NewzIntel.com

Category: Pandemic

  • MIL-OSI China: World Health Assembly concludes with historic pandemic agreement adopted

    Source: People’s Republic of China – State Council News

    The nine-day 78th World Health Assembly concluded on Tuesday, during which member states adopted the much-anticipated global pandemic agreement and approved the base program budget of over 4 billion U.S. dollars for 2026-2027.

    The World Health Organization (WHO) noted that the adoption of the Pandemic Agreement culminated more than three years of intensive negotiations launched by governments in response to the devastating impacts of the COVID-19 pandemic, driven by the goal of making the world safer from and more equitable in response to future pandemics.

    “The WHO pandemic agreement will run among the most significant achievements in the history of this organization and of global health,” WHO Director-General Tedros Adhanom Ghebreyesus said after the global pact’s adoption, underscoring that it places humanity in a stronger position than ever before to prepare for and respond to pandemics.

    Delegates at the Assembly approved a base program budget of 4.2 billion dollars for 2026-2027, fully based on the Fourteenth General Program of Work, the global health strategy developed by the UN specialized agency for the next four years. The budget presented to the Assembly was decreased from an initial 5.3 billion dollars submitted to the executive board in February.

    The Assembly adopted a range of decisions and resolutions, including strengthening health financing globally, adopting a new global traditional medicine strategy, galvanizing global support for a lead-free future, committing to improve nutrition for mothers and young children, updating global action plan on antimicrobial resistance and setting a voluntary target to halve the health impacts of air pollution by 2040.

    In addition, the decisions and resolutions passed by the Assembly also address areas such as lung health, kidney health, rare diseases, skin diseases, digital health, medical imaging, health and care workforce, nursing and midwifery.

    Chinese Vice Premier Liu Guozhong, also a member of the Political Bureau of the Communist Party of China Central Committee, attended the Assembly and delivered a speech at a high-level welcoming ceremony. The Chinese delegation participated in the review of over 70 agenda items throughout the Assembly, hosted three thematic side events and held exchange activities with the WHO and delegations from relevant countries.

    MIL OSI China News –

  • MIL-OSI Global: A common parasite can decapitate human sperm − with implications for male fertility

    Source: The Conversation – USA – By Bill Sullivan, Professor of Microbiology and Immunology, Indiana University

    _Toxoplasma_ can infiltrate the reproductive system. wildpixel/iStock via Getty Images Plus

    Male fertility rates have been plummeting over the past half-century. An analysis from 1992 noted a steady decrease in sperm counts and quality since the 1940s. A more recent study found that male infertility rates increased nearly 80% from 1990 to 2019. The reasons driving this trend remain a mystery, but frequently cited culprits include obesity, poor diet and environmental toxins.

    Infectious diseases such as gonorrhea or chlamydia are often overlooked factors that affect fertility in men. Accumulating evidence suggests that a common single-celled parasite called Toxoplasma gondii may also be a contributor: An April 2025 study showed for the first time that “human sperm lose their heads upon direct contact” with the parasite.

    I am a microbiologist, and my lab studies Toxoplasma. This new study bolsters emerging findings that underscore the importance of preventing this parasitic infection.

    The many ways you can get toxoplasmosis

    Infected cats defecate Toxoplasma eggs into the litter box, garden or other places in the environment where they can be picked up by humans or other animals. Water, shellfish and unwashed fruits and vegetables can also harbor infectious parasite eggs.

    In addition to eggs, tissue cysts present in the meat of warm-blooded animals can spread toxoplasmosis as well if they are not destroyed by cooking to proper temperature.

    While most hosts of the parasite can control the initial infection with few if any symptoms, Toxoplasma remains in the body for life as dormant cysts in brain, heart and muscle tissue. These cysts can reactivate and cause additional episodes of severe illness that damage critical organ systems.

    Between 30% and 50% of the world’s population is permanently infected with Toxoplasma due to the many ways the parasite can spread.

    Toxoplasma can target male reproductive organs

    Upon infection, Toxoplasma spreads to virtually every organ and skeletal muscle. Evidence that Toxoplasma can also target human male reproductive organs first surfaced during the height of the AIDS pandemic in the 1980s, when some patients presented with the parasitic infection in their testes.

    While immunocompromised patients are most at risk for testicular toxoplasmosis, it can also occur in otherwise healthy individuals. Imaging studies of infected mice confirm that Toxoplasma parasites quickly travel to the testes in addition to the brain and eyes within days of infection.

    Toxoplasma cysts floating in cat feces.
    DPDx Image Library/CDC

    In 2017, my colleagues and I found that Toxoplasma can also form cysts in mouse prostates. Researchers have also observed these parasites in the ejaculate of many animals, including human semen, raising the possibility of sexual transmission.

    Knowing that Toxoplasma can reside in male reproductive organs has prompted analyses of fertility in infected men. A small 2021 study in Prague of 163 men infected with Toxoplasma found that over 86% had semen anomalies.

    A 2002 study in China found that infertile couples are more likely to have a Toxoplasma infection than fertile couples, 34.83% versus 12.11%. A 2005 study in China also found that sterile men are more likely to test positive for Toxoplasma than fertile men.

    Not all studies, however, produce a link between toxoplasmosis and sperm quality.

    Toxoplasma can directly damage human sperm

    Toxoplasmosis in animals mirrors infection in humans, which allows researchers to address questions that are not easy to examine in people.

    Testicular function and sperm production are sharply diminished in Toxoplasma-infected mice, rats and rams. Infected mice have significantly lower sperm counts and a higher proportion of abnormally shaped sperm.

    In that April 2025 study, researchers from Germany, Uruguay and Chile observed that Toxoplasma can reach the testes and epididymis, the tube where sperm mature and are stored, two days after infection in mice. This finding prompted the team to test what happens when the parasite comes into direct contact with human sperm in a test tube.

    After only five minutes of exposure to the parasite, 22.4% of sperm cells were beheaded. The number of decapitated sperm increased the longer they interacted with the parasites. Sperm cells that maintained their head were often twisted and misshapen. Some sperm cells had holes in their head, suggesting the parasites were trying to invade them as it would any other type of cell in the organs it infiltrates.

    In addition to direct contact, Toxoplasma may also damage sperm because the infection promotes chronic inflammation. Inflammatory conditions in the male reproductive tract are harmful to sperm production and function.

    The researchers speculate that the harmful effects Toxoplasma may have on sperm could be contributing to large global declines in male fertility over the past decades.

    Sperm exposed to Toxoplasma. Arrows point to holes and other damage to the sperm; asterisks indicate where the parasite has burrowed. The two nonconfronted controls at the bottom show normal sperm.
    Rojas-Barón et al/The FEBS Journal, CC BY-SA

    Preventing toxoplasmosis

    The evidence that Toxoplasma can infiltrate male reproductive organs in animals is compelling, but whether this produces health issues in people remains unclear. Testicular toxoplasmosis shows that parasites can invade human testes, but symptomatic disease is very rare. Studies to date that show defects in the sperm of infected men are too small to draw firm conclusions at this time.

    Additionally, some reports suggest that rates of toxoplasmosis in high-income countries have not been increasing over the past few decades while male infertility was rising, so it’s likely to only be one part of the puzzle.

    Regardless of this parasite’s potential effect on fertility, it is wise to avoid Toxoplasma. An infection can cause miscarriage or birth defects if someone acquires it for the first time during pregnancy, and it can be life-threatening for immunocompromised people. Toxoplasma is also the leading cause of death from foodborne illness in the United States.

    Taking proper care of your cat, promptly cleaning the litter box and thoroughly washing your hands after can help reduce your exposure to Toxoplasma. You can also protect yourself from this parasite by washing fruits and vegetables, cooking meat to proper temperatures before consuming and avoiding raw shellfish, raw water and raw milk.

    Bill Sullivan receives funding from the National Institutes of Health.

    – ref. A common parasite can decapitate human sperm − with implications for male fertility – https://theconversation.com/a-common-parasite-can-decapitate-human-sperm-with-implications-for-male-fertility-256892

    MIL OSI – Global Reports –

  • MIL-OSI: CareCloud Announces Results from Annual Shareholders’ Meeting

    Source: GlobeNewswire (MIL-OSI)

    Shareholders Re-Elect 3 Board Members, Approve the Compensation for the Company’s Named Executives and Approve the Appointment of Public Accounting Firm

    SOMERSET, N.J., May 28, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced that it held its 2025 Annual Shareholders’ Meeting on May 27, 2025, during which shareholders re-elected Anne Busquet, Bill Korn and Lawrence Sharnak for another two-year term. Shareholders also voted to approve, on an advisory basis, the compensation of the Company’s named executive officers, as disclosed in the Company’s 2025 Proxy Statement’s compensation tables and any related information found in such proxy statement and voted to approved the appointment of Rosenberg Rich Baker Berman, P.A. as the Company’s independent registered public accounting firm for the year ending December 31, 2025.

    CareCloud’s shareholders approved the following three proposals:

    1. Re-elect Anne Busquet, Bill Korn and Lawrence Sharnak to the Board of Directors.
    2. The compensation of the Company’s named executive officers, on an advisory basis, as disclosed in the Company’s Proxy Statement.
    3. The appointment of Rosenberg Rich Baker Berman, P.A. as our independent registered public accounting firm for the year ending December 31, 2025.

    CareCloud is proud to announce the re-appointment of Anne Busquet, Bill Korn and Lawrence Sharnak to the Board. Anne Busquet has over 30 years of executive business experience with American Express and Interactive Corp. Bill Korn served as our Chief Financial Officer for 10 years before retiring in October 2023. Lawrence Sharnak served at American Express for more than 30 years where he held a variety of senior leadership roles.

    “We are pleased to announce the re-election of Anne, Bill and Larry,” said CareCloud’s Co-CEO, Stephen Snyder.

    The final voting tallies from this year’s Annual Meeting were included in a Form 8-K which was previously filed with the Securities and Exchange Commission.

    About CareCloud

    CareCloud brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

    Follow CareCloud on LinkedIn, X and Facebook.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could”, “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward- looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder 
    Co-Chief Executive Officer 
    CareCloud, Inc. 
    ir@carecloud.com

    The MIL Network –

  • MIL-OSI Europe: ECB Consumer Expectations Survey results – April 2025

    Source: European Central Bank

    28 May 2025

    Compared with March 2025:

    • median consumer perceptions of inflation over the previous 12 months remained unchanged, as did median expectations for inflation three and five years ahead, while median inflation expectations for the next 12 months increased further;
    • expectations for nominal income growth over the next 12 months decreased, while expectations for spending growth over the next 12 months increased;
    • expectations for economic growth over the next 12 months became more negative, while the expected unemployment rate in 12 months’ time increased;
    • expectations for growth in the price of homes over the next 12 months increased, as did expectations for mortgage interest rates 12 months ahead.

    Inflation

    In April, the median rate of perceived inflation over the previous 12 months remained unchanged for the third consecutive month at 3.1%. This is its lowest level since September 2021. Median expectations for inflation over the next 12 months increased further by 0.2 percentage points to 3.1%, the highest level since February 2024. Expectations for three years ahead remained unchanged at 2.5%. Expectations for inflation five years ahead were unchanged for the fifth consecutive month at 2.1%. For the first time since July 2021, median inflation expectations over the next 12 months did not stay below the level of inflation perceptions over the previous 12 months (both at 3.1%). Uncertainty about inflation expectations over the next 12 months also increased in April, reaching the same level as in June 2024. While the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups, over the previous year and a half inflation perceptions and short-horizon expectations for lower income quintiles were, on average, slightly above those for higher income quintiles. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (those aged 35-54 and 55-70), albeit to a lesser degree than in previous years. (Inflation results)

    Income and consumption

    Consumers’ nominal income growth expectations over the next 12 months decreased to 0.9%, from 1.0% in March. Perceived nominal spending growth over the previous 12 months decreased to 4.9%, from 5.0% in March. Conversely, expected nominal spending growth over the next 12 months increased to 3.7% in April, from 3.4% in March. This increase was observed across all income groups. (Income and consumption results)

    Economic growth and labour market

    Economic growth expectations for the next 12 months became more negative, falling to -1.9% in April from -1.2% in March. Expectations for the unemployment rate 12 months ahead increased to 10.5%, from 10.4% in March. Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (9.8%), implying a broadly stable labour market. Quarterly data showed that unemployed respondents reported a lower expected probability of finding a job over the next three months, falling from 25.1% in January to 21.9% in April. Employed respondents reported that their expected probability of job loss over the next three months decreased to 8.4% in April, from 8.6% in January. (Economic growth and labour market results)

    Housing and credit access

    Consumers expected the price of their home to increase by 3.2% over the next 12 months, up from 3.1% in March. Households in the lowest income quintile continued to expect higher growth in house prices than those in the highest income quintile (3.6% and 3.0% respectively), while the difference between the two groups was smaller than on average in 2024. Expectations for mortgage interest rates 12 months ahead increased to 4.5%, from 4.4% in March. As in previous months, the lowest income households expected the highest mortgage interest rates 12 months ahead (5.1%), while the highest income households expected the lowest rates (4.0%). The net percentage of households reporting a tightening (relative to those reporting an easing) in access to credit over the previous 12 months increased slightly (from 20.2% in March to 21.7% in April), while the net percentage of those expecting a tightening over the next 12 months increased more substantially (from 15.5% in March to 20.8% in April). The share of consumers who reported having applied for credit during the past three months, which is measured on a quarterly basis, increased to 15.6% in April from 15.0% in January. (Housing and credit access results)

    The release of the Consumer Expectations Survey (CES) results for May is scheduled for 1 July 2025.

    For media queries, please contact: William Lelieveldt, tel.: +49 170 2279090.

    Notes

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Predatory contracts for the supply of vaccines during the pandemic – E-002009/2025

    Source: European Parliament

    Question for written answer  E-002009/2025
    to the Commission
    Rule 144
    Lefteris Nikolaou-Alavanos (NI)

    The decision of the European Court of Justice – establishing that the European Commission was wrong to withhold an explanation for its rejection of a journalist’s request for access to the messages exchanged between the President of the Commission and the President of Pfizer during the vaccine negotiations – completely fails to address the crux of the matter. It does not respond to the public call for the contracts to be published in their entirety, including details on the exact quantities and the terms and conditions of the contracts for the supply of vaccines during the pandemic. It also certainly fails to highlight the real scale of the problem, as well as the heavy liability left unattributed.

    The matter is linked to fierce competition between pharmaceutical groups for ‘a slice of the pie’ – i.e. taxpayers’ money – with the the EU institutions fraternising with monopolistic groups.

    Can the Commission therefore answer the following:

    • 1.What view does it take of the fact that it is the Commission’s own responsibility to satisfy the public call for all contracts to be published in full – with their terms, conditions and quantities – so that the people know how many vaccines they paid for and why?
    • 2.What view does it take of the fact that political and criminal liability needs to be attributed to those responsible for the predatory contracts that were demonstrably signed not only with this group but also with the others that concluded contracts with the EU for the supply of vaccines?

    Submitted: 20.5.2025

    Last updated: 28 May 2025

    MIL OSI Europe News –

  • MIL-OSI: Canadian Credit Market Reaches $2.5 Trillion in Outstanding Balances, with Gen Z Canadians Accounting for 10% of Credit Growth

    Source: GlobeNewswire (MIL-OSI)

    Key findings from TransUnion report:

    • New-to-credit Canadians led to greater credit participation, accounting for $2.6 billion in new credit balances in Q1 2025
    • Subprime consumers are almost twice as likely to go delinquent within 12 months of opening new credit cards, compared to their pre-pandemic cohorts
    • Growing concerns around Canadian consumers experiencing economic strain

    TORONTO, May 28, 2025 (GLOBE NEWSWIRE) — The first quarter of 2025 saw mixed outcomes in the Canadian credit market, according to TransUnion’s Q1 2025 Credit Industry Insights Report (CIIR). Growth was fuelled by increased borrowing from young Canadians and newcomers. Consumer balances for non-mortgage products rose across most products, driven primarily by below prime consumers. Subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above consumers. Regional differences in cost of living and economic conditions also led to varying delinquency trends across provinces.

    Gen Z Consumers Accelerated Overall Credit Participation with 30.6% Year-Over-Year Growth in New Balances

    After the decline in interest rates and inflation in late 2024, Canadians’ total outstanding balances across all credit products grew by 4.7% year-over-year (YoY) and total outstanding credit debt reached $2.5 trillion in Q1 2025. Continued credit expansion, propelled by younger consumers, including new Canadians entering the credit market, was a key driver of this growth.

    As Gen Z consumers continued to participate in the credit market, outstanding balances within this generation have grown 30.6% from the prior year, contributing $12 billion or 10.3% of total new balance growth. Canadian newcomers also represent a significant portion of the growing credit market, driving $2.6 billion in new credit balances, a 6.3% increase YoY.

    “As a growing share of Gen Z consumers actively engage with credit, lenders face a pivotal opportunity to shape lifelong financial relationships,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “This generation values digital-first experiences, personalized education and brands that align with their values. Prioritizing credit education, fostering early loyalty and offering seamless, mobile-friendly solutions will be key to staying relevant and building trust with these new-to-market borrowers.”

    Non-Mortgage Balances Continue to Grow, Driven by Below Prime Consumers

    Non-mortgage debt grew 2.4% as consumer balances continued to increase across most products. However, total non-mortgage debt did not grow equally across all risk tiers. Below prime average consumer balances grew 4.4%, with subprime consumers contributing the highest increase at 6.3%, while prime plus and super prime consumer balances remained mostly flat.

    Risk Tier Avg. Non-Mortgage Balances per Consumer YoY Change in Non-Mortgage Balances YoY Change in Consumer Card Balances YoY Change in Consumer Personal Loan Balances
    Super Prime $26,355 0.10%   -0.30%   4.50%  
    Prime Plus $26,301 0.10%   1.10%   4.50%  
    Prime $24,983 3.30%   6.20%   4.90%  
    Near Prime $29,681 3.80%   5.90%   4.70%  
    Subprime $23,638 6.30%   5.50%   6.70%  

    The YoY growth in average balances among below prime consumers may be due to these consumers utilizing more credit to augment disposable income in the face of elevated prices. This trend was seen particularly with the growth in credit card and personal loan balances, as these are traditionally the products used by consumers for liquidity. Below prime consumer average balances across these products grew at a faster rate than overall borrower balance growth during this period.

    Additionally, the data shows regional disparities in the YoY growth rates of non-mortgage debt, although province rankings did not change from the previous quarter. P.E.I. and Newfoundland had the highest average debt per borrower, while Quebec and Manitoba had the lowest. While the gap between the highest and lowest average debt balances across provinces may not appear substantial, even modest differences in average debt per consumer can significantly influence delinquency rates. Consumers in provinces with higher average debt levels may be more susceptible to increases in interest rates as well as higher everyday living costs, making them more vulnerable to financial strain and increasing the likelihood of delinquency, particularly during economic downturns.

    “The rise in balances from higher-risk and more vulnerable credit consumers signals a critical moment for lenders to reassess risk strategies and engagement models. Proactive credit monitoring, tailored financial support and early intervention tools can mitigate potential delinquencies while still maintaining consumer access to credit,” said Fabian. “At the same time, consumers should continue to build financial resilience by understanding their credit profiles, seeking guidance when needed and using credit responsibly. Empowered, informed borrowers are key to a healthier credit ecosystem.”

    Ranking Average Consumer Non-Mortgage Debt Balance by Province
           
      Q1 2024 Q1 2025 YoY Change
    Canada $25,786 $26,415 2.44%  
    PEI $27,696 $29,364 6.02%  
    NL $27,876 $28,775 3.23%  
    BC $27,656 $28,585 3.36%  
    AB $28,304 $28,403 0.35%  
    ON $26,880 $27,544 2.47%  
    SK $26,683 $26,972 1.08%  
    NS $24,266 $24,929 2.73%  
    NB $23,675 $24,497 3.47%  
    QC $22,152 $22,756 2.72%  
    MB $20,268 $20,802 2.63%  

    Lower Canada Consumer Credit Index Reflects Weakening Market Conditions

    Economic uncertainty has recently muted credit demand while supply remains strong. Additionally, uncertainty has shifted some credit behaviours as consumers balances have increased while credit performance has remained relatively stable from prior year, driving the Canada Consumer Credit Index to 100.3, down almost 6 points from the prior year.

    Differing Impact of Economic Volatility Across Risk Tiers

    A widening financial divide is emerging among credit consumers across Canada. While recent improvements in inflation and interest rates have provided relief for some, enabling them to reduce debt and strengthen their financial positions, others continue to face significant challenges. These consumers are still grappling with the prolonged effects of past economic volatility, highlighting an uneven recovery and growing disparity in financial resilience.

    Overall consumer-level serious delinquency (consumers 60 days or more delinquent on any credit product) was up 11 basis points YoY to 2.71% in Q1 2025. This increase was driven in part by the recent growth in new-to-credit consumers, who generally carry higher risk in their early years due to their limited credit experience. Even with the recent increase, the current levels of delinquency are similar to those seen prior to the pandemic.

    Subprime consumers have become more likely to experience delinquency soon after opening a new product, with the delinquency rate within the first six months of opening a new credit account doubling between 2020 and 2024. This is particularly evident for below prime credit card and personal loans, where consumers may be more sensitive to interest rates. Subprime consumers that opened a credit card in 2023 or 2024 were 1.7x–2.0x as likely to go delinquent within the first 12 months of holding that card than those who opened a card in 2020. These findings further demonstrate the increased vulnerability that subprime borrowers have to macroeconomic factors such as higher interest rates and increased cost of living.

    Delinquency (90+ DPD) in the First 12 Months on Subprime Card Originations
      Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024
    12 Months on Book 6.46%  9.18%  11.86%  12.68%  10.76% 

    Geography is also playing a role in the vulnerability or resilience of consumers. A 16 basis point YoY increase in serious consumer delinquencies led to Alberta continuing to have the highest rate across all provinces in Q1 2025, driven by the volatility in oil and gas prices that play a large role in Alberta’s economy. While Quebec remained the province with the lowest rate of delinquencies, it had a seven basis point increase YoY.

    “We’ve seen volatility in delinquency rates attributed to a mix of regional economic pressures and demographic factors. Regional variations in both cost of living as well as wage growth, along with pressure from macro-economic cycles, disproportionately impact specific regions, and hence some provinces have had more volatile consumer credit performance,” Fabian said. “These findings underscore the importance of regionally tailored lending policies and support systems to address the unique challenges faced by those households. Additionally, consumers in more vulnerable areas should stay vigilant in keeping current on payments, monitoring credit and building emergency savings.”

    About TransUnion (NYSE: TRU)

    TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

    Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

    For more information visit: www.transunion.ca

    For more information or to request an interview, contact:

    Contact: Katie Duffy
    E-mail: katie.duffy@ketchum.com
    Telephone: +1 647-772-0969

    Photos accompanying this announcement are available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/a2ac9d72-919c-465a-a6a5-bd6b61735e35

    https://www.globenewswire.com/NewsRoom/AttachmentNg/d0b862de-42f0-43d1-91d5-95001a3f413e

    The MIL Network –

  • MIL-Evening Report: There’s a new COVID variant driving up infections. A virologist explains what to know about NB.1.8.1

    Source: The Conversation (Au and NZ) – By Lara Herrero, Associate Professor and Research Leader in Virology and Infectious Disease, Griffith University

    VioletaStoimenova/Getty Images

    As we enter the colder months in Australia, COVID is making headlines again, this time due to the emergence of a new variant: NB.1.8.1.

    Last week, the World Health Organization designated NB.1.8.1 as a “variant under monitoring”, owing to its growing global spread and some notable characteristics which could set it apart from earlier variants.

    So what do you need to know about this new variant?

    The current COVID situation

    More than five years since COVID was initially declared a pandemic, we’re still experiencing regular waves of infections.

    It’s more difficult to track the occurrence of the virus nowadays, as fewer people are testing and reporting infections. But available data suggests in late May 2025, case numbers in Australia were ticking upwards.

    Genomic sequencing has confirmed NB.1.8.1 is among the circulating strains in Australia, and generally increasing. Of cases sequenced up to May 6 across Australia, NB.1.8.1 ranged from less than 10% in South Australia to more than 40% in Victoria.

    Wastewater surveillance in Western Australia has determined NB.1.8.1 is now the dominant variant in wastewater samples collected in Perth.

    Internationally NB.1.8.1 is also growing. By late April 2025, it comprised roughly 10.7% of all submitted sequences – up from just 2.5% four weeks prior. While the absolute number of cases sequenced was still modest, this consistent upward trend has prompted closer monitoring by international public health agencies.

    NB.1.8.1 has been spreading particularly in Asia – it was the dominant variant in Hong Kong and China at the end of April.


    Lara Herrero, created using BioRender

    Where does this variant come from?

    According to the WHO, NB.1.8.1 was first detected from samples collected in January 2025.

    It’s a sublineage of the Omicron variant, descending from the recombinant XDV lineage. “Recombinant” is where a new variant arises from the genetic mixing of two or more existing variants.

