LONDON — British ministers have been laying the ground for Keir Starmer’s
handshake with Xi Jinping in Beijing this week ever since Labour came to power.
In a series of behind-closed-door speeches in China and London, obtained by
POLITICO, ministers have sought to persuade Chinese and British officials,
academics and businesses that rebuilding the trade and investment relationship
is essential — even as economic security threats loom.
After a “Golden Era” in relations trumpeted by Tory Prime Minister David
Cameron, Britain’s once-close ties to the Asian superpower began to unravel in
the late 2010s. By 2019, Boris Johnson had frozen trade and investment talks
after a Beijing-led crackdown on Hong Kong’s democracy movement. At Donald
Trump’s insistence, Britain stripped Chinese telecoms giant Huawei from its
telecoms infrastructure over security concerns.
Starmer — who is expected to meet Xi on a high-stakes trip to Beijing this week
— set out to revive an economic relationship that had hit the rocks. The extent
of the reset undertaken by the PM’s cabinet is revealed in the series of
speeches by ministers instrumental to his China policy over the past year,
including Chancellor Rachel Reeves, then-Foreign Secretary David Lammy, Energy
Secretary Ed Miliband, and former Indo-Pacific, investment, city and trade
ministers.
Months before security officials completed an audit of Britain’s exposure to
Chinese interference last June, ministers were pushing for closer collaboration
between the two nations on energy and financial systems, and the eight sectors
of Labour’s industrial strategy.
“Six of those eight sectors have national security implications,” said a senior
industry representative, granted anonymity to speak freely about their
interactions with government. “When you speak to [the trade department] they
frame China as an opportunity. When you speak to the Foreign, Commonwealth and
Development Office, it’s a national security risk.”
While Starmer’s reset with China isn’t misguided, “I think we’ve got to be much
more hard headed about where we permit Chinese investment into the economy in
the future,” said Labour MP Liam Byrne, chair of the House of Commons Business
and Trade Committee.
Lawmakers on his committee are “just not convinced that the investment strategy
that is unfolding between the U.K. and China is strong enough for the future and
increased coercion risks,” he said.
As Trump’s tariffs bite, Beijing’s trade surplus is booming and “we’ve got to be
realistic that China is likely to double down on its Made in China approach and
target its export surplus at the U.K.,” Byrne said. China is the U.K.’s
fifth-largest trade partner, and data to June of last year show U.K. exports to
China dropping 10.4 percent year-on-year while imports rose 4.3 percent.
“That’s got the real potential to flood our markets with goods that are full of
Chinese subsidies, but it’s also got the potential to imperil key sectors of our
economy, in particular the energy system,” Byrne warned.
A U.K. government spokesperson said: “Since the election, the Government has
been consistently transparent about our approach to China – which we are clear
will be grounded in strength, clarity and sober realism.
“We will cooperate where we can and challenge where we must, never compromising
on our national security. We reject the old ‘hot and cold’ diplomacy that failed
to protect our interests or support our growth.”
While Zheng Zeguang’s speech was released online, the Foreign Office refused to
provide Catherine West’s own address when requested at the time. | Jordan
Pettitt/PA Images via Getty Images
CATHERINE WEST, INDO-PACIFIC MINISTER, SEPTEMBER 2024
Starmer’s ministers began resetting relations in earnest on the evening of Sept.
25, 2024 at the luxury Peninsula Hotel in London’s Belgravia, where rooms go for
£800 a night. Some 400 guests, including a combination of businesses, British
government and Chinese embassy officials, gathered to celebrate the 75th
anniversary of the People’s Republic of China — a milestone for Chinese
Communist Party (CCP) rule.
“I am honored to be invited to join your celebration this evening,” then
Indo-Pacific Minister Catherine West told the room, kicking off her keynote
following a speech by China’s ambassador to the U.K., Zheng Zeguang.
“Over the last 75 years, China’s growth has been exponential; in fields like
infrastructure, technology and innovation which have reverberated across the
globe,” West said, according to a Foreign Office briefing containing the speech
obtained through freedom of information law. “Both our countries have seen the
benefits of deepening our trade and economic ties.”
While London and Beijing won’t always see eye-to-eye, “the U.K. will cooperate
with China where we can. We recognise we will also compete in other areas — and
challenge where we need to,” West told the room, including 10 journalists from
Chinese media, including Xinhua, CGTN and China Daily.
While Zheng’s speech was released online, the Foreign Office refused to provide
West’s own address when requested at the time. Freedom of information officers
later provided a redacted briefing “to protect information that would be likely
to prejudice relations.”
DAVID LAMMY, FOREIGN SECRETARY, OCTOBER 2024
As foreign secretary, David Lammy made his first official overseas visit in the
job with a two-day trip to Beijing and Shanghai. He met Chinese Foreign Minister
Wang Yi in Beijing on Oct. 18, a few weeks before U.S. President Donald Trump’s
re-election. Britain and China’s top diplomats discussed climate change, trade
and global foreign policy challenges.
“I met with Director Wang Yi yesterday and raised market access issues with him
directly,” Lammy told a roundtable of British businesses at Shanghai’s Regent On
The Bund hotel the following morning, noting that he hoped greater dialogue
between the two nations would break down trade barriers.
“At the same time, I remain committed to protecting the U.K.’s national
security,” Lammy said. “In most sectors of the economy, China brings
opportunities through trade and investment, and this is where continued
collaboration is of great importance to me,” he told firms. Freedom of
information officers redacted portions of Lammy’s speech so it wouldn’t
“prejudice relations” with China.
Later that evening, the then-foreign secretary gave a speech at the Jean
Nouvel-designed Pudong Museum of Art to 200 business, education, arts and
culture representatives.
China is “the world’s biggest emitter” of CO2, Lammy told them in his prepared
remarks obtained by freedom of information law. “But also the world’s biggest
producer of renewable energy. This is a prime example of why I was keen to visit
China this week. And why this government is committed to a long-term, strategic
approach to relations.”
Shanghai continues “to play a key role in trade and investment links with the
rest of the world as well,” he said, pointing to the “single biggest” ever
British investment in China: INEOS Group’s $800 million plastics plant in
Zhejiang.
“We welcome Chinese investment for clear mutual benefit the other way too,”
Lammy said. “This is particularly the case in clean energy, where we are both
already offshore wind powerhouses and the costs of rolling out more clean energy
are falling rapidly.”
