After Two Years of Closed Borders, Australia Welcomes the World Back

A Singapore Airlines plane arriving from Singapore lands at the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 30, 2021. (Reuters)
A Singapore Airlines plane arriving from Singapore lands at the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 30, 2021. (Reuters)
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After Two Years of Closed Borders, Australia Welcomes the World Back

A Singapore Airlines plane arriving from Singapore lands at the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 30, 2021. (Reuters)
A Singapore Airlines plane arriving from Singapore lands at the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 30, 2021. (Reuters)

Australia said on Monday it will reopen its borders to vaccinated travelers this month, ending two years of misery for the tourism sector, reviving migration and injecting billions of dollars into the world No. 13 economy.

The move effectively calls time on the last main component of Australia's response to the COVID-19 pandemic, which it has attributed to relatively low death and infection rates. The other core strategy, stop-start lockdowns, was shelved for good in December.

The country had taken steps in recent months to relax border controls, like allowing in skilled migrants and quarantine-free travel arrangements - "travel bubbles" - with select countries like New Zealand.

But the reopening, which takes effect on Feb. 21, represents the first time since March 2020 that people can travel to Australia from anywhere in the world as long as they are vaccinated.

"If you're double-vaccinated, we look forward to welcoming you back to Australia," Prime Minister Scott Morrison said at a media briefing in Canberra.

The tourism industry, which has relied on the domestic market that has itself been heavily impacted by movement restrictions, welcomed the decision which comes three months before Morrison is due to face an election.

"Over the two years since the borders have been closed the industry has been on its knees," said Australian Tourism Export Council Managing Director Peter Shelley by phone.

"Now we can turn our collective efforts towards rebuilding an industry that is in disrepair," he added.

Tourism and Transport Forum CEO Margy Osmond said the industry was "thrilled" by the reopening, but would need coordination to ensure Australia was competitive as a destination.

"It's not as simple as just turning on the tap and we see numbers of international tourists back where they were pre-COVID," she told reporters.

International and domestic tourism losses since the start of the pandemic totaled A$101.7 billion ($72 billion), according to government body Tourism Research Australia. International travel spending in Australia plunged from A$44.6 billion in the 2018-19 financial year to A$1.3 billion in 2020-21, TRA said.

Shares of tourism-related stocks soared as investors cheered the prospect of a return to profit growth. Shares of the country's main airline Qantas Airways Ltd jumped 5% while shares of travel agent Flight Center Travel Group Ltd surged 8%.

Qantas CEO Alan Joyce said in a statement the company was looking at flight schedules to determine ways to restart flights from more international locations soon.

As elsewhere in the world, Australian COVID cases have soared in recent weeks due to the Omicron variant which medical experts say may be more transmissible but less virulent than previous strains.

But with more than nine in 10 Australians aged over 16 fully vaccinated, new cases and hospitalizations appear to have slowed, the authorities say.

The country reported just over 23,000 new infections on Monday, its lowest for 2022 and far from a peak of 150,000 around a month ago.

Morrison meanwhile said the government would send up to 1,700 Australian Defense Force personnel to fill staffing shortages in the aged care sector, following complaints of under-staffing and fatigue due to increased pressures brought by the pandemic.

Around 2.4 million cases have been recorded in Australia since the first Omicron case was detected in Australia in November. Until then, Australia had counted only around 200,000 cases. Total deaths stand at 4,248 since the pandemic began.



France Has a New Government, Again. Politics and Crushing Debt Complicate Next Steps

France's Prime Minister Francois Bayrou makes an address after observing a minute of silence as part of an official day of mourning for the victims of Cyclone Chido which hit the archipelago on the French Indian Ocean territory of Mayotte a week ago, at The Hotel Matignon in Paris on December 23, 2024. (AFP)
France's Prime Minister Francois Bayrou makes an address after observing a minute of silence as part of an official day of mourning for the victims of Cyclone Chido which hit the archipelago on the French Indian Ocean territory of Mayotte a week ago, at The Hotel Matignon in Paris on December 23, 2024. (AFP)
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France Has a New Government, Again. Politics and Crushing Debt Complicate Next Steps

France's Prime Minister Francois Bayrou makes an address after observing a minute of silence as part of an official day of mourning for the victims of Cyclone Chido which hit the archipelago on the French Indian Ocean territory of Mayotte a week ago, at The Hotel Matignon in Paris on December 23, 2024. (AFP)
France's Prime Minister Francois Bayrou makes an address after observing a minute of silence as part of an official day of mourning for the victims of Cyclone Chido which hit the archipelago on the French Indian Ocean territory of Mayotte a week ago, at The Hotel Matignon in Paris on December 23, 2024. (AFP)

France’s president and prime minister managed to form a new government just in time for the holidays. Now comes the hard part.