    The image to the right shows more specifically how NB.1.8.1 came about.

    What does the research say?

    Like its predecessors, NB.1.8.1 carries a suite of mutations in the spike protein. This is the protein on the surface of the virus that allows it to infect us – specifically via the ACE2 receptors, a “doorway” to our cells.

    The mutations include T22N, F59S, G184S, A435S, V445H, and T478I. It’s early days for this variant, so we don’t have much data on what these changes mean yet. But a recent preprint (a study that has not yet been peer reviewed) offers some clues about why NB.1.8.1 may be gathering traction.

    Using lab-based models, researchers found NB.1.8.1 had the strongest binding affinity to the human ACE2 receptor of several variants tested – suggesting it may infect cells more efficiently than earlier strains.

    The study also looked at how well antibodies from vaccinated or previously infected people could neutralise or “block” the variant. Results showed the neutralising response of antibodies was around 1.5 times lower to NB.1.8.1 compared to another recent variant, LP.8.1.1.

    This means it’s possible a person infected with NB.1.8.1 may be more likely to pass the virus on to someone else, compared to earlier variants.

    What are the symptoms?

    The evidence so far suggests NB.1.8.1 may spread more easily and may partially sidestep immunity from prior infections or vaccination. These factors could explain its rise in sequencing data.

    But importantly, the WHO has not yet observed any evidence it causes more severe disease compared to other variants.

    Reports suggest symptoms of NB.1.8.1 should align closely with other Omicron subvariants.

    Common symptoms include sore throat, fatigue, fever, mild cough, muscle aches and nasal congestion. Gastrointestinal symptoms may also occur in some cases.

    COVID is continuing to evolve.
    Joannii/Shutterstock

    How about the vaccine?

    There’s potential for this variant to play a significant role in Australia’s winter respiratory season. Public health responses remain focused on close monitoring, continued genomic sequencing, and promoting the uptake of updated COVID boosters.

    Even if neutralising antibody levels are modestly reduced against NB.1.8.1, the WHO has noted current COVID vaccines should still protect against severe disease with this variant.

    The most recent booster available in Australia and many other countries targets JN.1, from which NB.1.8.1 is descended. So it makes sense it should still offer good protection.

    Ahead of winter and with a new variant on the scene, now may be a good time to consider another COVID booster if you’re eligible. For some people, particularly those who are medically vulnerable, COVID can still be a serious disease.

    Lara Herrero receives funding from the National Health and Medical Research Council.

    – ref. There’s a new COVID variant driving up infections. A virologist explains what to know about NB.1.8.1 – https://theconversation.com/theres-a-new-covid-variant-driving-up-infections-a-virologist-explains-what-to-know-about-nb-1-8-1-257552

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: President Lai meets delegation led by US House Natural Resources Committee Chair Bruce Westerman

    Source: Republic of China Taiwan

    Details
    2025-05-27
    President Lai meets and hosts luncheon for delegation led by Governor Lourdes A. Leon Guerrero of Guam
    On the morning of May 27, President Lai Ching-te met with a delegation led by Governor Lourdes A. Leon Guerrero of Guam and her husband, and hosted a luncheon for the delegation at noon. In remarks, President Lai noted that this is the governor’s first trip to Taiwan, fully demonstrating the Guam government’s support and high regard for Taiwan. The president said that Guam, being the closest United States territory to Taiwan, is an important bridge for collaboration between Taiwan and the US. He stated that aside from promoting tourism, we can also explore even more opportunities for collaboration in other areas to further advance industrial development for both sides. He said that, as we begin a new chapter, we look forward to working together to generate even more momentum in bilateral cooperation and exchanges. A translation of President Lai’s remarks follows: On behalf of the people of Taiwan, I extend a warm welcome to Governor Leon Guerrero and her delegation. Last year, I transited through Guam en route for visits to Taiwan’s diplomatic allies in the Pacific. The enthusiastic reception I received from the government, legislature, people, and members of our overseas community in Guam was very touching and left me with a deep impression. During the morning tea reception hosted by Governor Leon Guerrero, we joined in singing our respective national anthems, as well as the Fanohge CHamoru. I also received at the Guam Legislature a copy of a Taiwan-friendly resolution it passed on behalf of the people of Taiwan. And I still remember to this day the striking scenery of the governor’s house and the warm reception I received there. It is therefore a great pleasure to meet with all of you today here at the Presidential Office. This is Governor Leon Guerrero’s first trip to Taiwan. Your visit fully demonstrates the Guam government’s support and high regard for Taiwan. As we begin a new chapter, we look forward to working with you to generate even more momentum in bilateral cooperation and exchanges. Taiwan and Guam are like family. We share the Austronesian spirit and culture. Our wide-ranging and mutually-beneficial collaboration is very fruitful. And now, we are facing the challenges of climate change, public health and medicine, and regional security together. The world is rapidly changing and tensions in the Indo-Pacific continue to rise. But if we combine our strengths, come together as one, and enhance cooperation, we can maintain regional peace, stability, and prosperity. Last Tuesday, I delivered an address on my first anniversary of taking office. I mentioned that for many years, Taiwan, the US, and our democratic partners have actively engaged in exchange and cooperation. Taking a market-oriented approach, we will promote an economic path of staying firmly rooted in Taiwan and expanding the global presence of our enterprises while strengthening ties with the US. Guam is the closest US territory to Taiwan. It is an important bridge for collaboration between Taiwan and the US. Last month, we were pleased to see United Airlines officially launch direct flights between Taipei and Guam. I believe this will benefit tourism and economic and trade exchanges for both sides. In the area of health care, many hospitals in Taiwan already offer referral services to patients from Guam. Both Governor Leon Guerrero and I have backgrounds in medicine. It is my hope that Taiwan and Guam can continue to work hand in hand to create even more positive outcomes from cooperation in public health and medical services. During the governor’s visit, aside from promoting tourism, we can also explore even more opportunities for collaboration in other areas. There is potential for more exchanges in aquaculture, food processing, hydroculture, manufacturing, pharmaceuticals, and recycling. This will further advance industrial development in Taiwan and Guam. In closing, I thank Governor Leon Guerrero and all our distinguished guests for backing Taiwan. I wish you all a smooth and successful visit.  Governor Leon Guerrero then delivered remarks, saying that she is very happy to come to Taiwan. She said that after learning during President Lai’s visit to Guam last year that he is a medical doctor, she felt more relaxed because healthcare colleagues are one in their endeavor to help enhance the health and well-being of people. She then expressed her heartfelt appreciation for the invitation to Taiwan.  Governor Leon Guerrero said that as they learn more about opportunities for collaboration with Taiwan, they are humbled by the hospitality they have experienced. In both of our islands, she said, hospitality is more than just a custom – it forms a part of our identities. She noted that despite being nearly 2,000 miles apart, we are connected by the Pacific Ocean and common roots, and our ancestors both value family, community, and tradition. That is why being here today, she said, she feels a strong sense of familiarity, like reconnecting with old friends. The governor remarked that Taiwan has evolved so quickly in all areas of essential life, sustenance, economy, and prosperity, adding that Taiwan’s resources in such areas as health, education, data, AI, advanced technology, aquaculture, agriculture, and commerce enhance our economic stability. She stated her belief that in collaboration and support, and working with each other, we can gain prosperity, maintain freedom and democracy, and live in peace.  Governor Leon Guerrero stated that their delegation is here to see how they can partner with Taiwan to help raise the quality of life for both our peoples, mentioning that one special concern of theirs is tourism. Tourism, she said, is the most influential engine and driver for the economy and quality of life in Guam, but they cannot have a vibrant economy and tourism without air connectivity. She added that they are prepared to help in any way to provide incentives and low-cost fees so that they can get more airlines from Taiwan to establish permanent flight schedules to Guam, so as to drive development in Guam’s tourism industry. Governor Leon Guerrero then proceeded to introduce each of the members of her delegation before remarking that while they have been very busy on this visit they are always reminded of the freedom and democracy that the people must protect. She said she looks forward to a great, strong relationship between Taiwan and Guam in cooperation on social and economic issues, in culture, marketing, tourism, and freedom and democracy. Among those in attendance were First Gentleman Jeffrey A. Cook, Chief of Staff Jon Junior Calvo, Director of the Department of Administration Edward Birn, General Manager of the Guam Visitors Bureau Regine Biscoe Lee, Deputy Executive Manager of the Guam International Airport Authority Artemio “Ricky” Hernandez, Board of Directors Chairman of the Guam International Airport Authority Brian J. Bamba, Deputy General Manager of the Guam Economic Development Authority Carlos Bordallo, Director of Landscape Management Systems Guam Bob Salas, Chairperson of the Guam Chamber of Commerce Tae Oh, President of the University of Guam Anita Borja Enriquez, and Director of the Guam Taiwan Office Felix Yen (嚴樹芬). After the meeting, President Lai, accompanied by Vice President Bi-khim Hsiao, hosted a luncheon for Governor Leon Guerrero, her husband, and the delegation.

    Details
    2025-05-27
    President Lai meets delegation from European Parliament
    On the morning of May 27, President Lai Ching-te met with a delegation from the European Parliament. In remarks, President Lai thanked the European Parliament for continuing to pay close attention to peace and stability across the Taiwan Strait and voice support for Taiwan. The president expressed hope for an even closer relationship and diversified cooperation between Taiwan and the European Union. The president said that Taiwan and the EU can work together in such areas as semiconductors, AI, and green energy to create more resilient supply chains for global democracies and contribute to global prosperity and development. A translation of President Lai’s remarks follows: I warmly welcome our guests to the Presidential Office. After being elected last year, MEPs Reinis Pozņaks and Beatrice Timgren are making their first visits to Taiwan, demonstrating support for Taiwan through concrete action. On behalf of the people of Taiwan, I extend my sincerest welcome and appreciation. I would also like to take this opportunity to thank the European Parliament for continuing to pay close attention to peace and stability across the Taiwan Strait. Just last month, the European Parliament adopted resolutions with regard to annual reports on the implementation of the European Union’s Common Foreign and Security Policy and Common Security and Defence Policy. These resolutions reaffirmed the EU’s steadfast commitment to maintaining the status quo across the Taiwan Strait. The European Parliament also condemned China for continuing to take provocative military actions against Taiwan and emphasized that Taiwan is a key democratic partner in the Indo-Pacific region. It called on the EU and its member states to continue working closely with Taiwan to strengthen economic, trade, and investment ties. Once again, I thank the European Parliament for voicing support for Taiwan. Just as MEPs Pozņaks and Timgren are visiting Taiwan to strengthen Taiwan-EU exchanges, our Minister of Economic Affairs Kuo Jyh-huei (郭智輝) also led a delegation to Europe last year, marking the first in-person dialogue between high-ranking economic and trade officials of Taiwan and the EU. Moving ahead, we look forward to bringing Taiwan-EU ties even closer and to diversifying our cooperation. The EU is Taiwan’s largest source of foreign investment. Both sides are highly complementary in such areas as semiconductors, AI, and green energy. Through our joint efforts, we can create more resilient supply chains for global democracies and further contribute to global prosperity and development. Looking ahead, I hope that MEPs Pozņaks and Timgren will continue to make the case in the European Parliament for the signing of a Taiwan-EU economic partnership agreement. This would not only yield mutually beneficial development, but also consolidate economic security and boost international competitiveness for both sides. In closing, I am sure that you will gain a deeper understanding of Taiwan through this visit. Please feel welcome to come back as often as possible as we continue to elevate Taiwan-EU ties.  MEP Pozņaks then delivered remarks, saying that it is a great honor to be here and thanking everybody involved in arranging this trip that allows them the opportunity to better know Taiwan. He added that it is definitely not the last time they will be here, as Taiwan is a very beautiful country. MEP Pozņaks mentioned that he comes from Latvia, and despite their being on the other side of the world, they know how the Taiwanese people feel, because they also have a big neighbor who is claiming that Latvia belongs to them. Unfortunately, he said, there is already war in Europe, but he is confident that their situation is similar to Taiwan’s, adding that they have a neighbor who uses disinformation attacks. MEP Pozņaks said that we live in very challenging times, and that our choices will define the future of the world, asking whether it will be a world where the rule of law prevails or where physical power and aggression succeeds. Coming from a small country, he said he clearly understands that for them there is no other possibility; they must protect the world where the rule of law prevails. That is why now, he emphasized, it is very crucial for all democracies around the world to stick together to protect our freedoms, values, and democracy. MEP Timgren then delivered remarks, thanking President Lai for meeting with them and saying it is a big honor. Noting that they arrived here two days ago and that while she really loves Taiwan, its food, and the good weather, she stated that the reason they are here is because of the values that we share, our good relationships, and solidarity with other democratic countries in the world, which is important for them in Europe and in Sweden. MEP Timgren, referring to MEP Pozņaks’s earlier remarks, said that they face a big threat from Russia that is discernible even in the European Parliament. Actually, she pointed out, there is a war inside Europe that shows us how important it is that we support one another. She said that the Russian people thought it would be easy to take over Ukraine, but it was not, because all European countries stepped up and provided weapons and support. And that is why, MEP Timgren said, it is important that democratic countries maintain good relationships and let China and Russia see that we have good relationships, because a part of defense is solidarity. In closing, she expressed her gratitude for having the honor to be here in this beautiful country.

    Details
    2025-05-20
    President Lai hosts state banquet for President Surangel Whipps Jr. of Republic of Palau
    On the evening of May 20, President Lai Ching-te, accompanied by Vice President Bi-khim Hsiao, hosted a state banquet at the Presidential Office in honor of President Surangel Whipps Jr. of the Republic of Palau and his wife. In remarks, President Lai said that he looks forward to working closely with President Whipps to promote tourism exchanges and sports cooperation so that Taiwan and Palau shine brightly together on the international stage. A translation of President Lai’s remarks follows: It is a pleasure to host this banquet tonight at the Presidential Office for President Whipps, First Lady Valerie Whipps, and the esteemed members of their delegation. Welcome to Taiwan. During my trips to Palau in 2022 and last year, President and First Lady Whipps received me with great hospitality. Wearing my island shirt, I enjoyed a very friendly reception from the people of Palau. It felt warm and friendly, just like being welcomed back home. The first time I visited Palau, President Whipps and I piloted a boat to the Milky Way lagoon. We both tried volcanic mud facial masks. We also fished together and enjoyed the breeze as we walked on the beach. Last year, on my second visit to Palau, I was honored to be invited to address the National Congress. I also observed the results of the close bilateral cooperation between our two nations. Due to its world-famous ocean scenery, Palau is sometimes referred to as “God’s aquarium.” And it is even possible to snorkel with sharks. It leaves a deep impression. Nothing compares to seeing Palau firsthand. During the COVID-19 pandemic, Taiwan and Palau launched a travel bubble that created a safe means of travel. Now, with the pandemic behind us, I hope that even more Taiwanese can tour Palau and gain a greater understanding of our diplomatic ally. In addition to tourism exchanges, I mentioned on my visit to Palau last year that I hoped Taiwan and Palau could promote sports cooperation by providing training away from home. Next month, Palau will be holding the Pacific Mini Games. And right now, Palau’s national baseball and table tennis teams are holding training sessions here in Taiwan. We will do our utmost to support Palau’s national players and we hope they stand out and achieve outstanding results in the events. I look forward to working closely with President Whipps so that Taiwan and Palau shine brightly together on the international stage. Thank you! Mesulang! President Whipps then delivered remarks, saying that it is truly an honor to be here once again one year after President Lai’s inauguration. Mentioning that this is his first state visit after being reelected to a second term, he said that it is important to be here among friends, and that we are more than friends, we are family. He thanked President Lai for the generous words and, most importantly, Taiwan’s enduring support. He remarked that our relationship continues to get stronger in each passing year. President Whipps said that President Lai’s diplomacy initiative, leadership, and vision deeply resonate with them. Diplomacy must be rooted in our shared values, he said, and an unwavering support for our allies and a commitment to a sustainable, inclusive development are all deeply appreciated by their people. President Whipps emphasized that, as we look into the future and the challenges that we face, from security to climate change, it is so important that we are united. He added that it is important for the world, and especially important for them in Palau, that they stand up for Taiwan, so that Taiwan can participate on international fora that address climate change, security, and health, because they know the world is better when Taiwan has a seat at the table. Mentioning that Palau will host the Pacific Islands Forum next year, President Whipps said that Palau remains committed to working closely with Taiwan to ensure a successful event, and that they will continue to speak up for Taiwan’s indispensable contributions as we stand together against any efforts to silence or isolate democratic partners. President Whipps said that our nations have navigated challenges and emerged stronger, bound by a partnership that is built on trust, respect, and hope for a better world. Whether it is in clean energy, education, smart medicine, or tourism, our shared journey is just beginning, he said, and we are stronger together.  Also in attendance at the banquet were Palauan Minister of State Gustav Aitaro, Minister of Public Infrastructure and Industries Charles Obichang, Minister of Human Resources, Culture, Tourism and Development Ngiraibelas Tmetuchl, Senate Floor Leader Kerai Mariur, House of Delegates Floor Leader Warren Umetaro, High Chief of Ngiwal State Elliot Udui, Governor of Peleliu State Emais Roberts, and Governor of Koror State Eyos Rudimch.

    Details
    2025-05-20
    President Lai and President Surangel S. Whipps, Jr. of Palau hold bilateral talks and witness signing of cooperation agreements  
    On the afternoon of May 20, following a welcome ceremony with military honors for President Surangel S. Whipps, Jr. of the Republic of Palau and his wife, President Lai Ching-te, accompanied by Vice President Bi-khim Hsiao, held bilateral talks with President Whipps at the Presidential Office. The two leaders also jointly witnessed the signing of a technical cooperation agreement and an agreement on diplomatic staff training cooperation. In remarks, President Lai thanked Palau for standing firm in its backing of Taiwan’s international participation as geopolitical tensions continue to increase in the Pacific region. He added that he looks forward to the cooperative ties between Taiwan and Palau continuing to expand into even broader areas, allowing our economies and societies to further progress as we jointly advance peace, stability, and prosperity in the Indo-Pacific region. A translation of President Lai’s remarks follows: I welcome our guests to Taiwan once again. Last year on May 20, President Whipps led a delegation to attend the inauguration ceremony for myself and Vice President Hsiao. I am delighted, on the anniversary of my first year in office, to meet with old friends of Taiwan again, as President Whipps returns for this visit. Taiwan-Palau relations have grown even closer in recent years thanks to the strong support of President Whipps. In 2022, during my term as vice president, I led a delegation to Palau as a demonstration of how our nations were together boosting tourism development as we jointly faced the challenges of the COVID-19 pandemic. Every time I visit Palau, and every time I meet with President Whipps, I feel very deeply that Taiwan and Palau are like family. We are both maritime nations and share a common Austronesian heritage and culture. We are also staunch partners in upholding such values as freedom, democracy, and respect for human rights. Last December, when I went on my first overseas trip since taking office, one of the nations I visited was Palau. We celebrated the 30th anniversary of Palau’s independence and 25 years of diplomatic relations, underscoring our friendly ties. Taiwan and Palau enjoy close exchanges and cooperation in a range of areas, including climate change, education, agriculture and fisheries, healthcare, humanitarian assistance, sports, and culture. After this meeting, President Whipps and I will witness the signing of a technical cooperation agreement and an agreement on diplomatic staff training cooperation, demonstrating once again our diverse collaboration and strong friendship. I believe that by working together, Taiwan and Palau can contribute to each other’s development and overcome the regional and global challenges we currently face. In particular, as geopolitical tensions continue to increase in the Pacific region, Palau has wisely and courageously upheld democratic values and stood firm in its backing of Taiwan’s international participation. Palau has never stopped voicing support for Taiwan, including at the United Nations General Assembly, the World Health Organization, the UN Framework Convention on Climate Change Conference of the Parties, and the UN Ocean Conference. We have been deeply moved by this support. I thank President Whipps again for his high regard and support for Taiwan. I look forward to the cooperative ties between our nations continuing to expand into even broader areas. This will allow our economies and societies to further progress as we jointly advance peace, stability, and prosperity in the Indo-Pacific region. President Whipps then delivered remarks, saying that it is a great honor for him to be here, standing in this historic place – a symbol of strength, resilience, and the democratic spirit of the Taiwanese people. On behalf of the government of Palau, President Whipps extended heartfelt gratitude to President Lai and the people of Taiwan for the warm welcome and gracious hospitality toward him and his delegation. President Whipps then extended sincere thanks for President Lai’s visit to Palau in December – his second visit to Palau – and for having Minister of Foreign Affairs Lin Chia-lung (林佳龍) attend his inauguration as a special envoy. He added that this also marks his third visit to Taiwan since President Lai took office, saying that this demonstrates the strength of our growing relationship. President Whipps indicated that the increased engagements and numerous entrepreneurs that President Lai has brought from Taiwan to Palau have resulted in fruitful visits, and that President Lai’s leadership represents hope, unity, and continued advancement of democracy and freedom, not only for Taiwan, but for the broader Indo-Pacific region. President Whipps went on to say that this visit to Taiwan reaffirms our deep friendship and shared values between our two nations. He emphasized that Palau and Taiwan are bound not by proximity, but by purpose, in that both are island nations and believe in human dignity, the rule of law, and the right of our people to determine their own futures. President Whipps stated that although we are celebrating 26 years of diplomatic relations, Taiwan has been a steadfast partner of Palau for decades, and that one of the MOUs they are signing further extends the relationship that began in December of 1984. From healthcare and medical missions, to education, agriculture, renewable energy, infrastructure, the private sector, tourism development, and climate resilience, he said, our cooperation has improved lives and strengthened our communities. The president also indicated that during the COVID-19 pandemic, Taiwan stood with Palau, noting that both sides began the tourism bubble, and that President Lai came to Palau to reopen the two weekly direct flights that have now been increased to four. That solidarity will never be forgotten, he said. As the world faces growing uncertainty and complex challenges from climate change to global tensions, President Whipps said, this friendship becomes even more vital. The president concluded his remarks by expressing hope that both nations continue to stand together, work together, and advocate together for peace, prosperity, and for the right of small nations to be seen, heard, and respected. After the bilateral talks, President Lai and President Whipps witnessed the signing of the technical cooperation agreement and the agreement on diplomatic staff training cooperation by Minister Lin and Palauan Minister of State Gustav Aitaro. The delegation also included Palauan Minister of Public Infrastructure and Industries Charles Obichang, Minister of Human Resources, Culture, Tourism and Development Ngiraibelas Tmetuchl, Senate Floor Leader Kerai Mariur, House of Delegates Floor Leader Warren Umetaro, High Chief of Ngiwal State Elliot Udui, Governor of Peleliu State Emais Roberts, and Governor of Koror State Eyos Rudimch.  

    Details
    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

    Details
    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Husband and Wife Each Sentenced to 12 Months in Prison for Covid Fraud

    Source: Office of United States Attorneys

    TRENTON N.J. – A New Jersey and Florida husband and wife were sentenced to 12 months in prison for fraudulently obtaining approximately $790,000 in federal Economic Injury Disaster Loans (EIDL) loans, U.S. Alina Habba announced.

    Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Palm Beach Gardens, Florida, previously plead guilty before U.S. District Judge Robert Kirsch to informations charging the couple with wire fraud and money laundering. Judge Kirsch imposed the sentences in Trenton federal court.

    According to documents filed in this case and statements made in court:

    From in or around June 2020 through August 2020, Valteri and Haxhillari participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue but were actually shell companies with no business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain.

    U.S. Attorney Habba credited special agents of the FBI, Newark Field Office under the direction of Special Agent in Charge Terrence G. Reilly; special agents of Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jenifer Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents from the Small Business Administration, Office of the Inspector General under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.

    The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

    The government is represented by Assistant U.S. Attorneys Fatime Meka Cano and Aja Espinosa of the Economic Crimes Unit in Newark.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

                                                                           ###

    Defense counsel: William Tunkey, Esq. and Joseph Nascimento, Esq. 

    MIL Security OSI –

  • MIL-OSI USA: State-local partnerships lead to 6,700 arrests, 4,800 stolen vehicles recovered, reducing crime in key areas

    Source: US State of California 2

    May 27, 2025

    What you need to know: Since Governor Newsom launched the joint law enforcement efforts in Bakersfield, Oakland, and San Bernardino, officers have conducted 6,727 arrests, recovered 4,842 stolen vehicles, and confiscated 313 illicit firearms, reducing crime in regions statewide.

    Sacramento, California – Continuing to put public safety first in communities throughout California, Governor Gavin Newsom today announced the ongoing joint law enforcement operations in Bakersfield, Oakland, and San Bernardino have yielded 6,727 arrests, recovered 4,842 stolen vehicles, and confiscated 313 dangerous firearms.

    At the direction of Governor Newsom and through state, county, and city partnerships, the California Highway Patrol began saturating high-crime areas in 2024 to reduce roadway violence and criminal activity. 

