BRUSSELS — The European Union needs to draft in Mario Draghi, the mastermind
behind reforms to revive its single market, to ensure that member countries
rally behind efforts to boost growth and prosperity, a senior European lawmaker
said Tuesday.
Member countries should “mandate Draghi” to build political consensus for reform
and pierce through national “deep state” resistance to force a radical rethink
of the single market project, Pascal Canfin, a French Renew MEP, told POLITICO’s
Competitive Europe Summit in Brussels.
“We need somebody that could do so at the very top level, with heads of state
and government and quite deep state level,” Canfin said, arguing that the bloc
has reached a “historical crossroads” where it must choose between deeper
integration or economic irrelevance.
In 2024, the former Italian Prime Minister and head of the European Central Bank
delivered a report on Europe’s competitiveness deficit that one commissioner has
referred to as the “bible” for Ursula von der Leyen’s second Commission.
EU leaders backed a plan to relaunch the 30-year old single market — with its
freedoms in the movement of goods, capital, services and people — at a summit
earlier this month.
According to Canfin, Draghi’s work is not yet done, and the former Italian
leader could build a “coalition of the willing” of member states willing to
integrate their economies. Canfin also suggested that the requirement for
consensus among all 27 member states has become a challenge.
“It’s not an objective not to do it at 27, but maybe at the end, we will not be
able to do it for political reasons,” Canfin said, specifically citing the
frequent vetoes and disruptions caused by Hungarian Prime Minister Viktor
Orbán.
The move toward a multi-speed Europe is increasingly viewed by proponents of
integration as the only way to compete with the massive industrial subsidies and
streamlined decision-making of the United States and China.
Canfin described a recurring cycle of political failure where national leaders
travel to Brussels and make commitments, only to see them disassembled at home.
“They go to Brussels … then they go back home, and there are all the people
locally, in Paris, in Berlin, in Rome, in Madrid, saying the opposite,” Canfin
said. “Including in the deep state, including in some companies that have built
the knowledge to manage and navigate complexity.”
Canfin identified three obvious candidates for accelerated integration: defense,
energy, and finance.
“The political will has always been in the hands of the capitals,” Canfin said.
“Technical, yes, but today, would we be politically able?”
Tag - Services
BRUSSELS — The United States wants to engage in a meaningful dialogue with
Brussels on reducing European tech regulation, its Ambassador to the EU Andrew
Puzder told POLITICO.
The U.S. administration and its allies have been vocal critics of the EU’s tech
rules, saying they unfairly target American companies and hurt freedom of
speech. The European Commission has repeatedly denied such allegations, saying
it is merely trying to rein in Big Tech and protect the online space from
harmful behavior.
In an interview Monday, Puzder said he hoped that this week’s vote in the
European Parliament to advance last year’s transatlantic trade deal would set
the scene for talks to loosen constraints on business.
“I’ve had talks with individuals within the EU about moving this discussion
forward. I haven’t, as yet, experienced the concrete steps we need to make that
happen,” Puzder said. He was referring to the EU’s tech rulebook — and the
Digital Services Act and the Digital Markets Act in particular — that Washington
sees as barriers to trade.
“Hopefully, we’ll continue to talk. Once this trade agreement is approved, in
the spirit of moving forward with these non-tariff trade barriers, we’ll be able
to break down some of these walls,” he added.
Discussions are still in their very early stages and “there’s nothing formal,”
Puzder clarified. The next steps between Brussels and Washington should be
“diplomatic engagement followed by political engagement,” he added.
RECALIBRATION NEGOTIATION
The envoy’s comments follow a heated series of exchanges between senior American
and European officials over whether the EU’s tech rules should even be part of
the transatlantic trade discussion.
In November 2025, Commerce Secretary Howard Lutnick tied a potential easing of
U.S. steel and aluminum tariffs to a “recalibration” by the EU of the bloc’s
digital regulations.
European Commission Executive Vice President Teresa Ribera responded that tying
tariff relief to European tech rules amounted to “blackmail.”
