Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
The Global Digital Forum is taking place in Nizhny Novgorod on June 5 and 6. The event serves as a platform for building a dialogue between representatives of Russian and foreign IT companies, government bodies, and the scientific and expert community. Deputy Prime Minister and Chief of Staff of the Government Dmitry Grigorenko delivered a report at the plenary session “New Digital World: From Monopolies to Equal Partnership”.
Digital technologies have become an integral part of increasing the efficiency of processes in many areas in Russia – from public administration and provision of government services electronically to medicine and creation of additional opportunities in education. Thus, 85% of all permits and licenses in the country are issued electronically, and every second application to the registry office is submitted by newlyweds through “Gosuslugi”.
“Russia is focusing on the development of domestic technologies and is in an active phase of introducing artificial intelligence in various industries. AI can have a great economic effect, speed up and simplify the execution of various tasks. Our country has many solutions that are not inferior to foreign ones, and biometrics services are available that make everyday life easier, for example, checking into hotels or services in MFCs,” said Dmitry Grigorenko.
The Deputy Prime Minister and Head of the Government Staff noted that the IT industry in Russia is demonstrating steady growth. Over the past five years, the number of participants in the register of accredited IT companies has doubled, and their profits have grown sevenfold. In addition, competitive IT solutions have emerged that are not inferior to foreign ones. According to the Deputy Prime Minister, it is important to consider them not only as products for the domestic market, but also as a full-fledged commodity for export. IT solutions in the field of information security, platform solutions and artificial intelligence have the greatest export potential.
The Governor of the Nizhny Novgorod Region, Gleb Nikitin, addressed the participants of the Global Digital Forum with a welcoming speech.
“Today, the Nizhny Novgorod Region is rightfully considered one of the key IT hubs in Russia. We are third in the country – right after Moscow and St. Petersburg – in terms of the level of development of the software development industry, first – in terms of the effectiveness of government support measures for the IT industry. We are building the only IT campus in the country, “Neimark”. Nearby, we will build a modern IT technopark, where the offices of leading technology companies will be located – from international IT giants to fast-growing startups,” emphasized Gleb Nikitin.
Earlier, at CIPR-2025, the results of monitoring the IT industry for 2024 were presented: the contribution of accredited IT companies to the Russian economy amounted to 6%, and for every ruble of government support invested, 2 rubles were received in taxes.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
Alexey Overchuk held a meeting with the Governor of the Sakhalin Region Valery Limarenko.
Deputy Prime Minister Alexey Overchuk held a working meeting with Sakhalin Region Governor Valery Limarenko.
During the conversation, Valery Limarenko spoke about regional climate policy – efforts being undertaken in the Sakhalin Region to improve the environment, reduce greenhouse gas emissions, as well as improve measures aimed at reducing the carbon footprint, and their impact on the sustainable economic development of the region.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
SHANGHAI, June 6 (Xinhua) — The BRICS New Development Bank (NDB) on Friday announced the signing of a 1.2 billion yuan (about 167 million U.S. dollars) syndicated loan agreement to support environmental projects in China.
As noted by the NBR, the agreement, concluded jointly with the Bank of China and the Chinese company Haitong Unitrust International Financial Leasing Co., Ltd., is aimed at financing green leasing sub-projects focused on environmental goals and climate commitments of the PRC.
Under the agreement, the NDB will provide more than 713.32 million yuan, while the Bank of China will provide an additional 500 million yuan. Haitong Unitrust, in turn, will use the funds to purchase and lease equipment for projects in areas such as wastewater treatment, solid waste management and power generation from iron and steel exhaust gases.
To promote balanced regional development, eligible sub-projects will be implemented outside China’s first-tier cities, bringing investment to less developed areas of the country.
“This initiative meets the needs for climate resilience and environmental protection, and also helps increase investment in less developed regions of China,” said Vladimir Kazbekov, Vice President and Chief Operating Officer of the NDB.
The NDB was established in 2015 by Brazil, Russia, India, China and South Africa. It is a multilateral development bank that aims to mobilize resources for infrastructure and sustainable development projects in the BRICS region and other emerging market and developing economies. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — China’s international influence in maritime arbitration continues to grow steadily, with a marked increase in the number of cases involving other countries and regions and a growing degree of internationalization, said Ren Hongbin, chairman of the China Council for the Promotion of International Trade (CCPIT).
Ren Hongbin, also head of the China Maritime Arbitration Commission (CMAC), made the remarks during a high-level dialogue on maritime and commercial arbitration held in Beijing on Friday.
In 2024, CMAC ranked among the world’s leading maritime arbitration institutions in terms of caseload. According to Ren Hongbin, the number of disputes it handled involving other countries and regions increased by 55 percent compared with 2023, accounting for 39 percent of its total cases, with disputes covering 40 countries and regions.
There are currently 284 arbitration institutions in China, which have handled more than 5 million cases with a total value of over 9 trillion yuan (about 1.25 trillion US dollars) involving parties from more than 100 countries and regions.
Looking to the future, Ren Hongbin called for the development of arbitration services based on innovation and urged arbitration institutions to actively explore the application of scientific and technological methods such as digital technology and artificial intelligence.
According to him, the use of information technology will reduce costs and increase efficiency and transparency, which will contribute to the continuous increase in the authority and competitiveness of arbitration services in the global arena. –0–
Building upon this consensus, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, today announced that Canada will extend the Ukraine Goods Remission Order until June 9, 2026.
Canada is continuing to support Ukraine’s economy with a one-year extension on tariff-free importation of Ukrainian goods into Canada.
Canada remains steadfast in its support for Ukraine as it fights to defend its sovereignty, territorial integrity, and democracy. The conflict initiated by Russia, with support from Belarus, continues to severely impact Ukraine’s economy, including its ability to export goods globally.
Since the Ukraine Goods Remission Order was issued on June 9, 2022, Canada has imported over $35 million in goods from Ukraine with $8.5 million in customs duties remitted. The extension is expected to generate approximately $1.2 million in duties remitted from June 10, 2025 to June 9, 2026.
Anton Trofimov (43) of Toronto, Ontario,is facing the following charges for sanctions evasion:
Export, sell, supply or ship a good referred to in Column 1 of Schedule 7 to Russia, contrary to section 3.9 (1) of the Special Economic Measures (Russia) Regulations (SOR/2014-58), thereby committing an offence contrary to section 8 of the Special Economic Measures Act, S.C. 1992, c.17;
Export, sell, supply or ship a good referred to in the Restricted Goods and Technologies List to Russia, contrary to section 3.6 (1) of the Special Economic Measures (Russia) Regulations (SOR/2014-58), thereby committing an offence contrary to section 8 of the Special Economic Measures Act, S.C. 1992, c.17;
Possess proceeds of property obtained by crime, contrary to section 354(1) of the Criminal Code of Canada.
