Russia Proposes VAT Hike to Fund Ukraine War

September 25, 2025 An Ruwaito ta hanyar AI

Russia's finance ministry has proposed increasing the value-added tax from 20% to 25% starting next year, aiming to generate additional revenue to sustain military operations in Ukraine. The move comes amid escalating costs of the ongoing conflict, now in its fourth year, and reflects the Kremlin's efforts to bolster state finances without directly taxing citizens more heavily. If approved, this tax adjustment could raise billions in revenue but may exacerbate inflation and economic strain on Russian households.

Senate Rejects Funding Bills, Heightening Shutdown Risk

September 22, 2025 An Ruwaito ta hanyar AI

The U.S. Senate on September 20, 2025, rejected both a Republican-proposed stopgap funding bill and a Democratic alternative, escalating the chances of a partial government shutdown starting October 1. The House-passed measure aimed to extend funding through November 21, while the competing proposal sought a shorter extension to October 31 with additional provisions. With lawmakers departing for a break and no resolution in sight, partisan divisions over spending and policy riders continue to stall progress ahead of the September 30 fiscal deadline.

Spain's public debt falls to 103.4% of GDP

Spain's public debt has dropped nearly two percentage points from last year, reaching 103.4% of GDP in August. This decline reflects progress in fiscal consolidation and the country's economic growth.

Italy Lowers Economic Growth Forecasts for 2025 and 2026

Italy's economy ministry has revised its growth projections downward, estimating a modest 0.5% expansion in 2025 and 0.7% in 2026 amid persistent challenges like high debt and sluggish productivity. The update, released on September 23, 2025, reflects a more cautious outlook influenced by global economic headwinds and domestic fiscal constraints. This adjustment could impact Italy's budget planning and its standing within the European Union.

Sweden Announces Expansive Budget with Tax Cuts and Military Boost

September 23, 2025 An Ruwaito ta hanyar AI

In a bold move ahead of next year's elections, the Swedish government unveiled an 87 billion kronor ($8.5 billion) spending package aimed at stimulating economic growth through tax reductions, increased defense allocations, and support for households and businesses. The budget, presented by Finance Minister Elisabeth Svantesson, reflects a strategic pivot to address slowing growth and geopolitical tensions, drawing on fiscal surpluses to fund the initiatives without new borrowing. This election-year bonanza is expected to influence voter sentiment amid rising concerns over inflation and security.