Ribera, the EU’s top competition official, told POLITICO at the time that the EU
would not accept such attempts to strong-arm it on a topic that it considers to
be a matter of sovereignty. She is currently visiting the U.S. and is due to
meet tech industry bosses in San Francisco this week.
Transatlantic ties took another turn for the worse when the Donald Trump
administration in December barred former Industry Commissioner Thierry Breton
from traveling to the U.S. over his role in creating and implementing the EU’s
tech rules.
Puzder explained that Washington doesn’t think “that Europe shouldn’t have
regulation,” but that it shouldn’t be “regulating in such an extreme manner that
companies feel they can’t innovate — which is why … most of the tech startups in
Europe end up moving to Silicon Valley.”
European Commission Vice President Teresa Ribera attends a press conference in
Brussels on Feb. 25, 2026. | Dursun Aydemir/Anadolu via Getty Images
Responding, the European Commission stressed there is “continued engagement”
between the EU and the U.S.
“Executive Vice President [Henna] Virkkunen has held several meetings with U.S.
Representatives, both in Europe and in the U.S. At technical level, our teams
also engage on a continuous basis with their American counterparts,”
spokesperson Thomas Regnier said in a statement to POLITICO.
Virkunnen’s remit covers technology policy.
Before Trump’s return to the White House, the two sides held held a structured
dialogue under the auspices of the now-defunct EU-U.S. Trade and Technology
Council.
The occasional forum, launched by former U.S. President Joe Biden, sought to
establish a structured dialogue around regulatory cooperation. Yet in the view
of observers it under-delivered, failing for instance to resolve a long-running
steel dispute. The TTC has not met since Trump returned to the White House in
early 2025.
LONDON — Police launched an investigation Monday after four ambulances belonging
to a Jewish community ambulance service were set on fire in north London.
The Metropolitan Police were called to Golders Green, where there is a large
Jewish community, early Monday after four Hatzalah ambulances were set alight.
In a statement the Met said the arson attack is being treated as an “antisemitic
hate crime.”
Keir Starmer condemned the “deeply shocking antisemitic arson attack.”
Writing on X, the British prime minister said: “My thoughts are with the Jewish
community who are waking up this morning to this horrific news. Antisemitism has
no place in our society.”
Health Secretary Wes Streeting echoed Starmer’s comments calling the event a
“sickening attack on Jewish ambulances.” He urged the public to “stand together
against antisemitic hatred.”
No injuries were reported and the fires have since been put out, but nearby
houses were evacuated as a precaution.
Explosions linked to the attack were also reported. The Met said it believes
those were linked to gas canisters on the ambulances.
The attack comes months after two people were killed in a terrorist attack at a
Manchester synagogue last October.
Superintendent Sarah Jackson said police are looking for three suspects.
“We know this incident will cause a great deal of community concern and officers
remain on scene to carry out urgent enquiries,” she added.
Polish Prime Minister Donald Tusk on Sunday said a media report alleging
Hungary’s foreign minister regularly called his Russian counterpart to brief him
during EU summits “shouldn’t come as a surprise to anyone.”
“We’ve had our suspicions about that for a long time,” Tusk posted on social
media network X. “That’s one reason why I take the floor only when strictly
necessary and say just as much as necessary.”
The Washington Post in a story published Saturday quoted an anonymous European
security official as saying that Hungarian Foreign Minister Péter Szijjártó made
regular phone calls during breaks at EU summits to provide his Russian
counterpart, Sergei Lavrov, with “live reports on what’s been discussed” and
possible solutions. POLITICO has not independently verified the story.
Szijjártó denied the claims in a post on X on Sunday, calling it “fake news.”
Szijjártó was responding to a X post by Poland’s Foreign Minister and Deputy
Prime Minister Radosław Sikorski that referenced the Washington Post claim.
“This would explain a lot, Peter. @FM_Szijjarto,” Sikorski wrote.
“Fake news as always,” Szijjártó responded to Sikorski. “You are telling lies in
order to support Tisza Party to have a pro-war puppet government in Hungary. You
will not have it!”
