Latest news with #PetersonInstituteForInternationalEconomics
Mint
3 days ago
- Politics
- Mint
China begs for babies after years of punishing parents, ready to spend ₹1 lakh crore; but, youth is not convinced
China once punished couples for having more than one child. Under its old one-child rule, some parents paid huge fines, up to 100,000 yuan ( ₹ 12 lakh). It was nearly triple their yearly income. Officials even forced abortions and surgeries. But, now, China wants young people to have more children. To encourage this, the government will give 3,600 yuan ( ₹ 44,000) every year for each child under three, retroactively effective from January 1. Beijing plans to spend 90 billion yuan (more than ₹ 1 lakh crore) to help 20 million families this year. Earlier, only local governments gave such support. This is the first time the Central government is giving a national subsidy. However, experts say this may not increase birth rates much. Similar plans failed in Japan and South Korea, according to CNN. Many young people in China feel stressed due to long work hours, expensive housing and uncertain jobs. The small allowance doesn't solve these bigger problems. While some parents welcome the money, others remain unsure about having kids. 'The cost of raising a child is enormous, and 3,600 yuan a year is a mere drop in the bucket,' Zane Li told CNN. When Zane was 9, her parents had to pay a hefty amount for having a second child. Zane, now 25, says he has no plans to have a baby. '(Having kids) would only bring more hardship. I'm not a capitalist or anything, and my kid probably wouldn't have much of a good life either,' Zane added. On Chinese social media, young people are sharing old receipts showing fines their parents had paid for having more than one child during the one-child policy. Many had grown up thinking life would improve with hard work and education. But now, hope is fading, CNN reported. Property is too expensive, and good jobs often go only to those with strong family contacts. Even though China ended the one-child rule and now allows up to three children, birth rates continue to fall. The population has been shrinking for three years. According to the Peterson Institute For International Economics, China recorded 9 births and 11.1 million deaths in 2023. The institute said the population decline was 'getting close to irreversible'. Raising one child in China costs an average of 538,000 yuan ( ₹ 65 lakh), which is over six times the country's average income. In cities like Shanghai and Beijing, it costs much more, crossing ₹ 1 crore.
Mint
3 days ago
- Politics
- Mint
China begs for babies after years of punishing parents, ready to spend ₹1 lakh crore; but, youth is not convinced
China once punished couples for having more than one child. Under its old one-child rule, some parents paid huge fines, up to 100,000 yuan ( ₹ 12 lakh). It was nearly triple their yearly income. Officials even forced abortions and surgeries. But, now, China wants young people to have more children. To encourage this, the government will give 3,600 yuan ( ₹ 44,000) every year for each child under three, retroactively effective from January 1. Beijing plans to spend 90 billion yuan (more than ₹ 1 lakh crore) to help 20 million families this year. Earlier, only local governments gave such support. This is the first time the Central government is giving a national subsidy. However, experts say this may not increase birth rates much. Similar plans failed in Japan and South Korea, according to CNN. Many young people in China feel stressed due to long work hours, expensive housing and uncertain jobs. The small allowance doesn't solve these bigger problems. While some parents welcome the money, others remain unsure about having kids. 'The cost of raising a child is enormous, and 3,600 yuan a year is a mere drop in the bucket,' Zane Li told CNN. When Zane was 9, her parents had to pay a hefty amount for having a second child. Zane, now 25, says he has no plans to have a baby. '(Having kids) would only bring more hardship. I'm not a capitalist or anything, and my kid probably wouldn't have much of a good life either,' Zane added. On Chinese social media, young people are sharing old receipts showing fines their parents had paid for having more than one child during the one-child policy. Many had grown up thinking life would improve with hard work and education. But now, hope is fading, CNN reported. Property is too expensive, and good jobs often go only to those with strong family contacts. Even though China ended the one-child rule and now allows up to three children, birth rates continue to fall. The population has been shrinking for three years. According to the Peterson Institute For International Economics, China recorded 9 births and 11.1 million deaths in 2023. The institute said the population decline was 'getting close to irreversible'. Raising one child in China costs an average of 538,000 yuan ( ₹ 65 lakh), which is over six times the country's average income. In cities like Shanghai and Beijing, it costs much more, crossing ₹ 1 crore. Because of such high costs, many couples are choosing not to have children. The younger generation is now more worried than hopeful about their future, the publication added.
Local France
28-07-2025
- Business
- Local France
'A dark day': What we know so far about the EU-US trade deal
EU chief Ursula von der Leyen clinched an agreement Sunday with US President Donald Trump to avoid crippling tariffs from hitting the bloc, with both leaders hailing a "good deal". The stakes were high with a looming August 1st deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: What did the EU-US agree? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. Advertisement The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. Advertisement "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said. Advertisement What has the reaction been around Europe? Well let's start in France where the French PM was outspoken in his criticism of the agreement. PM Francois Bayrou slammed the trade deal between the United States and the European Union as a "dark day" and tantamount to "submission." "It is a dark day when an alliance of free peoples, united to affirm their values and defend their interests, resorts to submission," said Bayrou in a post on X. His counterpart in Italy Giorgia Meloni was more positive. She welcomed the trade deal on Monday, saying it had avoided "potentially devastating" consequences. Meloni -- an ally of US President Donald Trump on many issues -- had earlier this month warned against a "trade war within the West." Speaking at a summit in Ethiopia, Meloni said a "trade escalation between Europe and the United States would have had unpredictable and potentially devastating consequences". German Chancellor Friedrich Merz on Sunday welcomed the trade deal, which he said avoided "needless escalation in transatlantic trade relations" -- even as many industries criticised it. "We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade," he said in a statement released soon after the deal was announced.
