Source: People’s Republic of China – State Council News
Border control personnel inspect a freight truck at a checkpoint near the Poland-Lithuania border in Suwalki, Poland, July 7, 2025. [Photo/Xinhua]
Poland reinstated checkpoints along its borders with Germany and Lithuania on Monday to curb illegal migration and reinforce national security, authorities said.
According to the Ministry of the Interior and Administration, the government has designated 52 checkpoints along the German border and 13 along the Lithuanian border.
The checks will remain in effect for 30 days, until Aug. 5, and be carried out by the Border Guard with support from police and Territorial Defense Force soldiers, said the ministry.
Konrad Szwed, a spokesman for the Board Guard, told the Polish Press Agency that inspections will be conducted randomly, with priority given to vans and vehicles carrying multiple passengers, as well as cars with tinted windows.
“Let’s remember that this won’t be the type of border control we had before joining the Schengen zone — there won’t be any barriers or fences,” Szwed said. “Cars will pass through, and checks will only be conducted selectively based on our risk analysis. If a vehicle is stopped, the driver’s and passengers’ documents will be checked, as well as the trunk.”
A nationwide alert has been issued to inform citizens of the new checks and encourage cooperation, Minister of the Interior and Administration Tomasz Siemoniak said during a press conference in Swiecko, a town on the Polish-German border.
“We want to minimize the inconvenience to citizens, including businesspeople and everyone who benefits from good cross-border cooperation. I also count on cooperation from local governments,” Siemoniak said.
In October 2023, Germany introduced border control with Poland as part of broader efforts to curb illegal migration.
Source: People’s Republic of China – State Council News
The European Union (EU) is intensifying its efforts to finalize a trade agreement with the United States before the looming July 9 deadline, aiming to avert a new wave of punitive tariffs.
European Commission spokesperson Olof Gill confirmed on Monday that “political and technical contacts” between Brussels and Washington are ongoing, with the EU still committed to securing an agreement in principle by Wednesday.
While hopes for a comprehensive trade deal have been abandoned due to time constraints, the EU remains focused on establishing a framework that can prevent further tariff increases. If no agreement is reached, U.S. tariffs on most EU imports are expected to rise from the current 10 percent to 20 percent, and potentially up to 50 percent, in line with rates announced by U.S. President Donald Trump on April 2.
On Friday, the European Commission held consultations with EU member states to assess the situation. Further high-level engagement took place over the weekend, with Commission President Ursula von der Leyen speaking by phone with President Trump on Sunday. Although no formal breakthrough was reported, officials described the call as a “good exchange.”
On Sunday, U.S. Treasury Secretary Scott Bessent said that tariffs for countries that had not reached an agreement with the United States would take effect on Aug. 1 instead of July 9. Trump said that the United States would begin issuing tariff notification letters to a dozen countries starting Monday at 12 p.m. Eastern Time (1600 GMT).
The European Commission continues to weigh its options. A retaliatory tariff list has been prepared and reviewed with member states and industry stakeholders. However, according to Gill, there are no immediate plans to activate it, as “diplomatic efforts remain the priority.”
Germany, France, and Italy remain closely engaged in the negotiations. German Chancellor Friedrich Merz has emphasized the need for a deal to protect industries vulnerable to tariffs, including the automotive and pharmaceutical sectors.
As the July 9 deadline approaches, analysts remain skeptical about the feasibility of concluding multiple lasting agreements within such a short period.
“Trade deals typically take years to negotiate. It would be surprising to see long-term deals materialize so quickly,” said Andrew Lapping, chief investment officer at Ranmore Fund Management.
“Trump is in a teasing mood, hinting at more deals while keeping markets guessing. Investors are bracing for fresh volatility,” said Susannah Streeter, head of Money and Markets at Hargreaves Lansdown, a British financial services company.
Source: People’s Republic of China – State Council News
Fluminense manager Renato Gaucho said his team had come to the United States to “make history” as it prepared to face Chelsea in the semifinals of the FIFA Club World Cup on Tuesday.
Speaking at a press conference on Monday, Renato acknowledged the financial disparity between Fluminense and its European rivals but said that belief, focus and discipline had brought his side this far.
“Fluminense being the ugly duckling has made it this far despite the financial disadvantages, but that doesn’t mean Fluminense can’t reach the final and win the Club World Cup,” he said.
Niklas Suele (down) of Borussia Dortmund vies with Kevin Serna of Fluminense FC the Group F match between Fluminense FC of Brazil and Borussia Dortmund of Germany at the FIFA Club World Cup 2025 in New Jersey, the United States, June 17, 2025. (Xinhua/Li Rui)
According to Renato, the Rio de Janeiro outfit has less than 10% of the financial capacity of clubs such as Chelsea, Real Madrid or Paris Saint-Germain.
“These big clubs have all the conditions to sign the best players,” he said. “But we’ve made it here with a lot of hard work, humility and above all, by believing in ourselves.”
Fluminense reached the last four by finishing second in Group F before beating Inter Milan and Al Hilal in the first two knockout rounds.
Chelsea, meanwhile, overcame Benfica and Palmeiras in its last two games after finishing second in Group D.
Renato praised the speed and technical quality of Chelsea’s forwards but said his team would not change its winning formula.
“Without a doubt they have a very powerful attack,” he said. “Two very fast wingers in one-on-one situations, which I like a lot, and Joao Pedro is a great striker. Their midfield has players who think the game very well.
“We always try to limit the impact of our opponent when it has possession, but when we have the ball, we’re going to play. It’s what we’ve been doing all tournament.”
Renato declined to confirm his starting lineup or formation but said his tactical flexibility had been key.
“In this Club World Cup I changed the formation twice and it worked,” he said. “We’re getting results because of our hard work.”
The winner of the match at MetLife Stadium in New Jersey will meet either Paris Saint-Germain or Real Madrid in the final on Sunday. Renato insisted his team would not be content with a semifinal exit.
“Have we made history so far? Yes. Are we happy? Yes. But we want more. Our goal is to reach the final,” he added.
Source: People’s Republic of China – State Council News
This photo taken on July 7, 2025 shows an exterior view of the Deep Space Exploration Laboratory in Hefei, east China’a Anhui Province. [Photo/Xinhua]
HEFEI, July 7 — The International Deep Space Exploration Association (IDSEA), an international academic organization dedicated to deep space exploration, was officially launched on Monday in Hefei, capital of east China’s Anhui Province.
The move marks a key step in global collaboration to advance space technology and build a community with a shared future for humanity in outer space.
This association was jointly initiated by the Hefei-based Deep Space Exploration Laboratory, the Lunar Exploration and Space Program Center of the China National Space Administration, the Chinese Society of Astronautics, the Chinese Society of Space Research and the French initiative “Planetary Exploration, Horizon 2061.” The founding of the IDSEA was also co-sponsored by 20 academicians from China and 31 international scientists.
Wu Weiren, chief designer of China’s lunar exploration program and an academician of the Chinese Academy of Engineering, was elected as the association’s first chairman.
Wu said the association’s establishment holds great significance for international exchange and cooperation in China’s space program, as it is a crucial step toward collaborative innovation within the global space community.
He said the association will focus on areas including lunar exploration, planetary exploration and asteroid defense. It will conduct studies on trends in international deep space exploration, host international academic events, foster global talent in space science and technology, take part in making standards and rules concerning outer space, and advance the peaceful and sustainable use of outer space.
He extended a warm invitation to scientists and engineers worldwide to join the association and contribute to global exploration of the universe.
Despite being a latecomer to outer space exploration, China has rapidly emerged as a prominent player in this field while also demonstrating its commitment to cooperating with other nations.
In April 2025, China announced that seven institutions from six countries — France, Germany, Japan, Pakistan, the United Kingdom and the United States, have been authorized to borrow lunar samples collected by China’s Chang’e-5 mission for scientific research purposes.
China has also invited global partners to participate in its Mars missions. The country plans to launch the Tianwen-3 Mars sample-return mission around 2028, with the primary scientific goal of searching for signs of life on Mars.
Retrieval of samples from Mars, the first mission of its kind in human history, is considered the most technically challenging space exploration task since the Apollo program.
This photo taken on July 7, 2025 shows an exterior view of the International Deep Space Exploration Association in Hefei, east China’a Anhui Province. [Photo/Xinhua]Guests visit the show room of the Deep Space Exploration Laboratory in Hefei, east China’s Anhui Province, July 7, 2025. [Photo/Xinhua]
Source: United Kingdom – Executive Government & Departments
News story
Emergency Alert Test: Frequently Asked Questions
This page answers frequently asked questions about the upcoming national Emergency Alert test taking place on Sunday 7th September 2025.
When will the test take place?
The test will take place at around 15:00 BST on 7th September 2025.
Why is the test taking place?
Regular testing ensures the system is functioning correctly, should it be needed in an emergency.
Who will receive the test alert?
The test will function like a real life Emergency Alert.
Emergency Alerts work on all 4G and 5G phone networks in the UK. Your mobile phone or tablet does not have to be connected to mobile data or wifi to get alerts.
However, you will not receive alerts if your device is: turned off; connected to a 2G or 3G network; wifi only; or not compatible.
How many mobile phones are there in the country?
There are approximately 87 million mobile phones in the UK.
What will the test look and sound like?
Devices will vibrate and make a loud siren sound for roughly ten seconds. A test message will also appear on screens.
What will the test message say?
The government will publish the test message in due course. It will make clear the alert is only a test. You can see all previous alerts at [https://www.gov.uk/alerts/past-alerts]
Do other countries run similar tests?
Lots of other countries operate similar emergency systems and run regular tests, including Japan and the United States of America.
Some countries test their systems monthly, such as Finland, while other countries test their systems annually, such as Germany.
What about my personal data?
Data about you, your device or location will not be collected or shared.
The emergency services and the UK government do not need your phone number to send you an alert.
What should drivers do?
It is illegal to use a hand-held device while driving. Find somewhere safe and legal to stop before reading the message.
What are you doing to support victims of domestic abuse?
Emergency alerts contain life-saving information and should be kept switched on for your own safety.
However, there may be some scenarios where it is sensible to opt out of alerts, including victims of domestic abuse with a concealed phone.
The government will continue ongoing engagement with domestic violence charities and campaigners in the run up to the test, to ensure people know how to switch off alerts on a concealed phone.
How do victims of domestic violence turn off the alerts?
How you opt out depends on your device.
Full instructions telling you how to opt out are available at [https://www.gov.uk/alerts/opting-out]
If you still get alerts after opting out, contact your device manufacturer for help.
What are you doing to support deaf, hard of hearing, blind or partially sighted people?
During the test, audio and vibration attention signals will let you know you have received an alert, if accessibility notifications have been enabled on your mobile phone or tablet.
The government will continue ongoing engagement with disability charities and campaigners in the run up to the test.
President Donald Trump said on Monday the U.S. would impose a 25% tariff on imports from Japan and South Korea beginning Aug. 1 as he unveiled the first two of an expected 12 letters to trading partners outlining the new levies they face.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” Trump said in letters to the leaders of the two Asian countries, which he posted on his Truth Social platform.
Later, Trump also announced the U.S. will impose 25% tariffs on Malaysia and Kazakhstan, 30% on South Africa and 40% on Laos and Myanmar.
The rate for South Korea is the same as Trump initially announced on April 2, while the rate for Japan is 1 point higher than first announced. A week later, he capped all of the so-called reciprocal tariffs at 10% until July 9 to allow for negotiations. Only two agreements have so far been reached, with Britain and Vietnam.
There was no immediate response from the Japanese or South Korean embassies on the announcement.
About12 countries will receive letters from Trump, White House spokeswoman Karoline Leavitt said at a briefing without identifying them. She said Trump would sign an executive order on Monday formally delaying the July 9 deadline to August 1.
“There will be additional letters in the coming days,” Leavitt said, adding that “we are close” on some deals.
The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday.
U.S. stocks fell in response, the latest market ruction since Trump unleashed a global trade war on his return to office in January. His moves have repeatedly whipsawed financial markets and sent policymakers scrambling to protect their economies.
U.S. stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs in the weeks after he put the stiffest levies on hold on April 9.
The S&P 500 on Monday was down nearly 1%, its biggest drop in three weeks. U.S.-listed shares of Japanese automotive companies fell, with Toyota Motor down 4.1% at mid-afternoon trading and Honda Motor off by 3.8%. The dollar surged against both the Japanese yen and the South Korean won.
U.S. Treasury Secretary Scott Bessent said earlier on Monday he expected several trade announcements to be made in the next 48 hours, adding that his inbox was full of last-ditch offers from countries to clinch a tariff deal by the deadline.
Bessent did not say which countries could get deals and what they might contain. Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened.
Countries have scrambled to hammer out deals before the Wednesday deadline. South Korea and Indonesia dispatched representatives to Washington, while Thailand submitted a new trade proposal offering zero tariffs on many U.S. goods.
“We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals,” Bessent said in an interview with CNBC. “So it’s going to be a busy couple of days.”
BRICS THREAT
For its part, the European Union still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a “good exchange,” a Commission spokesperson said.
It was not clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States’ largest trading partner.
Adding to the pressure, Trump threatened to impose a 17% tariff on EU food and agriculture exports, it emerged last week.
Trump had said on Sunday the U.S. was close to finalizing several trade pacts and would notify other countries by July 9 of higher tariff rates. He said they would not take effect until Aug. 1, a three-week reprieve.
He also put members of the developing nations’ BRICS group in his sights as its leaders met in Brazil, threatening an additional 10% tariff on any BRICS countries aligning themselves with “anti-American” policies.
The new 10% tariff will be imposed on individual countries if they take anti-American policy actions, a source familiar with the matter said.
The BRICS group comprises Brazil, Russia, India and China and South Africa along with recent joiners Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.
Trump’s comments hit the South African rand.
EU SEEKS EFFECTIVE APPROACH TO TRUMP
The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome. It had already dropped hopes for a comprehensive trade agreement before the July deadline.
“We want to reach a deal with the U.S. We want to avoid tariffs,” the spokesperson said at a daily briefing.
Without a preliminary agreement, broad U.S. tariffs on most imports would rise from their current 10% to the rates set out by Trump on April 2. In the EU’s case, that would be 20%.
Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said. Chancellor Friedrich Merz has repeatedly stressed the need for a quick deal to protect industries vulnerable to tariffs ranging from cars to pharmaceuticals.
The German spokesperson said the parties should allow themselves “another 24 or 48 hours to come to a decision.”
Germany’s Mercedes-Benz MBGn.DEsaid on Monday its second-quarter unit sales of cars and vans had fallen 9%, blaming tariffs.
Russia said BRICS was “a group of countries that share common approaches and a common world view on how to cooperate, based on their own interests.”
“And this cooperation within BRICS has never been and will never be directed against any third countries,” said Kremlin spokesman Dmitry Peskov.
Abschied (Parting) by Sebastian Haffner (1907-1999) is dominating the bestseller charts in Germany. It has been published posthumously, over 25 years after his death, after the manuscript was found in a drawer.
The novel is a love story between Raimund, a young non-Jewish German student of law from Berlin, and Teddy, a young Jewish woman from Vienna. Raimund and Teddy meet on August 31 1930 in Berlin and the novel covers the time they spend in Berlin and Paris together.
Abschied was written between October 18 and November 23 1932, just before the Nazi takeover. It reads in the breathless, immediate manner in which it was clearly conceived. It also gives a personal insight into the zeitgeist of the final months of the Weimar Republic.
Haffner was born Raimund Pretzel in Berlin, where he trained as a lawyer. He disagreed with the Nazi regime and emigrated to London in 1938. There, in order to protect his family in Germany from potential Nazi retribution he changed his name.
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It is estimated that around 80,000 German-speaking refugees from Nazism lived in the UK by September 1939. Most of these refugees were Jewish, but there was also a sizeable number who, like Haffner, had fled for political reasons. Many politically committed exiles arrived soon after 1933 but this was not the case for Haffner. In the 1930s he was busy being a young man in Berlin, training as a lawyer and enjoying himself.
Haffner’s father was an educationalist who had a library with 10,000 volumes. As a young man Haffner liked reading, and toyed with the idea of becoming a writer and journalist, but his father advised him to study law and aim for a career in the civil service. Political developments in Germany made this option increasingly unpalatable. Initially Haffner found it difficult to see a way out. As he wrote in Defying Hitler: “Daily life […] made it difficult to see the situation clearly.”
In the book he also describes how he and other Germans acquiesced to the new regime. Haffner was disgusted with his own reaction to the SA (the Nazi party’s private army) entering the library of the court building where he was a pupil, asking those present whether they were Aryan and throwing out Jewish members of the court.
