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French PM Pushes Emergency Budget Law to Prevent Government Shutdown

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French Prime Minister Sebastien Lecornu has begun urgent talks with political leaders to pass emergency legislation that would keep the French government functioning into the new year, after lawmakers failed to agree on a full 2026 budget. A joint committee from both chambers of parliament was unable to finalise the budget bill last week, forcing the government to seek a temporary rollover law to allow spending, tax collection and borrowing to continue from January.

Lecornu is consulting party leaders, excluding the far right and far left, ahead of a cabinet meeting where the stopgap budget is expected to be approved before being sent to parliament. Lawmakers are widely expected to pass the measure on Tuesday, buying time for further negotiations on a complete 2026 budget in January. France’s fiscal situation is under close scrutiny from investors and credit rating agencies, as it currently has the highest budget deficit in the euro zone.

However, the political situation remains fragile. Lecornu has ruled out using special constitutional powers to force a budget compromise, as doing so could trigger a no-confidence vote. His minority government faces deep divisions in parliament, where budget disputes have already brought down three governments since President Emmanuel Macron lost his majority in the 2024 snap election. Last year, reliance on similar emergency legislation delayed the 2025 budget and cost the state an estimated €12 billion.

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Swiss Court Admits Climate Lawsuit by Indonesian Islanders Against Holcim

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A Swiss court has agreed to admit a landmark climate lawsuit filed by residents of an Indonesian island against cement giant Holcim, marking a first for such litigation in Switzerland. The cantonal court in Zug said it would examine the complaint, which alleges that Holcim’s carbon emissions contribute to global warming and rising sea levels that have repeatedly flooded Pulau Pari, a low-lying island in Indonesia. The case was filed in January 2023 by four island residents, though the court noted the decision could still be overturned during appeal proceedings.

Holcim has said it plans to appeal the ruling, arguing that decisions on carbon emissions should be made by lawmakers rather than civil courts. The company reiterated its commitment to reaching net-zero emissions by 2050 and said it has already cut its direct CO₂ emissions by more than 50% since 2015. However, NGOs backing the plaintiffs said Holcim was chosen because it is one of the world’s major carbon emitters and a leading “carbon major” in Switzerland.

Supporters of the case, including Swiss Church Aid, said the ruling represents the first time a Swiss court has admitted climate litigation against a large corporation. The plaintiffs are seeking compensation for climate-related damage, financial support for flood protection measures, and faster reductions in emissions. With cement production responsible for around 7% of global CO₂ emissions, the case is being closely watched as a potential precedent for corporate climate accountability.

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Kremlin Dismisses European, Ukrainian Changes to U.S. Peace Proposals

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The Kremlin said on Sunday that recent changes proposed by Europe and Ukraine to U.S.-drafted plans aimed at ending the war in Ukraine have not improved the prospects for peace. Russian President Vladimir Putin’s top foreign policy aide, Yuri Ushakov, said Moscow remains unconvinced that the revised proposals would help achieve a lasting settlement, reflecting Russia’s continued scepticism toward European and Ukrainian involvement in shaping the peace framework.

The original U.S. proposals, which were leaked last month, sparked concern among European and Ukrainian leaders who feared they were overly favourable to Russia and could pressure Kyiv into excessive concessions. In response, European and Ukrainian negotiators have held talks with envoys from U.S. President Donald Trump’s administration to introduce their own amendments, though the precise details of the updated proposals have not been made public. Ushakov said he had not yet seen the full documents but was confident the changes would not enhance the chances of long-term peace.

His remarks came after Putin’s special envoy Kirill Dmitriev held talks in Florida with U.S. special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner. Dmitriev is expected to report back to Putin on the discussions, after which Moscow will decide its next steps in contacts with Washington. The talks underscore the high stakes surrounding whether the war—the deadliest in Europe since World War Two—can be brought to an end, the future of Ukraine, and whether any U.S.-brokered deal would be durable.

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Elysee Palace Silverware Keeper to Stand Trial Over Alleged Porcelain Theft

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France’s presidential silverware keeper and two other men will stand trial over the suspected theft of valuable porcelain and tableware from the Elysee Palace, Paris prosecutors said. The presidency had reported the disappearance of items used during state dinners and official events, with the total value of the missing objects estimated between €15,000 and €40,000. The French presidency has not commented on the case so far.

