When Italy’s Prime Minister Giorgia Meloni attended her first European leaders’
summit in Brussels in December 2022, few would have expected her to become one
of the most effective politicians sitting around the table four years later.
In fact, few would have expected that she’d still be there at all, as Italian
leaders are famously short-lived. Remarkably, her right-wing Brothers of Italy
party looks as rock solid in polls as it did four years ago, and she now has her
eye on the record longest term for an Italian premier — a feat she is due to
accomplish in September.
A loss in what is set to be a nail-biting referendum on the bitter and complex
issue of judicial reform on March 22 and 23 would be her first major set back —
and would puncture the air of political invincibility that she exudes not only
in Rome but also in Brussels.
Meloni has thrived on the European stage, and has become adept at using the EU
machinery to her advantage. Only in recent months, she has made decisive
interventions on the EU’s biggest dossiers, such as Russian assets, the Mercosur
trade deal and carbon markets, leveraging Italy’s heavyweight status to win
concessions in areas like farm subsidies.
Profiting from France’s weakness, Meloni is also establishing a strong
partnership with German Chancellor Friedrich Merz — a double act between the
EU’s No. 1 and No. 3 economies — to mold the bloc’s policies to favor
manufacturing and free trade.
CRASHING DOWN TO EARTH
For a few more days, at least, Meloni looks like a uniquely stable and
influential Italian leader.
Nicola Procaccini, a Brothers of Italy MEP very close to Meloni and co-chair of
the European Conservatives and Reformists (ECR) group, called the government’s
longevity a “real novelty” in the European political landscape.
“Until recently, Italy couldn’t insert itself into the dynamics of those that
shape the European Union — essentially the Franco-German axis — because it
lacked governments capable of lasting even a year,” said the MEP. “Giorgia
Meloni is not just a leader who endures; she is a leader who shapes decisions
and influences the direction to be taken.”
But critics of the prime minister said a failure in the referendum would mark a
critical turning point. Her rivals would finally detect a chink in her armor and
move to attack her record, particularly on economic weaknesses at home. The
unexpected, new message to other EU leaders would be clear: She won’t be here
for ever.
Brando Benifei, an MEP in Italy’s center-left opposition Democratic Party,
conceded that other EU leaders saw her as the leader of a “ultra-stable
government.” But, if she were to lose the referendum, he argued “she would
inevitably lose that aura.”
“Everyone remembers how it ended for Renzi’s coalition after he lost his
referendum,” Benifei added, in reference to former Democratic Party Prime
Minister Matteo Renzi who resigned after his own failed referendum in 2016.
MACHIAVELLIAN MELONI
Meloni owes much of her success on the EU stage to canny opportunism. At the
beginning of the year, she slyly spotted an opportunity — suddenly wavering on
the Mercosur trade deal, which Rome has long supported — to win extra cash for
farmers that would please her powerful farm unions at home. She held off from
actually killing the agreement, something that would have lost her friends among
other capitals.
German Chancellor Friedrich Merz and Italy’s Prime Minister Giorgia Meloni at a
signing ceremony during an Italy-Germany Intergovernmental Summit in Rome on
Jan. 23, 2026. | Pool photo by Michael Kappeler/AFP via Getty Images
The Italian leader “knows how to read the room very well,” said one European
diplomat, who was granted anonymity to discuss European Council dynamics.
Teresa Coratella, deputy head of the Rome office at the think tank European
Council on Foreign Relations, said Meloni had “a political cunning” that
allowed her to build “variable geometries,” allying with different European
leaders by turn based on the subject under discussion.
One of her first victories came on migration in 2023. She was able to elevate
the issue to the top level of the European Council, and even managed to secure a
visit by European Commission President Ursula von der Leyen to Tunisia,
eventually resulting in the signing of a pact on the issue.
Others wins followed.
Last December, with impeccable timing, Meloni unexpectedly threw her lot in with
Belgium’s Prime Minister Bart De Wever at the last minute, scuppering a plan to
fund Ukraine’s defenses with Russian frozen assets, instead pushing for more EU
joint debt.
Italian diplomats said that Meloni is a careful student, showing up to summits
always having read the relevant documents, and having asking the apposite
questions. That wasn’t always the case with former Italian prime ministers.
They said her choice of functionaries — rewarding competence over and above
political affiliation — also helps. These include her chief diplomatic
consigliere Fabrizio Saggio and Vincenzo Celeste, ambassador to the EU. Neither
is considered close politically to Meloni.
Her biggest coup, though, has been shunting aside France as Germany’s main
European partner on key files, with her partnership with Merz even being dubbed
“Merzoni.”
ROLLING THE DICE
Meloni’s strength partly explains why she dared call the referendum.
Italy’s right has for decades complained that the judiciary is biased to the
left. It’s a feud that goes back to the Mani Pulite (Clean Hands)
anti-corruption drive in the 1990s that pulverized the political elite of that
time, and the constant court cases against playboy premier and media tycoon
Silvio Berlusconi, father of the modern center-right.
The proposal in the plebiscite is to restructure the judiciary. But it’s a
high-stakes gamble, and why she called it seems something of a puzzle. The
reforms themselves are highly technical — and by the government’s own admission
won’t actually speed up Italy’s notoriously long court cases.
Prime Minister of Italy, Giorgia Meloni attends the European Council meeting on
June 26, 2025 in Brussels. | Pier Marco Tacca/Getty Images
Instead, the vote has turned into a more general vote of confidence in Meloni
and her government. The timing is tough as Italians widely dislike her ally U.S.
President Donald Trump and fear the war in Iran will drive up their already high
power prices.
Still, she is determined not to suffer Renzi’s fate and insists she will not
step down even if she loses the referendum.
Asked at a conference on Thursday whether a loss would make Rome appear less
stable in its dealings with other European capitals, Foreign Minister Antonio
Tajani was adamant that the referendum has “absolutely nothing to do with the
stability of the government.”
“This government will last until the day of the next national elections,” he
added.
A victory on Monday will put the wind in her sails before the next general
elections, which have to be held by the end of 2027. It would also set the stage
for other reforms that Meloni wants to enact: a move to a more presidential
system, with a direct election of the prime minister, making the role more like
the French presidency.
But a loss would galvanize the opposition — split between the populist 5Star
Movement, and the traditional center-left Democratic Party.
The danger is her rivals would round on her particularly over the economy. Even
counting for the fact Italy has benefitted from the largest tranche of the
Covid-era recovery package — growth has been sluggish, consistently below 1
percent, falling to 0.5 percent in 2025.
“We have a situation in which the country is increasingly heading toward
stagnation and we have to ask ourselves what would have happened if we had not
had the boost of the Recovery Fund,” said Enrico Borghi, a senator from Italia
Viva, Renzi’s party.
Procaccini, however, defended her, both on employment and growth.
“It could be better,” he conceded. “But we are still talking about growth,
unlike countries that in this historical phase are recording a decline, as in
the case of Germany.”
Tag - Farms
BRUSSELS — The European Union’s anti-deforestation law will put United States
producers off exporting to the European market, harming EU competitiveness, a
senior official with the U.S. Department of Agriculture told reporters in
Brussels Friday.
The law, also called EUDR, is “going to discourage us from looking at the
European market” and from “paying attention to any European rules [linked to
deforestation],” the official said. The law as it stands would affect $9 billion
of U.S. trade to the EU annually, added the official, who spoke to journalists
on condition that he was not named.
A delegation of U.S. government representatives is finishing a tour of EU
capitals — including Madrid, Rome, Paris, Berlin and Brussels — to lobby
governments to simplify the EUDR ahead of an upcoming review of the rules next
month.
One example of a sector that could be affected is livestock farming, the
official said, arguing these farmers depend on soybeans to feed their animals,
and Europe does not produce enough protein feed.
“It needs to import from countries that are better at it, like us,” he said,
warning that the U.S. stopping that export “will drive up their costs, hurt
their competitiveness.”
