European

Sunny European city breaks that are cheaper than a big night out… with £14 flights, £8.50 dinner & JUGS of wine for £3

YOU don’t need a huge holiday budget to jet off on an amazing European city break.

With flights from £13.99 each way and hotel rooms from under £40 a night, a weekend escape to Spain, Italy, or France can easily cost less than a big night out at home.

Lyon is known as the food capital of France – and there are plenty of inexpensive dining options Credit: Getty
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Whether you fancy sipping €3 (£2.50) wine by the river in Porto, grabbing fresh beachside tapas in Malaga, or drinking in views from a 360-degree rotating bar in Tirana, you can do it all while on a budget.

Here are the best bargain European city breaks you can book right now for under £18 a flight, with ridiculously cheap hotel stays to match.

Lyon, France

Bag a cheap city break to Lyon where you can sip a drink on a floating bar at the River Banks, wander Renaissance-era cobblestone streets in Old Lyon, and sample some of the best food in France.

Known as the food capital of France, it isn’t hard to find somewhere good to eat here – even on a budget.

Head to Marronniers Street at lunchtime and take your pick of Bouchons, which are traditional, local restaurants serving high-quality authentic meals for as little as €10 (£8.50).

You can fly to Lyon with Wizz Air from £17.99 each way. Sometimes the return flight from Lyon can be as low as £13.99.

The People Lyon offers rooms from £37 a night. The building used to be a secondary school, and has now become a vibrant spot for people to sit and enjoy views of the Fourvière Basilica.

Milan, Italy

Milan makes for an affordable city break with £14.99 flights and plenty of free sights Credit: Getty

While famous for high fashion and luxury, Milan is surprisingly easy to do on a budget if you know where to look.

The city’s aperitivo culture is ideal for inexpensive light snacking and drinking – especially in the vibrant, canal-side district of Navigli.

Soak up world-class architecture for free by wandering through the mall Galleria Vittorio Emanuele II, admiring Sforzesco Castle, and of course taking in the views of the famous Milan Cathedral.

With super cheap flights, an affordable metro system and plenty to do for free once you’re there, you can book a city break to Milan knowing it won’t dent your wallet.

You can fly to Milan with Ryanair from £14.99 each way.

The Glam Hotel Milano has rooms from £50 a night, and is a modern hotel directly opposite the train station.

Malaga, Spain

Soak up the views of Malaga from the Gibralfaro viewpoint Credit: Getty

Far more than a typical getaway to the Costa del Sol, Malaga is a vibrant, sun-soaked city full of Andalusian culture.

Dining out is wonderfully cheap, with beachside bars serving fresh sardine skewers for only a few euros, alongside plenty of low-cost tapas spots.

Sightseeing costs next to nothing thanks to free Sunday afternoon entry to art museums and historic sites like the Alcazaba fortress.

Pair that with beach days and scenic hikes to the Gibralfaro viewpoint, and you’ve got yourself a very affordable few days away.

You can fly to Malaga with Wizz Air from £17.99 each way.

Rooms at funky capsule hotel Futurotel Malaga start from £59.

Porto, Portugal

Enjoy jugs of wine in Porto for as little as €3.50 in local neighbourhood tascas Credit: Getty

Cheap wine, unique architecture, amazing city viewpoints – Porto is the ideal pick for a walkable city break packed with affordable things to do.

Spend a day strolling through the Ribeira District where medieval colourful houses and charming cafes line the riverfront.

Another top free sight is to watch the sun set behind the huge steel Dom Luis I Bridge from the Jardmin do Morro, to the sound of local street musicians.

As for cheap wine, pop into neighbourhood tascas for a bite to eat and a drink – here you can enjoy local wine by the jug for €3.50 (£3)!

You can fly to Porto with Ryanair from as little as £13.99 each way.

The ever-reliable ibis budget Porto Gaia has rooms from £55 a night.

Tirana, Albania

Tirana in Albania is fully of cheap and quirky things to do, including a bunker turned underground art museum Credit: Alamy

Tirana is easily one of Europe’s most underrated and budget-friendly capitals, buzzing with pastel-painted buildings and an amazing coffee culture.

You can explore giant, Communist-era nuclear bunkers turned underground art museums at Bunk’Art, or catch a cheap cable car ride up Mount Dajti for sweeping views across the valley.

Nights are best spent in the trendy Blloku district – a neighbourhood once off-limits to locals as it was an restricted zone for communist regime leaders – now it’s open to everyone with lively cocktail lounges and traditional grill houses that serve up dishes and drinks for pocket change.

You can fly to Tirana with Wizz Air from £17.99 each way.

The four-star Sky Hotel Tirana has rooms from £38 per night, and is home to the largest rotating bar in the Balkans.

The revolving rooftop bar completes a 360° turn every hour, giving you sweeping city and mountain views alongside your meal.

Dublin, Ireland

Take a quick weekend break to Dublin with a £14.99 Ryanair flight Credit: Getty

When you can hop over to Dublin on a £14.99 hour-long flight, this might just be the quickest and easiest city break to tick off in a weekend.

While Temple Bar is certainly worth a visit to walk its pretty cobbled streets and grab a pic outside the famous red pub, save your pint of Guinness for elsewhere.