    Crime trends before and after these operations began point to a reduction in crime in Oakland, a decrease in homicides and shootings in Bakersfield, and an increase of arrests and recovered stolen vehicles in San Bernardino.

    I am proud of the CHP Officers, who continue to serve their communities, deter crime, and hold bad actors accountable. Their partnership with local law enforcement has helped to bring a sense of safety to communities across the state and exemplifies California’s commitment to  putting the public’s safety first.

    Governor Gavin Newsom

    Bakersfield

    Following the launch of the CHP partnership in April 2024, the city of Bakersfield experienced notable changes in crime trends. The joint enforcement operation had led to 3,315 arrests, including 680 felony arrests, 1,174 stolen vehicles recovered, and 87 firearms seized. The city of Bakersfield announced that 2024 was its safest year since 2021, showing a 57% drop in homicides and 60% fewer shootings compared to previous years.

    In over a year of partnership, state and local law enforcement in the area have cracked down on crime, including using their aerial suppression team to assist ground units with apprehending fleeing suspects. 

    Oakland

    By the end of 2024, the city of Oakland had dramatically reduced crime in all categories, with an overall reduction of 34%, compared to the previous year. Preliminary data from January 1 to December 22, 2024, indicated a 25% decrease in robbery, a nearly 50% drop in burglary, and a 33% decline in motor vehicle theft year-over-year. Since the joint efforts began in February 2024, officials have made 2,101 arrests, 1,504 of those felonies, recovered 3,578 stolen vehicles, and confiscated 192 illicit firearms. 

    CHP officers have worked with local area police to keep neighborhoods safe in the past 15 months, including an arrest on multiple felony charges, an arrest with gun and cocaine following a foot chase, and a multimonth investigation to crack down on an organized retail theft ring and the recovery of stolen merchandise valued at more than $779,000.

    San Bernardino

    Since October 2024, when the collaborative law enforcement effort began in the area, CHP officers have helped clamp down on property theft and violent crime, including gun violence. Officials have arrested 1,311 individuals, including 249 for felony conduct, seized 90 stolen vehicles and removed 34 illicit firearms. The CHP’s operation also adds special law enforcement units on the ground and in the air — specifically targeting sideshow activities and stolen vehicles using high-tech camera technology. This advanced camera network in the region allows law enforcement agencies to identify vehicle attributes beyond license plate numbers, enabling the CHP, local law enforcement, and allied agencies to search for vehicles suspected to be linked to crimes and receive real-time alerts about their movement. Similar efforts have been used to fight crime in the Bay Area.

    Through continued partnerships with the San Bernardino Police Department, CHP officers in the past 7 months have made significant improvements to community safety, including reducing theft, violent crime, and gun violence in the region.

    Recent data suggests violent and property crime went down in key areas in 2024. According to an analysis of Real Time Crime Index data by the Public Policy Institute of California, property crime dropped by 8.5% and violent crime dropped by 4.6% in 2024, compared to 2023. Burglary and larceny also went down by 13.6% and 18.6%, respectively, compared to pre-pandemic levels. 

    Stronger enforcement. Serious penalties. Real consequences.

    In April, Governor Gavin Newsom announced the results from $267 million in grants to 55 communities to hire more police and secure more felony charges against suspects. Proposed by the Governor and distributed by the Board of State and Community Corrections (BSCC), program participants collected data on arrests, referrals, charges, convictions, and sentencing related to organized retail crime. From October 2023 to December 2024, 88% of the 373 organized retail theft convictions were felonies. 

    Last year, Governor Newsom signed into law the most significant bipartisan legislation to crack down on property crime in modern California history. Building on the state’s robust laws and record public safety funding, these bipartisan bills establish tough new penalties for repeat offenders, provide additional tools for felony prosecutions, and crack down on serial shoplifters, retail thieves, and auto burglars.

    California has invested $1.1 billion since 2019 to fight crime, help local governments hire more police, and improve public safety. In 2023, as part of California’s Public Safety Plan, the Governor announced the largest-ever investment to combat organized retail crime in state history, an annual 310% increase in proactive operations targeting organized retail crime, and special operations across the state to fight crime and improve public safety.

    Recent news

    May 26, 2025

    News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring May 26, 2025, as “Memorial Day.”The text of the proclamation and a copy can be found below: PROCLAMATIONOn Memorial Day, we remember those who laid down their lives in defense of…

    May 23, 2025

    News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Andrew “Tristan” Peery, of Sacramento, has been appointed Senior Product Manager at the Office of Data and Innovation. Peery has been Director of Web and Interactive Communications at…

    May 23, 2025

    News What you need to know: The City of Tustin received a new water treatment system filtering “forever chemicals,” or PFAS, from local drinking water. TUSTIN – As the federal government announces plans to weaken regulation of “forever chemicals” in drinking water,…

    MIL OSI USA News –

  • MIL-OSI Economics: Philip R. Lane: Interview with Frankfurter Allgemeine Zeitung

    Source: European Central Bank

    Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Christian Siedenbiedel on 20 May 2025

    27 May 2025

    Mr Lane, inflation rates in the euro area have fallen sharply since autumn 2022. Has inflation been beaten?

    As you say, inflation rates were temporarily above 10 per cent in 2022. Over the past two years, we have focused on bringing inflation back down to 2 per cent. This task has now mostly been completed. I am saying “mostly” because some final steps still need to be taken. For example, services inflation is still too high. But we expect it to decline in the coming months, as we think wage inflation is coming down. So the disinflation from the high inflation of 2022 is on track – but unfortunately new challenges are emerging.

    Over what time frame are you expecting the inflation rate to sustainably meet the ECB’s 2 per cent target?

    Recently, the inflation rate in the euro area stood at 2.2 per cent, which isn’t so far from our 2 per cent target. I believe that the inflation rate will remain in a zone close to 2 per cent in the coming months. But part of your question is about whether this will be on a sustained basis. And this is where we have to work out whether new challenges, in particular those to do with trade policy, could cause an inflation issue in either direction.

    Many people have the feeling that they are noticing inflation much more in the supermarket. What do you say to them?

    It is not unfounded. Food inflation remains well above 2 per cent – currently around 3 per cent. For unprocessed food, for example fruit and vegetables, it is even close to 5 per cent. So this perception is correct: “supermarket inflation” is higher than the general inflation rate. But this is offset by other developments, such as energy prices. Goods price inflation is also below the current headline inflation rate.

    How much is the reduction in inflation really down to the ECB – and to what extent is it simply a consequence of the sharp rise and subsequent fall in energy prices?

    This time is different from the 1970s. At that time, many central banks didn’t manage to convince people that inflation would fall again – although the Bundesbank did better than others. People expected inflation to remain high. This time around we made it clear that the ECB would deliver on price stability. Through our monetary policy, we have prevented double-digit inflation from getting entrenched. So we played our part and ensured that this period of high inflation remained temporary. Due to our intervention, fluctuations in energy prices have not led to a permanent surge in inflation.

    What impact do you expect Donald Trump’s tariffs to have on inflation in the euro area?

    This has been the subject of intense debate since the election in November. Several factors play a role: first, the exchange rate between the US dollar and the euro. Many expected that tariffs would weaken the euro. So far, however, the opposite has occurred. Second, the tariffs have an impact on global economic growth; the slowdown has pushed down oil and gas prices, and this was not in the initial discussion but is proving important. And third, with respect to trade between the United States and China, China is likely to export less to the United States and more to Europe. So there are a number of factors that could lead to lower inflation in the euro area. But we also have to keep in mind that we don’t know the outcome of the negotiations between the EU and the United States.

    At this point, is it possible to predict what’s ultimately going to happen?

    The outcome is still quite open at the moment. For the time being, there are some factors that tend to support a drop in euro area inflation. However, the picture could shift if, for example, the negotiations between the EU and the United States fail, with the United States imposing higher tariffs and the EU implementing counter tariffs. Supply chains could also be disrupted – this could drive up inflation.

    Are there differences between short-term and long-term effects?

    I would actually distinguish between three time horizons: short term, medium term and long term. In the coming months, in other words for the remainder of 2025, the inflation rate is expected to be close to target. Over the medium term, the impact of US tariffs on inflation could materialise, including through the exchange rate and energy prices. Looking further ahead to the long term, analysts and financial markets are reasonably confident that inflation will return to the ECB’s target. The main focus of the ECB’s monetary policy is on the medium-term horizon: that is to say, one or two years ahead.

    Is there any reason to be concerned that people’s inflation expectations could rise more quickly again because the experience of very high inflation is still so recent?

    As a directional statement, I agree. Before the pandemic, many were convinced inflation would stay very low. The high inflation episode was a painful reminder that inflation can arise. But such a combination of extraordinary events – the pandemic, Russia’s war in Ukraine – is very rare. The more concrete question for us is: could a world of shocks relating to structural changes – arising from challenges to globalisation, increased automation, changing demography – push inflation noticeably below or above 2 per cent, and how responsive will inflation expectations be? Part of our job will be to make sure expectations remain anchored, that people have the reassurance that if inflation moves away from 2 per cent we will bring it back.

    What impact do the current labour shortages and low unemployment have on inflation?

    There is certainly a difference compared with the pre-pandemic period. That’s why I don’t think we will return to inflation rates that are as low as they were back then. When unemployment is low, firms and employees are more likely to settle on wage increases – perhaps around 3 per cent on average in the euro area. This is a normalisation and, allowing for rising labour productivity, makes our 2 per cent target more credible. But I do not see any signs of a wage-price spiral at present, and this also applies to Germany.

    In Belgium, wages are, in part, directly bound to inflation. Has that added to inflation there?

    During the period of high inflation, wages rose rapidly in Belgium but, as inflation fell, wage growth slowed down quickly again. In Germany, there was a different pattern: it took longer for wages to go up. But there is no major difference when looking at the average over three to five years.

    Do you think it is possible that the new protectionism will lead to deglobalisation in the longer term, resulting in structurally higher inflation rates?

    It is important to differentiate between temporary and permanent effects. For many firms the business model is connected to globalisation. A phase of deglobalisation could initially dampen economic growth, which would make it more likely that inflation rates would fall. Following that transition, inflation and its volatility could increase as the offsetting effect of favourable imports fades. It could mean that, as a central bank, we have to be more active in our policy responses to return inflation to 2 per cent over the medium term.

    The Federal Reserve fears that US tariffs could lead to transitory, i.e. temporary, inflation. Would it leave inflation in the euro area unaffected if US rates rise?

    The world needs the Federal Reserve to maintain price stability for the United States. If this means high US interest rates, it can lead to a stronger dollar and thereby somewhat higher inflation for Europe in the short term. In the medium term, however, high US interest rates mostly hold back the global economy – which tends to lead to lower inflation in the euro area. There are always some spillover effects.

    What does all this mean for the ECB’s interest rate policy?

    We need to find a middle path. If we keep interest rates too high for too long, the disinflation pressure of US tariffs could cause inflation rates to fall below our target. If we cut too much and too quickly, a strengthening economy and other factors could drive inflation back up. This is why we will pay close attention to the data in our next meetings. If we see signs of further falling inflation, we will respond with further interest rate cuts – but the range of discussion is not that wide: no one is talking about dramatic rate cuts. We are in a zone of normal central banking.

    Are the key ECB interest rates now in the neutral range?

    The neutral interest rate can only be estimated and it is a long-term concept. In the long term, the neutral interest rate could be around where we are now. But the world is not in equilibrium and the appropriate interest rate may be different in the short term. I would differentiate between the three policy rate zones: a clearly restrictive one with rates say in the high twos or above; and a clearly accommodative one – for the sake of discussion, say rates below 1.5 per cent are clearly accommodative. Going there would only be appropriate in the event of more substantial downside risks to inflation, or a more significant slowdown in the economy. I do not see that at the moment. And there is a zone in between, where it is more of a question of cyclical management. We are navigating in that zone at the moment. This is the focus of the discussions at the ECB.

    Can the ECB be indifferent to exchange rate developments when there is a sharp depreciation of the dollar, like at the moment? Unlike the Bundesbank in the past, you aren’t pursuing an official exchange rate policy…

    The exchange rate is of course an important factor in the development of inflation, even if we do not pursue an explicit exchange rate policy. However, most trade in the euro area takes place between countries sharing the euro as a common currency and, therefore, the exchange rate does not play a role. Trade with the United States and other regions of the world is important but it’s not the dominant factor. At the same time, we need to look at the impact of exchange rate shifts in a situation like we have now.

    Do you think that the euro could replace the US dollar as the world’s reserve currency as a consequence of the unreliable economic policies of the United States?

    I think the question whether the euro should overtake the US dollar is not so important. I can imagine that the euro will become more important as a reserve currency in the current situation. In the first decade of the euro, there was an optimism that we would no longer live in a world with a single world currency, the dollar. Now, the United States is facing all kinds of questions about its role in the world economy. The natural second currency is the euro. It is well placed to gain a bigger share of the market. This could be supported by further European integration – to put the euro on a firmer foundation.

    In your estimation, how great is the risk that we will now see more frequent waves of inflation, like those seen recently?

    The specific circumstances of the last wave of inflation will probably not be repeated quickly. Something like that occurs at most every few decades. Nevertheless, I also consider very low inflation rates, like those before the pandemic, to be unlikely in the current circumstances where there are so many upheavals and changes. There could be more external shocks and fluctuations in inflation rates than in the past. That means that we have an important job to do at the ECB. We may need to become even more active than before in adjusting our policy to the incoming shocks.

    MIL OSI Economics –

  • MIL-OSI USA: Farewell Remarks by CFTC Commissioner Christy Goldsmith Romero: The Future of Financial Services Regulation

    Source: US Commodity Futures Trading Commission

    Remarks as Prepared for Delivery 
    Thank you to Brookings for inviting me to give my farewell remarks as I depart from the Commission and retire from 23 years of federal service.  For the last time, I will give the disclaimer that my views are my own as a Commissioner and do not necessarily reflect the views of the Commission or my fellow Commissioners.
    I have been reflecting on my public service under four Presidents and today I am feeling nostalgic.  I have had such a good run.  I want to express my gratitude to so many.  First and foremost, I’m grateful to my wife and children.  I am grateful to President Biden and President Obama for believing and trusting in me with three Presidential nominations.  I’m grateful to those Senators in both parties who have actively supported me and unanimously confirmed me twice.  I am grateful to the leaders with which I have had the privilege to serve, including my fellow Commissioners.  I am also grateful to all my staff, the hundreds of people who have worked for me and put their trust in my leadership.
    Never could I have planned or envisioned such a meaningful and fulfilling career.  All I knew was that I was following my passion to make a difference in our financial system.  I have always wanted our financial system to serve everyone, not just powerful interests.  And along the way, I learned from each of the leaders I worked for—my SEC enforcement leaders, SEC Chairs Chris Cox and Mary Schapiro, and at Treasury, Neil Barofsky, the first Special Inspector General for TARP (or SIGTARP) before me.
    Never could I have imagined that my work would get the notice of President Obama who appointed me as the SIGTARP in 2012.  I can share that it was entirely daunting to be a 41-year-old career staffer sitting on the same Senate Banking confirmation panel with Jay Powell.  Of course, that meant that I did not get many questions.
    But don’t worry.  Senate Banking would make up for that this past summer when I got two plus hours of questions in my confirmation hearing for FDIC Chair.
    At SIGTARP, I was forged by fire, as were all of us who worked to strengthen the financial system in the wake of the 2008 financial crisis.  Former FDIC Chair Sheila Bair supported me for FDIC Chair this summer drawing on the work that we did during the financial crisis.  Last year, I was at Treasury and ran into former Secretary Paulson who remembered me and said, “Those were the days.  Look at what we did for the economy.”
    SIGTARP is also where I honed my leadership of white-collar law enforcement.  We worked closely with DOJ to bring justice and accountability to just about every major Wall Street financial institution and 465 criminal defendants.  This includes 76 bankers who courts sentenced to prison for crisis-related crimes.
    I continue to feel tremendous affection and gratitude to all those who served at SIGTARP as I learned invaluable lessons about how to lead an organization. SIGTARP is where I found my voice and the courage to speak truth to power.  It was a necessity when testifying before Congress and meeting with Treasury Secretaries, the Federal Reserve Chair, the FDIC Chair, and Attorneys General.
    As SIGTARP was winding down, I was fortunate to be contacted by several Senators and President Biden’s White House about a possible next appointment.  Various financial regulators were discussed.
    I raised the possibility of the CFTC.  First, I had always enjoyed being a market regulator.  Second, I was interested in climate-related financial issues, and the Chairman had sponsored a climate report and was speaking a lot on climate issues.  Third, the CFTC was the only regulator of cryptocurrency trading, and I had been teaching cryptocurrency regulation at two law schools.  As a Commissioner, I was pleased to prioritize all three of these areas, broadening crypto out to technology, as I sponsored the Technology Advisory Committee.
    The accomplishment that I am most proud about in my tenure is that derivatives markets worked well, that they remained resilient, vibrant, and had integrity.  Since my testimony at my CFTC confirmation hearing in 2022, I have always said that ensuring that markets worked well would be my highest priority.  This was so critical because the markets the CFTC regulates tie directly to the economy. That tie is something that I have had the privilege to see firsthand.  What incredible experiences I have had to get out of Washington and go on agriculture tours and energy tours, to meet with people who are feeding and fueling our world. To truly understand the way markets work, you have to engage with those who rely on the markets and who need them the most.
    I’m also proud of the Technology Advisory Committee for its work on future of finance issues.  I’m grateful to the Committee members who we picked because they are well regarded experts in cryptocurrency, stablecoins, blockchain, AI, cyber, and Fintech, and who come from all different viewpoints.  We held public forums, and the Committee issued two landmark reports, the first on Decentralized Finance, and the second on Responsible AI in Financial Markets.
    As I contemplate the future of financial services regulation, my thoughts keep returning to an area that I speak a lot about—promoting market resilience.  Resilience is defined as the ability to bounce back quickly from setbacks.  U.S. markets and global markets have and will continue to experience periods of volatility and stress.
    I arrived at the Commission in early 2022, in a time of geopolitical uncertainty.  The economy was recovering from the pandemic, suffering supply chain disruption, and oil and gas markets were at record-high levels of volatility and prices after the start of Russia’s war with Ukraine.
    Fortunately, what I found was that the post-crisis reforms through the Dodd Frank Act, other regulations, and regulatory supervision, have built up resilience.  As a result, our markets have withstood significant stress and volatility, including last month.  Our economy has been better for it.
    As the current Administration pursues a deregulatory agenda in the name of growth, care should be taken not to remove the load-bearing resilience built into markets—resilience that has resulted in financial stability and protected our economy. Regulators should not have to sacrifice growth for financial stability.  These are not mutually exclusive goals.  Regulators should promote both.  Growth is important for markets.  Growth requires a regulatory environment where markets are financially stable and resilient during times of volatility, uncertainty, and stress.
    I am concerned about big swings between more regulation and deregulation with each change of party in the White House.  This leads to uncertainty in markets.  It would be better for our markets and financial system if regulators could follow a steady, consistent path.  That would create the foundation for a resilient, stable, and vibrant financial system and economy.
    It’s a really tough challenge—one that requires independent regulators engaging with each other on a bipartisan basis and engaging with many stakeholders who use and need U.S. markets.  I plan to continue to share my voice, and I will always be rooting for the CFTC.  After all, you can take the girl out of public service.  But you can’t take public service out of the girl.

    MIL OSI USA News –

  • MIL-OSI USA: Man Charged in Connection With CARES Act Loan Fraud

    Source: United States Small Business Administration

    Click Here to View the Original U.S. Department of Justice (DOJ) Press Release

    The United States Attorney’s Office for the District of Colorado announces that Joseph Ronald Trenkle, 54, formerly of Cherry Hills Village, Colorado and currently of Dorado, Puerto Rico, has been charged in a criminal information with one count each of wire fraud and money laundering.

    According to the information, between April 30, 2020, and February 25, 2022, Trenkle applied for and received $1,850,000 in COVID-19 Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and $2,999,995 in Paycheck Protection Program (PPP) funds from an SBA-approved lender.  The information alleges that after first obtaining an EIDL loan in March 2020, Trenkle made two requests to increase the amount of his EIDL and made false representations as part of each of request.  The information further alleges that Trenkle submitted two fraudulent PPP loan applications, and also submitted fraudulent applications for PPP loan forgiveness for each PPP loan.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic.  The CARES Act created the PPP, a program administered by the SBA that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.  Additionally, the CARES Act authorized the SBA to provide EIDLs to eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic.

    The defendant made his initial appearance on May 22, 2025, in Denver in front of Magistrate Judge Cyrus Y. Chung.

    The charges contained in the information are allegations and the defendant is presumed innocent unless and until proven guilty.

    This case is being investigated by the Federal Bureau of Investigation, Federal Deposit Insurance Corporation Office of Inspector General, Internal Revenue Service Criminal Investigation, and Small Business Administration Office of Inspector General.  The case is being prosecuted by Assistant United States Attorney Craig Fansler.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

    Case Number: 25-cr-00150-RMR

    MIL OSI USA News –

  • MIL-OSI Global: Canada has a chance to lead on AI policy and data governance at the 2025 G7 Leaders’ Summit

    Source: The Conversation – Canada – By E. Richard Gold, Professor of intellectual property and innovation, Faculty of Law and Faculty of Medicine and Health Sciences, McGill University

    The 2025 G7 Leaders’ Summit will be held in Kananaskis, Alta., from June 15 to 17. As host of the G7, Canada has a chance to shape rules that will govern AI globally. (Shutterstock)

    Artificial intelligence (AI) is rapidly transforming sectors from health care to climate science. But amid the global scramble to lead this technological revolution, one truth is becoming clearer: data, its platforms and its circulations, have become critical infrastructure. And Canada, poised to host this year’s G7 Leaders Summit, has a rare opportunity to shape the rules that will govern AI globally.

    Under the leadership of Prime Minister Mark Carney, the federal government elevated AI and digital innovation to a central pillar of national policy, and appointed Evan Solomon as minister of artificial intelligence and digital innovation. But ambition is not enough — Canada must now back its rhetoric with action that resonates at home and abroad.

    Infrastructure intelligence

    While AI headlines often focus on breakthroughs in generative models and robotics, the real engine of progress lies in less glamorous terrain: computing infrastructure and data systems.

    Canada’s proposal to build “next-generation data centres” is about creating the backbone for globally competitive and ethically governed AI. Without these facilities, modern AI systems cannot be trained, validated or deployed responsibly.

    AI models — like those used in medicine for developing new drugs and health services, clean technologies such as clean energy and carbon-capture or materials science — require enormous computational power and massive datasets. That data must be structured, validated and — to the extent possible — open to those who can use it.

    Quality assurance

    Our recent study underscores that the future of AI depends less on algorithmic cleverness and more on data quality and accessibility. Poorly labelled or fragmented datasets can introduce bias, reduce model performance or even endanger lives when used in health or safety applications.

    Yet across many domains, useful data remains siloed and locked in proprietary formats, lacking documentation or inaccessible due to legal and technical barriers. This status quo serves monopolies, not society.

    Canada holds the G7 presidency in 2025, and can provide leadership in data governance and AI innovation. A central priority should be to rally partners around a framework for ethical, accessible and well-designed datasets, especially in fields like health, climate science and materials research.

    Tailored data

    Our call for open data isn’t one-size-fits-all. It must be tailored to the needs of specific sectors:

    • Health-care AI requires anonymized patient data, genomic sequences, protein structure data, toxicology and carcinogen data, and drug response datasets.

    • Climate AI needs long-term environmental records, satellite imagery, power and water use information and real-time emissions data.

    • Materials science AI demands chemical interaction data, physical testing results, structural data and thermodynamic properties.

    What binds these fields is a common challenge: ensuring data is ethically sourced, high-quality, and useable across borders and institutions. Canada’s role should be to help build the platforms — digital, legal and diplomatic — that make this possible.

    A G7 mandate

    As host of the G7 in June, Canada can push for a transformative international commitment. At a minimum, this should include:

    1. Common standards for open datasets, co-designed with input from AI developers, health professionals, climate researchers, materials scientists and legal experts.
    2. Trusted data hubs, managed by public-private or non-profit entities, ensuring secure storage, privacy safeguards and public access.
    3. Legal and diplomatic co-ordination, addressing cross-border data sharing, intellectual property constraints and ethical governance frameworks.

    These steps would position the G7 — and Canada in particular — as a champion of AI that serves democratic values on top of commercial and geopolitical interests.

    Canada’s risks and opportunities

    Canada is not starting from scratch. The country boasts leading AI research institutions, including the Vector Institute and Mila, and has pioneered open science partnerships such as the Montreal Neurological Institute’s Tanenbaum Open Science Institute and the Toronto labs of the Structural Genomics Consortium.

    Dataset platforms such as AIRCHECK(for AI-based chemical knowledge) and the CACHE competition (evaluating drug discovery models using open data), show how Canada is already putting together the building blocks of responsible AI. But the country risks squandering this advantage if it cannot scale these efforts or retain innovation domestically.