The EU’s anti-deforestation law requires that companies police their supply
chains to ensure that any commodities they use, such as palm oil, beef or
coffee, have not contributed to deforestation. After complaints from industry
groups and trade partners, EU institutions in December agreed to put off
implementation of the law by a year — until Dec. 2026 — and mandated the
Commission to present a review of the rules by April.
“It’s particularly difficult for us because these [compliance] costs will be
borne by our producers,” said the official. U.S. farmers also don’t want to
share information on their farms with foreign governments, he said.
Washington’s main qualms with the law include the fact that there’s no category
of “negligible” risk in the EU’s ranking of countries by risk of deforestation.
The U.S. — like all EU member countries as well as China, Canada, the Democratic
Republic of the Congo, Ghana, Kenya, Vietnam and others — has been labeled “low
risk” under the EU’s deforestation classification system.
Members of the European Parliament in the center-right European People’s Party
have also backed the introduction of a “no risk” category, “for countries with
stable or expanding forest areas.”
The senior official also complained about a stipulation in the law that if the
level of deforestation in any country exceeds 70,000 hectares annually, that
country cannot be considered “low risk.” That standard “just doesn’t work for
us,” they said. “It’s not fair.”
Representatives from the European Commission are meeting with members of the
delegation on Friday “at technical level” to discuss the law, a spokesperson for
the European Commission confirmed to POLITICO. European Environment Commissioner
Jessika Roswall told reporters in January that there would be no new legislative
proposal come April, saying businesses need “predictability.”
A 2024 report from the U.S. Congressional Research Service estimated that, in
2023, U.S. exports of the seven commodities under the EUDR accounted for
approximately 3 percent of the value of U.S. exports to the EU, “so overall the
EUDR may not significantly affect U.S. trade.”
European Environment Commissioner Jessika Roswall told reporters in January that
there would be no new legislative proposal come April, saying businesses need
“predictability.” | Gabriel Luengas/Europa Press via Getty Images
Still, the authors wrote, the law could affect U.S. producers of specific
commodities covered by the law. In 2023, the highest value of covered
commodities exported to the EU from the U.S. were wood and wood products ($4.5
billion), soybeans ($4 billion), rubber ($1.1 billion), and cattle, such as beef
and related products ($409 million).
Environmental groups are calling on EU governments and the Commission to stick
by the EUDR and keep the rules intact.
“Misleading and self-serving foreign pressure on the EU should not distract
policy-makers from staying focused on facts,” said Anke Schulmeister-Oldenhove,
manager for forests at WWF EU, in an emailed statement. “Every year the EUDR is
postponed results in the loss of nearly 50 million trees and the release of 16.8
million tonnes of CO₂ into the atmosphere.”
BRITAIN’S LABOUR PARTY STARES INTO THE ABYSS IN ITS WELSH HEARTLAND
In the old coalfields of south Wales, Britain’s center-left establishment faces
being crushed by a nationalist left and populist right. POLITICO went to find
out why.
By DAN BLOOM
and SASCHA O’SULLIVAN
in Newport, South Wales
Photo-Illustration by Natália Delgado/POLITICO
Eluned Morgan, the Welsh first minister, stood in a sunbeam at Newport’s
Victorian market and declared: “Wales is ready for a new chapter.”
Many voters agree. The problem for Morgan is: few think she’ll be the one to
write it.
This nation of 3 million people, with its coalfields, docks, mountains and
farms, is the deepest heartland of Morgan’s center-left Labour Party. Labour has
topped every U.K. general election here for 104 years and presided over the
Welsh parliament, the Senedd, since establishing it 27 years ago.
Yet Senedd elections on May 7 threaten not only to end this world-record winning
streak, but leave Welsh Labour fighting for a reason to exist.
One YouGov poll in January put the party joint-fourth with the Conservatives on
10 percent, behind Welsh nationalists Plaid Cymru on 37 percent, Nigel Farage’s
populist Reform UK on 23 percent and the Greens on 13 percent. Other polls are
less dramatic (one last week had Reform and Plaid equal, and Labour a closer
third), but the mood remains stark.
The most common projection for the 96-seat Senedd is a Plaid minority government
propped up by Labour — blowing a hole in Labour’s status as the default
governing party and safe vote to stop the right, and echoing recent by-elections
in Caerphilly (won by Plaid) and Manchester (won by Greens).
POLITICO visited south Wales and spoke to 30 politicians and officials across
Labour, Plaid and Reform. | Dan Bloom/POLITICO
It would raise the simple question, said a senior Welsh Labour official granted
anonymity to speak frankly: “What is the point in this party?’”
POLITICO visited south Wales and spoke to 30 politicians and officials across
Labour, Plaid and Reform, including interviews with all three of their Welsh
leaders, for this piece and an episode of the Westminster Insider podcast. The
conversations painted a vivid picture of a center-left establishment fighting
for survival in an election that could echo far beyond Wales.
While in the 1980s Welsh Labour could unite voters against Margaret Thatcher’s
Conservatives, now it is battling demographic changes, a decline in unionized
heavy industry and an anti-incumbent backlash. All have killed old loyalties and
habits.
Squeezed by Plaid and Greens to their left and Reform to their right, some in
Labour see parallels with other mainstream postwar parties facing a reckoning
across Europe. This week, Germany’s conservative Christian Democrats and
center-left Social Democrats lost to the Greens in the car production region of
Baden-Württemberg; the latter barely scraped 5 percent. In the recent Manchester
by-election, the Conservatives lost their deposit.
Welsh Labour MPs fear a reckoning. One said: “We will have to start again. We
rebuild. We figure out, what does Welsh Labour mean in 2026? What do we stand
for?”
NEW CHAPTER, SAME AUTHOR
It takes Morgan 20 minutes to walk the 500 meters from Newport Market to our
interview. Some passers-by flag her down; others she ambushes. We pass a baked
goods shop (“Ooh, Gregg’s! That’s what I want!”) and Morgan emerges with a
latte, though not with one of the chain’s famous sausage rolls. She introduces
herself to one woman as “Eluned Morgan, first minister of Wales.” Her target
looks vaguely bemused.
After the Covid pandemic, people are simply more aware of what the Welsh
government actually does — which means Labour, as the incumbent, gets more blame
when things go wrong. | Matthew Horwood/Getty Images
A peer and ex-MEP who joined the Senedd in 2016, Morgan is a fixture of Wales’
Labour establishment who became first minister unopposed in August 2024 after
her predecessor, Vaughan Gething, resigned over a donations scandal.
“I didn’t have a mandate really, because I was just kind of thrown in,” she
tells POLITICO midway up the high street. “I thought, right, I need a program,
so I went out on the streets and took my program directly from the public
without any filter.”
She is selling a nuts-and-bolts offer of new railway stations, a £2 bus fare cap
and same-day mental health care. Morgan casts herself as the experienced option
to beat what she calls the “separatists” of Plaid and the “concerning” rise of
populism. She means Reform, which wants to scrap net zero targets and cut 580
Welsh civil service jobs.
Yet paradoxically, she also paints herself as a vessel for change. “[People]
want to see change faster,” she said in John Frost Square, named after the
leader of an 1839 uprising that demanded voting rights for all men. She wants to
show “delivery” and “hope.”
Dimitri Batrouni, Newport Council’s Labour leader, suggested an Amazonification
of politics is under way. “Our lives commercially are instant,” he said. “I want
something, I order it, it’s delivered to my house … people quite naturally want
that in their governments.”
But after 27 years, many voters are rolling the dice on delivery elsewhere.
Welsh Labour is promising to end homelessness by 2034, but previously made the
same pledge by 2026. Around 6,900 people are still waiting two years or more for
NHS treatment (though this figure was 10 times higher during the Covid-19
pandemic). Education rankings slumped in 2023.
At Newport’s Friars Walk shopping center, retired mechanical engineer Roy
Wigmore, 81, said all politicians are liars. “I’ve voted Labour all my life
until now,” he said, “but I’ll probably vote for somebody else — probably Nigel
Farage.”
‘SHIT, WELL, HE DIDN’T CALL ME’
Much of this anger is pointed at Westminster — which is why Labour has long
tried to show a more socialist face to Wales.