Head to South William Street to find cheaper beer at spots like Pygmalion and Grogan’s, where all the atmosphere comes from taking your pint back out into the street to listen to buskers.

For an affordable yet delicious lunch, head to Pablo Picante. Dublin has a huge burrito culture, and this Mexican chain offers well-stuffed wraps that will keep you full all day from €10.75 (£9.20).

You can fly to Dublin with Ryanair from £14.99 each way.

Stay at the Wetherspoons-owned Keaven’s Port Hotel from £82 per night. The hotel sits on Camden Street, which packed with some of the city’s best bars, pubs and clubs.

Alicante, Spain

Alicante in Spain sees 300 days of sunshine per year Credit: Getty

With year-round warmth and 300 days of sunshine per year, Alicante is a solid bet when it comes to booking a sunny Spanish city break.

Spend your days wandering the whitewashed, flower-filled lanes of Barrio Santa Cruz, or taking in sweeping Mediterranean views from the hilltop Santa Barbara Castle for free.

Eating well can be remarkably cheap if you visit Mercado Central for fresh tapas, or tuck into authentic regional paellas at backstreet neighbourhood bars.

You can fly to Alicante with Ryanair from £14.99 each way.

You can book a stay at the Travelodge Alicante Puerto from £39 per night, which is conveniently located a short walk from Alicante Harbour and the Explanada de España.



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EasyJet to axe all flights from major European airport this year

An EasyJet airplane parked at a gate at Oslo Airport.

EASYJET is set to pull out of a major European airport, cancelling all flights.

The budget airline announced earlier this week that it would be ending all flights from Leeds Bradford Airport in January 2026.

Harstad-Narvik Airport with its control tower and terminal buildings, surrounded by green grass and forested mountains under a cloudy sky.
EasyJet is cancelling all flights to Oslo International Airport Credit: Alamy

However, it is also cancelling its remaining flights from a major airport in Norway.

easyJet currently operates flights between Oslo Airport and Manchester; however these will be scrapped later this year.

According to TravelMole, this works out to around 11,000 one-way seats a month, or 61 flights from the airport.

Having already axed all routes to Oslo from Paris and Milan, the Manchester route will follow suit by October 23.

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This is after eight years of operating to the Norwegian airport.

This just leaves Tromso and Harstad-Narvik as easyJet‘s only airports in Norway.

An easyJet spokesperson told Sun Travel: “Following a review of the route, easyJet can confirm that from 23 October it will no longer operate flights between Manchester and Oslo.

“We concentrate our efforts on maintaining and developing routes which prove most popular with customers, focusing on offering routes with the greatest demand, and we continue to serve customers in the UK with flights to Tromso and Harstad-Narvik from airports across the UK including London Gatwick, Bristol, Manchester and Edinburgh.”

An EasyJet airplane parked at a gate at Oslo Airport.
EasyJet is axing a number of routes across Europe this summer Credit: Alamy

Other airports that easyJet has pulled out of recently is Istanbul Airport back in March, as well as Milan Bergamo and Stockholm Arlanda last year.

It comes just days after easyJet confirmed that they would be pulling out of Leeds Bradford Airport.

After 16 years of flying to the UK airport, all flights will stop from January 5, 2026.

Routes from the airport currently include Barcelona, Majorca and Malaga, along with Paris, Geneva and Belfast.

An easyJet spokesperson said: “Our focus is on maintaining and developing routes which prove most popular with customers.”



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Portugal’s ‘best-kept secret’ nicknamed the European Hamptons where Prince Harry & Meghan Markle go on holiday

PRINCE Harry and Meghan Markle are returning to the UK – but that’s not the only tie they have to Europe.

The couple are rumoured to have a luxurious bolthole in what is called the ‘European Hamptons‘.

Prince Harry and Meghan Markle have a coastal retreat in Portugal Credit: Splash
The quiet coastline near Comporta and Melides has some of the best beaches in Portugal Credit: Alamy Stock Photo

Found in Melides in Portugal, the luxurious CostaTerra is a 722-acre private community with high-profile and celebrity home-owners.

The royal couple reportedly paid £6.3million for a holiday home on the resort in 2023.

The golf and leisure complex is found between the coastal villages of Comporta and Melides which are 90 minutes south of Lisbon.

CostaTerra describes itself as ‘an ideal luxury getaway for families seeking an authentic lifestyle-focused coastal retreat.’

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It has an 18-hole golf course and offers lots of activities for its homeowners like yoga, surfing, sailing, horse riding and bike riding.

One Sun Writer who visited described it as a “well-kept secret” – and it’s also home to one of the most beautiful beaches in Europe called Galé Fontainhas Beach.

The materials contain iron oxide, which gives them their distinctive reddish-orange colour.

The beach cliffs, reaching over 50 metres in height, and the waters are often clear.

One visitor wrote on a Tripadvisor review: “A real hidden gem. Beautiful clean beach, crystal clear water, just about right waves to have fun in the water, magnificent views from the top of the rocks.”

Another is Gale Beach which has carved sandstone cliffs that one visitor said “could have been cut straight out of the Grand Canyon.”