“We welcome Chinese investment for clear mutual benefit the other way too,”
David Lammy said. | Adam Vaughan/EPA
POPPY GUSTAFSSON, INVESTMENT MINISTER, NOVEMBER 2024
Just days after Starmer and President Xi met for the first time at the G20 that
November, Poppy Gustafsson, then the British investment minister, told a
U.K.-China trade event at a luxury hotel on Mayfair’s Park Lane that “we want to
open the door to more investment in our banking and insurance industries.”
The event, co-hosted by the Bank of China UK and attended by Chinese Ambassador
Zheng Zeguang and 400 guests, including the U.K. heads of several major China
business and financial institutions, is considered the “main forum for
U.K.-China business discussion,” according to a briefing package prepared for
Gustafsson.
“We want to see more green initiatives like Red Rock Renewables who are
unlocking hundreds of megawatts in new capacity at wind farms off the coast of
Scotland — boosting this Government’s mission to become a clean energy
superpower by 2030,” Gustafsson told attendees, pointing to the project owned
by China’s State Development and Investment Group.
The number one objective for her speech, officials instructed the minister, was
to “affirm the importance of engaging with China on trade and investment and
cooperating on shared multilateral interests.”
And she was told to “welcome Chinese investment which supports U.K. growth and
the domestic industry through increased exports and wider investment across the
economy and in the Industrial Strategy priority sectors.” The Chinese
government published a readout of Gustafsson and Zheng’s remarks.
RACHEL REEVES, CHANCELLOR, JANUARY 2025
By Jan. 11 last year, Chancellor Rachel Reeves was in Beijing with British
financial and professional services giants like Abrdn, Standard Chartered, KPMG,
the London Stock Exchange, Barclays and Bank of England boss Andrew Bailey in
tow. She was there to meet with China’s Vice-Premier He Lifeng to reopen one of
the key financial and investment talks with Beijing Boris Johnson froze in 2019.
Before Reeves and He sat down for the China-U.K. Economic and Financial
Dialogue, Britain’s chancellor delivered an address alongside the vice-premier
to kick off a parallel summit for British and Chinese financial services firms,
according to an agenda for the summit shared with POLITICO. Reeves was also due
to attend a dinner the evening of the EFD and then joined a business delegation
travelling to Shanghai where she held a series of roundtables.
Releasing any of her remarks from these events through freedom of information
law “would be likely to prejudice” relations with China, the Treasury said. “It
is crucial that HM Treasury does not compromise the U.K.’s interests in China.”
Reeves’ visit to China paved the way for the revival of a long-dormant series of
high-level talks to line up trade and investment wins, including the China-U.K.
Energy Dialogue in March and U.K.-China Joint Economic and Trade Commission
(JETCO) last September.
EMMA REYNOLDS, CITY MINISTER, MARCH 2025
“Growth is the U.K. government’s number one mission. It is the foundation of
everything else we hope to achieve in the years ahead. We recognise that China
will play a very important part in this,” Starmer’s then-City Minister Emma
Reynolds told the closed-door U.K.-China Business Forum in central London early
last March.
Reeves’ restart of trade and investment talks “agreed a series of commitments
that will deliver £600 million for British businesses,” Reynolds told the
gathering, which included Chinese electric vehicle firm BYD, HSBC, Standard
Chartered, KPMG and others. This would be achieved by “enhancing links between
our financial markets,” she said.
“As the world’s most connected international financial center and home to
world-leading financial services firms, the City of London is the gateway of
choice for Chinese financial institutions looking to expand their global reach,”
Reynolds said.
Ed Miliband traveled to Beijing in mid-March for the first China-U.K. Energy
Dialogue since 2019. | Tolga Akmen/EPA
ED MILIBAND, ENERGY AND CLIMATE CHANGE SECRETARY, MARCH 2025
With Starmer’s Chinese reset in full swing, Energy Secretary Ed Miliband
traveled to Beijing in mid-March for the first China-U.K. Energy Dialogue since
2019.
Britain’s energy chief wouldn’t gloss over reports of human rights violations in
China’s solar supply chain — on which the U.K. is deeply reliant for delivering
its lofty renewables goals — when he met with China’s Vice Premier Ding
Xuexiang, a British government official said at the time. “We maybe agree to
disagree on some things,” they said.
But the U.K. faces “a clean energy imperative,” Miliband told students and
professors during a lecture at Beijing’s elite Tsinghua University, which counts
Xi Jinping and former Chinese President Hu Jintao as alumni. “The demands of
energy security, affordability and sustainability now all point in the same
direction: investing in clean energy at speed and at scale,” Miliband said,
stressing the need for deeper U.K.-China collaboration as the U.K. government
reaches towards “delivering a clean power system by 2030.”
“In the eight months since our government came to office we have been speeding
ahead on offshore wind, onshore wind, solar, nuclear, hydrogen and [Carbon
Capture, Usage, and Storage],” Britain’s energy chief said. “Renewables are now
the cheapest form of power to build and operate — and of course, much of this
reflects technological developments driven by what is happening here in China.”
“The U.K. and China share a recognition of the urgency of acting on the climate
crisis in our own countries and accelerating this transition around the world —
and we must work together to do so,” Miliband said, in his remarks obtained
through freedom of information law.
DOUGLAS ALEXANDER, ECONOMIC SECURITY MINISTER, APRIL 2025
During a trip to China in April last year, then-Trade Minister Douglas Alexander
met his counterpart to prepare to relaunch key trade and investment talks. The
trip wasn’t publicized by the U.K. side.
According to a Chinese government readout, the China-UK Joint Economic and Trade
Commission would promote “cooperation in trade and investment, and industrial
and supply chains” between Britain’s trade secretary and his Chinese equivalent.
After meeting Vice Minister and Deputy China International Trade Representative
Ling Ji, Minister Alexander gave a speech at China’s largest consumer goods
expo near the country’s southernmost point on the island province of Hainan.
Alexander extended his “sincere thanks” to China’s Ministry of Commerce and the
Hainan Provincial Government “for inviting the U.K. to be the country of honour
at this year’s expo.”
“We must speak often and candidly about areas of cooperation and, yes, of
contention too, where there are issues on which we disagree,” the trade policy
and economic security minister said, according to a redacted copy of his speech
obtained under freedom of information law.
“We are seeing joint ventures and collaboration between Chinese and U.K. firms
on a whole host of different areas … in renewable energy, in consumer goods, and
in banking and finance,” Alexander later told some of the 27 globally renowned
British retailers, including Wedgwood, in another speech during the U.K.
pavilion opening ceremony.