    The stalled Artificial Intelligence and Data Act is a case in point. While the European Union moved forward with its AI Act, the General Data Protection Regulation and the European Health Data Space Regulation, Canada’s legislative framework remains in flux.

    Without clear domestic rules, and a proactive global agenda, Canada could end up as an incubator for innovations that end up developed and applied elsewhere.

    Global stakes

    The AI race is not just about who builds the most powerful models. It’s about who defines the technical, ethical and geopolitical standards that shape the digital future.

    The G7 offers Canada a moment of strategic clarity. By investing in AI infrastructure and leading an international agenda on open, trustworthy AI, Canada can lead in shaping the rules.

    E. Richard Gold receives funding from TRIDENT: TRanslational Initiative to DE-risk NeuroTherapeutics, a project funded by the New Frontiers in Research Fund, application NFRFT-2022-00051. Gold is also the Chief Policy and Partnerships Officer of Conscience, a Canadian non-profit focused on enabling drug discovery and development in areas where open sharing and collaboration are key to advancement and where market solutions are limited, such as rare or neglected diseases, pandemic preparedness, and antimicrobial resistance.

    Cristina Vanberghen 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.

    – ref. Canada has a chance to lead on AI policy and data governance at the 2025 G7 Leaders’ Summit – https://theconversation.com/canada-has-a-chance-to-lead-on-ai-policy-and-data-governance-at-the-2025-g7-leaders-summit-256296

    MIL OSI – Global Reports –

  • MIL-OSI: First American Bank Highlights U.S. Manufacturing Shift

    Source: GlobeNewswire (MIL-OSI)

    Sarah M. Eikenberry, Vice President of Commercial Lending at First American Bank, explains why more U.S. manufacturers are rethinking global supply chains – and finding local solutions that offer better control, faster delivery, and new business opportunities.

    MIAMI, May 27, 2025 (GLOBE NEWSWIRE) — Reshoring – bringing production back to the U.S. – has shifted from a niche strategy to a mainstream consideration for many manufacturers. While the concept isn’t new, recent global disruptions have prompted small and mid-sized manufacturers to take action.

    Tariffs, shipping delays, geopolitical risk, and rising inventory costs have exposed vulnerabilities in global supply chains. Meanwhile, shifting customer expectations and government incentives are making U.S.-based production increasingly attractive.

    At First American Bank, we’re working directly with clients navigating this transition. Here’s why reshoring has lasting momentum.

    Control is the driving force

    For most companies, reshoring comes down to one word: control.

    When suppliers are overseas, responding to delays, managing quality, or adjusting production is limited. The pandemic made that clear. So have recent changes in tariffs, which have created confusion and delays at U.S. ports as authorities navigate new import classifications.

    More of my clients are asking: How can we reduce our risk? One answer is to bring more of the supply chain closer to home. Even though domestic production can be costlier, the increased stability and responsiveness often justifies the shift.

    You don’t need to build from scratch

    One common misconception is that reshoring requires major investment. That’s not necessarily the case.

    Contract manufacturing is opening doors for smaller companies. By partnering with U.S.-based manufacturers that already have infrastructure, companies can avoid the high costs of building their own facilities.

    We’ve seen this firsthand. A client in the medical products space recently expanded its capabilities to support both internal production and third-party contracts, creating new revenue opportunities in the process.

    Buyers care about local sourcing

    Cost will always factor into decision-making; however, it’s no longer the only consideration. Buyers increasingly value transparency, quality, and the ability to adapt quickly – all of which are benefits of U.S.-based production.

    Some clients have seen more interest at trade shows just by promoting their “Made in the USA” status. Many buyers are willing to pay more for the speed and reliability that comes with local sourcing.

    Technology is also narrowing the cost gap. Automation, AI, and leaner processes are helping reduce labor costs without compromising quality.

    Talent and training are key enablers

    As more companies bring production back home, the question naturally follows: Do we have the workforce to support it?

    Skilled labor remains a challenge in many regions, but we’re also seeing promising signs of collaboration between industry and education. Local universities around the country are connecting students with real-world manufacturing problems through capstone projects and internships. This early exposure is helping build a more prepared talent pipeline.

    At the same time, with automation reshaping roles, investing in training and local talent programs is more important than ever.

    South Florida is part of the equation

    While reshoring is often associated with the industrial Midwest, business-friendly regions like South Florida are increasingly becoming part of the conversation.

    The area has strong infrastructure for import-export activity, and organizations like the Miami-Dade Beacon Council are helping attract investment and support job growth. First American Bank has partnered with many of these local organizations with the goal of creating valuable connections for opportunity and incentives.

    A long-term shift with near-term opportunity

    Reshoring isn’t a quick fix. It’s a gradual process, and it won’t look the same for every business. But the momentum is real.

    The companies that benefit most are the ones that stay proactive: identifying parts of their operations that can be brought back, finding domestic partners, and rethinking their supply chain from both a cost and control perspective.

    At First American Bank, we help manufacturers finance equipment, expand operations, and structure credit solutions to support reshoring. If you’re considering a shift, we’re here to help you evaluate your options and build a plan that fits your goals.

    About First American Bank
    First American Bank is the largest privately held bank in Illinois, with over $7 billion in assets and 61 locations across Illinois, Wisconsin, and Florida. Family-owned and operated since the 1960s, the bank offers a full range of financial services, including personal banking, business lending, and trust and wealth management. Known for combining community bank service with large-scale capabilities, First American Bank is committed to long-term relationships, financial stability, and delivering tailored solutions that help customers thrive.

    Disclaimers:
    This information is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal, tax, and investment advisors.

    First American Bank is a MemberFDIC.

    Media Contact:
    Teresa Lee
    305-631-6400
    tlee@firstambank.com 

    The MIL Network –

  • MIL-OSI USA: Congressman Mfume, Former COVID Select Committee Democrats’ Statement on Trump Admin’s New COVID-19 Vaccine Policy

    Source: United States House of Representatives – Congressman Kweisi Mfume (MD-07)

    WASHINGTON, D.C. — Today, Congressman Kweisi Mfume (MD-07), Ranking Member Raul Ruiz (CA-25) and Representatives Deborah Ross (NC-02), Jamie Raskin (MD-08), Debbie Dingell (MI-12), Ami Bera (CA-06), Robert Garcia (CA-42), and Jill Tokuda (HI-02), formers Members of the Select Subcommittee on the Coronavirus Pandemic, released the following statement: 

    “As former ranking member, and members of the Select Subcommittee on the Coronavirus Pandemic, we express our deep concern over the Food and Drug Administration’s (FDA) recent decision to limit the approval of updated COVID-19 vaccines primarily to older adults and individuals with underlying health conditions.

    “We find it perplexing that this new guidance undermines the foundational principles of Operation Warp Speed, a program initiated under the Trump administration, which successfully accelerated the development and distribution of COVID-19 vaccines, saving millions of lives. The current policy appears to disregard the proven benefits of widespread vaccination and may hinder our nation’s ability to respond effectively to future COVID-19 variants.

    “Furthermore, the decision to require extensive clinical trials for low-risk populations could delay the availability of updated vaccines, potentially leaving millions without timely access to necessary protection. 

    “We urge the FDA to reconsider this policy change and to prioritize a science-based approach that ensures equitable access to COVID-19 vaccines for all Americans, regardless of age or health status. Maintaining robust vaccination efforts is essential to safeguarding public health and preventing future outbreaks.

    “We stand ready to work with the FDA and other stakeholders to uphold the integrity of our nation’s public health initiatives and to ensure that the lessons learned from Operation Warp Speed continue to guide our response to the ongoing pandemic.”

    ###

    MIL OSI USA News –

  • MIL-OSI Europe: Philip R. Lane: Interview with Frankfurter Allgemeine Zeitung

    Source: European Central Bank

    Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Christian Siedenbiedel on 20 May 2025

    27 May 2025

    Mr Lane, inflation rates in the euro area have fallen sharply since autumn 2022. Has inflation been beaten?

    As you say, inflation rates were temporarily above 10 per cent in 2022. Over the past two years, we have focused on bringing inflation back down to 2 per cent. This task has now mostly been completed. I am saying “mostly” because some final steps still need to be taken. For example, services inflation is still too high. But we expect it to decline in the coming months, as we think wage inflation is coming down. So the disinflation from the high inflation of 2022 is on track – but unfortunately new challenges are emerging.

    Over what time frame are you expecting the inflation rate to sustainably meet the ECB’s 2 per cent target?

    Recently, the inflation rate in the euro area stood at 2.2 per cent, which isn’t so far from our 2 per cent target. I believe that the inflation rate will remain in a zone close to 2 per cent in the coming months. But part of your question is about whether this will be on a sustained basis. And this is where we have to work out whether new challenges, in particular those to do with trade policy, could cause an inflation issue in either direction.

    Many people have the feeling that they are noticing inflation much more in the supermarket. What do you say to them?

    It is not unfounded. Food inflation remains well above 2 per cent – currently around 3 per cent. For unprocessed food, for example fruit and vegetables, it is even close to 5 per cent. So this perception is correct: “supermarket inflation” is higher than the general inflation rate. But this is offset by other developments, such as energy prices. Goods price inflation is also below the current headline inflation rate.

    How much is the reduction in inflation really down to the ECB – and to what extent is it simply a consequence of the sharp rise and subsequent fall in energy prices?

    This time is different from the 1970s. At that time, many central banks didn’t manage to convince people that inflation would fall again – although the Bundesbank did better than others. People expected inflation to remain high. This time around we made it clear that the ECB would deliver on price stability. Through our monetary policy, we have prevented double-digit inflation from getting entrenched. So we played our part and ensured that this period of high inflation remained temporary. Due to our intervention, fluctuations in energy prices have not led to a permanent surge in inflation.

    What impact do you expect Donald Trump’s tariffs to have on inflation in the euro area?

    This has been the subject of intense debate since the election in November. Several factors play a role: first, the exchange rate between the US dollar and the euro. Many expected that tariffs would weaken the euro. So far, however, the opposite has occurred. Second, the tariffs have an impact on global economic growth; the slowdown has pushed down oil and gas prices, and this was not in the initial discussion but is proving important. And third, with respect to trade between the United States and China, China is likely to export less to the United States and more to Europe. So there are a number of factors that could lead to lower inflation in the euro area. But we also have to keep in mind that we don’t know the outcome of the negotiations between the EU and the United States.

    At this point, is it possible to predict what’s ultimately going to happen?

    The outcome is still quite open at the moment. For the time being, there are some factors that tend to support a drop in euro area inflation. However, the picture could shift if, for example, the negotiations between the EU and the United States fail, with the United States imposing higher tariffs and the EU implementing counter tariffs. Supply chains could also be disrupted – this could drive up inflation.

    Are there differences between short-term and long-term effects?

    I would actually distinguish between three time horizons: short term, medium term and long term. In the coming months, in other words for the remainder of 2025, the inflation rate is expected to be close to target. Over the medium term, the impact of US tariffs on inflation could materialise, including through the exchange rate and energy prices. Looking further ahead to the long term, analysts and financial markets are reasonably confident that inflation will return to the ECB’s target. The main focus of the ECB’s monetary policy is on the medium-term horizon: that is to say, one or two years ahead.

    Is there any reason to be concerned that people’s inflation expectations could rise more quickly again because the experience of very high inflation is still so recent?

    As a directional statement, I agree. Before the pandemic, many were convinced inflation would stay very low. The high inflation episode was a painful reminder that inflation can arise. But such a combination of extraordinary events – the pandemic, Russia’s war in Ukraine – is very rare. The more concrete question for us is: could a world of shocks relating to structural changes – arising from challenges to globalisation, increased automation, changing demography – push inflation noticeably below or above 2 per cent, and how responsive will inflation expectations be? Part of our job will be to make sure expectations remain anchored, that people have the reassurance that if inflation moves away from 2 per cent we will bring it back.

    What impact do the current labour shortages and low unemployment have on inflation?

    There is certainly a difference compared with the pre-pandemic period. That’s why I don’t think we will return to inflation rates that are as low as they were back then. When unemployment is low, firms and employees are more likely to settle on wage increases – perhaps around 3 per cent on average in the euro area. This is a normalisation and, allowing for rising labour productivity, makes our 2 per cent target more credible. But I do not see any signs of a wage-price spiral at present, and this also applies to Germany.

    In Belgium, wages are, in part, directly bound to inflation. Has that added to inflation there?

    During the period of high inflation, wages rose rapidly in Belgium but, as inflation fell, wage growth slowed down quickly again. In Germany, there was a different pattern: it took longer for wages to go up. But there is no major difference when looking at the average over three to five years.

    Do you think it is possible that the new protectionism will lead to deglobalisation in the longer term, resulting in structurally higher inflation rates?

    It is important to differentiate between temporary and permanent effects. For many firms the business model is connected to globalisation. A phase of deglobalisation could initially dampen economic growth, which would make it more likely that inflation rates would fall. Following that transition, inflation and its volatility could increase as the offsetting effect of favourable imports fades. It could mean that, as a central bank, we have to be more active in our policy responses to return inflation to 2 per cent over the medium term.

    The Federal Reserve fears that US tariffs could lead to transitory, i.e. temporary, inflation. Would it leave inflation in the euro area unaffected if US rates rise?

    The world needs the Federal Reserve to maintain price stability for the United States. If this means high US interest rates, it can lead to a stronger dollar and thereby somewhat higher inflation for Europe in the short term. In the medium term, however, high US interest rates mostly hold back the global economy – which tends to lead to lower inflation in the euro area. There are always some spillover effects.

    What does all this mean for the ECB’s interest rate policy?

    We need to find a middle path. If we keep interest rates too high for too long, the disinflation pressure of US tariffs could cause inflation rates to fall below our target. If we cut too much and too quickly, a strengthening economy and other factors could drive inflation back up. This is why we will pay close attention to the data in our next meetings. If we see signs of further falling inflation, we will respond with further interest rate cuts – but the range of discussion is not that wide: no one is talking about dramatic rate cuts. We are in a zone of normal central banking.

    Are the key ECB interest rates now in the neutral range?

    The neutral interest rate can only be estimated and it is a long-term concept. In the long term, the neutral interest rate could be around where we are now. But the world is not in equilibrium and the appropriate interest rate may be different in the short term. I would differentiate between the three policy rate zones: a clearly restrictive one with rates say in the high twos or above; and a clearly accommodative one – for the sake of discussion, say rates below 1.5 per cent are clearly accommodative. Going there would only be appropriate in the event of more substantial downside risks to inflation, or a more significant slowdown in the economy. I do not see that at the moment. And there is a zone in between, where it is more of a question of cyclical management. We are navigating in that zone at the moment. This is the focus of the discussions at the ECB.

    Can the ECB be indifferent to exchange rate developments when there is a sharp depreciation of the dollar, like at the moment? Unlike the Bundesbank in the past, you aren’t pursuing an official exchange rate policy…

    The exchange rate is of course an important factor in the development of inflation, even if we do not pursue an explicit exchange rate policy. However, most trade in the euro area takes place between countries sharing the euro as a common currency and, therefore, the exchange rate does not play a role. Trade with the United States and other regions of the world is important but it’s not the dominant factor. At the same time, we need to look at the impact of exchange rate shifts in a situation like we have now.

    Do you think that the euro could replace the US dollar as the world’s reserve currency as a consequence of the unreliable economic policies of the United States?

    I think the question whether the euro should overtake the US dollar is not so important. I can imagine that the euro will become more important as a reserve currency in the current situation. In the first decade of the euro, there was an optimism that we would no longer live in a world with a single world currency, the dollar. Now, the United States is facing all kinds of questions about its role in the world economy. The natural second currency is the euro. It is well placed to gain a bigger share of the market. This could be supported by further European integration – to put the euro on a firmer foundation.

    In your estimation, how great is the risk that we will now see more frequent waves of inflation, like those seen recently?

    The specific circumstances of the last wave of inflation will probably not be repeated quickly. Something like that occurs at most every few decades. Nevertheless, I also consider very low inflation rates, like those before the pandemic, to be unlikely in the current circumstances where there are so many upheavals and changes. There could be more external shocks and fluctuations in inflation rates than in the past. That means that we have an important job to do at the ECB. We may need to become even more active than before in adjusting our policy to the incoming shocks.

    MIL OSI Europe News –

  • MIL-OSI Europe: European monetary policy in times of high uncertainty | Lecture at ZEW – Leibniz Centre for European Economic Research

    Source: Deutsche Bundesbank in English

    Check against delivery.

