TOKYO — Japan’s opposition Democratic Party for the People (DPP) will propose issuing five trillion yen ($32 billion, $1 = 157.8800 yen) in “education bonds” annually to double the spending on childcare, education and scientific research, a draft campaign platform obtained by Reuters showed on Monday.

The DPP will also propose lowering the consumption tax rate to 5% from 10% until the pace of wage gains exceeds the rate of inflation by 2%, the draft showed.

To fund various spending measures, Japan should use proceeds from investing 180 trillion yen worth of reserves set aside for currency intervention, another 280 trillion yen in pension reserves, as well as 90 trillion yen worth of exchange-traded funds held by the central bank, the platform showed.

Prime Minister Sanae Takaichi is widely expected to dissolve parliament’s lower house and call a snap election in February in her first major election test since taking office in October.

DPP currently holds the third-largest number of seats among opposition parties and enjoys popularity among younger voters with its focus on expanding tax breaks and increasing pay.

Depending on the election outcome, the party could influence government policies with its decision on whether to support parliament’s passage of the fiscal 2026 budget and a bill to allow government issuance of deficit-covering bonds, analysts say. — Reuters

TOKYO — Japan’s Prime Minister Sanae Takaichi said she will call a national election for February 8 to seek voter backing for increased spending, tax cuts, and a new security strategy expected to accelerate Japan’s defense build-up.

“I am staking my own political future as prime minister on this election. I want the public to judge directly whether they will entrust me with the management of the nation,” Ms. Takaichi said in a press conference.

She promised a two-year halt to an 8% consumption tax on food and said her spending plans would create jobs, boost household spending, and increase other tax revenues.

The prospect of consumption tax cut, which would reduce government revenue by 5 trillion yen ($32 billion) a year, according to government estimates, sent the yield on Japan’s 10-year government bonds to a 27-year high earlier on Monday.

The snap vote will decide all 465 seats in parliament’s lower house and mark Ms. Takaichi’s first electoral test since becoming Japan’s first female premier in October.

Calling an early election would allow her to capitalize on strong public support to tighten her grip on the ruling Liberal Democratic Party and shore up her coalition’s fragile majority.

The election will test voter appetite for higher spending at a time when the rising cost of living is the public’s top concern. A poll released by public broadcaster NHK last week found 45% of respondents cited prices as their main worry, followed by diplomacy and national security at 16%. — Reuters

AN IRANIAN official in the region said on Sunday the authorities had verified at least 5,000 people had been killed in protests in Iran, including about 500 security personnel, blaming “terrorists and armed rioters” for killing “innocent Iranians”.

The official, who declined to be named due to the sensitivity of the issue, also told Reuters some of the heaviest clashes and highest number of deaths were in the Iranian Kurdish areas in northwest Iran, a region where Kurdish separatists have been active and where flare-ups have been among the most violent in past periods of unrest.

“The final toll is not expected to increase sharply,” the official said, adding that “Israel and armed groups abroad” had supported and equipped those taking to the streets.

The Iranian authorities regularly blame unrest on foreign enemies, including Israel, an arch foe of the Islamic Republic which launched military strikes on Iran in June.

The US-based HRANA rights group said on Saturday the death toll had reached 3,308, with another 4,382 cases under review. The group said it had confirmed more than 24,000 arrests.

The Iranian Kurdish rights group Hengaw, based in Norway, has said that among regions where there were heavy security measures during protests in late December were Kurdish areas in the northwest. — Reuters

PARIS — France was moving closer to a 2026 budget deal on Monday after the government presented a last-ditch proposal that made concessions to most political parties, senior Socialist lawmaker Boris Vallaud told daily newspaper Le Parisien.

President Emmanuel Macron’s government lacks a majority in parliament and 2026 budget negotiations in the fragmented legislature have dragged on for months, forcing a rollover budget in the meantime to keep the country afloat.

Needing to win support from the Socialists without alienating conservatives, Prime Minister Sebastien Lecornu on Friday said he would no longer cut a tax rebate on pensions, and that a monthly income supplement benefit for low‑income workers would rise by some 50 euros per month for 3 million households.

Cheap meals for students in university canteens would be extended, and steps would also be taken to boost affordable housing. To help finance these measures, a corporate surtax on large companies, which was supposed to last only one year, would be extended through 2026 and raise 8 billion euros.

“The Prime Minister’s announcements allow us to imagine that we will not need to vote no-confidence,” Mr. Vallaud, who leads the Socialists in the National Assembly, told Le Parisien in comments published on Monday.