It was the seat of Labour co-founder Keir Hardie as well as of Nye Bevan, who
launched Britain’s National Health Service in 1948. “Welsh Labour” was born out
of the first Senedd-style elections in 1999, when Plaid surged in south Wales
heartlands while Tony Blair’s New Labour appealed to the middle classes. For
years, this deliberate rebranding worked; Labour pulled through with the most
seats even when the Tories ruled Westminster.
Yet in 2024, the party boasted of “two Labour governments at both ends of the
M4” — in London and in Cardiff — working in harmony. The emphasis soon flipped
back when things went wrong in No. 10; Morgan promised a “red Welsh way” last
May. She is “trying to find our identity again,” said the MP quoted above.
Morgan appeared to disown the “both ends of the M4” approach, while declining to
call it a mistake. “Look, that was a decision before I became first minister,”
she said.
A peer and ex-MEP who joined the Senedd in 2016, Morgan is a fixture of Wales’
Labour establishment who became first minister unopposed in August 2024 after
her predecessor, Vaughan Gething, resigned over a donations scandal. | Matthew
Horwood/Getty Images
She tries to be playful in distancing herself from Keir Starmer. “He came down a
couple of weeks ago and I was very clear with him, if you’re coming you need to
bring something with you. Fair play, he brought £14 billion of investment,” she
said. “If he wants to come again, he’ll have to bring me more money.”
But she has also hitched herself to Starmer for now — unlike Scottish Labour
leader Anas Sarwar, who has called for the PM to go. As we sat down, Morgan
professed surprise at news that Sarwar called several Cabinet ministers
beforehand.
“Did he! Shit, well, he didn’t call me,” she said.
“Look at the state of the world at the moment; actually what we need is
stability,” she added. “We need the grown-ups in the room to be in charge, and I
do think Keir Starmer is a grown-up.”
‘ELUNED WASN’T HAPPY’
Morgan has mounted a fightback since Plaid won October’s Caerphilly
by-election.
She has hired Matt Greenough, a strategist who worked on London Mayor Sadiq
Khan’s re-election campaign last year, said three people with knowledge of the
appointment.
One of the people said: “During Caerphilly, it became quite clear there were a
lot of problems. Eluned wasn’t happy with Welsh Labour or the way the campaign
was running. She did a lot of lobbying and got the Welsh executive to basically
give her complete power over the campaign.” Morgan “was angry that the central
party [in London] took control of the Caerphilly by-election,” another of the
people added.
(A Morgan ally disputed this reading of events, saying she would always take a
bigger role as the election drew near, and that a wide range of Labour figures
are involved in the campaign committee such as a Westminster MP, Torsten Bell.)
Morgan also has more support these days from Labour’s MPs — who pushed last year
for her to focus less on Plaid and more on Reform. That lobbying may have been a
mistake, the MP quoted above admits now. “We were quite naive in thinking that
the progressives would back us,” this MP said.
Privately, Labour politicians and officials in Wales say the mood and prospects
are better than the start of 2026. Though asked if Labour would win the most
seats in the Senedd, Batrouni said: “Let’s look and see. It’s not looking good
in the polls but … politics changes so quickly.”
IT’S NOT JUST ABOUT KEIR STARMER
The harsh reality is that Labour’s base in Wales began slipping long before
Starmer, rooted in deindustrialization since the 1970s and 80s.
Newport, near England on the M4 corridor, has a measure of prosperity that other
parts of Wales do not. The 137-year-old market has had a makeover, Microsoft is
building data centers and U.S. giant Vishay runs Britain’s biggest semiconductor
plant. Here Labour is mostly expecting a fight between itself and Reform.
At Newport’s Friars Walk shopping center, retired mechanical engineer Roy
Wigmore, 81, said all politicians are liars. “I’ve voted Labour all my life
until now,” he said, “but I’ll probably vote for somebody else — probably Nigel
Farage.” | Jon Rowley/Getty Images
Wales’ west coast and north west are more Plaid-dominated, with more Welsh
speakers and independence supporters. But support for nationalists is spreading
in the southern valleys.
“All across the valleys you’re seeing places where Labour has dominated for 100
years plus but is now in deep, deep crisis,” said Richard Wyn Jones, professor
of Welsh politics at Cardiff University. “It has long been the case that a lot
of Labour supporters have had a very positive view of Plaid Cymru — they just
didn’t have a reason to vote for them until now.”
Wyn Jones attributes the change to trends across northern Europe, where
traditional left-wing parties have been “unmoored” from working-class
occupations. A growing service sector has brought more white-collar voters with
socially liberal values.
Carmen Smith, a 29-year-old Plaid campaigner who is the House of Lords’
youngest-ever peer, said Brexit had unhitched young, left-leaning voters from
the idea of British patriotism: “There are a lot more young people identifying
as Welsh rather than British.”
And after the Covid pandemic, people are simply more aware of what the Welsh
government actually does — which means Labour, as the incumbent, gets more blame
when things go wrong.
All the while, a left-behind contingent of socially conservative ex-Labour
voters is turning to Reform UK. At the Tumble Inn, a Wetherspoons chain pub in
the valley town of Pontypridd, retired gas engineer Paul Jones remembered: “You
could leave one job, walk a couple of hundred yards and start another job … it
was a totally different world. I wish we could get it back, but I don’t think
it’s going to happen.” He hasn’t voted for years but plans to back Reform.
THEY’VE BLOWN UP THE MAP
All these changes will be turbocharged by a new electoral map.
A previous Labour first minister, Mark Drakeford, introduced a more proportional
voting system which will see voters elect six Senedd members in each of 16
super-constituencies.
The results will reflect the mood better than U.K. general elections (Labour won
84 percent of Wales’ seats on a 37 percent vote share in 2024), but create a
volatile outcome. In the mega-constituency for eastern Cardiff, Wyn Jones
believes the six seats could be won by six parties: Labour, Plaid, Reform, the
Conservatives, Greens and Liberal Democrats.
Ironically, said the Labour MP quoted above, Welsh Labour is now polling so
badly that it could actually win more seats under the new system than the old
one.
Trying to win the sixth seat in each super-constituency will hoover up many
resources. The size of each patch changes how parties campaign, said Plaid’s
Westminster leader Liz Savile Roberts: “We’ve had to go to places that I’ve
never been to.”
And the scale means activists have a weaker connection to the candidates they
campaign for — compounded in Labour by many Senedd members stepping down. Just
six people turned up to one recent Labour door-knocking session in a heartland
seat.
A left-behind contingent of socially conservative ex-Labour voters is turning to
Reform UK. | Huw Fairclough/Getty Images
After May 8, the new system will make coalitions or informal support deals more
necessary to command a Senedd majority.
Morgan declined to say if she would support Plaid’s £400 million-a-year offer to
expand free childcare (which Labour says is unfunded), rather than see it voted
down. “I’m certainly not getting into hypotheticals,” she said. “I’m in this to
win it.”
Her rivals have other ideas.
THE PRESIDENT IS COMING
On the hill above Newport, a two-story presidential-style image of Rhun ap
Iorwerth filled a screen at the International Convention Centre above the words:
“New leadership for Wales.”
The former BBC presenter, who took over Plaid’s leadership in 2023, strained not
to make his February conference look like a premature victory lap. Members
could’ve been fooled. They struggled to find parking. There were more lobbyists;
more journalists.
It is a slow burn for a party founded in 1925, which won its first Westminster
seat in 1966.
Ap Iorwerth ramped up the anti-establishment rhetoric in his conference speech
while Lindsay Whittle, who won Caerphilly for Plaid in October’s by-election,
bellowed: “Rich men from London, we are waiting for you!”
Yet he insists his success is more than a protest vote, a trend sweeping Europe
or a mirror of Reform’s populism.
“I’d like to think that we’re doing something different,” Ap Iorwerth told
POLITICO. While Morgan accuses him of “separatism,” he said: “We have a growing
sense of Welsh nationhood and Welsh identity, at a time when there’s deep
disillusionment in the old guard of U.K. politics and a sense of needing to keep
at bay that populist right wing.”