    1 Certain uncertainty
    Ladies and gentlemen, 
    Thank you very much for your invitation and kind welcome. I am delighted to be with you here in Mannheim today.
    With this series of events, the ZEW has been providing a forum for political, economic and academic exchange for more than three decades now. You have set out your expectations very clearly: Pressing economic policy issues and recent developments are the focus. 
    At present, pressing issues and developments are indeed coming thick and fast. Take, for example, the numerous pivots in trade policy by the US Administration. Sometimes the issues are already outdated before you have even had a chance to address them. In any case, one thing is clear: we have a lot to discuss today. 
    Ladies and gentlemen,
    When the ZEW proposed a topic to me just over two months ago, I had no doubt in my mind: there was no chance that the chosen topic would already be outdated. And why not? As Alan Greenspan, former Chairman of the US Federal Reserve, once said: “Uncertainty is not just an important feature of the monetary policy landscape; it is the defining characteristic of that landscape.”[1]
    Greenspan said this in 2003. The term “the Great Moderation” had just been coined to describe a period of exceptional macroeconomic stability.[2] Uncertainty seemed to be relatively low at that time. Nevertheless, Greenspan stressed the factor of uncertainty. And he is not alone in this. I would imagine that none of you have ever heard a central banker say that uncertainty is currently negligible. 
    From my own experience, I can confirm that, when making monetary policy decisions, we are always faced with uncertainty. It is, after all, in the nature of the matter: the decisions impact a future that cannot be precisely predicted. Dealing with uncertainty is therefore part of the job description of monetary policymakers. What is constantly changing are the causes and degree of uncertainty. And that brings us to the heart of today’s topic: European monetary policy in times of high uncertainty. 
    In my lecture today, I will address three key questions: How should monetary policy deal with uncertainty in general? What are the main causes of uncertainty at present and in the future? How is monetary policy in the euro area navigating the current period of high uncertainty?
    2 Monetary policy under uncertainty
    Let us start with the subject that we have just touched upon: the impact of monetary policy unfolds only gradually. The decisions of today affect the inflation of tomorrow. The gap between decisions and their impact necessitates a forward-looking approach. Or, to put it another way: when we are out in the monetary policy landscape, we are also looking to our more distant surroundings. 
    This means that a core part of preparing for monetary policy meetings is to assess future developments. And, unlike with the weather, for example, the current situation is not entirely clear, either. A broad set of data and diverse economic models are therefore helpful for us. Like a magnifying glass and a pair of binoculars, they make it easier for us to examine our environment as closely as possible. Following on from this, we can differentiate between two types of uncertainty: data uncertainty and model uncertainty.
    Data uncertainty arises because not all of the information is available to obtain a picture of the “true” state of the economy. There are a number of reasons for this: not all of the data that would be of interest are recorded statistically or can be recorded in their entirety. Some data are only available with a considerable time delay. Some are subject to measurement issues, so the data need to be revised later. 
    To give one example: for economic activity in the euro area, Eurostat provides a preliminary flash estimate around four weeks after the end of a quarter. This is based on a very limited dataset, and especially the figures for the third month of the quarter need to be estimated. The actual flash estimate is released two weeks later. But even this does not yet include any details or nominal data. Another two to three weeks later, it is followed by an initial estimate with a more detailed breakdown by components. However, even then, changes should still be expected, and these can sometimes be considerable. 
    This demonstrates how we have only incomplete knowledge of the present in real time. The description and assessment of the current situation are therefore already subject to uncertainty. 
    In addition to this, there is model uncertainty. In order to be able to examine macroeconomic processes, complex realities must be simplified. This simplification is achieved through models. They are confined to a small number of interrelationships that are as relevant as possible. All others are disregarded. In monetary policy, we use models, for example, to predict the development of inflation or to estimate the effects of our monetary policy measures. However, there is plenty of room for discussion on whether the simplifications in each model are always adequate. 
    But even if we were all in agreement on the model framework, other sources of uncertainty still remain. This concerns, for one thing, the parameters. These reflect the assumed strength and dynamics of the relationships within a given model. The parameters are usually estimated on the basis of past observations. The estimation results therefore also depend on the selected investigation period. Furthermore, parameters can evolve over time, for example as a result of structural change. Particularly if this happens abruptly and the structural breaks are not detected immediately, the model results can then be misleading. 
    For another thing, models often make use of variables that cannot be observed directly, such as potential output or natural interest rates. These must themselves be estimated, which entails considerable uncertainty.[3] This also shows how closely data uncertainty and model uncertainty are intertwined.
    To summarise: models arrive at different results due to uncertainties in their structure, parameters and estimation variables, which may lead us to different conclusions. Assessment by experts then often determines the final forecast picture. 
    In practice, data uncertainty and model uncertainty are especially relevant when unexpected events occur. At these times, monetary policymakers’ need for comprehensive information is, of course, particularly great. This is because the appropriate monetary policy response depends on the nature of the unexpected events in question. However, data uncertainty and model uncertainty make it difficult to definitively ascertain the exact nature and magnitude of a shock that is currently taking place. There is a relatively high risk of being wrong. What can monetary policymakers do against this?
    First of all, we draw on many different sources of information to obtain as complete a picture of the current situation as possible. For example, in 2019 and 2020, we at the Bundesbank began to regularly survey households and firms about their assessments and expectations. Since 2020, we have been measuring the activity of the German economy using a weekly index. Since the start of the war in Ukraine, models have been developed that explicitly take gas price shocks into account. 
    In addition, we are continually working on improving our forecast models even further. Artificial intelligence now offers new possibilities, such as capturing non-linear relationships, analysing large sets of data, and automating and accelerating analytical processes. We are intensively examining all of these possibilities at the Bundesbank. And we have already achieved some promising successes in this regard. I will come back to touch upon one specific prototype later on.
    Given the data uncertainty and model uncertainty, we in monetary policy are well advised to pursue a strategy that is as robust as possible. To stick with the image of Alan Greenspan: in the monetary policy landscape, you should best avoid flip-flops. Sturdy footwear is needed here. A robust strategy produces good results under various assumptions and prevents particularly costly mistakes.
    The more uncertain the setting, the greater the risk of policy errors. That is why, when uncertainty is high, monetary policymakers are also in demand as risk managers. We have to consider various scenarios, assess the likelihood that they will materialise as well as their implications, and also weigh up the costs and benefits of different monetary policy paths that lead to the inflation destination. How do these considerations affect our decisions? The short answer is: it depends.
    A gradual approach might make sense when uncertainty is high.[4] It is human nature: when the room you are entering is dark, you do not simply rush in. You proceed slowly, taking small steps. Applying this analogy to monetary policy, the costs of reversing policy following an error could outweigh the costs of acting too late. “Flip-flopping” could itself add to the uncertainty and destabilise expectations. Moreover, abruptly changing direction can precipitate greater volatility in financial markets and pose risks to financial stability. 
    That said, it will not always be the case that cautious monetary policymaking is a good response to high uncertainty. I am talking about situations in which a “wait-and-see” attitude increases the risk that the outcome will be particularly unfavourable. Going back to the dark room I mentioned just now: if the flames are right behind you, you should not edge your way forwards in small steps. A scenario where inflation expectations risk drifting off might be just such a case. Then, a vigorous response would be appropriate to protect yourself from this worst-case scenario. As you can see, it may be necessary to respond swiftly and comprehensively, precisely because uncertainty is high. 
    Clearly, monetary policymakers acting as risk managers would be well advised to take robust control approaches into account when making decisions in particularly uncertain times.[5]
    3 Drivers of uncertainty
    3.1 Trade policy flip-flopping
    Ladies and gentlemen,
    Right now, these considerations are anything but mere theory. And that is due, not least, to the White House. Since the change of administration in the United States, no little uncertainty has been rippling across the Atlantic. The waves caused by US trade policy have been particularly huge. 
    Since April, the United States has been imposing additional tariffs of at least 10 % on all its trading partners. Tariffs that are higher still apply to imports of steel and aluminium as well as to cars and automotive parts. Tit-for-tat tariff hikes by the United States and China drove tariff rates to more than 100 % at times. In mid-May, the two countries agreed to lower them significantly for a time.[6] Even so, the average effective US tariff rate has climbed by more than 13 percentage points in the year to date, reaching its highest level since the 1930s.[7] In addition, there is a risk of tariffs going higher still as of July if bilateral negotiations fail. 
    The shock waves unleashed by US trade policy are not only having an impact via the actual tariff burden. Their unpredictability and the doubts they have raised about US economic and fiscal policy are also leaving a mark, as reflected by the sometimes severe fluctuations in financial markets. The tariff hikes announced on 2 April, for example, caused implied stock market volatility to spike significantly higher. This points to a high degree of uncertainty among market participants – in the United States especially, but also in the euro area.
    Measured in terms of the number of mentions in newspaper articles, trade policy uncertainty peaked this spring.[8] And that is hardly surprising given how many questions this topic is raising: which tariffs will be put into effect, temporarily suspended or withdrawn – and when? What retaliatory measures will follow in each case? To what degree will goods flows in global trade be diverted? What will be the fallout from this? Will action be taken to curb these diversions? And, if so, by whom? You could keep going like this ad infinitum. 
    Even in times when trade policy moves in straight lines, forecasts of the economic impact of upheavals in the tariff regime would be no more than rough approximations. But we are dealing with an almost unpredictable cycle of events: tariffs are threatened, put into force, partially withdrawn, and then threatened again. 
    One example of this is the US tariff policy imposed on the EU. First, on 12 March, the United States imposed general tariffs of 25 % on steel and aluminium. A little time later, additional blanket tariffs of 25 % were imposed on cars and automotive parts as well. On 2 April 2025, President Trump also announced what he called “reciprocal” tariffs for a host of trading partners depending on the bilateral trade deficit and amounting to at least 10 %, and, in the case of the EU, 20 %. But then, with turmoil raging in financial markets, President Trump, on 9 April, suspended the tariffs for 90 days, initially in order to reach “deals”. The minimum 10 % tariff and the additional 25 % tariff on cars, steel and aluminium were left in place, though. On 23 May, President Trump threatened the EU with 50 % tariffs, starting on 1 June – a threat he withdrew two days later. This means that forecasts are based on a footing that is less stable than usual.
    As far as economic growth is concerned, at least the direction of travel seems to be clear: Germany, like the euro area as a whole, is likely to suffer marked losses as a result of US tariff policy. First, the higher tariffs will make European goods less competitive in the US market. This will probably shrink exports to the United States. Second, sluggish economic activity in the United States and other trading-partner countries will dampen demand for products from Europe. Third, the high degree of uncertainty makes longer-term planning more difficult. Enterprises could therefore postpone investment decisions in the hope of quieter times.[9] 
    The Bundesbank has simulated the impact of US tariff policy effective in mid-April, China’s retaliatory measures, and the immediate exchange rate response. The results suggest that economic output in the euro area could be just under half a percentage point lower over the medium term. 
    The direction in which the trade dispute will move inflation in the euro area, however, remains unclear. On the one hand, weaker growth tends to dampen prices. Potential diversion effects resulting from more goods from China in the European market might also leave inflation somewhat lower. On the other hand, any retaliatory tariffs imposed by the EU would fuel inflation. 
    How the exchange rate will evolve going forward remains to be seen. In theory, the expected response to the US tariffs would be a stronger dollar. If anything, this would tend to drive prices higher in the euro area. But things have played out differently so far. In the wake of the tariff discussions, trust in the US dollar has declined, at least temporarily, causing the currency to depreciate markedly since 2 April. In the euro area, this has dampened inflation.
    Thinking beyond day-to-day terms, it is conceivable that longer-term effects will materialise as well. For example, tariffs can have a particularly negative impact on trade in intermediate goods.[10] This is because they shake the calculations upon which global production networks are based. 
    Enterprises have fine-tuned their supply chains to forge highly cost-efficient production structures. However, the trade barriers are putting a spanner in the works of global value chains. Enterprises will have no option but to recalculate their supply chains and tweak some of their relationships with suppliers. They will build up new partnerships and no doubt pay particular attention to strengthening their resilience. This will not happen overnight, especially with political conditions as unsettled as they are right now.[11] In the process, they may well relinquish some of the efficiency gains they have reaped. Over the medium term, this could generally drive up their costs and, as a result, their prices as well.
    3.2 Structural change is progressing
    The reconfiguration of global value chains is working in tandem with other structural changes: among them, first and foremost, climate change and the transition to a climate-neutral economy. The ageing of society is also playing a role, with more people entering retirement and fewer people still in the workforce. And let us not forget digitalisation, which brings with it great opportunities for increased productivity but also considerable change in many professional fields, as well as the risk of giving individual big players more market power.
    All of these factors could influence the inflation environment. It is often unclear in which direction inflation is heading, and it may change over time. Overall, these structural drivers make it difficult to assess medium-term inflation developments.
    3.3 New geopolitical realities
    Alongside structural change and the almost fully unpredictable developments in the tariff dispute, there is a third factor of uncertainty. Old security policy certainties have given way to new geopolitical realities. This is creating new challenges for Europe: we will thus need to invest significantly more in our own security.
    In order to sufficiently bolster our defence capabilities, considerably greater funds are required. There is a strong case against financing such ad hoc needs in the short term solely by rebalancing budgets. The European Commission, for instance, proposes activating the national escape clause in the EU fiscal rules in order to temporarily allow countries greater scope for borrowing.[12] 
    I think this is a justifiable approach. It would allow countries to gradually adjust to higher defence spending. However, it must be clear that this would only be a transitional period. Increased deficits cannot become a permanent state of affairs. A resilient Europe that is capable of action rests on a stable foundation. This includes sound public finances whereby key items are funded in the core budget and through current revenue.
    Overall, there are signs of a more expansionary fiscal policy stance for the euro area. Whether or not greater debt also leads to greater price pressures in the euro area depends on many factors, such as what the additional money is spent on, how quickly it flows out, and how much money flows in from abroad. These uncertainties make it more difficult to forecast developments. In any case, the ECB Governing Council is keeping a close eye on risk. As stated in the account of our April meeting: A boost in defence and infrastructure spending could also lift inflation over the medium term.
    4 Monetary policy stance in the euro area
    The current high level of uncertainty is a slight dampener on the gratification brought about by positive developments: since the beginning of the year, the euro area inflation rate has fallen from 2.5 % to 2.2 % in April. This has finally brought the target within reach. We are on the right path, even if it remains rocky. The core rate has recently risen again. At 4 %, prices for services, in particular, have seen surprisingly steep growth. 
    The ECB Governing Council will continue to steer the monetary policy stance in such a way that the inflation rate stabilises at 2 % over the medium-term. You may now be asking yourselves: What exactly does that mean for the next meeting in June? Will there be another interest rate cut? Pressing as these questions are, I unfortunately cannot answer them today.
    Since July 2022, we on the ECB Governing Council have been following a data-dependent approach, making decisions on a meeting-by-meeting basis. This approach has proved successful when dealing with the heightened uncertainty of recent years, such as during the aftermath of the COVID-19 pandemic and in the wake of Russia’s war of aggression against Ukraine. We have stayed flexible and have continuously assessed how the incoming data change the medium-term inflation outlook. Here, we supplemented our baseline – which is the most likely outcome – with scenario analyses. This also allowed us to assess the probability of less likely but still conceivable outcomes. 
    Using this approach, I believe that we are well equipped to deal with the current high level of uncertainty, too. As I explained earlier, inflation could be higher or lower than the latest expectations, depending on how the tariff dispute develops as well as other influencing factors like the exchange rate, services prices and fiscal packages. In light of this, it seems to me more advisable than ever to make decisions meeting by meeting on the basis of the latest data. If we had not already been operating so flexibly, we would have had to start doing so now, at the latest. It would be impossible to reliably commit to a specific interest rate path at the current juncture.
    In June, the ECB Governing Council will have a fresh set of data and an up-to-date forecast. These will help us to align the monetary policy stance in a way that will bring us another step closer to our goal. Our destination is clear: we want the inflation rate to reach the target of 2 % soon and to stabilise there on a sustainable basis. Of that, there is no doubt. In doing so, we are thus providing a stable anchor for inflation expectations. 
    Anchored inflation expectations make it easier for monetary policymakers to bring inflation back to target after unexpected events. The successes in the fight against the far too high inflation rates of the past few years were achieved at relatively low economic cost.[13] This was partly attributable to the fact that inflation expectations were better anchored than before. But we cannot rest on our laurels with regard to the future, because the starting position has changed. We no longer have decades of moderate inflation rates behind us. For many people, the experience of such strong price surges was new and dramatic. The memory of this is unlikely to fade quickly.[14]
    Inflation expectations, as well the associated price and wage setting, may now respond more quickly or more strongly to future inflation shocks. We therefore need to be particularly vigilant when it comes to the evolution of inflation expectations. For instance, medium-term inflation expectations amongst euro area households and firms were recently on the rise again. Concerns about rising prices caused by tariff policy are not only on American minds, then. We will keep a close eye on this development.
    Ensuring that inflation expectations are firmly anchored is a permanent task for monetary policymakers. This can be achieved by ensuring that our commitment to stability is highly credible and that our communication is clear.
    To further improve clarity, we have since implemented AI-assisted text analysis methods, too. In this vein, the Bundesbank has developed a novel AI model that can produce detailed and transparent evaluations of monetary policy texts.[15] This allows us to assess, for example, whether certain statements are likely to send the desired signals. After all, we do not want our communication to trigger undesirable market reactions or create additional uncertainty. AI analysis does not replace human expertise. But it can help us to further improve our understanding of monetary policy communication and its impact.
    5 Conclusion
    Ladies and gentlemen, 
    If you are currently wondering whether this speech was generated by AI, or, indeed, if it will ever end, I can assure you that real people were involved in the speech-writing process, and I have now come to my closing remarks. Our AI model is currently used to evaluate texts. Incidentally, this speech was classified as “neutral” in monetary policy terms.
    Alan Greenspan would probably have pushed the model to its limits. His statements were often so cryptic that the media and financial markets took to seeking out other clues: for example, when it came to monetary policy decisions, they looked at the thickness of his briefcase. A slim briefcase was thought to indicate an uneventful meeting without interest rate changes, whilst a bulging briefcase signalled a need for discussion and an adjustment to the policy rate.[16] During his term in office, Mr Greenspan was once asked whether there was any truth to this theory. His answer: “The thickness of my briefcase depended on whether or not I had packed a sandwich.”[17] 
    Unfortunately, not all uncertainties can be so easily erased from the monetary policy landscape. But, as we can see, asking direct questions and talking to each other often contributes to greater clarity. Which makes me all the more excited for our discussion!
    Thank you very much. 
    Footnotes:

    Greenspan, A. (2003), Monetary Policy under Uncertainty, Remarks at a symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, 29 August 2003.
    Stock, J. H. and M. W. Watson (2002), Has the Business Cycle Changed and Why?, NBER Working Paper No 9127.
    Nagel, J. (2025), r* in the monetary policy universe: Navigational star or dark matter?, Lecture at the London School of Economics and Political Science, London, 12 February 2025.
    Brainard, W. (1967), Uncertainty and the Effectiveness of Policy, American Economic Review, Vol. 57, No 2, pp. 411‑425.
    Hansen, L. P. and T. J. Sargent (2001), Robust Control and Model Uncertainty, American Economic Review, Vol. 91, No 2.
    See Deutsche Bundesbank (2025), The potential impact of the current trade dispute between the United States and China, Monthly Report, May 2025.
    The Budget Lab at Yale (2025), State of U.S. tariffs: May 12, 2025, Yale University.
    A description of the trade policy uncertainty index can be found in Caldara, D., M. Iacoviello, P. Molligo, A. Prestipino and A. Raffo (2020), The economic effects of trade policy uncertainty, Journal of Monetary Economics, Vol. 109. See also Deutsche Bundesbank (2025), The macroeconomic effects of heightened uncertainty, Monthly Report, May 2025.
    Deutsche Bundesbank (2018), The macroeconomic impact of uncertainty, Monthly Report, October 2018, pp. 49‑64.
    Deutsche Bundesbank (2020), Domestic economic effects of import tariffs with regard to global value chains, Monthly Report, January 2020.
    Bayoumi, T., J. Barkema and D. A. Cerdeiro (2019), The Inflexible Structure of Global Supply Chains, IMF Working Paper, No 19/193.
    See Deutsche Bundesbank (2025), EU fiscal rules: proposed activation of national escape clauses, Monthly Report, May 2025.
    Deutsche Bundesbank (2024), The global disinflation process and its costs, Monthly Report, July 2024.
    D’Acunto, F., U. Malmendier and M. Weber (2022), What Do the Data Tell Us About Inflation Expectations? NBER Working Papers, No 29825, March 2022.
    Deutsche Bundesbank (2025), Monetary policy communication according to artificial intelligence, Monthly Report, March 2025.
    Gavin, W. T. and R. J. Mandal (2000), Inside the briefcase: The art of predicting the Federal Reserve, The Regional Economist, July 2000.
    Alan Greenspan in an interview with “Stern”: “In der Badewanne hatte ich viele gute Ideen”, 30 September 2007. 

    MIL OSI

    MIL OSI Europe News –

  • MIL-OSI Russia: Tuvalu: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    May 27, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC: An International Monetary Fund (IMF) team held discussions for the 2025 Article IV consultation for Tuvalu in Funafuti, during May 20-27. The team issued the following statement at the conclusion of the mission.

    RECENT DEVELOPMENTS, OUTLOOK, AND RISKS

    Tuvalu’s economy has experienced a strong recovery from the COVID-19 pandemic. After falling for three consecutive years in 2020-22, GDP growth rebounded strongly at 7.9 percent in 2023, driven by the resumption of construction activity, the trade recovery, and higher government spending. GDP growth in 2024 is estimated to have reached 3.3 percent, supported by continued effects of reopening and major infrastructure projects. Since peaking at 14.2 percent in 2022Q3, inflation has been trending down and slowed to 1.2 percent in 2024, in line with global food and commodities prices and continued easing of shipping bottlenecks.

    The economic recovery is expected to continue, but growth is projected to moderate gradually over the medium term. Growth in 2025 is projected at 3 percent, driven by the construction of the new phase of Tuvalu Coastal Adaptation Project and an increase in public spending. While externally-financed projects are expected to continue to support economic activities, growth is projected to decline gradually to around 1.8 percent over the medium term, due to sluggish productivity growth, increasing emigration, and vulnerability to climate events. Inflation is expected to remain below 2 percent in 2025, reflecting the negative CPI at end-2024 and lower global commodity prices, and to rise gradually to 2.5 percent over the medium term, aligning with inflation dynamics of Tuvalu’s trading partners.

    The fiscal balance is projected to turn to a surplus in 2025 reflecting higher grants but would deteriorate again starting in 2026. Higher grants are expected to more than offset the increase in expenditures and improve the fiscal balance from a deficit of 7 percent of GDP in 2024 to a surplus of 2.9 percent of GDP in 2025. Over the medium term, grants are projected to gradually decline to historical levels of around 27 percent of GDP, while current expenditure pressures would remain elevated. As a result, fiscal balances are expected to deteriorate gradually and reach -6.8 percent of GDP by 2030. Because the projected withdrawals from Tuvalu’s sovereign funds are not sufficient to fully finance the fiscal deficits, foreign financing will be required to close the financing gap. Under these baseline projections, Tuvalu is assessed to remain at a high risk of debt distress.

    Downside risks to the outlook remain high. The global environment has significantly changed this year, reflecting escalated trade tensions, heightened policy uncertainty, and tighter financial conditions.  While Tuvalu’s export exposure is limited, heightened global uncertainty and volatility could affect Tuvalu’s external revenues, including from its internet domain, fishing licenses, and development assistance, and significantly impact Tuvalu’s public finances, external position, and growth outlook. Global risks of heightened trade tensions and higher commodity prices could also increase inflation. A sharp downward correction in financial market returns could affect the performance of Tuvalu’s sovereign funds. Under-performance of public corporations could cause fiscal risks, and further loss of CBRs would severely disrupt cross-border payments. An acceleration of outward migration would exacerbate labor shortages. Extreme climate events and climate change remain major risks to Tuvalu’s economic outlook. Upside risks include higher fishing licenses and grants and greater structural reform momentum, which could accelerate economic growth.

    FISCAL POLICY

    Fiscal policy should balance ensuring fiscal sustainability and supporting Tuvalu’s development priorities. Tuvalu’s high vulnerability to external shocks requires fiscal sustainability and adequate buffers against downside risks. Meanwhile, the government faces significant near-term spending pressures in order to deliver essential public services, while also having to address medium-term climate adaptation costs and labor shortages stemming from increasing emigration.

    A multi-pronged fiscal strategy is required to address these challenges. Given persistent fiscal deficits and Tuvalu’s limited fiscal space, the main elements of the strategy should include: i) gradually reducing fiscal deficits; ii) increasing spending for priority areas; and iii) appropriately using fiscal buffers to stabilize fiscal accounts, cushion against shocks, and address long-term challenges. IMF staff’s simulations show that reducing the fiscal deficit gradually to around 2.3 percent of GDP by 2030 (compared to 6.8 percent of GDP in the baseline scenario) by utilizing the returns of the Tuvalu Trust Fund and the Consolidated Investment Fund (CIF) to finance deficits would keep public debt on a downward path. The domestic current balance would provide an appropriate anchor and is expected to improve to -40 percent of GDP by 2045 under the consolidation scenario, and the value of the buffer fund (CIF) would stabilize at around 40 percent of GDP, which is needed to cover major shocks and downside risks.

    The recommended fiscal strategy entails a combination of revenue mobilization, expenditure rationalization, and resource reprioritization measures. Expenditure measures should primarily focus on unwinding the recent increases in current expenditure, including containing the increase in the wage bill, implementing cost-saving measures for the Medical Referral Scheme and overseas scholarships, unwinding the increase in goods and services spending, and cutting broad-based utility subsidies. Revenue mobilization should prioritize strengthening the compliance and efficiency of tax collection, while considering reviewing tax policies and exploring options to boost tax revenue and streamline tax incentives. Part of the savings from the above measures should be redirected to areas such as targeted protection for the most vulnerable, infrastructure, human capital, and climate resilience.

    Improving public financial management (PFM) can help manage revenue volatility and fiscal risks. The authorities have made progress in PFM, including introducing the new Financial Management Information System and formulating the Medium-Term Fiscal Framework. The publication of Tuvalu’s Fiscal Risk Reports is also welcome. Further efforts are needed to improve budget reliability, strengthen investment management to enhance absorption capacity, implement climate budget tagging, enhance fiscal reporting and transparency on extra-budgetary funds and SOEs, and reinforce procurement management.

    FINANCIAL SECTOR POLICIES

    Establishing effective regulatory and supervisory frameworks is urgently needed. Priorities include strengthening the statutory role and expanding the supervisory perimeter of the Banking Commission of Tuvalu (BCT), issuing the proposed new prudential standards, enforcing the timely submission of prudential returns, and addressing delays in the audits of the financial statements of the financial institutions. These measures should be supported through adequate resourcing of the BCT to conduct both on-site and off-site supervision.

    Continued efforts are needed to strengthen Tuvalu’s connectivity to the global payment system and improve financial inclusion. Tuvalu’s membership of the Asia/Pacific Group on Money Laundering is a welcome step, and the authorities should continue strengthen the legal framework and compliance. Efforts to address Correspondent Banking Relationship pressures should also take into account potentially low ML/TF risk environment in Tuvalu and focus on the outreach to the key foreign regulatory authorities, including a corridor risk assessment. The ongoing efforts to modernize banking services, including the recent launch of Tuvalu’s first ATMs, can help overcome geographical barriers and improve efficiency. Improving financial literacy and establishing a reliable national digital ID system are also crucial for financial inclusion. Meanwhile, introducing digital services should consider supervisory capacities and ensure financial integrity.

    STRUCTURAL REFORMS

    Structural reforms need to be carefully prioritized, focusing on addressing development bottlenecks and attaining higher growth potential. Priorities should include: i) collaborating with local communities to effectively develop the reclaimed land; ii) improving internet connectivity and leveraging IT technology to deliver more public services; iii) ensuring proper maintenance of key infrastructure assets, particularly transportation and utilities including renewable energy; iv) strengthening SOE governance and performance, accompanied by reviewing utility pricing to ensure cost recovery; and v) exploring economic diversification in sectors with higher potential, including agricultural products such as coconut, eco-tourism, and commercial fishery.

    Mitigating the impact of emigration and enhancing climate resilience are crucial. While outward emigration has supported remittances and consumption, measures to enhance both human capital and labor supply are required to address labor shortage issues. The authorities should focus on improving education access and quality, enhancing training, and attracting returning migrants and promoting skill transfer. Facilitating female labor force participation could help bridge significant gender gaps in employment, while alleviating labor shortages. Tuvalu should continue to engage with development partners to secure climate financing and implement major climate resilient projects. In addition, the authorities need to further enhance disaster management through enforcement of amended building codes, use of risk maps to inform planning, and strengthening community disaster preparedness. Accelerating renewable energy production can lower Tuvalu’s energy costs, reduce its external sector vulnerability, and enhance energy security.

    ***

    The mission would like to thank the Tuvaluan authorities and various stakeholders for their excellent hospitality and cooperation and candid discussions during the mission.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pemba Sherpa

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/05/27/mcs-tuvalu-staff-concluding-statement-of-the-2025-article-iv-mission

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Security: Former President of Local Oilfield Consulting Service Business Sentenced in Federal Court for Money Laundering

    Source: Office of United States Attorneys

    SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Brian T. Owen, 52, of Caddo Parish, Louisiana, has been sentenced for money laundering. United States District Judge S. Maurice Hicks, Jr. sentenced Owen to 30 months in prison, followed by 3 years of supervised release, $100,000 fine, and ordered him to pay $1,157,154.39 in restitution.   

               Owen pleaded guilty in October 2024 to a Bill of Information charging him with one count of money laundering in connection with his unlawful activities as president of an oilfield consulting service business headquartered in Bossier City. According to information introduced in court, in June 2020, the company filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Louisiana. 

               In January 2021, as part of the company’s bankruptcy plan of reorganization, a Distribution Trust was established to pay back creditors, and Owen executed a Distribution Trust Agreement in his role as president of the company. According to this plan, if Owen received any additional compensation from the company, he was required to pay 30% of that directly to the Distribution Trust. 

               In 2021, the company began applying for Employee Retention Credits (“ERCs”), which are a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic. Owen then devised a scheme to defraud the Distribution Trust by intercepting the physical U.S. Department of Treasury Checks before they were deposited into the company’s working accounts. Unbeknownst to other senior leadership at the company, Owen had opened a bank account in the name of the company while it was still in bankruptcy. As part of the scheme, he deposited a total of $3.8 million in ERC funds for himself as additional compensation. Owen did not pay the Distribution Trust the 30% as he had agreed, but instead used the money for his own personal expenses, including to pay off gambling debts.         

               The case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and Louisiana State Police and prosecuted by Assistant United States Attorney Seth D. Reeg.

    # # #

    MIL Security OSI –

  • MIL-OSI USA: Record Low Gun Violence for NYS

    Source: US State of New York

    overnor Kathy Hochul today announced that reported gun violence across New York State has continued to decline, reaching the lowest level since the state began tracking this data in 2006. New statistics released by the State Division of Criminal Justice Services show a 15 percent decline in shooting victims and a 9 percent drop in shooting incidents with injury from January 1, 2025, through April 30, 2025, compared to the same period last year, in communities participating in the State’s Gun Involved Violence Elimination initiative.

    “Keeping New Yorkers safe is my top priority. Since taking office, my administration has been laser focused on eliminating gun violence and reducing the number of gun-related injuries and fatalities across the State,” Governor Hochul said. “Our efforts are working, and I am committed to continuing our record level support for gun violence prevention initiatives in our most impacted communities to ensure all New Yorkers are safe.”

    Newly released data comes from the 28 police departments outside of New York City participating in the state’s Gun Involved Violence Elimination (GIVE) initiative. These police departments report roughly 90 percent of violent crimes involving firearms and 85 percent of violent crime reported outside New York City. Since 2021 when Governor Hochul took office, shootings in New York are down by more than 50 percent and murders are down 30 percent.

    Between January and April 2025, these departments reported 156 shooting victims, down from 183 during the same period in 2024; and 139 shooting incidents with injury, down from 153 in 2024 — data that are the result of a coordinated, data-driven effort to reduce gun violence in the State’s most impacted communities.

    New York State Division of Criminal Justice Services Commissioner Rossana Rosado said, “New York’s strategy is working because it’s grounded in data, backed by funding, and built on strong partnerships. We are proud to support our law enforcement and community partners with the tools they need to make every neighborhood safer.”

    Monroe County Executive Adam Bello said “Monroe County and New York State are committed to working together to keep our community and neighborhoods safe through sustained investments in gun violence prevention programs. Governor Hochul’s continued support for the GIVE initiative demonstrates a clear understanding that addressing gun violence requires data-driven and community-focused strategies. GIVE empowers local law enforcement and community partners with the tools and resources they need to prevent gun violence before it occurs. By prioritizing prevention and intervention, Governor Hochul and New York State are helping to build safe and more resilient communities across the state,”

    Erie County Executive Mark C. Poloncarz said “The ongoing efforts to reduce gun violence across the state are making a difference. Collaboration and support amongst many different law enforcement agencies and key community partners will help our continued efforts to promote public safety and to make neighborhoods safer. I thank Governor Hochul and my colleagues at other levels in government for continuing to work on reducing gun violence rates as we reinforce trusted safety measures and prevention methods to make every community safer, especially those disproportionately impacted by crime violent crimes that involve guns. Together we will achieve peace and stability throughout the state.”