Crushing debt, intensifying pressure from the nationalist far right, wars in Europe and the Middle East: Challenges abound for President Emmanuel Macron and Prime Minister Francois Bayrou after an already tumultuous 2024.

What's wrong with French finances? The most urgent order of business is passing a 2025 budget. Financial markets, ratings agencies and the European Commission are pushing France to bring down its deficit, to comply with EU rules limiting debt and keep France’s borrowing costs from spiraling. That would threaten the stability and prosperity of all countries that share the euro currency.

France’s debt is currently estimated at a staggering 112% of gross domestic product. It grew further after the government gave aid payments to businesses and workers during COVID-19 lockdowns even as the pandemic depressed growth, and capped household energy prices after Russia invaded Ukraine. The bill is now coming due.

But France’s previous government collapsed this month because Marine Le Pen’s far-right party and left-wing lawmakers opposed 60 billion euros in spending cuts and tax hikes in the original 2025 budget plan. Bayrou and new Finance Minister Eric Lombard are expected to scale back some of those promises, but the calculations are tough.

“The political situation is difficult. The international situation is dangerous, and the economic context is fragile,” Lombard, a low-profile banker who advised a Socialist government in the 1990s, said upon taking office.

“The environmental emergency, the social emergency, developing our businesses — these innumerable challenges require us to treat our endemic illness: the deficit,” he said. “The more we are indebted, the more the debt costs, and the more it suffocates the country.”

How long will this government last? This is France’s fourth government in the past year. No party has a parliamentary majority and the new Cabinet can only survive with the support of lawmakers on the center-right and center-left.

Le Pen — Macron’s fiercest rival — was instrumental in ousting the previous government by joining left-wing forces in a no-confidence vote. Bayrou consulted her when forming the new government and Le Pen remains a powerful force.

That angers left-wing groups, who had expected more influence in the new Cabinet, and who say promised spending cuts will hurt working-class families and small businesses hardest. Left-wing voters, meanwhile, feel betrayed ever since a coalition from the left won the most seats in the summer's snap legislative elections but failed to secure a government.

The possibility of a new no-confidence vote looms, though it's not clear how many parties would support it.

What about Macron? Macron has repeatedly said he will remain president until his term expires in 2027.

But France's constitution and current structure, dating from 1958 and called the Fifth Republic, were designed to ensure stability after a period of turmoil. If this new government collapses within months and the country remains in political paralysis, pressure will mount for Macron to step down and call early elections.

Le Pen's ascendant National Rally is intent on bringing Macron down. But Le Pen faces her own headaches: A March court ruling over alleged illegal party financing could see her barred from running for office.

What else is on the agenda? The National Rally and hard-right Interior Minister Bruno Retailleau want tougher immigration rules. But Bayrou wants to focus on making existing rules work. “There are plenty of (immigration) laws that exist. None is being applied,” he said Monday on broadcaster BFM-TV, to criticism from conservatives.

Military spending is a key issue amid fears about European security and pressure from US President-elect Donald Trump for Europe to spend more on its own defense. French Defense Minister Sebastien Lecornu, who champions military aid for Ukraine and ramping up weapons production, kept his job and stressed in a statement Tuesday the need to face down “accumulating threats” against France.

More immediately, Macron wants an emergency law in early January to allow sped-up reconstruction of the cyclone-ravaged French territory of Mayotte in the Indian Ocean off Africa. Thousands of people are in emergency shelters and authorities are still counting the dead more than a week after the devastation.

Meanwhile the government in the restive French South Pacific territory of New Caledonia collapsed Tuesday in a wave of resignations by pro-independence figures — another challenge for the new overseas affairs minister, Manuel Valls, and the incoming Cabinet.