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Germany’s Coalition Divided Over Inheritance Tax Reform Ahead of Key Elections

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Germany’s Social Democratic Party (SPD) has proposed sweeping changes to inheritance tax rules, setting up a fresh dispute with its conservative coalition partner. The reforms aim to make the system fairer by increasing taxes on large estates while easing the burden on smaller inheritances, just as the government faces several important regional elections this year.

While both the SPD and Chancellor Friedrich Merz’s conservative bloc agree on the need for tax relief to revive the weak economy, they strongly disagree on how to achieve it. The disagreement adds to growing tensions within the coalition, reinforcing public perceptions of a divided and slow-moving government at a time when voters are demanding clear economic direction.

Under the SPD plan, heirs would be able to inherit up to around one million euros tax-free, and family homes would remain exempt if the heir continues to live there. Family businesses would receive allowances of about five million euros, but larger firms would face higher taxes — a move strongly opposed by conservatives, who warn it could hurt Germany’s small and medium-sized companies.

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Orban Faces Toughest Election Test as Hungary Votes on April 12

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Hungary’s nationalist Prime Minister Viktor Orban will face his strongest electoral challenge in 16 years when the country holds parliamentary elections on April 12. The vote is being closely watched across Europe, as Orban has been a key figure among far-right leaders and maintains close ties with U.S. President Donald Trump and Russia despite the Ukraine war.

Orban, who has ruled since 2010, has reshaped Hungary into what he calls an “illiberal democracy,” often clashing with the European Union over media freedom, migration and LGBTQ rights. His Fidesz party is campaigning on stability and security, promising to keep Hungary out of the Ukraine conflict and stop illegal migration, while also trying to revive an economy hit by high inflation and a cost-of-living crisis.

Challenging him is Peter Magyar, a former government insider whose Tisza party has surged since entering politics in 2024. Recent polls show Magyar ahead among decided voters, as he campaigns on fighting corruption, restoring EU ties and unlocking frozen European funds to boost the economy. With many voters still undecided, the election outcome remains uncertain and could reshape Hungary’s role in Europe.

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Russia Probes Hospital Negligence After Nine Newborn Deaths in Siberia

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Russian authorities have launched a criminal investigation into the deaths of nine newborn babies at a maternity hospital in the Siberian city of Novokuznetsk, following suspicions of medical negligence. The country’s Investigative Committee said hospital staff are being questioned, medical records have been seized and forensic examinations are under way to establish the cause of the deaths.

The hospital said it had treated 32 infants in intensive care since December 1, including 17 in critical condition suffering from severe intrauterine infections. While it maintained that all newborns received treatment in line with clinical guidelines, it confirmed that nine babies did not survive. Four infants remain in intensive care, while another four have been transferred to a different medical facility.

The case has sparked widespread public outrage, with the governor of the Kuzbass region, Ilya Seredyuk, suspending the hospital’s chief doctor pending the investigation. The incident has triggered angry reactions on social media and renewed scrutiny of Russia’s healthcare system, especially as authorities seek to boost the country’s low birth rate. The hospital has since suspended new admissions, citing a surge in respiratory infections and the introduction of quarantine measures.

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Marine Le Pen’s Appeal on EU Funds Misuse Begins in Paris

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French far-right leader Marine Le Pen has begun a critical appeal in Paris that could determine her eligibility to run in the 2027 presidential election. She was banned from holding public office in March after being convicted, along with eight former National Rally (RN) lawmakers, of misappropriating over €4 million in European Union funds. The case stems from payments made to staff working for the party instead of the European Parliament between 2004 and 2016.

Le Pen maintains that her actions were legitimate and hopes to convince the new panel of judges of her innocence. She also appealed her initial sentence of four years’ imprisonment, with two years suspended and two under home detention, and a €100,000 fine. The appeal hearing, which also involves the RN and ten other co-defendants, is scheduled to conclude on February 12, with a ruling expected before summer.

If the five-year ban is upheld, Le Pen would be barred from contesting the 2027 election. In such a scenario, her protégé, 30-year-old RN party president Jordan Bardella, is expected to lead the party’s presidential bid. The European Parliament is seeking more than €3 million in damages, while the RN must also pay a €2 million fine, half of which has been suspended.

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G7 and Allies Explore Reducing Dependence on Chinese Rare Earths

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Finance ministers from the G7 countries, along with officials from Australia, Mexico, South Korea, and India, met in Washington on January 12 to discuss strategies for reducing dependence on Chinese rare earths. The meeting, convened by U.S. Treasury Secretary Scott Bessent, focused on securing alternative supply chains for critical minerals through measures such as price floors and new international partnerships. No joint statement was issued, but officials highlighted broad agreement on the urgency of diversifying sources.

Japanese Finance Minister Satsuki Katayama emphasized short-, medium-, and long-term approaches to strengthen non-Chinese rare earth supplies. Proposed measures include promoting labor and human rights standards in mineral sourcing, deploying financial incentives, trade and tariff tools, and minimum price settings. Countries participating in the discussions, along with the EU, represent 60% of global demand for critical minerals, which are vital for defense, semiconductors, renewable energy, and battery technologies.

German Finance Minister Lars Klingbeil and South Korean Finance Minister Koo Yun-cheol stressed the importance of proactive steps, including developing domestic supplies, recycling, and technology collaborations to create resilient supply chains. While participants warned against forming an anti-China coalition, they agreed on the need for urgent action to secure critical minerals and reduce vulnerability to export restrictions, particularly amid China’s recent curbs on materials destined for Japan’s military.