    According to the US Center for Disease Control (CDC) the murder rate in New York declined by 8 percent from 2023 to 2024. Mortality data shows that New York has the second lowest homicide rate of the top 15 most populous states and the lowest homicide rate of the top 10 states. CDC data also shows that New York has the third lowest firearm-related mortality rate, including firearm-related homicides, accidental discharges, and suicides, in the nation behind only Massachusetts and New Jersey.

    Preliminary full year crime data from DCJS shows a 4 percent decline in overall index crime statewide in 2024 compared to 2023. The 57 counties outside New York City reported an 8 percent drop in crimes with 5 percent fewer violent crimes and 9 percent fewer property crimes.

    In the 57 counties outside of New York City, the following categories of crime declined significantly from 2023 to 2024, with robbery and burglary at the lowest levels on record:

    • Motor vehicle theft (-27 percent)
    • Robbery (-11 percent)
    • Burglary (-8 percent)
    • Larceny (-6 percent)

    To build on this progress, Governor Hochul’s recently enacted FY26 Enacted Budget strengthens New York’s public safety efforts, including:

    • $347 million in gun violence prevention programs that have helped drive gun violence down by more than 50 percent when compared to pandemic-era peaks;
    • Reforms to the discovery process aimed at reducing recidivism and ensuring timely justice;
    • Increased support for survivors of domestic and sexual violence;
    • Enhanced protections for transit workers and passengers; and
    • $77 million to partner with NYPD to increase police presence on platforms and trains by temporarily surging patrol levels for six months, among other key safety initiatives.

    The Budget also includes continued funding for DCJS initiatives that support local law enforcement, community-based violence prevention, and victim services. DCJS also recently notified law enforcement and victim service professionals of their first round of funding through its Statewide Targeted Reductions in Intimate Violence (STRIVE) initiative, which directs resources to police, prosecutors and victim assistance providers so they can better address intimate partner violence in high-need communities.

    Detailed data on shooting incidents, victims and homicides by department is available on the DCJS statistics page.

    MIL OSI USA News –

  • MIL-OSI Africa: Sugary drinks, processed foods, alcohol and tobacco are big killers: why the G20 should add its weight to health taxes

    Source: The Conversation – Africa – By Karen Hofman, Professor and Programme Director, SA MRC Centre for Health Economics and Decision Science – PRICELESS SA (Priority Cost Effective Lessons in Systems Strengthening South Africa), University of the Witwatersrand

    By 2030, non-communicable diseases will account for 75% of all deaths annually. Eight percent of these will be in the global south. Most of these diseases are what we call silent killers: type 2 diabetes, high blood pressure and heart disease, as well as certain types of cancer at increasingly younger ages.

    The consumption of sugary drinks and processed foods high in sugar, salt and saturated fats is fuelling these pandemics. And increasingly advertising is being seen as the means by which the consumption of unhealthy products is promoted. This translates into the growth of non-communicable diseases in populations across the globe. This rising threat is driven largely by the way in which markets and industries are organised, which, in turn, shapes social norms towards consumption of tobacco, alcohol, food and sugary beverages.

    This process is what’s known as commercial determinants of health.

    Products that top the list in terms of their risk to health are tobacco, sugary beverages, ultra processed food and alcohol.

    These products are heavily advertised. For example, in South Africa from 2013 to 2019, sugary beverage manufacturers spent US$191 million (R3.7 billion) to advertise their products. Many of the TV advertisements for sugary drinks were placed during child and family viewing time, between 3pm and 7pm.

    Over the past decade a number of countries have introduced policies in a bid to limit the use and intake of harmful food and beverages. These have ranged from taxes on certain products, such as sugar, alcohol and tobacco, to bans on advertising. Many have proved effective. But there are still big gaps in policies to control these harmful products.

    As academics who have researched this field for three decades we believe that the G20 can play a significant role in plugging these gaps. The countries under the G20 umbrella, which represent two thirds of the world’s population, have reason to act: all are experiencing a mounting burden of obesity-related illness such as diabetes, high blood pressure and cancer at ever-younger ages.

    One of South Africa’s G20 presidency health priorities is “stemming the tide of non-communicable diseases”. In our view this is an invitation for the G20 to pledge to combat the drivers of non-communicable diseases.

    The G20 can acknowledge that these diseases are part of a pathological system in which commercial actors are causing ill health. And G20 leaders can acknowledge that progress enacting health taxes has stagnated in most countries.

    By galvanising attention in this way, the G20 can give impetus to a high level United Nations meeting in 2025 at which a new vision for the control and prevention of non-communicable diseases is due to be set. Health taxes and bans on marketing are focus areas.

    What stands in the way of progress

    Efforts by various countries to curb consumption of these harmful products have shown one thing clearly: there’s no silver bullet.

    Nevertheless, evidence shows that consumers are responsive to price. This points to the fact that taxes are a key tool for decreasing demand, especially for young consumers.

    Read more: Sugary drinks are a killer: a 20% tax would save lives and rands in South Africa

    There is also mounting evidence that health taxes are progressive for health at a population level – in other words they lead to better health outcomes. Research also shows that they scarcely affect overall employment, if at all.

    But advances on alcohol and tobacco taxes are slow. And there has been little progress on taxes on sugary beverages.

    These taxes remain far too low because health promotion taxes face tough resistance from industry. When any health promotion taxes are proposed, industries deny harms, promote doubt, divert attention, spread disinformation, create front organisations, and varnish their reputations through corporate social responsibility initiatives.

    When taxes do proceed through the legislative or regulatory process, industries influence proposals to make them less effective. They also offer to replace legislation with voluntary commitments. Evidence shows that voluntary commitments do not work.

    What would be gained

    In 2024, a report by a panel of experts showed that US$3.7 trillion in additional revenue could be generated over five years if all countries increased prices of tobacco, alcohol and sugary beverages by 50%.

    This money is sorely needed to boost healthcare. Non-communicable diseases disproportionately affect the most poor and vulnerable and healthcare systems are increasingly unable to cope. Screening, diagnosis, medications and treatment are very expensive for both ministries of finance and at the household level, where health needs can result in catastrophic expenditure.

    And taxes that generate a 50% increase in real prices of tobacco, alcohol and sugary beverages would save 50 million lives globally over 50 years.

    Where to begin

    We believe the G20 platform is a sound one on which to champion efforts to curb the consumption of harmful products. This is because half of the countries in the group have one or two policies for food such as taxes on sweetened beverages. Their experiences can therefore inform debates about how to protect the public from the fatal effects of diet-influenced diseases.

    But building a solid foundation won’t be easy. What’s needed is for the G20 to put its weight behind these key points:

    • Promoting good health before people get sick should be an imperative because the cost of inaction in financial and human terms is just too high.

    • Promoting the case for raising tobacco taxes, because tobacco continues to cause the most death and illness. But taxation has stalled. Approximately 90% of smokers live in countries where cigarettes were equally or more affordable in 2022 than they were five years earlier.

    • A renewed focus on alcohol taxes, which have shown little improvement in the last decade. Alcohol excise taxes are not being used effectively.

    • Fresh impetus behind increasing the level of taxes as a percentage of the cost of sugar sweetened beverages. Evidence suggests that to be effective, taxes on sugar sweetened beverages should increase product prices by at least 20%.

    • Champion nutrition regulation when navigating the trade and nutrition policy environment. Trade policies can be inconsistent with health policies.

    • Lastly, push for stronger global monitoring frameworks to track corporate accountability in health. This should include clear conflict of interest policies, information management, and exposing when corporations try to shape their own evidence-base or discredit research that would be supportive of public health policies.

    – Sugary drinks, processed foods, alcohol and tobacco are big killers: why the G20 should add its weight to health taxes
    – https://theconversation.com/sugary-drinks-processed-foods-alcohol-and-tobacco-are-big-killers-why-the-g20-should-add-its-weight-to-health-taxes-256024

    MIL OSI Africa –

  • MIL-OSI Global: Sugary drinks, processed foods, alcohol and tobacco are big killers: why the G20 should add its weight to health taxes

    Source: The Conversation – Africa – By Karen Hofman, Professor and Programme Director, SA MRC Centre for Health Economics and Decision Science – PRICELESS SA (Priority Cost Effective Lessons in Systems Strengthening South Africa), University of the Witwatersrand

    By 2030, non-communicable diseases will account for 75% of all deaths annually. Eight percent of these will be in the global south. Most of these diseases are what we call silent killers: type 2 diabetes, high blood pressure and heart disease, as well as certain types of cancer at increasingly younger ages.

    The consumption of sugary drinks and processed foods high in sugar, salt and saturated fats is fuelling these pandemics. And increasingly advertising is being seen as the means by which the consumption of unhealthy products is promoted. This translates into the growth of non-communicable diseases in populations across the globe. This rising threat is driven largely by the way in which markets and industries are organised, which, in turn, shapes social norms towards consumption of tobacco, alcohol, food and sugary beverages.

    This process is what’s known as commercial determinants of health.

    Products that top the list in terms of their risk to health are tobacco, sugary beverages, ultra processed food and alcohol.

    These products are heavily advertised. For example, in South Africa from 2013 to 2019, sugary beverage manufacturers spent US$191 million (R3.7 billion) to advertise their products. Many of the TV advertisements for sugary drinks were placed during child and family viewing time, between 3pm and 7pm.

    Over the past decade a number of countries have introduced policies in a bid to limit the use and intake of harmful food and beverages. These have ranged from taxes on certain products, such as sugar, alcohol and tobacco, to bans on advertising. Many have proved effective. But there are still big gaps in policies to control these harmful products.

    As academics who have researched this field for three decades we believe that the G20 can play a significant role in plugging these gaps. The countries under the G20 umbrella, which represent two thirds of the world’s population, have reason to act: all are experiencing a mounting burden of obesity-related illness such as diabetes, high blood pressure and cancer at ever-younger ages.

    One of South Africa’s G20 presidency health priorities is “stemming the tide of non-communicable diseases”. In our view this is an invitation for the G20 to pledge to combat the drivers of non-communicable diseases.

    The G20 can acknowledge that these diseases are part of a pathological system in which commercial actors are causing ill health. And G20 leaders can acknowledge that progress enacting health taxes has stagnated in most countries.

    By galvanising attention in this way, the G20 can give impetus to a high level United Nations meeting in 2025 at which a new vision for the control and prevention of non-communicable diseases is due to be set. Health taxes and bans on marketing are focus areas.

    What stands in the way of progress

    Efforts by various countries to curb consumption of these harmful products have shown one thing clearly: there’s no silver bullet.

    Nevertheless, evidence shows that consumers are responsive to price. This points to the fact that taxes are a key tool for decreasing demand, especially for young consumers.



    Read more:
    Sugary drinks are a killer: a 20% tax would save lives and rands in South Africa

    There is also mounting evidence that health taxes are progressive for health at a population level – in other words they lead to better health outcomes. Research also shows that they scarcely affect overall employment, if at all.

    But advances on alcohol and tobacco taxes are slow. And there has been little progress on taxes on sugary beverages.

    These taxes remain far too low because health promotion taxes face tough resistance from industry. When any health promotion taxes are proposed, industries deny harms, promote doubt, divert attention, spread disinformation, create front organisations, and varnish their reputations through corporate social responsibility initiatives.

    When taxes do proceed through the legislative or regulatory process, industries influence proposals to make them less effective. They also offer to replace legislation with voluntary commitments. Evidence shows that voluntary commitments do not work.

    What would be gained

    In 2024, a report by a panel of experts showed that US$3.7 trillion in additional revenue could be generated over five years if all countries increased prices of tobacco, alcohol and sugary beverages by 50%.

    This money is sorely needed to boost healthcare. Non-communicable diseases disproportionately affect the most poor and vulnerable and healthcare systems are increasingly unable to cope. Screening, diagnosis, medications and treatment are very expensive for both ministries of finance and at the household level, where health needs can result in catastrophic expenditure.

    And taxes that generate a 50% increase in real prices of tobacco, alcohol and sugary beverages would save 50 million lives globally over 50 years.

    Where to begin

    We believe the G20 platform is a sound one on which to champion efforts to curb the consumption of harmful products. This is because half of the countries in the group have one or two policies for food such as taxes on sweetened beverages. Their experiences can therefore inform debates about how to protect the public from the fatal effects of diet-influenced diseases.

    But building a solid foundation won’t be easy. What’s needed is for the G20 to put its weight behind these key points:

    • Promoting good health before people get sick should be an imperative because the cost of inaction in financial and human terms is just too high.

    • Promoting the case for raising tobacco taxes, because tobacco continues to cause the most death and illness. But taxation has stalled. Approximately 90% of smokers live in countries where cigarettes were equally or more affordable in 2022 than they were five years earlier.

    • A renewed focus on alcohol taxes, which have shown little improvement in the last decade. Alcohol excise taxes are not being used effectively.

    • Fresh impetus behind increasing the level of taxes as a percentage of the cost of sugar sweetened beverages. Evidence suggests that to be effective, taxes on sugar sweetened beverages should increase product prices by at least 20%.

    • Champion nutrition regulation when navigating the trade and nutrition policy environment. Trade policies can be inconsistent with health policies.

    • Lastly, push for stronger global monitoring frameworks to track corporate accountability in health. This should include clear conflict of interest policies, information management, and exposing when corporations try to shape their own evidence-base or discredit research that would be supportive of public health policies.

    Susan Goldstein receives funding from the SAMRC, the NIHR and UNICEF. She is a Board Member of the Southern African Alcohol Policy Alliance: South Africa,

    Karen Hofman 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.

    – ref. Sugary drinks, processed foods, alcohol and tobacco are big killers: why the G20 should add its weight to health taxes – https://theconversation.com/sugary-drinks-processed-foods-alcohol-and-tobacco-are-big-killers-why-the-g20-should-add-its-weight-to-health-taxes-256024

    MIL OSI – Global Reports –

  • MIL-OSI Security: Manchester Man Sentenced for Defrauding State and Federal Taxpayers of Nearly $300,000 in Pandemic Relief Funds

    Source: US FBI

    CONCORD – A Manchester man was sentenced for his involvement in a scheme to fraudulently obtain CARES Act funds from the United States government and the State of New York, Acting U.S. Attorney Jay McCormack announces.

    Kyereem Sackey, age 25, was sentenced by U.S. District Court Judge Landya McCafferty to 18 months in federal prison and 3 years of supervised release.  Sackey was also ordered to make restitution in the amount of $295,167.  In January 2025, Sackey pleaded guilty to one count of conspiracy to commit wire fraud and one count of bank fraud.

    “The defendant exploited a national crisis for personal gain,” said Acting U.S. Attorney Jay McCormack. “He stole nearly $300k in pandemic relief funds that were meant to support struggling families and small businesses. This office will continue to investigate and prosecute those who stole from the government during the pandemic and intentionally depleted the public fisc for personal profit.”

    “While the entire world was focused on dealing with a pandemic, Kyereem Sackey was selfishly focused on exploiting programs designed to help people struggling financially to instead enrich himself,” said Kimberly Milka, Acting Special Agent in Charge of the FBI Boston Division. “With today’s sentence, Mr. Sackey has been held accountable for cheating taxpayers, and the FBI will continue to work with our law enforcement partners to identify and bring to justice those who have committed similar crimes.”

    “Kyereem Sackey and his co-defendants engaged in a scheme to fraudulently obtain New York Department of Labor pandemic-related unemployment insurance benefits and Small Business Administration Payroll Protection Program loans. We will continue to work with our law enforcement partners to hold accountable those who seek to exploit these critical benefit programs,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.

    According to the court documents and statements made in court, Sackey used social media to conspire with others to file false and fraudulent unemployment insurance claims. Sackey filed unemployment insurance claims in the State of New York on behalf of a co-defendant, which he was not entitled to.  When the money was deposited into the co-defendant’s bank account, a portion of the money was sent to Sackey and another co-defendant.  Sackey and his co-defendants filed approximately $50,000 in fraudulent unemployment insurance claims.  In addition to the claim made on behalf of his co-defendant, Sackey filed claims on behalf of a dozen individuals as well as himself resulting in more than $250,000 in fraudulent unemployment benefits to be paid by the State of New York.

    Sackey also used a co-defendant’s information to apply for Paycheck Protection Program (PPP) loans using a false and fraudulent business that did not exist.  Sackey provided the bank with false documents, including fabricated tax documents.  Court records show that Sackey fraudulently applied for and obtained more than $30,000 in PPP loans.

    The Federal Bureau of Investigation and the Department of Labor Office of Inspector General led the investigation.  Valuable assistance was provided by the Manchester Police Department.  Assistant U.S. Attorney John J. Kennedy is prosecuting the case.

    ###

    MIL Security OSI –

  • MIL-OSI Economics: Ida Wolden Bache: Norges Bank’s management of the Government Pension Fund Global

    Source: Bank for International Settlements

    Thank you for the opportunity to talk about Norges Bank’s management of the Government Pension Fund Global (GPFG).

    The investment objective of the GPFG is to achieve the highest possible return at an acceptable level of risk. In 2024, returns were high but lower than the return on the benchmark index against which our performance is measured. The Executive Board emphasises the importance of assessing the performance of the GPFG over long periods and is satisfied that the return over time has been higher than the return on the benchmark index.

    We are in a period of global transition. The framework for global trade and cooperation is in play, and the security policy landscape is changing. This has resulted in substantial volatility in the return on the GPFG’s investments so far in 2025.

    I have three key messages today:

    First, the experience from previous periods of turbulence, as well as the strengthening of Norges Bank’s work on geopolitical risk in recent years, makes the management of the GPFG better equipped to face the current uncertainty.

    Second, the GPFG has a financial objective. Active ownership is about managing risk and creating economic value over time.

    Third, the energy transition provides investment opportunities. We continue to build a portfolio of renewable energy infrastructure assets and have increased the number of such investments over the past year.

    Let me begin with the ability to face new uncertainty.

    The Ministry of Finance determines the investment strategy and the benchmark index, and significant strategic decisions are endorsed by the Storting (Norwegian parliament). The equity allocation is 70 percent, and risk is reduced by broad diversification, across regions, sectors and individual companies. The return of the GPFG tracks the benchmark index closely.

    Equity investments have been important for the GPFG’s performance. At the end of 2024, the cumulative return on the GPFG amounted to over NOK 11 000 billion since inception, of which equity investments accounted for almost NOK 10 000 billion. In order to achieve this return, we have had to withstand several periods of substantial falls in value.

    The repricing of technology stocks after 2000, the financial crisis and the outbreak of the pandemic come to mind. Crises do not repeat themselves. Each crisis is unique and difficult to foresee. Nevertheless, being able to follow the GPFG’s investment strategy through periods of turbulence is a strength.

    The Executive Board is responsible for ensuring that Norges Bank Investment Management (NBIM) has the systems, resources and expertise needed to monitor, assess and manage the risk resulting from geopolitical conditions.

    In recent years, NBIM’s management of this risk has been strengthened. The scenario analysis and stress testing are part of this. NBIM has built up more expertise and improved internal coordination. The Bank also participates in meetings of the Contact Forum established by the Ministry of Finance for the exchange of information on international matters. All of this enhances contingency preparedness, but contingency planning entails continuous work.

    Let me now turn to active ownership. As owner, we have expectations towards the boards of directors of the GPFG’s investee companies. The expectations are described in expectation documents that cover different environmental, social and governance issues. The expectations are principles-based and are publicly available.

    Active ownership is about risk management and creating long-term economic value. Climate risk is one example of this. In our opinion, companies that address risks associated with climate change will perform better over time. As a long-term owner of almost all listed companies, it is in the GPFG’s own-interest to have an orderly energy transition.

    The energy transition also creates investment opportunities. The mandate provides for investing some of the GPFG in unlisted renewable energy infrastructure. These are active investment decisions that are subject to the same requirements for risk and return as the GPFG’s other investments.

    In 2024 and so far in 2025, the Bank has made more investments in unlisted renewable energy infrastructure than previously. The new investments include solar and onshore wind projects in Portugal and Spain and offshore wind projects in the UK, Denmark and Germany. The Bank has also invested in a fund that includes early-stage renewable projects. This fund will invest in different types of technology and across various regions.

    The Executive Board has established a framework for unlisted investments that emphasises that also this part of the GPFG’s management must be cost-efficient and responsible.  High transparency and reporting standards are required.

    Let me conclude. Norges Bank’s management of the GPFG is based on a clear mandate and a framework that has proven robust over time. If we consider that adjustments to the mandate are needed, we are conscious of our responsibility as adviser to the Ministry of Finance.

    We welcome the Ministry’s appointment of an external expert group that will review the GPFG’s investment strategy. Such reviews further develop the management of the GPFG, and we will of course make ourselves available to the group if they so wish.

    With that, I will pass you to Nicolai Tangen.

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: S&P, Moody’s affirm HK’s credit rating

    Source: Hong Kong Information Services

    The Hong Kong Special Administrative Region Government today said that both S&P and Moody’s gave positive evaluations of Hong Kong’s credit profile, including substantial fiscal buffers and foreign exchange reserves, a strong external balance sheet, and high per-capita income levels.

    The statement was made in response to the S&P and Moody’s reports today on maintaining Hong Kong’s AA+ and Aa3 credit rating respectively.

    S&P also affirmed Hong Kong’s stable outlook, while Moody’s upgraded the outlook from negative to stable.

    The Hong Kong SAR Government pointed out that the recent affirmations of Hong Kong’s credit ratings by Fitch, S&P and Moody’s, all with stable outlooks, demonstrate the city’s resilience in maintaining stability amid increasing global economic and financial uncertainties.

    Recent data has further underscored the robustness of Hong Kong’s financial system. Bank deposits have continued to grow, capital markets remain active, and the initial public offering (IPO) market is thriving.

    For example, IPO fundraising in Hong Kong has exceeded $76 billion so far this year, more than seven times the amount raised during the same period last year, and nearly 90% of the total raised in all of last year.

    The Hong Kong SAR Government noted that both S&P and Moody’s have highlighted its substantial fiscal reserves. It has implemented a series of measures to maintain a robust fiscal situation despite pressures on public finances following the pandemic.

    Furthermore, the 2025-26 Budget outlined a reinforced fiscal consolidation programme, focusing primarily on expenditure control, supplemented by revenue generation, to gradually restore balance to government accounts.

    The Operating Account is expected to be largely balanced in this financial year, and will return to a surplus in the next financial year of 2026-27.

    The Capital Account primarily involves capital works expenditure, which represents investments for the future, such as the Northern Metropolis development. Therefore, the Hong Kong SAR Government will make flexible use of market resources, such as public-private partnerships and increasing the scale of bond issuances, to fast-track the related projects.

    Even if so, the level of deficit in the Capital Account will gradually decrease starting from the 2026-27 financial year.

    Overall, after counting the proceeds from bond issuances, the Consolidated Accounts will return to a surplus in the 2028-29 financial year. Over the next five years, fiscal reserves are projected to remain at a level well above $500 billion.

    Hong Kong’s economy saw robust growth in the first quarter of this year. While the tariff war continues to affect the global economy, the recent easing in international trade tensions has slightly alleviated external unfavourable factors and uncertainties.

    Meanwhile, the Mainland continues to advance high-level opening up, with steady economic growth supported by ample policy room and tools to address and resolve various risks and challenges.

    With breakthroughs and expedited developments in technology innovation, green transformation and the digital economy, the Mainland offers the greatest backing for Hong Kong’s economic development.

    Looking ahead, the Hong Kong SAR Government is confident in addressing external challenges while seizing new opportunities in this evolving landscape.

    It remains committed to leveraging Hong Kong’s institutional advantages under the “one country, two systems” framework, reinforcing and enhancing its status as an international financial, shipping and trade centre.

    At the same time, it will make great strides to promote Hong Kong’s development as an international innovation and technology centre. These factors will drive high-quality, sustainable economic and social development.

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: EIA counts U.S. electricity generation in different ways

    Source: US Energy Information Administration

    Filter by article type:

    In-brief analysis

    May 27, 2025

    Data source: U.S. Energy Information Administration, Hourly Electric Grid Monitor

    At EIA, we publish U.S. electricity net generation from two different perspectives:

    Read More ›

    In-brief analysis

    May 22, 2025

    Data source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update, and the U.S. Bureau of Labor Statistics
    Note: Real prices are adjusted to May 2025 dollars.

    The retail price for regular-grade gasoline in the United States on May 19, the Monday before Memorial Day weekend, averaged $3.17 per gallon (gal), 11% (or 41 cents/gal) lower than the price a year ago. After adjusting for inflation (real terms), average U.S. retail gasoline prices going into Memorial Day weekend are 14% lower than last year, largely because crude oil prices have fallen.

    Read More ›

    In-brief analysis

    May 21, 2025

    Data source: United Nations Statistics Division, UN Comtrade
    Note: Excludes trade within regions.

