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    Europe Wants to Build a Stronger Defense Industry, but Can’t Decide How

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    Conflicting political visions, competitive jockeying and American dominance stand in the way of a more coordinated and efficient military machine.France and Germany’s recent agreement to develop a new multibillion-dollar battlefield tank together was immediately hailed by the German defense minister, Boris Pistorius, as a “breakthrough” achievement.“It is a historic moment,” he said.His gushing was understandable. For seven years, political infighting, industrial rivalry and neglect had pooled like molasses around the project to build a next-generation tank, known as the Main Combat Ground System.Russia’s invasion of Ukraine more than two years ago jolted Europe out of complacency about military spending. After defense budgets were cut in the decades that followed the Soviet Union’s collapse, the war has reignited Europe’s efforts to build up its own military production capacity and near-empty arsenals.But the challenges that face Europe are about more than just money. Daunting political and logistical hurdles stand in the way of a more coordinated and efficient military machine. And they threaten to seriously hobble any rapid strengthening of Europe’s defense capabilities — even as tensions between Russia and its neighbors ratchet up.“Europe has 27 military industrial complexes, not just one,” said Max Bergmann, a program director at the Center for Strategic and International Studies in Washington.The North Atlantic Treaty Organization, which will celebrate its 75th anniversary this summer, still sets the overall defense strategy and spending goals for Europe, but it doesn’t control the equipment procurement process. Each NATO member has its own defense establishment, culture, priorities and favored companies, and each government retains final say on what to buy.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    He Won by a Landslide. Why Is He Fighting for His Political Life?