The Post’s story also said that Russia’s foreign intelligence service (SVR) had
proposed staging an assassination attempt against Hungarian Prime Minister
Viktor Orbán to boost plummeting public support ahead of next month’s
parliamentary election in that country. It cited an “an internal report for the
SVR obtained and authenticated by a European intelligence service and reviewed
by The Washington Post.”
Orbán goes head to head in the polls next month with conservative opposition
leader Péter Magyar, for the Tisza Party, who has emerged as a serious
challenger.
Szijjártó extended his defense against the allegations in a post on Facebook.
Hungarians can “see clearly that this fake news, these lies that are part of
Ukrainian propaganda, are not created for anything else, except to support the
Tisza Party in the Hungarian election and to influence the outcome of the
elections,” Szijjártó said on Facebook.
Magyar weighed into the controversy on the campaign trail. “The fact that the
Hungarian foreign minister, a good friend of Sergei Lavrov, reports to the
Russians almost every minute about every EU meeting is pure treason,” Magyar
said in the Hungarian village of Nyúl, as reported by Hungarian outlet Telex.
“This man has betrayed not only his country, but Europe.”
Democrats in the U.S. are skewering President Donald Trump after he proclaimed
on Saturday that he was glad former special counsel Robert Mueller had died.
“Every day, this president shows his basic indecency and unfitness for office,”
Sen. Adam Schiff (D-Calif.) wrote on X in response to Trump’s statement.
The diatribe, in which Trump said he was “glad he’s dead” because he “can no
longer hurt innocent people,” drew fierce condemnation from Democrats.
“The cruelty is the point,” Democratic Senate Minority Leader Chuck Schumer
wrote on X. “Trump’s goal is to distract you from rising gas prices, his aimless
war, ICE abuses, and the Epstein files. Don’t give him what he wants. And may
Robert Mueller, a US Marine and lifelong public servant, rest in peace.”
Mueller and the president, Rep. Dan Goldman (D-N.Y.) wrote on X Saturday,
“represent polar opposites of what a public servant should be.”
“Yet the President of the United States disgustingly celebrates Mueller’s death
simply because he exposed Trump’s efforts to steal the 2016 election,” Goldman
said.
At least one Republican also condemned Trump’s post.
“It is clearly wrong and unchristian behavior,” Rep. Don Bacon (R-Neb.) said in
a text to POLITICO when asked about Trump’s statement. “The vast majority of
Americans want better.”
The reactions weren’t limited to condemnation of Trump. Sen. Cory Booker
(D-N.J.) called Mueller a “dedicated and honorable public servant” on X, and
Republican Rep. Mike Turner of Ohio, in a statement that offered some criticism
of Mueller’s handling of the Russia investigation, said he was nonetheless
“committed to the truth” as special counsel.
“Bob Mueller was one of the finest directors in the history of the FBI,
transforming the bureau after 9/11 and saving countless lives,” former President
Barack Obama wrote on X. “But it was his relentless commitment to the rule of
law and his unwavering belief in our bedrock values that made him one of the
most respected public servants of our time. Michelle and I send our condolences
to Bob’s family, and everyone who knew and admired him.”
Former President George Bush said Mueller “led the agency effectively” in the
wake of the Sept. 11, 2001, terrorist attacks.
“Laura and I are deeply saddened by the loss of Robert Mueller. Bob dedicated
his life to public service,” Bush said, later adding that he and former first
lady Laura Bush “send our heartfelt sympathy to his wife of nearly 60 years,
Ann, and the Mueller family.”
Some Republicans aligned with Trump offered support for his blistering attack.
Far-right activist Laura Loomer wrote that Trump “said what everyone is
thinking” about Mueller. Meanwhile, Roger Stone, a onetime Trump adviser, posted
on X that “the judgement of Robert Mueller has moved to a much higher court.”
Mueller, who died on Friday night at 81 years old, served as the director of the
Federal Bureau of Investigation under Bush and Obama. He gained national
attention for investigating the 2016 Trump campaign’s ties to Russia during the
president’s first term.
In 1968, Mueller joined the Marines, where he was deployed to Vietnam and
received the Bronze Star for saving a fellow Marine under fire. He was later
shot and awarded the Purple Heart.