Prosecutors said the silverware keeper, identified as Thomas M., and his partner Damien G. were arrested on suspicion of theft, while a third man, Ghislain M., was detained on suspicion of receiving stolen goods. Investigators found around 100 items in Thomas M.’s locker, car and home, including copper pots, Sevres porcelain and Baccarat champagne glasses. Authorities said suspicious inventory adjustments had raised internal alarms, suggesting the thefts may have been planned in advance.

Some stolen items were allegedly offered for sale online, including air force-stamped plates and ashtrays found on a resale platform. Sevres, a key supplier to the Elysee, later identified several missing pieces on auction websites, with some items since recovered. Ghislain M., who reportedly worked as a guard at the Louvre Museum, has been barred from returning to his post pending trial, which is scheduled for February.

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Putin Says Russia Will Avoid Future Wars If West Shows Respect

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Russian President Vladimir Putin has said Russia would not launch any new wars after Ukraine if Western countries treat Moscow with respect and acknowledge its security interests. Speaking during his annual “Direct Line” televised marathon, Putin dismissed claims that Russia plans to attack Europe as “nonsense” and said further military operations could be avoided if the West stopped what he described as deception, particularly over Nato’s eastward expansion.

Answering questions from the BBC and other international journalists, Putin repeated that Russia was open to ending the war in Ukraine “peacefully,” but only on its own terms. He reiterated demands that Ukrainian forces withdraw from regions partially occupied by Russia and abandon efforts to join Nato. Putin also claimed Russian forces were advancing on the battlefield and insisted that responsibility for blocking peace lay with Western governments and Ukraine’s European backers, not Moscow.

The lengthy broadcast, which mixed foreign policy with domestic concerns, came as fighting in Ukraine continued, with Ukrainian officials reporting deadly Russian missile strikes hours after the event. Putin acknowledged economic pressures at home, including rising prices and higher taxes, while portraying Russia as resilient. He concluded by saying Russia was ready to cooperate with the US, Europe, and the UK as equals, provided its long-term security was guaranteed, accusing the West of deliberately turning Russia into an enemy.

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Norway’s Crown Princess May Need Lung Transplant as Health Worsens

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Norway’s Crown Princess Mette-Marit is likely to require a lung transplant after her health deteriorated significantly in recent months, the royal household has announced. The 52-year-old princess was diagnosed with pulmonary fibrosis in 2018, a progressive lung disease that causes scarring and restricts breathing. Medical tests carried out this autumn showed a clear worsening of her condition, prompting doctors to begin preparations for a possible transplant evaluation.

Although no final decision has been taken on placing her on the transplant waiting list, doctors at Oslo University Hospital said the process towards assessing her eligibility has begun. In Norway, lung transplants are limited, with typically 20 to 40 patients waiting at any given time, and the palace stressed that Princess Mette-Marit would not receive preferential treatment. Her healthcare team is making necessary preparations to ensure a transplant can be carried out if and when required.

The palace said the princess now needs more rest and a carefully managed exercise routine, but she remains keen to continue her royal duties, which will be adjusted to suit her health. Her husband, Crown Prince Haakon, said she struggles more with breathing and has less energy, making activities such as hiking and skiing impossible. Despite the risks involved, the princess acknowledged that a transplant may become necessary as pulmonary fibrosis is a serious disease that can worsen rapidly.

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German Economic Recovery to Begin Slowly, Says Bundesbank

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Germany’s economic recovery after three years of stagnation is expected to begin slowly next year before gaining momentum later, according to the Bundesbank’s latest biannual economic projections. Europe’s largest economy has struggled since 2023 due to a weakened industrial sector, subdued consumer spending and restrained government expenditure. A turnaround began this year after Chancellor Friedrich Merz eased spending rules and announced higher outlays on defence and infrastructure.

Bundesbank President Joachim Nagel said growth would remain modest at first but strengthen from the second quarter of 2026, supported by increased government spending and a revival in exports. The central bank now forecasts economic growth of 0.2% in 2025, an improvement from its earlier expectation of stagnation, while growth in 2026 is projected at 0.6%, slightly below its previous estimate.