When questioned by an SA man, Haffner replied that he was indeed Aryan and felt immediately ashamed: “A moment too late I felt the shame, the defeat. I had said, ‘Yes’. […] What a humiliation to have answered the unjustified question whether I was Aryan so easily, even if the fact was of no importance to me.” Haffner never really took up his career as a lawyer, because it would have meant upholding Nazi laws and Nazi justice. Instead he started working as a journalist and writer, first in Germany and after his escape in 1938 in the UK.
Life in the UK
Soon after his arrival in the UK, Haffner finished a book titled Defying Hitler (1939). The memoir was both autobiographical and a political history of the period – but after the outbreak of the second world war it was considered not polemical enough, and was dismissed as an unsuitable explanation for the rise of Nazism at the time. But the intermingling of private and public history is of great interest to readers in the 21st century. Defying Hitler was published posthumously in German (2000) and in English (2003) and became a bestseller in both languages.
After Defying Hitler, Haffner turned to writing another book, Germany: Jekyll and Hyde (1940). It was more clearly anti-Nazi and focused on his journalism – during the war, he worked for the Foreign Office on anti-Nazi propaganda and he was later employed by The Observer as a political journalist. The book was a success, and Winston Churchill is said to have told his cabinet to read it.
The handwritten manuscript for Abschied, which was never published in Haffner’s lifetime, was found in a drawer by his son Oliver Pretzel, some time after his father’s death.
The German critic Volker Weidemann who wrote the epilogue to Parting toys with the idea that it was never published because its focus on the love story was considered a bit too trivial for such a great writer. Thanks to his work for The Observer after 1941, Haffner was a well-regarded political journalist and historical biographer. He became the paper’s German correspondent in 1954, and was well known for his column in West Germany’s Stern magazine and for his biographies, including one on Churchill (1967).
The perspective of a young non-Jewish German living a relatively ordinary life in the early 1930s makes Abschied a fascinating read. Academics have been exploring everyday life under Nazi rule for nearly half a century now, but it seems that modern readers are still keen to learn about it today.
Perhaps the novel resonates with so many German readers because we live in a time where many struggle with the inevitable continuation of everyday life while politics is becoming ever more extraordinary.
Andrea Hammel does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Across much of Europe, the engines of economic growth are sputtering. In its latest global outlook, the International Monetary Fund (IMF) sharply downgraded its forecasts for the UK and Europe, warning that the continent faces persistent economic bumps in the road.
Globally, the World Bank recently said this decade is likely to be the weakest for growth since the 1960s. “Outside of Asia, the developing world is becoming a development-free zone,” the bank’s chief economist warned.
The UK economy went into reverse in April 2025, shrinking by 0.3%. The announcement came a day after the UK chancellor, Rachel Reeves, delivered her spending review to the House of Commons with a speech that mentioned the word “growth” nine times – including promising “a Growth Mission Fund to expedite local projects that are important for growth”:
I said that we wanted growth in all parts of Britain – and, Mr Speaker, I meant it.
Across Europe, a long-term economic forecast to 2040 predicted annual growth of just 0.9% over the next 15 years – down from 1.3% in the decade before COVID. And this forecast was in December 2024, before Donald Trump’s aggressive tariff policies had reignited trade tensions between the US and Europe (and pretty much everywhere else in the world).
Even before Trump’s tariffs, the reality was clear to many economic experts. “Europe’s tragedy”, as one columnist put it, is that it is “deeply uncompetitive, with poor productivity, lagging in technology and AI, and suffering from regulatory overload”. In his 2024 report on European (un)competitiveness, Mario Draghi – former president of the European Central Bank (and then, briefly, Italy’s prime minister) – warned that without radical policy overhauls and investment, Europe faces “a slow agony” of relative decline.
To date, the typical response of electorates has been to blame the policymakers and replace their governments at the first opportunity. Meanwhile, politicians of all shades whisper sweet nothings about how they alone know how to find new sources of growth – most commonly, from the magic AI tree. Because growth, with its widely accepted power to deliver greater productivity and prosperity, remains a key pillar in European politics, upheld by all parties as the benchmark of credibility, progress and control.
But what if the sobering truth is that growth is no longer reliably attainable – across Europe at least? Not just this year or this decade but, in any meaningful sense, ever?
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For a continent like Europe – with limited land and no more empires to exploit, ageing populations, major climate concerns and electorates demanding ever-stricter barriers to immigration – the conditions that once underpinned steady economic expansion may no longer exist. And in the UK more than most European countries, these issues are compounded by high levels of long-term sickness, early retirement and economic inactivity among working-age adults.
As the European Parliament suggested back in 2023, the time may be coming when we are forced to look “beyond growth” – not because we want to, but because there is no other realistic option for many European nations.
But will the public ever accept this new reality? As an expert in how public policy can be used to transform economies and societies, my question is not whether a world without growth is morally superior or more sustainable (though it may be both). Rather, I’m exploring if it’s ever possible for political parties to be honest about a “post-growth world” and still get elected – or will voters simply turn to the next leader who promises they know the secret of perpetual growth, however sketchy the evidence?
To understand why Europe in particular is having such a hard time generating economic growth, first we need to understand what drives it – and why some countries are better placed than others in terms of productivity (the ability to keep their economy growing).
Economists have a relatively straightforward answer. At its core, growth comes from two factors: labour and capital (machinery, technology and the like). So, for your economy to grow, you either need more people working (to make more stuff), or the same amount of workers need to become more productive – by using better machines, tools and technologies.
Historically, population growth has gone hand-in-hand with economic expansion. In the postwar years, countries such as France, Germany and the UK experienced booming birth rates and major waves of immigration. That expanding labour force fuelled industrial production, consumer demand and economic growth.
Why does economic growth matter? Video: Bank of England.
Ageing populations not only reduce the size of the active labour force, they place more pressure on health and other public services, as well as pension systems. Some regions have attempted to compensate with more liberal migration policies, but public resistance to immigration is strong – reflected in increased support for rightwing and populist parties that advocate for stricter immigration controls.
While the UK’s median age is now over 40, it has a birthrate advantage over countries such as Germany and Italy, thanks largely to the influx of immigrants from its former colonies in the second half of the 20th century. But whether this translates into meaningful and sustainable growth depends heavily on labour market participation and the quality of investment – particularly in productivity-enhancing sectors like green technology, infrastructure and education – all of which remain uncertain.
If Europe can’t rely on more workers, then to achieve growth, its existing workers must become more productive. And here, we arrive at the second half of the equation: capital. The usual hope is that investments in new technologies – particularly AI as it drives a new wave of automation – will make up the difference.
In January, the UK’s prime minister, Keir Starmer, called AI “the defining opportunity of our generation” while announcing he had agreed to take forward all 50 recommendations set out in an independent AI action plan. Not to be outdone, the European Commission unveiled its AI continent action plan in April.
Keir Starmer announces the UK’s AI action plan. Video: BBC.
Despite the EU’s concerted efforts to enhance its digital competitiveness, a 2024 McKinsey report found that US corporations invested around €700 billion more in capital expenditure and R&D, in 2022 alone than their European counterparts, underscoring the continent’s investment gap. And where AI is adopted, it tends to concentrate gains in a few superstar companies or cities.
In fact, this disconnect between firm-level innovation and national growth is one of the defining features of the current era. Tech clusters in cities like Paris, Amsterdam and Stockholm may generate unicorn startups and record-breaking valuations, but they’re not enough to move the needle on GDP growth across Europe as a whole. The gains are often too narrow, the spillovers too weak and the social returns too uneven.
Yet admitting this publicly remains politically taboo. Can any European leader look their citizens in the eye and say: “We’re living in a post-growth world”? Or rather, can they say it and still hope to win another election?
The human need for growth
To be human is to grow – physically, psychologically, financially; in the richness of our relationships, imagination and ambitions. Few people would be happy with the prospect of being consigned to do the same job for the same money for the rest of their lives – as the collapse of the Soviet Union demonstrated. Which makes the prospect of selling a post-growth future to people sound almost inhuman.
Even those who care little about money and success usually strive to create better futures for themselves, their families and communities. When that sense of opportunity and forward motion is absent or frustrated, it can lead to malaise, disillusionment and in extreme cases, despair.
The health consequences of long-term economic decline are increasingly described as “diseases of despair” – rising rates of suicide, substance abuse and alcohol-related deaths concentrated in struggling communities. Recessions reliably fuel psychological distress and demand for mental healthcare, as seen during the eurozone crisis when Greece experienced surging levels of depression and declining self-rated health, particularly among the unemployed – with job loss, insecurity and austerity all contributing to emotional suffering and social fragmentation.
These trends don’t just affect the vulnerable; even those who appear relatively secure often experience “anticipatory anxiety” – a persistent fear of losing their foothold and slipping into instability. In communities, both rural and urban, that are wrestling with long-term decline, “left-behind” residents often describe a deep sense of abandonment by governments and society more generally – prompting calls for recovery strategies that address despair not merely as a mental health issue, but as a wider economic and social condition.
The belief in opportunity and upward mobility – long embodied in US culture by “the American dream” – has historically served as a powerful psychological buffer, fostering resilience and purpose even amid systemic barriers. However, as inequality widens and while career opportunities for many appear to narrow, research shows the gap between aspiration and reality can lead to disillusionment, chronic stress and increased psychological distress – particularly among marginalised groups. These feelings are only intensified in the age of social media, where constant exposure to curated success stories fuels social comparison and deepens the sense of falling behind.
For younger people in the UK and many parts of Europe, the fact that so much capital is tied up in housing means opportunity depends less on effort or merit and more on whether their parents own property – meaning they could pass some of its value down to their children.
‘Deaths of Despair and the Future of Capitalism’, a discussion hosted by LSE Online.
Stagnation also manifests in more subtle but no less damaging ways. Take infrastructure. In many countries, the true cost of flatlining growth has been absorbed not through dramatic collapse but quiet decay.
Across the UK, more than 1.5 million children are learning in crumbling school buildings, with some forced into makeshift classrooms for years after being evacuated due to safety concerns. In healthcare, the total NHS repair backlog has reached £13.8 billion, leading to hundreds of critical incidents – from leaking roofs to collapsing ceilings – and the loss of vital clinical time.
Meanwhile, neglected government buildings across the country are affecting everything from prison safety to courtroom access, with thousands of cases disrupted due to structural failures and fire safety risks. These are not headlines but lived realities – the hidden toll of underinvestment, quietly hollowing out the state behind a veneer of functionality.
Without economic growth, governments face a stark dilemma: to raise revenues through higher taxes, or make further rounds of spending cuts. Either path has deep social and political implications – especially for inequality. The question becomes not just how to balance the books but how to do so fairly – and whether the public might support a post-growth agenda framed explicitly around reducing inequality, even if it also means paying more taxes.
In fact, public attitudes suggest there is already widespread support for reducing inequality. According to the Equality Trust, 76% of UK adults agree that large wealth gaps give some people too much political power.
Research by the Sutton Trust finds younger people especially attuned to these disparities: only 21% of 18 to 24-year-olds believe everyone has the same chance to succeed and 57% say it’s harder for their generation to get ahead. Most believe that coming from a wealthy family (75%) and knowing the right people (84%) are key to getting on in life.
In a post-growth world, higher taxes would not only mean wealthier individuals and corporations contributing a relatively greater share, but the wider public shifting consumption patterns, spending less on private goods and more collectively through the state. But the recent example of France shows how challenging this tightope is to walk.
In September 2024, its former prime minister, Michel Barnier, signalled plans for targeted tax increases on the wealthy, arguing these were essential to stabilise the country’s strained public finances. While politically sensitive, his proposals for tax increases on wealthy individuals and large firms initially passed without widespread public unrest or protests.
However, his broader austerity package – encompassing €40 billion (£34.5 billion) in spending cuts alongside €20 billion in tax hikes – drew vocal opposition from both left‑wing lawmakers and the far right, and contributed to parliament toppling his minority government in December 2024.
Such measures surely mark the early signs of a deeper financial reckoning that post-growth realities will force into the open: how to sustain public services when traditional assumptions about economic expansion can no longer be relied upon.
For the traditional parties, the political heat is on. Regions most left behind by structural economic shifts are increasingly drawn to populist and anti-establishment movements. Electoral outcomes have shown a significant shift, with far-right parties such as France’s National Rally and Germany’s Alternative for Germany (AfD) making substantial gains in the 2024 European parliament elections, reflecting a broader trend of rising support for populist and anti-establishment parties across the continent.
Voters are expressing growing dissatisfaction not only with the economy, but democracy itself. This sentiment has manifested through declining trust in political institutions, as evidenced by a Forsa survey in Germany where only 16% of respondents expressed confidence in their government and 54% indicated they didn’t trust any party to solve the country’s problems.
This brings us to the central dilemma: can any European politician successfully lead a national conversation which admits the economic assumptions of the past no longer hold? Or is attempting such honesty in politics inevitably a path to self-destruction, no matter how urgently the conversation is needed?
Facing up to a new economic reality
For much of the postwar era, economic life in advanced democracies has rested on a set of familiar expectations: that hard work would translate into rising incomes, that home ownership would be broadly attainable and that each generation would surpass the prosperity of the one before it.
However, a growing body of evidence suggests these pillars of economic life are eroding. Younger generations are already struggling to match their parents’ earnings, with lower rates of home ownership and greater financial precarity becoming the norm in many parts of Europe.
Incomes for millennials and generation Z have largely stagnated relative to previous cohorts, even as their living costs – particularly for housing, education and healthcare – have risen sharply. Rates of intergenerational income mobility have slowed significantly across much of Europe and North America since the 1970s. Many young people now face the prospect not just of static living standards, but of downward mobility.
Effectively communicating the realities of a post-growth economy – including the need to account for future generations’ growing sense of alienation and declining faith in democracy – requires more than just sound policy. It demands a serious political effort to reframe expectations and rebuild trust.
History shows this is sometimes possible. When the National Health Service was founded in 1948, the UK government faced fierce resistance from parts of the medical profession and concerns among the public about cost and state control. Yet Clement Attlee’s Labour government persisted, linking the creation of the NHS to the shared sacrifices of the war and a compelling moral vision of universal care.
While taxes did rise to fund the service, the promise of a fairer, healthier society helped secure enduring public support – but admittedly, in the wake of the massive shock to the system that was the second world war.
In 1946, Prime Minister Clement Attlee asked the UK public to help ‘renew Britain’. Video: British Pathé.
Psychological research offers further insight into how such messages can be received. People are more receptive to change when it is framed not as loss but as contribution – to fairness, to community, to shared resilience. This underlines why the immediate postwar period was such a politically fruitful time to launch the NHS. The COVID pandemic briefly offered a sense of unifying purpose and the chance to rethink the status quo – but that window quickly closed, leaving most of the old structures intact and largely unquestioned.
A society’s ability to flourish without meaningful national growth – and its citizens’ capacity to remain content or even hopeful in the absence of economic expansion – ultimately depends on whether any political party can credibly redefine success without relying on promises of ever-increasing wealth and prosperity. And instead, offer a plausible narrative about ways to satisfy our very human needs for personal development and social enrichment in this new economic reality.
The challenge will be not only to find new economic models, but to build new sources of collective meaning. This moment demands not just economic adaptation but a political and cultural reckoning.
If the idea of building this new consensus seems overly optimistic, studies of the “spiral of silence” suggest that people often underestimate how widely their views are shared. A recent report on climate action found that while most people supported stronger green policies, they wrongly assumed they were in the minority. Making shared values visible – and naming them – can be key to unlocking political momentum.
So far, no mainstream European party has dared articulate a vision of prosperity that doesn’t rely on reviving growth. But with democratic trust eroding, authoritarian populism on the rise and the climate crisis accelerating, now may be the moment to begin that long-overdue conversation – if anyone is willing to listen.
Welcome to Europe’s first ‘post-growth’ nation
I’m imagining a European country in a decade’s time. One that no longer positions itself as a global tech powerhouse or financial centre, but the first major country to declare itself a “post-growth nation”.
This shift didn’t come from idealism or ecological fervour, but from the hard reality that after years of economic stagnation, demographic change and mounting environmental stress, the pursuit of economic growth no longer offered a credible path forward.
What followed wasn’t a revolution, but a reckoning – a response to political chaos, collapsing public services and widening inequality that sparked a broad coalition of younger voters, climate activists, disillusioned centrists and exhausted frontline workers to rally around a new, pragmatic vision for the future.
At the heart of this movement was a shift in language and priorities, as the government moved away from promises of endless economic expansion and instead committed to wellbeing, resilience and equality – aligning itself with a growing international conversation about moving beyond GDP, already gaining traction in European policy circles and initiatives such as the EU-funded “post-growth deal”.
But this transformation was also the result of years of political drift and public disillusionment, ultimately catalysed by electoral reform that broke the two-party hold and enabled a new alliance, shaped by grassroots organisers, policy innovators and a generation ready to reimagine what national success could mean.