“We are optimistic about the potential for deeper trade and investment
cooperation — about the benefits this will bring to the businesses showcasing
here, and those operating throughout China’s expansive market.”
Tag - roundtable
Canadian Prime Minister Mark Carney’s Davos speech went viral, but it has
sparked a predictably angry reaction from the Trump White House that could
torpedo trade talks already on thin ice.
Carney’s call to arms to smaller countries to band together against the economic
coercion of “great powers” sparked criticism from Donald Trump and his inner
circle — and it is renewing warnings on both sides of the border that it could
undermine Ottawa as it faces a review of the United States-Mexico-Canada
Agreement, the continental trade deal worth C$1.3 trillion in two-way
merchandise trade.
Goldy Hyder, the president of the lobby group for Canada’s top CEOs, spent
several days in Washington this week where he said he got an earful from U.S.
lawmakers and business leaders.
“Obviously, the response from the Americans suggests that some harm has been
done. I don’t believe it to have been significant or fatal, but I do think we
need to make sure we’re sending the signals that we care about this agreement,”
Hyder, the president of the Business Council of Canada, told POLITICO on Friday.
The standing ovation and breathless praise Carney initially received in Davos
gave way to some hand-wringing Friday at the World Economic Forum and beyond.
“I’m not exactly on the same page as Mark,” European Central Bank President
Christine Lagarde said in a panel, a departure from earlier in the week when
she walked out of a dinner with Commerce Secretary Howard Lutnick during an
anti-Europe speech.
“We should be talking about alternatives,” she said. “We should be identifying,
much more so than we have probably in the past, the weaknesses, the sore points,
the dependencies, the autonomy.”
Trump and Carney, as well as their top Cabinet members, are exchanging blows
against the backdrop of the looming mandatory six-year review of the USMCA, a
process that could lead to renewal, modifications or the potential demise of a
pact Trump once called the biggest and most important deal in U.S. history.
Trump fired the first shot back at Carney’s speech during his own Davos address
the following day, telling the world: “Canada lives because of the United
States.” He repeated past gripes that Canada “gets a lot of freebies” from the
U.S. and it “should be grateful.”
Carney counterpunched the next day at his Quebec City Cabinet retreat, making a
last-minute edit to a speech on his domestic ambitions. “Canada doesn’t live
because of the United States,” he said. “Canada thrives because we are
Canadian.”
Hours later, Trump revoked Canada’s invitation to participate in his Gaza “Board
of Peace” initiative. Trump didn’t offer a specific reason. Then on Friday,
Trump trolled Canada in a Truth Social post that included a dig about “doing
business with China.”
Louise Blais, a former Canadian deputy ambassador to the United Nations, said
the post-Davos bickering between Trump and Carney evokes the hostility that
erupted between Trump and former Prime Minister Justin Trudeau in 2018 at the G7
Canada hosted, and could be damaging to the USMCA review.
“Canada thinks that we’re pushing back on the Americans blackmailing us and
holding us to account, but to the White House mind, it looks as if we are
ungrateful,” Blais told POLITICO from Mexico on Friday, where she was attending
meetings on the USMCA. She now works as a senior adviser for a U.S. consultancy
and Hyder’s council.
“The damage could be eight out of 10, but it’s really totally up to the
Americans. They are going to decide whether or not they push back. We certainly
have given them a lot of ammunition to do so,” she added.
Trump’s top political lieutenants also piled on with insults and sideswipes of
their own.
In an interview with Bloomberg from Davos, Lutnick called Carney “arrogant” and
said his decision to strike new agreements with China will work against Canada
in this year’s review of USMCA.
“This is the silliest thing I’ve ever seen,” Lutnick said of the idea that China
will then increase imports from Canada. “Give me a break — they have the
second-best deal in the world. And all we got to do is listen to this guy whine
and complain.”
Lutnick said Mexico has the best deal, followed by Canada because 85 percent of
its exports flow tariff-free to the U.S. under USMCA.
U.S. Treasury Secretary Scott Bessent accused Carney of “value signaling.”
“If he believes what’s best for Canada is to make speeches like that, which I
don’t think is very helpful, then he should make speeches like that,” Bessent
told POLITICO’s Dasha Burns.
Bessent added: “In the context of the United States, I’ll point out the Canadian
economy is smaller than the economy of Texas.”
Bessent noted in the interview that Trump stood up to China’s manipulation of
the rare earths market. “Prime Minister Carney should say ‘thank you,’ rather
than giving this value-signaling speech,” Bessent said.
U.S. Trade Representative Jamieson Greer also questioned the wisdom of Carney’s
dealmaking with China in light of the upcoming USMCA review and has been
speculating the U.S. could negotiate separate deals with Canada and Mexico.
As Carney returned from Europe for a Cabinet meeting in Quebec City, his leading
lieutenants remained defiant.
“There are always going to be stressful times, and let’s not sugarcoat it. The
prime minister never does. It’s a difficult world,” Artificial Intelligence
Minister Evan Solomon told reporters Friday morning.
When asked about the U.S. criticism, Finance Minister François-Philippe
Champagne said Carney was simply saying “a lot of things that people thought.
And he had the courage to say it loud.”
Greenland’s Energy and Industry Minister Naaja Nathanielsen told POLITICO that
Carney’s speech was “brilliant.”
“Right now, we’re still figuring out what is the American intentions,” she said
from Davos. “I thought [it] was the most clear-eyed speech I’ve heard in a long
time.”
But Hyder and Blais say Carney’s next priority must be finding a path back to
bargaining with Trump and his team, and to end the bickering in interest of
preserving USMCA.
Talks were expected to resume this month after Trump abruptly halted them in
October, apparently angry the Ontario government used Ronald Reagan’s voice in
an anti-tariff commercial.
Hyder said he got a lengthy briefing from senior officials in the Office of the
United States Trade Representative, met one Democrat and seven Republican
lawmakers and consulted his U.S. counterparts at the Business Roundtable, which
represents the leaders of the largest American companies.
During his 90 minutes at USTR, Hyder said he was told Mexico was making “great
progress” in dealing with trade irritants.
“They have the lowest tariff rate in the world as a result of it, lower than
ours,” said Hyder.
“We’re now not engaged, we’re not conversing, and we’re waiting for the
Americans to call us. Why would they call us to lower the tariffs that they’re
imposing on us? We need to lean in.”
Hyder said he believes Carney has convinced himself Trump has no intention of
renewing USMCA, and that he needs to disabuse himself of that “self-fulfilling
prophecy.”