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    Ben Houchen, a regional mayor in the north of England, faces a close re-election race, partly thanks to the broader troubles of Britain’s Conservative Party.The last time Ben Houchen ran to be mayor of Tees Valley, a struggling, deindustrialized region in northeastern England, he stormed to victory with almost 73 percent of the vote.Three years on, Mr. Houchen, a Conservative politician, faces a re-election contest in which even a narrow win would do.As voters in England prepare to vote in Thursday’s local and mayoral elections, the governing Conservatives, led by Prime Minister Rishi Sunak, are trailing badly in the opinion polls to the opposition Labour Party ahead of a general election expected later this year.So Mr. Houchen has campaigned on his own achievements, relying on his personal brand as the poster boy for “leveling up” — the Conservatives’ flagship policy of bringing prosperity to disadvantaged regions of England.But with Britain’s economy stagnating and its health service in crisis, will that be enough to outweigh the backlash facing the broader Conservative Party?“If Houchen loses, given the profile that he has, and given that in mayoral elections people are more likely to vote for the individual, that would suggest that it is actually his Conservative links that have done for him,” said Paul Swinney, director of policy and research at the Center for Cities, a research institute. “Him losing would be bad news for Rishi Sunak.”The result in Mr. Houchen’s region could determine not just his fate, but that of the embattled Mr. Sunak. Victory would give the prime minister something positive to talk about on Friday when results come in and the Conservatives expect losses elsewhere. Defeat could stir panic among Tory lawmakers and possibly prompt a push to replace Mr. Sunak.Leveling UpHeidi McCullagh, second from left, says business has picked up for her sandwich shop and catering company while Mr. Houchen has been mayor.Mary Turner for The New York TimesOnce an area controlled by the left-of-center Labour Party, Tees Valley is part of a swath of England’s formerly industrial North and Midlands where voters switched en masse to the Conservatives in the 2019 general election.Since Mr. Houchen first became mayor in 2017, a vast, derelict steelworks near the town of Redcar has been demolished and cleared for new projects, a failing airport has been saved and civil servants and filmmakers have been lured far from London to the northeast.Many people in the area give him credit for these achievements. Heidi McCullagh, 42, runs a sandwich shop and catering business near the historic Transporter Bridge across the River Tees.“We are 110 percent behind Ben Houchen because he has created so many jobs,” said Ms. McCullagh whose windows display his posters. “We do quite a lot of catering for businesses in the area; it’s definitely picked up,” she said. “Ben Houchen does everything he can to make Tees Valley a better place.”Not everyone agrees. At the heart of his regeneration plan is an ambitious project called Teesworks, where, on the site of the former steelworks, construction vehicles busy themselves on a moonscape-like tract of land.Land clearance on the Teesworks site, near Redcar.Mary Turner for The New York TimesRay Casey and Helen Taylor, members of a group opposing the re-election of Mr. Houchen.Mary Turner for The New York TimesThe idea is to convert this into a hub for low-carbon industries, but critics accuse Mr. Houchen of mishandling things to the financial advantage of two businessmen.The project, which has involved hundreds of millions of pounds in public investment, was initially half publicly owned, but a subsequent deal left the private-sector partners in the venture with 90 percent ownership. (Mr. Houchen declined requests for an interview, but has publicly defended the deal.)An independent review in January found no evidence of corruption but described “issues of governance and transparency” and said a number of decisions had not met “the standards expected when managing public funds.”Last week, Steve Gibson, a former collaborator on the project and the chairman of a major soccer club in the area, accused Mr. Houchen of “giving away everything they had worked for,” an intervention that may boost the chances of Labour’s candidate, Chris McEwan.‘An Emerald City’Hanging a protest banner against Mr. Houchen over a bridge near Redcar last week.Mary Turner for The New York TimesOn a bitingly cold day last week, five activists hung a banner from a road bridge near Redcar.“Honk if you want Houchen out,” the banner read, and a steady flow of motorists sounded their horns as the protesters, wearing masks of Mr. Houchen’s face, cheered and waved.“He promises that Teesside will become an emerald city,” said Ray Casey, a member of a small group that opposes Mr. Houchen, called Teesside Resistance. “It’s always just over the horizon, though — we never get there.”Sipping a beer later, Mr. Casey, 63, said he felt the mayor ran “an operation entirely based on public relations and spin.”Yet no one disputes that investment has come to a region of 304 square miles with a population of around 660,000 people, or that Mr. Houchen has good contacts. Last year he was nominated for a seat in the House of Lords by his ally Boris Johnson, the former prime minister. He also has ties to Michael Gove, the Conservative minister responsible for “leveling up.”In the town of Darlington, a shiny, modern building is now the northern base of the Treasury, Britain’s finance ministry. Rail stations are being spruced up. A film studio has risen from the site of an old bus depot in Hartlepool, a gritty seaside town a long way from Hollywood in every sense.Sacha Bedding, the chief executive of a charity, says the area is so far just “creating the conditions” for real regeneration.Mary Turner for The New York TimesThe Transporter Bridge, a major landmark in the Tees Valley.Mary Turner for The New York TimesThe question is how much this is benefiting local communities.Sacha Bedding, chief executive of the Wharton Trust, a charity based in Hartlepool, said investment was “creating the conditions that will give the area a proper stab” at regeneration, but that little had yet improved in the neighborhood.“The number of people who have fallen into financial insecurity has grown, and people who are working have struggled massively,” said Mr. Bedding, adding that many lacked hope. “When not a lot feels like it has changed, you almost end up with the attitude, ‘Well, what’s the point in voting?’”Sitting on a bench in Darlington, Ryan Walton, 19, said he planned to vote Labour. “Things have improved but not enough,” Mr. Walton said. “It would be better if they broadened their horizons and redeveloped areas where people live.”Green ShootsThe site of the Northern Studios, a regeneration project of television and film studios, in Hartlepool.Mary Turner for The New York TimesIn a fractious televised debate last week, Mr. Houchen defended his record against attacks from Labour’s Mr. McEwan and Simon Thorley of the centrist Liberal Democrats.In a dark suit, white shirt and striped tie, Mr. Houchen was confident and pugnacious, accusing critics of peddling conspiracies. “If you think you can turn around and change fortunes in just a few short years, that just doesn’t happen, but what we are seeing is the green shoots,” Mr. Houchen said when asked whether local people felt better off.For the filmmaking business, some of those green shoots can be seen in a movie called “Upgraded,” parts of which were filmed at Teesside International Airport, which stood in for a New York airport.Teeside International Airport, which Mr. Houchen took into public ownership.Mary Turner for The New York TimesMr. Houchen brought the loss-making airport into public ownership in 2019, an unusual market intervention for a Conservative politician.But in terms of its main business — aviation — Teesside International has yet to break even and offers only a handful of flights on most weekdays.Waiting in a largely deserted departure area before flying to Amsterdam, Derek Muir, 68, praised Mr. Houchen for saving the airport and said he would vote for him because “he gets things done and brings investment into the area.”Looking around the airport, however, he said that the lack of any flights to London was disappointing. “I would like it to be more busy,” he added. 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    The Fed Tries to Steer Clear of Politics, but Election Year Is Making It Tough