Taxes were higher, particularly on land, wealth and carbon. But in return, public services were transformed. Healthcare, education, transport, broadband and energy were guaranteed as universal rights, not privatised commodities. Work changed: the standard week was shortened to 30 hours and the state incentivised jobs in care, education, maintenance and ecological restoration. People had less disposable income – but fewer costs, too.
Consumption patterns shifted. Hyper-consumption declined. Repair shops and sharing platforms flourished. The housing market was restructured around long-term security rather than speculative returns. A large-scale public housing programme replaced buy-to-let investment as the dominant model. Wealth inequality narrowed and cities began to densify as car use fell and public space was reclaimed.
For the younger generation, post-growth life was less about climbing the income ladder and more about stability, time and relationships. For older generations, there were guarantees: pensions remained, care systems were rebuilt and housing protections were strengthened. A new sense of intergenerational reciprocity emerged – not perfectly, but more visibly than before.
Politically, the transition had its risks. There was backlash – some of the wealthy left. But many stayed. And over time, the narrative shifted. This European country began to be seen not as a laggard but as a laboratory for 21st-century governance – a place where ecological realism and social solidarity shaped policy, not just quarterly targets.
The transition was uneven and not without pain. Jobs were lost in sectors no longer considered sustainable. Supply chains were restructured. International competitiveness suffered in some areas. But the political narrative – carefully crafted and widely debated – made the case that resilience and equity were more important than temporary growth.
While some countries mocked it, others quietly began to study it. Some cities – especially in the Nordics, Iberia and Benelux – followed suit, drawing from the growing body of research on post-growth urban planning and non-GDP-based prosperity metrics.
This was not a retreat from ambition but a redefinition of it. The shift was rooted in a growing body of academic and policy work arguing that a planned, democratic transition away from growth-centric models is not only compatible with social progress but essential to preventing environmental and societal collapse.
The country’s post-growth transition helped it sidestep deeper political fragmentation by replacing austerity with heavy investment in community resilience, care infrastructure and participatory democracy – from local budgeting to citizen-led planning. A new civic culture took root: slower and more deliberative but less polarised, as politics shifted from abstract promises of growth to open debates about real-world trade-offs.
Internationally, the country traded some geopolitical power for moral authority, focusing less on economic competition and more on global cooperation around climate, tax justice and digital governance – earning new relevance among smaller nations pursuing their own post-growth paths.
So is this all just a social and economic fantasy? Arguably, the real fantasy is believing that countries in Europe – and the parties that compete to run them – can continue with their current insistence on “growth at all costs” (whether or not they actually believe it).
The alternative – embracing a post-growth reality – would offer the world something we haven’t seen in a long time: honesty in politics, a commitment to reducing inequality and a belief that a fairer, more sustainable future is still possible. Not because it was easy, but because it was the only option left.
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Peter Bloom does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. His latest book is Capitalism Reloaded: The Rise of the Authoritarian-Financial Complex (Bristol University Press).
BNP PARIBAS ADAPTS ITS GOVERNANCEAHEAD OF ITS FUTURE STRATEGIC PLAN
PRESS RELEASE
Paris, 7th July 2025
As the European leader in investment banking, corporate financing and the management of long-term savings, BNP Paribas has all the necessary expertise, industrial and technological platforms and strong client franchises to launch a new stage of development.
In this context, BNP Paribas is adapting its governance in order to strengthen its integrated model and the cross-functionality between its businesses in the perspective of its future strategic plan.
The Group will be perfectly positioned to seize the opportunity of the Savings and Investment Union (SIU), as well as technological transformations, most notably artificial intelligence.
As a result, CPBS (the Commercial, Personal Banking & Services division of BNP Paribas) is creating a new unit within its organisation encompassing the Commercial & Personal Banking businesses in the euro zone, including Commercial & Personal Banking in France (CPBF), BNL banca commerciale in Italy, BNP Paribas Fortis (CPBB) in Belgium and BGL BNP Paribas (CPBL) in Luxembourg.
Yannick Jung, current Head of CIB Global Banking, will lead this new unit. Appointed Deputy Chief Operating Officer of the Group, he will report to Thierry Laborde, Group Chief Operating Officer in charge of CPBS.
This new unit will accelerate mutualised investments, industrialisation and technological assets to enhance the quality of customer experience. It will accelerate cross-selling with CIB and IPS businesses, as well as the distribution of CPBS-originated assets.
By uniting the Group’s Commercial & Personal banking and several specialised businesses, CPBS is consolidating leading positions in Europe both for its Corporate and Private franchises and for its specialised businesses. As the leader in financing for European SMEs and mid-caps, in particular innovative companies, and the leader of private banking in Europe, CPBS supports the European economy and its customers in managing their financial savings.
Furthermore, Corporate & Institutional Banking (CIB) is adapting its governance, which will now consist of an Executive Chairman and a Chief Executive Officer. Consequently, Yann Gérardin, Group Chief Operating Officer will also become Executive Chairman of CIB. Reporting to Yann Gérardin, Olivier Osty, current Head of CIB Global Markets, will become Deputy Chief Operating Officer of the Group and Chief Executive Officer of CIB.
Going forward, the CIB organisation will now consist of two Coverage activities (Institutional coverage & Corporate coverage, including sectors and advisory), 5 Business Lines – Transaction Banking, Capital Markets, Equities,Fixed Income Currencies and Commodities (FICC), Securities Services –, and 3 geographies EMEA*, APAC and Americas, whose managers will report directly to the Chief Executive Officer of CIB, Olivier Osty.
Over the past ten years, with an exceptional track record, CIB has doubled its revenues to become the n°1 European CIB. CIB is now a leading European bank for the largest global institutional and corporate clients. Benefiting from the power of the Group’s integrated model, this success is the result of investment and deployment of cutting-edge platforms at the service of clients, as well as the execution of an effective “Originate & Distribute” strategy making the bridge between institutional and corporate clients, which will be at the heart of financing the European economy in coming years.
Lastly, the Investment & Protection Services (IPS) division, under the responsibility of Renaud Dumora, Deputy Chief Operating Officer of BNP Paribas, will continue to accelerate its development. Following transformative external growth operations, primarily the acquisition of AXA IM which will create the European leader in long-term savings management, as well as in life insurance in France and Italy, and wealth management in Germany, IPS will have a unique range of products and services. The division will benefit from an increasingly broad and privileged access to individual, corporate and institutional clients, in close collaboration with CIB and CPBS. IPS will also continue to deploy powerful platforms for its businesses, strengthening its capacity to meet client needs and grow the business. This new dynamic will enable IPS to boost its contribution to pre-tax income by more than half, targeting it at more than 20% of Group’s pre-tax income.
These appointments will take place from 1st September 2025.
“Thesechanges and appointments represent a major step in preparing BNP Paribas for the next phase of its growth. They aim at consolidating the Group’s integrated model by accelerating the market share growth of our CIB based on its “Originate & Distribute” approach, strengthening the cross-functionality of our commercial banks in the eurozone and preparing their future by focusing in particular on common technological investments. With the acquisition of AXA IM, one of our largest external growth moves, we are consolidating the Group’s asset management businesses and accelerating the development of our IPS division in line with its insurance and wealth management businesses” announced Jean-Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas
*EMEA CIB Countries
About BNP Paribas Leader in banking and financial services in Europe, BNP Paribas operates in 64 countries and has nearly 178,000 employees, including more than 144,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Türkiye, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.
BNP PARIBAS ADAPTS ITS GOVERNANCEAHEAD OF ITS FUTURE STRATEGIC PLAN
PRESS RELEASE
Paris, 7th July 2025
As the European leader in investment banking, corporate financing and the management of long-term savings, BNP Paribas has all the necessary expertise, industrial and technological platforms and strong client franchises to launch a new stage of development.
In this context, BNP Paribas is adapting its governance in order to strengthen its integrated model and the cross-functionality between its businesses in the perspective of its future strategic plan.
The Group will be perfectly positioned to seize the opportunity of the Savings and Investment Union (SIU), as well as technological transformations, most notably artificial intelligence.
As a result, CPBS (the Commercial, Personal Banking & Services division of BNP Paribas) is creating a new unit within its organisation encompassing the Commercial & Personal Banking businesses in the euro zone, including Commercial & Personal Banking in France (CPBF), BNL banca commerciale in Italy, BNP Paribas Fortis (CPBB) in Belgium and BGL BNP Paribas (CPBL) in Luxembourg.
Yannick Jung, current Head of CIB Global Banking, will lead this new unit. Appointed Deputy Chief Operating Officer of the Group, he will report to Thierry Laborde, Group Chief Operating Officer in charge of CPBS.
This new unit will accelerate mutualised investments, industrialisation and technological assets to enhance the quality of customer experience. It will accelerate cross-selling with CIB and IPS businesses, as well as the distribution of CPBS-originated assets.
By uniting the Group’s Commercial & Personal banking and several specialised businesses, CPBS is consolidating leading positions in Europe both for its Corporate and Private franchises and for its specialised businesses. As the leader in financing for European SMEs and mid-caps, in particular innovative companies, and the leader of private banking in Europe, CPBS supports the European economy and its customers in managing their financial savings.
Furthermore, Corporate & Institutional Banking (CIB) is adapting its governance, which will now consist of an Executive Chairman and a Chief Executive Officer. Consequently, Yann Gérardin, Group Chief Operating Officer will also become Executive Chairman of CIB. Reporting to Yann Gérardin, Olivier Osty, current Head of CIB Global Markets, will become Deputy Chief Operating Officer of the Group and Chief Executive Officer of CIB.
Going forward, the CIB organisation will now consist of two Coverage activities (Institutional coverage & Corporate coverage, including sectors and advisory), 5 Business Lines – Transaction Banking, Capital Markets, Equities,Fixed Income Currencies and Commodities (FICC), Securities Services –, and 3 geographies EMEA*, APAC and Americas, whose managers will report directly to the Chief Executive Officer of CIB, Olivier Osty.
Over the past ten years, with an exceptional track record, CIB has doubled its revenues to become the n°1 European CIB. CIB is now a leading European bank for the largest global institutional and corporate clients. Benefiting from the power of the Group’s integrated model, this success is the result of investment and deployment of cutting-edge platforms at the service of clients, as well as the execution of an effective “Originate & Distribute” strategy making the bridge between institutional and corporate clients, which will be at the heart of financing the European economy in coming years.
Lastly, the Investment & Protection Services (IPS) division, under the responsibility of Renaud Dumora, Deputy Chief Operating Officer of BNP Paribas, will continue to accelerate its development. Following transformative external growth operations, primarily the acquisition of AXA IM which will create the European leader in long-term savings management, as well as in life insurance in France and Italy, and wealth management in Germany, IPS will have a unique range of products and services. The division will benefit from an increasingly broad and privileged access to individual, corporate and institutional clients, in close collaboration with CIB and CPBS. IPS will also continue to deploy powerful platforms for its businesses, strengthening its capacity to meet client needs and grow the business. This new dynamic will enable IPS to boost its contribution to pre-tax income by more than half, targeting it at more than 20% of Group’s pre-tax income.
These appointments will take place from 1st September 2025.
“Thesechanges and appointments represent a major step in preparing BNP Paribas for the next phase of its growth. They aim at consolidating the Group’s integrated model by accelerating the market share growth of our CIB based on its “Originate & Distribute” approach, strengthening the cross-functionality of our commercial banks in the eurozone and preparing their future by focusing in particular on common technological investments. With the acquisition of AXA IM, one of our largest external growth moves, we are consolidating the Group’s asset management businesses and accelerating the development of our IPS division in line with its insurance and wealth management businesses” announced Jean-Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas
*EMEA CIB Countries
About BNP Paribas Leader in banking and financial services in Europe, BNP Paribas operates in 64 countries and has nearly 178,000 employees, including more than 144,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Türkiye, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.
Sidetrade,the global leader in AI-powered Order-to-Cash applications,today celebrates 20 remarkable years as a listed company. Founded in Paris, France, the company has become a global leader in Order-to-Cash and has multiplied its market valuation twentyfold since its IPO on July 7, 2005.
On July 7, 2025, in a moment filled with pride and emotion, Sidetrade’s Founder and CEO, Olivier Novasque, visited the Euronext Paris headquarters alongside some of the company’s historic figures to mark two decades of public listing. The traditional market opening bell ceremony highlighted two decades of uninterrupted growth and bold entrepreneurship that have established Sidetrade as a world leader in the Order-to-Cash space. Twenty years after its IPO, Sidetrade stands as a unique French tech success story, built on a foundation of performance, innovation, resilience, and independence.
A founding vision: leveraging technology to power business cash flow When Olivier Novasque founded Sidetrade in 2000, his goal was to build a valuable, agile company ahead of its time. He foresaw the need to reinvent the financial relationship between customers and suppliers, moving away from a purely administrative model toward one driven by performance. Based on this vision, he laid the foundation for a technology platform designed to deeply transform cash flow generation. Going against the prevailing standards of the time, he rejected the dominant on-premises model and bet on SaaS from the very beginning, an audacious move that proved visionary.
A former finance executive turned entrepreneur, Novasque made the rare choice to raise only essential funds. Instead, he prioritized self-financed growth, aiming to build a high-quality, industrial-grade, tech-driven business.
“I believe the best companies aren’t necessarily those that raise the most money, but those that work tirelessly to execute their vision with rigor, creativity, and resilience,” said Olivier Novasque, CEO and founder at Sidetrade. “Today, I want to honor everyone, past and present, who has contributed to Sidetrade’s journey. I’m proud to be surrounded by an executive team united by a spirit of ambition, innovation, and excellence. Together, with all Sidetraders, we are ushering Order-to-Cash into the age of the Agentic Revolution.”
For years, tech company success was often measured by the size of their fundraising rounds rather than their ability to sustain a viable business model. Sidetrade took a different route, rooting its growth in self-financing. Aside from €2million raised pre-IPO and a €4.5million capital increase at IPO, Sidetrade has never resorted to public fundraising or shareholder dilution.
As of today, the company holds nearly €50million in cash and treasury shares. This performance is the result of a sustained growth strategy and over a decade of investment in artificial intelligence, funded entirely by the company’s ability to generate cash year after year. In 2024, the company delivered a standout performance:
Revenue growth of +26% (+16% on a comparable basis)
Operating margin of 15%
Net income of €7.9 million
Free cash flow of €8.7 million
This financial discipline has in no way compromised shareholder value creation. Listed at €12.50 in 2005, Sidetrade’s share price has increased twentyfold, reaching €249 as of July 4, 2025. This represents a stock market performance of over +1,800%, more than 11 times that of the CAC Mid & Small index, which rose by +164% over the same period.
A recognized technology leader
Innovation is part of Sidetrade’s DNA. In 2025, the company’s innovation capabilities were recognized by some of the most respected rankings in the sector:
Named a Leader in Gartner® Magic Quadrant™ for the third consecutive year
Identified by IDC as a key player in financial automation
Ranked among Europe’s 150 Most Innovative Companies by Fortune
These accolades highlight the uniqueness of Sidetrade’s technology foundation, which includes a cloud-native architecture, proprietary action-oriented AI, and a one-of-a-kind payment behavior Data Lake, enriched with over $7.2 trillion in intercompany transactions.
From its humble beginnings in a Paris office to a global presence, Sidetrade has followed a trajectory of organic growth reinforced by nine acquisitions. The company has rigorously executed its model while expanding geographically across Germany, the UK, Ireland, the US, Canada, and of course, France. Today, with 65% of revenue generated outside France, Sidetrade supports major enterprises in 85 countries as a partner in their financial transformation.
Sidetrade’s inclusion in the Euronext Tech Leaders index in June 2025 marks more than institutional recognition; it affirms the rise of a European tech champion capable of combining breakthrough innovation with profitable growth to power the next generation of enterprise finance.
“Congratulations to Sidetrade on 20 years of public listing on Euronext,” said Delphine d’Amarzit, Euronext Paris Chairwoman and CEO. “Sidetrade’s remarkable stock market journey is a testament to its sustained growth and demonstrates the power of Euronext to help local SMEs become global mid-cap players while preserving their independence. It perfectly embodies the synergy between entrepreneurial ambition and the excellence of European capital markets, recently underscored by Sidetrade’s entry into the Euronext Tech Leaders index.”
Sidetrade’s unique trajectory, combining technological innovation, financial performance, and capital discipline, is now catching the attention of American institutional investors. “Sidetrade’s stock performance reflects a remarkable growth journey and a robust business model built on high revenue recurrence, operational excellence, and cash generation,” said Jean-Pierre Tabart, Senior Analyst at TP ICAP Midcap. “Above all, we believe the group still holds significant upside potential. Beyond the strength and durability of its fundamentals, a substantial valuation gap remains compared to North American SaaS players. Moreover, the current share price does not reflect the stock’s strategic value, driven by its scarcity—there are very few opportunities in the European market to gain exposure to a true SaaS company—and by Sidetrade’s lead in artificial intelligence, which is expected to further reinforce its technological leadership in the Order-to-Cash space.”
