Economy
Spain OKs sweeping housing plan as costs surge ahead of elections
Spain’s government on Tuesday approved a broad plan to tackle the country’s deepening housing crisis, a key political challenge for Prime Minister Pedro Sanchez ahead of elections next year.
Rising rental and housing costs are pricing many Spaniards out of the market, despite a recent economic boom. Incomes have failed to keep up. Analysts say tourism and population growth in cities driven by immigration have further strained supply.
The new plan, worth 7 billion euros ($8.23 billion), triples government investment in public housing over the next four years. It ensures that subsidized housing cannot be reclassified after a few years. It also includes help for young renters and home buyers.
“It is a significant step forward. For the first time in decades, there is a serious budgetary commitment,” said Raluca Budian, associate director of the Observatory for Decent Housing at the Madrid-based Esade business school.
About 40% of the money will be earmarked for growing the public housing supply, which Spain lacks compared to the European average, while 30% will be set aside for property renovations, the government said. That will include funds for making homes more energy-efficient and building in depopulated parts of the country.
The rest will go toward subsidies, with a focus on young people.
“The public is demanding an agreement to address the main problem currently affecting them,” Housing Minister Isabel Rodríguez said Tuesday. Housing routinely comes up as Spaniards’ top concern, according to state pollster CIS.
Housing costs in Spain rose nearly 13% year-on-year at the end of 2025, according EU statistics agency Eurostat.
Spain ranks near the bottom of Organization for Economic Co-operation and Development countries with public housing for rent, with under 2% of available supply. The OECD average is 7%. In France, it is is 14%, Britain 16% and the Netherlands 34%.
In the past, Spain built housing with public funds that later passed into private ownership. Once they were sold, they disappeared from the public housing stock.
Brazil does not favor either the United States or China as a trading partner, President Luiz Inacio Lula da Silva said Tuesday, underscoring the country’s balanced approach to global economic ties.
Lula said Brazil seeks to maintain strong and pragmatic relations with both Washington and Beijing, prioritizing national interests over geopolitical alignment.
“We want multilateralism,” Lula added during a joint declaration alongside Portuguese Prime Minister Luis Montenegro at Lisbon’s Belem Palace.
Last month, the Brazilian leader described China as his country’s “best partner,” as he welcomed investments by Chinese carmakers in Latin America’s largest economy.
“I am confident that the partnership with China is thriving,” Lula told an event marking the reopening of an automotive plant in Goias state, a partnership between Brazil’s CAOA and Chinese automaker Changan.
Italy’s foreign minister said Tuesday that a proposal to suspend the EU-Israel Association Agreement has been set aside, with member states expected to consider alternative measures in the coming weeks.
Speaking to reporters on the sidelines of the EU Foreign Affairs Council meeting in Luxembourg, Antonio Tajani said the proposal to suspend the trade agreement with Israel over Gaza has been definitively shelved.
“Other possible initiatives will be discussed at the next ministerial meeting on May 11, and we will evaluate them,” he was quoted by the Italian news agency ANSA.
Recalling that his country has recently suspended the automatic confirmation of the defense memorandum with Israel, he noted that Italy is applying pressure.
However, he added: “It must be the government, not the civilian population.”
“We have a different position from Spain, because theirs doesn’t seem like the right path to take. Our position is identical to Germany’s,” said the foreign minister.
It came as European countries were divided over trade ties with Israel, as Spain and Ireland pushed for the suspension, while some other countries, including Germany, had expressed opposition to the idea.
Israeli offensive in Gaza, retaliating to a Hamas attack on southern Israel, has killed more than 72,500 Palestinians, wounded over 172,000 others, while destroying about 90% of Gaza’s civilian infrastructure since Oct. 7, 2023.
Israel has repeatedly violated a cease-fire in place since Oct. 10, 2025, killing 777 Palestinians and injuring 2,193 others.
Türkiye expects to benefit from new regional dynamics after ongoing conflicts subside, Vice President Cevdet Yılmaz said on Tuesday, stressing that the country’s diversified supply structure and relative stability position it as a “safe haven” for investment.
“As a country with diversified supply systems, we do not have a supply shortage in any area. A new regional environment awaits us after the war. New dynamics will come into play, and we believe that as a country that maintains its stability and preserves its character as a safe haven, we have very significant opportunities and possibilities in this environment,” Yılmaz said.
He was speaking at a roundtable organized by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB) and the U.S. Chamber of Commerce.
“Although these events may have negative impacts in the short term, they bring an important perspective and significant opportunities for Türkiye in the medium term,” said the vice president.