The region is considered the European Hamptons Credit: Alamy
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Prince Harry and Meghan Markle aren’t the only members of the royal family to be drawn to this part of Portugal.

Princess Eugenie and her husband Jack split their time between the UK and CostaTerra where they also own a house.

Jack actually works in marketing and sales at a private resort itself.

Both Shakira and Madonna have reportedly both enjoyed stays at CostaTerra too.

The CostaTerra Club has is considered a coastal retreat in Portugal Credit: costaterraclub.com
The CostaTerra Club has activities like horse riding and yoga Credit: costaterraclub.com

When one Sun Writer visited the Alentejo coast, she discovered a flamingo-filled lagoon, beautiful rice fields and vineyards.

There are also charming village streets without a single tourist and, perhaps best of all, stunning secret beaches only the locals knew about

Melides has been in existence for more than 500 years and for much of that time it has been a quiet hamlet with a white-cobbled central square



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Family travel advice amid new European entry rule confusion for kids under 12

BRITS heading to Europe now have to go through the new Entry/Exit System (EES), but some parents have been unclear on whether kids have to use it too.

Some families hadn’t realised that children under 12-years-old need certain biometrics taken at the border.

Some parents were unaware their children are required to have their face scanned for EES Credit: Alamy
It has resulted in longer delays at the border Credit: Alamy

On ABTA, the confirmed advice reads: “People of all ages will need to go through the EES checks.

“Children under 12 will not need to provide fingerprints, but they will need to have a facial scan taken.”

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This is where the confusion lay as some parents believed their younger children were exempt from checks altogether.

Any Brit over the age of 12 is required to have both their fingerprints taken and their face scanned for registering.

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If you are heading abroad as a family, it’s important to leave extra time for EES checks as delays have been reported to be up to six hours.

Some passengers have even missed flights as a result.

Passengers returning to the UK from Athens in June were still in the airport queuing through passport control and missed their flight to London Luton.

One holidaymaker told the BBC there had been a “mega queue” at Athens International Airport.

Hundreds of people were waiting at both security and passport control and the plane was forced to leave without them.

Something else to be aware of if travelling as a parent with a different surname, as this can result in airport delays.

Children don’t have to have their fingerprints taken
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Tough rules at the border are in place to prevent child trafficking and parents could be asked for proof of relation.

Along with valid passports, it’s advised to keep important documents to hand, these include;

  • A sealed copy of any Court Order you have permitting you to travel alone.
  • A consent letter from the parent(s) or holders of parental responsibility not accompanying you.
  • Your child’s birth or adoption certificate.
  • Your marriage certificate or Decree Absolute if you were married to the non-accompanying parent but are no longer married.

While we can’t guarantee that it will make journeys any quicker, Sun Travel do have suggestions on how to make it a bit more bearable with kids.

The first is bring entertainment, it could be worth setting the kids up with an iPad or something that will keep them occupied.

Take advantage of the priority lane if there is one for families – usually this is for those with young children.

For more tips on how to avoid EES chaos at the airports, head here.



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The cheap European hotels PERFECT for younger kids with buffets, kids’ clubs, splash pools & waterparks

BEFORE I had kids, my holiday checklist was blissfully simple: how far is the pool, is it near a beach and, more importantly, how far will I have to carry four pints back from the bar?

Now I’m a dad to two kids under two, the goalposts have been shifted completely.

Holidays with toddlers are far removed from my single days – instead looking for short transfers, simple buffets and of course a great swimming pool or water park Credit: Trip Advisor/Atlantica Mikri Poli Rhodes Management
I’ve tried and tested all these resorts and they tick the boxes Credit: Rob Brooks

My checklist now demands shallow splash pools, food they’ll actually eat instead of throwing it on the floor, separate bedrooms so my wife and I don’t have to sit in the dark from 7.30pm, and enough safe green space for them to burn off every ounce of relentless energy.

And a toddler-friendly holiday starts long before you reach reception – a brilliant kids’ pool means nothing if you’ve suffered a four-hour flight delay followed by two hours trapped on a sweaty transfer coach, or if you land only to realise the nearest shop selling nappies is three towns away.

That’s why all six of these properties hit my strict travel criteria: easy UK flight links, short airport transfers and pushchair-friendly resorts packed with local supermarkets and bakeries.

Having personally stayed at all six with my own young family, these are the ones that actually deliver for babies, toddlers, and weary parents.

6. Zafiro Ca’n Picafort, Majorca

There are multiple swimming zones, including two brilliant splash pools that kept my toddler entertained for hours Credit: Trip Advisor/Zafiro Ca’n Picafort Management
The main buffet includes all the essential toddler safety nets including plain pasta and chip Credit: Trip Advisor/Zafiro Ca’n Picafort Management

This was one of the single easiest stays I’ve managed with a toddler because it hits two absolute non-negotiables: elite pool options and hassle-free dining.

There are multiple swimming zones, including two brilliant splash pools that kept my toddler entertained for hours without us having to camp out in one noisy, crowded area all day.

The food options here are a massive win for parents too.

While the barbecue station serves up proper, high-end grilled meats for adults, the main buffet includes all the essential toddler safety nets including plain pasta and chips (when your child has rejected every new food offered to them, a familiar bowl of penne is worth more than a Michelin star).