Sidetrade is one of the few long-term success stories on the Euronext stock market. With a robust and exportable model, the company has established itself as a global leader with solutions deployed across multinational companies. This trajectory, built with discipline and vision, is now entering a new chapter: one of AI-augmented finance, where more intelligent, more autonomous, and entirely focused on the AI agent revolution.
Next financial announcement First Half Year Revenue for 2025: July 16, 2025 (after the stock market closes)
About Sidetrade(www.sidetrade.com) Sidetrade (Euronext Growth: ALBFR.PA) provides a SaaS platform designed to revolutionize how cash flow is secured and accelerated. Leveraging its new-generation agentic AI, nicknamed Aimie, Sidetrade analyzes $7.2 trillion worth of B2B payment transactions daily in its Cloud, thereby anticipating customer payment behavior and the attrition risk of 40 million buyers worldwide. Sidetrade has a global reach, with 400+ talented employees based in Europe, the United States, and Canada, serving global businesses in more than 85 countries. Among them: AGFA, BMW Financial Services, Bunzl, DXC, Engie, Inmarsat, KPMG, Lafarge, Manpower, Morningstar, Page, Randstad, Safran, Saint-Gobain, Securitas, Siemens, UGI, Veolia. For further information, visit us at www.sidetrade.com and follow @Sidetrade on LinkedIn.
Euronext is the leading European capital market infrastructure, covering the entire capital markets value chain, from listing, trading, clearing, settlement and custody, to solutions for issuers and investors. Euronext runs MTS, one of Europe’s leading electronic fixed income trading markets, and Nord Pool, the European power market. Euronext also provides clearing and settlement services through Euronext Clearing and its Euronext Securities CSDs in Denmark, Italy, Norway, and Portugal. As of March 2025, Euronext’s regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway, and Portugal host nearly 1,800 listed issuers with around €6.3 trillion in market capitalisation, a strong blue-chip franchise and the largest global centre for debt and fund listings. With a diverse domestic and international client base, Euronext handles 25% of European lit equity trading. Its products include equities, FX, ETFs, bonds, derivatives, commodities and indices. For the latest news, follow us on X (x.com/euronext) and LinkedIn (linkedin.com/company/euronext). In the event of any discrepancy between the French and English versions of this press release, only the English version is to be taken into account.
Source: United Nations General Assembly and Security Council
Seventy-ninth Session
83rd Meeting* (AM)
The General Assembly will hold a debate on the situation in Afghanistan and on the Secretary-General’s latest report on the country (document A/79/947). The report provides an update on the activities of the United Nations in Afghanistan, including political, humanitarian and human rights efforts. The 193-member organ will also take action on the related draft resolution (document A/79/L.100) introduced by Germany.
Source: The Conversation – Global Perspectives – By Jorge Heine, Outgoing Interim Director of the Frederick S. Pardee Center for the Study of the Longer-Range Future, Boston University
Brazil President Luiz Inacio Lula da Silva, center, flanked by India Prime Minister Narendra Modi, left, and South Africa President Cyril Ramaphosa, speaks at the summit of Group of 20 leading economies in Rio de Janeiro on Nov. 19, 2024.Mauro Pimentel/AFP via Getty Images
In 2020, as Latin American countries were contending with the triple challenges of the COVID-19 pandemic, a global economic shock and U.S. policy under the first Trump administration, Jorge Heine, research professor at Boston University and a former Chilean ambassador, in association with two colleagues, Carlos Fortin and Carlos Ominami, put forward the notion of “active nonalignment.”
Five years on, the foreign policy approach is more relevant than ever, with trends including the rise of the Global South and the fragmentation of the global order, encouraging countries around the world to reassess their relationships with both the United States and China.
It led Heine, along with Fortin and Ominami, to follow up on their original arguments in a new book, “The Non-Aligned World,” published in June 2025.
The Conversation spoke with Heine on what is behind the push toward active nonalignment, and where it may lead.
For those not familiar, what is active nonalignment?
Active nonalignment is a foreign policy approach in which countries put their own interests front and center and refuse to take sides in the great power rivalry between the U.S. and China.
It takes its cue from the Non-Aligned Movement of the 1950s and 1960s but updates it to the realities of the 21st century. Today’s rising Global South is very different from the “Third World” that made up the Non-Aligned Movement. Countries like India, Turkey, Brazil and Indonesia have greater economic heft and wherewithal. They thus have more options than in the past.
They can pick and choose policies in accordance with what is in their national interests. And because there is competition between Washington and Beijing to win over such countries’ hearts and minds, those looking to promote a nonaligned agenda have greater leverage.
Traditional international relations literature suggests that in relations between nations, you can either “balance,” meaning take a strong position against another power, or “bandwagon” – that is, go along with the wishes of that power. The notion was that weaker states couldn’t balance against the Great Powers because they don’t have the military power to do so, so they had to bandwagon.
What we are saying is that there is an intermediate approach: hedging. Countries can hedge their bets or equivocate by playing one power off the other. So, on some issues you side with the U.S., and others you side with China.
Thus, the grand strategy of active nonalignment is “playing the field,” or in other words, searching for opportunities among what is available in the international environment. This means being constantly on the lookout for potential advantages and available resources – in short, being active, rather than passive or reactive.
So active nonalignment is not so much a movement as it is a doctrine.
Tunisian President Habib Bourguiba, right, and Egyptian President Gamal Abdel Nasser attend the first Conference of Non-Aligned Countries in Belgrade, Yugoslavia, in September 1961. Keystone/Hulton Archive/Getty Images
It’s been five years since you first came up with the idea of active nonalignment. Why did you think it was time to revisit it now?
The notion of active nonalignment came up during the first Trump administration and in the context of a Latin America hit by the triple-whammy of U.S. pressure, a pandemic and the ensuing recession – which in Latin America translated into the biggest economic downturn in 120 years, a 6.6% drop of regional gross domestic product in 2020.
ANA was intended as a guide for Latin American countries to navigate those difficult moments, and it led us to the publication of a symposium volume with contributions by six former Latin American foreign ministers in November 2021, in which we elaborated on the concept.
Three months later, with the Russian invasion of Ukraine and the reaction to it by many countries in Asia and Africa, nonalignment was back with a vengeance.
Countries like India, Pakistan, South Africa and Indonesia, among others, took positions that were at odds with the West on Ukraine. Many of them, though not all, condemned Russian aggression but also wanted no part in the West’s sanctions on Moscow. These sanctions were seen as unwarranted and as an expression of Western double standards – no sanctions were applied on the U.S. for invading Iraq, of course.
And then there were the Hamas attacks on Israel on Oct. 7, 2023, and the resulting war in the Gaza Strip. Countries across the Global South strongly condemned the Hamas attacks, but the West’s response to the subsequent deaths of tens of thousands of Palestinians brought home the notion of double standards when it came to international human rights.
Why weren’t Palestinians deserving of the same compassion as Ukrainians? For many in the Global South, that question hit very hard – the idea that “human rights are limited to Europeans and people who looked like them did not go down well.”
A third development is the expansion of the BRICS bloc of economies from its original five members – Brazil, Russia, India, China and South Africa – to 10 members. Although China and Russia are not members of the Global South, those other founding members are, and the BRICS group has promoted key issues on the Global South’s agenda. The addition of countries such as Egypt and Ethiopia has meant that BRICS has increasingly taken on the guise of the Global South forum. Brazil President Luiz Inácio Lula da Silva, a leading proponent of BRICS, is keen on advancing this Global South agenda.
All three of these developments have made active nonalignment more relevant than ever before.
How are China and the US responding to active nonalignment – or are they?
I’ll give you two examples: Angola and Argentina.
In Angola, the African country that has received most Chinese cooperation to the tune of US$45 billion, you now have the U.S. financing what is known as the Lobito Corridor – a railway line that stretches from the eastern border of the Democratic Republic of the Congo to Angola’s Atlantic coast.
Ten years ago, the notion that the U.S. would be financing railway projects in southern Africa would have been considered unfathomable. Yet it has happened. Why? Because China has built significant railway lines in countries such as Kenya and Ethiopia, and the U.S. realized that it was being left behind.
For the longest time, the U.S. would condemn such Chinese-financed infrastructure projects via the “Belt and Road Initiative” as nothing but “debt-trap diplomacy” designed to saddle developing nations with “white elephants” nobody needed. But a couple of years ago, that tune changed: The U.S. and Europe realized that there is a big infrastructure deficit in Asia, Africa and Latin America that China was stepping in to reduce – and the West was nowhere to be seen in this critical area.
In short, the West changed it approach – and countries like Angola are now able to play the U.S. off against China for its own national interests.
Why? Because Argentina has a very significant foreign debt, and Milei knew that a continued anti-China stance would mean a credit line from Beijing would likely not be renewed. The Argentinian president was under pressure from the International Monetary Fund and Washington to let the credit line with China lapse, but Milei refused to do so and managed to hold his own, playing both sides against the middle.
Milei is a populist conservative; Brazil’s Lula a leftist. So is active nonalignment immune to ideological differences?
Absolutely. When people ask me what the difference is between traditional nonalignment and active nonalignment, one of the most obvious things is that the latter is nonideological – it can be used by people of the right, left and center. It is a guide to action, a compass to navigate the waters of a highly troubled world, and can be used by governments of very different ideological hues.
Brazil President Luiz Inacio Lula da Silva and Argentina President Javier Milei at the 66th Summit of leaders of the Mercosur trading bloc in Buenos Aires on July 3, 2025. Luis Robayo/AFP via Getty Images
The book talks a lot about the fragmentation of the rules-based order. Where do you see this heading?
There is little doubt that the liberal international order that framed world politics from 1945 to 2016 has come to an end. Some of its bedrock principles, like multilateralism, free trade and respect for international law and existing international treaties, have been severely undermined.
We are now in a transitional stage. The notion of the West as a geopolitical entity, as we knew it, has ceased to exist. We now have the extraordinary situation where illiberal forces in Hungary, Germany and Poland, among other places, are being supported by those in power in both Washington and Moscow.
And this decline of the West has not come about because of any economic issue – the U.S. still represents around 25% of global GDP, much as it did in 1970 – but because of the breakdown of the trans-Atlantic alliance.
So we are moving toward a very different type of world order – and one in which the Global South has the opportunity to have much more of a role, especially if it deploys active nonalignment.
How have events since Trump’s inauguration played into your argument?
The pressures on countries across the Global South are very strong, and there is a temptation to give in to Trump and align with U.S. Yet, all indications are that simply giving in to Trump’s demands isn’t a recipe for success. Those countries that have gone down the route of giving in to Trump’s demands only see more demands after that. Countries need a different approach – and that can be found in active nonalignment.
Jorge Heine does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Recent news from Ukraine has generally been bad. Since the end of May, ever larger Russian air strikes have been documented against Ukrainian cities with devastating consequences for civilians, including in the country’s capital, Kyiv.
Amid small and costly but steady gains along the almost 1,000km long frontline, Russia reportedly took full control of the Ukrainian region of Luhansk, part of which it had already occupied before the beginning of its full-scale invasion of Ukraine in February 2022.
And according to Dutch and German intelligence reports, some of Russia’s gains on the battlefield are enabled by the widespread use of chemical weapons.
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It was therefore something of a relief that Nato’s summit in The Hague produced a short joint declaration on June 25 in which Russia was clearly named as a “long-term threat … to Euro-Atlantic security”. Member states restated “their enduring sovereign commitments to provide support to Ukraine”. While the summit declaration made no mention of future Nato membership for Ukraine, the fact that US president Donald Trump agreed to these two statements was widely seen as a success.
This was bad news for Ukraine. The halt in supplies weakens Kyiv’s ability to protect its large population centres and critical infrastructure against intensifying Russian airstrikes. It also puts limits on Ukraine’s ability to target Russian supply lines and logistics hubs behind the frontlines that have been enabling ground advances.
Despite protests from Ukraine and an offer from Germany to buy Patriot missiles from the US for Ukraine, Trump has been in no rush to reverse the decision by the Pentagon.
Russia is now claiming to have completed its occupation of the province of Luhansk in eastern Ukraine. Institute for the Study of War
Another phone call with his Russian counterpart, Vladimir Putin, on July 3, failed to change Trump’s mind, even though he acknowledged his disappointment with the clear lack of willingness by the Kremlin to stop the fighting. What’s more, within hours of the call between the two presidents, Moscow launched the largest drone attack of the war against Kyiv.
A day later, Trump spoke with Zelensky. And while the call between them was apparently productive, neither side gave any indication that US weapons shipments to Ukraine would resume quickly.
Trump previously paused arms shipments and intelligence sharing with Ukraine in March, 2025 after his acrimonious encounter with Zelensky in the Oval Office. But the US president reversed course after certain concessions had been agreed – whether that was an agreement by Ukraine to an unconditional ceasefire or a deal on the country’s minerals.
It is not clear with the current disruption whether Trump is after yet more concessions from Ukraine. The timing is ominous, coming after what had appeared to be a productive Nato summit with a unified stance on Russia’s war of aggression. And it preceded Trump’s call with Putin.
This could be read as a signal that Trump was still keen to accommodate at least some of the Russian president’s demands in exchange for the necessary concessions from the Kremlin to agree, finally, the ceasefire that Trump had once envisaged he could achieve in 24 hours.
If this is indeed the case, the fact that Trump continues to misread the Russian position is deeply worrying. The Kremlin has clearly drawn its red lines on what it is after in any peace deal with Ukraine.
These demands – virtually unchanged since the beginning of the war – include a lifting of sanctions against Russia and no Nato membership for Ukraine, while also insisting that Kyiv must accept limits on its future military forces and recognise Russia’s annexation of Crimea and four regions on the Ukrainian mainland.
This will not change as a result of US concessions to Russia but only through pressure on Putin. And Trump has so far been unwilling to apply pressure in a concrete and meaningful way beyond the occasional hints to the press or on social media.
Coalition of the willing
It is equally clear that Russia’s maximalist demands are unacceptable to Ukraine and its European allies. With little doubt that the US can no longer be relied upon to back the European and Ukrainian position, Kyiv and Europe need to accelerate their own defence efforts.
A European coalition of the willing to do just that is slowly taking shape. It straddles the once more rigid boundaries of EU and Nato membership and non-membership, involving countries such as Moldova, Norway and the UK.
and including non-European allies including Canada, Japan and South Korea.
The European commission’s white paper on European defence is an obvious indication that the threat from Russia and the needs of Ukraine are being taken seriously and, crucially, acted upon. It mobilises some €800 billion (£690 billion) in defence spending and will enable deeper integration of the Ukrainian defence sector with that of the European Union.
At the national level, key European allies, in particular Germany, have also committed to increased defence spending and stepped up their forward deployment of forces closer to the borders with Russia.
US equivocation will not mean that Ukraine is now on the brink of losing the war against Russia. Nor will Europe discovering its spine on defence put Kyiv immediately in a position to defeat Moscow’s aggression.
After decades of relying on the US and neglecting their own defence capabilities, these recent European efforts are a first step in the right direction. They will not turn Europe into a military heavyweight overnight. But they will buy time to do so.
Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.
Source: Hong Kong Government special administrative region
The Hong Kong Economic and Trade Office in Berlin (HKETO Berlin) supported the 26th Berlin CityCup dragon boat races on July 5 and 6 (Berlin time).
The event saw enthusiastic participation with a total of more than 1 000 racers joined the competition. As one of the highlights of the CityCup, 60 teams joined the Hong Kong Cup sponsored by the HKETO Berlin on July 5. The Acting Director of HKETO Berlin, Mr Billy Leung, presented trophies to the winning teams after the race.
“In Chinese culture, dragon signifies strength, courage, and resilience. Today, dragon boat racers from diverse cultural backgrounds have showed the power of teamwork and fighting spirit together.” Mr Leung said.
Mr Leung added that Hong Kong possesses world-class sports, cultural and recreational facilities. With the opening of Kai Tak Sports Park in this March, a series of mega sports events as well as concerts have been held.
HKETO Berlin also set up a promotional booth at the race venue to showcase Hong Kong’s forthcoming major events, and promote Hong Kong’s advantages as an ideal place for work and study.
About HKETO Berlin
HKETO Berlin is the official representative of the Hong Kong Special Administrative Region Government in commercial relations and other economic and trade matters in Germany as well as Austria, Czechia, Hungary, Poland, the Slovak Republic, Slovenia and Switzerland.
MUNICH, Germany, July 07, 2025 (GLOBE NEWSWIRE) — The 31st annual edition of BIO-Europe, the premier partnering conference for the global biopharmaceutical industry organized by EBD Group, will take place in Vienna, Austria, from November 3 – 5, 2025, followed by a digital partnering experience on November 11 – 12.