While the Mueller report ultimately “did not establish” criminal collusion
between the Trump campaign and the Russian government, the special counsel found
that Russia attempted to interfere in the 2016 election to benefit Trump.
The president has since attacked Mueller and Democrats, whom he says perpetuated
a Russia collusion “hoax.”
The Trump administration is doubling down on its endorsement of Hungarian leader
Viktor Orbán in next month’s Hungarian elections, even as Orbán’s deal-blocking
in Brussels has been labeled “unacceptable” by EU peers.
U.S. President Donald Trump on Saturday reiterated his “complete and total
endorsement” of Orbán in the Hungarian elections. And U.S. Vice President JD
Vance is reportedly due to fly to Budapest in April in support of the prime
minister.
The EU’s longest-serving leader, facing an election in less than a month that he
is forecast to lose, has long been a thorn in the side of Brussels. In the
latest stand-off against his European counterparts, Orbán held hostage a €90
billion loan to Ukraine this week over an oil dispute.
“The prime minister has been a strong leader whose shown the entire world what’s
possible when you defend your borders, your culture, your heritage, your
sovereignty and your values,” Trump said in a video address to the Conservative
Political Action Conference (CPAC) taking place in Hungary on Saturday.
Trump praised Hungary’s “strong borders” and said the country will continue to
“work very hard on immigration,” and said Europe has to “work very hard” to
solve “a lot of problems” around immigration.
The American president said that Hungary and the U.S. are “showing the way
toward a revitalized West,” and would also work “hard together on energy.”
Vance is planning an April trip to Budapest just ahead of the Hungarian
elections in a show of support for Orbán, Hungarian Foreign Minister Peter
Szijjarto confirmed in a podcast on Friday. Reuters first reported on Vance’s
planned trip to Budapest.
TOULOUSE, France — The prospect of the hard-left France Unbowed party taking
control of Toulouse, France’s fourth-largest city and home to Europe’s
best-known airplane maker, is putting industry on edge.
It’s not just that a win in the second round of local elections Sunday could
give the party’s anticapitalist leader, Jean-Luc Mélenchon, a major boost ahead
of next year’s presidential election. That’s a concern for later.
The immediate fear is that if France Unbowed makes history here — the party has
never come close to controlling such a big metropolis — it will heap taxes on
local icons like Airbus to pay for a generous manifesto that includes water
subsidies, free public transport for residents under 26 years old, and free
school meals and educational supplies.
“I’m concerned it will jeopardize plans for new firms and factories to open in
Toulouse, including the future prospects of Airbus,” said Pierre-Olivier Nau,
the president of the employers’ lobby MEDEF in the Haute-Garonne department,
which includes Toulouse.
Nau also worries that the hard left’s opposition to adding a high-speed rail
connection between Bordeaux and Toulouse, due to cost at least €14 billion, will
harm businesses that have been expecting it a long time. France Unbowed’s
mayoral hopeful argues the project will damage the environment and push up rents
in Toulouse by attracting commuters or remote workers from other cities with
higher salaries.
A TIGHT RACE
MEDEF and other business lobbies are now scrambling to react, given France
Unbowed was never expected to get this close to power in Toulouse.
Its candidate, lawmaker François Piquemal, was polling behind his Socialist
Party rival François Briançon in the run-up to the first round of the vote last
Sunday. The Socialist leadership had vowed not to work with the hard left after
the torrent of criticism unleashed against Mélenchon following accusations of
antisemitic behavior and his unapologetic reaction to the death of a far-right
activist.
So Piquemal’s second-place finish and his quickly formed alliance with Briançon
to topple the longtime center-right mayor, Jean-Luc Moudenc, came as a surprise.
The runoff is expected to be close. A poll released Thursday showed Moudenc
winning by just two points in the second round, within the margin of error.
Two local employers’ lobbies recently slammed the hard left’s plans for
Toulouse, and a group of 350 local celebrities, including rugby luminaries and
business owners, signed an open letter calling on citizens to vote against
France Unbowed.
“A lot of business projects have been put on hold,” said Nau.