Trofimov made a first appearance in the Ontario Court of Justice at Toronto on May 22, 2025.
“Canada’s sanctions areacritical component to our economic security, and these types of violations pose serious risks in maintaining international peace and global security. Individuals and businesses are responsible for ensuring the end destination of all exports do not fall under these sanctions. The RCMP will continue to pursue individuals or groups who attempt to profit from illegal trade.”-Chief Superintendent Chris Leather Officer in Charge of Criminal Operations, RCMP Central Region
The RCMP works closely with domestic and international partners,including the Financial Transactions and Reports Analysis Centre of Canada, Global Affairs Canada, the Canada Border Services Agency, the United States Department of Commerce’s Bureau of Industry and Security, and the Federal Bureau of Investigation, to prevent and disrupt the illicit trade of technologies with sanctioned states.
“This arrest is an example of how close collaboration with our Canadian partners can result in significant impact such as disruptions to Russia’s attempts to evade U.S. and Canadian sanctions.” –Special Agent in Charge Brett D. Skiles of the FBI Miami Field Office.
“This arrest demonstrates both the importance of the CBSA’s ongoing work to interdict the proliferation of strategic Canadian technology and the crucial cooperation between the CBSA and RCMP in identifying exporters intent on violating sanctions. The CBSA’s Counter Proliferation Operations Section examines more than 1 million export declarations per year and collaborates with external and internal partners to meet Canada’s commitment to enforcing sanctions on strategic exports to Russia.” –Daniel Anson, Director General, Intelligence and Investigations, Canada Border Services Agency
Prosecutions under the Special Economic Measures Act are conducted by the Public Prosecution Service of Canada.
Fast facts
The purpose of the Canada Sanctions regime is to enable the Government of Canada to take economic measures against certain persons in circumstances where an international organization of states, of which Canada is a member, calls on its members to do so.
The RCMPSanctions Programperforms several roles within the Government of Canada’s sanctions regime, including conducting investigations into potential contravention of sanctions, the receipt of information from third parties in accordance with the legislation, and providing assistance to the Minister of Foreign Affairs. For more information on Canadian sanctions enforcement, please visit ourwebsite.
For more information about the high priority items list subject to export controls, please visit the Global Affairs Canadawebsite.
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Chinese Minister of Public Security Wang Xiaohong on Friday stressed the need to make the fight against organized crime regular and continuous, improving mechanisms and enhancing the effectiveness of methods in this fight.
At a meeting on the sustained campaign to combat organized crime, Wang Xiaohong, also a member of the CPC Central Committee Secretariat, said it was necessary to “crush all crime, eliminate all villains, expose all patrons, combat all forms of corruption, and restore order wherever chaos reigns.”
Wang Xiaohong called for intensifying targeted strikes against crime, maintaining the principle of “zero tolerance,” emphasizing “efficiency, precision and toughness,” and not giving criminal structures a second’s respite.
The Minister also called for the creation of an effective mechanism for long-term prevention and combating organized crime, decisively destroying the breeding ground for such structures. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
SEOUL, June 6 (Xinhua) — President of the Republic of Korea (ROK) Lee Jae-myung held a telephone conversation with U.S. President Donald Trump at 10 p.m. local time on Friday, the South Korean leader’s office said.
As noted by the presidential office, the call lasted about 20 minutes, during which the leaders discussed a number of issues, including ways to develop the alliance between the Republic of Korea and the United States.
In addition, D. Trump invited Lee Jae-myung to visit the United States, the presidential administration said. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
NEW YORK, June 6 (Xinhua) — An earthquake with a magnitude of 6.5 jolted 107 km west-southwest of Diego de Almagro, Chile, at 17:15:04 GMT on Friday, the U.S. Geological Survey said.
According to initial data, the epicenter of the tremors was located at a point with coordinates 26.60 degrees south latitude and 71.10 degrees west longitude. The hypocenter was located at a depth of 96 km. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Chinese Foreign Minister Wang Yi held a telephone conversation with French Foreign Minister Jean-Noel Barrot on Friday.
Wang Yi, also a member of the Politburo of the CPC Central Committee, recalled that Chinese President Xi Jinping and French President Emmanuel Macron recently held a telephone conversation during which an important consensus was reached on strengthening strategic coordination between the two countries.
The two sides should make proper preparations for further exchanges at all levels, and China invites senior French officials to attend the World Conference on Artificial Intelligence in Shanghai in 2025, the Chinese Foreign Minister said.
Noting that the two sides have reached consensus on resolving trade and economic issues through dialogue and consultation, Wang Yi stressed the need to expand cultural, humanitarian and educational exchanges to promote the healthy development of the China-France comprehensive strategic partnership and China-EU ties.
Wang Yi noted that China and France, adhering to the traditions of independence and self-reliance, should strengthen strategic mutual trust and respect each other’s core interests.
He stressed that the Taiwan issue is an internal matter of China, which affects the national sovereignty and territorial integrity of the country and is fundamentally different from the Ukrainian problem. China attaches great importance to France’s commitment to the one-China policy, the diplomat noted, adding that China believes that France will implement this commitment.
Wang expressed hope that France will take a correct stance and oppose NATO’s interference in the Asia-Pacific region, stressing that the two countries should jointly adhere to multilateralism and safeguard free trade, and oppose the practice of unilateral bullying.
J.-N. Barrot, for his part, said that Vice President of the People’s Republic of China Han Zheng has been invited to attend the upcoming UN Ocean Conference in France, noting that in the context of growing global uncertainty, French-Chinese relations are taking on particular importance.
France always regards China as a friend and partner, firmly adheres to the one-China policy, and hopes to maintain high-level exchanges and enhance strategic communication with China, the French diplomat assured.
Strengthening bilateral cultural and humanitarian exchanges will send a strong signal of openness, which is particularly relevant in the current circumstances, continued Jean-Nicolas Barrot, adding that France is against trade and tariff wars and is ready to continue to properly resolve trade and economic frictions through consultations.
The parties also exchanged views on issues related to Ukraine, the Palestinian-Israeli conflict, and the Iranian nuclear program. –0–
Source: United States Senator MarkWayne Mullin (R-Oklahoma)
ICYMI: Mullin to CNN: We’re laser focused on delivering President Trump’s agenda
“The American people elected President Trump in November, and they put Republicans in charge.”