BIO-Europe continues to serve as a cornerstone event for life science dealmaking and brings together key decision-makers to spark innovation, investment, and partnerships. The 2025 edition is expected to welcome 5,700+ participants from 2,900 companies worldwide, including top-level management from the world’s top 50 pharma firms. Attendees will engage in over 30,000 one-to-one meetings, advancing therapeutic innovation and dealmaking across the ecosystem.
“In times when uncertainty and complexity shape the global landscape, strategic collaboration is more vital than ever,” said Claire Macht, European Portfolio Director for EBD Group. “BIO-Europe provides a high-impact platform where partnerships flourish – across borders, disciplines, and development stages. Innovation in life sciences doesn’t happen in isolation, it happens when people connect, share ideas, and transform vision into action. Vienna’s vibrant ecosystem and scientific excellence make it the ideal setting for shaping the future of healthcare together.”
Vienna stands out as one of Europe’s most dynamic life sciences locations. The Austrian capital accounts for over half of the nation’s life sciences activity and employs nearly 50,000 people across 754 organizations, including 646 companies and 19 renowned research and education institutions. The sector generated €22 billion in annual revenues in 2023, underscoring the city’s growing influence in the European biotech and pharma industry.1
“Welcoming BIO-Europe to Vienna is both an honor and a strategic opportunity,” said Philipp Hainzl, Managing Director of LISAvienna. “Austria’s life sciences community is eager to engage with international peers, investors, and innovators. We look forward to showcasing the regional strength in research, entrepreneurship, and collaborative growth on a global stage. Together with our leading biotech innovators, we will contribute to an unforgettable conference experience. Participants are warmly invited to our Welcome Reception at the magnificent Vienna City Hall.” The local host LISAvienna is Vienna’s central life sciences cluster platform operated by Austria Wirtschaftsservice (aws) and the Vienna Business Agency on behalf of the Austrian Federal Ministry of Economy, Energy and Tourism and the City of Vienna.
Program Highlights
Inspired by Vienna’s legendary coffeehouse culture and music, BIO-Europe 2025 will offer an engaging program involving expert-led panel discussions, company presentations, including the startup spotlight pitch competition, the Advanced Business Development course, an active exhibition floor, and networking opportunities designed to inspire collaboration across the life science industry.
A highlight of the event – the Opening Plenary – with David Loew, CEO of Ipsen, and Jeremy Levin, CEO of Ovid Therapeutics, will explore Europe’s evolving role in global healthcare innovation – will it be a symphony or a solo act?
BIO-Europe serves the entire biopharma ecosystem, with tailored content for early-stage startups, innovators, academic researchers, as well as large pharma and venture investors. Serendipitous networking, both in-person and online, is a hallmark of the experience.
Partnering and Registration
Partnering for BIO-Europe opens on September 22, 2025. One-to-one meetings will be powered by partneringONE®, EBD Group’s industry-standard platform that enables delegates to search, request, schedule, and conduct meetings efficiently.
To enhance access and extend engagement beyond the in-person event, the conference will continue with two days of virtual partnering on November 11-12, allowing participants to connect regardless of time zone or travel constraints.
Registration is now open (information is available online), with the biggest savings available through the first early bird deadline on July 25, 2025. Additional discounted rates are available until November 2, 2025.
Follow BIO-Europe 2025 on X @EBDGroup (hashtag: #BIOEurope) or on LinkedIn.
About EBD Group
EBD Group’s mission is to help collaborations get started across the life science value chain. Our range of partnering conferences has grown to become the largest and most productive conference platform in the industry. Each one of our landmark events held in key life science markets around the world is powered by our state-of-the-art partnering software, partneringONE, that enables delegates to efficiently identify and engage with new opportunities via one-to-one meetings. Today our events (BIO-Europe, BIO-Europe Spring®, Biotech Showcase™, ChinaBio® Partnering Forum, Asia Bio Partnering Forum and BioEquity Europe) annually attract more than 15,000 senior life science executives who engage in over 50,000 one-to-one partnering meetings. These vital one-to-one engagements are the wellspring of deals that drive innovation in our industry. EBD Group is an Informa company. For more information, please visit www.ebdgroup.com.
San Francisco, USA, July 07, 2025 (GLOBE NEWSWIRE) — The global Textile Recycling Market is experiencing a steady transformation as environmental concerns, sustainability goals, and circular economy initiatives reshape industry priorities. Valued at USD 7,258.59 million by 2032 and growing at a CAGR of 4.90%, the market reflects rising global awareness of the environmental toll caused by textile waste. Traditional fashion consumption patterns, driven by fast fashion and short product life cycles, have resulted in millions of tons of discarded clothing entering landfills annually. This growing waste stream has created an urgent demand for efficient recycling solutions.
Textile recycling is the process of reclaiming fibers from used clothing, manufacturing waste, and household fabrics to create new materials or products. This process plays a crucial role in reducing environmental burdens such as landfill overflow, water usage, and dependency on virgin fibers. Globally, over 92 million tons of textile waste are generated each year, as per the Ellen MacArthur Foundation, with most ending up in landfills or incinerators. Additionally, producing one cotton shirt consumes around 2,700 liters of water. As sustainability gains traction across industries and among consumers, textile recycling is emerging as a key strategy to combat environmental degradation.
The competitive landscape of the global textile recycling market includes both established players and emerging innovators. Major companies include:
Worn Again Technologies
Birla Cellulose
Lenzing Group
BLS Ecotech
iinouiio Ltd.
The Woolmark Company
Ecotex Group
Unifi, Inc.
The Boer Group
Textile Recycling International
Pistoni S.r.l.
Renewcell
REMONDIS SE & Co. KG
HYOSUNG TNC
Martex Fiber
Anandi Enterprises, American Textile Recycling Service
Patagonia
Infinited Fiber Company
Prokotex
Retex Textiles
Pure Waste Textiles
Others
Textile Recycling Market Segments:
Global Textile Recycling Market, By Process- Market Analysis, 2019 – 2032
Chemical
Mechanical
Global Textile Recycling Market, By Material- Market Analysis, 2019 – 2032
Polyester & Polyester Fiber
Nylon & Nylon Fiber
Cotton
Wool
Others
Global Textile Recycling Market, By Textile Waste- Market Analysis, 2019 – 2032
Pre-consumer
Post-consumer
Global Textile Recycling Market, By Distribution Channel- Market Analysis, 2019 – 2032
Retail & Departmental Stores
Online
Global Textile Recycling Market, By End-Use Industry- Market Analysis, 2019 – 2032
Home Furnishings
Apparel
Industrial & Institutional
Others
Market Drivers and Opportunities
Several key drivers are fueling the growth of the textile recycling market:
Environmental Regulations: Governments worldwide are implementing stringent regulations to minimize waste and cut greenhouse gas emissions. A notable example is the European Union’s directive, which requires member states to ensure the separate collection of textile waste by January 1, 2025, as part of its Circular Economy Action Plan. This mandate aims to boost reuse and recycling, reduce environmental impact, and promote sustainable production models. Such policy-driven initiatives are expected to significantly improve textile recycling rates across the EU, while also influencing regulatory frameworks in other regions. The growing legislative pressure underscores the urgent global commitment to advancing sustainable waste management practices.
Circular Economy Initiatives: The rise of circular fashion—where products are designed, produced, and recycled with sustainability in mind—is gaining momentum. Many brands are investing in closed-loop systems, where discarded garments are recycled back into new clothing.
Consumer Awareness: Increased public awareness regarding the environmental impact of fashion is influencing purchasing decisions. Consumers are now more inclined to support brands that prioritize sustainability and offer recycled or upcycled products.
Technological Advancements: Innovation in recycling technologies, including AI-powered sorting systems, automated collection solutions, and efficient fiber recovery techniques, are making recycling more viable and cost-effective.
Brand Collaborations: Partnerships between recycling companies and major fashion brands are helping expand the scope of textile recycling. For example, brands like Patagonia and H&M are implementing take-back programs and collaborating with recycling firms to develop new eco-friendly collections.
The textile industry is one of the most resource-intensive and polluting industries globally. With fast fashion encouraging rapid consumption and disposal of clothing, millions of tons of textiles end up in landfills each year. According to the U.S. Environmental Protection Agency (EPA), more than 17 million tons of textile waste were generated in the U.S. alone in 2018, but less than 15% of it was recycled. This highlights the enormous potential for growth and the pressing need for efficient textile recycling systems.
TABLE OF CONTENT
1. Textile Recycling Market Overview 1.1. Study Scope 1.2. Market Estimation Years 2. Executive Summary 2.1. Market Snippet 2.1.1. Textile Recycling Market Snippet by Process 2.1.2. Textile Recycling Market Snippet by Material 2.1.3. Textile Recycling Market Snippet by Textile Waste 2.1.4. Textile Recycling Market Snippet by Distribution Channel 2.1.5. Textile Recycling Market Snippet by End-use Industry 2.1.6. Textile Recycling Market Snippet by Country 2.1.7. Textile Recycling Market Snippet by Region 2.2. Competitive Insights 3. Textile Recycling Key Market Trends 3.1. Textile Recycling Market Drivers 3.1.1. Impact Analysis of Market Drivers 3.2. Textile Recycling Market Restraints 3.2.1. Impact Analysis of Market Restraints 3.3. Textile Recycling Market Opportunities 3.4. Textile Recycling Market Future Trends….
Textile recycling not only reduces landfill waste but also conserves water, energy, and raw materials. Reprocessing fibers from used garments decreases the need for virgin materials like cotton or synthetic fibers, both of which have significant environmental footprints. As a result, governments, industries, and consumers are increasingly supporting textile recycling as a sustainable alternative.
Regional Insights: Europe Leads, Asia-Pacific Follows
Europe is expected to maintain its dominance in the textile recycling market throughout the forecast period. The region’s strong regulatory framework, early adoption of sustainable practices, and well-developed recycling infrastructure contribute to its leadership. Countries like Germany, Sweden, and the Netherlands have implemented effective waste segregation systems, making textile recycling more efficient.
The Asia-Pacific region is anticipated to witness the fastest growth. Countries such as China, India, and Bangladesh are major textile producers and consumers. With rising environmental awareness and growing volumes of textile waste, these nations are investing heavily in recycling infrastructure. China, for instance, aims to recycle 25% of its textile waste and produce 2 million tonnes of recycled fiber annually by 2025, aligning with its broader environmental goals.
North America is also an important market, with the United States gradually enhancing its textile recycling infrastructure. Public-private partnerships and educational campaigns are improving recycling rates, although the region still faces challenges related to mixed material processing and consumer participation.
Technology Landscape: Mechanical vs. Chemical Recycling
The textile recycling market is segmented into mechanical and chemical recycling processes.
Mechanical Recycling involves shredding and reprocessing textiles into fibers without altering their chemical structure. It is cost-effective, widely applicable, and especially suitable for natural fibers like cotton and synthetic fibers like polyester. Due to its simplicity and lower environmental impact, mechanical recycling is currently the dominant technology.
Chemical Recycling, on the other hand, breaks down fabrics at the molecular level, allowing the recovery of high-purity fibers. This method is effective for mixed-fiber textiles but is currently more expensive and less scalable. However, ongoing innovations are expected to make chemical recycling more accessible in the coming years.
Challenges and Constraints
Despite the growing momentum, the textile recycling market faces several hurdles:
Lack of Infrastructure: Many regions still lack the infrastructure for efficient textile collection, sorting, and processing.
Contamination Issues: Textiles often contain mixed fibers, dyes, and chemicals, making recycling complex and resource-intensive.
Consumer Participation: Public engagement in recycling programs remains relatively low in several markets.
Economic Viability: In many cases, producing virgin fibers is still cheaper than recycling, particularly in regions where labor and manufacturing costs are low.
Access Other Relevant Reports from AnalystView Market Insights:
San Francisco, USA, July 07, 2025 (GLOBE NEWSWIRE) — The global Textile Recycling Market is experiencing a steady transformation as environmental concerns, sustainability goals, and circular economy initiatives reshape industry priorities. Valued at USD 7,258.59 million by 2032 and growing at a CAGR of 4.90%, the market reflects rising global awareness of the environmental toll caused by textile waste. Traditional fashion consumption patterns, driven by fast fashion and short product life cycles, have resulted in millions of tons of discarded clothing entering landfills annually. This growing waste stream has created an urgent demand for efficient recycling solutions.
Textile recycling is the process of reclaiming fibers from used clothing, manufacturing waste, and household fabrics to create new materials or products. This process plays a crucial role in reducing environmental burdens such as landfill overflow, water usage, and dependency on virgin fibers. Globally, over 92 million tons of textile waste are generated each year, as per the Ellen MacArthur Foundation, with most ending up in landfills or incinerators. Additionally, producing one cotton shirt consumes around 2,700 liters of water. As sustainability gains traction across industries and among consumers, textile recycling is emerging as a key strategy to combat environmental degradation.
The competitive landscape of the global textile recycling market includes both established players and emerging innovators. Major companies include:
Worn Again Technologies
Birla Cellulose
Lenzing Group
BLS Ecotech
iinouiio Ltd.
The Woolmark Company
Ecotex Group
Unifi, Inc.
The Boer Group
Textile Recycling International
Pistoni S.r.l.
Renewcell
REMONDIS SE & Co. KG
HYOSUNG TNC
Martex Fiber
Anandi Enterprises, American Textile Recycling Service
Patagonia
Infinited Fiber Company
Prokotex
Retex Textiles
Pure Waste Textiles
Others
Textile Recycling Market Segments:
Global Textile Recycling Market, By Process- Market Analysis, 2019 – 2032
Chemical
Mechanical
Global Textile Recycling Market, By Material- Market Analysis, 2019 – 2032
Polyester & Polyester Fiber
Nylon & Nylon Fiber
Cotton
Wool
Others
Global Textile Recycling Market, By Textile Waste- Market Analysis, 2019 – 2032
Pre-consumer
Post-consumer
Global Textile Recycling Market, By Distribution Channel- Market Analysis, 2019 – 2032
Retail & Departmental Stores
Online
Global Textile Recycling Market, By End-Use Industry- Market Analysis, 2019 – 2032
Home Furnishings
Apparel
Industrial & Institutional
Others
Market Drivers and Opportunities
Several key drivers are fueling the growth of the textile recycling market:
Environmental Regulations: Governments worldwide are implementing stringent regulations to minimize waste and cut greenhouse gas emissions. A notable example is the European Union’s directive, which requires member states to ensure the separate collection of textile waste by January 1, 2025, as part of its Circular Economy Action Plan. This mandate aims to boost reuse and recycling, reduce environmental impact, and promote sustainable production models. Such policy-driven initiatives are expected to significantly improve textile recycling rates across the EU, while also influencing regulatory frameworks in other regions. The growing legislative pressure underscores the urgent global commitment to advancing sustainable waste management practices.
Circular Economy Initiatives: The rise of circular fashion—where products are designed, produced, and recycled with sustainability in mind—is gaining momentum. Many brands are investing in closed-loop systems, where discarded garments are recycled back into new clothing.
Consumer Awareness: Increased public awareness regarding the environmental impact of fashion is influencing purchasing decisions. Consumers are now more inclined to support brands that prioritize sustainability and offer recycled or upcycled products.
Technological Advancements: Innovation in recycling technologies, including AI-powered sorting systems, automated collection solutions, and efficient fiber recovery techniques, are making recycling more viable and cost-effective.
Brand Collaborations: Partnerships between recycling companies and major fashion brands are helping expand the scope of textile recycling. For example, brands like Patagonia and H&M are implementing take-back programs and collaborating with recycling firms to develop new eco-friendly collections.
The textile industry is one of the most resource-intensive and polluting industries globally. With fast fashion encouraging rapid consumption and disposal of clothing, millions of tons of textiles end up in landfills each year. According to the U.S. Environmental Protection Agency (EPA), more than 17 million tons of textile waste were generated in the U.S. alone in 2018, but less than 15% of it was recycled. This highlights the enormous potential for growth and the pressing need for efficient textile recycling systems.
TABLE OF CONTENT
1. Textile Recycling Market Overview 1.1. Study Scope 1.2. Market Estimation Years 2. Executive Summary 2.1. Market Snippet 2.1.1. Textile Recycling Market Snippet by Process 2.1.2. Textile Recycling Market Snippet by Material 2.1.3. Textile Recycling Market Snippet by Textile Waste 2.1.4. Textile Recycling Market Snippet by Distribution Channel 2.1.5. Textile Recycling Market Snippet by End-use Industry 2.1.6. Textile Recycling Market Snippet by Country 2.1.7. Textile Recycling Market Snippet by Region 2.2. Competitive Insights 3. Textile Recycling Key Market Trends 3.1. Textile Recycling Market Drivers 3.1.1. Impact Analysis of Market Drivers 3.2. Textile Recycling Market Restraints 3.2.1. Impact Analysis of Market Restraints 3.3. Textile Recycling Market Opportunities 3.4. Textile Recycling Market Future Trends….