Mr. Lecornu’s office said late last week that it was impossible to adopt a budget by a vote in parliament, meaning he will have no choice but to bypass parliament either by invoking special constitutional powers or adopting the budget by executive order.

Both options would mean a no-confidence vote against the centrist government, making the Socialists’ support critical for its survival.

Mr. Vallaud said “assurances” were still needed on the reintroduction of a property wealth tax and the taxation of holding companies to improve the country’s deficit levels.

Mr. Lecornu repeated on Friday the budget deficit would be no higher than 5% of GDP, and possibly lower.

Cabinet ministers will meet on Monday to discuss options for pushing the budget through without a vote in parliament, government spokeswoman Maud Bregeon told Franceinfo on Sunday.

Budget Minister Amelie de Montchalin told BFM TV on Monday it was necessary to avoid the collapse of the government which would leave the country without a budget.

“Article 49.3 is a very dangerous path. Guarantees are needed”, she said, referring to an article in the constitution allowing the budget to be pushed through without a vote.

“The good news is that the prospect of early legislative elections is receding, and the government should remain in place for the moment,” ING analysts said in a note on Sunday.

“However, the final budget is far from business‑friendly, and the tax increases are likely to weigh on investment and hiring in 2026, with a negative impact on economic growth.” — Reuters

MADRID — The death toll from Sunday’s collision between a derailing high-speed train and a second oncoming train in southern Spain has risen to 39, with 152 people injured, state broadcaster RTVE reported on Monday, citing police sources.

The accident happened at 7.45 p.m. local time (1845 GMT) on Sunday near Adamuz in the province of Cordoba, about 360 kilometers (223 miles) south of the capital Madrid.

Over 200 trains between Madrid and the southern Andalucia region – including major cities Cordoba, Seville and Granada – have been cancelled throughout Monday, according to RTVE.

Prime Minister Pedro Sanchez has cleared out his agenda for the day, his office said in a statement on Monday.

Video from the scene shared on social media on Sunday showed rescuers pulling passengers from twisted carriages lying on their side under the glare of floodlights. Some passengers climbed out of smashed windows, while others were wheeled away on stretchers.

There were around 400 passengers on the two trains, most of them Spaniards traveling back to and from Madrid after the weekend. It was unclear how many tourists could be onboard as January is not holiday season in Spain.

The cause for the crash is not yet known, Spanish Transport Minister Oscar Puente told reporters at a press conference at Atocha station in Madrid on Sunday. — Reuters

BRUSSELS — European Union ambassadors reached broad agreement on Sunday to intensify efforts to dissuade US President Donald Trump from imposing tariffs on European allies, while also preparing retaliatory measures should the duties go ahead, EU diplomats said.

Mr. Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the US is allowed to buy Greenland, a step major EU states decried as blackmail.

EU leaders are set to discuss options at an emergency summit in Brussels on Thursday. One option is a package of tariffs on 93 billion euros ($107.7 billion) of US imports that could automatically kick in on February 6 after a six-month suspension.

The other is the so far never used “Anti-Coercion Instrument” (ACI), which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including in digital services.

The tariff package appeared to command broader support as a first response than anti-coercion measures, where the picture was currently “very mixed”, according to an EU source.

DIALOGUE IN DAVOS
European Council President Antonio Costa, who chairs EU summits, said in a social media post that his consultations with EU members had shown their strong commitment to support Denmark and Greenland and readiness to defend against any form of coercion.

Danish Foreign Minister Lars Lokke Rasmussen, visiting his Norwegian counterpart in Oslo, said Denmark would continue to focus on diplomacy, referring to an agreement Denmark, Greenland, and the US made on Wednesday to set up a working group.

“The US is also more than the US president. I’ve just been there. There are also checks and balances in American society,” he added.

The EU’s efforts at dialogue are likely to be a key theme of the World Economic Forum in Davos, where Mr. Trump is set to deliver a keynote address on Wednesday in his first appearance at the event in six years.

“All options on the table, talks in Davos with the US and leaders gather after that,” said one EU diplomat in summarizing the EU’s plan.

The eight targeted countries, already subject to US tariffs of 10% and 15%, have sent small numbers of military personnel to Greenland, as a row with the United States over the future of Denmark’s vast Arctic island escalates.

“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” they said in a joint statement published on Sunday, adding they were ready to engage in dialogue, based on principles of sovereignty and territorial integrity.

Danish Prime Minister Mette Frederiksen said in a written statement she was heartened by the consistent messages from the rest of the continent, adding: “Europe will not be blackmailed”.