Ap Iorwerth said there is a “very real danger” that Labour vanishes entirely as
a serious force in the Senedd. “The level of support that they have collapsed to
is a level that most people, probably myself included, could never have imagined
would happen so quickly,” he said.
INDEPENDENCE DAY?
But Plaid faces three big challenges to hold this pole position.
The first is its ground game, stretched thin to cover the new world of
mega-seats.
On the hill above Newport, a two-story presidential-style image of Rhun ap
Iorwerth filled a screen at the International Convention Centre above the words:
“New leadership for Wales.” | Matthew Horwood/Getty Images
The second is to remain distinct from Labour and the insurgent Greens while
running a broad left-leaning platform focused on energy costs, childcare and the
NHS.
The third is to convince unionist voters that Plaid is not simply a Trojan horse
for Welsh independence.
Independence is Plaid’s core belief, yet Ap Iorwerth did not mention the word
once in his speech, instead promising a “standing commission” to look at Wales’
future. He told POLITICO he would rather have a “sustained, engaging, deep
discussion … than try to crash, bang, wallop, towards the line.”
But opponents suggest Plaid will push hard for independence if they win a second
term in 2030 — like the Scottish National Party did after topping elections in
2007 then 2011.
One conference attendee, Emyr Gruffydd, 36, a member for 19 years, said
independence “is going to be part of our agenda in the future, definitely. But I
think nation-building has to be the approach that we take in the first term.”
Savile Roberts accepted that shelving talk of independence (which is still
supported by less than half the Welsh population) is part of a deliberate
strategy to broaden the party’s reach and keep a wide left-leaning appeal. “I
mean, we know the people that we need to appeal to — it is the disenchanted
Labour voters,” she said.
For some shoppers in Newport — not Plaid’s home turf — it may be working. One
ex-Labour voter, Rose Halford, said of Plaid: “All they want to do is make
everybody speak Welsh.” But she’ll consider backing them: “They’re showing a bit
more gumption, aren’t they?”
TAXING QUESTIONS FOR PLAID
If Plaid does win, that’s when the hard part begins.
Ap Iorwerth would seek urgent talks about changing Wales’ funding formula from
Westminster — but cannot say how much this would raise. And Plaid has vowed not
to hike income tax, one of the few (blunt) tax instruments available to the
Welsh government. Strategists looked at the issue before and feared it would
prompt taxpayers to flee over the border to England.
So Plaid promises vague financial “efficiencies” in areas such as child poverty,
where spending exceeded £7 billion since 2022, and health. Whittle said:
“There’s an awful lot of people pen-pushing in the health service. We don’t need
pen-pushers.”
Labour’s attack machine argues that Plaid and Reform UK alike would cut
services. Ap Iorwerth insists his and Farage’s promises are different: “We’re
talking about being effective and efficient.” But he admitted: “You don’t know
the detail until you come into government.”
Ap Iorwerth jettisoned any suggestion that Plaid would introduce universal basic
income, saying it is “not a pledge for government.” He added: “It’s something
that I believe in as a principle. I don’t think we’re in a place where we have
anything like a model that could be put in place now.”
Ap Iorwerth would seek urgent talks about changing Wales’ funding formula from
Westminster — but cannot say how much this would raise. | Matthew Horwood/Getty
Images
The blame game between Cardiff and Westminster will run hot. Ap Iorwerth voiced
outrage this week at a leaked memo from Starmer in December, ordering his
Cabinet to deliver directly in Wales and Scotland “even when devolved
governments may oppose this.”
FARAGE’S WELSH SURGE
And then there’s Reform. Farage’s party has rocketed in the polls since 2024;
typical branch meetings have swelled from a dozen members to several dozen.
Since February, Reform has even had its own leader for Wales — Dan Thomas, a
former Tory councillor in London who says he recently moved back to the area of
Blackwood, in the south Wales valleys.
Some party figures have observed a dip after the Caerphilly by-election, where
Reform came second. Thomas insists: “I don’t think we’ve plateaued” — and even
said there is room to increase a 31 percent vote share from one (optimistic)
poll. “There’s still a Labour vote to squeeze,” he told POLITICO. “We’re
targeting all of Wales.”
It is a measure of Plaid’s success that Reform UK often now presents the
nationalist party as its main competition. “It’s a two-horse race [with Plaid],
that’s what I say on the doors,” said Leanne Dyke, a Reform canvasser who was
drinking in the Pontypridd Wetherspoons.
James Evans, who is now one of Reform’s two Senedd members after he was thrown
out of the Conservative group in January on suspicion of defection talks, argues
his supporters are underrepresented in polling because they are “smeared” as
bigots.
Evans added: “Very similarly to what happened in America when Donald Trump was
elected, I think there is a quiet majority of people out there who do not want
to say they’re voting Reform, who will vote Reform.”
Reform has its own custom-built member app, ReformGo, as it canvasses data on
where its supporters live for the first time. It sent a mass appeal by post to
all registered Welsh voters in late 2025 (before spending limits kicked in).
Welsh campaign director David Thomas is recruiting a brand new slate of 96
candidates, booking hotels for training days with interviews, written exercises
and team-building. Daytime TV presenter Jeremy Kyle has helped with media
training. English officials cross the border to help; Reform still only has
three paid officials in Wales.
FARAGE HAS AN NHS PROBLEM
Lian Walker, a postal worker from the village of Pen-y-graig, would be a prime
target for Reform. “There’s people who I see on the databases, they don’t work,”
she said in Pontpridd’s Patriot pub, “but they get everything; new windows,
earrings, T-shirts, shorts.” She supports Reform’s plans to deport migrants.
But on the NHS, she says of Reform: “They want it to go private like America.”
Labour and Plaid drive this attack line relentlessly. The full picture is more
nuanced — but still exposes a tension between Farage and Thomas.
But Farage has an advantage; the right is less split than the left. | Ben
Birchall/PA Images via Getty Images
While Reform emphasizes it would keep the NHS free at the point of use, Farage
has not ruled out shifting its funding from general taxation to a French-style
insurance model, saying that would be “a national decision ahead of a general
election.”
Thomas, however, broke from this stance. He told POLITICO: “No, no. We rule out
any kind of insurance system or any kind of privatization.” He added: “Nigel’s
also said that devolved issues are down to the Welsh party, and I wouldn’t
consider any kind of insurance-based or private-based system for the Welsh NHS.”
Labour and Plaid are relying on an anti-Reform vote to keep Farage’s party out
of power. Opponents have also highlighted the jailing of Nathan Gill, Reform’s
former Welsh leader, for taking bribes to give pro-Russia interviews and
speeches.
But Farage has an advantage; the right is less split than the left. In Evans’
sprawling rural seat of Brecon and Radnorshire, two people with knowledge of the
Conservative association said its membership had fallen catastrophically from a
recent peak of around 400.
On the other hand, the sheer number of defections makes Reform look more like a
copycat Conservative Party. A former Tory staffer works for Evans; Thomas’ press
officer is the Welsh Conservatives’ former media chief. Evans said last year
that 99 percent of Reform’s policies were “populist rubbish,” but was allowed to
see the policy platform in secret before he agreed to join (and has since
contributed to it).
While the long-time former UKIP and Brexit Party politician Mark Reckless led a
policy consultation in the first half of 2025, former Conservative Welsh
Secretary David Jones — who defected without fanfare last year — played a
hands-on role behind the scenes working up manifesto policies, two people with
knowledge of his work said.
THE NIGEL SHOW
Then there is Reform’s reliance on Farage himself.
The party deliberately left it late before unveiling a Welsh leader, said a
Reform figure in Wales, and chose in Thomas a Welsh figure who would not
“detract from Nigel’s overall umbrella and brand.”
While Welsh officials and politicians worked on the manifesto, Farage himself
was involved in signing it off — as were several others in London, said Evans,
including frontbench spokespeople Robert Jenrick, Suella Braverman and Zia
Yusuf.
Thomas said: “Ultimately, it’s my decision to sign off the manifesto. Of course,
Nigel was consulted because he’s our U.K. leader, and we want to ensure that
what’s going on in Wales is aligned to the broader picture in the UK.”