Textile recycling not only reduces landfill waste but also conserves water, energy, and raw materials. Reprocessing fibers from used garments decreases the need for virgin materials like cotton or synthetic fibers, both of which have significant environmental footprints. As a result, governments, industries, and consumers are increasingly supporting textile recycling as a sustainable alternative.
Regional Insights: Europe Leads, Asia-Pacific Follows
Europe is expected to maintain its dominance in the textile recycling market throughout the forecast period. The region’s strong regulatory framework, early adoption of sustainable practices, and well-developed recycling infrastructure contribute to its leadership. Countries like Germany, Sweden, and the Netherlands have implemented effective waste segregation systems, making textile recycling more efficient.
The Asia-Pacific region is anticipated to witness the fastest growth. Countries such as China, India, and Bangladesh are major textile producers and consumers. With rising environmental awareness and growing volumes of textile waste, these nations are investing heavily in recycling infrastructure. China, for instance, aims to recycle 25% of its textile waste and produce 2 million tonnes of recycled fiber annually by 2025, aligning with its broader environmental goals.
North America is also an important market, with the United States gradually enhancing its textile recycling infrastructure. Public-private partnerships and educational campaigns are improving recycling rates, although the region still faces challenges related to mixed material processing and consumer participation.
Technology Landscape: Mechanical vs. Chemical Recycling
The textile recycling market is segmented into mechanical and chemical recycling processes.
Mechanical Recycling involves shredding and reprocessing textiles into fibers without altering their chemical structure. It is cost-effective, widely applicable, and especially suitable for natural fibers like cotton and synthetic fibers like polyester. Due to its simplicity and lower environmental impact, mechanical recycling is currently the dominant technology.
Chemical Recycling, on the other hand, breaks down fabrics at the molecular level, allowing the recovery of high-purity fibers. This method is effective for mixed-fiber textiles but is currently more expensive and less scalable. However, ongoing innovations are expected to make chemical recycling more accessible in the coming years.
Challenges and Constraints
Despite the growing momentum, the textile recycling market faces several hurdles:
Lack of Infrastructure: Many regions still lack the infrastructure for efficient textile collection, sorting, and processing.
Contamination Issues: Textiles often contain mixed fibers, dyes, and chemicals, making recycling complex and resource-intensive.
Consumer Participation: Public engagement in recycling programs remains relatively low in several markets.
Economic Viability: In many cases, producing virgin fibers is still cheaper than recycling, particularly in regions where labor and manufacturing costs are low.
Access Other Relevant Reports from AnalystView Market Insights:
1 Introduction
Thank you, Governor Müller, for your kind introduction and for the invitation. It is a great pleasure and honour for me to speak here today. I truly appreciate the warm hospitality of Eesti Pank. Since my arrival, I have spent an exciting weekend enjoying several concerts, a trip to the Estonian wilderness, and a walking tour of your beautiful Old Town.
Ladies and gentlemen, Estonia and Germany are connected in surprising ways. For example, the esteemed Estonian economist Ragnar Nurkse, in whose honour this lecture series is being held, attended Tallinna Toomkool. The school was also formerly known as the Domschule zu Reval, and its lessons were held in German.
Estonia and Germany have also shared a similar economic fate in recent years: Both countries’ economies have largely stagnated since the outbreak of the COVID-19 pandemic.
Today, I want to share my thoughts on how the German economy reached its current state and how it could recover. I will structure my remarks around three key questions.
First, what is the current state of the German economy, and what are the main drivers shaping the economic outlook?
Second, what national structural reforms could help put the German economy back on a growth trajectory?
And third, how can we work together to improve the European policy framework to better support growth and security across the European Union?
2 German economy: current state and outlook
2.1 Current state of the economy
Let’s begin by examining the current state of the German economy. In 2024, Germany’s annual real GDP was only 0.4 % higher than in 2019. Similarly, Estonia’s economy remained largely stagnant at its 2019 level. There are several reasons for this sobering growth experience in Germany. For one thing, the economy has been significantly impacted by recent crises.
As one of the most globally interconnected economies, Germany experienced supply chain disruptions during the COVID-19 pandemic more acutely than many other nations. Moreover, Germany’s heavy reliance on Russian natural gas made it particularly vulnerable to the sharp rise in energy prices.
Simultaneously, German industry has been experiencing a gradual loss in competitiveness in international markets. This decline is partly due to the increasing strength of global competitors, especially from China. It had already taken root well before the onset of the pandemic.
In addition to these external challenges, there are also various, persistent internal obstacles to growth, which I will discuss in more detail shortly. Overall, potential output growth stands at a modest 0.4 %, and without significant policy changes, it is likely to remain at this low level.
2.2 Economic outlook
Against the background of these structural challenges, what are the short-term prospects of the German economy?
In the first quarter of this year, the German economy grew by 0.4 %, rebounding from a slight contraction at the end of last year. This growth was stronger than anticipated, partly because concerns about rising tariffs resulted in shipments being frontloaded. However, the underlying economic momentum remains weak.
The Bundesbank’s June 2025 forecast indicates that the German economy is expected to more or less stagnate this year. Factoring in the stronger-than-expected first-quarter growth figures, a slight annual increase appears possible. However, this would still represent three consecutive years of minimal growth.
Our forecast aligns with recent predictions from the IMF and the European Commission, both of which project zero growth for 2025. The OECD is slightly more optimistic, projecting a growth rate of 0.4 %. Looking ahead, we see promising signs of recovery.
In 2026, the Bundesbank projects that the German economy will grow by 0.7 %. And in 2027, growth could reach 1.2 %. Compared to last December’s forecast, the outlook for 2025 has thus been revised downward, while the forecast for 2027 has improved. The forecast is influenced by two opposing factors.
On one hand, the tariff hikes and heightened uncertainty are estimated to reduce the German economy’s growth by approximately three-quarters of a percentage point. This impact is primarily expected to affect growth in 2025 and 2026.
The baseline forecast assumes that the additional tariffs of at least 10 % imposed on all US trading partners since April will remain in place. Additionally, it accounts for the tariffs on steel and aluminium as well as on cars and car parts. Finally, the forecast factors in a significant increase in uncertainty, in particular with regard to trade policy.
On the other hand, from 2026 onwards, the growth-dampening effects of tariffs are counterbalanced by positive growth impulses from German fiscal policy.
Significant leeway for increased debt has been established, and deficits are expected to rise. Amongst other things, this leeway will be used to finance additional defence and infrastructure spending. Our experts estimate that this extra spending could boost economic growth by a total of three-quarters of a percentage point by 2027.
In our baseline forecast, the two opposing forces in effect broadly cancel each other out. However, our projections are accompanied by considerable uncertainty. Trade disputes, geopolitical tensions, and specifics of German economic and fiscal policy all present risks.
For instance, an escalation of the trade conflict could increase GDP losses to one-and-a-half percentage points by 2027. In this risk scenario, the US tariff hikes announced in early April, some of which are currently suspended, would take full effect. This would be followed by renewed strong financial market reactions and ongoing high uncertainty regarding US economic policy. It is also assumed that the EU would retaliate with tariffs on a similar scale.
The situation remains fluid, with both escalation and resolution of these tensions being possible at any moment. Just to mention, in two days, on July 9th, the 90-day pause on US reciprocal tariffs will conclude. We will see what happens.
In summary, the German economy faces significant headwinds in the short term. Nevertheless, there are grounds for cautious optimism as we look to the future.
Before discussing policy measures to boost growth in Germany, let me take a moment to digress. In observing the public debate in Germany, it appears that the war in Ukraine still feels far removed for many people.
This contrasts sharply with the situation in Estonia, where a direct neighbour has become an immediate threat. Considering Estonia’s history and recurrent struggle for independence, one could say: “once more”.
My impression is that the new German government understands the gravity of the situation. And I am confident that it will take the necessary steps to enhance European security.
3 National policy measures to boost growth
Ladies and gentlemen, A politically strong Europe must be built on a solid economic foundation. And as we have seen, Germany has significant room for improvement in this regard. So, how can Germany enhance its growth potential?
A few months ago, I presented a comprehensive set of measures during a speech in Berlin.[1] Let me summarise the key takeaways for you. I see three key areas where policymakers can enhance Germany’s growth potential.
3.1 Increasing labour supply
The first area that needs to be addressed urgently is labour supply. As the baby boomers from the 1960s retire, the number of working individuals is declining, which diminishes our growth potential. Accordingly, policymakers must explore every avenue to increase labour supply in Germany.
One crucial option lies in increasing the working hours of part-time employees, especially women. While the employment rate of women in Germany is slightly above the European average, their weekly working hours are significantly lower.
This discrepancy partly stems from disincentives in the tax and social security systems that discourage longer working hours. Moreover, the lack of an adequate supply of childcare and elderly care facilities limits part-time workers’ ability to increase their hours. Improving these facilities can pave the way for longer working hours, thereby boosting our national labour supply.
Another key component is labour market-oriented migration. Currently, bureaucratic hurdles and slow visa processes are hindering the effective integration of workers from non-EU countries. This represents one of several areas where Germany’s backlog in digitalising public services is hampering growth. Simplifying recognition procedures for academic qualifications and creating a centralised, digital point of contact for immigrants and their families can facilitate smoother transitions.
It is also vital to ensure that skilled workers remain in Germany over the long term. Currently, within two years of entering the labour market, more than 30 % of immigrants from other EU countries leave again.[2] Enhancing language courses and granting residency rights for workers’ family members can provide greater stability and integration.
Additionally, we need to improve work incentives for recipients of the civic allowance. Research shows that the recent abolition of sanctions has significantly decreased the transition of recipients into the labour market.[3] Reinstating previous rules on grace periods, protected assets, and reporting obligations can help these individuals in their transition back to regular employment.
Finally, we must harness the substantial potential of older individuals for additional, often highly qualified labour.[4] Germany faces a unique challenge, as the ratio of retirees to working-age individuals is expected to worsen significantly over the next 15 years compared to the OECD average.
To mitigate the increasing ratio of working to retirement years, it seems advisable to link the earliest possible retirement age, and subsequently the retirement age after 2031, to life expectancy. The year 2031 is significant, as by that time, the regular retirement age will have been increased to 67.
Estonia serves as a role model in this context, as it will start linking retirement age to average life expectancy in 2027.[5] Germany would be wise to follow Estonia’s example.
Furthermore, it is time to reconsider the rule that permits early retirement without deductions for individuals who have worked for 45 years.
These measures would not only alleviate labour shortages and support economic growth, but also ease the financial pressure on pension systems.
3.2 Efficiently transforming the energy sector
The second area that needs to be addressed is the transformation of the energy sector. Germany aims to achieve carbon neutrality by 2045. As a member of the European Union, Estonia, too, is expected to achieve carbon neutrality by 2050 under the European Climate Law.
This monumental task will necessitate significant investments in several key sectors. To ensure the energy transition is as efficient as possible, Germany needs to adopt a comprehensive and cohesive strategy.
A key element of this strategy is implementing an effective carbon pricing system across all sectors and regions. Currently, carbon prices differ across sectors. However, only a standardised carbon price will ensure that savings are made in the most cost-effective areas. Therefore, it is crucial for Germany to advocate for consistent carbon pricing within the EU and other economic regions.
Simultaneously, it is highly advisable to abolish climate-damaging subsidies. These subsidies undermine the economic incentives of carbon pricing by promoting fossil fuel consumption.
Another essential component is establishing a reliable and coherent framework for the energy transition. Given the long planning horizons and substantial investments needed, a clear policy direction is essential. The government needs to clarify how domestic renewable energy sources and energy imports will interact, considering potential supply bottlenecks, particularly during the winter months.
Moreover, policymakers should create economic incentives to better align electricity supply and demand within Germany. Flexible electricity tariffs and innovative approaches such as bidirectional charging for electric vehicles can help achieve this.
3.3 Reviving business dynamism
The third area in which Germany has significant room for improvement is business dynamism. Specifically, improved conditions for start-ups and business investment are critical for guiding the German economy back onto a stronger growth path.
What needs to be done?
To begin with, Germany should reduce excessive bureaucratic burdens. Entrepreneurs often express frustration with increasing bureaucracy and regulation.[6] The National Regulatory Control Council (Normenkontrollrat) has identified several promising avenues in this context. Moreover, implementing EU rules as sparingly and efficiently as possible can significantly reduce compliance burdens. We should avoid “gold plating”, which refers to adding extra layers of regulation at the national level.
Rather, the focus should be on facilitating start-ups and enhancing innovative capacity. Over one-half of company founders in Germany view bureaucratic hurdles and delays as problematic.[7] Creating a “one-stop shop” for aspiring entrepreneurs to manage all typical tasks related to starting a business can unleash greater business dynamism. Innovative start-ups should be embraced, benefiting from a large domestic market and suitable funding opportunities.
Lastly, simplifying and expediting administrative processes is essential for reviving business dynamism. Faster planning and approval procedures can help modernise infrastructure more quickly. Moreover, digitalisation, automation, and standardisation can all streamline administrative processes.
In this context, Estonia and Germany differ significantly. According to the World Bank, Estonia ranks among the most conducive countries for starting businesses in the EU – namely on position 14, while Germany ranks much lower – namely on position 125.[8]
The 2025 Spring Report from the German Council of Economic Experts provides a detailed comparison of what it takes to start a company in both countries.[9] The differences are striking.
Estonia’s approach to founding a company exemplifies efficiency, featuring a fully digital, centralised system that enables entrepreneurs to complete the process quickly and with minimal bureaucracy.
The entire procedure can be completed online through a one-stop shop for administrative services known as the “e-Business Register”. It employs a standardised template and allows users to apply for a VAT number at the same time. The costs of starting a company in Estonia are relatively low. Moreover, authorities process applications within five working days, or within one day if the expedited option is selected.
This efficient, fully digital system positions Estonia as a leader in facilitating entrepreneurship.
By contrast, Germany’s process is more fragmented, necessitating interaction with multiple authorities and requiring significantly more time and effort.
Founders must consult several institutions, including notaries, the local court, the trade office, the tax office, and the Federal Employment Agency if they plan to hire employees. Additionally, the costs of starting a company in Germany are considerably higher. Moreover, it takes an average of 35 days, which is considerably longer.
This is certainly another area where I believe Germany should follow Estonia’s lead.
4 The European dimension
Implementing rigorous structural reforms at the national level is essential for boosting Germany’s growth potential. However, for certain issues, we need to find solutions and make progress at the European level.
4.1 Addressing geoeconomic and geopolitical challenges
One aspect of this is developing a unified European response to the geoeconomic and geopolitical threats we face today. Europe is currently being confronted with an erratic and confrontational US trade policy.
So far, the European Commission has made every effort to de-escalate the situation. Simultaneously, however, the Commission is prepared to retaliate. I believe this is a reasonable approach.
Overall, Europe should remain committed to a rule-based international trade order and pursue free trade agreements with like-minded countries and regions. Commission President Ursula von der Leyen’s recent proposal to enhance cooperation between the EU and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) represents a welcome and appropriate step in that direction.
Regarding geopolitics, Europe must assume greater responsibility for its own defence. In this context, it is crucial to enhance European coordination, including with non-EU countries such as Norway and the United Kingdom, in military strategy, deployment, personnel build-up, procurement, and production capacities. This coordination will incur minimal fiscal costs and may even save money through increased synergies.
The EU Commission’s “Readiness 2030” initiative aims to create space for additional national defence spending within the Stability and Growth Pact. I consider such temporary additional leeway for defence expenditure to be reasonable. It will enable European countries to act swiftly and adapt gradually to permanently higher defence spending.
Lastly, Europe should enhance its autonomy in the payments sector. Currently, Europe remains largely dependent on non-European payment providers. We still lack a digital payment solution that functions across the entire euro area and operates on European infrastructure.
Introducing a digital euro in both retail and wholesale variants could be a cornerstone for true autonomy in payments. I would encourage legislators to push forward with the digital euro project accordingly.
4.2 Boosting European integration
The second dimension we must focus on is fostering European integration.
The European Single Market has been a cornerstone of prosperity to date, allowing goods to flow freely across borders while fostering competition, innovation, and economic growth. However, significant barriers still exist when it comes to services. Cross-border trade in services is still far less developed than in goods, partly due to national regulations that restrict professional services such as legal advice, architecture, and engineering. While some regulations are justified, many are not, resulting in inefficiencies and lost opportunities.
