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      Your Friday Briefing: The U.S. Economy Grew, Slowly

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      Plus the war in Ukraine may boost clean energy and investigations into Chinese outposts overseas.Quarterly changes in gross domestic product, adjusted for inflation.By The New York TimesU.S. economy grows, but slowlyThe U.S. economy grew slowly over the summer, adding to fears of a looming recession while simultaneously keeping alive the hope that one might be avoided.Gross domestic product, adjusted for inflation, increased by 0.6 percent after six months of decline, slightly exceeding forecasters’ expectations. That suggests that a path to “soft landing,” in which policymakers cool off red-hot demand without snuffing out the recovery entirely, remains open, but narrow.There are still plenty of economic headwinds. Consumer spending slowed as inflation cut into households’ buying power, and mortgage rates rose to the highest level since 2002, leading to a steep contraction in the housing sector. Big tech companies like Meta and Microsoft, which are usually two drivers of U.S. growth, are also signaling that tough times might be ahead amid inflation.In Europe: The European Central Bank raised interest rates again. In just three months, the bank has raised rates at the fastest pace in its history.Ripple effects: Interest rate increases by the U.S. Federal Reserve have hurt other currencies — including those of Japan, China and India — by making it harder for foreign borrowers with debt in U.S. dollars to repay their loans.Quotable: “Ignore the headline number — growth rates are slowing,” Michael Gapen, chief U.S. economist for Bank of America, said. “It wouldn’t take much further slowing from here to tip the economy into a recession.”Europe has seen an uptick in coal use as countries scramble to replace lost Russian gas.Martin Meissner/Associated PressThe war in Ukraine may boost clean energyIn response to natural gas shortages caused by the war in Ukraine, some countries are burning more coal. In the short term, European leaders looking for alternatives to Russian gas are turning to Africa to drill for more fossil fuels.But the International Energy Agency said yesterday that the war could speed up the shift to clean energy rather than slowing it down. One major reason is that soaring fossil fuel prices have led to a wider embrace of wind turbines, solar panels, nuclear power plants, hydrogen fuels, electric vehicles and electric heat pumps.The State of the WarFears of Escalation: President Vladimir V. Putin of Russia repeated the unfounded claim that Ukraine was preparing to explode a so-called dirty bomb, as concerns rose in the West that the Kremlin was seeking a pretext to escalate the war.The Looming Fight for Kherson: As Russian forces pillage the occupied southern port city and pressure residents to leave for Russia, a nearby hydroelectric dam has emerged as a linchpin in what is shaping up to be the site of the next major battle in Ukraine.A Coalition Under Strain: President Biden is facing new challenges keeping together the bipartisan, multinational coalition supporting Ukraine, which has shown recent signs of fraying with the approach of U.S. midterm elections and a cold European winter.Anti-Drone Warfare: Since Russia began terrorizing Ukrainian cities in recent weeks with Iranian-made drones, Ukraine has turned its focus to an intense counter-drone strategy. The hastily assembled effort has been surprisingly successful.The I.E.A. said global investment in clean energy is now expected to rise to more than $2 trillion annually by 2030 from $1.3 trillion in 2022.Still, the shift is not happening fast enough to avoid dangerous levels of global warming. The agency said that for things to change, governments would have to take much stronger action to reduce their emissions over the next few years.Notable: A climate protester glued his head to “Girl With a Pearl Earring,” a painting by Johannes Vermeer, at a museum in The Hague.Beyond catastrophe: In The Times Magazine, David Wallace-Wells argues that while there’s plenty of bad climate news, thanks to real progress, the world is headed toward a less apocalyptic future.From Opinion: The runoff election in Brazil on Sunday will determine the fate of the Amazon rainforest and Earth’s future.