Europe
UK-Germany agreement is predominantly about optics
The United Kingdom and Germany have agreed to deepen defence cooperation across many areas
United KingdomBudget austerity will limit global spending and growth
All economies are being advised to strengthen their budgets, but this risks reducing spending on much needed reforms
InternationalUK-EU reset is unlikely to be ambitious
There has been a notable improvement in engagement between the United Kingdom and the EU under the new Labour government
United KingdomAustria’s far right will benefit from rejection
The centre right has rejected the idea of a coalition with the far-right Freedom Party, which won the recent election
AustriaGlobal growth trend is stable amid high uncertainties
The IMF sees stable but underwhelming global growth, with most major economies improving but China and US growth slowing
InternationalHigh uncertainty, low asset volatility raises risks
The IMF Financial Stability report highlights the disconnect between high uncertainties and relatively low volatility
InternationalCorruption allegations will roil Albanian opposition
Former President Ilir Meta was arrested for suspected corruption
AlbaniaSerbia will look to become a regional gas transit hub
Belgrade’s plan to expand Serbia’s gas pipeline network is proceeding apace
Serbia