The real insider perk here though is the low-rise apartment layout, thanks to the separate living room and a private ground-floor garden terrace.

This means you can put the kids down for bed, step outside with a glass of wine, and ACTUALLY enjoy your evening without whispering in the dark.

Ca’n Picafort itself is flat, exceptionally pushchair-friendly, and sits just a manageable 50-minute drive from Palma Airport.

I spotted a five-night, self-catering stay here from £233pp, flying direct from Bristol on September 30.

5. H10 Suites Lanzarote Gardens, Lanzarote

At H10 Suites Lanzarote Gardens, you can pre-book potties, baby baths, and stair gates straight to your room Credit: Trip Advisor/H10 Suites Lanzarote Gardens Management
The pools feature gentle, splashy slides rather than terrifying drops designed for teenagers Credit: Trip Advisor/H10 Suites Lanzarote Gardens Management

Travelling with a baby often feels like managing the logistics of a small company, but H10 Suites Lanzarote Gardens completely removes the heavy lifting.

You can pre-book potties, baby baths, and stair gates straight to your room, meaning half your bulky nursery gear stays at home.

The absolute highlight for us was the hotel’s specialised baby club which lets parents stay with their toddlers.

This is a game-changer for toddlers who want access to brand-new toys and soft play, but aren’t quite old enough to be dropped off with strangers.

The pools feature gentle, splashy slides rather than terrifying drops designed for teenagers, and the location in Costa Teguise is ideal.

It’s completely flat and surrounded by supermercados for emergency nappy runs.

Not only that, but it sits just a painless 20-minute transfer from Arrecife Airport – meaning you go from baggage reclaim to the poolside before a meltdown hits.

You can lock in a five-night holiday here with breakfast included from £333pp, flying direct from London Stansted on September 30.

4. Atlantica Mikri Poli Rhodes, Rhodes

Atlantica Mikri Poli Rhodes is spread across five pools Credit: Trip Advisor/Atlantica Mikri Poli Rhodes Management
The waterpark is lively if parents fancy a go on the waterslides every now and then Credit: Trip Advisor/Atlantica Mikri Poli Rhodes Management

Some massive family resorts look incredible in brochures but feel like an overcrowded theme park the second you walk through reception.

The Atlantica Mikri Poli in Kolymbia completely avoids that trap by being across five distinct swimming spots.

This includes a dedicated toddler splash park and a quiet, adult-friendly pool.

Because the resort footprint is so spread out, we could easily move between the lively waterpark sections and the quiet, shaded gardens depending on where we were in the daily nap cycle.

The top-tier insider trick at this hotel is the location of the main playground – it sits directly adjacent to the outdoor evening entertainment stage, surrounded by shaded seating.

You can sit back with a drink from the all inclusive bar while keeping direct line-of-sight on your toddlers as they burn off their final energy reserves before bed.

Transfer-wise, it’s a smooth 25-minute drive from Rhodes Airport, entirely cutting out long coach tours across the island.

I found a five-night all inclusive package from £443pp, flying direct from London Luton on September 29.

3. Iberostar Selection Albufera Park, Majorca

Iberostar Selection Albufera Park is right by the beach Credit: Trip Advisor/Iberostar Selection Albufera Park Management
All of these resorts have enough to keep kids busy and parents chilled out Credit: Trip Advisor/Iberostar Selection Albufera Park Management

If you want a property that makes younger children feel like the entire resort was designed specifically for them, Iberostar Selection Albufera Park is it.

Even on arrival, you will spot the soft play slide directly inside the reception lobby – a small detail that perfectly sums up the hotel’s family-first ethos.

The children’s buffet section is built at eye-level for toddlers, allowing them to actually see and choose their own food.

There’s even a dedicated fresh fruit market counter to keep things healthy.

The ultimate parent perk here is direct access to Playa de Muro beach.

The sand is powder-soft and the walk into the sea slopes so gently that the water stays ankle-deep for yards out, making it infinitely safer for paddling with a one-year-old than steep, pebbly coastlines.

The transfer from Palma takes around 50 minutes along direct main roads, dropping you straight into one of the island’s calmest family pockets.

I clocked a five-night all inclusive stay here from £563pp, flying direct from Bristol on September 30.

2. Mediterranean Palace Hotel, Tenerife

I loved the big splash park at Mediterranean Palace Hotel Credit: Trip Advisor/Mediterranean Palace Hotel Management
The hotel kids’ club is fully supervised Credit: Trip Advisor/Mediterranean Palace Hotel Management

The Mediterranean Palace earns its spot on my shortlist purely for its world-class facilities.

Its supervised kids’ club includes a massive soft-play arena, cinema room, and dedicated baby-changing bays.

Not only that, but the outdoor splash park gives toddlers a safe way to cool off without needing to tread water in a deep pool.

This property is my absolute go-to recommendation for winter sun – the hotel sits right on the border of Playa de las Américas and Los Cristianos, giving you direct access to miles of flat, paved seafront promenade.

My best insight for parents here is the tactical “nap walk” route.

You can wheel the pushchair straight out of the hotel gates onto a wide, traffic-free coastal path lined with cafes, pushing the buggy over smooth paving until they fall asleep, while you grab a coffee in the sun.