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    Economists are wondering whether political developments could play into both the Fed’s near-term decisions and its long-term independence.Federal Reserve officials are fiercely protective of their separation from politics, but the presidential election is putting the institution on a crash course with partisan wrangling.Fed officials set policy independently of the White House, meaning that while presidents can push for lower interest rates, they cannot force central bankers to cut borrowing costs. Congress oversees the Fed, but it, too, lacks power to directly influence rate decisions.There’s a reason for that separation. Incumbent politicians generally want low interest rates, which help to stoke economic growth by making borrowing cheap. But the Fed uses higher interest rates to keep inflation slow and steady — and if politicians forced to keep rates low and goose the economy all the time, it could allow those price increases to rocket out of control.In light of the Fed’s independence, presidents have largely avoided talking about central bank policy at all ever since the early 1990s. Pressuring officials for lower rates was unlikely to help, administrations reasoned, and could actually backfire by prodding policymakers to keep rates higher for longer to prove that they were independent from the White House.But Donald J. Trump upended that norm when he was president. He called Fed officials “boneheads” and implied that Jerome H. Powell, the Fed chair, was an “enemy” of America for keeping rates too high. And he has already talked about the Fed in political terms as he campaigns as the presumptive Republican nominee, suggesting that cutting interest rates before November would be a ploy to help President Biden win a second term.Some of Mr. Trump’s allies outside his campaign have proposed that the Fed’s regulatory functions should be subject to White House review. Mr. Trump has also said that he intends to bring all “independent agencies” under White House control, although he and his campaign have not specifically addressed directing the Fed’s decisions on interest rates.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Federal Money Is All Over Milwaukee. Biden Hopes Voters Will Notice.

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    White House officials have barnstormed Wisconsin to make the connection between big changes and their signature laws.Across Milwaukee, residents can see evidence of federal money from laws passed under the Biden administration, if they know where to look.It shows up in a growing array of solar panels near the airport. Ramshackle houses rehabilitated and sold to first-time buyers. The removal of lead paint and pipes. The demolition of a derelict mall. A crime lab and emergency management center. A clinic and food pantry for people with H.I.V. Funding to help dozens of nonprofits provide services like violence prevention efforts and after-school programs.But of the more than $1 billion for Milwaukee County in the American Rescue Plan Act, the Bipartisan Infrastructure Law and the Inflation Reduction Act — legislation that President Biden counts among his greatest accomplishments — much is harder to see, like funds to prevent drastic cuts to public safety during the pandemic. Some money has yet to be spent, like $3.5 million to rebuild the penguin exhibit at the local zoo and $5.1 million to repair the roof of Milwaukee Mitchell International Airport.That presents both an opportunity and a challenge to Mr. Biden’s re-election campaign as it seeks to show Americans how federal investments have improved their lives. Doing so is difficult because the laws delegated many spending decisions to state and local officials, obscuring the money’s source.“The link between the resources themselves and anything that happens on the ground that’s visible to people is very opaque,” said Robert Kraig, executive director of the progressive advocacy group Citizen Action of Wisconsin. “You need to find some way to communicate this idea that there’s concrete progress within people’s communities that improves quality of life — and that there’s more coming.”Vivent Health, a newly constructed facility in Milwaukee that offers services to people with H.I.V.Sara Stathas for The New York TimesSolar panels installed atop the Milwaukee Central Library, which includes a green roof.Sara Stathas for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Bill to Limit Canada’s Trade Negotiators on Farm Goods Edges Nearer to Law

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    The measure from a member of the Bloc Québécois would ban changes to the supply management system for dairy, poultry and eggs.Private members’ bills, particularly those from members of the Bloc Québécois, rarely make their way through the parliamentary process. But after passing the House of Commons with strong support from members of all parties, a bill from Yves Perron, who speaks for the Bloc on farming, handily passed a second vote in the unelected Senate on Tuesday.Supply management brings stability, but at a price.Ian Austen/The New York TimesAnd perhaps even more surprising, it deals with a contentious issue: Canada’s supply management system, which controls production and sets minimum prices for dairy and poultry products as well as eggs.Many free-market economists and politicians cast supply management as a legalized price cartel that increases Canadians’ grocery bills. And in negotiations for every one of Canada’s major trade agreements in recent decades, the supply management system has emerged as one of the final sticking points.[Read from 2016: Safe for Now, Canadian Dairy Farmers Fret Over E.U. Trade Deal]If Mr. Perron’s bill makes it past the few remaining legislative hurdles and becomes law, it will bar Canada’s trade negotiators from offering any changes to supply management during future trade talks.Under the system, to avoid price-killing oversupply, farmers are assigned a production quota — effectively a license to produce milk, chicken, turkey or eggs — that they cannot exceed. Until recently, imports were effectively banned through eye-wateringly high import duties.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Poor Nations Are Writing a New Handbook for Getting Rich