Reform’s Welsh manifesto promises to cut a penny off every band of income tax by
2030, end Wales’ “nation of sanctuary” plan to support asylum seekers, scrap
20mph road speed limits and upgrade the M4 and A55 highways. But costings have
not been published yet — Reform has sent them to be assessed by the Institute
for Fiscal studies, a nonpartisan think tank — and like other parties, Reform
faces questions about how it will all be paid for.
Asked if Reform would begin work on the M4 and A55 upgrades by 2030, Thomas
replied: “We’d like to. But we all know in this country, infrastructure projects
take a long time.”
While Welsh officials and politicians worked on the manifesto, Farage himself
was involved in signing it off — as were several others in London, said Evans,
including frontbench spokespeople Robert Jenrick, Suella Braverman and Zia
Yusuf. | Huw Fairclough/Getty Images
‘I’VE GOT TO FOCUS ON WHAT I CAN CONTROL’
These harsh realities facing Wales’ would-be rulers are a silver lining for
Labour.
Morgan avoided POLITICO’s question about whether she believes the polls — “I’ve
got to focus on what I can control” — but insisted many voters remain
persuadable. “People will scratch the surface and say [our rivals] are not
ready,” she said.
Alun Michael, who led the first Welsh Labour administration in 1999, said the
idea that the Labour vote has “collapsed completely” is wrong. “It’s always
dangerous to go on opinion polls as a decider of what will happen in an
election,” he said.
Whoever does win will deserve a moment of levity.
If Ap Iorwerth wins the most seats on May 7, he will drink an Aperol spritz;
Thomas will have a glass of Penderyn Welsh whisky.
As for Morgan? She would like a cup of tea — milk, no sugar. Perhaps survival
would be sweet enough.
Governments and lobby groups in Italy, Ireland and Hungary are raising concerns
over the continuing near-standstill in maritime freight transport in the Strait
of Hormuz as the U.S.-Israeli war on Iran escalates.
The strait, a major international waterway for oil, gas and fertilizers, has
been a no-go zone for a week now, after Iran retaliated against a joint
U.S.-Israeli strike and the conflict spilled into the surrounding region.
The narrow stretch of water lies partly in Iranian territorial waters. Tehran
has said the waterway technically remains open but warned that U.S. and Israeli
vessels would be targeted, adding it “cannot guarantee the safety of ships from
all countries.”
“The attack on Iran has opened a Pandora’s box,” Irish Agriculture Minister
Martin Heydon told the Irish Independent, warning that the surge in the price of
fertilizers could hit at the worst time of the year, during planting season. The
Middle East is also an important market for Irish food and drink exports.
Heydon did not rule out government support packages for farms and food
producers, but said it is too soon to talk about it.
The disruption is also raising concerns in Italy, where the largest farmers’
lobby Coldiretti on Tuesday warned that “the disruption of trade routes linked
to the war involving Iran is already causing serious damage to exports.”
“The main concern is the markets of the Middle East, where the total value of
Italian agri-food exports exceeds €2 billion,” Coldiretti wrote in a press
release, adding that particular concern surrounds perishable products like
fruits, vegetables or flowers.
“The halt in maritime traffic in the Gulf comes at the peak of the flower export
season,” added Coldiretti.
Meanwhile, Hungarian Prime Minister Viktor Orbán, whose country goes to the
polls next month, announced Monday that Hungary will renew fuel price caps “to
protect Hungarian families, Hungarian entrepreneurs and Hungarian farmers”
following what he described as an “international oil price explosion.”
Republicans on Capitol Hill are preparing to confront a staggering price tag for
the war in the Middle East after closed-door briefings this week detailed the
rapid consumption of expensive munitions and the lack of any firm deadline for
the end of the military campaign.
Asked how much the Iran offensive would cost, House Appropriations Chair Tom
Cole (R-Okla.) didn’t sugarcoat it.
“A lot,” he replied.
Senior Republicans privately expect President Donald Trump’s administration to
request tens of billions of dollars for the Middle East conflict and other
military needs from Congress in the coming days, with some GOP lawmakers hearing
estimates that the Pentagon is spending as much as $2 billion a day on the war.
Three F-15E jets shot down by friendly fire in Kuwait are estimated to cost $100
million alone. But Trump officials in private briefings have declined to give
lawmakers any specific numbers, according to six congressional Republicans
granted anonymity to describe the internal discussions.
A White House request for supplemental funding could further balloon once it
hits Capitol Hill, according to four other people with direct knowledge of the
matter. Farm-state Republicans want an additional $15 billion in tariff relief
for farmers, while others float adding tens of billions of dollars in wildfire
aid to get enough Democratic support to pass the massive bill.
The prospect of a growing new spending measure has GOP leaders bracing for a
messy internal fight, with fiscal hawks who have long decried “forever wars” and
bloated Pentagon budgets deeply unsettled by some of the cost estimates flying
around on Capitol Hill. At the very least, some are planning to demand
offsetting spending cuts.
“I haven’t seen any specifics … but if it’s unpaid-for, I generally have an
issue,” Rep. Russ Fulcher (R-Idaho) said.
Another House Republican granted anonymity to describe the conversations among
GOP hard-liners said, “It’s not a ‘hell no,’ but it should be offset somehow.”
The topic is now looming over next week’s House Republican policy retreat, which
kicks off Monday with a speech from Trump at the president’s resort in Doral,
Florida. If the administration sends its formal funding request in the coming
days, House GOP leaders will be forced to confront the issue head on.
At least some are expressing unqualified early support for any administration
request. House Foreign Affairs Chair Brian Mast (R-Fla.), for instance, said in
an interview this week he is ready to support an emergency funding bill spending
tens of billions of dollars on the Iran operation alone.
That sentiment could be challenged by the congressional Republicans who
are privately wary of the open-ended timeline and shifting rationales for the
war. One House Republican recently remarked that Trump’s pledge to do “whatever”
it takes, including entertaining boots on the ground, sounded like “President
Lyndon Johnson going into Vietnam.”
Rep. Ryan Mackenzie, a vulnerable Pennsylvania Republican, noted that “as much
as we need to neutralize their capabilities to continue to attack us, we do also
need to make sure that we don’t get dragged into a forever war.”
Asked in an interview if Congress is ready to approve a $50 billion Pentagon
funding package, Speaker Mike Johnson replied that he didn’t know the specific
number yet but Congress would pass the bill “when it’s appropriate and get it
right.”
“We’re waiting on the White House and [the Pentagon] to let us know, but we have
an open dialogue about it,” Johnson said.
House Majority Leader Steve Scalise, who is attuned to the spending concerns
among the fiscal hawks inside the GOP ranks, demurred when asked about the
potential for a $50 billion package.
“We’re still just in the first few days of this conflict, and there’s no ask yet
from the Department of War for a supplemental,” Scalise said in an interview
Wednesday.
He referenced the laborious talks ahead: “When that time comes, we’ll obviously
have very serious conversations, because it’s important that the Department of
War have the tools they need to keep America safe.”
A bigger potential headache is brewing for Johnson as members of his conference
debate whether additional military funding should go in a much-discussed but
long-shot budget reconciliation bill. That could move to Trump’s desk along
party lines without Democratic support, but only if Republicans are almost
completely unified.
House Budget Chair Jodey Arrington (R-Texas) said in an interview this week he
expected the chamber to move forward on an initial emergency funding bill but
that a second filibuster-skirting megabill could contain additional Pentagon
spending, along with some possible offsetting cuts.
“It’s not just for the current conflict,” Arrington said. “There are things that
need to be retooled fundamentally at the Defense Department, and the president’s
team is making a really good case for that.”
Rep. Ralph Norman, one GOP hard-liner who has objected in the past to big
Pentagon budgets, now says he would “absolutely” support a $50 billion bill
without offsets.
“I don’t like it, but with what this president’s doing with income — the GDP is
increasing, the money he’s bringing in for other investments — to handicap him
on that, that’s a problem,” said Norman, who is running for South Carolina
governor and seeking Trump’s support.
In the Senate, some GOP appropriators are cautioning that any war funding bill
will be a big lift — and warning the administration to get specific, and fast.