Best of all, Tenerife South Airport is barely a 15-minute taxi ride away.

You can book a five-night stay with breakfast included from £588pp, flying direct from Liverpool on February 1 next year.

1. Sea Club Mediterranean Resort, Majorca

Sea Club Mediterranean Resort’s accommodation is arranged in low-rise, Mediterranean-style villas Credit: Trip Advisor/Sea Club Mediterranean Resort Management
Parents will love the resort just as much as the kids Credit: Trip Advisor/Sea Club Mediterranean Resort Management

If you want the freedom of a self-catering apartment combined with full resort facilities, the Sea Club is a massive win.

Instead of one sterile, towering hotel block, the accommodation is arranged in low-rise, Mediterranean-style villas spread across extensive, tree-lined gardens.

The stand-out feature for parents here though is the layout of the one-bedroom apartments.

The separate living area is properly partitioned from the main bedroom.

This means once the kids are asleep at 7:30pm, parents can make the most of the full lounge and private balcony WITH the lights on (no more hiding in the bathroom with a book).

Port d’Alcudia is exceptionally flat, packed with pharmacies and supermarkets, and features a huge, sheltered bay with crystal-clear, shallow water.

Sitting a comfortable 45-minute transfer from Palma Airport, it delivers a high-spec family break for an absolute bargain price.

I spotted a five-night self-catering stay from just £208pp, flying direct from Birmingham on September 27.

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Fears of more easyJet chaos after 100 flights cancelled across six European airports

A MAJOR budget airline cancelled around 100 flights at a number of airports over the weekend – and there could be more to come.

Travellers are being warned that there could easyJet flight cancellations due to strikes, in the next two weeks.

Crowded transport hub in Paris, France, with travelers queuing with luggage under a modern glass canopy.
There could be more easyJet cancellations following strikes this past weekend Credit: Getty

Between August 15 and 16, an initial walk out led to nearly 100 flights to and from France cancelled, impacting thousands of passengers.

And there is the possibility that cabin crew could start a number of strikes again over the coming days.

A notification for strike action remains in place until September 2.

The notice gives workers at the airline the option to strike with 48 hours notice.

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With the strike notice still in place for the couple of weeks, travellers are being warned that the chaos might not yet be over.

If further strike action is called, it is expected to take place on weekends as this will create the most disruption.

The previous strikes impacted all of easyJet’s bases in France including Paris Orly, Paris Charles de Gaulle, Lyon, Nice, Nantes, and Bordeaux.

According to The Connexion, no further strike dates have been confirmed at the moment.

An EasyJet Airbus A320 commercial airplane on a runway at Vaclav Havel airport.
The airline had to cancel around 100 flights Credit: Getty

Three unions are involved in the action, which has been called over poor working conditions and uncooperative management.

The Connexion added that easyJet has offer alternatives to all passengers impacted but the strike action over the past weekend, including other flight options.

Due to the strike action being called by easyJet’s staff it cannot be classed as ‘extenuating circumstances’ and as a result passengers should receive compensation and refunds.

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European bond yields hit multi-year highs on Iran war inflation fears

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Government borrowing costs are surging on both sides of the Atlantic.


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Long-term bond yields across Europe’s biggest economies hit multi-year highs on Tuesday, while the yield on 30-year US Treasuries rose to its highest level in nearly two decades.

The sell-off came as hopes of a swift resolution to the Iran conflict faded, pushing oil prices higher and renewing concerns about persistent inflation. International benchmark Brent crude traded at nearly $91 a barrel on Tuesday morning amid heightened tensions in the Middle East.

“The breakdown in US-Iran peace talks has increased the risk that energy prices remain elevated for the rest of the year, which could keep inflation higher than expected and increase the chance of central banks raising rates,” Richard Carter, head of fixed interest research at Quilter Cheviot, told Euronews Business.

Investors are increasingly betting on tighter monetary policy in the eurozone, with the ECB deposit rate expected to reach 2.76% by March 2027, up from 2.25% currently.

According to Trading Economics, investors see a 90% probability of a September rate hike by the European Central Bank (ECB).

At the same time, in the US, the 30-year Treasury yield reached 5.33%, a level not seen since 2007. In the UK, the 30-year gilt traded at 5.85% — its highest level since May 2026.

As government bonds came under renewed selling pressure globally, France’s 10-year bond yield rose to 4.10% on Tuesday morning, its highest level since June 2009.

Germany’s 10-year Bund yield, the benchmark for the eurozone, climbed above 3.25%, reaching its highest level since March 2011.

France’s 30-year bond yield reached its highest level since 2008, amid a global bond sell-off and growing concern about the country’s 2027 budget negotiations and next year’s presidential election. Germany’s 30-year bond yield rose to 3.78%, its highest level in 15 years.

Rising long-dated bond yields are not driven solely by expectations of higher interest rates and inflation fears.

“Investors are concerned about the scale of borrowing in major economies including the UK, France and Japan,” Carter continued, adding that “significant volumes of AI-related bond issuance have also added to supply, creating further pressure on prices and pushing yields higher.

Higher borrowing costs put pressure on economies and raise financing costs across a range of investments.