Piquemal says this is scaremongering. The 41-year-old former teacher denied he
will raise taxes and downplayed talk among business leaders that Airbus, the
region’s dominant employer responsible for more than 200,000 direct and indirect
jobs, would reduce investments or shift facilities if he were elected. Airbus
declined a request for comment.
A general view shows an entrance of the Airbus Defence and Space campus in
Toulouse on October 16, 2024. | Ed Jones/AFP via Getty Images
“Moudenc’s policies, but also [President Emmanuel] Macron’s policies, have
worsened living conditions in Toulouse,” Piquemal told reporters in Toulouse on
Thursday.
“We are the ones who support jobs, we support companies,” he added. “We are the
ones defending small shop owners against big corporations.”
A soft-spoken man with a light beard and warm manner, Piquemal is characteristic
of the new generation of radical left activists in France. He’s just as
comfortable discussing toxic masculinity and making videos on TikTok as he is
campaigning for rent controls or against Israel’s war in Gaza. He was aboard the
so-called Freedom Flotilla with Greta Thunberg and MEP Rima Hassan, carrying aid
to Gaza before they were all arrested by Israeli forces.
Piquemal, however, is much more understated than his party’s flamethrowing
leader. But he’s benefiting from the success of Mélenchon’s adversarial approach
to politics.
France Unbowed is trying to establish itself as the ultimate anti-establishment
party ahead of what is expected to be a showdown with the far right in next
year’s presidential election. Most polls show Marine Le Pen and Jordan
Bardella’s party, the National Rally, is currently the favorite in the race for
the Elysée.
“France Unbowed is the most solid, the best-placed to build a barrage against
the far right,” said Ismael Youssouf-Huard, a France Unbowed activist and
candidate for the Toulouse city council.
“Mélenchon is the sensible choice against the National Rally,” he said.
Results in the first round of voting have gone some way toward validating
Mélenchon’s provocative approach. France Unbowed won the poor, diverse city of
Saint-Denis in the Paris suburbs outright in the first round and is on track to
score the mayor’s job in the industrial northeastern city of Roubaix.
Hard-left candidate François Piquemal talking to voters in the impoverished
Reynerie neighbourhood in Toulouse. | Clea Caulcutt/POLITICO
The election in Toulouse is seen as a major test case for Mélenchon ahead of the
2027 presidential election. Can he and his party confirm its leadership role on
the left ahead of the presidential election or will more moderate voters, turned
off by the hard left’s radicalism, flock toward the opposition?
‘ARE YOU READY FOR SUNDAY?’
At a market squashed between a burnt-out drug dealers’ den and a tower block in
the Reynerie neighborhood, Piquemal is trying to get people to vote.
“Are you ready for Sunday?” he asked, as he handed out leaflets. “You need to go
and vote.”
In the Reynerie market, shoppers are pleased to see him.
“I’m so happy he did well in the first round,” said Claude Compas, a retired
special education teacher.
Thibaut Cazal, a leftwing candidate for the city council, hopes to beat
abstention in the poorer neighbourhoods of Toulouse. | Clea Caulcutt/POLITICO
But some voters are worried about the prospect of the far left running the city.
“They say they’ll give free public transport to the youth, but nothing’s free,”
said retiree Abdallah Taberkokt. “Who’s going to pay? We are.”
Piquemal was generally warmly received — little surprise considering Reynerie
swung heavily for him in the first round of the vote.
Still, Piquemal thought there was more excitement than usual in his core
constituencies. He said he was harnessing “greater momentum” than during the
last local election six years ago, when Moudenc narrowly defeated a more
moderate candidate backed by a united left.
Piquemal’s supporters believe their champion will pave the way for a unified
left, despite the fact that the first round of voting exposed deep divisions
nationally over local alliances with Mélenchon and the hard left.
“These local elections are going to make history,” said Thibaut Cazal, a
candidate for councilor alongside Piquemal. “It’ll show that left-wing families
can be reconciled.”
France Unbowed may still fall short in Toulouse. But even if it does, the party
will have proved that it cannot be ignored ahead of the big presidential
showdown in 2027.