Washington, D.C. – On Wednesday, U.S. Senator Markwayne Mullin (R-OK) joined CNN’s The Source with Kaitlan Collins to push back against the baseless attacks against President Trump’s ‘One, Big, Beautiful Bill.’ The senator additionally underscored how the president’s ‘Peace through Strength’ agenda is making Americans safe at home and ending forever wars abroad. Highlights below.
Sen. Mullin’s full interview can be found here.
On Elon Musk, standing with the Trump Administration and the MAGA agenda:
“I love my wife dearly and we still have differences sometimes, so I can have a lot of respect for someone and still have differences and everybody is welcome to their opinion, but the fact is, we’re gonna pass one big beautiful bill, we’re gonna get 51 in the Senate and we’re gonna make sure that it’s not a killer bill that the House can’t pass either and so the House is gonna deliver their votes and we’re gonna put it on the president’s desk for the American people…
“We’re laser focused on delivering President Trump’s agenda. The American people elected President Trump in November, and they put Republicans in charge, and this is one step towards multiple promises that the president made by making the tax provisions permanent, by making sure were cutting deficit spending, and were getting rid of the waste and fraud.”
On the importance of President Trump’s recent travel ban:
“There are some real travel concerns because of some activities going in that place. I don’t think the Boulder incident had anything to do with this moving forward because this conversation has been going on for weeks. The President takes keeping the American people safe, it’s extremely important to him. He talks about it all the time. And so, I know that he takes foreign policy seriously. He’s not one to do anything that he feels he cannot negotiate deals with individuals. This is a well thought out, not a hurried idea. This is something that he felt like was in America’s best interest for national security interest.”
On working with the president on a sanctions package against Russia:
“We’re working with the President of the United States, and he has done a phenomenal job on our foreign affairs and we don’t want to get ahead of the White House, we want to work with the President and we wanna make sure this is a leverage point that he can use for Putin, but Russia knows that we are very serious about moving forward with this…
“President Trump has been very clear, he wants to end all the killing. Period. If Putin is not negotiating in good faith, which I think you saw the President get upset with him just a week ago, if the President gets to the point he doesn’t think Putin is operating in good faith, then we will immediately move forward and it will pass. We know it will pass both chambers and will get to the President’s desk, but we can’t get ahead of the President.”
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Regardless of the challenges in the external environment, Chinese manufacturing is still needed by the world and the Chinese market will always be a magnet for foreign investment, Foreign Ministry spokesman Lin Jian said at a press briefing in Beijing on Friday.
As pointed out by one of the journalists during the event, China’s economic and trade ties with the rest of the world remain strong amid the tense international economic environment. It is reported that in the first five months of this year, China opened a total of 101 international cargo air routes, adding more than 195 round-trip flights per week. In addition, from January to April, the cargo throughput of Chinese ports amounted to 5.755 billion tons, up 3.7 percent year-on-year, and their container throughput exceeded 110 million TEU (20-foot equivalent unit), up 7.9 percent year-on-year.
Commenting on the data, Lin Jian said that in the first four months of this year, China’s total import and export volume of goods grew by 2.4 percent year-on-year, with the growth in April being 4.3 percentage points higher than in the first quarter.
The official noted that China’s economy continues to unleash its vitality and trade resilience is continuously strengthened. This fully demonstrates that, regardless of the challenges arising in the external environment, Chinese manufacturing is still needed by the world, and the Chinese market will always be a magnet for foreign investment.
“Unilateralism and protectionism are unsustainable. ‘Building walls and erecting barriers’ will not stop China’s decisive steps toward opening up and cooperating with the rest of the world for common development,” Lin Jian concluded. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Zhedi, a former vice chairman of the Standing Committee of the National People’s Congress (NPC), China’s top legislative body, died of illness at the age of 87 in Beijing at 2:15 a.m. on Friday, an official statement said.
The statement said Zhedi, who served as vice chairman of the 10th NPC Standing Committee, was “an outstanding member of the Communist Party of China, a dedicated fighter for communism, a talented leader in ethnic affairs and the development of the socialist legal system, and a worthy son of the Tibetan people.” –0–
The 11th BRICS Parliamentary Forum concluded in Brasilia, Brazil, on June 5, with participating parliaments from all 10 BRICS member countries unanimously condemning the recent terrorist attack in Pahalgam, India. The forum also saw India assume the chairmanship of the 12th BRICS Parliamentary Forum, to be hosted next year.
Led by Lok Sabha Speaker Om Birla, the Indian delegation played a key role in shaping the joint declaration. The expanded BRICS parliamentary forum now includes India, Brazil, Russia, China, South Africa, Iran, the UAE, Egypt, Ethiopia, and Indonesia.
A major outcome of the two-day event was the collective agreement among member nations to adopt a zero-tolerance policy on terrorism. India’s firm stance on countering terrorism—through enhanced intelligence sharing, curbing financial support to terror groups, and preventing the misuse of emerging technologies—received widespread support.
During his address, Birla strongly condemned the Pahalgam attack and emphasized India’s long-standing commitment to a “strong and befitting response” to terrorism. He reiterated Prime Minister Narendra Modi’s vision for a united global front against terror and underlined the need for a balanced international order, technological cooperation, and democratic dialogue among nations.
Apart from terrorism, the BRICS delegates discussed key issues such as the responsible use of Artificial Intelligence, inter-parliamentary cooperation, global trade, economic development, and peace and security. India’s approach to these matters was lauded and incorporated into the final declaration.
At the closing ceremony, India was officially handed over the chairmanship of the 12th BRICS Parliamentary Forum, scheduled to be held in 2026. Shri Birla said India would work to deepen collaboration between BRICS parliaments and build consensus on addressing global challenges.
The Indian delegation also included Deputy Chairman of Rajya Sabha Harivansh, Members of Parliament Surendra Singh Nagar, Vijay Baghel, Shri Vivek Thakur, Dr. Shabari Byreddy, and senior parliamentary officials including Lok Sabha Secretary General Utpal Kumar Singh and Rajya Sabha Secretary General P.C. Mody.
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Recognizing the one-China principle and developing relations with China are in the fundamental interests of Guatemala and its people, Chinese Foreign Ministry spokesman Lin Jian said on Friday.
Lin Jian made the statement at a regular briefing for journalists, commenting on recent statements by Guatemalan President Bernardo Arevalo during his visit to the Chinese region of Taiwan.
The official representative recalled that there is only one China in the world, Taiwan is an inalienable part of China’s territory, and the government of the People’s Republic of China is the sole legitimate government representing all of China.
“This is the broad consensus of the international community and cannot be disputed,” Lin Jian stressed.