The tariff threat unsettled global markets, with the euro and sterling falling against the dollar and a return to volatility expected.

QUESTION MARKS OVER US TRADE DEALS
A source close to French President Emmanuel Macron said he was pushing for activation of the ACI. Irish Prime Minister Micheal Martin said that while there should be no doubt that the EU would retaliate, it was “a bit premature” to activate the as yet unused instrument.

Italian Prime Minister Giorgia Meloni, who is closer to the US President than some other EU leaders, described the tariff threat on Sunday as “a mistake”, adding she had spoken to Mr. Trump a few hours earlier and told him what she thought.

Asked how Britain would respond to new tariffs, Culture Secretary Lisa Nandy said allies needed to work with the United States to resolve the dispute.

“Our position on Greenland is non-negotiable … It is in our collective interest to work together and not to start a war of words,” she told Sky News on Sunday.

The tariff threats do though call into question trade deals the US struck with Britain in May and the EU in July.

The limited agreements have already faced criticism about their lopsided nature, with the US maintaining broad tariffs, while their partners are required to remove import duties.

The European Parliament looks set to suspend its work on the EU-US trade deal. It had been due to vote on removing many EU import duties on January 26-27, but Manfred Weber, head of the European People’s Party, the largest group in parliament, said late on Saturday that approval was not possible for now.

German Christian Democrat lawmaker Juergen Hardt also mooted what he told Bild newspaper could be a last resort “to bring President Trump to his senses on the Greenland issue”, a boycott of the soccer World Cup that the US is hosting this year.— Reuters

HANOI — Hundreds of delegates from Vietnam’s ruling Communist Party will gather Monday under tight security for a congress that will select the single-party country’s top leader and set economic goals for the remainder of the decade.

The week-long event, which operates under opaque rules and convenes every five years, could cement and possibly expand power for the party’s current general secretary, To Lam, who has launched sweeping bureaucratic reforms at home and become Vietnam’s public face overseas.

About 1,600 delegates will elect a 200-person Central Committee, which then will pick up to 17 to 19 members of the Politburo from which the general secretary is chosen.

Mr. Lam is seeking to retain his role and possibly take on the state presidency, which has recently been held by a military leader, officials briefed on the matter said.

The congress is likely to confirm him as general secretary, according to multiple officials, although surprises cannot be ruled out, while the decision about the presidency is expected to be made at a later meeting where the outcome is even less clear.

After the congress, the Politburo will nominate the heads of state, government and Parliament. Parliamentary elections will take place only after leaders are chosen by the party.

RISK-TAKING LEADER
Mr. Lam, 68, has launched several major reforms during his brief tenure as party chief, the country’s most powerful job. He ascended to the position following the death of his predecessor, Nguyen Phu Trong, in July 2024.

Widely viewed as a risk-taker, Mr. Lam introduced the most significant administrative reform in decades when he cut tens of thousands of jobs in an effort to speed up decisions. The impact has yet to be fully assessed as officials adapt, but approval timelines for some investment projects have shortened.

That acceleration is tied in part to the scaling back of a sweeping anti‑corruption drive launched under Mr. Trong, an effort that Mr. Lam helped lead as public security minister. The campaign, which was meant to combat systemic bribery, at times paralyzed government decision‑making and led to the downfall of senior figures – including two presidents – clearing Mr. Lam’s path to the top.

Mr. Lam has also launched economic reforms and a burst of infrastructure projects, winning favor with foreign investors while stoking concerns about favoritism and waste.

In a country that allows no opposition, Mr. Lam has presided over a strengthening of the security forces and a tightening of controls over media and dissidents.

ECONOMIC GROWTH, SECURITY TOP NEXT FIVE-YEAR AGENDA
The congress’ delegates represent 5.6 million party members in a country of 100 million.

Under tight security – mobile phones will be jammed in the Hanoi building where the congress will take place – they will also refine the text of a resolution to be approved by the end of the congress, which is scheduled to wrap up on January 25.

A party draft released in October on the party’s website suggests the final text will prioritize security and ambitious growth, targeting at least 10% annually over the next five years, from the 6.5% to 7.0% target that was missed in the first half of the decade.

The draft mentions security dozens of times and highlights the importance of diplomacy and defense in a “more dangerous” world. The party intends to increase its defense forces, especially in border areas, the draft text says.

Environmental protection, which has been increasingly debated recently in the heavily polluted country, has also gained prominence, according to Politburo member Nguyen Xuan Thang.— Reuters