“It is such a brazen escalation and violation of territorial sovereignty,” said a member of a rights group.Bart Maat/EPA, via ShutterstockChina’s offshore police stationsThe Dutch government is investigating reports that Chinese law enforcement agencies are illegally operating offices in the Netherlands to police Chinese citizens overseas.The recent reports, which come from the news media and a human rights group, add to a growing body of evidence that suggests that Beijing surveils Chinese nationals from overseas outposts. The authorities in Canada are investigating similar operations there, and a rights group said that there are dozens of surveillance outfits around the world — including in New York, Paris, London, Madrid and Toronto.China said that the operations, which it described as “service stations” meant to help Chinese citizens with administrative tasks like passport renewals, also have the aim of “resolutely cracking down on all kinds of illegal and criminal activities related to overseas Chinese people.”Reaction: China’s Embassy in the Netherlands said it was “not aware” of and “not involved” with the offices. According to the Vienna Convention, an international pact that both China and the Netherlands signed, administrative matters are to be handled by consulates.THE LATEST NEWSAsia PacificFoxconn is now making the new iPhone 14.Gilles Sabrie for The New York TimesA Covid outbreak in China forced workers at a major iPhone manufacturing plant into quarantine right before an expected holiday buying surge.An Australian judge ordered a new trial of a former parliamentary staff member accused of raping a colleague in the Parliament House, after a juror brought a research article on sexual assault cases into the jury room.Around the WorldThe deal has stirred fierce debate in Israel: Some view it as an achievement; others see it as a dangerous capitulation.Jack Guez/Agence France-Presse — Getty ImagesIsrael and Lebanon, which are technically still at war, signed a maritime agreement regulating their rights to gas reserves at sea.Brazil’s presidential runoff is Sunday. Many fear that President Jair Bolsonaro, who spent months building the myth of a stolen election, may not accept defeat.The War in UkraineVladimir Putin, Russia’s president, used an annual foreign policy speech to try to appeal to conservatives in the U.S. and Europe.Fearing aggression from Belarus, Ukraine said it had increased its troop presence in the north.Russian loyalists stole the bones of Prince Grigory Aleksandrovich Potemkin from Ukraine. Potemkin is an inspiration to Putin: He persuaded Catherine the Great, his lover, to annex Crimea in 1783.The Week in CultureSkechers said it escorted Kanye West, now known as Ye, from its Los Angeles offices after he showed up there unannounced. Many wonder whether his music can withstand the backlash to his recent string of offensive outbursts.A memoir by Prince Harry is due in January. Some royal experts say the project is fraught with risk for him.A Morning Read“We should lead this world,” Wang Xiaodong once said.Gilles Sabrié for The New York TimesWang Xiaodong was once called the standard-bearer of Chinese nationalism.Now, he warns that the movement he helped to ignite nearly 35 years ago has gone too far. “I’ve been called nationalism’s godfather,” he told my colleague Vivian Wang. “I created them. But I never told them to be this crazy.”SPOTLIGHT ON AFRICAA demonstration in Addis Ababa in support of Ethiopia’s armed forces last weekend.Amanuel Sileshi/Agence France-Presse — Getty ImagesHigh-stakes talks on EthiopiaAfter nearly two years of civil war, representatives from the Ethiopian government and rebel forces in the country’s Tigray region began holding formal peace talks this week.The failure of the talks could exacerbate a conflict that began when fighting broke out after a contested election, and in which thousands have been killed and millions have been displaced.Little has emerged so far from the negotiations, which are being held in South Africa and mediated by former African leaders on behalf of the African Union. Tigrayans in exile have said they have little hope that the talks will end the fighting.“Ethiopia faces multiple challenges including major climatic stresses, an economy in deep distress, partly due to the war, and a number of other rebellions,” Murithi Mutiga, the Africa program director at the International Crisis Group, said.“It can’t afford a years’ long war on its borders,” he added. “A collapse in the talks will mean even more carnage in a war that’s already one of the world’s deadliest.”— Lynsey Chutel, reporter based in JohannesburgPLAY, WATCH, EATWhat to CookJohnny Miller for The New York TimesIf you have leftover rice, put it to good use in this crispy rice salad with halloumi and ginger-lime vinaigrette.What to ReadSome standout newly published books include “The Rebel and the Kingdom,” about a secret mission to overthrow the North Korean government.What to Watch“All That Breathes,” a subtle, poetic documentary, follows three men trying to rehabilitate New Delhi’s birds of prey.TravelHow to spend 36 hours in Sydney.Now Time to PlayPlay the Mini Crossword, and here’s a clue: Get older (three letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Vivian Nereim will be our new Gulf bureau chief, becoming the first Times correspondent to lead a bureau in Saudi Arabia.The latest episode of “The Daily” is on the midterm elections in New York. Lynsey Chutel wrote today’s Spotlight on Africa. You can reach Amelia and the team at briefing@nytimes.com. More

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      After Months, a ‘New’ Dutch Coalition With the Same Leader and Parties