He noted that the Democratic Progressive Party administration in Taiwan is trying to use so-called “diplomatic allies” for political manipulation, but these self-deceptive tricks will not be able to stop the historical trend toward China’s inevitable reunification.
Currently, 183 countries have diplomatic relations with China, which fully demonstrates that adherence to the one-China principle is the universally recognized supreme truth, the common aspiration of the people and the general trend of the times, Lin Jian noted.
“We urge the governments of the relevant countries to clearly understand the overall trend, listen to public sentiment, and make the right choice as soon as possible,” the Chinese Foreign Ministry official concluded. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — A working meeting of central leading groups was held in the Chinese capital on Friday to discuss the Party-wide education campaign on strictly abiding by the “Eight-Point Rules” issued by the CPC Central Committee to improve the behavior style of Party cadres and civil servants.
Shi Taifeng, a member of the Politburo of the CPC Central Committee and deputy head of the Central Leading Group for Party Building, attended the meeting and delivered a speech.
The participants at the event stressed the need to ensure more thorough and visible results in the Party-wide educational campaign and encourage Party members and cadres to maintain a solid foundation for their beliefs.
The meeting also called on local authorities and departments to effectively address such prominent problems as the practice of holding lavish banquets and feasts, improve relevant rules and regulations, eliminate institutional shortcomings, and enhance accountability and coordination in their work. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
TIANJIN, June 6 (Xinhua) — China’s vehicle trade-in subsidies are accelerating the adoption of new energy vehicles (NEVs), with the monthly penetration rate of NEVs in the passenger car market expected to exceed 60 percent in 2025, according to a report released Friday by Automotive Data of China (Tianjin) Co., Ltd.
The report, compiled jointly by the company and automotive information, trading and service platform Dongchedi (DCar), noted that more than 70 percent of consumers surveyed said the subsidies had increased their intentions to purchase a car.
In the first quarter of 2025, the volume of light-duty vehicle purchases under trade-in programs in China reached 2.79 million units, up more than 1 million units from the same period last year. The report also noted that the volume of vehicle purchases under the vehicle-exchange program exceeded that of the scrappage program, reaching 2.03 million units.
A survey conducted by Dongchedi found that consumers prefer subsidies for new car purchases and replacements through trade-in programs with lower participation thresholds. As subsidies become more widespread, applying for them before buying a car has become a common practice among consumers, with more than 50 percent relying on offline 4S stores to obtain information about subsidies, the report said. -0-
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
MINSK, June 6 (Xinhua) — Belarus’ gold and foreign exchange reserves as of June 1, 2025, according to preliminary data, amounted to 11.158 billion US dollars in equivalent. The relevant information was published by the Belarusian National Bank on Friday.
In May 2025, gold and foreign exchange reserves grew by USD 215.7 million, or 2 percent, after growing by USD 872.8 million (8.7 percent) in April.
The largest share in the structure of international reserve assets of Belarus is occupied by assets in foreign currency and monetary gold. According to the Belarusian National Bank, the volume of foreign currency in reserves as of June 1 of this year amounted to 4.0882 billion US dollars, having increased by 267.9 million US dollars in May. In turn, the volume of monetary gold amounted to 5.6723 billion US dollars, having decreased by 47 million US dollars in the previous month.
According to the targets of Belarus’s monetary policy, the country’s international reserve assets should amount to at least USD 7.1 billion by the end of 2025. –0–
Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)
Toledo, OH – Today, Congresswoman Marcy Kaptur (OH-09), Co-Chair and Co-Founder of the Congressional Ukraine Caucus released the following statement on reporting of successful Ukrainian drone strikes operations deep into Russian territory, which hit airfields including the Belaya air base in Russia’s Irkutsk region, destroying more than 40 Russian planes deep in Russian territory.
“For the continuing horror Russian dictator Vladimir Putin has exacted on the people and free nation of Ukraine, this multiple strike by Ukrainian drones on key Russian military air field assets is long overdue,” said Congresswoman Marcy Kaptur (OH-09). “Russia is the 3rd largest military in world. It encompasses 11 time zones and is rich in oil and minerals. Its population is more than 3 times the size of Ukraine. Nonetheless Putin covets the territory of Ukraine, the lowest income nation in Europe. Despite the odds, Ukraine’s soldiers and citizenry have nobly resisted Russia’s invasion since 2014 to regain their Liberty.”
“This comes while Russia also is enlisting thousands of North Korean troops who are being forced to fight by their Dictator Kim Jong Un. Today as June begins, may President Trump use all his persuasive power and impose further sanctions on Russia, or work with Congress to do so. I hope that we can soon bring the warring parties to negotiate an end to this unnecessary and costly war defiling Europe and our planet,” concluded Congresswoman Kaptur.
Los Angeles, CA, June 06, 2025 (GLOBE NEWSWIRE) — As artificial intelligence dominates headlines, one of the fastest-growing wellness apps is turning heads for a different reason: silence. The Isha Foundation recently launched Miracle of Mind, a free meditation app that recorded over 1 million downloads in just 15 hours, outpacing even ChatGPT’s original adoption rate.
Founded by spiritual leader Sadhguru, the app combines ancient yogic practices with adaptive technology to offer a simple, evidence-based approach to mental wellness. Its core is a 7-minute guided meditation designed to help users reduce stress, enhance focus, and build inner resilience.
“People are overwhelmed—by information, by screens, by pressure. This app meets them where they are,” said an Isha Foundation spokesperson.
Key Features:
Multilingual interface (English, Hindi, Tamil, Spanish, Russian) with plans for expansion
Gamified challenges, including streaks and badges
100% free access — no subscriptions or in-app purchases
45% of users are first-time meditators, primarily aged 18–34
70% of users returned to the app within the first week, a retention rate that rivals leading meditation apps like Calm and Insight Timer
Self-reported outcomes include 34% drop in anxiety and improved sleep in six weeks
Rated 4.8/5 stars across 80,000+ global reviews
The platform also features a dynamic AI chatbot—“Ask Sadhguru”—trained on over 50,000 hours of his teachings to provide real-time insights.
Already in use by over 2 million individuals worldwide, Miracle of Mind is scaling faster than most mental health platforms in the nonprofit sector. When the app introduces upgrades such as biofeedback integration, augmented reality meditation environments, and personalized generative meditation tailored to user behavior, it could become even more engaging and exciting..
As the mental health crisis intensifies globally, Isha Foundation’s Miracle of Mind offers something increasingly rare: an accessible path inward, rooted in wisdom, powered by technology, and available to all.
Miracle of Mind is available for free on iOS and Android platforms.