    China has a major role at each stage of the global battery supply chain and dominates interregional trade of minerals. China imported almost 12 million short tons of raw and processed battery minerals, accounting for 44% of interregional trade, and exported almost 11 million short tons of battery materials, packs, and components, or 58% of interregional trade in 2023, according to regional UN Comtrade data.

    Read More ›

    In-depth analysis

    May 20, 2025

    Colorado State University’s hurricane forecast estimates the 2025 hurricane season will exceed the 1991–2020 average, with an estimate of 17 named storms, compared with a historical average of 14 storms. Meteorologists expect 13–18 named storms, including 3–6 storms with direct impacts on the United States, during this year’s Atlantic hurricane season, according to reports from AccuWeather in April.

    Read More ›

    In-brief analysis

    May 19, 2025

    We expect U.S. hydropower generation will increase by 7.5% in 2025 but will remain 2.4% below the 10-year average in our May Short-Term Energy Outlook (STEO). Hydropower generation in 2024 fell to 241 billion kilowatthours (BkWh), the lowest since at least 2010; in 2025, we expect generation will be 259.1 BkWh. This amount of generation would represent 6% of the electricity generation in the country.

    Read More ›

    In-brief analysis

    May 15, 2025

    Data source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO), May 2025, and Oxford Economics
    Note: Excludes 2020 and 2021 as outlier years because of the COVID-19 pandemic.

    We forecast consumption growth of crude oil and other liquid fuels will slow over the next two years, driven by a slowdown in economic growth, particularly in Asia, in our May Short-Term Energy Outlook (STEO).

    Read More ›

    In-depth analysis

    May 14, 2025

    Retail electricity prices have increased faster than the rate of inflation since 2022, and we expect them to continue increasing through 2026, based on forecasts in our Short-Term Energy Outlook. Parts of the country with relatively high electricity prices may experience greater price increases than those with relatively low electricity prices.

    Read More ›

    In-brief analysis

    May 13, 2025

    In our latest Short-Term Energy Outlook, we forecast U.S. annual electricity consumption will increase in 2025 and 2026, surpassing the all-time high reached in 2024. This growth contrasts with the trend of relatively flat electricity demand between the mid-2000s and early 2020s. Much of the recent and forecasted growth in electricity consumption is coming from the commercial sector, which includes data centers, and the industrial sector, which includes manufacturing establishments.

    Read More ›

    In-brief analysis

    May 12, 2025

    The average electric monthly bill for U.S. residential customers was $144 in 2024, but average costs for customers in some states were much higher or lower. Customers in states such as Hawaii and Connecticut, where retail electricity prices are relatively high, paid more than $200 per month for electricity, or more than twice as much as customers in states such as New Mexico and Utah.

    Read More ›

    In-brief analysis

    May 7, 2025

    Data source: FracFocus
    Note: To calculate the number of wells completed per location, we grouped wells within a 50-foot radius into single locations. We then identified wells completed by their completion start and end dates, counting concurrent completions when their completion periods overlapped.

    We estimate that the average number of wells completed simultaneously at the same location in the Lower 48 states has more than doubled, increasing from 1.5 wells in December 2014 to more than 3.0 wells in June 2024. By completing multiple wells at once rather than sequentially, operators can accelerate their production timeline and reduce their cost per well. The increasing number of simultaneous completions reflects significant technological advances in hydraulic fracturing operations, particularly in equipment capabilities and operational strategies.

    Read More ›

    In-brief analysis

    May 6, 2025

    Data source: U.S. Energy Information Administration, Petroleum Supply Monthly; company announcements and trade press
    Note: Other Biofuels includes sustainable aviation fuel (SAF), renewable heating oil, renewable naphtha, renewable propane, renewable gasoline, and other emerging biofuels that are in various stages of development and commercialization. SAF production capacity is an estimate based on company announcements and trade press and only includes hydroprocessed esters and fatty acids (HEFA) SAF. We do not publish SAF production capacity data.

    Sustainable aviation fuel (SAF) production is growing in the United States as new capacity comes online. U.S. production of Other Biofuels, the category we use to capture SAF in our Petroleum Supply Monthly, approximately doubled from December 2024 to February 2025.

    Read More ›

    In-brief analysis

    May 5, 2025

    Data source: AAA

    Retail prices for regular grade gasoline in California are consistently higher than in any other state in the continental United States, often exceeding the national average by more than a dollar per gallon. Several factors contribute to this high price, including state taxes and fees, environmental requirements, special fuel requirements, and isolated petroleum markets.

    Read More ›

    In-brief analysis

    May 1, 2025

    Data source: CME Group, Bloomberg L.P.
    Note: Refinery margin is calculated as the 3-2-1 crack spread on the U.S. Atlantic Coast, which represents two barrels of gasoline and one barrel of distillate fuel oil minus three barrels of Brent crude oil. 1Q25=first quarter of 2025

    During the first quarter of 2025 (1Q25), crude oil prices generally decreased while U.S. refinery margins initially increased before decreasing in the final month of the quarter. In this quarterly update, we review petroleum markets price developments in 1Q25, covering crude oil prices, refinery margins, biofuel compliance credit prices, and natural gas plant liquids prices.

    Read More ›

    In-brief analysis

    Apr 30, 2025

    Data source: Evaluate Energy
    Note: Production expenses include costs of goods sold, operating expenses, and production taxes from company income statements. Interest expenses are in 2024 dollars and deflated using the Consumer Price Index.

    Higher oil prices, increased drilling efficiency, and structurally lower debt needs have contributed to lower interest expenses for some publicly traded U.S. oil companies over the past decade, despite the level of interest rates across the economy being relatively high.

    Read More ›

    In-brief analysis

    Apr 29, 2025

    U.S. imports of petroleum products decreased by 210,000 barrels per day (b/d) in 2024 to average 1.8 million b/d. Imports of all major transportation fuels, such as motor gasoline, diesel, and jet fuel, as well as other products, such as unfinished oils, decreased.

    Read More ›

    MIL OSI USA News –

  • India committed to peace and progress, says PM Modi in Gandhinagar

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi on Tuesday reiterated India’s commitment to peace, progress, and the welfare of all citizens, while addressing a large public gathering at Mahatma Mandir in Gandhinagar. The Prime Minister inaugurated development projects worth ₹5,536 crore as part of the 20-year celebration of Gujarat’s Urban Growth Story.

    The Prime Minister said that India has always extended a hand of friendship and support in times of crisis, yet often faced violent responses in return. Addressing the youth, he urged them to understand how the country has been systematically undermined over the decades.

    Referring to the Indus Waters Treaty, which has recently been put in abeyance, the Prime Minister highlighted concerns regarding water management in Jammu and Kashmir. He said that although dams were constructed, proper maintenance, including desilting and gate operations, was neglected for six decades. As a result, storage capacity dropped drastically, with reservoirs functioning at only 2 to 3 percent of their full potential. He asserted that every Indian has a rightful claim to access water and that while no drastic step has been taken, initial corrective measures have now begun.

    Reaffirming India’s peaceful approach, the Prime Minister said, “We seek no hostility with anyone. India desires peace and prosperity, not only for itself but for the entire world.” He underlined the government’s firm determination to ensure national progress and improve the quality of life for every citizen.

    The Prime Minister noted that May 26 marks the anniversary of his first swearing-in ceremony as Prime Minister in 2014. At that time, India ranked 11th in the global economy. He spoke of the numerous challenges the country has faced since then, including the COVID-19 pandemic, border tensions, and natural disasters. Despite these hurdles, he said India had moved up to become the world’s fourth-largest economy, showcasing the country’s resilience and developmental strides.

    The Prime Minister also recalled his roots in Gujarat, acknowledging the values and lessons he imbibed from his upbringing. He expressed gratitude to citizens for their continued faith in him and reaffirmed his commitment to working tirelessly for their welfare.

    Congratulating the Gujarat government for its sustained focus on urban development, Prime Minister Modi praised the state’s initiative -Gujarat Urban Growth Story- launched in 2005, which now completes two decades. He said that the Gujarat Government had not only celebrated its achievements but also used the learnings of the past to prepare a roadmap for the future. The newly unveiled strategy, he said, reflects a clear and structured vision to ensure sustainable urban progress for the next generation.

  • MIL-OSI Asia-Pac: President Lai meets delegation from European Parliament

    Source: Republic of China Taiwan

    Details
    2025-05-20
    President Lai hosts state banquet for President Surangel Whipps Jr. of Republic of Palau
    On the evening of May 20, President Lai Ching-te, accompanied by Vice President Bi-khim Hsiao, hosted a state banquet at the Presidential Office in honor of President Surangel Whipps Jr. of the Republic of Palau and his wife. In remarks, President Lai said that he looks forward to working closely with President Whipps to promote tourism exchanges and sports cooperation so that Taiwan and Palau shine brightly together on the international stage. A translation of President Lai’s remarks follows: It is a pleasure to host this banquet tonight at the Presidential Office for President Whipps, First Lady Valerie Whipps, and the esteemed members of their delegation. Welcome to Taiwan. During my trips to Palau in 2022 and last year, President and First Lady Whipps received me with great hospitality. Wearing my island shirt, I enjoyed a very friendly reception from the people of Palau. It felt warm and friendly, just like being welcomed back home. The first time I visited Palau, President Whipps and I piloted a boat to the Milky Way lagoon. We both tried volcanic mud facial masks. We also fished together and enjoyed the breeze as we walked on the beach. Last year, on my second visit to Palau, I was honored to be invited to address the National Congress. I also observed the results of the close bilateral cooperation between our two nations. Due to its world-famous ocean scenery, Palau is sometimes referred to as “God’s aquarium.” And it is even possible to snorkel with sharks. It leaves a deep impression. Nothing compares to seeing Palau firsthand. During the COVID-19 pandemic, Taiwan and Palau launched a travel bubble that created a safe means of travel. Now, with the pandemic behind us, I hope that even more Taiwanese can tour Palau and gain a greater understanding of our diplomatic ally. In addition to tourism exchanges, I mentioned on my visit to Palau last year that I hoped Taiwan and Palau could promote sports cooperation by providing training away from home. Next month, Palau will be holding the Pacific Mini Games. And right now, Palau’s national baseball and table tennis teams are holding training sessions here in Taiwan. We will do our utmost to support Palau’s national players and we hope they stand out and achieve outstanding results in the events. I look forward to working closely with President Whipps so that Taiwan and Palau shine brightly together on the international stage. Thank you! Mesulang! President Whipps then delivered remarks, saying that it is truly an honor to be here once again one year after President Lai’s inauguration. Mentioning that this is his first state visit after being reelected to a second term, he said that it is important to be here among friends, and that we are more than friends, we are family. He thanked President Lai for the generous words and, most importantly, Taiwan’s enduring support. He remarked that our relationship continues to get stronger in each passing year. President Whipps said that President Lai’s diplomacy initiative, leadership, and vision deeply resonate with them. Diplomacy must be rooted in our shared values, he said, and an unwavering support for our allies and a commitment to a sustainable, inclusive development are all deeply appreciated by their people. President Whipps emphasized that, as we look into the future and the challenges that we face, from security to climate change, it is so important that we are united. He added that it is important for the world, and especially important for them in Palau, that they stand up for Taiwan, so that Taiwan can participate on international fora that address climate change, security, and health, because they know the world is better when Taiwan has a seat at the table. Mentioning that Palau will host the Pacific Islands Forum next year, President Whipps said that Palau remains committed to working closely with Taiwan to ensure a successful event, and that they will continue to speak up for Taiwan’s indispensable contributions as we stand together against any efforts to silence or isolate democratic partners. President Whipps said that our nations have navigated challenges and emerged stronger, bound by a partnership that is built on trust, respect, and hope for a better world. Whether it is in clean energy, education, smart medicine, or tourism, our shared journey is just beginning, he said, and we are stronger together.  Also in attendance at the banquet were Palauan Minister of State Gustav Aitaro, Minister of Public Infrastructure and Industries Charles Obichang, Minister of Human Resources, Culture, Tourism and Development Ngiraibelas Tmetuchl, Senate Floor Leader Kerai Mariur, House of Delegates Floor Leader Warren Umetaro, High Chief of Ngiwal State Elliot Udui, Governor of Peleliu State Emais Roberts, and Governor of Koror State Eyos Rudimch.

    Details
    2025-05-20
    President Lai and President Surangel S. Whipps, Jr. of Palau hold bilateral talks and witness signing of cooperation agreements  
    On the afternoon of May 20, following a welcome ceremony with military honors for President Surangel S. Whipps, Jr. of the Republic of Palau and his wife, President Lai Ching-te, accompanied by Vice President Bi-khim Hsiao, held bilateral talks with President Whipps at the Presidential Office. The two leaders also jointly witnessed the signing of a technical cooperation agreement and an agreement on diplomatic staff training cooperation. In remarks, President Lai thanked Palau for standing firm in its backing of Taiwan’s international participation as geopolitical tensions continue to increase in the Pacific region. He added that he looks forward to the cooperative ties between Taiwan and Palau continuing to expand into even broader areas, allowing our economies and societies to further progress as we jointly advance peace, stability, and prosperity in the Indo-Pacific region. A translation of President Lai’s remarks follows: I welcome our guests to Taiwan once again. Last year on May 20, President Whipps led a delegation to attend the inauguration ceremony for myself and Vice President Hsiao. I am delighted, on the anniversary of my first year in office, to meet with old friends of Taiwan again, as President Whipps returns for this visit. Taiwan-Palau relations have grown even closer in recent years thanks to the strong support of President Whipps. In 2022, during my term as vice president, I led a delegation to Palau as a demonstration of how our nations were together boosting tourism development as we jointly faced the challenges of the COVID-19 pandemic. Every time I visit Palau, and every time I meet with President Whipps, I feel very deeply that Taiwan and Palau are like family. We are both maritime nations and share a common Austronesian heritage and culture. We are also staunch partners in upholding such values as freedom, democracy, and respect for human rights. Last December, when I went on my first overseas trip since taking office, one of the nations I visited was Palau. We celebrated the 30th anniversary of Palau’s independence and 25 years of diplomatic relations, underscoring our friendly ties. Taiwan and Palau enjoy close exchanges and cooperation in a range of areas, including climate change, education, agriculture and fisheries, healthcare, humanitarian assistance, sports, and culture. After this meeting, President Whipps and I will witness the signing of a technical cooperation agreement and an agreement on diplomatic staff training cooperation, demonstrating once again our diverse collaboration and strong friendship. I believe that by working together, Taiwan and Palau can contribute to each other’s development and overcome the regional and global challenges we currently face. In particular, as geopolitical tensions continue to increase in the Pacific region, Palau has wisely and courageously upheld democratic values and stood firm in its backing of Taiwan’s international participation. Palau has never stopped voicing support for Taiwan, including at the United Nations General Assembly, the World Health Organization, the UN Framework Convention on Climate Change Conference of the Parties, and the UN Ocean Conference. We have been deeply moved by this support. I thank President Whipps again for his high regard and support for Taiwan. I look forward to the cooperative ties between our nations continuing to expand into even broader areas. This will allow our economies and societies to further progress as we jointly advance peace, stability, and prosperity in the Indo-Pacific region. President Whipps then delivered remarks, saying that it is a great honor for him to be here, standing in this historic place – a symbol of strength, resilience, and the democratic spirit of the Taiwanese people. On behalf of the government of Palau, President Whipps extended heartfelt gratitude to President Lai and the people of Taiwan for the warm welcome and gracious hospitality toward him and his delegation. President Whipps then extended sincere thanks for President Lai’s visit to Palau in December – his second visit to Palau – and for having Minister of Foreign Affairs Lin Chia-lung (林佳龍) attend his inauguration as a special envoy. He added that this also marks his third visit to Taiwan since President Lai took office, saying that this demonstrates the strength of our growing relationship. President Whipps indicated that the increased engagements and numerous entrepreneurs that President Lai has brought from Taiwan to Palau have resulted in fruitful visits, and that President Lai’s leadership represents hope, unity, and continued advancement of democracy and freedom, not only for Taiwan, but for the broader Indo-Pacific region. President Whipps went on to say that this visit to Taiwan reaffirms our deep friendship and shared values between our two nations. He emphasized that Palau and Taiwan are bound not by proximity, but by purpose, in that both are island nations and believe in human dignity, the rule of law, and the right of our people to determine their own futures. President Whipps stated that although we are celebrating 26 years of diplomatic relations, Taiwan has been a steadfast partner of Palau for decades, and that one of the MOUs they are signing further extends the relationship that began in December of 1984. From healthcare and medical missions, to education, agriculture, renewable energy, infrastructure, the private sector, tourism development, and climate resilience, he said, our cooperation has improved lives and strengthened our communities. The president also indicated that during the COVID-19 pandemic, Taiwan stood with Palau, noting that both sides began the tourism bubble, and that President Lai came to Palau to reopen the two weekly direct flights that have now been increased to four. That solidarity will never be forgotten, he said. As the world faces growing uncertainty and complex challenges from climate change to global tensions, President Whipps said, this friendship becomes even more vital. The president concluded his remarks by expressing hope that both nations continue to stand together, work together, and advocate together for peace, prosperity, and for the right of small nations to be seen, heard, and respected. After the bilateral talks, President Lai and President Whipps witnessed the signing of the technical cooperation agreement and the agreement on diplomatic staff training cooperation by Minister Lin and Palauan Minister of State Gustav Aitaro. The delegation also included Palauan Minister of Public Infrastructure and Industries Charles Obichang, Minister of Human Resources, Culture, Tourism and Development Ngiraibelas Tmetuchl, Senate Floor Leader Kerai Mariur, House of Delegates Floor Leader Warren Umetaro, High Chief of Ngiwal State Elliot Udui, Governor of Peleliu State Emais Roberts, and Governor of Koror State Eyos Rudimch.  