“It’s not too late to recognize the opportunity to still get this agreement
across the finish line, and we need to be at the table to do that,” he said.
Carney signaled he was irritated when he brushed off what he called a “boring
question” from a reporter about how talks with Trump were going as he departed
the Cabinet retreat this week.
Blais said that Carney needs the USCMA if he wants to achieve his goal of
increasing exports to other countries.
“The strength of our economy and our ability to diversify is very much anchored
in our North American competitiveness … because we’re seen to have access to the
U.S. market that has supply chains that are healthy,” she said.
“The more we say that there’s a rupture with that, the less attractive we become
as a country to invest.
“That’s the worry.”
Jakob Weizman and Marianne Gros contributed to this report from Brussels. Mickey
Djuric reported from Quebec City.
LONDON — When Britain’s top finance minister held a doomy pre-budget press
conference earlier this month, it seemed like a traditional Westminster affair.
But it didn’t take long for the established members of the press corps to spot
that two front-row seats had — for the first time — been reserved for online
finance influencers hand-picked by the government.
“I could feel the glares hitting the back of my head from people wondering who I
am and why I was on the front row,” recalls Cameron Smith — a creator best known
as “Cazza Time” to his hundreds of thousands of online followers.
For Smith, this was only his latest involvement in a developing government comms
strategy that both influencers and Whitehall insiders say is genuinely
innovative for the U.K.
At the same time, the growing operation has traditional journalists grumbling,
political comms specialists nodding — and influencers themselves wrestling with
how to maintain their prized independence.
“Obviously there is a risk it becomes a bit of a gravy train, and people end up
willing to do anything to get a video with the prime minister or whoever it may
be,” says fellow climate creator Laura Anderson. “But I hope people’s audiences
will hold them accountable.”
‘NOT JUST THE WESTMINSTER BUBBLE’
Smith — or “Cazza,” as Prime Minister Keir Starmer apparently calls him — first
got tapped up under the previous Conservative government, long before he found
himself bagging a front-row seat at Reeves’ speech.
An out-of-the-blue email invited him to cover what would be Jeremy Hunt’s last
budget before the 2024 general election. It felt, Smith says, as if the flailing
Conservative government was “clutching around” to drum up support — but he
eventually agreed. His first-ever interaction with a politician was a
face-to-face chat with the country’s top finance minister.
The civil-service-led operation behind that early foray has ballooned under
Labour. A dedicated New Media Unit has been tasked with tapping into the U.K.’s
less politically-engaged audiences. The unit recently embarked on a hiring spree
to help it identify and engage with Britain’s biggest online creators.
That has further opened the door for creators like Smith, who focuses on
personal finance content for people aged 18 to 35. He’s been able to put his
audience’s questions directly to senior establishment figures, and in the last
several months alone has enjoyed direct access to Reeves, Starmer and even the
governor of the Bank of England, Andrew Bailey.
“What we’ve tried to do is really appeal to audiences in the real world, not
just the Westminster bubble,” said one senior Whitehall communications official,
granted anonymity like others in this story to discuss the project.
“Through partnering with creators who have a strong audience and strong
reputation, you can have conversations about what government is doing while
avoiding some of the traps we get into with journalists.”
Content creators are “very ordinary people” asking the questions members of the
public want answering, according to a government New Media Unit insider. | Tolga
Akmen/EPA
Talk of “traps” is likely to raise eyebrows among Westminster’s traditional
journalists, who fiercely prize their ability to hold the government to account.
Some veterans of the Westminster lobby smiled when Abi Foster, the other online
creator invited to grill Reeves, went on Times Radio just after the press
conference to bemoan the stage-managed event as “not the stuff of viral clips.”
For good measure, she also lamented the chancellor’s “long-winded” answers.
Government figures insist there’s no attempt to control influencers, and appear
keen to distance themselves from the U.S. Trump administration’s efforts to
bring content creators that are aligned with the president into the fold.
Many of those invited in the U.K. include experts on the various topics:
doctors, nurses, teachers, academics and campaigners, they point out. “If you
draw the comparison with America, it’s very much those on the political right
who sit in those rooms,” the same official quoted above said. “That doesn’t
apply here.”
PUSHBACK
Still, the unprecedented access to ministers has left some creators concerned
about how to balance close political engagement with the hard-earned trust that
keeps their audiences loyal. “It’s something that we don’t take lightly,” says
Jack Ferris, content lead for Earthtopia, a channel that has become one of the
largest eco-communities on TikTok.
Ferris’ first interaction was as part of a group of climate influencers invited
for coffee and pastries with Energy Secretary Ed Miliband and his comms team to
discuss how they could work together. “We also got a tour of No. 10, which was
very cool,” he recalls. “I told my mum immediately after I got out.”
But while the channel he helps run focuses primarily on good news stories around
net zero, Ferris insists it won’t be “cowed” in criticizing the government. “You
don’t want to make it look like because we are going to all these nice political
events now we’re only going to be talking about what they do in a positive
light.”
Laura Anderson, a climate content creator and PhD researcher known to her
audience as “Less Waste Laura,” shot to online prominence in part because of a
successful campaign to persuade governments to ban disposable vapes. Anderson
said she recognizes the risk that influencers could “get dazzled by Downing
Street and the canapés and drinks, and forget this is a government that we
should be holding to account.”
But she says creators used a recent roundtable inside government to “bluntly”
ask whether they were expected to become “mouthpieces” for the administration.
The answer? “Absolutely not.”
‘THEY NEVER ASK: CAN YOU DO THIS?’
Ferres, who outside his online creator role works as a comms consultant, insists
the relationship doesn’t differ much from a traditional PR approach. Government
departments send over press releases and ask if there’s a way they can make an
announcement work for creators. “They never ask: Can you do this? It’s more
around whether it would be of interest to our audiences — and it’s down to our
editorial control to say if it’s interesting,” he says.
Smith, who built his vast audience without that proximity to power, seems wary
about how to move forward. While tranches of his audience perceive him as a
trusted voice who is now able to grill leaders, others view him as a political
novice who is being “manipulated.”
Having gained followers unaided, most creators say they do feel empowered to
push back. Smith says he has repeatedly refused to post content when he feels
he’s been given a “politician’s answer.”
“Really, really clever” — that’s one eco influencer and comms consultant’s
verdict on Energy Secretary Ed Miliband’s Instagram content. | Pool picture by
Tolga Akmen/EPA
And the consensus is that cutting off access to a critical voice would lead to
an online firestorm that would do real reputational harm to the government.