Sen. Lisa Murkowski (R-Alaska), a senior member of the Defense Appropriations
subcommittee, said the “administration should not be taking anything for
granted.”
“If they come to us at the end of the month and say, ‘This is what we want, and
basically, deliver the votes’ … it’s not a winning strategy, in my view,” she
said. “You’ve got to start making the case.”
Katherine Tully-McManus and Jennifer Scholtes contributed to this report.
The Netherlands’ youngest prime minister, Rob Jetten, was sworn in on Monday
vowing to end the paralysis and polarization that plagued the previous
government, the most far-right in Dutch politics.
That promised return to the Netherlands’ historical tradition of consensus
politics will be a tall order for the 38-year centrist, however.
He now presides over a fragile minority government and his plans on cutting
welfare and social security spending are already facing backlash across the
political spectrum.
With far-right parties leading the polls in France and Germany, Jetten’s victory
in October was welcomed by traditional parties in Brussels because it had been
touch-and-go whether voters in the EU’s fifth-biggest economy would support
centrists rather than the far right.
One hundred and seventeen days of coalition building later, Jetten faces a
battle to drive through an ambitious agenda that includes a massive boost to
defense spending in line with NATO’s 3.5-percent core target and reducing
emissions from one of Europe’s most important livestock industries.
On all counts, his opponents are out to extract painful concessions at the risk
of political deadlock.
Consultancy Verisk Maplecroft has ranked the Netherlands as the third-most
governmentally unstable country in Europe, behind Bulgaria and Moldova.
The question now is whether Jetten’s government can buck a trend that has
already seen two governments collapse in four years.
KNIVES OUT FOR COALITION DEAL
In its coalition agreement, Jetten’s government — which, aside from his own
centrist D66, also includes the center-right Christian Democratic Appeal (CDA)
and the liberal People’s Party for Freedom and Democracy (VVD) — has promised
to splurge on defense and housing and reintroduce voluntary farm buyouts, while
maintaining a hawkish fiscal policy.
To fund the spending bonanza, it is proposing a “freedom contribution” tax on
income on top of drastic cuts to welfare and social security spending.
The coalition agreement also looks to continue a strict line on migration set by
the previous, far-right government, and envisages accelerating previous plans to
increase the pension age.
The left and far right have their knives out for the agreement.
GreenLeft-Labor alliance (GL-PvDA) leader Jesse Klaver said he would only
support the plans in case “of a U-turn.”
Geert Wilders, who leads the far-right Freedom Party (PVV) promised to fight it
“tooth and nail.”
And Socialist Party (SP) leader Jimmy Dijk went as far as saying the government
blueprint constituted “a frontal attack on our civilization.”
To get anywhere, Jetten’s government will need their support. The coalition has
only 66 out of 150 seats in the lower house of Dutch parliament — 10 short of a
majority. In the upper house of parliament, its position is even weaker, with 22
out of 75 seats.
Jetten himself has defended the minority government as a boon to democracy
because it will allow opposition parties a greater say.
But some argue that presents too rosy a picture, pointing out that the last
formal minority government in 1939 collapsed after only two days.
A minority government is like “driving on the wrong side of the road,” political
historian Kemal Rijken told Dutch public radio. “It’s quite dangerous and
risky.”
Presumably, a minority government was not Jetten’s first choice, either. The
logical alternative would have been to include GL-PvdA, but the VVD torpedoed
that possibility, rejecting the left-wing party as too “radical.”
“The problem in The Hague is that parties that should be able to work together
exclude each other,” explained Simon Otjes, аn associate professor of Dutch
politics at Leiden University.
Another option would have been to invite the far-right JA21 party into the
coalition, but that would have come at the steep price of alienating Jetten’s
progressive voter base.
COBBLING TOGETHER COALITIONS
Jetten’s minority government might represent less of a sea-change than it might
seem at first glance. Haggling for political support from unlikely allies has,
in recent years, been a fixture of Dutch politics.
While the last official minority government was in 1939, the liberal Mark Rutte
formed a highly unorthodox arrangement in 2010 in which he relied on the support
of anti-Islam firebrand Wilders.
Consecutive Dutch governments have since ruled with coalitions that, at some
stage during their term, were forced to make do with minority support after one
of the coalition parties pulled out, or lacked a clear majority in one or other
chambers of parliament, Otjes noted.
“Every coalition has needed support from opposition parties to make laws and
that remains unchanged,” he said.
Moreover, on several core issues, finding an agreement might not present too
much of a challenge.
On migration, for example, the coalition is likely to look for, and find,
support on the far-right flank. On the other hand, it is likely to turn to the
GL-PvDA for support on climate and measures to cut back nitrogen emissions from
farms.
There’s also widespread support for its plans to boost defense spending to meet
NATO targets.
Analysts point out, however, it will be much harder to get parties to agree to
the far-reaching cuts to social spending, whether on the left or the far right,
leaving the foundation underpinning Jetten’s plans resting on quicksand.
Jetten’s own answer to bridging deep political division is humility.
In selecting his ministers, Jetten said he looked for those “who are able to
listen and don’t have all too big an ego.”
But the new prime minister himself risks becoming the greatest casualty of the
political tightrope exercise.
The main risk is that left-wing voters who helped him to victory in last
October’s election might change their minds in light of what looks to be his
government’s overwhelmingly right-wing agenda.
Jetten can celebrate today. But from Tuesday, the hunger games begin.
BRUSSELS — Next up on Ursula von der Leyen’s trade to-do list: Australia.
The EU’s ally Down Under is ready to tango again as Donald Trump’s tariffs push
the rest of the world closer together. Both Brussels and Canberra worry about
China. And they already see eye-to-eye on issues, ranging from research funding
to defense cooperation.
The EU and Australia came close to a deal in October 2023, on the sidelines of a
G7 meeting in Osaka, Japan. But Aussie Trade Minister Don Farrell pulled out at
the last minute under pressure from the beef lobby back home.
Sticking points remain: access for Australian beef and lamb to the European
market; EU trade protections on specialty foods; critical minerals; and an
Australian tax on luxury cars.
Farrell visits Brussels on Thursday to meet the EU’s trade and agriculture
commissioners, Maroš Šefčovič and Christoph Hansen. Only if they resolve those
differences would the Commission chief get to fly to Australia to finally
conclude a formal agreement.
“I don’t do bad deals,” Farrell said before heading to Brussels.
Here are five issues that need to be sorted out for a good deal to happen:
ANGRY FARMERS
The biggest obstacle is whether the EU will grant more access to Australian farm
produce, chiefly beef and lamb. Farrell needs a deal he can sell to vocal
farmers back home who effectively blocked the deal just over two years ago.
It’s not only meat but also sugar, rice and dairy — even though quotas for those
are less sensitive. The Australian National Farmers’ Federation said this week
that it’s still looking for “significantly increased access” on all of those
fields.
The crux here: Australia might want more, but if the EU gives more it risks the
ire of European farmers ready to protest on the doorstep of the Berlaymont. The
European Parliament’s referral of the EU’s agri-heavy deal with the Latin
American Mercosur bloc for judicial review adds to the uncertainty.
PROTECTING PARMIGIANO
While the matter of protected European products on the market down under was all
but solved in 2023, it’s likely this chapter will return to haunt negotiators.
Australia knows very well how to use anything the EU says against it: Nothing is
agreed until everything is agreed, after all.
Canberra signaled it was ready to set up its own version of Europe’s system of
geographical indications. These, for instance, denote that Champagne can only be
called that when it’s made in the eponymous region of France. They are also some
non-Greek supermarkets that have to resort to calling their feta imitations
“white cheese.”
Australia might want more, but if the EU gives more it risks the ire of European
farmers ready to protest on the doorstep of the Berlaymont. | Geoffroy van der
Hasselt/AFP via Getty Images
Australia is a peculiar case because, for example, Italian-heritage farmers have
made parmesan cheese for generations in the same way as around Parma. They could
now face limits on what they can call their product — but probably not
Parmigiano Reggiano. A likely solution would allow established brands to
continue to use product names for a grace period.