The digital revolution presents a unique opportunity to overcome these obstacles. Digital platforms, virtual collaboration, and online services are revolutionising how businesses operate and interact. To fully harness this potential, we need to simplify regulations, reduce administrative burdens, and establish a truly unified digital marketplace. For example, the centralised EU digital portal for public services established by the European Commission is a welcome step towards facilitating cross-border employment for professionals. This serves as a mechanism to give citizens easier access to services in other Member States.
By eliminating unjustified obstacles, we can unlock the full potential of the Single Market, enhance competitiveness, and ensure that Europe remains a global leader in innovation.
Energy is another area where deeper European integration can yield significant benefits. Europe’s energy markets are still fragmented, with infrastructure bottlenecks and national boundaries restricting the efficient flow of electricity.
A more integrated European electricity market would enable us to better align supply and demand across borders, reduce reliance on costly reserve power plants, and accelerate the transition to renewable energy. To achieve this, we need to invest in cross-border infrastructure, modernise our grids, and eliminate regulatory obstacles that impede energy trade. By collaborating, we can not only achieve our climate goals but also enhance Europe’s energy security and competitiveness in a rapidly evolving global landscape.
Last but not least, we must deepen the integration of European financial markets. The European Savings and Investments Union can help mobilise the necessary financing for additional investments, such as, for instance, for the green transition and the enhancement of defence capabilities.
Three key elements are at play here.
First, the European Savings and Investments Union can help diversify funding sources. Enhancing access to equity, market-based debt financing and venture capital will enable the financing of a broader range of investments.
Second, the European Savings and Investments Union will facilitate cross-border investments by harmonising regulations and breaking down barriers. This would ease the formation of pan-European companies, enabling them to harness cost-lowering economies of scale.
This point echoes Ragnar Nurske’s “balanced growth theory”. Tailored to the situation of high-income economies, one could paraphrase him in the following way: The limited size of the domestic market can constitute an obstacle to the application of capital by firms or industries, thus posing an obstacle to economic growth generally.[10]
Third, the European Savings and Investments Union will make Europe more appealing to external investors. This would increase both the quantity of available financing and reduce its cost.
Recent policy actions by the US administration have led international investors to start questioning the US dollar’s safe haven status and to reassess the relative attractiveness of Europe as an investment location compared to the US. Boosting growth in the EU and making it an attractive investment destination presents an opportunity for Europe.
5 Concluding remarks
Ladies and gentlemen, Allow me to briefly summarise and share a few concluding thoughts.
I began my speech by noting that economic growth has been weak in both Germany and Estonia over the past few years. In Germany’s case, the economy is currently navigating a combination of cyclical fluctuations and structural challenges.
This is a pivotal moment – a time for reflection, decisive action, and bold leadership. I am optimistic that the new German government will address the structural issues with determination and help its economy to become one of Europe’s growth engines.
In light of today’s geopolitical and geoeconomic uncertainties, Europe’s role is more crucial than ever. Let us seize this opportunity to deepen European integration and emerge stronger together.
If we take the right actions, I am confident that our two economies will soon share two key outcomes once again: vibrant economic growth and enduring security.
For now, I eagerly anticipate our discussion here and my ongoing conversations with Governor Müller. I look forward to exchanging ideas and the opportunity to learn from each other. Thank you for your attention.
Foot notes:
Nagel, J. (2025), Economic policy measures to boost growth in Germany, speech held at the Berlin School of Economics, Humboldt University of Berlin.
See Hammer, L. and M. Hertweck (2022), EU enlargement and (temporary) migration: Effects on labour market outcomes in Germany, Deutsche Bundesbank Discussion Paper No 02/2022.
See Weber, E. (2024), The Dovish Turnaround: Germany’s Social Benefit Reform and Job Findings, IAB-Discussion Paper 07/2024.
For a comprehensive analysis of retirement timing in Germany, see Deutsche Bundesbank (2025), Early, standard, late: when insurees retire and how pension benefit reductions and increases could be determined, June Monthly Report.
See Republic of Estonia Social Insurance Board (2025), Retirement age | Sotsiaalkindlustusamet
See Metzger, G. (2024), Start-up activity lacks macro-economic impetus – self-employed people are becoming more important as multipliers, KfW Entrepreneurship Monitor 2024, KfW Research.
See World Bank Group (2025), Rankings.
See German Council of Economic Experts (2025), Between hope and fear: Economic weakness and opportunities of the fiscal package, bureaucratic obstacles and structural change, Spring Report 2025, Chapter 3, Section 10.
See Nurkse, R. (1961), Problems of Capital Formation in Underdeveloped Countries, New York: Oxford University Press, p. 163. The original citation is: “The limited size of the domestic market in a low income country can thus constitute an obstacle to the application of capital by any individual firm or industry working for the market. In this sense the small domestic market is an obstacle to development generally”.
Source: People’s Republic of China – State Council News
The United States reclaimed the FIBA U19 Basketball World Cup crown in emphatic fashion on Sunday, overpowering Germany 109-76 in the championship game.
The victory marks Team USA’s record-extending ninth title in the tournament’s history.
Fueled by a dominant performance throughout the competition, Team USA capped a perfect 7-0 run, setting a new tournament record for points per game with an average of 114.6.
USA’s AJ Dybantsa was named the Most Valuable Player of the tournament. He contributed 11 points, six rebounds and two assists in the final, averaging 14.3 points, 4.1 rebounds, 2.3 assists and 1.1 steals per game.
Despite their overall dominance, the USA faced a significant test in the quarterfinals, narrowly overcoming Canada by just six points. They responded with a resounding 56-point semifinal win over New Zealand to reach the final.
Germany, making its first-ever appearance in the U19 World Cup medal rounds and ultimately securing silver, started strong in the final with a 16-9 lead.
The USA regrouped with a 15-7 run to seize the lead and entered halftime with a nine-point advantage. Any hopes of a German comeback were extinguished immediately after the break, as the Americans unleashed a 22-2 surge. Germany, the European U18 champions, could not recover from the deficit.
Six American players scored in double figures, led by Morez Johnson with 15 points.
In the bronze medal game, Slovenia defeated New Zealand 91-87 to secure third place.
As the peak international body on deep sea mining begins a three-week meeting, CSIRO has released aseries of reportscommissioned by mining proponent The Metals Company (TMC) that underscore the severe environmental risks andscientific uncertaintysurrounding the dangerous industry.
The findings confirm international consensus; the deep ocean is too poorly understood to proceed with deep sea mining safely or responsibly, prompting major environmental organisations to call on the Albanese Government to support a moratorium.
The timing of the CSIRO reports appears to align with what was, until recently, TMC’s plan to submit an application to the ISA on June 27 – plans the company has now abandoned in favour of a controversial U.S. based pathway via a dormant 1980s law and enabled by the Trump administration.
Pressure is mounting on the Albanese Government to adopt a precautionary stance supporting a moratorium at the ISA in line with many of its major partners, including the UK, Canada, France, Germany and New Zealand. Currently,37 countriesback a deep sea mining moratorium.
TMC continues to apply pressure on international regulators to accelerate approvals for this high-risk untested industry. With a state-funded agency producing research likely to be used to legitimise mining in international waters, ocean advocates are calling on the Albanese Government to direct CSIRO to take no further actions on behalf of TMC.
The CSIRO reports confirm the likely damage to the seafloor and to the marine environment that civil society, Indigenous Pacific communities, and independent scientists have warned about; deep sea mining is too destructive and there is too much uncertainty to proceed.
“These findings echo the concerns we’ve heard right across the Pacific region – that the deep ocean is a highly complex, precious environment, and that accelerating deep sea mining would be dangerous,”said Phil McCabe, Pacific Regional Coordinator at the Deep Sea Conservation Coalition.
There remains a severe lack of real-world data about deep sea ecosystems – particularly in relation to the long-term environmental impacts and the risk of toxic pollution entering the food chain. Scientists warn that many of these impacts are likely to be irreversible in human timeframes. The CSIRO reports acknowledge the potential for heavy metals to bioaccumulate in marine life, including tuna, swordfish, whales, and dolphins.
“We’ve seen this before; traffic light systems,digital twin technology, adaptive management systems – all designed to give the illusion of sustainable management,”said Dr. Helen Rosenbaum, Research Coordinator at the Deep Sea Mining Campaign.“When the science is this uncertain, the only responsible signal is red.”
TMC’s recent decision to abandon its application to the ISA and instead issue permits through a dormant U.S. law has been widely condemned by governments and legal experts as a direct challenge to international law and multilateralism. The move undermines the ISA’s authority just as states prepare to negotiate key regulations.
“Australia’s credibility is on the line,”said Duncan Currie, International Lawyer and advisor to the Deep Sea Conservation Coalition.“CSIRO’s involvement with The Metals Company (TMC) risks implicating Australia in their attempt to sidestep international governance. The Albanese Government must now draw a clear line; support a moratorium at the International Seabed Authority, and ensure CSIRO takes no further action on TMC’s behalf.”
“At the ISA, a moratorium or precautionary pause on deep sea mining is the only viable path to protecting the deep sea,”said Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific.“Delegates at the ISA must listen to the science and the voices of Pacific nations and back a moratorium to stop deep sea mining before it starts.”
The Deep Sea Mining Campaign, Deep Sea Conservation Coalition, Greenpeace Australia Pacific, and Surfrider Australia call on the Albanese Government to announce its support for a Moratorium at the upcoming ISA meeting in Jamaica; and direct CSIRO to take no further actions on behalf of TMC.
Headline: Global Topic: FC Barcelona and Panasonic agree contract for Espai Barça
Wiesbaden, Germany – FC Barcelona and Panasonic have signed a sponsorship agreement whereby the Japanese multinational will become the new “Heating Ventilation Air Conditioning Provider” for Espai Barça for four seasons up to 30 June 2028. This association adds another strategic partner for Espai Barça, ensuring the highest possible energy efficiency, with precision technology and a high level of interior air quality in the new installations, with a view to providing the highest possible comfort for every member and fan visiting the Spotify Camp Nou.
Part of the sponsorship programme associated with the future Spotify Camp Nou, this agreement will see Panasonic Heating & Cooling Solutions provide more sustainable heating, ventilation and air conditioning solutions, with air purification (using nanoeTM X technology), and latest generation of air-to-water heat pump systems for each space in the refurbished blaugrana home. Furthermore, high precision heating, ventilation and air conditioning equipment will be used in the technical areas, such as rooms containing the servers and for broadcasting games, where device reliability and quality is essential.
This is also an opportunity for the sponsorship programme developed specifically for Espai Barça, one of the most important projects in the Club’s history, and which has provided a platform full of new opportunities for both companies that directly target consumers (B2C) and those focused on the business sector (B2B), making the most of FC Barcelona’s global prestige and outreach.
Espai Barça is a ground-breaking project in the world of sport and entertainment, which includes the refurbishment of the iconic Spotify Camp Nou, which is set to become the best sports complex located in the centre of a major city, providing comfort for every one of its almost 105,000 spectators. Every space in the new stadium will be fitted out with Panasonic solutions, providing the highest possible comfort, energy efficiency and highest quality interior air, offering innovative and high quality solutions for heating, ventilation and air conditioning, and air purification, among others.
“The alliance with Panasonic demonstrates the Club’s willingness to equip the Spotify Camp Nou with the highest quality technology in the market, with the comfort of every member and fan visiting the stadium in mind so they can enjoy a match day in the refurbished installation. This agreement with Panasonic will mean every space is as comfortable as possible for the best possible enjoyment of the matchday experience.”
Statement by Panasonic Heating & Cooling Europe CEO Hiroshi Komatsubara
“Panasonic is proud to be involved in this new FC Barcelona project, which will inevitably become a global benchmark in infrastructure. Moreover, in line with the Club’s commitment to sustainability and energy efficiency, Panasonic contributes to the new stadium’s design with its most innovative heating, ventilation, and air conditioning solutions. Using cutting-edge technology, these systems ensure comfort, high indoor air quality, and low CO2 emissions, marking a new era for major facilities in progressive cities worldwide.”
Source: People’s Republic of China – State Council News
Real Madrid will face Paris Saint-Germain in the FIFA Club World Cup semifinals after both sides claimed quarterfinal victories on Saturday.
In New Jersey, Real Madrid survived a late scare to secure a 3-2 win over a fast-finishing Borussia Dortmund while Paris Saint-Germain overcame Bayern Munich 2-0 in Atlanta.
Kylian Mbappe (L) of Real Madrid scores with a volley during the quarterfinal match between Real Madrid (Spain) and Borussia Dortmund (Germany) at the FIFA Club World Cup 2025 in New Jersey, the United States, July 5, 2025. (Xinhua/Wu Xiaoling)
Fifteen-time UEFA Champions League winners Real Madrid looked to be cruising as they entered second-half stoppage time with a 2-0 lead courtesy of first-half goals from Gonzalo Garcia and Fran Garcia at MetLife Stadium.
Maximilian Beier pulled one back in the 93rd minute before Kylian Mbappe appeared to settle Madrid’s nerves a minute later by volleying home his first goal of the tournament.
But Serhou Guirassy reduced the deficit again by converting from the penalty spot after he was dragged down by Dean Huijsen, an offense that earned the Spain international defender a straight red card.
The Spanish side held on to set up a duel with PSG at the same venue next Wednesday for a place in the final.
“Everything was under control but the last 10 minutes were kind of crazy,” Real Madrid manager Xabi Alonso said after the match. “We lost a little bit of our shape, our intensity and luckily we managed to hold on. Overall, it was a good eighty minutes but the last 10 minutes showed we need to improve.”
Alonso hailed the impact of Gonzalo Garcia, who has four goals in five games this tournament, as well as an assist.
“He is doing great work for the team,” the former Spain midfielder said. “He is helping the team and he is running into the right positions in the box. He is a proper No. 9, and we are happy that he is doing that work.”
Borussia Dortmund manager Niko Kovac said his team paid the price for a poor start.
“I don’t think we played well in the first half,” the former Croatia midfielder said. “We were too passive, just waiting and not aggressive enough. It was a bit better after the break.”
He reserved special praise for Real Madrid goalkeeper Thibaut Courtois, who denied Marcel Sabitzer an equalizer in the final seconds.
“That final save was unbelievable,” Kovac said. “I really thought that shot would go in but this is a world-class goalkeeper. We lost the game in the first half, not the second.”
Earlier, late goals from Desire Doue and Ousmane Dembele gave nine-man Paris Saint-Germain victory over Bayern Munich.
The result was overshadowed by a serious ankle injury suffered by Bayern midfielder Jamal Musiala in a collision with PSG goalkeeper Gianluigi Donnarumma just before halftime.
Doue put the European champions ahead in the 78th minute with a long-range effort that beat goalkeeper Manuel Neuer at his near post.
The Parisian side was then reduced to nine men after Willian Pacho and Lucas Hernandez were both shown straight red cards within 10 minutes.
Despite the double setback, Dembele swept home PSG’s second goal in stoppage time following Achraf Hakimi’s cross.
“It’s always difficult to play against a great team like Bayern Munich,” PSG manager Luis Enrique told a post-match news conference. “And thinking about the last part of the match where we played with one man less and then two, it was very difficult.
“We have to recover and focus on the semifinal. In this very long season, to come here with that attitude that we see from the team in each training session and each game, I think we deserve to be here. I also think our fans deserve to see this. I hope we’ll keep improving and be able to play another final. That’s our goal.”
Bayern Munich manager Vincent Kompany said the final scoreline did not accurately reflect the match.
“We weren’t rewarded for a performance that was exactly what was required against PSG,” he said. “That’s a shame. I knew it would be a close game. It could’ve finished 1-0 or 2-0 to us or them. That’s how it turned out. It was a game with high intensity and high quality.
“Tomorrow we fly home and have three weeks off. It’s important that the boys can also mentally switch off a bit now. We need to regain our strength for next season.”
Kompany said the club’s thoughts were with Musiala and wished the German international a prompt recovery.
“I’ve rarely been so angry at halftime, not against my players – I know there are much more important things in life, but for these guys it’s their life,” the former Belgium international defender said.
“Someone like Jamal lives for this. He just came back from a setback, and now this happens. You feel powerless. My blood is still boiling right now, not because of the result, that’s football. But because it happened to someone who enjoys the game so much.”
Source: People’s Republic of China – State Council News
Bayern Munich’s Jamal Musiala faces a lengthy spell on the sidelines after suffering a serious ankle injury during his side’s 2-0 FIFA Club World Cup quarterfinal defeat to Paris Saint-Germain.
Jamal Musiala (R) of FC Bayern Munich passes the ball during the quarterfinal match between Paris Saint-Germain (FRA) and FC Bayern Munich (GER) at the FIFA Club World Cup 2025 at the Mercedes-Benz Stadium, Atlanta, Georgia, the United States, July 5, 2025. (Xinhua/Li Ming)
The 22-year-old sustained a fibula fracture and multiple torn ligaments in his left ankle following a collision with PSG goalkeeper Gianluigi Donnarumma in Atlanta. The scene left teammates and opponents visibly shaken, and after an agonizing 15-minute deliberation pitchside, Bayern team doctor Peter Hahne and sporting director Christoph Freund confirmed that Musiala would return to Germany for treatment.