LONDON — U.K. Home Secretary Shabana Mahmood has been warned her planned
overhaul of settlement rules for migrants will not save the £10 billion she has
claimed.
Instead, the policy to drastically increase the length of time migrants must
wait before gaining permanent residency could end up costing the Treasury
billions, according to a private briefing note shared with the Home Office and
obtained by POLITICO.
The document, drawn up by the IPPR think tank where Mahmood made the case for
her reforms earlier this month, is being used by Labour MPs to pressure for a
rethink of the policy. A leading critic said it totally “dismantles” her
financial argument.
In her speech, Mahmood cited increased welfare costs from the 196,000 migrants
on health and social care visas and their dependents who arrived during a
post-Brexit immigration spike, and who are expected to start getting settled
status soon, as a key reason for the overhaul.
Under her proposals, care workers would have to wait around 15 years before
being eligible for indefinite leave to remain (ILR), up from the current five
years.
“If we do not, we will see a £10 billion pound drain on our public finances and
further strain on public services, like housing and healthcare, already under
immense pressure,” Mahmood said.
But the progressive think tank, which is well-connected in Labour circles,
argues the Home Office’s calculations are flawed for four reasons.
The department’s figure is based on the cost of welfare spending over the
individuals’ lifetimes.
But the IPPR points out that estimates from the government’s own Migration
Advisory Committee (MAC) show dependents making net positive financial
contributions until they stop working, claim the state pension and start having
higher health costs.
Though Mahmood’s proposals will lengthen the time it takes them to gain access
to the welfare system, the change “will not make a significant difference to the
lifetime fiscal impact” of these migrants, according to the report.
“The only way this policy would significantly bring down the £10 billion
lifetime fiscal cost is if it led to large numbers of care workers and
dependents leaving the U.K. before they reached the qualifying period for
settlement,” the IPPR says. As it stands, that’s not the case Mahmood is making.
The primary reason care workers make a negative net lifetime financial
contribution is because they are poorly paid. Gaining settlement would allow
them to earn more by opening the door to work in any occupation. But delaying
this traps them in lower-paid work for longer, the document argues.
“The overall fiscal impact of the proposed earned settlement reforms should
therefore consider the potential costs of lower tax contributions from the care
worker cohort while they wait for settlement, as well as the fiscal benefits of
restricting access to public funds for longer,” the IPPR says.
If indeed the policy is to encourage care workers and their dependents to leave
the U.K. in large numbers then the briefing argues it could in fact add to
costs.
Estimates by the MAC, which advises the Home Office, point out that their adult
dependents are net positive contributors for 20 — and it’s only after around 40
years that they make a cumulative net negative financial impact to the British
state.
“Given the [Treasury’s] fiscal rules work to a 5-year horizon, the emigration of
care workers would make it harder — not easier — for the Treasury to meet its
fiscal targets,” the IPPR argues.
‘DISMANTLES THE RATIONALE’
The briefing also digs into the wider “earned settlement” policy. Estimates of
the effects are hard to ascertain because behavioral impacts are uncertain. But
last year’s immigration white paper was accompanied by an illustrative example
of a drop of between 10-20 per cent in skilled workers, care workers and their
dependents.
The IPPR uses this to calculate the cost to the Treasury based on that reduction
being applied to both care workers and skilled workers. They argue that this
would mean a potential cost to the exchequer of £11 billion to £22 billion over
the lifetimes of migrants granted relevant visas last year.
“Even if the policy is designed in such a way to minimise any direct effects on
skilled workers who make a positive fiscal contribution, it is possible that the
reforms will deter (and indeed may already be deterring) higher-paid workers who
seek certainty for their and their family’s status,” it says.
“Even a small impact on higher-paid skilled workers would counteract the savings
from care workers, given the per person net lifetime fiscal contribution of
skilled workers is £689,000, nearly 20 times larger than the per person net
costs of care workers.”
Leading Labour critic of the policy Tony Vaughan used the findings to argue that
Mahmood’s proposals “will be a fiscal cost to the U.K. for decades.”
“The IPPR report dismantles the rationale for this earned settlement policy,”
the MP told POLITICO.