Local Germany
28-07-2025
- Business
- Local Germany
What we know so far about the EU-US trade deal
The stakes were high with a looming August 1st deadline and $1.9 trillion transatlantic trading relationship on the line. Many European businesses will breathe a sigh of relief after the leaders agreed the 27-country bloc will face a baseline levy of 15 percent instead of a threatened 30 percent -- but the deal will not satisfy everyone. Here is what we know so far: What did the EU-US agree? Both sides confirmed there will be a 15-percent across-the-board rate on a majority of EU goods -- the same level secured by Japan this month -- with bilateral tariff exemptions on some products. The deal will bring relief for the bloc's auto sector, employing around 13 million people -- and hit by Trump with 25-percent tariffs, on top of a pre-existing 2.5 percent. "Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent," said Jacob Funk Kirkegaard of the Peterson Institute For International Economics. A 15-percent levy will remain "costly" for German automakers, "but it is manageable", said trade geopolitics expert Elvire Fabry at the Jacques Delors Institute. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. Advertisement The EU also committed to buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it will pour $600 billion more in additional investments in the United States. Trump said EU countries -- which recently pledged to ramp up their defence spending within NATO -- would be purchasing "hundreds of billions of dollars' worth of military equipment". Are there exemptions? Von der Leyen said the 15-percent rate applied across most sectors, including semiconductors and pharmaceuticals -- a critical export for Ireland, which the bloc has sought to protect. Trump in April launched probes that could lead to significantly steeper tariffs on the two key sectors, warning this month he could slap 200-percent levies on drugs. Brussels and Washington agreed a bilateral tariff exemption for key goods including aircraft, certain chemicals, semiconductor equipment, certain agricultural products and critical raw materials, von der Leyen said. The EU currently faces 50-percent tariffs on its steel exports to the United States, but von der Leyen said a compromise on the metal had been reached with Trump. Advertisement "Between us, tariffs will be cut and a quota system will be put in place," she said. It is understood that European steel would be hit with 50-percent levies only after a certain amount of the metal arrived in the United States, but no details were initially provided on the mechanism. What happens next? The deal needs to be approved by EU member states, whose ambassadors will meet first thing Monday morning for a debrief from the European Commission. And there are still technical talks to come, since the agreement needs to be fully fleshed out. Von der Leyen described the deal as a "framework" agreement. "Details have to be sorted out, and that will happen over the next weeks," she said. In particular, she said there has yet to be a final decision on alcohol, critical since France and The Netherlands have been pushing for carve-outs for wine and beer respectively. "This is something which has to be sorted out in the next days," von der Leyen said.
Time of India
28-07-2025
- Business
- Time of India
US-Europe trade deal: Trump, Von der Leyen ink deal moments before tariff deadline – What we know so far
Europe has avoided a major trade row with the United States after an agreement between EU chief Ursula von der Leyen and US President Donald Trump was announced on Sunday. The deal was struck just days before the 1 August deadline. The agreement helps avert a steep hike in tariffs on European goods and provides relief to many industries across the region. At the center of the deal is a decision to impose a 15 per cent tariff on most EU products, down from the threatened 30 per cent. Both sides also agreed to make some exceptions for certain goods. The new rate is higher than the previous average of 4.8 percent. However, it matches what businesses are already paying after Trump introduced a 10 per cent flat tariff in April. Why the EU trade deal matters: Experts weigh in Last week's trade deal is very important for Europe, especially its car industry, as the automobile sector provides jobs for 13 million people. Before, the industry had to pay a 25 percent tax on top of the old 2.5 percent, so the new lower rate of 15 percent is a big plus point. Jacob Funk Kirkegaard of the Peterson Institute For International Economics hailed the deal. 'Obviously, it is good news for the car industry. So Germany will be happy. And all the EU members with auto supply chains, they go from 27.5 to 15 percent,' Kirkegaard was quoted as saying to news agency AFP. However, Elvire Fabry from the Jacques Delors Institute said the new rate would still be 'costly' for German carmakers. $750 billion energy deal Sunay's agreement also includes a major energy deal. The EU is set to buy $750 billion worth of US liquefied natural gas, oil and nuclear fuels over three years, replacing Russian energy supplies. In return, EU investments in the US are set to increase by another $600 billion. Trump added that European countries would be buying 'hundreds of billions of dollars' worth of military equipment' from the US. Which goods dodge the 15% tariff? Most sectors fall under the 15 per cent rule, but some key European industries will get special treatment. Von der Leyen said exemptions were agreed for aircraft, some chemicals, semiconductor equipment, certain agricultural products and critical raw materials. These bilateral exemptions are meant to protect vulnerable industries, such as pharmaceuticals, a vital export for Ireland. Trump had earlier hinted at much steeper tariffs, threatening 200 per cent levies on drugs. A separate compromise was also reached on steel, which currently faces a 50 per cent tariff. Von der Leyen explained, 'Between us, tariffs will be cut and a quota system will be put in place." The new rule means EU steel will only face 50 per cent tariffs once a certain limit is crossed. The deal is not yet final. EU ambassadors are set to meet Monday morning to review it, and more talks are needed to solidify the remaining issues. 'Details have to be sorted out, and that will happen over the next weeks,' von der Leyen said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