As government debt offices constantly raise money through bond markets, the effect of the jump in yields will gradually feed into their borrowing costs as they refinance maturing debt.

Italy is expected to refinance maturing debt equivalent to 17% of GDP in 2026, according to S&P Global Ratings, compared with 12% for France and 7% each for Germany and the UK.

For now, bond markets are likely to remain sensitive to developments in both geopolitics and economic data,” Carter said.

He added that bonds remain attractive to investors because yields are historically high and comfortably exceed inflation, offering a positive return after price rises are taken into account.

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Five European islands you should swap for a holiday on the mainland

IT goes without saying that much of what an island holiday needs arrives by boat or plane.

The beer, the sunbeds . . . the bloke fixing the air con.

The trick here is that Halkidiki barely feels like the mainland Credit: Alamy

And holidaymakers end up paying the difference.

Holiday comparison site TravelSupermarket has found five island faves where a week away can cost hundreds of pounds per person more than it does on the mainland coast of the same country.

Here, we list five island-to-mainland swaps that will save you a fortune.

MADEIRA for the ALGARVE – Save £344pp

Madeira is all verdant forests, cliffs and volcanic drama, and it charges for the privilege Credit: Getty
What the Algarve has that competes is the same coastal theatre with sandy beaches Credit: Poike

MADEIRA is all verdant forests, cliffs and volcanic drama, and it charges for the privilege.

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What the Algarve has that competes is the same coastal theatre with sandy beaches.

The Seven Hanging Valleys Trail scrambles along golden cliffs between Praia da Marinha, regularly voted one of Europe’s best beaches.

And don’t miss the Benagil sea cave with its famous skylight.

Base yourself in Lagos for the Ponta da Piedade arches, or Albufeira for waterparks, dolphin-spotting boat trips and a full strip of restaurants.

IBIZA for COSTA BLANCA – Save £336pp

Nowhere can match Ibiza’s superclub DC10, but the Costa Blanca gets closer than you would think Credit: Getty Images
Alicante’s old town, El Barrio, runs tapas crawls into club nights that finish at 3am, and the city has two miles of golden sand at San Juan Credit: Getty

NOWHERE can match Ibiza’s superclub DC10, but the Costa Blanca gets closer than you would think.

Alicante’s old town, El Barrio, runs tapas crawls into club nights that finish at 3am, and the city has two miles of golden sand at San Juan.

Benidorm, half an hour up the road, is a 24-hour operation with cabaret, karaoke and Blue Flag beaches.

For the stunning holiday snaps, there’s the whitewashed coastal towns of Altea as well as Calpe, where the 332m Penon de Ifach rock rears out of the sea.

SKIATHOS for HALKIDIKI – Save £180pp

The picturesque isle of Skiathos Credit: Getty

THE trick here is that Halkidiki barely feels like the mainland.

Sithonia’s pine-backed coves, including the turquoise waters of Kavourotrypes and the fjord-like bay at Porto Koufo, are a match for anything on the isle of Skiathos.

Kassandra has big organised beaches and hotels, with the northern resorts the easiest to reach from Thessaloniki airport.

Check out the boat trips that run along the monastery coast of Mount Athos.

MENORCA for COSTA BRAVA – Save £163pp

Menorca is known for its calas, small sheltered coves where a scoop of sand sits between pine-topped cliffs Credit: Getty
The Costa Brava has them too, along the Cami de Ronda Credit: Getty

MENORCA is known for its calas, small sheltered coves where a scoop of sand sits between pine-topped cliffs.

The Costa Brava has them too, along the Cami de Ronda, the old smugglers’ path that links cove after cove.

Aiguablava and Sa Tuna below Begur are the postcard ones, and the clifftop walk between Calella de Palafrugell and Llafranc takes 20 minutes.

Add the medieval walls at Tossa de Mar, the Dali Theatre-Museum at Figueres and tapas in Girona, and there’s more to do on the mainland on less sunny days.

MAJORCA for COSTA DORADA – Save £153pp

Majorca has been a popular family hotspot for decades, with shallow bays, kids’ clubs and waterparks Credit: Getty
The Costa Dorada does the same job for less, and it has PortAventura World Credit: Portaventura Park

MAJORCA has been a popular family hotspot for decades, with shallow bays, kids’ clubs and waterparks.

The Costa Dorada does the same job for less, and it has one thing the island can’t match — PortAventura World.

It boasts everything from the eight-loop Dragon Khan and the 100m-plus drop Hurakan Condor, to Ferrari Land and the Caribe water park.

Plus, Salou has two long sandy beaches and a lively strip, Cambrils next door is the seafood port, or check out Tarragona’s Roman amphitheatre by the sea.

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Major European airport reopens after more than a week of chaos

A EUROPEAN airport has finally restarted flights after a week of chaos – but passengers are still being warned of cancellations.

Catania Airport in Sicily, Italy, was forced to cancel hundreds of flights last week as well as close for a number of days due to Mount Etna erupting.

Mount Etna has been erupting for over a week and causing travel chaos Credit: Splash
While flights have restarted, there are still lots of cancellations Credit: Reuters

Today, the airport is open again, however flights are still being cancelled.