“It would also undermine community cohesion and integration, weakening the bonds
that hold our society together. This is not a policy that can be trimmed around
the edges. It is fundamentally flawed and should be abandoned.”
POLITICO reported this week that the government is considering watering down the
proposals, potentially introducing transitions to ease the retrospective nature
of the changes that are proving most controversial among Labour MPs.
But, as critics consider parliamentary action to force a vote on the issue,
Vaughan indicated the compromises under consideration would not be enough.
“I say that as a loyal Labour MP who has never voted against the government and
who desperately wants us to succeed, but cannot in good conscience stand by and
see a policy as flawed as this, which is so strongly against our national
interest, reach the statute books,” he said.
The Home Office has yet to respond to a request for comment.
LONDON — Britain will reduce its aid sent to Africa by more than half, as the
government unveils the impact of steep cuts to development assistance for
countries across the world.
On Thursday the Foreign Office revealed the next three years of its overseas
development spending, giving MPs and the public the first look at the impact of
Labour’s decision to gut Britain’s aid budget in order to fund an increase in
defense spending.
Government figures show that the value of Britain’s programs in Africa will fall
by 56 percent from the £1.5 billion in 2024/25 when Labour took office to £677
million in 2028/9. It follows the move to reduce aid spending from 0.5 to 0.3
percent of gross national income.
However, the government did not release the details of the funding for specific
countries, giving Britain’s ambassadors and diplomats time to deliver the news
personally to their counterparts across the world ahead of any potential
backlash from allies.
Foreign Secretary Yvette Cooper told MPs that affected countries want Britain
“to be an investor, not just a donor” and “want to attract finance, not be
dependent on aid,” as she pointed to money her department had committed to
development banks and funds which will help Africa raise money.
The decision shows a substantial shift in the government’s focus, moving away
from direct assistance for countries, and funneling much of the remaining money
into international organizations and private finance initiatives.
Chi Onwurah, chair of the All Party Parliamentary Group for Africa, told
POLITICO that she was “dismayed at the level and extent of the cuts to
investment in Africa and the impact it will have particularly on health and
economic development.”
She added: “I hope the government recognizes that security of the British people
is not increased by insecurity in Africa and increased migration from Africa,
quite the opposite.”
Ian Mitchell from the Center for Global Development think tank noted the move
was “a remarkable step back from Africa by the U.K.”
NEW PRIORITIES
Announcing the cuts in the House of Commons, Cooper stressed that the decision
to reduce the aid budget had been “hugely difficult,” pointing to similar moves
by allies such as France and Germany following the U.S. President Donald Trump’s
decision to dramatically shrink America’s aid programs after taking office in
January 2025.
She insisted that it was still “part of our moral purpose” to tackle global
disease and hunger, reiterating Labour’s ambition to work towards “a world free
from extreme poverty on a livable planet.”
Cooper set out three new priorities for Britain’s remaining budget: funding for
unstable countries with conflict and humanitarian disasters, funneling money
into “proven” global partnerships such as vaccine organizations, and a focus on
women and girls, pledging that these will be at the core of 90 percent of
Britain’s bilateral aid programs by 2030.
A box with the Ukrainian flag on it awaits collection in Peterborough, U.K. on
March 10, 2022. | Martin Pope/Getty Images
Only three recipients will see their aid spending fully protected: Ukraine, the
Palestinian territories and Sudan. Lebanon will also see its funding protected
for another year. All bilateral funding for G20 countries will end.
Despite the government’s stated priorities, the scale of the cuts mean that even
the areas it is seeking to protect will not be protected fully.
An impact assessment — which was so stark that ministers claimed they had to
rethink some of the cuts in order to better protect focus areas such as
contraception — published alongside the announcement found that there will
likely be an end to programs in Malawi where 250,000 young people will lose
access to family planning, and 20,000 children risk dropping out of school.
“These steep cuts will impact the most marginalized and left behind
communities,” said Romilly Greenhill, CEO of Bond, the U.K. network for NGOs,
adding: “The U.K. is turning its back on the communities that need support the
most.”