This is why prosecco, pecorino, parmesan and feta are still under discussion,
the Australian Associated Press reports.
On the flip side, the EU usually offers to protect some of the other side’s
products on its own market. Let’s hope they don’t come after our flat whites.
RAW MATERIALS (AND THEIR PRICE)
Australia holds the world’s largest lithium reserves but lacks the refining
capacity to monetize them. As a result, China processes virtually all of the raw
lithium that Australia produces, enabling Beijing to dominate global supply.
Brussels and Canberra continued talking on this topic after the Osaka debacle,
concluding a memorandum of understanding in early 2024. Australia is also a
partner in Europe’s RESourceEU program to reduce dependencies on a subset of
critical raw materials. And the European Investment Bank is teaming up with
Australia.
Ideally, a trade deal would unlock exports from Australia to Europe and also
boost the confidence of European companies to invest in local refining capacity.
This is true not only for lithium, but also uranium, silver, bauxite used for
aluminum, and a host of others.
It cuts both ways: One example of an existing project getting a boost is the
Australian-owned lithium producer Vulcan Energy in Germany.
So is this really a hurdle? There’s a technical one: Europe wants to avoid a
dual pricing system for critical raw materials (and energy sources like natural
gas) that favors domestic customers. Australia hasn’t signaled it’s ready to end
the practice, however.
TAXING LUXURY CARS
Australia still taxes luxury vehicle imports — a relic of a bygone era when it
still had a car industry of its own. The tax is a 33 percent charge on models
above a certain price threshold.
There’s also a 5 percent import duty on all foreign cars. Trading partners that
have deals with Canberra — like Korea and Japan — saw that removed but are still
charged the luxury car tax.
The potential is there: Japan sold $8 billion worth of vehicles to Australia in
2024, with German only in fifth position at $2 billion.
While the EU would love to pave the way for more high-end German autos to be
sold Down Under, the tax is domestic legislation and not formally part of the
talks. Australia was rumored in 2023 to be willing to get rid of the tax, and
Albanese hinted at it again late last year. That could be a sweetener for the EU
to stomach a slightly higher beef quota.
THE POLITICS OF IT ALL
The EU is on a roll with new trade agreements: it has signed the Mercosur deal,
closed talks with India and an Australian win is close. The streak serves von
der Leyen’s geopolitical agenda for Europe to stand on its own two feet
economically.
On the other side of the world, Albanese is in more dire need of a win. He’s
under pressure over his response to the Bondi Beach terror attack in December.
And even though Trump only hit Australia with a 10 percent tariff, the country
needs strong alliances if it wants to weather both Chinese and American
pressure.
The same is true for Europe, which sees the deal as underlining its cultural and
historic ties with Australia, lifting an already-strong working relationship to
the next level, as with Canada. And Australia is a key member of “the West” in
the Indo-Pacific where Europe needs and wants to expand its attraction and
influence.
Zoya Sheftalovich contributed to this report.
BRUSSELS — The European Commission on Friday announced an investigation into
Slovakia over the dismantling of its whistleblower protection office.
In its latest rule-of-law spat with Bratislava, the EU executive criticized
leftist-populist leader Robert Fico for trying to replace the office with a new
institution whose leadership would be politically appointed.
“The Commission considers that this law breaches EU rules,” it wrote in an
official note on Friday.
Brussels’ move comes amid strong pressure from lawmakers and NGOs to act against
Fico’s crackdown against independent institutions and suspected fraud involving
EU farm funds.
Zuzana Dlugošová, the head of the whistleblower protection office, said that she
had repeatedly warned Slovak officials that the plans were in contradiction with
EU law.
“If expert feedback had been taken into account, Slovakia could have avoided EU
infringement proceedings. Still, we believe that this process itself can help
foster a more professional and substantive debate on how whistleblower
protection should be properly set up in Slovakia,” Dlugošová said.
Slovakia’s permanent representation in Brussels and interior ministry did not
immediately respond to POLITICO’s requests for comment.
Brussels has given Bratislava one month to respond to its queries before taking
further action — which could potentially include cutting EU payouts to Slovakia
after a multi-layered process.
Since returning to power in 2023 for a fourth term, Fico’s Smer party has taken
steps to dismantle anti-corruption institutions, including abolishing
the Special Prosecutor’s Office, which handled high-profile corruption cases,
and disbanding NAKA, an elite police unit tasked with fighting organized crime.
“The European Commission’s decision … sends a clear message: protecting
whistleblowers is not optional — it is a core obligation of every EU Member
State,” Czech MEP Tomáš Zdechovský said in written remarks to POLITICO.
Before launching the probe, the EU executive had pressed Slovakia to roll back
on its anti-democratic crackdown.
EU Budget Commissioner Piotr Serafin encouraged Fico not to dismantle the
whistleblower protection office during a meeting in Bratislava in December,
according to two Commission officials with knowledge of proceedings who were not
authorized to go on the record.
Nevertheless, in December 2025, the Slovak parliament pushed through a bill that
cut short the current director’s tenure and weakened protections for
whistleblowers. It was set to enter into force in on Jan. 1 but Slovakia’s top
court paused the disputed decision to review whether it complies with the
constitution.
German Green MEP Daniel Freund welcomed the Commission’s move but urged it to go
even further.
“The Commission needs to do more. Fico’s government has dismantled the special
prosecutor for corruption, has dismantled the national crime agency and has
changed the penal code to have hundreds of convicted corruption offenders walk
free,” Freund told POLITICO.
Slovakia is already subject to another infringement procedure, launched by the
Commission in November, over a reform that enshrines only two genders in the
constitution.
BEIJING — Dialogue between the U.K. and China is essential for “world peace,”
Chinese President Xi Jinping told Keir Starmer Thursday, heaping praise on
Britain’s center-left prime minister as the two men marked a thawing of their
relationship.
The U.K. prime minister said he wanted “more sophisticated” ties with the
world’s second-largest economy, during a visit where he is seeking growth for
the British economy and co-operation on issues such as climate change.
It is the first visit by a U.K. prime minister to China for eight years, which
has proven controversial in Britain due to concerns over Beijing’s human rights
record, economic imbalances and accusations of cyber sabotage in Britain by
Chinese entities.
But in remarks at the start of their meeting in Beijing’s Great Hall of the
People, both men avoided difficult issues and heaped praise on each other’s
countries.
After years of chilled relations under Conservative U.K. governments, Starmer
said: “China is a vital player on the global stage and it is vital to build a
more sophisticated relationship, where we can identify opportunities to
collaborate, but also to allow meaningful dialogue on areas where we disagree.”
Communist leader Xi, speaking through an interpreter, singled out Britain’s
Labour Party, saying it had in the past “made important contributions to the
growth of China-U.K. relations.” He added that there had been “twists and turns
that did not serve the interests of our countries” in recent years.
Describing the state of the world as “turbulent and fluid,” Xi said more
dialogue between the two nations was “imperative,” whether “for the sake of
world peace and stability or for our two countries’ economies and peoples.”
He added the two men would “stand the test of history” if they could rise above
their differences.
Acknowledging the furor over China in the U.K., Xi said: “Your visit this time
has drawn a lot of attention. Sometimes good things take time.
“As long as it is the right thing that serves the fundamental interests of the
country and the people, then as leaders we should not shy away from
difficulties.”
Starmer has tried to take a more measured approach than Canadian Prime Minister
Mark Carney, who warned the world order was fractured after his recent trip to
Beijing and was later threatened with tariffs by U.S. President Donald Trump.
Starmer has insisted he can pursue trade with the U.S., EU and China at the same
time in a way that protects national security.
The U.K. prime minister said he wanted to focus on “global stability and
security, growth and shared challenges like climate change.”
Starmer did not raise specific human rights concerns or policy detail during his
brief on-camera remarks, though he did make reference to having “meaningful
dialogue” on areas where the countries disagree.
Ahead of the meeting, Starmer declined to say whether he would raise Russia’s
war in Ukraine with Xi, or whether he would ask the Chinese leader to put
pressure on Russian President Vladimir Putin to end the fighting.