Oil and gas prices spiked following the start of joint U.S.-Israeli strikes on Iran on Feb. 28. Global supply chains are facing a historic upheaval as the war disrupts shipments through the Strait of Hormuz, the key transit point for Gulf oil and gas exports, as well as fertilizers.
Yılmaz said Türkiye has managed to shield itself from supply disruptions thanks to diversified sourcing, while taking measures to limit inflationary pressures caused by rising global prices.
“We are making efforts to contain the impact on inflation, even at the cost of taking on some fiscal burden,” he said.
At the same time, Yılmaz underscored Ankara’s dual approach of maintaining strong deterrence while advocating diplomacy, negotiations and cease-fires in regional conflicts.
“We support peace and diplomacy in every field and will continue to contribute to these processes,” he said.
Trade momentum continues, but imbalance widens
The meeting in Ankara, attended by senior representatives from the U.S. business community, focused on expanding bilateral trade and investment ties.
Yılmaz highlighted the strong trajectory of economic relations between Türkiye and the United States, noting that bilateral trade reached $39 billion in 2025, with the U.S. becoming one of Türkiye’s largest export markets.
Trade volume stood at $10.4 billion in the first quarter of 2026, signaling continued momentum toward the long-standing $100 billion trade target, he said. However, Yılmaz acknowledged that the trade balance has recently shifted against Türkiye, partly due to increased imports in energy and defense.
“To ensure a more sustainable and balanced structure, we aim to diversify trade and focus on high value-added sectors,” he added.
Beyond trade, mutual investments have also deepened. Direct U.S. investments in Türkiye totaled $16 billion between 2003 and 2025, with more than 2,300 U.S.-capital companies operating in the country across production, exports, employment and research and development.
Turkish companies, in turn, have invested more than $14 billion in the United States over the same period. Still, Yılmaz said Türkiye has significant untapped potential given the United States’ roughly $8 trillion global foreign direct investment stock.
Business leaders see strong investment potential
TOBB President Rifat Hisarcıklıoğlu echoed the positive outlook, saying the recent surge in trade and investment ties has created strong momentum toward the $100 billion target, though sustainability and balance remain key priorities.
He also pointed to shifting global supply chains, where trends such as near-shoring and friend-shoring are elevating Türkiye’s strategic importance due to its geography, industrial capacity and workforce.
Chobani founder Hamdi Ulukaya, who also heads the U.S.-Türkiye Business Council, said the current geopolitical environment has further underscored Türkiye’s role as a strategic investment destination.
“Türkiye has a young, dynamic business environment,” he said, adding that long-term investors could reap significant returns. “Investments in Türkiye will yield incredible results.”
Turkish home appliance maker Arçelik said Tuesday it has agreed to sell its 60% stake in a joint venture with the Japanese Hitachi Global Life Solutions under a share purchase agreement worth approximately $261 million, thus exiting the venture.
Accordingly, the Turkish company will transfer its stake in the venture called Arçelik Hitachi Home Appliances to Hitachi Global Life Solutions, the company said in a statement shared at the Public Disclosure Platform (KAP).
Under the deal, Arçelik will receive $205 million in cash at closing, with deferred payments totalling $56 million to be paid in instalments over three years, it said.
The final price will be adjusted at closing to include 60% of Arçelik Hitachi’s net cash exceeding $56 million, the company said in a statement.
Türkiye is a major white goods producer, but sales, exports and production in the sector in Türkiye shrank last year as rising costs weighed on competitiveness.
The transaction marks Arçelik’s exit from the joint venture formed with Japan’s Hitachi in 2020 and includes the transfer of 12 subsidiaries, among them manufacturing plants and R&D centers in China and Thailand.
At 7:04 a.m. GMT, Arçelik shares were around 3% higher, though still about 37% below their May 2024 peak.
Hitachi said the deal is part of a broader restructuring. It plans to fold its home appliances operations, including its remaining 40% stake in Arçelik Hitachi, into a new company to be set up under a strategic partnership with Japanese electronics retailer Nojima Corporation.
If that restructuring is completed, Arçelik’s 60% stake will ultimately be acquired by the new company under Nojima’s indirect control. If not, Hitachi will directly purchase Arçelik’s stake.
Completion is subject to regulatory approvals and the completion of Hitachi’s planned spin-off. The parties expect the closing within 12 months.
U.S. Labor Secretary Lori Chavez-DeRemer has left her post following allegations of misconduct, the Trump administration said Monday, marking the third Cabinet-level departure in recent months after Trump fired his embattled Homeland Security Secretary Kristi Noem in March and ousted Attorney General Pam Bondi earlier this month.