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Spain Moves to Cap Room Rents and Curb Seasonal Leases to Tackle Housing Crisis

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Spain’s government will introduce tougher rental rules in the coming weeks, including caps on room rents and stricter limits on seasonal leases, as it tries to rein in soaring housing costs. Prime Minister Pedro Sánchez said the new decree will deepen state intervention in the rental market, which has come under strain from a severe housing shortage and a booming tourism sector.

The plan includes a 100% income tax rebate for landlords who renew leases without increasing rents, alongside rent controls in areas classified as under heavy pressure. It will also limit the total rent charged for individual rooms so it cannot exceed the price of renting a whole apartment, a move aimed at stopping landlords from inflating prices through shared housing.

Seasonal rental contracts will face tighter conditions and penalties if they are used to replace long-term leases, a practice critics say worsens housing insecurity. While regions will be responsible for enforcing most of the measures, some, such as Catalonia and major cities like Madrid, have already begun imposing similar limits as Spain grapples with a housing deficit estimated at about half a million homes.

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French Farmers Step Up Protests Against Mercosur Trade Deal by Targeting Imports

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French farmers intensified their protests on Monday by stopping trucks and checking imported food at key transport hubs, including the country’s largest container port at Le Havre and on a major motorway north of Paris. The actions were aimed at opposing the EU-Mercosur free-trade deal, which farmers say would expose them to unfair competition from cheaper agricultural products imported from South America and beyond.

The pressure has grown since most European Union member states approved the deal last week, despite France voting against it. Farmers’ unions argue that imported goods often do not meet the same environmental, health and labour standards required of European producers, making it difficult for them to compete on price. Protesters at Le Havre said they had already spotted products such as mushrooms and sheep offal from China entering the supply chain.

Protests also spread to other parts of the country, with farmers blocking fuel depots, ports and transport routes in regions including La Rochelle, Bayonne and the French Alps. Unions plan to bring tractors into Paris for a major demonstration, followed by another rally in Strasbourg later this month, as they seek to persuade the European Parliament to reject the Mercosur agreement.

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France Unveils Voluntary Military Service to Boost National Readiness

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France has launched a nationwide recruitment drive for a new 10-month voluntary military service aimed at strengthening the country’s ability to respond to growing security and civil-defence challenges. The programme, announced by President Emmanuel Macron last year, will begin in September and is open to French citizens aged 18 to 25 who want to contribute to national resilience in an increasingly uncertain global environment.

Under the scheme, 3,000 young people will join the army, navy or air force from September, with numbers rising to 4,000 in 2027 and up to 10,000 a year by 2030. Participants will earn about 800 euros a month and carry out a wide range of tasks, including disaster relief, counter-terrorism surveillance and technical roles such as drone operation, mechanical work, medical support and logistics.

The initiative is part of a wider European shift as countries reassess their defence needs amid concerns about Russia and uncertainty over long-term U.S. security commitments. French Defence Minister Catherine Vautrin said the programme supports a move toward a more flexible “hybrid” military model, with recruits free to return to civilian life, join the reserves or pursue full-time service after completing their term.

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Nordic Countries Dismiss Trump’s Claims of Russian, Chinese Presence Near Greenland

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Nordic diplomats have rejected U.S. President Donald Trump’s claims that Russian and Chinese vessels are operating near Greenland, calling the assertions unfounded. According to a report by the Financial Times, two senior Nordic diplomats with access to NATO intelligence briefings said there have been no signs of Russian or Chinese ships or submarines in waters around Greenland in recent years. Reuters said it could not independently verify the report, while the White House and NATO did not immediately respond to requests for comment.

Diplomats cited by the FT said intelligence assessments do not support the narrative of heightened foreign naval activity near the island. One senior official was quoted as saying there were “no ships, no submarines,” while another dismissed claims that the waters around Greenland were “crawling” with Russian and Chinese vessels, noting that any such activity was instead concentrated on the Russian side of the Arctic. Vessel-tracking data from MarineTraffic and LSEG also showed no Chinese or Russian ship presence near Greenland.

Trump has repeatedly argued that the United States must control Greenland—an autonomous territory within the Kingdom of Denmark—to prevent Russia or China from gaining a foothold in the strategically located and resource-rich region. Denmark has disputed these claims, with Foreign Minister Lars Løkke Rasmussen saying the portrayal of foreign ships and large Chinese investments near Nuuk was inaccurate. Greenland’s assembly has since moved up a meeting to discuss its response to U.S. statements, amid growing concern among the island’s 57,000 residents over renewed pressure from Washington.

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Arctic Freeze Grounds Flights, Strands Tourists in Finland’s Lapland

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Thousands of tourists were left stranded in Finland’s Lapland after extreme cold forced the cancellation of flights at Kittila Airport, a major hub for winter travellers. Temperatures failed to rise above –35°C on Sunday, grounding flights bound for cities such as London, Manchester, Paris and Amsterdam. The situation is expected to continue as forecasts warn of lows reaching –39°C, leading to further cancellations.

The severe cold has made it difficult to de-ice aircraft and operate ground equipment such as refuelling and maintenance systems, which can freeze in such conditions. Finland’s airport operator Finavia said moisture in the air was worsening the problem by creating slippery frost on aircraft and runways. Although Lapland is known for harsh winters, its usual average temperature is around –14°C, making this cold snap unusually extreme.

The freezing weather has also made travel on the ground dangerous, with icy roads reported across the region. A bus carrying Ukrainian passengers slid into a ditch, though no serious injuries were reported. The cold spell is part of a wider winter storm affecting northern Europe, which has caused power cuts in France, travel disruption in several countries, and even a fatal accident in the UK.

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