Finnish Prime Minister Jyrki Katainen’s unexpected decision to resign lifted Economy Minister Jan Vapaavuori to among the favorites to become the next premier as the ruling parties see no need for early elections.
Czech Prime Minister Bohuslav Sobotka is clashing with billionaire Finance Minister Andrej Babis over budget spending, a sign of strain in the coalition government as it heads for talks on next year’s public finances.
Germany’s coalition and the Verdi union yesterday secured a pay deal for government workers that may prompt similar demands in other sectors and add to industry concern about the rising costs of investing in the country.
Sweden’s Green Party is ready to back the Social Democrats in forming a government in September, as the group will demand influence over climate and job issues, according to party leader Gustav Fridolin.
Estonia’s ruling Reform Party signed a coalition agreement with the opposition Social Democrats a year before general elections, replacing a junior government partner in a bid to win support with higher spending.
Sweden is preparing major changes for the $173 billion in assets managed by its pension funds and will ease restrictions on private equity and infrastructure investments to boost returns and safeguard income for retirees.