    Details
    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

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    2025-05-13
    President Lai interviewed by Japan’s Nikkei  
    In a recent interview with Japan’s Nikkei, President Lai Ching-te responded to questions regarding Taiwan-Japan and Taiwan-United States relations, cross-strait relations, the semiconductor industry, and the international economic and trade landscape. The interview was published by Nikkei on May 13. President Lai indicated that Nikkei, Inc. is a global news organization that has received significant recognition both domestically and internationally, and that he is deeply honored to be interviewed by Nikkei and grateful for their invitation. The president said that he would like to take this rare opportunity to thank Japan’s government, National Diet, society, and public for their longstanding support for Taiwan. Noting that current Prime Minister Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio have all strongly supported Taiwan, he said that the peoples of Taiwan and Japan also have a deep mutual affection, and that through the interview, he hopes to enhance the bilateral relationship between Taiwan and Japan, deepen the affection between our peoples, and foster more future cooperation to promote prosperity and development in both countries. In response to questions raised on the free trade system and the recent tariff war, President Lai indicated that over the past few decades, the free economy headed by the Western world and led by the US has brought economic prosperity and political stability to Taiwan and Japan. At the same time, he said, we have also learned or followed many Western values. The president said he believes that Taiwan and Japan are exemplary students, but some countries are not. Therefore, he said, the biggest crisis right now is China, which exploits the free trade system to engage in plagiarism and counterfeiting, infringe on intellectual property rights, and even provide massive government subsidies that facilitate the dumping of low-priced goods worldwide, which has a major impact on many countries including Japan and Taiwan. If this kind of unfair trade is not resolved, he said, the stable societies and economic prosperity we have painstakingly built over decades, as well as some of the values we pursue, could be destroyed. Therefore, President Lai said he thinks it is worthwhile for us to observe the recent willingness of the US to address unfair trade, and if necessary, offer assistance. President Lai emphasized that the national strategic plan for Taiwanese industries is for them to be rooted in Taiwan while expanding their global presence and marketing worldwide. Therefore, he said, while the 32 percent tariff increase imposed by the US on Taiwan is indeed a major challenge, we are willing to address it seriously and find opportunities within that challenge, making Taiwan’s strategic plan for industry even more comprehensive. When asked about Taiwan’s trade arrangements, President Lai indicated that in 2010 China accounted for 83.8 percent of Taiwan’s outbound investment, but last year it accounted for only 7.5 percent. In 2020, he went on, 43.9 percent of Taiwan’s exports went to China, but that figure dropped to 31.7 percent in 2024. The president said that we have systematically transferred investments from Taiwanese enterprises to Japan, Southeast Asia, Europe, and the US. Therefore, he said, last year Taiwan’s largest outbound investment was in the US, accounting for roughly 40 percent of the total. Nevertheless, only 23.4 percent of Taiwanese products were sold to the US, with 76.6 percent sold to places other than the US, he said.  The president emphasized that we don’t want to put all our eggs in one basket, and hope to establish a global presence. Under these circumstances, he said, Taiwan is very eager to cooperate with Japan. President Lai stated that at this moment, the Indo-Pacific and international community really need Japan’s leadership, especially to make the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) excel in its functions, and also requested Japan to support Taiwan’s CPTPP accession. The president said that Taiwan hopes to sign an Economic Partnership Agreement (EPA) with Japan to build closer ties in economic trade and promote further investment, and that we also hope to strengthen relations with the European Union, and even other regions. Currently, he said, we are proposing an initiative on global semiconductor supply chain partnerships for democracies, because the semiconductor industry is an ecosystem. The president raised the example that Japan has materials, equipment, and technology; the US has IC design and marketing; Taiwan has production and manufacturing; and the Netherlands excels in equipment, saying we therefore hope to leverage Taiwan’s advantages in production and manufacturing to connect the democratic community and establish a global non-red supply chain for semiconductors, ensuring further world prosperity and development in the future, and ensuring that free trade can continue to function without being affected by dumping, which would undermine future prosperity and development. The president stated that as we want industries to expand their global presence and market internationally while staying rooted here in Taiwan, having industries rooted in Taiwan involves promoting pay raises for employees, tax cuts, and deregulation, as well as promoting enterprise investment tax credits. He said that we have also proposed Three Major Programs for Investing in Taiwan for Taiwanese enterprises and are actively resolving issues regarding access to water, electricity, land, human resources, and professional talent so that the business community can return to Taiwan to invest, or enterprises in Taiwan can increase their investments. He went on to say that we are also actively signing bilateral investment agreements with friends and allies so that when our companies invest and expand their presence abroad, their rights and interests as investors are ensured.  President Lai mentioned that Taiwan hopes to sign an EPA with Japan, similar to the Taiwan-US Initiative on 21st-Century Trade and the Economic Prosperity Partnership Dialogue, or the Enhanced Trade Partnership arrangement with the United Kingdom, or similar agreements or memorandums of understanding with Canada and Australia that allow Taiwanese products to be marketed worldwide, concluding that those are our overall arrangements. Looking at the history of Taiwan’s industrial development, President Lai indicated, of course it began in Taiwan, and then moved west to China and south to Southeast Asia. He said that we hope to take this opportunity to strengthen cooperation with Japan to the north, across the Pacific Ocean to the east, and develop the North American market, making Taiwan’s industries even stronger. In other words, he said, while Taiwan sees the current reciprocal tariffs imposed by the US as a kind of challenge, it also views these changes positively. On the topic of pressure from China affecting Taiwan’s participation in international frameworks such as the CPTPP or its signing of an EPA with Japan, President Lai responded that the key point is what kind of attitude we should adopt in viewing China’s acts of oppression. If we act based on our belief in free trade, he said, or on the universal values we pursue – democracy, freedom, and respect for human rights – and also on the understanding that a bilateral trade agreement between Taiwan and Japan would contribute to the economic prosperity and development of both countries, or that Taiwan’s accession to the CPTPP would benefit progress and prosperity in the Indo-Pacific region, then he hopes that friends and allies will strongly support us. On the Trump administration’s intentions regarding the reciprocal tariff policy and the possibility of taxing semiconductors, as well as how Taiwan plans to respond, President Lai said that since President Trump took office, he has paid close attention to interviews with both him and his staff. The president said that several of President Trump’s main intentions are: First, he wants to address the US fiscal situation. For example, President Lai said, while the US GDP is about US$29 trillion annually, its national debt stands at US$36 trillion, which is roughly 124 percent of GDP. Second, he went on, annual government spending exceeds US$6.5 trillion, but revenues are only around US$4.5 trillion, resulting in a nearly US$2 trillion deficit each year, about 7 percent of GDP. Third, he said, the US pays nearly US$1.2 trillion in interest annually, which exceeds the US$1 trillion defense budget and accounts for more than 3 percent of GDP. Fourth, President Trump still wants to implement tax cuts, aiming to reduce taxes for 85 percent of Americans, he said, noting that this would cost between US$500 billion and US$1 trillion. These points, President Lai said, illustrate his first goal: solving the fiscal problem. President Lai went on to say that second, the US feels the threat of China and believes that reindustrialization is essential; without reindustrialization, the US risks a growing gap in industrial capacity compared to China. Third, he said, in this era of global smart technology, President Trump wants to lead the nation to become a world center of AI. Fourth, he aims to ensure world peace and prevent future wars, President Lai said. In regard to what the US seeks to achieve, he said he believes these four areas form the core of the Trump administration’s intentions, and that is why President Trump has raised tariffs, demanded that trading partners purchase more American goods, and encouraged friendly and allied nations to invest in the US, all in order to achieve these goals. President Lai indicated that the 32 percent reciprocal tariff poses a critical challenge for Taiwan, and we must treat it seriously. He said that our approach is not confrontation, but negotiation to reduce tariffs, and that we have also agreed to measures such as procurement, investment, resolving non-tariff trade barriers, and addressing origin washing in order to effectively reduce the trade deficit between Taiwan and the US. Of course, he said, through this negotiation process, we also hope to turn challenges into opportunities. The president said that first, we aim to start negotiations from the proposal of zero tariffs and seek to establish a bilateral trade agreement with the US. Second, he went on, we hope to support US reindustrialization and its aim to become a world AI hub through investment, while simultaneously upgrading and transforming Taiwan’s industries, which would help further integrate Taiwan’s industries into the US economic structure, ensuring Taiwan’s long-term development.  President Lai emphasized again that Taiwan’s national industrial strategy is for industries to stay firmly rooted in Taiwan while expanding their global presence and marketing worldwide. He repeated that we have gone from moving westward across the Taiwan Strait, to shifting southbound, to working closer northward with Japan, and now the time is ripe for us to expand eastward by investing in North America. In other words, he said, while we take this challenge seriously to protect national interests and ensure that no industry is sacrificed, we also hope these negotiations will lead to deeper Taiwan-US trade relations through Taiwanese investment in the US, concluding that these are our expectations. The president stated that naturally, the reciprocal tariffs imposed by the US will have an impact on Taiwanese industries, so in response, the Taiwanese government has already proposed support measures for affected industries totaling NT$93 billion. In addition, he said, we have outlined broader needs for Taiwan’s long-term development, which will be covered by a special budget proposal of NT$410 billion, noting that this has already been approved by the Executive Yuan and will be submitted to the Legislative Yuan for review. He said that this special budget proposal addresses four main areas: supporting industries, stabilizing employment, protecting people’s livelihoods, and enhancing resilience. As for tariffs on semiconductors, President Lai said, Taiwan Semiconductor Manufacturing Company (TSMC) has committed to investing in the US at the request of its customers. He said he believes that TSMC’s industry chain will follow suit, and that these are concrete actions that are unrelated to tariffs. However, he said, if the US were to invoke Section 232 and impose tariffs on semiconductors or related industries, it would discourage Taiwanese semiconductor and ICT investments in the US, and that we will make this position clear to the US going forward. President Lai indicated that among Taiwan’s exports to the US, there are two main categories: ICT products and electronic components, which together account for 65.4 percent. These are essential to the US, he said, unlike final goods such as cups, tables, or mattresses. He went on to say that what Taiwan sells to the US are the technological products required by AI designers like NVIDIA, AMD, Amazon, Google, and Apple, and that therefore, we will make sure the US understands clearly that we are not exporting end products, but the high-tech components necessary for the US to reindustrialize and become a global AI center. Furthermore, the president said, Taiwan is also willing to increase its defense budget and military procurement. He stated that Taiwan is committed to defending itself and is strongly willing to cooperate with friends and allies to ensure regional peace and stability, and that this is also something President Trump hopes to see. Asked whether TSMC’s fabs overseas could weaken Taiwan’s strategic position as a key hub for semiconductor manufacturing, and whether that could then give other countries fewer incentives to protect Taiwan, President Lai responded by saying that political leaders around the world including Japan’s Prime Minister Ishiba and former Prime Ministers Abe, Suga, and Kishida have emphasized, at the G7 and other major international fora, that peace and stability in the Taiwan Strait are essential for global security and prosperity. In other words, he explained, the international community cares about Taiwan and supports peace and stability in the Taiwan Strait because Taiwan is located in the first island chain in the Indo-Pacific, directly facing China. He pointed out that if Taiwan is not protected, China’s expansionist ambitions will certainly grow, which would impact the current rules-based international order. Thus, he said, the international community willingly cares about Taiwan and supports stability in the Taiwan Strait – that is the reason, and it has no direct connection with TSMC. He noted that after all, TSMC has not made investments in that many countries, stressing that, on that point, it is clear. President Lai said that TSMC’s investments in Japan, Europe, and the US are all natural, normal economic and investment activities. He said that Taiwan is a democratic country whose society is based on the rule of law, so when Taiwanese companies need to invest around the world for business needs, the government will support those investments in principle so long as they do not harm national interests. President Lai said that after TSMC Chairman C.C. Wei (魏哲家) held a press conference with President Trump to announce the investment in the US, Chairman Wei returned to Taiwan to hold a press conference with him at the Presidential Office, where the chairman explained to the Taiwanese public that TSMC’s R&D center will remain in Taiwan and that the facilities it has already committed to investing in here will not change and will not be affected. So, the president explained, to put it another way, TSMC will not be weakened by its investment in the US. He further emphasized that Taiwan has strengths in semiconductor manufacturing and is very willing to work alongside other democratic countries to promote the next stage of global prosperity and development. A question was raised about which side should be chosen between the US and China, under the current perception of a return to the Cold War, with East and West facing off as two opposing blocs. President Lai responded by saying that some experts and scholars describe the current situation as entering a new Cold War era between democratic and authoritarian camps; others assert that the war has already begun, including information warfare, economic and trade wars, and the ongoing wars in Europe – the Russo-Ukrainian War – and the Middle East, and the Israel-Hamas conflict. The president said that these are all matters experts have cautioned about, noting that he is not a historian and so will not attempt to define today’s political situation from an academic standpoint. However, he said, he believes that every country has a choice, which is to say, Taiwan, Japan, or any other nation does not necessarily have to choose between the US and China. What we are deciding, he said, is whether our country will maintain a democratic constitutional system or regress into an authoritarian regime, and this is essentially a choice of values – not merely a choice between two major powers. President Lai said that Taiwan’s situation is different from other countries because we face a direct threat from China. He pointed out that we have experienced military conflicts such as the August 23 Artillery Battle and the Battle of Guningtou – actual wars between the Republic of China and the People’s Republic of China. He said that China’s ambition to annex Taiwan has never wavered, and that today, China’s political and military intimidation, as well as internal united front infiltration, are growing increasingly intense. Therefore, he underlined, to defend democracy and sovereignty, protect our free and democratic system, and ensure the safety of our people’s lives and property, Taiwan’s choice is clear. President Lai said that China’s military exercises are not limited to the Taiwan Strait, and include the East China Sea, South China Sea, and even the Sea of Japan, as well as areas around Korea and Australia. Emphasizing that Taiwan, Japan, Australia, and the Philippines are all democratic nations, the president said that Taiwan’s choice is clear, and that he believes Japan also has no other choice. We are all democratic countries, he said, whose people have long pursued the universal values of democracy, freedom, and respect for human rights, and that is what is most important. Regarding the intensifying tensions between the US and China, the president was asked what roles Taiwan and Japan can play. President Lai responded that in his view, Japan is a powerful nation, and he sincerely hopes that Japan can take a leading role amid these changes in the international landscape. He said he believes that countries in the Indo-Pacific region are also willing to respond. He suggested several areas where we can work together: first, democracy and peace; second, innovation and prosperity; and third, justice and sustainability. President Lai stated that in the face of authoritarian threats, we should let peace be our beacon and democracy our compass as we respond to the challenges posed by authoritarian states. Second, he added, as the world enters an era characterized by the comprehensive adoption of smart technologies, Japan and Taiwan should collaborate in the field of innovation to further drive regional prosperity and development. Third, he continued, is justice and sustainability. He explained that because international society still has many issues that need to be resolved, Taiwan and Japan can cooperate for the public good, helping countries in need around the world, and cooperating to address climate change and achieve net-zero transition by 2050. Asked whether he hopes that the US will continue to be a leader in the liberal democratic system, President Lai responded by saying that although the US severed diplomatic ties with the Republic of China, for the past few decades it has assisted Taiwan in various areas such as national defense, security, and countering threats from China, based on the Taiwan Relations Act and the Six Assurances. He pointed out that Taiwan has also benefited, directly and indirectly, in terms of politics, democracy, and economic prosperity thanks to the US, and so Taiwan naturally hopes that the US remains strong and continues to lead the world. President Lai said that when the US encounters difficulties, whether financial difficulties, reindustrialization issues, or becoming a global center for AI, and hopes to receive support from its friends and allies to jointly safeguard regional peace and stability, Taiwan is willing to stand together for a common cause. If the US remains strong, he said, that helps Taiwan, the Indo-Pacific region, and the world as a whole. Noting that while the vital role of the US on the global stage has not changed, the president said that after decades of shouldering global responsibilities, it has encountered some issues. Now, it has to make adjustments, he said, stating his firm belief that it will do so swiftly, and quickly resume its leadership role in the world. Asked to comment on remarks he made during his election campaign that he would like to invite China’s President Xi Jinping for bubble tea, President Lai responded that Taiwan is a peace-loving country, and Taiwanese society is inherently kind, and therefore we hope to get along peacefully with China, living in peace and mutual prosperity. So, during his term as vice president, he said, he was expressing the goodwill of Taiwanese society. Noting that while he of course understands that China’s President Xi would have certain difficulties in accepting this, he emphasized that the goodwill of Taiwanese society has always existed. If China reflects on the past two or three decades, he said, it will see that its economy was able to develop with Taiwan as its largest foreign investor. The president explained that every year, 1 to 2 million Taiwanese were starting businesses or investing in China, creating numerous job opportunities and stabilizing Chinese society. While many Taiwanese businesses have profited, he said, Chinese society has benefited even more. He added that every time a natural disaster occurs, if China is in need, Taiwanese always offer donations. Therefore, the president said, he hopes that China can face the reality of the Republic of China’s existence and understand that the people of Taiwan hope to continue living free and democratic lives with respect for human rights. He also expressed hope that China can pay attention to the goodwill of Taiwanese society. He underlined that we have not abandoned the notion that as long as there is parity, dignity, exchange, and cooperation, the goodwill of choosing dialogue over confrontation and exchange over containment will always exist. Asked for his view on the national security reforms in response to China’s espionage activities and infiltration attempts, President Lai said that China’s united front infiltration activities in Taiwan are indeed very serious. He said that China’s ambitions to annex Taiwan rely not only on the use of political and military intimidation, but also on its long-term united front and infiltration activities in Taiwanese society. Recently, he pointed out, the Taiwan High Prosecutors Office of the Ministry of Justice prosecuted 64 spies, which is three times the number in 2021, and in addition to active-duty military personnel, many retired military personnel were also indicted. Moreover, he added, Taiwan also has the Chinese Unification Promotion Party, which has a background in organized crime, Rehabilitation Alliance Party, which was established by retired military personnel, and Republic of China Taiwan Military Government, which is also composed of retired generals. He explained that these are all China’s front organizations, and they plan one day to engage in collaboration within Taiwan, which shows the seriousness of China’s infiltration in Taiwan. Therefore, the president said, in the recent past he convened a high-level national security meeting and proposed 17 response strategies across five areas. He then enumerated the five areas: first, to address China’s threat to Taiwan’s sovereignty; second, to respond to the threat of China’s obscuring the Taiwanese people’s sense of national identity; third, to respond to the threat of China’s infiltrating and recruiting members of the ROC Armed Forces as spies; fourth, to respond to the threat of China’s infiltration of Taiwanese society through societal exchanges and united front work; and fifth, to respond to the threat of China using “integration plans” to draw Taiwan’s young people and Taiwanese businesses into its united front activities. In response to these five major threats, he said, he has proposed 17 response strategies, one of which being to restore the military trial system. He explained that if active-duty military personnel commit military crimes, they must be subject to military trials, and said that this expresses the Taiwanese government’s determination to respond to China’s united front infiltration and the subversion of Taiwan. Responding to the question of which actions Taiwan can take to guard against China’s threats to regional security, President Lai said that many people are worried that the increasingly tense situation may lead to accidental conflict and the outbreak of war. He stated his own view that Taiwan is committed to facing China’s various threats with caution. Taiwan is never the source of these problems, he emphasized, and if there is an accidental conflict and it turns into a full-scale war, it will certainly be a deliberate act by China using an accidental conflict as a pretext. He said that when China expanded its military presence in the East China Sea and South China Sea, the international community did not stop it; when China conducted exercises in the Taiwan Strait, the international community did not take strong measures to prevent this from happening. Now, he continued, China is conducting gray-zone exercises, which are aggressions against not only the Taiwan Strait, the South China Sea, and the East China Sea, but also extending to the Sea of Japan and waters near South Korea. He said that at this moment, Taiwan, the Philippines, Japan, and even the US should face these developments candidly and seriously, and we must exhibit unity and cooperation to prevent China’s gray-zone aggression from continuing to expand and prevent China from shifting from a military exercise to combat. If no action is taken now, the president said, the situation may become increasingly serious. Asked about the view of some US analysts who point out that China will have the ability to invade Taiwan around 2027, President Lai responded that Taiwan, as the country on the receiving end of threats and aggression, must plan for the worst and make the best preparations. He recalled a famous saying from the armed forces: “Do not count on the enemy not showing up; count on being ready should it strike.” This is why, he said, he proposed the Four Pillars of Peace action plan. First, he said, we must strengthen our national defense. Second, he added, we must strengthen economic resilience, adding that not only must our economy remain strong, but it must also be resilient, and that we cannot put all our eggs in the same basket, in China, as we have done in the past. Third, he continued, we must stand shoulder to shoulder with friends and allies such as Japan and the US, as well as the democratic community, and we must demonstrate the strength of deterrence to prevent China from making the wrong judgment. Fourth, he emphasized, as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China and seek cross-strait peace and mutual prosperity through exchanges and cooperation. Regarding intensifying US-China confrontation, the president was asked in which areas he thinks Taiwan and Japan should strengthen cooperation; with Japan’s Ishiba administration also being a minority government, the president was asked for his expectations for the Ishiba administration. President Lai said that in the face of rapid and tremendous changes in the political situation, every government faces considerable challenges, especially for minority governments, but the Japanese government led by Prime Minister Ishiba has quite adequately responded with various strategies. Furthermore, he said, Japan is different from Taiwan, explaining that although Japan’s ruling party lacks a majority, political parties in Japan engage in competition domestically while exhibiting unity externally. He said that Taiwan’s situation is more challenging, because the ruling and opposition parties hold different views on the direction of the country, due to differences in national identity. The president expressed his hope that in the future Taiwan and Japan will enjoy even more comprehensive cooperation. He stated that he has always believed that deep historical bonds connect Taiwan and Japan. Over the past several decades, he said, when encountering natural disasters and tragedies, our two nations have assisted each other with mutual care and support. He said that the affection between the people of Taiwan and Japan is like that of a family. Pointing out that both countries face the threat of authoritarianism, he said that we share a mission to safeguard universal values such as democracy, freedom, and respect for human rights. The president said that our two countries should be more open to cooperation in various areas to maintain regional peace and stability as well as to strengthen cooperation in economic and industrial development, such as for semiconductor industry chains and everyday applications of AI, including robots and drones, adding that we can also cooperate on climate change response, such as in hydrogen energy and other strategies. He said our two countries should also continue to strengthen people-to-people exchanges. He then took the opportunity to once again invite our good friends from Japan to visit Taiwan for tourism and learn more about Taiwan, saying that the Taiwanese people wholeheartedly welcome our Japanese friends.  

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    2025-05-09
    President Lai extends congratulations on election of His Holiness Pope Leo XIV  
    Following the successful election of the 267th pope of the Roman Catholic Church, His Holiness Pope Leo XIV, on May 8, President Lai Ching-te extended sincere congratulations on behalf of the people and government of Taiwan, including its Catholic community. The president stated that he looks forward to working with Pope Leo XIV to continue deepening cooperation in the area of humanitarian aid and jointly defend the universal value of religious freedom, expanding and strengthening the alliance between Taiwan and the Vatican. Upon learning of the election results, President Lai directed the Republic of China (Taiwan) Embassy to the Holy See to convey a message of congratulations. In the message, President Lai extended sincere congratulations to Pope Leo XIV on behalf of the people and government of Taiwan, including its Catholic community, expressing confidence that His Holiness will lead the Catholic Church and its 1.4 billion followers worldwide with profound wisdom. President Lai also emphasized that Taiwan looks forward to continuing to work alongside the Holy See in the shared pursuit of peace, justice, religious freedom, solidarity, friendship, and human dignity. This year marks the 83rd anniversary of the establishment of diplomatic ties between Taiwan and the Vatican. Enjoying a strong alliance, Taiwan and the Vatican share such universal values as freedom of religion, respect for human rights, peace, and benevolence, and conduct close exchanges. Taiwan will continue to engage in exchanges and cooperation with the Holy See, further strengthen bilateral relations, and work alongside the Holy See to contribute even more to the world.  

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    2025-05-20
    President Lai interviewed by Nippon Television and Yomiuri TV
    In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

    MIL OSI Asia Pacific News –

  • From Digital India to Digital Classrooms-How Bharat’s Internet Revolution is Reaching its Young Learners

    Source: Government of India

    Source: Government of India (4)

    New Chapter in Bharat Begins

    In a quiet village in rural Karnataka, five young friends huddle below the sprawling banyan tree wide eyed with wonder at the glow of a tablet. What might seem like an ordinary sight in a metropolitan school is a scene of silent transformation in the heart of Bharat. The internet is here — not just as a public utility, but as a storyteller, a teacher, and a window to a thousand possibilities. It’s not just technology but a revolution at work.

    Today, India moves quickly toward a digital future. And while the dust of the world rages outside, applauding the glories of fibre-optic cables adorning urban skyscrapers and metro cities, the real magic is being spun within the fields, villages, and small towns where Digital India, PM-WANI, and PM eVidya are changing destinies — especially for the young learners of this nation.

    On one of my trips to a village in Shivamogga district of Karnataka, a particular image stayed with me: that of children gathered under a tree, connecting to an internet hotspot for their online classes. Behind this is a real force: PM-WANI (Prime Minister Wi-Fi Access Network Interface), a grand scheme under Digital India.

    What is PM-WANI, and Why It Matters?

    Imagine a village school where eight students share two textbooks. Now imagine the same school with a public Wi-Fi hotspot letting every child get access to digital libraries, educational videos, virtual museums, and interactive learning apps. Which one do you think is better? This is what PM-WANI promises.

    Launched in December 2020, PM-WANI is a project under Digital India mission to democratize access to the Internet through public Wi-Fi hotspots at common places like railway stations, village squares, markets, and even under trees. Ordinary spaces have now turned into digital classrooms.

    Why is it a revolution?

    • First of all, it brings affordable, high-speed Internet where there is none.
    • Second, it removes both the geographical and the economic barriers to knowledge.
    • Third, it empowers children and communities by making digital tools accessible.

    Where PM-WANI brings the pipes, PM eVidya brings the water — rich, culturally relevant educational content for these digital pipelines.

    PM eVidya: India’s Learning Lifeline

    This program was launched in 2020, in light of the closure of schools due to the pandemic. With PM eVidya, no child was left behind in learning- no matter where they live.

    It is a complete program integrating the three modes: digital, radio, and television education, while providing various resources including:

    • Diksha platform- interactive e-content and learning tools
    • Swayam Prabha – 34 DTH channels dedicated for education programming
    • Radio School – lessons broadcast in various languages through All India Radio.

    The strength of PM eVidya is in its multi-mode access so that either the child has a smartphone, a television, or even just a simple radio. There are lessons and stories with which they can easily access to satisfy their learning curiosity.

    Already, this effort has touched more than 12 crore students across our country and opened the door completely to the avenue of knowledge and possibilities.

    The stories that technology makes possible are more inspiring to me than the technology itself. For example, in Jharkhand, I read about a girl named Rekha who attended a virtual science class for the very first time in her life, thanks to a PM-WANI hotspot near to where she lives. Another example is of children who were all gathered together in a house in Kerala to watch eVidya lessons while their parents looked on with doting awe. And in a very remote corner of Ladakh, a group of children downloaded e-books about space exploration, thereby dreaming of becoming astronauts someday. Such things are not one-off events. They are going to make quite a different normal.

    A recent government report states that so far, more than 2 lakh public hot spots have been registered under PM-WANI, and this number is increasing rapidly. Each of these is a gateway to knowledge for the children of Bharat.

    Why Does This Matter for Children’s Literature?

    As a children’s author and educator, I have realized the importance of growing with the times in terms of children’s literature. This digital revolution is not confined to cities; neither should be the stories in children’s literature. These should reflect both the old and the familiar, and the new, exciting transformations shaping their world. Kids should get the idea that technology belongs to them, that their dreams are possible.

    When kids read stories where characters, much like them, traverse through digital terrains, it creates normalcy around progress. I hope to achieve this through Little Dreamers of Bharat, by capturing this changing Bharat – where a farmer’s daughter learns coding under a banyan tree, where a young boy watches his grandmother weave patterns he then animates on a tablet. Evolving storytelling must mirror the world in which children are growing up.

    The Cultural Layer: Keeping Bharat at the Heart

    What makes this digital revolution genuinely Indian is how it merges technology with tradition. In many ways, villages of Bharat are not abandoning their roots but have digitized them.

    Diksha and Swayam Prabha offer online lessons on folk music, classical dances, ancient crafts, and regional history. What earlier survived only through oral tradition now sees recorded survival in cloud libraries. Digital India indeed does not erase Bharat’s soul; it preserves it in pixels!

    In Barabanki, Uttar Pradesh, a government school set up a PM-WANI hotspot and supplemented it with online storytelling sessions in Awadhi and Hindi, introducing the children in the area to regional poetry and folk tales through smartphones. Now that’s an awesome model of culture-rooted digital literacy to replicate.

    From Possible to Powerful

    • India boasts over 1.2 billion mobile connections – and now, thanks to PM-WANI, those connections are reaching beyond city limits.
    • Over 12 crore students accessed digital lessons via PM eVidya.
    • Rural children, once excluded from digital conversations, are now coding, creating, and collaborating.

    Children who walked several miles each day to attend school can now learn coding under trees. Girls who never ventured beyond their village now participate in a science fair via the virtual medium. Villages that had no electricity now stream digital stories.

    In Tamil Nadu, there is this project called “E-Library on Wheels”, which is connecting PM-WANI networks with village libraries and enabling children to enjoy access to free e-book, virtual field trips, and video workshops on local crafts and traditions. Such stories prove how this revolution is real. What more can one ask to point out the highest degree of a revolution?

    What Else Needs to Be Done

    Great strides have been made. Yet challenges still exist. We need:

    • More local-language resources for children;
    • More digital literacy of parents and teachers;
    • Reliable power infrastructure to complement digital initiatives;
    • Stories that help reflect this new Bharat in every library and classroom.

    Digital infrastructure should be matched with social infrastructure-awareness campaigns, community centres with internet access, and culturally rich, age-appropriate digital libraries.

    The government has initiated Samagra Shiksha Abhiyan in schools to integrate digital tools in the government schools, but sustained local engagement would be significant for effective results.

    Join the Movement

    As a nation, we are penning a fresh chapter — in which technology is owned by each child, whether she is in Delhi or Doddaballapura. And, to finish writing this chapter, we need the readers, teachers, authors, parents, and policymakers to:

    • Promote and create digital content that is local and culturally embedded.
    • Help children view technology as a tool, not a toy.
    • Record and share success stories from towns and villages.
    • Help public Wi-Fi and digital learning programs thrive.

    Let’s bridge the digital divide not just with devices and networks, but stories, confidence, and culturally rooted narratives.

    The Story is Just Beginning

    We often say children are the future. But in Bharat, the future is already sitting under banyan trees watching glowing screens and dreaming big. Once again, thanks to Digital India, PM-WANI, and PM eVidya; the budding generations—their learning, growing, and connecting abilities—now seem so possible compared to how things were ten years ago.

    As a writer, I find myself in the fortunate position of bearing witness to this revolution and writing about it. We must nurture this movement, amplify its voices, and ensure that every child — whether in bustling Bengaluru or remote Bastar — feels part of India’s digital, cultural, and literary renaissance.

    That’s the kind of magic story worth telling.

    (R. Savitha is an accomplished educator and author with extensive experience developing innovative teaching-learning materials and training programs. With close to 12 years of teaching experience across grades 1 to 12 (CBSE), she has also served as the Head of the English Department in a premier CBSE school, where she led overall curriculum planning and academic initiatives. A certified teacher-trainer, Savitha specializes in enhancing communication skills, grammar, and vocabulary-building through activities. She has conducted numerous pedagogy programs for teachers, empowering them with effective strategies and innovative approaches.

    R. Savitha holds an MA degree in English, an M. Ed, and an MBA. With her vast educational background, she worked as a project manager for the foundational stage at Samvit Research Foundation, curating textbooks and teacher handbooks aligned with NEP 2020. A core member of the NCERT national team, she has contributed to the syllabus and textbook development for the Foundational and Preparatory stages. She excels in creating engaging books for children, teaching-learning materials, and designing creative activities. Her published works reflect her dedication to fostering effective and meaningful learning experiences and enhancing classroom interactions, inspiring both students and educators to explore the transformative power of language and education for the betterment of our nation.)