Source: United States House of Representatives – Congressman August Pfluger (TX-11)
Read his remarks as delivered below:
H.R. 1949, Unlocking Our Domestic LNG Potential Act, is commonsense. And when you look at section three of the Natural Gas Act, it requires that natural gas exports to countries that have a free trade agreement with the United States be approved without delay. For countries that do not have a free trade agreement with the U.S., the energy secretary is required to approve export requests unless they find that such exports will not be consistent with the public interest.
Therefore, the Natural Gas Act includes a rebuttable presumption in favor of authorizing U.S. LNG exports in early 2024, after succumbing to political pressure from environmental activists. The previous administration announced a ban on issuing export permits to non-FTA countries while it reviewed the climate impacts of U.S. LNG.
During this ban, America’s energy dominance took a major hit. Russia overtook the U.S. as the leading gas supplier to Europe. Long-term American contracts were not only jeopardized, but they were actually damaged – some of them irreparably – and globally, buyers were forced to look toward less clean sources. Thankfully, the Trump administration quickly reversed this ban, and just last week, the DOE issued its first LNG export approval.
My legislation is simple. The Unlocking Our Domestic LNG Potential Act would ensure that a ban is never placed on U.S. LNG exports again. By removing DOE from the process, export restrictions would be repealed, and LNG exports would have equal treatment with other commodities. LNG exports unequivocally benefit our economy, domestic prices, our security, and partners and allies around the world that want our product.
Congress needs to act to remove the politics from these exports, just as this committee did when it lifted the crude oil export ban in 2015. The IEA expects global gas demand to reach record highs in the coming years, underscoring the need for new LNG supply. It must be the United States, not Iran, not Russia, not any other adversary, who meets this demand and supplies affordable, clean, and abundant LNG to the world.
I urge my colleagues to support this very commonsense legislation and to vote in favor of H.R. 1949. I yield back.
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — Chinese authorities have allocated 580 million yuan (about 80.73 million U.S. dollars) to provincial-level regions to strengthen local flood control efforts, the Ministry of Finance said Friday.
The funds, provided jointly by the Ministry of Finance and the Ministry of Water Resources, were sent to 29 provincial-level regions as well as the Xinjiang Production and Construction Corps.
Local authorities have been ordered to carry out in-depth inspections for hidden hazards at hydraulic structures that are critical to flood control, such as river and lake dams, reservoirs and key seawalls.
They were also ordered to make every effort to work on flood prevention and preparation during China’s main flood season. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
Moscow, June 6 /Xinhua/ — The Board of Directors of the Bank of Russia on Friday decided to lower the key rate from 21 to 20 percent per annum.
“Current inflationary pressure, including persistent inflation, continues to decline. While domestic demand continues to outpace the ability to expand the supply of goods and services, the Russian economy is gradually returning to a balanced growth trajectory,” the Central Bank of the Russian Federation said in a press release.
The Bank of Russia predicts “a prolonged period of tight monetary policy.”
“Further decisions on the key rate will be made depending on the speed and sustainability of the decline in inflation and inflation expectations,” the Central Bank of the Russian Federation said in a statement.
According to the Bank of Russia’s forecast, given the current monetary policy, annual inflation will return to 4 percent in 2026. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
Moscow, June 6 /Xinhua/ — Rosatom CEO Alexey Likhachev has asked International Atomic Energy Agency (IAEA) head Rafael Grossi to mediate on the issue of using American fuel at the Zaporizhzhya NPP. He told reporters following talks with the IAEA chief in Kaliningrad.
“An important point – we have spoken about it many times – is the issue of American fuel, fuel from Westinghouse… At today’s consultations, we discussed this topic with the IAEA leadership, and I asked Mr. Grossi to become a mediator in resolving this problem in cooperation with the American side – both in the person of the company and in the person of government bodies, in the person of nuclear supervision. We are grateful to the IAEA Director General for the positive steps in response. I very much hope that we will find this solution in cooperation directly with the fuel manufacturer and determine its future fate,” TASS quotes the head of Rosatom as saying.
R. Grossi announced that the IAEA will take part in the World Atomic Week in Moscow, which will take place in September 2025.
“The good news for the global nuclear industry is that a major event will be held in the second half of this year in September in Russia, in Moscow, and the IAEA is going to participate in this event. This is a major event for the development of the nuclear industry in the world,” said R. Grossi. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
Kyiv, June 6 /Xinhua/ – Ukraine attacked two airfields and other important military facilities in Russia on Friday night, the General Staff of the Armed Forces of Ukraine (AFU) reported on Telegram.
The Engels airfield in the Saratov region in the southwest of the Russian Federation, which is a concentration site for Russian combat aircraft following an operation carried out by the Security Service of Ukraine (SBU) on June 1, came under attack.
At least three fuel and lubricant tanks caught fire at the airfield and dozens of explosions were heard.
The Dyagilevo airfield in the Ryazan region in western Russia, where air tankers and escort fighters are based, was also attacked. They are used to support missile strikes on Ukrainian territory. In addition, Russian strategic bombers fly out of Dyagilevo.
According to preliminary data, a fire broke out in the target area; the information is being verified.
In addition, a number of other Russian military facilities came under fire. In particular, a logistics point in the Kursk region of Russia was hit. The results of the attack are being clarified.
All strikes were carried out by units of the Ukrainian Armed Forces and the Main Intelligence Directorate of the Ministry of Defense of Ukraine in cooperation with other components of the Defense Forces.
On June 1, the SBU carried out a special operation called “Web”, during which it attacked airfields in several regions of the Russian Federation. According to the service’s estimates, 34 percent of Russian strategic aviation aircraft were damaged as a result of the strikes. –0–
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 6 (Xinhua) — China’s foreign trade in services grew rapidly in the first four months of 2025, with travel-related services registering a sharp uptick, data from the Ministry of Commerce showed Friday.
According to the agency, the volume of foreign trade in services in the country during the reporting period exceeded 2.63 trillion yuan (about 366.1 billion US dollars), increasing by 8.2 percent year-on-year.
In particular, service exports reached nearly 1.13 trillion yuan, up 14.6 percent from a year earlier, while imports grew 3.9 percent to exceed 1.5 trillion yuan, leaving a trade deficit of 375.02 billion yuan.
Trade in tourism-related services continued its rapid growth momentum, rising 14.7 percent year on year to 756.78 billion yuan, the data showed.
At the same time, the volume of trade in knowledge-intensive services showed a 5.5 percent increase year-on-year and approached the mark of about 1.02 trillion yuan. –0–
Since the end of the cold war, the relevance of the North Atlantic Treaty Organisation (Nato) has regularly been questioned, even by its most prominent leaders. Its members, therefore, find it necessary to remind each other and the world of its value from time to time.