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      Mark Rutte, who has weathered a scandal and criticism for overstaying his welcome, will be prime minister for a fourth term.After nine months of negotiations among a group of fractious political parties after an election in the spring, the Netherlands finally has a new government.But it will not have a new leader; that position has been taken by Mark Rutte, who will be starting a fourth term as prime minister. It is a testament to his ability to weather crises and shake off a scandal that brought down his previous coalition last January — earning him the nickname “Teflon Mark.”Mr. Rutte’s party will be in coalition with the same two centrist parties and a more right-leaning Christian party that made up the last government.“It took too long,” Mr. Rutte acknowledged in brief remarks when announcing the formation of the four-party coalition that will be led by his Party for Freedom and Democracy. Mr. Rutte, who is known for his sober lifestyle, has been leading the Netherlands since 2010, and he has been criticized in recent years for clinging to power. He has said that he will lead the country with renewed “zeal.”The road to Mr. Rutte’s fourth term started after his previous cabinet resigned over a scandal involving overzealous tax authorities who had hunted down a number of innocent families, often after racial profiling, and accused them of falsely claiming child care benefits. Many were forced to repay huge amounts of money, reducing them to ruin.But Mr. Rutte faced perhaps the biggest crisis in his career as the country’s caretaker prime minister after the resignation of his cabinet amid widespread calls for systematic change in the Netherlands and for his departure from the political stage. But he weathered the criticism, and opposition from the far-right parties that have been gaining ground in the Netherlands in recent years; he won the March elections by a landslide.On Wednesday, Mr. Rutte and other leaders in his centrist coalition announced that an extra 35 billion euros, about $40 billion, would be allocated over the coming 10 years to help Dutch people make the transition to greater energy efficiency as part of efforts to tackle climate change.The government said it also planned to free up more money to address housing shortages, health care and education and more subsidies for child care, areas that Mr. Rutte’s previous administration had been criticized for cutting back.“Rutte came in as a budget hawk,” who trimmed government spending and increased some taxes, said Tom-Jan Meeus, a political columnist for the newspaper NRC Handelsblad. “Now he is advocating spending, also because that was the only way to get other parties on board with another term of him leading the government.”Talks with coalition partners dragged on for months, highlighting the increasing complexity of forming coalition governments in a changing political landscape with the emergence of populists and fringe parties. In the Netherlands and other northern European countries, traditional parties have lost lots of ground to numerous smaller parties, making it harder and harder to form compromise governments.The departure of Angela Merkel, who led Germany for 16 years, makes Mr. Rutte one of the longest continuously serving leaders in Europe. He shares that position with one of his political enemies, Viktor Orban, the prime minister of Hungary, who has been his country’s leader continuously since 2010.In June, Mr. Rutte challenged Mr. Orban to “leave the European Union,” after Hungary created a law that several other European countries said undermined the rights of L.G.B.T.Q. people. Mr. Orban later replied that he was persuaded that Mr. Rutte “hated” him. More

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      A Pro-Europe, Anti-Populist Youth Party Scored Surprising Gains in the Dutch Elections

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      For years, right-wing populists have been a driving force in the Netherlands. But this week a pan-European party called Volt shook things up.Lost among the mostly humdrum national elections in the Netherlands this week was the emergence of Volt, an anti-populist, pro-Europe party made up of students and young professionals that snatched three seats in the Dutch Parliament — the first national electoral success in its five years of existence.Volt wasn’t the only outsider group to win a seat or two in the elections. One politician arrived at Parliament driving a tractor with flashing lights to claim her newly won seat for a farmer’s party. Sylvana Simons, a former TV presenter, won a seat for “Bij1,” an anticapitalist party. A new far right, anti-immigrant party won four seats.Over the last two decades, however, it was populists and far right parties that played the insurgent role in Dutch politics, promoting anti-immigrant, anti-establishment and anti-European policies. While never a serious threat to seize power, in 2016 representatives of these parties initiated and won a referendum in the Netherlands on an E.U. trade treaty with Ukraine, temporarily halting the deal.This makes this week’s victory of newcomer Volt all the more remarkable. The party is staunchly pro-Europe, something that most traditional parties had thought was a complete turnoff for voters.