“Ultimately, I don’t need Rachel Reeves in the room with me to explain what the
budget is going to mean to people’s finances,” Smith argues. “People listen to
me regardless, so I don’t need them — but there’s a way we can work together and
that adds credibility to what I’m saying.”
‘GENUINELY FUNNY AND ENGAGING’
There are few signs yet that the government — which lags right-wing Nigel Farage
in the polls and has spent the week locked in internal warfare — is benefiting
from its online strategy.
But some individual ministers are throwing themselves into it with gusto — and
seem to be avoiding the kind of trend-chasing content that can afflict
middle-aged politicos who’ve spent too much time online.
“Ed Miliband, for example, is doing lots of different types of content on
Instagram,” Ferres says. “It’s actually genuinely funny and engaging, but
managed to loop back into his clean energy vision — it’s really, really clever.”
“I think there’s something about the fact that content creators are very
ordinary people who are asking genuine questions,” an NMU insider says. “That
helps, and then ministers know when they are speaking to them, they are getting
questions that the public really care about.
“It’s different to having to sit opposite [BBC interviewer Laura Kuenssberg] and
having to answer all these different questions on different topics.”
BELÉM, Brazil — Sen. Sheldon Whitehouse (D-R.I.) will arrive Friday at the COP30
climate summit — making him the sole U.S. federal representative at United
Nations talks that the Trump administration is skipping.
Whitehouse’s office said he will meet in the Amazonian port city of Belém,
Brazil, with elected officials along with business and global climate leaders.
It said his goal is to show that the U.S. public still broadly supports
addressing climate change despite Trump abstaining from the negotiations.
Democratic California Gov. Gavin Newsom delivered a similar message earlier this
week during his own swing through Belém.
The White House has defended the U.S. absence from the talks, maintaining that
the annual global climate gatherings work in the interests of rival countries
like China. “President Trump will not allow the best interest of the American
people to be jeopardized by the Green Energy Scam,” spokesperson Taylor Rogers
said in an email last week.
One GOP lawmaker, Sen. John Curtis of Utah, had planned to attend the summit
but canceled because of the federal government shutdown.
Whitehouse said he plans to harp on Trump and GOP policies that he cast as
unpopular and responsible for boosting energy costs.
“Amidst sinking approvals and a shellacking in the most recent elections, it’s
no surprise the Trump administration is unwilling to defend the fossil fuel
industry’s unpopular and corrupt climate denial lies on the global stage.”
Whitehouse will participate in events Friday on offshore wind, shipping and
non-carbon-dioxide greenhouse gas emissions before delivering a keynote speech
at a roundtable with elected officials from other nations hosted by the
Sustainable Energy and Environment Coalition. On Saturday, he will weigh in on
methane rules, net-zero policies and the effect climate change has on oceans.
SÃO PAULO — California Gov. Gavin Newsom isn’t even at the United Nations
climate talks yet — but he’s already getting bombarded with meeting requests.
Newsom kicked off his trip to Brazil 1,800 miles south of the Amazonian city of
Belém that’s hosting this year’s international gathering, talking to Brazilian
and American financiers at an investors’ summit in São Paulo.
His first question from the Brazilian press on Monday, fresh off last
week’s redistricting victory: whether he would run for president (“Nothing else
matters but 2026 and taking back the House of Representatives,” he said).
Newsom couldn’t walk halfway down a hallway without fielding a meeting request
from CEOs and NGOs — or a selfie request. One Brazilian picture-taker had him
repeat the Portuguese word for “Let’s go”: “Vamos.”
His remarks to investors at the Milken Global Investors’ Symposium sounded more
like a campaign rally than a business speech.
“We have seen this complete reversal of so much of the progress that the Biden
administration made,” he said. “What Trump is doing is unprecedented in American
history … This should not be through the lens or prism of red, in American
vernacular, versus blue.”
Then he held an hour-long roundtable meeting with representatives from major
investment funds, philanthropies, development banks and energy leaders, who he
said pushed him to bolster economic ties in existing voluntary agreements with
Brazilian governments.
Newsom told POLITICO he and his team were getting a “disproportionate number of
calls” to meet on the sidelines of the talks, where the U.S. government’s
delegation numbers zero (“not even a note taker,” Newsom said.)
“We’re at peak influence because of the flatness of the surrounding terrain with
the Trump administration and all the anxiety,” Newsom said in an interview in
São Paulo.
Newsom is playing a well-rehearsed role for California, which has staked out a
leading role in international climate diplomacy for decades under both
Democratic and Republican governors, including during Trump’s first term. The
Trump administration’s dismantling of climate policies to favor oil and gas
interests only give California more space to fill, said former Gov. Jerry Brown,
who got a hero’s welcome himself at the United Nations climate talks in 2017,
the first year of Trump 1.0.
“Trump, he’s saying one thing,” Brown said in an interview. “Newsom is saying
something else, very important.” The impact, he said, will be determined in
Belém. “That’s why it’s exciting. There’s not an answer yet.”
That gives Newsom an opening — and a risk. Where Brown led a coalition of
states eager to demonstrate continued commitment on climate in Trump’s first
term, Newsom will arrive in Belém, near the mouth of the Amazon River, at a time
when U.S. politics are tilting rightward and even Democrats are pulling back on
embracing climate policies.
And there’s little Newsom’s team, which includes ex-State Department climate
negotiators, can actually do in the closed-door talks reserved for countries.
But the governor’s goal is to influence from just outside the door.
“We’re in every room, because California has been the inspiration for a lot of
these jurisdictions,” he told POLITICO.
Newsom’s heading next to Belém, where he’s scheduled to meet with other
subnational leaders and renew environmental pacts with other countries and
states — starting on Tuesday with the environment ministers from Germany and the
German state of Baden-Württemburg, which Brown first partnered with to promote
the soft power of subnational governments during Trump’s first term. Newsom said
he would also meet with representatives from Chile. He’s also expected to give
plenary remarks at the UN.
After that, he’ll head deeper into the Amazon rainforest to meet with Indigenous
communities on conservation — one of the goals of the Brazilian organizers of
the climate talks. Newsom said he saw the visit to the Amazon as a spiritual
opportunity.
“It connects us to our creator,” he said. “It connects us to thousands and
thousands of generations.”
LONDON — Britain’s financial watchdogs have been on a crypto journey — with a
little help from Donald Trump.
The Bank of England publishes its long-awaited rules for stablecoin Monday. Two
years after the central bank’s Governor Andrew Bailey dismissed the virtual
currency — a theoretically more stable form of crypto — as “not money,” its
rulebook is now expected to get a cautious welcome from an industry that’s been
lobbying hard for a rethink.