There are currently no restrictions on departures, but only five flights are allowed to arrive at the airport per hour.

And despite departure flights going ahead, there are already several delays this morning affecting Ryanair, easyJet and British Airways passengers.

In the latest statement on the airport’s website, it says: “Due to Etna’s eruptive activity and the associated release of volcanic ash into the atmosphere, the airspace corresponding to Sectors B1 and B2 has been closed.

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“Arriving flights are limited to 5 aircraft per hour until 2:00 PM today, Monday 17 August.

“There are no restrictions on departures.

“Passengers are kindly advised to check the status of their flight with their airline before heading to the airport. Further updates will follow in the coming hours.”

In the latest update, at 7:09am this morning a new volcano vent opened, creating a new lava flow.

The chaos has been causing problems for over a week Credit: Splash
Two passengers were due to fly back to London but have been stuck in Sicily since August 11 Credit: SWNS
Evgenia Filimianova has also been left stranded Credit: SWNS

“Intense explosive activity” also resumed at the summit crater, with an ash plume rising a few kilometres, according to Volcano Discovery.

Some passengers have been left stranded during the volcanic activity.

Barbara Krmelj, 35 and partner Roy Barone, 46, were due to fly back to London on August 11 but their flights were cancelled.

As a result, the duo had to take an extra week’s leave from their jobs and while they have been given new flights, they anticipate that they too will be cancelled.

The couple, who said they are likely to have been left £1,000 out of pocket, added: “We can’t enjoy all the beauty around us as we feel trapped on the island.”

Another passenger, Evgenia Filimianova, 39, flew to Sicily from London to attend a friends wedding but their return flight was cancelled.

Evgenia said: “It feels like there is no way out. Emotionally, it’s not easy – it’s stressful and tiring and we weren’t prepared for it.”

Last week, the volcanic ash also caused issues at Malta International Airport.

What does the disruption due to Mount Etna mean for passengers?

Anton Radchenko, air passenger rights expert and founder and CEO of AirAdvisor, explained what the disruption means for customers…

“When volcanic ash closes airspace, airlines will usually class it as an extraordinary circumstance, which means fixed cash compensation is unlikely.

“However, I would urge passengers not to confuse ‘no compensation’ with ‘no rights’.

“The airline must still offer a refund or rerouting and provide reasonable meals, accommodation and transport while passengers wait.

“If you still need to get home, do not automatically accept a refund.

“Once you accept it, the airline’s rerouting and care obligations will normally end.

“Ask for the earliest reasonable alternative and, if another airline can get you back significantly sooner, ask to be transferred to that service.

“If you have to pay for reasonable essentials because the airline fails to provide them, keep every itemised receipt so you can seek reimbursement.”

This is supported by the UK Civil Aviation Authority’s current cancellation guidance which you can find here.



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Amy Hunt: British sprint star enters stardom with quadruple gold at European Athletics Championships

Hunt is not afraid to voice her bold ambitions.

Announcing that she “wants it all” before these championships, Hunt, even in these early stages of her senior career, has demonstrated a propensity to thrive on major stages, and under ever-increasing expectation.

“Four golds was the dream and perhaps dreams do come true,” said Hunt.

“It’s so beyond the bounds of my dreams that I’m just euphoric. I can’t believe it’s happening.

“I think it will sink in later, maybe on the podium. I’m just so proud of myself and the way I’ve handled this week.”

The Briton has already spoken about the big goal: repeating her sweep of the sprint golds at the Los Angeles Olympics in 2028.

Her playlist – she creates one for every major event – is already being built as she begins to visualise how that might feel.

She will be well aware how much work there is to do. So far this year, she ranks 14th-fastest worldwide in the 200m, and 25th in the 100m. Asher-Smith’s British records, at 21.88 and 10.83 seconds respectively, remain untouched since 2019.

The next opportunity for global honours, beyond the inaugural World Ultimate Championships in September, will arrive at next year’s World Championships in Beijing.

And, once the dust has settled on a momentous week, Hunt will set about translating continental domination to glory on the sport’s biggest stages – just as British team-mate Asher-Smith achieved following her European treble in 2018.

“Amy has already won world silver, but she was not a favourite then,” Jackson said.

“Now, it’s a big change. She is a champion and she has to go and take on the best in the world.

“Is it going to be easy? No. But this will fill Amy with confidence. She will be on start lines trusting her ability is great, and I’m hoping that she will go from strength and strength.”

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European Athletics Championship: Great Britain win mixed 4x100m relay for Hunt’s fourth gold

Jeremiah Azu, Dina-Asher Smith, Zharnel Hughes and Amy Hunt combine to win gold for Great Britain in the first mixed 4x100m relay at the European Athletics Championships.

Hunt became the first athlete to win four European golds at one championships while Dina Asher-Smith secured a record eighth European career title.

READ MORE: Athletics on BBC Sport

Available to UK users only.

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I visited the European island with TUI flights, kissing bridges and underwater sea walks

WHEN twenty-something me holidayed in Ayia Napa, ­gorgeous scenery and chic cuisine were the furthest things from my mind.

I was firmly focused on foam parties and feral antics.