The latest example of this is the UK government’s new strategic defence review, which announces a “Nato-first” posture.
Nato has long been a cornerstone of UK foreign, defence and security policies. But this marks a particularly strident prioritisation of the organisation. It comes just a few years after Boris Johnson’s government began moving the country’s foreign and defence policy priorities towards the Indo-Pacific.
It tells us much about how Keir Starmer’s administration sees the UK’s place in the world in an unsettled era: as both an influential ally of the US and a reliable partner to European powers, eager to maintain regional and global influence.
Signed in 1949, the North Atlantic treaty committed its original 12 members to collective security: an attack on one would be an attack on all. In the shadow of the second world war, Nato went further than the nascent United Nations in its defence and security commitments. It brought together a somewhat eclectic mix of states straddling the Atlantic, from the North American behemoths of the US and Canada to tiny Iceland and Luxembourg, the dictatorship of Salazar’s Portugal and the democracies of Norway and Belgium.
The UK’s participation was largely heralded across an enthusiastic parliament. Winston Churchill, then leader of the opposition, praised this new “fraternal association”. The foreign secretary, Ernest Bevin, celebrated the community of interest [and] cooperation with like-minded people”. UK politicians saw Nato as a means to connect with the US and Canada in particular.
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The language at the time also reflected the casting of the Soviet Union as a threat to European security. Although the UK welcomed Nato as a liberal democratic organisation dominated by English-speaking peoples, its primary purpose was always to act as a strategic counterweight to the influence and encroachment of the Soviet Union in Europe. Hence the claimed irrelevance of Nato in the 1990s after the cold war, and its renewed importance today in the face of Russian aggression.
As always with UK foreign and defence policies, the relationship with the US is paramount. The UK’s Nato-first position is no exception. Starmer clearly believes he can forge a working relationship with the US president. Although seemingly far from natural bedfellows (although neither were John F. Kennedy and Harold Macmillan or even, politics aside, Ronald Reagan and Margaret Thatcher), Donald Trump appears unthreatened by the sober, understated Starmer.
The thought within Starmer’s foreign policy circle may well be that a loud and unequivocal statement of the UK’s commitment to Nato could help persuade Trump to stay the course with an organisation that he has often threatened to pull the US out of.
If, on the other hand, Starmer et al are more pessimistic and fear Trump making good on his threats, Nato clearly remains an attractive proposition in terms of the UK’s defence policy. While it does commit the UK to the defence of, say, the Baltic States and Finland, by the same token, Nato puts the UK in lockstep with fellow nuclear power, France, as well as the growing military power of Germany and significant others such as Turkey. In uncertain times, such allies are to be valued.
Global influence
Even before Brexit, a fear of losing global and regional influence has stalked every British government since 1945.
Questioning the wisdom of the departure from the EU remains a Westminster taboo. Yet one might forgive the incoming Labour government for feeling the chill of isolation while Trump occupies the White House and Russia threatens the continent. Nato thus also represents a valuable opportunity to retain regional and global influence. Note the language in Starmer’s introduction to the report when he refers to a desire to “lead in Nato”.
While the other defenestrated European colonial powers found post-1945 influence through the Francophonie or becoming leading civilian forces in what became the EU, the UK had the Commonwealth and Nato. These were the prime proxies for the lost colonial influence, even during the long EU interregnum.
Without the EU and with a more restive Commonwealth, Nato is of even greater importance. Although France’s president Emmanuel Macron is generally enthusiastic about Nato, there is a history of French ambivalence. The UK could well make the claim to be the most steadfastly committed of all the larger European members.
This renewed commitment to Nato from the UK government is consistent with the historic prioritisation of the organisation by successive administrations. The difference here is the urgency of the context: Europe faces an unprecedented military threat, while the US president is unpredictable and dubious in his attitude towards continental defence.
The Nato-first stance is a recognition of grim, strategic realities and also a “Hail Mary”, both pragmatic and hopeful. The UK is not alone in desperately hoping to keep the US commitment to European security alive. The strategic review’s commitment to a Nato-first policy may help – at the very least, it signals a UK administration keen to maximise its influence and retain robust ties with European allies.
Nick Whittaker 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.
The UK is facing a security crisis. Great power competition has returned, and the threat of hostility from Russia, China, Iran and North Korea is increasing. The west can no longer assume military superiority, and the UK can no longer depend unconditionally on the US. The character of war itself is changing as new technology is introduced.
This is the situation laid out in the latest strategic defence review. The implications for the UK are clear: the country must prepare for high-intensity, protracted war, not counter-insurgency operations like Iraq or Afghanistan.
In order to address these challenges, the review says, “the UK must pivot to a new way of war.” Nuclear weapons are important here, and will be renewed and expanded. But the recommendations in the review focus on conventional weaponry and, above all, new remote and autonomous technology.
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The ongoing Ukraine war underpins much of the thinking about the military changes the UK needs to make. That conflict has demonstrated a significant change in the character of 21st-century warfare. Most obviously, it has involved a proliferation of cheap, expendable remote systems, some of which have autonomous capabilities.
Remote first-person-view drones, and drones controlled by unjammable fibre-optic cables, have become ubiquitous on the frontline – reconnoitring, targeting and striking troops on both sides. They have made conventional strategic manoeuvres at the front almost impossible, while also striking civilian and military targets deep in Russia and Ukraine.
At sea, uncrewed naval drones have struck Russian shipping and infrastructure in Crimea. The Ukrainian armed forces have also developed a digital battle management system and live-data, AI-enabled targeting system, drawing together information from satellite, open-source, ground-sensor and signal intelligence. This has allowed Ukrainian commanders to see deeply across the battlespace, and target Russian forces with an unprecedented depth and precision.
As a result of remote systems enabled by digitised targeting, military forces have become exponentially more lethal in close battle – and also in the deep.
The strategic defence review aims for the UK to incorporate these two elements into its war-fighting capabilities, recommending massive investment in remotely controlled and autonomous systems.
It calls for the UK to create a “leading, tech-enabled defence power”. Part of this involves integrating UK forces and the construction of a unified “digital targeting web”. This would be fed by sensors from every domain (land, air and sea) so that all forces have access to the same intelligence and a common operating picture. The idea is that a target identified in one domain might be prosecuted by forces in another, to “enhance the Armed Forces’ precision and lethality at scale and reach”.
In order to achieve this, the review also calls for improved and more innovative relationships between British defence, tech and industry. Once again, a lot has been learnt from Ukraine, whose industrial and tech sectors have been integrated into the war from the start.