It would mark quite a shift from the U.K. central bank.
Stablecoins “are not robust and, as currently organized, do not meet the
standards we expect of safe money in the financial system,” Bailey told a City
of London audience in 2023.
Now his top officials herald a “fabulous opportunity.”
The Bank chief’s initial position — that he doesn’t see stablecoins as a
substitute for commercial bank money — has put him at odds with the U.K.
Treasury, which is on an all-consuming mission to get the sluggish British
economy moving. Chancellor Rachel Reeves wants the U.K. “at the forefront of
digital asset innovation.”
The United States crypto lobby, fresh from several wins stateside, spied an
opportunity. Exploiting those divisions — and pointing to a more gung-ho
approach from Trump’s U.S. — has allowed firms to push for a British regime that
more closely aligns with their own.
Monday could be a very good day at the office.
TREADING CAREFULLY
Stablecoins are a type of cryptocurrency pegged to a real asset, like the
dollar, with the largest and best-known offering being Tether. They’re seen as a
more palatable version of crypto, and are used by investors to buy other
cryptocurrencies, or allow cross-border payments.
The pro-stablecoin camp says their development is necessary to improve payments
and overseas transactions for businesses and consumers, particularly as cash
usage declines and sending money abroad remains clunky and expensive. If done
well, a stablecoin could maintain a reliable store of value and be a viable
alternative to cash.
Stablecoins (USDT) are a type of cryptocurrency pegged to a real asset. | Silas
Stein/picture alliance via Getty Images
Those more cautious, including the BoE, warn there are risks for the wider
financial system including undermining public confidence in money and payments
if something goes wrong.
And stablecoins are not immune to things going wrong: In 2022, the Terra Luna
token lost 99 percent of its value, along with its sister token TerraUSD, a
stablecoin which went from being pegged to the dollar on a $1-1 TerraUSDbasis,
to being valued at $0.4. Tether also fell during that time to $0.95.
Other central bankers seem to agree with Bailey’s early caution. The Bank for
International Settlements, a central bank body, issued a stark warning on
stablecoins in June, saying they “fall short” as a form of sound money.
There are also concerns such coins are used to skirt money-laundering laws, with
anti-money laundering watchdog the Financial Action Task Force, warning that
most on-chain illicit transactions involved stablecoins.
The EU has tough regulation in place for digital assets. The bloc prioritizes
tighter control over the market than the U.S., with stricter rules on capital
and operations.
That’s in stark contrast to the U.S., which passed its own stablecoin regulation
— the GENIUS act — earlier this year, which is much more industry-friendly.
Donald Trump, whose family is building its own crypto empire, has described
stablecoins as “perhaps the greatest revolution in financial technology since
the birth of the Internet itself.”
That’s put post-Brexit Britain in a bind: align with the EU, the U.S., or go it
alone?
“The U.K. is a bit caught,” a former Bank of England official who now works in
digital assets said. They were granted anonymity, like others in this article,
to speak freely. “It doesn’t have the luxury of completely creating a bespoke
regime. It can do, but essentially, no one’s going to care.”
AMERICAN PUSH
For a Labour government intent on deregulating for growth, aligning with the
U.S. was immediately a more attractive proposition.
Warnings came from the City of London, Britain’s financial powerhouse, that the
government would need to embrace crypto and stablecoin for the U.K. to become a
global player. Domestic financial services firms wrote to the government calling
for it to align its regime with the U.S., talking up “once-in-a-generation
opportunity” to establish the future rules for digital assets.
“Securities are getting tokenized,” said one former Treasury official, now
working in the private sector. “Bank deposits are getting tokenized. If we don’t
build a regime that is permissive enough [to make the U.K. attractive], then the
City’s relevance will diminish as a consequence.”
For the pro-crypto brigade, the BoE has been the main hurdle in achieving a
U.S.-style, free-market stablecoin rulebook. Reform UK leader Nigel Farage,
whose party is currently leading in the polls, accused Bailey of behaving like a
“dinosaur.
For the pro-crypto brigade, the BoE has been the main hurdle in achieving a
U.S.-style, free-market stablecoin rulebook. | Niklas Helle’n/AFP via Getty
Images
“The Bank’s really got itself into a twist on this one. From what I understand
from people who have been at the Bank, this is coming from the top,” said the
former BoE employee quoted above.
“Andrew Bailey has made it publicly clear for some many months now that he is
sceptical about the two new alternative forms of money, which is stablecoins and
central bank digital currencies,” said a financial services firm CEO.
In recent weeks, however, Bailey and his colleagues have softened their rhetoric
as well as indicating a relaxed policy is forthcoming.
Sarah Breeden, Bailey’s deputy governor for financial stability, has repeatedly
said any limits on stablecoin will be temporary, and recent reports suggest
there will be carve-outs for certain firms. Other BoE officials have also backed
away from tougher rules on the assets which must be used to underpin the value
of a stablecoin.
A second former BoE employee, who now works in the fintech industry, said Bailey
was “under a huge amount of pressure, from the government and the industry. He
is worried about looking like he is just anti-innovation.”
The BoE declined to comment. The Treasury did not respond to a request for
comment.
US interest
A state visit by Trump to the U.K. this fall appeared to help shift the
debate.
In late September, the Trump administration and the British government agreed to
explore ways to collaborate on digital asset rules.
Treasury Secretary Scott Bessent and Reeves announced that financial regulators
and officials from the U.S. and U.K. would convene a “Transatlantic Taskforce
for Markets of the Future.”
During Trump’s visit, Bessent held a financial services roundtable in London
with key figures from industry. “There was a steady slate of crypto attendees
there, and the discussion predominantly focused on stablecoins,” said the former
Treasury official.
“Rachel Reeves met Scott Bessent and seems to have been told, actually, we’d
like you to be much more supportive of … digital assets,” the financial services
CEO added.
The U.K. Treasury has been “pretty proactive” in taking meetings with crypto
firms and traditional finance firms interested in crypto, in the New York
consulate and British embassy in Washington, added the former Treasury
official.
The BoE too met with the crypto industry and U.S. politicians, with Breeden at
the helm of discussions while she was in the U.S. in October for IMF-World Bank
meetings, in an effort to better understand U.S. stablecoin rules.
Last month saw a major olive branch.
A Bailey-penned op-ed in the Financial Times saw the Bank chief recognize
stablecoins’ “potential in driving innovation in payments systems both at home
and across borders.”