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    Economies focused on exports have lifted millions out of poverty, but epochal changes in trade, supply chains and technology are making it a lot harder.For more than half a century, the handbook for how developing countries can grow rich hasn’t changed much: Move subsistence farmers into manufacturing jobs, and then sell what they produce to the rest of the world.The recipe — customized in varying ways by Hong Kong, Singapore, South Korea, Taiwan and China — has produced the most potent engine the world has ever known for generating economic growth. It has helped lift hundreds of millions of people out of poverty, create jobs and raise standards of living.The Asian Tigers and China succeeded by combining vast pools of cheap labor with access to international know-how and financing, and buyers that reached from Kalamazoo to Kuala Lumpur. Governments provided the scaffolding: They built up roads and schools, offered business-friendly rules and incentives, developed capable administrative institutions and nurtured incipient industries.But technology is advancing, supply chains are shifting, and political tensions are reshaping trade patterns. And with that, doubts are growing about whether industrialization can still deliver the miracle growth it once did. For developing countries, which contain 85 percent of the globe’s population — 6.8 billion people — the implications are profound.Today, manufacturing accounts for a smaller share of the world’s output, and China already does more than a third of it. At the same time, more emerging countries are selling inexpensive goods abroad, increasing competition. There are not as many gains to be squeezed out: Not everyone can be a net exporter or offer the world’s lowest wages and overhead.Robotics at a car factory in China. Today, manufacturing accounts for a smaller share of the world’s output, and China already does more than a third of it. Qilai Shen for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    ‘Strike Madness’ Hits Germany While Its Economy Stumbles

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    A wave of strikes by German workers, feeling the sting of inflation and stagnant growth, is the latest sign of the bleak outlook for Europe’s economic powerhouse.For those striking at the gates of the SRW scrap metal plant, just outside Germany’s eastern city of Leipzig, time can be counted not just in days — 136 so far — but in the thousands of card games played, the liters of coffee imbibed and the armfuls of firewood burned.Or it can be measured by the length of Jonny Bohne’s beard. He vows not to shave until he returns to the job he has held for two decades. Wearing his red union baseball cap and tending the blaze inside an oil drum, Mr. Bohne, 56, looks like a scruffy Santa Claus.The dozens of workers at the SRW recycling center say their strike has become the longest in postwar German history — a dubious honor in a nation with a history of harmonious labor relations. (The previous record, 114 days, was held by shipyard workers in the northern city of Kiel who struck in the 1950s.)Jonny Bohne has vowed not to shave while on strike. It’s been awhile.Ingmar Nolting for The New York TimesWhile monthslong strikes may be commonplace in some other European countries like Spain, Belgium or France, where workers’ protests are something of a national pastime, Germany has long prided itself on nondisruptive collective bargaining.A wave of strikes this year has Germans asking whether that is now changing. By some measures, the first three months of 2024 have had the most strikes in the country in 25 years.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Why the Panama Canal Didn’t Lose Money When Ship Crossings Fell

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    A water shortage forced officials to reduce traffic, but higher fees increased revenue.Low water levels have forced officials to slash the number of ships that are allowed through the Panama Canal, disrupting global supply chains and pushing up transportation costs.But, remarkably, the big drop in ship traffic has not — at least so far — led to a financial crunch for the canal, which passes on much of its toll revenue to Panama’s government.That’s because the canal authority introduced hefty increases in tolls before the water crisis started. In addition, shipping companies have been willing to pay large sums in special auctions to secure one of the reduced number of crossings.In the 12 months through September, the canal’s revenue rose 15 percent, to nearly $5 billion, even though the tonnage shipped through the canal fell 1.5 percent.The Panama Canal Authority declined to say how much money it earned from auctions. At a maritime conference last week in Stamford, Conn., Ilya Espino de Marotta, the canal’s deputy administrator, said the auction fees, which reached as much as $4 million per passage last year, “helped a little bit.”But even now, during a quieter season for global shipping, auction fees can double the cost of using the canal. This month, Avance Gas, which ships liquefied petroleum gas, paid a $401,000 auction fee and $400,000 for the regular toll, said Oystein Kalleklev, the company’s chief executive. Auction fees are ultimately borne by the company whose goods are being shipped.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More