokyo and will accompany him to Singapore this time as well.

Singapore is regarded as the commercial and financial centre of the entire rapidly growing Association of Southeast Asian Nations (ASEAN).

German arms industry sets its sights on Asia

At least two defence industry companies are included in the business delegation accompanying Merz: drone maker Quantum Systems and Airbus Defence & Space.

Quantum Systems supplies the German Armed Forces and the Armed Forces of Ukraine, among others, and is now planning broader growth extending into Asia.

Since the German government withdrew from the French-German FCAS (Future Combat Air System) project, which aims to build a sixth-generation fighter jet, Airbus Defence and Space has been seeking an alternative and is currently considering joining the British-Italian-Japanese GCAP (Global Combat Air Programme) project.

More detailed talks with British company BAE Systems are scheduled to take place this week.

London maintains an open stance towards Germany joining GCAP because it can barely finance this exceptionally expensive project.

However, London, like Japan, is pressing for swift project implementation; the fighter aircraft is envisioned to become operational by 2035.

The German defence industry is not known for implementing its projects quickly.

Airbus also insists on playing a key role in development and production. Shares in GCAP have largely been allocated.

Talks with Japanese project partner Mitsubishi Heavy Industries are expected to take place.

German-US-Japanese exercise on Okinawa

A ten-day military exercise organised by the Japanese armed forces will also conclude on Thursday.

Alongside troops from the US, the Philippines, and New Zealand, the German Armed Forces are taking part in the exercise with around 100 soldiers from their medical unit.

The main venue for the exercise is the Japanese island of Okinawa, situated on the first island chain off the Chinese coast and home to the largest US Air Force base in the Asia-Pacific region.

Okinawa lies approximately 600 kilometres from Taiwan. If conflict breaks out over the island, US troops would probably be expected to intervene from Okinawa. A Chinese attack on the military bases there is also probable.

Exercise Keen Sword, which began last Monday, includes providing initial medical treatment in an incident involving numerous injured personnel, among other elements.

According to the scenario, the Bundeswehr will transport medical supplies and blood products to Okinawa using an Airbus A400M aircraft and subsequently fly the wounded to a suburb of Tokyo.

German medical personnel will take over further treatment of the injured there.

Through this exercise, the Bundeswehr, which is currently preparing primarily for a potential war against Russia, is simultaneously preparing to participate in a large-scale war against the People’s Republic of China.

Relationship between German and Japanese militaries to deepen

Federal Defence Minister Boris Pistorius indirectly confirmed this during his visit to Tokyo in March.

At the time, he was quoted as saying that in addition to focusing on NATO’s eastern flank and “other conflicts, such as in the Middle East,” we must “not lose sight of other regions and the challenges in those regions.”

In this context, cooperation between the German and Japanese armed forces will now become “significantly more intensive.”

As the Defence Ministry indicated at the time, German warships and fighter aircraft were most recently in Japan in 2024 for a port visit and exercises, respectively.

In return, a task force from the Japan Maritime Self-Defense Force was in the Port of Hamburg in 2024.

In 2025, Japanese F-15 fighter jets, based on a US model, visited the German Air Force.

Furthermore, as early as 2024, Germany and Japan signed a “comprehensive logistics agreement.”

In the defence industry, the ministry noted that close cooperation already exists between Airbus Defence & Space and Kawasaki Heavy Industries.

Both companies have collaborated for decades on the construction of H145 multi-role helicopters, which are also used by Bundeswehr special forces.

Pistorius stated at the time that “much more potential” still exists for this cooperation.

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