Inflation projections, however, have been revised sharply higher due to faster-than-expected wage growth. The Bundesbank warned that strong wage increases, driven by low unemployment and labour shortages, could persist for years. Consumer price inflation is now expected to reach 2.2% in 2025, up from an earlier forecast of 1.5%, influencing the European Central Bank’s decision to raise its own euro zone inflation outlook and maintain a cautious policy stance.

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Hackers Use AI-Generated Decoys to Target Russian Defense Firms

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Russian technology and defense-linked companies have been targeted in recent weeks by a cyber espionage campaign that used AI-generated decoy documents, according to cybersecurity firm Intezer. The operation focused on firms involved in air defense systems, sensitive electronics and other military applications, highlighting how accessible AI tools are increasingly being leveraged in sophisticated hacking efforts.

Researchers attribute the campaign to a hacking group known as “Paper Werewolf,” also tracked as GOFFEE, which has been active since 2022 and is widely believed to be pro-Ukrainian. The group reportedly used fake documents—such as invitations to concerts for senior officers and official-looking requests from Russian ministries—to trick targets into opening malicious files. Analysts say the campaign offers rare visibility into cyber espionage operations aimed at Russian entities, which are often difficult to observe.

Experts note that while such attacks are not unusual amid the ongoing Russia-Ukraine war, the use of AI-generated content significantly lowers the barrier to executing complex cyber operations. The targeting of major defense contractors suggests an interest in Russia’s military production, supply chains and research activities. While Intezer linked the operation to Paper Werewolf based on technical indicators, it remains unclear whether the hackers were working directly with a nation-state or collaborating with other pro-Ukrainian cyber groups.

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EU Approves €90 Billion Loan for Ukraine, Sidesteps Use of Frozen Russian Assets

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European Union leaders have agreed to provide Ukraine with a €90 billion loan to support its military and economic needs over the next two years, following intense negotiations at a summit in Brussels. The funding will be backed by the EU’s common budget after member states failed to reach consensus on using frozen Russian assets. European Council President Antonio Costa said the deal demonstrated unity and commitment, calling it a delivery on promises made to Kyiv.

Ukrainian President Volodymyr Zelensky had pushed for the use of around €200 billion in frozen Russian assets, most of which are held in Belgium. However, concerns over legal risks and liability-sharing prevented agreement, with Belgium seeking guarantees that other EU countries were unwilling to provide. While expressing gratitude for the loan, Zelensky stressed that Russian assets should remain immobilised and said the support would significantly strengthen Ukraine’s resilience at a critical time.

The loan offers a vital lifeline as Ukraine faces a looming cash crunch, with EU estimates suggesting the country needs €135 billion over the next two years and could begin running short of funds by April. European leaders said the agreement avoided division within the bloc, while Germany’s Chancellor said it sent a strong signal to Moscow. The decision comes amid renewed diplomatic efforts, including upcoming US-Russia talks and continued discussions between Ukrainian and US officials on security guarantees.

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Sarajevo Imposes Curbs After Ranking as World’s Most Polluted City

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Sarajevo authorities issued an air quality warning and introduced emergency restrictions after the Bosnian capital was ranked the world’s most polluted city on two consecutive evenings by Swiss air quality monitor IQAir. The move came as hazardous air conditions gripped the city of around 350,000 people, following days of dense fog and smog. Officials said pollution levels had risen sharply, prompting immediate intervention to protect public health.

The cantonal government banned trucks weighing over 3.5 tonnes and vehicles that fail to meet European Union emissions standards from entering the city, while also suspending construction work in open areas and prohibiting outdoor public gatherings. Experts say pollution in Sarajevo is largely driven by winter heating, with around 40,000 households relying on firewood and coal, as well as heavy traffic, with nearly 180,000 registered vehicles in the city.

Sarajevo’s location in a valley surrounded by mountains worsens the problem due to temperature inversion, which traps cold air and pollutants near the ground for days. Bosnia ranks among Europe’s worst countries for fine particulate matter (PM2.5) pollution, which the World Bank links to thousands of premature deaths annually and significant economic losses. Health experts warn that prolonged exposure increases the risk of lung cancer and poses serious dangers to vulnerable groups, including children, pregnant women and the elderly.

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