The missing link
The review’s authors – three external experts led by former defence secretary and Nato chief, Lord Robertson – are correct to highlight the increasing importance of remote (and sometimes autonomous) systems in warfare. They are clear that military forces should increasingly draw on live data, processed by artificial intelligence, to help them understand the battlespace, plan and target. The UK must remain competitive with peer enemies who are developing these capabilities.
However, even assuming that all of this is affordable at 2.5% of the UK’s GDP from 2027 (a 0.2% rise from where defence spending is now), there is a serious gap in the review’s proposals.
As a scholar who has studied war in the 21st century, and has just completed a book on AI and war, I believe the document vastly overexaggerates the capability of AI and autonomy. For example, it states:
In modern warfare, simple metrics such as the number of people and platforms deployed are outdated and inadequate. It is through dynamic networks of crewed, uncrewed, and autonomous assets and data flows that lethality and military effect are now created.
This analysis presumes that autonomy will be vital in the future, and implies it will displace the need for large numbers of human combatants. In fact, true autonomy is still rare in combat – and will remain so, according to my research.
Even if autonomous drone swarms appear, they will not eliminate the need for human programmers or operators behind the frontline. AI has limited military functions which require a huge amount of human input.
Defence secretary John Healey being shown unmanned and autonomous units on a demonstration. UK MOD Crown Copyright 2025
The review prioritises preparedness for protracted inter-state war. But it ignores the blindingly obvious from Ukraine: the imperative of mass.
The Ukrainian frontline combat forces have expanded to about 300,000 – Ukraine claims its whole force, including allied fighters, is around 1 million. There are about 400,000 Russian combat troops in Ukraine. Casualties have been eye-watering: the Russians have suffered about 800,000 casualties, the Ukrainians nearly 500,000.
In my view, the strategic defence review has been mesmerised by the prospect of new technology – and, perhaps, by some wishful thinking.
In 21st-century war, troop mass matters. Fleets of drones and the most sophisticated digital targeting will be irrelevant without human forces willing to fight and to operate them.
What is the review’s answer to this? While acknowledging that in the cold war, the British fielded forces of 311,000, UK regular armed forces are to remain the same size: 136,000, of which the army will consist of only 73,000 troops and staff.
The review proposes that active reserves (volunteer, part-time forces) will be increased by 20%, and that the strategic reserve (ex-regulars) “is central to military mobilisation and must be reinvigorated”.
It is not surprising that the review’s authors have offered such thin solutions to the question of mass. There has been profound resistance from successive governments, Whitehall and civil society to any expansion in the size of British military forces in the UK. But it is doubtful that an expanded reserve and a reinvigorated strategic reserve will be remotely enough for the UK to fight and win a war of any kind in the coming decade.
Anthony King 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.
Source: State University Higher School of Economics – State University Higher School of Economics –
Three groups, more than 100 students, successfully completed the MBA program. Over a year and a half, they completed 16 educational modules, including two on-site ones: to China and to Lake Baikal. The 2025 graduates include entrepreneurs, founders of successful businesses, and top managers of leading Russian companies: Sber, VTB, Rostelecom, NOVATEK, Rosatom, Yandex.Technologies, Almaz-Antey Concern, SKB Kontur, Belkacar, SONET Group, and others.
First Deputy Director of the Higher School of Business
“The MBA program not only provides knowledge, but also strong networking in the leadership community; for a modern entrepreneur and top manager, it is extremely important to remain in the educational environment and continue learning throughout life.”
The updated MBA program of the HSE Graduate School of Business covers key areas of modern management: from strategic management and corporate finance to marketing, operations management and innovation, including the use of AI in business.
All graduates note an important advantage of the HSE Graduate School of Business: a very strong team of teachers, which unites both practitioners, leaders of successful businesses, and outstanding representatives of academic science from across the HSE University.
Positioning itself as a first-choice business school, HSE has invested a lot of effort into developing its MBA program, including innovative educational formats: business simulations, interactive projects, group assignments to develop practical skills and networking among program students.
The hallmarks of the MBA program at the Higher School of Business at the National Research University Higher School of Economics are effective on-site modules. The leadership intensive is traditionally held on Lake Baikal and is aimed at developing team management skills, crisis management, and the ability to make decisions under stress and in situations of uncertainty.
And the recent overseas module was organized jointly with Fudan University, one of the leading centers of business education in Asia. The university is among the best universities in China and Asia, widely recognized for its high level of teaching, quality of scientific research and international programs in the field of economics and management. The overseas modules are the leaders in the most positive feedback from the program participants.
The final part of the program was the defense of final projects. Participants presented solutions for a wide range of industries: from energy and tourism to industrial production and digital services. Among the initiatives: development of a new data management product, launch and development of a business community, a service for generating income from excess energy capacity, a strategy for bringing self-propelled electric lifts to market.
The graduation ceremony took place at the HSE campus. The graduates were congratulated by the program teachers and the business school management.
Head of the MBA program at the Higher School of Business, National Research University Higher School of Economics
“Our program is an intensive path of personal and professional transformation. We see how students change over the course of a year and a half: their confidence grows, their horizons expand, their ability to make strategic decisions strengthens. It is especially valuable that they leave the program with a clear understanding of their role in business and with a readiness for new challenges.”
During their studies, participants not only expanded their professional horizons, but also built new strong horizontal connections—the alumni community remains one of the program’s key resources.
Ekaterina Artemenkova
Director of the Financial Department, Insurance Company “Guardia”
“I asked my classmates to name three associations with the program and collected them in a word cloud. The most frequent word turned out to be unexpected, but very accurate – “pleasure”. In the program, we learned to enjoy studying, communicating, challenges. And, perhaps, the main thing we learned was the ability to maintain inner calm in the most stressful situations and to see opportunities even in difficulties.”
Andrey Dementyev
Founder of the family project “Elephant Park” in Sochi
“Over these one and a half years, we have not only mastered the tools of strategic management, Agile and financial analysis – we have learned to see value in people, in the team, in the environment. We have learned from each other, admired, supported – and it is in this atmosphere that ideas, projects and a real team are born.”
Olga Komleva
Director of IT Solutions Department, SONET Group of Companies
“This morning, when I was driving to the airport, I was thinking that this is my last trip as part of the MBA program. It is a warm sadness and great pride at the same time. We have gained knowledge, found friends, and most importantly, made the right choice by coming here. I would like to wish everyone not to lose interest, to study and move forward.”
