The Economist this week

We have two covers this week. In Europe we pick over the wreckage of the worst start to a British government in memory. The 25-minute statement that Kwasi Kwarteng, Britain’s new chancellor of the exchequer, gave on September 23rd was meant to usher in an era of economic growth. Instead it triggered a crisis. As investors took fright, gilt yields surged, prompting the Bank of England to say on September 28th that it was ready to buy unlimited quantities of long-dated bonds in order to restore order to financial markets. Earlier, the pound had crashed to its lowest level ever against the dollar. Although sterling has since rebounded, markets still imply a 40% chance that it will reach parity. The economic and political damage is immense—and immensely frustrating. Mr Kwarteng and Liz Truss, the prime minister, are right to want to boost Britain’s anaemic rate of growth. They could have set out policies to do so. Instead, only three weeks into the Truss premiership, their growth agenda may already be damaged beyond repair.

In the rest of the world, we report on the formative experiences and present-day motivations of the world’s most powerful man. China’s president, Xi Jinping, has amassed more power and wielded it more ruthlessly than any Chinese leader since Mao Zedong. As his power has grown, so has China’s ambition. At the party’s five-yearly congress, starting on October 16th, he will almost certainly be given another term as supreme leader, possibly setting him up as ruler for life. Because understanding him has never been more important, The Economist has spent nine months interviewing dozens of people who have studied Mr Xi up close and from afar. The result is this week’s briefing and our new eight-part podcast series, “The Prince”, which paint an intimate picture of an enigmatic man whose plans hold troubling implications for China and the world alike.

Italy’s nationalist right triumphed at a general election. An alliance of three parties headed by Giorgia Meloni’s Brothers of Italy won a solid majority in both houses of parliament. Ms Meloni is all but certain to become Italy’s first female prime minister. Though her party has neo-fascist roots, she has tried to present a reassuring face to voters. She promises not to ban abortion or gay civil partnerships, and to stick broadly with Italy’s economic reform plans as agreed with the European Commission in Brussels. The markets seemed relaxed about her victory.

Markets took fright at the British government’s announcement of huge tax cuts. The cuts, laid out by Kwasi Kwarteng, the new chancellor of the exchequer, include reductions to payroll taxes, income taxes and stamp duty. Investors were perturbed by the amount of borrowing required to pay for the cuts, the biggest for half a century. Mr Kwarteng had disregarded common practice by not asking the Office for Budget Responsibility, an independent watchdog, for its assessment. The Treasury tried to reassure markets by announcing that he would unveil a medium-term fiscal plan, but not until November 23rd.