“Most people of my generation grew up paying in euros and never having to think about crossing borders,” said Laurens Dassen, 35, the party’s Dutch leader. “For us, Europe is a fact of life.”Prime Minister Mark Rutte, whose center-right Party for Freedom and Democracy comfortably won the greatest number of seats for the fourth time since 2010, has had a tense relationship with Europe. Last year, for example, he upset Southern European countries when he refused to discuss financial support during the pandemic, and brought a biography of Chopin to the meetings because he wasn’t planning on talking anyway.The success of Volt in the Netherlands is all the more remarkable in that it isn’t even a Dutch party but an offshoot of a European movement, with 9,000 members scattered across Europe, and a few more in Switzerland and Albania. The main party was established in 2016 by Andrea Venzon, 29, an Italian living in London, and has a presence in every one of the 27 member states of the European Union.Caroline van der Plas, the leader of the BoerBurgerBeweging party, speaking with journalists from the booth of her tractor.Remko De Waal/Agence France-Presse, via Getty ImagesMr. Dassen, who was raised in Knegsel, a village near Eindhoven, played in the local youth orchestra and, after studying business management, went to work at ABN Amro bank checking processes for transactions in money laundering.But he was worried about the rise of populism and far-right parties, he said, and “in 2018 I read an article about Volt, decided to join and gave up my job some months later to really try to get the party started.”In the Dutch elections Volt piled up heavy vote totals in several Dutch student cities like Delft and Leiden, powered in part by a social media campaign and a broad network of volunteers.Another pro-European party, the D66, won an extra four seats this week, making it the second largest party in the parliament. Its leader, Sigrid Kaag, is a former United Nations special envoy for Syria and the outgoing foreign minister of trade and development.Because no party in the Dutch Parliament commands a majority, analysts said the idiosyncrasies of coalition building could bring Volt into the governing bloc along with Mr. Rutte and Ms. Kaag. Whatever the outcome of that horse trading, analysts think Volt’s future is bright in the Netherlands.“They could be big here and double their seats if they manage to go even stronger on the climate,” said Felix Rotterberg, a campaign strategist long affiliated with the social-democratic party PvdA. “Volt has the youth, and there will only be more of those in the future.”The party is on a winning streak in other parts of Europe, though nothing else is as high-profile as its victories in the Netherlands. Volt now has over 30 elected representatives across Europe, mainly in municipalities in Germany and Italy. But it has also won its first seat in the European Parliament, in the person of Damian Boeselager, 33.In coming months, Volt will be running candidates in national elections in Bulgaria and Germany, in a regional vote in Spain and in local elections in Italy. Following Brexit this year, its British members are starting a rejoin Europe campaign. Its leaders emphasize Volt’s pan-European character, which they say differentiates it from any other party in Europe.“Every one of our members, has direct voting rights at the European level, they are able to choose our board and influence our policies directly,” said Valerie Sternberg, 30, the party’s Germany-based co-president. “No matter where you live in Europe, even in Britain.” The party doesn’t have a youth organization. “Most of us are young ourselves,” she said.Ms. Sternberg said she cried “tears of joy,” when she learned about the success of Volt’s Dutch chapter, and said the party is now setting its sights on Germany, which is having national elections in the fall.“Our weak point is in rural areas across Europe, we need to get our message there, now populists are winning there,” she said. “We hope that Covid is showing people that isolation makes us weak and cooperation makes us stronger.” More

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      Dutch Prime Minister in Line for 4th Term Following Victory for ‘Center-Right’

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      Mark Rutte’s party convincingly won the Dutch elections. But wins by liberal-democrats can force him to compromise on his critical European stances.LEIDEN, the Netherlands — Mark Rutte, one of Europe’s longest-serving leaders, saw his Party for Freedom and Democracy win big in Dutch elections on Wednesday, setting him up for a fourth term as prime minister of the Netherlands.