Images of the incident showed Musiala’s ankle bending unnaturally, prompting an emotional reaction from Donnarumma, who broke into tears and knelt on the pitch, covering his face with his gloves. Players from both teams, including Harry Kane, Joshua Kimmich, Michael Olise, Kingsley Coman and PSG defender Willian Pacho, reacted in visible distress as Musiala screamed in pain.
Musiala’s injury is a significant blow for both Bayern and the Germany national team ahead of the 2026 FIFA World Cup. The midfielder had only recently returned from a muscle injury in April and was making his first start back in the lineup for the tournament in the United States.
The incident overshadowed Bayern’s defeat and the final appearance of 35-year-old club legend Thomas Muller, who is departing after 25 years with the club.
Tributes and messages of support flooded social media. Brazilian star Neymar wrote, “Football needs your unique talent; I hope you are back soon,” while new Liverpool signing Florian Wirtz added: “All prayers are with you. Stay strong, buddy.” PSG teammates Achraf Hakimi and Donnarumma also offered public messages of support.
“It was a highly emotional moment,” Bayern head coach Vincent Kompany said. “At halftime, my blood was boiling.”
Muller echoed the sentiment. “We’re not robots. You try to stay focused, but we have deep personal connections. He’s been through a lot in recent months.”
Initial medical assessments suggest Musiala will be out for at least six months. He rejoined his teammates in Orlando after the match and is expected to return to Germany late Sunday local time.
“He is extremely frustrated,” said Bayern board member Max Eberl. “The Bayern family will be there for him every step of the way on his long road to recovery.”
Source: People’s Republic of China – State Council News
Chelsea continued with its movement in the summer transfer market with the club on Saturday announcing the signing of England winger Jamie Gittens from Borussia Dortmund.
Jamie Bynoe-Gittens (L) of Dortmund vies with Phillipp Steinhart of 1860 Munich during a German Cup first round football match between TSV 1860 Munich and Borussia Dortmund in Munich, Germany, July 29, 2022. (Photo by Philippe Ruiz/Xinhua)
The 20-year-old Gittens has agreed a contract until the end of June 2032 and has cost an initial 48.5 million pounds (66.25 million U.S. dollars).
He is the third attacking player to join Chelsea this summer, following Liam Delap from Ipswich and Joao Pedro from Brighton.
Pedro joined up with Chelsea in the USA earlier this week and will be able to play for the club in the remaining rounds of the FIFA Club World Cup, but Gittens won’t be able to do that as he has already appeared for Dortmund, who plays Real Madrid in the quarter-finals later on Saturday.
Gittens can play on either wing and he made 107 appearances for Dortmund after joining from Manchester City in 2021.
“It feels great… It’s a great feeling to join such a big club as Chelsea.”
“I can’t wait to learn from everyone in the team and to push myself to the max here. It’s an amazing feeling,” Gittens said on the Chelsea website.
Grade inflation happens when teachers knowingly give a student a mark higher than deserved. It can also happen indirectly, when the level of difficulty of a course is deliberately lowered so students achieve higher grades.
To better understand grade inflation, we sought the opinions of those closest to the phenomenon: university teachers. The findings of our survey were recently published in the Journal of Academic Ethics.
Increases in grades
Over the past 50 years, many countries have reported an increase in higher university grades. This includes the United States, United Kingdom, Germany and Australia.
For example, a 2024 Australian report found a 234% increase in the number of distinction grades awarded to students at the University of Sydney between 2011 and 2021.
But are grades improving due to changes in teaching and student performance, or rather is marking generally more lenient to keep students happy?
Our study
To investigate the causes of grade inflation in Australian universities, we surveyed lecturers and tutors who have direct contact with students, teaching them and marking their work.
Our main question was:
[What is] your opinion regarding grade inflation? Does it occur, and if yes, why, and how does it impact the student, profession, institutional reputation, society, and yourself?
In July 2024, we sent the survey to the deans (heads) of research at all Australian universities, asking them to distribute it to their academics. Academics then had two months to answer the questions.
In total, we had 110 respondents, of which 88 answered all the questions of the survey. The majority were aged 31-55 (55%), women (56%), born in Australia (about 70%), with more than five years in academia (more than 80%). There were more respondents from regional Australia (44%) than from urban locations (24.5%). About 30% had experience in both types of locations.
The disciplines most represented were legal studies (37%), education (21%), science, nursing and psychology (each around 7%).
Overall opinions
The majority (73%) said they had seen grade inflation in their universities.
Academics’ dominant feelings about grade inflation were frustration (50% of respondents), powerlessness (44%) and dissatisfaction (31%).
Of those surveyed, about 11% were indifferent and 7% were satisfied with the situation they experienced around grade inflation.
The fact that many academics surveyed felt frustrated and powerlessness indicates they do not inflate grades willingly. Previous studies have suggested university management encourages grade inflation as students are seen as clients and they want to keep the client happy.
Pressure from university administration
Our respondents supported this idea. Most said grade inflation was due to student evaluations – and the role they play in management decisions about staff.
Student evaluations are anonymous questionnaires completed by students after the course about their teachers’ performance. Studies, including those in Australia, have shown the results can be insulting and even abusive, often a “punishment” of unpopular teachers. These studies also question students’ capacity to objectively assess the quality of their educators.
Because students evaluations are commonly used in promotion and retention decisions, this means teachers may inflate grades to get positive evaluations. One respondent to our survey explained the link between these evaluations and grade inflation:
there is a lot of pressure […] as students will often provide strong negative feedback in [student evaluations].
Other academics similarly lamented how the quality of their teaching was assessed “based on student surveys”. Or as another academic told us:
Everyone I know who admits to grade inflation cites student evaluations, promotion, and workload as drivers.
Complaints generate more work
On top of this, if a student complains about their grade, there is automatically more work for an academic who needs to review it and potentially respond to seniors or others in university management. As one academic admitted:
I have inflated grades slightly for students who have failed the course by less than two marks. This saves hundreds of hours of work time.
In this climate, university teachers told us they do not feel supported if a student challenges their grades. They reported it was “very hard” to fail a student and described a “fear” of students’ reactions.
The customer is always right and if they are not happy, you are asked to grade again.
Is it always a problem?
Some respondents justified grade inflation as an acceptable trade-off when done to a limited extent, or as something morally neutral. As one noted, higher grades are the result of more people studying at university:
It is simply a corollary of shifting from tertiary education for the elites to tertiary education for the masses. It is no big deal.
Another said if the increase was small – depending on the context – it would not make a big difference.
1–5 marks do not make a significant difference on professional competence for some course content.
Only three respondents presented grade inflation in a positive light, as an act of social justice or compassion. As one noted:
Students experience many competing demands and many experience mental health issues. Teachers need to be compassionate to students’ situation.
An honest discussion is needed
While countless studies debate grade inflation, ours was the first to invite academics to express their feelings. Despite the relatively small sample, the survey suggests a worrying picture of a frustrated and at times, fearful academic workforce.
Meanwhile, the extent of grade inflation reported raises questions about the quality of some degrees, and more generally about the culture of learning in Australian universities.
To maintain the quality and reputation of higher education in Australia, we need to have an open and honest discussion about grade inflation in our universities.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
Grade inflation happens when teachers knowingly give a student a mark higher than deserved. It can also happen indirectly, when the level of difficulty of a course is deliberately lowered so students achieve higher grades.
To better understand grade inflation, we sought the opinions of those closest to the phenomenon: university teachers. The findings of our survey were recently published in the Journal of Academic Ethics.
Increases in grades
Over the past 50 years, many countries have reported an increase in higher university grades. This includes the United States, United Kingdom, Germany and Australia.
For example, a 2024 Australian report found a 234% increase in the number of distinction grades awarded to students at the University of Sydney between 2011 and 2021.
But are grades improving due to changes in teaching and student performance, or rather is marking generally more lenient to keep students happy?
Our study
To investigate the causes of grade inflation in Australian universities, we surveyed lecturers and tutors who have direct contact with students, teaching them and marking their work.
Our main question was:
[What is] your opinion regarding grade inflation? Does it occur, and if yes, why, and how does it impact the student, profession, institutional reputation, society, and yourself?
In July 2024, we sent the survey to the deans (heads) of research at all Australian universities, asking them to distribute it to their academics. Academics then had two months to answer the questions.
In total, we had 110 respondents, of which 88 answered all the questions of the survey. The majority were aged 31-55 (55%), women (56%), born in Australia (about 70%), with more than five years in academia (more than 80%). There were more respondents from regional Australia (44%) than from urban locations (24.5%). About 30% had experience in both types of locations.
The disciplines most represented were legal studies (37%), education (21%), science, nursing and psychology (each around 7%).
Overall opinions
The majority (73%) said they had seen grade inflation in their universities.
Academics’ dominant feelings about grade inflation were frustration (50% of respondents), powerlessness (44%) and dissatisfaction (31%).
Of those surveyed, about 11% were indifferent and 7% were satisfied with the situation they experienced around grade inflation.
The fact that many academics surveyed felt frustrated and powerlessness indicates they do not inflate grades willingly. Previous studies have suggested university management encourages grade inflation as students are seen as clients and they want to keep the client happy.
Pressure from university administration
Our respondents supported this idea. Most said grade inflation was due to student evaluations – and the role they play in management decisions about staff.
Student evaluations are anonymous questionnaires completed by students after the course about their teachers’ performance. Studies, including those in Australia, have shown the results can be insulting and even abusive, often a “punishment” of unpopular teachers. These studies also question students’ capacity to objectively assess the quality of their educators.
Because students evaluations are commonly used in promotion and retention decisions, this means teachers may inflate grades to get positive evaluations. One respondent to our survey explained the link between these evaluations and grade inflation:
there is a lot of pressure […] as students will often provide strong negative feedback in [student evaluations].
Other academics similarly lamented how the quality of their teaching was assessed “based on student surveys”. Or as another academic told us:
Everyone I know who admits to grade inflation cites student evaluations, promotion, and workload as drivers.
Complaints generate more work
On top of this, if a student complains about their grade, there is automatically more work for an academic who needs to review it and potentially respond to seniors or others in university management. As one academic admitted:
I have inflated grades slightly for students who have failed the course by less than two marks. This saves hundreds of hours of work time.
In this climate, university teachers told us they do not feel supported if a student challenges their grades. They reported it was “very hard” to fail a student and described a “fear” of students’ reactions.
The customer is always right and if they are not happy, you are asked to grade again.
Is it always a problem?
Some respondents justified grade inflation as an acceptable trade-off when done to a limited extent, or as something morally neutral. As one noted, higher grades are the result of more people studying at university:
It is simply a corollary of shifting from tertiary education for the elites to tertiary education for the masses. It is no big deal.
Another said if the increase was small – depending on the context – it would not make a big difference.
1–5 marks do not make a significant difference on professional competence for some course content.
Only three respondents presented grade inflation in a positive light, as an act of social justice or compassion. As one noted:
Students experience many competing demands and many experience mental health issues. Teachers need to be compassionate to students’ situation.
An honest discussion is needed
While countless studies debate grade inflation, ours was the first to invite academics to express their feelings. Despite the relatively small sample, the survey suggests a worrying picture of a frustrated and at times, fearful academic workforce.
Meanwhile, the extent of grade inflation reported raises questions about the quality of some degrees, and more generally about the culture of learning in Australian universities.
To maintain the quality and reputation of higher education in Australia, we need to have an open and honest discussion about grade inflation in our universities.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
Haruki Ume spoke to UN News at the UN Pavilion at Expo 2025 currently being held in the Japanese city of Osaka.
One section of the pavilion features a rotating presentation focusing on a specific UN agency or entity and recently, attention turned to the UN Volunteers programme.
“As a 17-year-old, I travelled to the United States on an educational exchange programme and my main motivation was to play baseball and experience American culture.
I met a lot of other people from Africa and Asia as well as Europe and I was shocked and then impressed by their passion and motivation to support their villages and communities back home.
One boy from Azerbaijan told me he was selected for the exchange from over 100 applicants as the only student from his country. As a result, he said that he had a responsibility not to waste his time and represent all those other applicants and his country to the best of his ability.
Haruki Ume plays with two boys during a visit to the Philippines in 2017.
It was at this moment that I decided that I wanted to contribute more to society and so I started studying development issues. I travelled as much as I could during my vacations, to places like Cambodia, the Philippines, India, Peru, Egypt and Uganda.
As a volunteer, I supported education and other initiatives during the field missions and was really driven by helping people who were less fortunate than I. I also learnt a lot from these people, so I definitely valued it an exchange of experiences and knowledge.
Understanding the outside world
I was raised in a small town in rural Japan where there were no foreigners. People grow up, work and die there and many do not ever experience foreign cultures or really understand the outside world.
UN News/Daniel Dickinson
A UN Volunteers staff member explains the role of the organization to visitors at the UN Pavilion.
I remember being nervous about speaking English and eating food that I was not used to, but I was keen to break through these personal barriers and broaden my world.
Being open to new experiences has made it easier to adapt to other cultures and this understanding promotes peace and friendship and ultimately international cooperation.
I have been working at the UN Pavilion at Expo 2025 to promote the UN and the work of UN Volunteers. I’m doing this in the spirit of building cooperation and creating positive change in the world.
Expo 2025 is bringing the world to Osaka and is providing the opportunity for Japanese people to discuss how we can work together more effectively to create a fairer and more peaceful world.”
The UN and volunteering
Headquartered in Bonn, Germany, UNV was established 1970 and is active in around 169 countries and territories every year.
In 2024, UNV deployed over 14,500 volunteers to almost 60 UN entities across the world.
They serve in diverse roles including: community development, human rights, humanitarian assistance, peacebuilding, medical services and communications.
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
An important disclaimer is at the bottom of this article.
Source: People’s Republic of China – State Council News
LANZHOU, July 6 (Xinhua) — The 31st China (Lanzhou) Investment and Trade Fair opened Sunday in Lanzhou, capital of northwest China’s Gansu Province, with more than 2,000 Chinese and foreign enterprises participating.
This year, Indonesia was the guest of honor at the fair. The number of participants exceeded the figures of previous years: representatives from more than 20 countries, including Germany, Spain, Russia, Malaysia and Iran, as well as 18 Chinese provincial-level regions and the Hong Kong Special Administrative Region, came to the fair.
The fair is divided into four thematic zones, focusing on international cooperation along the Silk Road, inter-regional exchanges, consumer goods and specialized industries of Gansu Province, the organizers said. The exhibition features products in such fields as equipment manufacturing, petrochemicals, biomedicine, new materials, new energy, aviation and astronautics, agriculture, information and data.
The fair program includes more than 30 forums and trade and economic events.
Indonesian Ambassador to China Jauhari Oratmangun noted that 16 Indonesian companies are presenting coffee, food, handicrafts and traditional batik at the fair. The diplomat expressed hope for deepening cooperation between Indonesia and China in renewable energy, modern agriculture and cultural tourism.
As the largest international economic and trade event in Gansu Province since 1993, this year’s fair has already secured deals on 1,181 investment projects worth over 650 billion yuan (about 90.9 billion U.S. dollars) in sectors including alternative energy equipment, agricultural processing, new materials and digital technology. –0–
Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.
Source: People’s Republic of China – State Council News
LANZHOU, July 6 – The 31st China Lanzhou Investment and Trade Fair opened on Sunday in Lanzhou, the capital of northwest China’s Gansu Province, attracting over 2,000 domestic and international enterprises.
This year’s fair features Indonesia as its guest country of honor. Participation has surpassed previous fairs, with representatives of over 20 nations, including Germany, Spain, Russia, Malaysia and Iran, attending alongside representatives of 18 Chinese municipalities, provinces and autonomous regions, as well as the Hong Kong Special Administrative Region.
The fair has four exhibition zones — covering international Silk Road cooperation, regional exchange, consumer goods, and featured Gansu industries — showcasing products across the fields of equipment manufacturing, petrochemicals, biomedicine, new materials, new energy, aerospace, agriculture, and data information, according to its organizers.
More than 30 forums and trade events have been scheduled for the fair.
Indonesian Ambassador to China Djauhari Oratmangun noted that Indonesia’s 16 attending enterprises were presenting coffee, foods, handicrafts and traditional batik, and expressed the hope that the two countries would deepen cooperation on renewable energy, modern agriculture and cultural tourism.
As Gansu’s flagship international economic event since 1993, the fair has this year secured deals for 1,181 investment projects totaling over 650 billion yuan (about 90.9 billion U.S. dollars) in sectors such as new energy equipment, agricultural processing, new materials, and digital technology.
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