The beautiful beach at Petra tou Romiou Credit: Getty
A divine bungalow at the Mare Ayia Napa Credit: supplied

Now, 15 years on, I’m back to savour a different side to the party town and see what the rest of Cyprus has to offer.

And while there were still plenty of excited Gen Z holidaymakers on my Tui flight from Gatwick, this trip was to be a much more grown-up affair.

Luxury, relaxation and an itinerary younger me simply wouldn’t recognise.

Ayia Napa’s famous party strip and old fishing port looked very similar as we travelled from the airport, but arriving at the 5* Mare Ayia Napa could not have been more different from my youthful experiences.

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A ten-minute drive out of town, Mare sits on the edge of the Cape Greco national park, with its turquoise waters, nature walking trails and limestone sea caves.

The resort resembles a sun-drenched Cypriot village with low-rise, whitewashed bungalows featuring terracotta roofs set among winding stone paths.

Young me made do with a hostel. This time, I walked into a modern luxe dream.

Think muted tones, Molton Brown toiletries and Nespresso on tap.

Some rooms have access to pretty gardens, while others have swim-up pools or even a private place to take a dip.

After a long day travelling, I hit the hotel’s adult-only Sky Lounge rooftop bar to watch sunset.

It delivered stunning beachfront views as well as a potent Paloma cocktail of tequila and grapefruit soda. A girl still needs her treats.

On that subject, the all-inclusive hotel has eight restaurants to enjoy, ranging from poolside sushi and charcoal grilled kebabs to Mediterranean meze and dry-aged steaks.

There is also a splash park with slides for the kids, and adults can escape to their own pool with plush cabanas.

By day, there’s a sandy and quiet Blue Flag beach in a calm bay that’s perfect for paddling kids and paddleboarding.

With Tui’s extensive range of tours, there’s the option to explore parts of Cyprus younger me would never have considered.

A Coastal Landmarks trip takes us through the stunning Cape Greco park where we admire clifftop views over the caves and the tiny white-washed Agioi Anargyroi church perched over the water.

The view from the infinity pool at Aphrodite Hills Credit: All rights reserved
Becky Parkinson at Aphrodite’s Rock Credit: Becky Parkinson/The Sun

Legend has it that if you kiss while making a wish at the Lovers’ Bridge — a natural limestone arch spanning the sea — your dreams will come true.

While I didn’t have anyone to pucker up with, the view alone was worth it.

After a leisurely stop at Cyprus’s most famous stretch of sand, Nissi Beach, for a drink and quick dip, we move on to the Ayia Napa Sculpture Park.

I adored the hundreds of statues, mythical beasts and art installations right next to the Cacti Park, also perfect for a stroll.

We end the day with coffees and cocktails at a beachside taverna in Protaras.

Called Fig Tree Bay, it is named after the single tree that has stood near the beach since the 17th century.

Next day we up the ante on the adventure front with some unique experiences that would normally be the reserve of qualified scuba divers.

Underwater Sea Adventures on Ayia Triada beach take you out to a purpose-built pontoon positioned over a reef.

There are two unusual ways to observe it. On the seabed walk, you wear a huge “space age” helmet that is supplied with fresh air pumped down from the surface via a hose.

Once on, your head and hair stay dry — you can even keep glasses on — while you follow a guided trail along the seabed, little fishes dart in and out.

Or take the pace up a bit with an underwater scooter or Breathing Observation Bubble (BOB).

You sit upright with your head inside a clear dome helmet fed with air as the scooter glides along the seabed doing the hard work for you.

Becky underwater using a breathing bubble Credit: Undersea Adventures
Becky meeting musicians in Kouklia Credit: The Sun

The crystal-clear waters mean you feel like you’re in a Little Mermaid remake, walking, dancing and feeding the fish. It was an incredible experience.

My rediscovery of this one-time party island of my youth wasn’t over yet.

First there was a trip into the hills to see a different side of the island above the town of Paphos.

Aphrodite Hills Resort is perched high on a coastal plateau overlooking the legendary birthplace of the ancient Greek goddess.

The huge estate feels more like a self-contained village, complete with its own central square, chapel and a dozen restaurants.

This is low-key luxury and we were soon in golf buggies zipping through the sprawling grounds, ticking off the Elemis spa, 18-hole PGA championship golf course and Real Madrid-backed kids’ football academy.

But with Aphrodite’s birthplace just below us, we make a pilgrimage to admire Petra tou Romiou at sunset before making our way up to the village of Kouklia for an evening of fabulous food, live music and dancing.

Emboldened by one too many glasses of glorious Cypriot wine, I am first on my feet to join in.

You can take the girl out of Ayia Napa, but you seemingly can’t take Ayia Napa out of the girl.

GO: CYPRUS

GETTING/STAYING THERE: Seven nights’ all-inclusive at the 5* Mare Ayia Napa is from £1,519pp including Gatwick flights, transfers and 20kg luggage.

Seven nights’ all-inclusive at the 5* Aphrodite Hills Resort is from £1,493pp including flights, transfers and luggage.

See tui.co.uk.

OUT & ABOUT: Underwater Walk & Sea Scooter, from £52. Coastal Landmarks tour, from £35.

Aphrodite’s Rock and Folk Dinner, from £50pp.

See tuimusement.com.

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