“Labor Secretary Lori Chavez-DeRemer will be leaving the Administration to take a position in the private sector,” White House spokesperson Steven Cheung said in a statement. “She has done a phenomenal job in her role by protecting American workers, enacting fair labor practices, and helping Americans gain additional skills to improve their lives.”
He said Keith Sonderling, the current deputy labor secretary, would become acting labor secretary in her place.
Chavez-DeRamer’s departure follows reports that began surfacing in January that she was under a series of investigations. The news outlet NOTUS was the first to report her resignation Monday.
Baby food produced by the German-based HiPP brand were pulled off the shelves in countries across Central Europe after rat poison was discovered in some jars over the weekend.
Five tampered jars have been recovered so far in Austria, the Czech Republic and Slovakia, but a sixth jar may “still be in circulation in Austria,” said police in the German state of Bavaria, who are leading the investigation.
Later on Monday, the company and German police said the jars were deliberately tainted with rat poison as part of an attempt to extort their manufacturer.
Austria’s health minister told parents, kindergartens and day care centers to use utmost caution when feeding young children HiPP. The company recalled some of its baby food jars in the three countries.
Authorities believe tampering occurred in 190-gram (6.7-ounce) jars of baby food made with carrots and potatoes for 5-month-old children that were sold at SPAR supermarkets in Austria. The first sample tested positive on Saturday.
On Monday, Austrian authorities said they were searching for a second jar of baby food that may have poison. It may have been sold at a SPAR supermarket in the eastern town of Eisenstadt, Austrian news agency APA reported.
“It is deeply disturbing that someone is apparently willing to endanger the health of babies for criminal motives,” Health Minister Korinna Schumann told APA.
In the Czech Republic, two jars of HiPP baby food that tested positive for the poison were found in a store in the city of Brno. The state prosecution in Brno confirmed the find but did not give further details, citing a police investigation.
HiPP said its retail partners in Czechia and Slovakia “have already removed all jars of HiPP baby food from sale as a precaution.”
Slovak police said they were investigating suspicious jars from a store in the city of Dunajska Streda.
Slovenia began preemptively withdrawing all HiPP products from shelves of Spar and other supermarkets, its health inspectorate said.
Austrian authorities also reached out to Hungarian officials, saying a poisoned jar may have been purchased by people living in the border region near Eisenstadt.
Burgenland Police in Austria said the suspicious products likely have a white sticker with a red circle on the bottom of the jar. Other warning signs include a damaged or opened lid and an unusual or spoiled smell. There might not be a popping noise when the jar is first opened.
“HiPP is the victim of an extortion attempt,” the German company said in a statement later on Monday, saying the person trying to extort the company had sent it a message. It said the jars had been tampered with but did not mention poison.
“Ingolstadt police is conducting an investigation under the supervision of the Ingolstadt prosecutors’ office into persons unknown on suspicion of attempted extortion against baby food producer HiPP,” the police said in a statement shortly before HiPP’s.
It did not provide specifics on the attempt but said all necessary measures were taken once an email by the presumed culprits came to light on April 16.
Austrian newspaper Die Presse reported on Monday, before the German police statement, that an email was sent to HiPP on March 27 and gave the company until April 2 to pay 2 million euros ($2.35 million) or two jars of baby food would be poisoned in each of three specific supermarkets in the Czech Republic, Slovakia and Austria.
Without providing dates, HiPP said the message it received was sent to “an unpersonalized collective address that, as part of our standard processes, is viewed on occasions that are quite far apart”, and that it had informed the authorities as soon as it became aware of it.
“This is a criminal, external manipulation beyond our control in three shops. We are not aware of any further instances of manipulation,” it said.
The Burgenland public prosecutor’s office was investigating the case as “intentional endangerment of the public.”
HiPP last week said the recall “is not due to any product or quality defect on our part. The jars left our HiPP facility in perfect condition.”
HiPP said it was recalling all of its baby food jars sold at Austria’s SPAR supermarkets – which include SPAR, EUROSPAR, INTERSPAR and Maximarkt stores – as a precaution.
Rat poison typically includes bromadiolone, which prevents blood from clotting, according to the Austrian Agency for Health and Food Safety. Ingesting rat poison could lead to bleeding gums and nosebleeds as well as bruising and blood in the stool.
Symptoms could appear two to five days after ingestion, the agency said.
In Prague, Ester Svetlik Danelova, who is currently on maternity leave, told The Associated Press (AP) that “the situation is worrying,” for her family.
“I have three kids, and we definitely use this (baby food) throughout their lives,” she said, adding that “on the bright side, it means I cook more at home now.”
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