Last-minute negotiations did see some areas protected from more severe cuts,
with the BBC World Service seeing a funding boost, the British Council set to
receive an uplift amid its financial struggles, and the Independent Commission
for Aid Impact (ICAI) — the aid spending watchdog that had been at risk of being
axed — continuing to operate with a 40 percent budget cut.
GREEN THREAT
Though the move will not require legislation to be confirmed — after Prime
Minister Keir Starmer successfully got the move past his MPs last year — MPs
inside his party and out have lamented the impact of the cuts, amid the ongoing
threat to Labour’s left from a resurgent Green Party under new leader Zack
Polanski.
Labour MP Becky Cooper, chair of the APPG on global health and security said
that her party “is, and always has been, a party of internationalism” but
today’s plans would “put Britain and the world at risk.”
Sarah Champion, another Labour MP who chairs the House of Commons international
development committee said that the announcement confirmed that there “will be
no winners from unrelenting U.K. aid cuts, just different degrees of losers,”
creating a “desperately bleak” picture for the world’s most vulnerable. “These
cuts do not aid our defense, they make the whole world more vulnerable,” she
added.
Her Labour colleague Gareth Thomas, a former development minister, added: “In an
already unsafe world, cutting aid risks alienating key allies and will make
improving children’s health and education in Commonwealth countries more
difficult.”
The announcement may give fresh ammunition to the Greens ahead of May’s local
elections, where the party is eyeing up one of its best nights in local
government amid a collapse in support for Labour among Britain’s young,
progressive, and Muslim voters.
Reacting to the news that Britain will cut its aid to developing countries aimed
at combatting climate change, Polanski said: “Appalling and just unbelievably
short-sighted. Our security here in the U.K. relies on action around the world
to tackle the climate crisis.”
BRUSSELS — Most Europeans believe the U.S. could pull the plug on technology
that Europe heavily relies on, according to a new poll.
Eighty-six percent of people think a sudden U.S. move to restrict Europe’s
access to digital services is “plausible” and “should not be ruled out,” and 59
percent called it “already a real and concrete risk,” in a survey conducted by
SWG and Polling Europe presented to European Parliament members this week.
European governments are trying to reduce their dependency on U.S. technology
for critical services like cloud, communications and AI.
One fear driving the shift to use homegrown tech is that of a “kill switch”; the
idea that U.S. President Donald Trump could force the hand of American tech
providers to cease services in Europe. Those fears peaked when the International
Criminal Court’s Chief Prosecutor Karim Khan lost access last year to his
Microsoft-hosted email account after the U.S. imposed sanctions on him.
“During the last year, everybody has really realized how important it is that we
are not dependent on one country or one company when it comes to some very
critical technologies,” the EU’s tech chief Henna Virkkunen told an audience in
Brussels earlier this year, at an event organized by POLITICO.
“In these times … dependencies, they can be weaponized against us,” Virkkunen
said.
The survey quizzed 5,079 respondents across all 27 EU member countries in
January. For 55 percent of those interviewed, charting a “European path” has
become a “central strategic issue.”
The European Parliament and a series of national government institutions have
already taken steps to move away from ubiquitous U.S. tech — though EU capitals
have cautioned the transition won’t happen overnight.
The European Commission is also finalizing a set of proposals due in late May to
reduce reliance on foreign tech, including defining what qualifies as a
sovereign provider and which critical sectors should rely exclusively on them to
safeguard European data and day-to-day operations.
The poll suggests U.S. efforts to debunk and dismiss the “kill switch” scenario
haven’t convinced Europeans.
U.S. National Cyber Director Sean Cairncross told an audience in Munich in
February that the idea that Trump can pull the plug on the internet is not “a
credible argument.”
Microsoft President Brad Smith said in Brussels last year that the “kill switch”
scenario was “exceedingly unlikely” to happen, but acknowledged it’s “a real
concern of people across Europe.” He pledged to push back against any
prospective orders to suspend operations in Europe.
U.S. firms at the same time are rushing to assuage the concerns with safeguards,
like air-gapped solutions that would prove resilient in the case of operational
disruptions.