France's National Republican Party Aligns With LFI on Multinational Tax Increase

In France, Jordan Bardella of the National Rally (RN) has tried to position the party as pro-business by proposing significant tax cuts, but recent parliamentary actions show the RN aligning with left-wing parties like LFI to increase taxes on multinational corporations, signaling a complex fiscal approach that risks economic instability. Meanwhile, in Slovakia, finance minister Ladislav Kamenický highlights the fragmented and gradual nature of the country's fiscal consolidation compared to Sweden's decisive reforms in the 1990s, which successfully addressed a severe economic crisis through swift spending cuts and structural reforms. In the UK, economic challenges are pressing as the country faces higher national debt and borrowing costs than many peers, prompting political parties, including Reform UK led by Nigel Farage, to shift away from large tax cut promises toward fiscal discipline to reduce borrowing costs before stimulating growth. The UK's fiscal reality demands tough decisions, with reports suggesting potential cuts to state pensions and social benefits, although major parties remain hesitant to propose deeply contentious measures. Regulatory changes are also underway in the UK financial sector, with the FCA setting expectations for a faster T+1 securities settlement by 2027 and advancing fund tokenisation and consumer duty streamlining, reflecting ongoing efforts to modernize and stabilize financial markets amid fiscal pressures. Overall, these developments across France, Slovakia, and the UK underscore the diverse yet challenging fiscal landscapes facing European countries as they balance economic growth, social welfare, and financial stability.