Going further still, Breeden told a crypto conference just this month that
synchronization between the U.S. and the U.K. on stablecoin marks a “fabulous
opportunity.”
She has heavily indicated there will be more than a slight American influence
when she announces the proposals on Nov. 10. “It’s a fabulous opportunity, to
reengineer the financial system with these new technologies,” Breeden told the
Nov. 5 crypto conference.
“I think a lot of people have observed that it was the U.S. crypto firms that
really pushed the dial on getting political will, whereas British firms haven’t
been able to secure that,” the former Treasury official said.
BRUSSELS — Heard the one about the 12-and-half-hour meeting of 27 national
leaders that succeeded in agreeing very little apart from coming up with quite a
lot of “let’s decide in a couple of months” or “let’s just all agree on language
that means absolutely nothing but looks like we’re united” or “let’s at least
celebrate that we got through this packed agenda without having to come back on
Friday”?
No? Well let us enlighten you.
And if that makes you question how we’ve managed to squeeze 29 things out of
this, well let’s just say one of these is about badly functioning vending
machines…
1 . STRAIGHT OUT OF THE BOX WITH A QUICK WIN ON SANCTIONS …
The day was off to a flying start when Slovak Prime Minister Robert Fico lifted
his veto over the latest raft of Russia sanctions on the eve of the summit —
allowing the package to get formally signed off at 8 a.m. before leaders even
started talking.
Fico rolled over after claiming to achieve what he set out to do: clinch support
for Slovakia’s car industry. He found an unusual ally in German Chancellor
Friedrich Merz who he met separately to discuss the impact of climate targets on
their countries’ automotive sectors.
2. … BUT AGREEMENT ON FROZEN RUSSIAN ASSETS WAS LESS FORTHCOMING
There was a moment earlier in the week where the EU looked to be on the cusp of
a breakthrough on using Russian frozen assets to fund a €140 billion loan for
Ukraine. Belgium, the main holdout, appeared to be warming to the European
Commission’s daring idea to crack open the piggy bank.
But Belgian Prime Minister Bart De Wever stuck by his guns , saying he feared
taking the assets, which are held in a Brussels-based financial depository,
could trigger Moscow to take legal action.
3. BELGIUM DIDN’T MOVE ON ITS BIG THREE BIG DEMANDS
The Flemish right-winger’s prerequisites were threefold: the “full mutualization
of the risk,” guarantees that if the money has to paid back, “every member state
will chip in,” and for every other EU country that holds immobilized assets to
also seize them.
Leaders eventually agreed on that classic EU summit outcome: a fudge. They
tasked the European Commission to “present options” at the next European Council
— effectively deciding not to decide.
“Political will is clear, and the process will move forward,” said one EU
official. But it’s uncertain whether a deal can be brokered by the next summit,
currently set for December.
4. DE WEVER REJECTS THE ‘BAD BOY’ LABEL
After POLITICO ranked the Belgian leader among its list of “bad boys” likely to
disrupt Thursday’s summit (rightfully, might we add), he protested the branding.
“A bad boy! Me? … If you talk about the immobilized assets, we’re the very, very
best,” he said.
The day was off to a flying start when Slovak Prime Minister Robert Fico lifted
his veto over the latest raft of Russia sanctions on the eve of the summit. |
Olivier Hoslet/EPA
5. URSULA VON DER LEYEN ALSO CONCEDED THEY’RE NOT QUITE THERE YET
The high-level talks “allowed us to identify points we need to clarify,” the
Commission president said tactfully.
“Nobody vetoed nothing today,” European Council President António Costa chimed
in. “The technical and legal aspects of Europe’s support need to be worked
upon.”
Translation in case you didn’t understand the double negative: The EU needs to
come up with a better plan to reassure Belgium — and fast.
6. UKRAINE: EVER THE OPTIMIST
Ukrainian President Volodymyr Zelenskyy ― a guest of the summit ― told reporters
Russia must pay the price for its invasion, calling on the EU to follow through
with its frozen assets proposal, adding he thought the leaders were “close” to
an agreement.
“If Russia brought war to our land, they have to pay for this war,” he said.
7. AND ZELENSKYY IS STILL HOLDING OUT FOR TOMAHAWKS
“We will see,” was Zelenskyy’s message on the topic of acquiring the long-range
missiles from the U.S., which Donald Trump has so far ruled out selling to Kyiv.
“Each day brings something … maybe tomorrow we will have Tomahawks,” Zelenskyy
said. “I don’t know.”
8. UKRAINE WANTS GERMANY TO SEND MORE WEAPONS TOO
Merz held a meeting with Zelenskyy about “the situation in Washington and the
American plans that are now on the table,” a German official said, adding
Zelenskyy made “specific requests” to the chancellor about helping Ukraine with
its “defense capabilities.”
After the summit, the German leader said Berlin would review a proposal on how
German technologies could help to protect Ukrainian’s energy and water
infrastructure.
9. THUMBS UP TO DEFENSE ROADMAP!
EU leaders endorsed the Defense Readiness Roadmap 2030 presented last week by
the Commission, which aims to prepare member countries for war by 2030.
One of its main objectives is to fill EU capability gaps in nine areas: air and
missile defense, enablers, military mobility, artillery systems, AI and cyber,
missile and ammunition, drones and anti-drones, ground combat, and maritime. The
plan also mentions areas like defense readiness and the role of Ukraine, which
would be heavily armed and supported to become a “steel porcupine” able to deter
Russian aggression.
As leaders deliberated, a Russian fighter jet and a refueling aircraft briefly
crossed into Lithuanian airspace from the Kaliningrad region, underscoring the
need for the EU to protect its skies.
10. KYIV IS PROMISING TO BUY EUROPEAN — MOSTLY
Ukraine will prioritize domestic and European industry when spending cash from
the proposed reparation loan funded by Russia’s frozen assets, Zelenskyy told
leaders at the summit — but wants to be able to go across the pond when
necessary.
11. MUCH THE SAME FOR SPAIN
Spanish leader Pedro Sánchez said the country had committed to contributing cash
to a fund organized by NATO to buy weapons for Ukraine from the U.S. | Nicolas
Tucat/Getty Images
Spanish leader Pedro Sánchez said the country had committed to contributing cash
to a fund organized by NATO to buy weapons for Ukraine from the U.S.
“Today, most of the air defense components, such as Patriots or Tomahawks …
which Ukraine clearly needs, are only manufactured in the United States,” he
said. Madrid has been a thorn in Washington’s side over its lax defense
spending.