China and the U.K. are due to sign a series of deals later on Thursday. They are
expected to cover areas including visa-free travel and mutual recognition of
professional qualifications, but collaboration on deeper technology including
wind farms appeared less likely.
LONDON — Keir Starmer is off to China to try to lock in some economic wins he
can shout about back home. But some of the trickiest trade issues are already
being placed firmly in the “too difficult” box.
The U.K.’s trade ministry quietly dispatched several delegations to Beijing over
the fall to hash out deals with the Chinese commerce ministry and lay the
groundwork for the British prime minister’s visit, which gets going in earnest
Wednesday.
But the visit comes as Britain faces growing pressure from its Western allies to
combat Chinese industrial overproduction — and just weeks after Starmer handed
his trade chief new powers to move faster in imposing tariffs on cheap,
subsidized imports from countries like China.
For now, then, the aim is to secure progress in areas that are seen as less
sensitive.
Starmer’s delegation of CEOs and chairs will split their time between Beijing
and Shanghai, with executives representing City giants and high-profile British
brands including HSBC, Standard Chartered, Schroders, and the London Stock
Exchange Group, alongside AstraZeneca, Jaguar Land Rover, Octopus Energy, and
Brompton filling out the cast list. Starmer will be flanked on his visit by
Trade Secretary Peter Kyle and City Minister Lucy Rigby.
Despite the weighty delegation, ministers insist the approach is deliberately
narrow.
“We have a very clear-eyed approach when it comes to China,” Security Minister
Dan Jarvis said Monday. “Where it is in our national interest to cooperate and
work closely with [China], then we will do so. But when it’s our national
security interest to safeguard against the threats that [they] pose, we will
absolutely do that.”
Starmer’s wishlist will be carefully calibrated not to rock the boat. Drumming
up Chinese cash for heavy energy infrastructure, including sensitive wind
turbine technology, is off the table.
Instead, the U.K. has been pushing for lower whisky tariffs, improved market
access for services firms, recognition of professional qualifications, banking
and insurance licences for British companies operating in China, easier
cross-border investment, and visa-free travel for short stays.
With China fiercely protective of its domestic market, some of those asks will
be easier said than done. Here’s POLITICO’s pro guide to where it could get
bumpy.
CHAMPIONING THE CITY OF LONDON
Britain’s share of China’s services market was a modest 2.7 percent in 2024 —
and U.K. firms are itching for more work in the country.
British officials have been pushing for recognition of professional
qualifications for accountants, designers and architects — which would allow
professionals to practice in China without re-licensing locally — and visa-free
travel for short stays.
Vocational accreditation is a “long-standing issue” in the bilateral
relationship, with “little movement” so far on persuading Beijing to recognize
U.K. professional credentials as equivalent to its own, according to a senior
industry representative familiar with the talks, who, like others in this
report, was granted anonymity to speak freely.
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so. | Jessica
Lee/EPA
Britain is one of the few developed countries still missing from China’s
visa-free list, which now includes France, Germany, Italy, Spain, the
Netherlands, Switzerland, Australia, New Zealand, Japan, Saudi Arabia, Russia
and Sweden.
Starmer is hoping to mirror a deal struck by Canadian PM Mark Carney, whose own
China visit unlocked visa-free travel for Canadians.
The hope is that easier business travel will reduce friction and make it easier
for people to travel and explore opportunities on the ground — it would allow
visa-free travel for British citizens, giving them the ability to travel for
tourism, attend business conferences, visit friends and family, and participate
in short exchange activities.
SMOOTHING FINANCIAL FLOWS
The Financial Conduct Authority’s Chair Ashley Alder is also flying out to
Beijing, hoping to secure closer alignment between the two countries’ capital
markets. He’ll represent Britain’s financial watchdog at the inaugural U.K-China
Financial Working Group in Beijing — and bang the drum for better market
connectivity between the U.K. and China.
Expect emphasis on the cross-border investments mechanism known as the
Shanghai-London and Shenzhen-London Stock Connect, plus data sovereignty issues
associated with Chinese companies jointly listing on the London Stock Exchange,
two figures familiar with the planning said.
The Stock Connect opened up both markets to investors in 2019 which, according
to FCA Chair Ashley Alder, led to listings worth almost $6 billion.
“Technical obstacles have so far prevented us from realizing Stock Connect’s
full potential,” Alder said in a speech last year. Alder pointed to a memorandum
of understanding being drawn up between the FCA and China’s National Financial
Regulatory Administration, which he said is “critical” to allow information to
be shared quickly and for firms to be supervised across borders. But that raises
its own concerns about Chinese use of data.
“The goods wins are easier,” said a senior British business representative
briefed on the talks. “Some of the service ones are more difficult.”
TAPPING INTO CHINA’S BIOTECH BOOM
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment.
China, once known mainly for generics — cheaper versions of branded medicine
that deliver the same treatment — has rapidly emerged as a pharma powerhouse.
According to ING Bank’s global healthcare lead, Stephen Farrelly, the country
has “effectively replaced Europe” as a center of innovation.
ING data shows China’s share of global innovative drug approvals jumped from
just 4 percent in 2014 to 27 percent in 2024.
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment. | John G. Mabanglo/EPA
Several blockbuster drug patents are set to expire in the coming years, opening
the door for cheaper generic competitors. To refill thinning pipelines,
drugmakers are increasingly turning to biotech companies. British pharma giant
GSK signed a licensing deal with Chinese biotech firm Hengrui Pharma last July.
“Because of the increasing relevance of China, the big pharma industry and the
U.K. by definition is now looking to China as a source of those new innovative
therapies,” Farrelly said.
There are already signs of progress. Science Minister Patrick Vallance said late
last year that the U.K. and China are ready to work together in
“uncontroversial” areas, including health, after talks with his Chinese
counterpart. AstraZeneca, the University of Cambridge and Beijing municipal
parties have already signed a partnership to share expertise.
And earlier this year, the U.K. announced plans to become a “global first choice
for clinical trials.”
“The U.K. can really help China with the trust gap” when it comes to getting
drugs onto the market, said Quin Wills, CEO of Ochre, a biotech company
operating in New York, Oxford and Taiwan. “The U.K. could become a global gold
stamp for China. We could be like a regulatory bridgehead where [healthcare
regulator] MHRA, now separate from the EU since Brexit, can do its own thing and
can maybe offer a 150-day streamlined clinical approval process for China as
part of a broader agreement.”
SLASHING WHISKY TARIFFS
The U.K. has also been pushing for lowered tariffs on whisky alongside wider
agri-food market access, according to two of the industry figures familiar with
the planning cited earlier.
Talks at the end of 2024 between then-Trade Secretary Jonathan Reynolds and his
Chinese counterpart ended Covid-era restrictions on exports, reopening pork
market access.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate.
“The whisky and brandy issue became China leverage,” said the senior British
business representative briefed on the talks. “I think that they’re probably
going to get rid of the tariff.”
It’s not yet clear how China would lower whisky tariffs without breaching World
Trade Organization rules, which say it would have to lower its tariffs to all
other countries too.
INDUSTRIAL TENSIONS
The trip comes as the U.K. faces growing international pressure to take a
tougher line on Chinese industrial overproduction, particularly of steel and
electric cars.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate. | Yonhap/EPA
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so.
There’s a deal “in the works” between Chinese EV maker and Jaguar Land Rover,
said the senior British business representative briefed on the talks quoted
higher, where the two are “looking for a big investment announcement. But
nothing has been agreed.” The deal would see the Chinese EV maker use JLR’s
factory in the U.K. to build cars in Britain, the FT reported last week.
“Chinese companies are increasingly focused on localising their operations,”
said another business representative familiar with the talks, noting Chinese EV
makers are “realising that just flaunting their products overseas won’t be a
sustainable long term model.”
It’s unlikely Starmer will land a deal on heavy energy infrastructure, including
wind turbine technology, that could leave Britain vulnerable to China. The U.K.
has still not decided whether to let Ming Yang, a Chinese firm, invest £1.5
billion in a wind farm off the coast of Scotland.