The graduation of the HSE Graduate School of Business MBA program has become a significant contribution to the preparation of innovative responsible leaders who change organizations and the world. Start of a new cohort MBA programs is scheduled for this fall and the admissions campaign has already begun.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
The Spanish economy has been performing strongly, supported by services exports and labor force growth. Growth is expected to remain significantly above the euro area average in the near term, before slowing gradually as its recent drivers normalize and demographic aging intensifies. Most risks are to the downside, including from a further escalation of trade measures and domestic political fragmentation.
The authorities should seize the growth momentum to more swiftly rebuild fiscal space and reduce sovereign debt risks through a clearer consolidation strategy grounded in well-identified tax increase and spending reduction priorities. Additional measures should also be taken to address fiscal pressures from rising future pension expenditures, and to improve the pension system’s safeguard clause.
Raising productivity is key to boosting income per capita gains, which have been modest since the pandemic. This should be achieved through a new wave of reforms to facilitate firms’ scaling-up and strengthen innovation.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Spain.[1] The authorities have consented to the publication of the Staff Report prepared for this consultation.[2]
With a growth rate of 3.2 percent in 2024, Spain has been one of the fastest-growing economies in the euro area. Growth has been fueled by robust services exports and labor force growth, including due to immigration. Because high GDP growth has been accompanied by high employment growth, GDP per capita gains have been more modest. Despite recent progress, Spain still has one of the lowest employment rates in Europe, and a persistent gap in (hourly labor) productivity vis-à-vis the euro area and—even more so—the US.
Growth is projected to reach 2.5 percent in 2025 before slowing to 1.8 percent in 2026 as export and working-age population gains normalize. Growth will be primarily supported by private domestic demand, including due to a decline in the household saving rate and a pickup in investment. Inflation is projected to decline further and return close to the ECB’s target by end-2025.
The Spanish economy has continued to outperform the euro area but per-capita income gains have been more modest. Two major drivers of Spain’s strong growth have been, on the supply side, labor force growth, and on the demand side, services exports. Labor force growth has particularly benefitted from recent migration inflows, which have risen sharply above pre-pandemic levels. Services exports have been fueled by the strong post-COVID recovery in tourism, but also by improvements in the performance of Spanish exporters in non-tourism services. Amid strong exports and still subdued imports, the external position in 2024 is preliminarily assessed to be stronger than implied by medium-term fundamentals and desirable policies. Because high GDP growth has been accompanied by high employment growth, GDP per capita gains have been more modest. Still, Spain reduced its per-capita income gap vis-à-vis the highest-income euro area economies by over 3 percentage points during 2022-24, helped by an acceleration in productivity growth. Despite recent progress in reducing the unemployment rate, it remains the highest in the euro area at about 11 percent. Looking through recent volatility, disinflation has continued to proceed steadily.
Growth is projected to remain robust in the near term and to slow gradually thereafter as its recent drivers normalize, with risks predominantly to the downside. Growth should remain strong at 2.5 percent in 2025 before declining to about 1.8 percent next year, close to its medium-term potential. On the demand side, tourism is expected to expand at a slower rate, while a weaker global environment—including elevated trade policy uncertainty and US tariffs—will also weigh on external demand. This drag is expected to be partly offset by robust domestic demand, including a pick-up in investment. On the supply side, a gradual slowdown in net migration and demographic aging will slowly weigh on labor force gains. Key downside risks include an escalation of trade measures, particularly those involving the EU, and domestic political fragmentation, which could hamper the response of fiscal policy in the event Spain’s deficit reduction fell short of its commitments or market concerns about sovereign risks were to emerge.
The authorities should seize upon the strong growth momentum to more swiftly rebuild fiscal space and reduce sovereign debt risks, in the context of an enhanced medium-term fiscal plan. Staff projects that, in the absence of further consolidation measures besides social security contribution increases from the 2021-2023 pension reforms and the non-indexation of PIT brackets (about 1 percent of GDP overall over 2025-29), the deficit would stabilize above 2 percent of GDP by 2030, while the debt-to-GDP ratio would remain above 90 percent before rising again in the longer term as fiscal pressures from aging intensify. Weighing fiscal risks on the one hand, and the economy’s strong cyclical position on the other, staff recommends frontloading the authorities’ planned 3 percent of GDP adjustment over 2025-2029 rather than 2025-2031. This effort, which would require about 2 percentage points of GDP in new measures, should be underpinned by an enhanced medium-term fiscal plan that lays out well-identified tax increase and spending reduction priorities. Harmonizing VAT and enhancing environmental taxation would deliver the recommended effort while reducing economic distortions. Given the widening projected gap between pension expenditures and social security contributions over the coming decades, pension reforms should also be undertaken, prioritizing employment-friendly options. Should downside risks materialize, fiscal policy should remain flexible, letting automatic stabilizers play out. Temporary discretionary support should be considered only in the event of a severe shock and provided sovereign funding costs remain low.
Systemic risks in the financial system remain low but ongoing efforts to further bolster its resilience should be maintained. Banks are well-capitalized, liquid, and profitable, though capital ratios are still somewhat below euro area peers. Household and corporate balance sheets are sound, supported by low debt and rising incomes. The rapid growth in house prices has eroded affordability and should be primarily addressed through measures that stimulate housing supply. While it does currently not raise financial stability risks, pre-emptive borrower-based measures should be considered if there were early signs of an easing in lending standards. Staff supports the ongoing phasing-in of the one-percent positive neutral CCyB and encourages continued implementation of other 2024 FSAP recommendations to further enhance resilience.
Fostering income-per-capita convergence toward higher-income advanced economies requires further raising the employment rate and boosting productivity. Despite recent progress, Spain still has one of the lowest employment rates in Europe, and its (hourly labor) productivity gap vis-à-vis the euro area—which has itself been falling behind the US—remains about as wide as it was 25 years ago. Enhancing activation policies and financial incentives for jobseekers is key to durably reducing unemployment to single digits. The planned reduction of the working week in the private sector should be carefully designed to mitigate adverse effects on output and workers’ incomes, with a major role for collective bargaining including in setting the level and remuneration of overtime. Closing the productivity gap will require reforms that facilitate firms’ scaling-up and innovation. These include completing both the Spanish and EU single markets for goods and services, streamlining firm size-related tax and regulatory thresholds, boosting venture capital through progress toward the CMU complemented by domestic incentives, and promoting excellence in higher education—including through greater autonomy and performance-based funding of universities.
Sources: IMF, World Economic Outlook; data provided by the authorities; and IMF staff estimates.
1/ The projections incorporate spending financed by the EU Recovery and Resilience Facility (including the grant and the loan component) amounting to about 0.7, 1.7, 1.3 and 0.3 percent of GDP from 2024 to 2027.
[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] Under the IMF’s Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the www.imf.org/en/Countries/ESP page.
[3] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
