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ECB Hiking Critics Keep Up Political Heat From Portugal to Italy

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(Bloomberg) — Criticism of European Central Bank monetary tightening is persisting, with a new round of attacks on Thursday from southern Europe’s senior politicians.

Frankfurt officials haven’t properly understood the nature of inflation that the euro area is currently facing, Portuguese Prime Minister Antonio Costa told reporters in Brussels, while Italian deputy premier Antonio Tajani added criticism after an initial salvo earlier in the week.

“We hope that, from September, we may start to resume a monetary policy trajectory that is more adequate for what is fundamental,” Portugal’s premier said, observing a need to “safeguard the living conditions of families, the capacity of companies to invest and of the economy to continue growing and generating jobs that generate better salaries.”

The remarks add to a flurry by senior government figures in recent days, suggesting that an effective hiatus in commentary on the politically independent ECB has ended with an open season to speak out. That may be one measure of evidence that 400 basis points in interest-rate hikes are starting to impact the euro-zone economy.

“We have great respect for the ECB and we reaffirm its independence, but it is also legitimate to make observations,” Tajani said in Brussels, in comments reported by Ansa. “I have criticized — and not from today — some choices made in the fight against inflation, which derives from the cost of raw materials, whereas in the US it comes from a very favorable economic situation.”

Tajani, who is Italy’s foreign minister and one of the party leaders in premier Giorgia Meloni’s coalition, also sought to qualify his remarks, as did Costa.

“We believe in the ECB and the European Commission,” the Italian said, while maintaining “the right to participate in the debate.” The Portuguese premier meanwhile affirmed that the ECB “is sovereign in defining monetary policy.”

A day earlier Costa’s finance minister, Fernando Medina, said that he has personally voiced concerns to ECB President Christine Lagarde about the impact of higher borrowing costs. In Italy, both Meloni and deputy premier Matteo Salvini, another coalition leader, have slammed the central bank’s policies in recent days.

Spanish Economy Minister Nadia Calvino kicked off the latest round of commentary, albeit in measured tones. The country may not require more rate hikes, she said last week, while adding that “I know the ECB is looking at Europe as a whole.”

Costa offered an extensive critique in his comments on Thursday at a time when policymakers are preparing to raise rates in July, with the possibility of more action thereafter.

“I think there hasn’t been sufficient understanding on part of the ECB about the specific nature of the inflationary cycle we have been having, and also not taking into due account what are the factors that have fed this inflationary tension,” he said. “If we don’t get the diagnosis right, then the therapy rarely hits the target.”

 

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Quebec consumer rights bill to regulate how merchants can ask for tips

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Quebec wants to curb excessive tipping.

Simon Jolin-Barrette, minister responsible for consumer protection, has tabled a bill to force merchants to calculate tips based on the price before tax.

That means on a restaurant bill of $100, suggested tips would be calculated based on $100, not on $114.98 after provincial and federal sales taxes are added.

The bill would also increase the rebate offered to consumers when the price of an item at the cash register is higher than the shelf price, to $15 from $10.

And it would force grocery stores offering a discounted price for several items to clearly list the unit price as well.

Businesses would also have to indicate whether taxes will be added to the price of food products.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Youri Chassin quits CAQ to sit as Independent, second member to leave this month

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Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.

He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.

In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.

Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.

He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.

Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.

He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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‘I’m not going to listen to you’: Singh responds to Poilievre’s vote challenge

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MONTREAL – NDP Leader Jagmeet Singh says he will not be taking advice from Pierre Poilievre after the Conservative leader challenged him to bring down government.

“I say directly to Pierre Poilievre: I’m not going to listen to you,” said Singh on Wednesday, accusing Poilievre of wanting to take away dental-care coverage from Canadians, among other things.

“I’m not going to listen to your advice. You want to destroy people’s lives, I want to build up a brighter future.”

Earlier in the day, Poilievre challenged Singh to commit to voting non-confidence in the government, saying his party will force a vote in the House of Commons “at the earliest possibly opportunity.”

“I’m asking Jagmeet Singh and the NDP to commit unequivocally before Monday’s byelections: will they vote non-confidence to bring down the costly coalition and trigger a carbon tax election, or will Jagmeet Singh sell out Canadians again?” Poilievre said.

“It’s put up or shut up time for the NDP.”

While Singh rejected the idea he would ever listen to Poilievre, he did not say how the NDP would vote on a non-confidence motion.

“I’ve said on any vote, we’re going to look at the vote and we’ll make our decision. I’m not going to say our decision ahead of time,” he said.

Singh’s top adviser said on Tuesday the NDP leader is not particularly eager to trigger an election, even as the Conservatives challenge him to do just that.

Anne McGrath, Singh’s principal secretary, says there will be more volatility in Parliament and the odds of an early election have risen.

“I don’t think he is anxious to launch one, or chomping at the bit to have one, but it can happen,” she said in an interview.

New Democrat MPs are in a second day of meetings in Montreal as they nail down a plan for how to navigate the minority Parliament this fall.

The caucus retreat comes one week after Singh announced the party has left the supply-and-confidence agreement with the governing Liberals.

It’s also taking place in the very city where New Democrats are hoping to pick up a seat on Monday, when voters go to the polls in Montreal’s LaSalle—Émard—Verdun. A second byelection is being held that day in the Winnipeg riding of Elmwood—Transcona, where the NDP is hoping to hold onto a seat the Conservatives are also vying for.

While New Democrats are seeking to distance themselves from the Liberals, they don’t appear ready to trigger a general election.

Singh signalled on Tuesday that he will have more to say Wednesday about the party’s strategy for the upcoming sitting.

He is hoping to convince Canadians that his party can defeat the federal Conservatives, who have been riding high in the polls over the last year.

Singh has attacked Poilievre as someone who would bring back Harper-style cuts to programs that Canadians rely on, including the national dental-care program that was part of the supply-and-confidence agreement.

The Canadian Press has asked Poilievre’s office whether the Conservative leader intends to keep the program in place, if he forms government after the next election.

With the return of Parliament just days away, the NDP is also keeping in mind how other parties will look to capitalize on the new makeup of the House of Commons.

The Bloc Québécois has already indicated that it’s written up a list of demands for the Liberals in exchange for support on votes.

The next federal election must take place by October 2025 at the latest.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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