U.K’s Tax Proposal, Polish Rates, France Outlook: Eco Day

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Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The U.K. is set to take the lead among developed economies by raising new taxes that will help trim pandemic budget deficits, an issue that’s likely to dominate policy debate across the world in the coming years
• German voters haven’t heard much from Angela Merkel’s potential successors about how they will reconcile their spending ambitions for the economy with the budget prudence that defined her chancellorship
• The European Union’s fastest inflation isn’t enough, on its own, to make Poland’s central bank lift interest rates from their record low
• The Bank of Canada will likely tread carefully this week, mutedly acknowledging a weaker-than-expected economy in the midst of a heated election campaign
• France’s economic outlook improved over the summer despite a surge in cases of the delta variant, suggesting an increased vaccination rate may have ended the stop-go disruption of the pandemic
• The Bank of England said it expects staff to be physically present at work “at least one day a week and generally more” as part of its return to office plan
• President Joe Biden has a historic opportunity to reshape the Federal Reserve Board, with long-lasting implications for both monetary policy and financial regulation, writes David Wilcox at Bloomberg Economics
• Japan’s economy had more momentum than initially thought ahead of a record surge in virus cases that contributed to Prime Minister Yoshihide Suga’s downfall
• Chinese consumers cut back on buying cars and apartments in August as stronger regulation of the property market and a broad Covid outbreak in the country further undercut the economy’s already slowing recovery

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