“We have to bring this country back to where it should be, as one of the best performing countries in the world,” Mr. Rutte said in a televised victory speech. “I have enough energy for even 10 more years.”Mr. Rutte, who describes his party as “center-right,” must now form a coalition with other parties to obtain a majority in Parliament. D66, a liberal-democratic party led by the former United Nations diplomat Sigrid Kaag, came in second. Mr. Rutte and Ms. Kaag are set to lead talks over forming a new government.Mr. Rutte’s party gained three seats as compared with similar elections in 2017, according to exit polls published by the public broadcaster NOS on WednesdayMr. Rutte and his cabinet had resigned in January over a scandal involving the tax authorities’ targeting of people, mostly poor, who had made administrative mistakes in their requests for child benefits. Many were ruined financially after being forced to pay back benefits to which they had been entitled.The scandal did not play a significant role during the campaign, however, nor did Mr. Rutte’s wavering polices for dealing with the coronavirus. He and his cabinet stayed on in a caretaker role until the election in order to manage the pandemic response.“This has been a corona election, and most of those in power have been rewarded,” said Tom-Jan Meeus, a political columnist for NRC Handelsblad. He said the dispersed wins by several right-wing parties combined did not go beyond their usual threshold of about 18 percent.“These elections are a victory for parties in the political middle, no change for the radical right and a loss for the left,” he added.Mr. Meeus said that he did not expect big shifts in policy, “but there will be more pressure on Mark Rutte to have more pro-European policies, from the parties he has to govern with.”Ms. Kaag, a career diplomat who speaks multiple languages including Arabic, is a staunch supporter of the European Union, as is her party. She served in the outgoing cabinet as minister of international trade and development.Last May, Mr. Rutte led a group of nations that refused blank-check payments for southern European countries to support their economies during the pandemic. He will now be forced to compromise on such stances if he enters into a coalition with D66.Voters in the Netherlands had cast their ballots in one of the first major European elections to take place during the coronavirus pandemic that has swept across the continent in successive waves.Neighboring Germany is also entering a packed election season, with national and state votes coming in a year that will bring to an end the 16-year chancellorship of Angela Merkel.Geert Wilders, a populist who has opposed immigration from Muslim countries and called for a ban of the Quran, saw his Party for Freedom lose two seats, though it remained the third largest.Another right-wing party, the Forum voor Democratie, led by Thierry Baudet, at the height of its popularity appeared ready to win 26 seats, according to opinion polls taken in 2019, but public infighting led some prominent politicians to leave and start their own party. Mr. Baudet’s party won six new seats for a total of eight, according to exit polls late Wednesday.The elections are among of the first to take place in Europe since the coronavirus broke out last spring, sparking repeated lockdowns across the continent as the death toll grew. Portugal voted in presidential elections in January, re-electing the center-right Marcelo Rebelo de Sousa for a second term in office.The pandemic has changed the usual dynamic of organizing elections in the Netherlands, but did not seem to affect turnout on Wednesday. Long lines of socially distanced voters stood waiting in the early afternoon in the historical center of Leiden, a university town near The Hague. At many polling stations voters were allowed to take home the red pencils they used to cast their ballots, a measure to help prevent the virus from spreading.“There is no way anyone can get corona with all these measures,” said Niels Romijn, a civil servant, as he entered a public library to cast his ballot. “Everybody was super chill,” he said, happily showing off his free red pencil. “Civil duty,” he said with a laugh.Polling stations had been open nationwide since Monday to allow vulnerable voters to avoid crowds. Voters over 70 were encouraged to vote by mail. And campaigning mainly took place on television, making it hard for voters to spontaneously confront politicians as is typical practice in the Netherlands.A temporary polling station in the Van Gogh Museum in Amsterdam.Jeroen Jumelet/EPA, via ShutterstockCoronavirus cases are once again surging in the Netherlands, prompting the authorities to warn of a third wave. Last year, it took Mr. Rutte’s government until November to ramp up testing, and now, the vaccination process has been advancing slowly.However, local issues, not the government’s handling of the coronavirus, dominated the election campaign.Broader policies put forward by Mr. Rutte, who has been in power since 2010, were also a focus on the campaign trail, with opponents questioning his government’s repeated cutbacks in health care, policing and other essential services.Mr. Rutte has ruled out any form of cooperation with Mr. Wilders’ Freedom Party, meaning that he will likely have to engage with other parties. Wednesday’s vote brings a record of 17 parties to the 150-seat Dutch parliament. More