12. THERE WAS A MERCOSUR SURPRISE
Merz stunned trade watchers when he announced the leaders had backed a
controversial trade agreement with Latin American countries.
“We voted on it today: The Mercosur agreement can be ratified,” the German
chancellor told reporters, adding that he was “very happy” about that. “All 27
countries voted unanimously in favor,” Merz added on Mercosur. “It’s done.”
The remark sparked confusion amongst delegations, as the European Council
doesn’t usually vote on trade agreements — let alone one as controversial as the
mammoth agreement with the countries of the Latin American bloc of Mercosur,
which has been in negotiations for over 25 years.
One EU diplomat clarified that it’s because European Council President António
Costa sought confirmation from EU leaders that they would agree to take a stance
on the deal by the end of this year — and no formal vote was taken yet.
13. CLIMATE TALKS PASSED WITHOUT A HITCH
One of the hotter potatoes ahead of the summit passed surprisingly smoothly.
Leaders ultimately refrained from bulldozing the EU’s climate targets, agreeing
to a vaguely worded commitment to a green transition, though without committing
to a 2040 goal, which proposes cutting emissions by 90 percent compared to 1990
levels.
In the words of one diplomat: “Classic balance, everyone equally unhappy.”
14. AT LEAST ONE LEADER SEEMED PLEASED, THOUGH
Polish Prime Minister Donald Tusk called the summit a “turning point” in
Europe’s approach to green policy, adding he succeeded in inserting a “revision
clause” into the EU’s plan to extend its carbon-trading system to heating and
transport emissions that will give member countries the option to delay or
adjust the rollout.
“We’ve defused a threat to Polish families and drivers,” he declared, calling
the change a signal that “Europe is finally speaking our language.”
15. BUT THE ISSUE WON’T STAY BURIED FOR LONG
Ministers are set to reconvene and cast a vote on the 2040 goal on Nov. 4,
described by one diplomat as “groundhog day.”
16. MEANWHILE, THERE WAS NOTHING ON MIGRATION …
Polish Prime Minister Donald Tusk called the summit a “turning point” in
Europe’s approach to green policy. | Thierry Monasse/Getty Images
Aside from promising to make migration a “priority,” the EU’s leaders failed to
make any kind of breakthrough on a stalled proposal for burden-sharing.
Reminder: The EU missed a deadline last week to agree on a new way of deciding
which member countries are under stress from receiving migrants and ways of
sharing the responsibility more equally across the bloc.
17. … BUT THE ANTI-MIGRANT BREAKFAST CLUB LIVES ON
Italy’s Giorgia Meloni, Denmark’s Mette Frederiksen and the Netherlands’ Dick
Schoof have kept up their informal pre-summit “migration breakfasts” since last
June, swapping innovative ideas on tougher border and asylum policies.
They met again on Thursday with von der Leyen, who updated them on the EU’s
latest plans for accelerating migrant returns, and the trio agreed an informal
summit will take place next month in Rome.
18. NOR DID THE EU’S SOCIAL MEDIA BAN GET MUCH OF A LOOK IN
As expected, the leaders endorsed a “possible” minimum age for kids to use
social media, but failed to commit to a bloc-wide ban, with capitals divided on
whether to make the age 15 or 16, as well as on the issue of parental consent.
19. THERE WAS A WHOLE LOT OF WAITING FOR NEWS…
Journalists were frantically pressing their sources in the Council and national
delegations to find out what was happening at the leaders’ table as the meeting
dragged into the late hours. It eventually finished at 10.30 p.m. ― 12 and a
half hours after it began.
20. … AND THE GREENS SEIZED THEIR MOMENT
The EU Parliament’s Greens group co-chair Bas Eickhout wandered the hallways of
the Justus Lipsius building ready to brief bored journalists about the wonders
of the Green Deal — while leaders debated how to unravel it in the other room.
21. THE COMBUSTION ENGINE BAN FELL FLAT
One of the pillars of the EU’s green transition, its 2035 de facto combustion
engine ban, was set to play a major role in the competitiveness and climate
discussions, with Merz and Fico spoiling for a fight over the proposal — yet it
barely registered as a footnote.
Slovakia used the climate talks to oppose the ban, and the Czech Republic chimed
in to agree, but in the end the summit’s official conclusions welcomed the
Commission’s proposed ban without mentioning how it should be watered down.
22. THE EUROPEAN COUNCIL’S VENDING MACHINES AREN’T VERY, ER, COMPETITIVE
Officials and journalists alike found that the vending machines in the EU’s
Justus Lipsius building, which incidentally is due for a €1 billion renovation,
about as efficient as a roundtable of 27 national leaders lasting 12 and a half
hours.
23. THE BLOC IS WORRIED ABOUT CHINA…
Beijing’s export controls on rare earths came up in the talks on
competitiveness, according to two EU officials, with some leaders expressing
their concerns.
24. … BUT THEY’RE NOT READY TO GO NUCLEAR — YET
One of the officials said the EU’s most powerful trade weapon, the Anti-Coercion
Instrument, was mentioned, but didn’t garner much interest around the table.
25. HOUSING GETS 40 MINUTES — NOT BAD FOR A FIRST RUN
Leaders spent a chunk of time discussing the continent’s housing crisis. A solid
start for the topic, which made it onto the agenda for the first time at Costa’s
behest.
The EU executive “is ready to help,” von der Leyen said after the summit,
announcing a European Affordable Housing Plan is in the pipeline and the first
EU Housing Summit in 2026. | Dursun Aydemir/Getty Images
During talks, Greek Prime Minister Kyriakos Mitsotakis called on the Commission
to create a database tracking which housing policies work — and which don’t —
across Europe. Most leaders agreed that, while housing remains a national
competence, the EU still has a role to play.
26. AND THE COMMISSION WANTS TO ROLL UP ITS SLEEVES
The EU executive “is ready to help,” von der Leyen said after the summit,
announcing a European Affordable Housing Plan is in the pipeline and the first
EU Housing Summit in 2026.
27. LEADERS ENJOYED A FEAST OR TWO
For lunch, langoustine with yuzu, celeriac and apple, fillet of veal with
artichokes and crispy polenta, and a selection of fresh fruit. For dinner,
cannelloni with herbs, courgette velouté, fillet of brill with chorizo and
pepper, and fig meringue cake. Yum.
28. THOUGH A FEW COULDN’T MAKE IT
Hungarian Prime Minister Viktor Orbán was the most notable absence, rocking up
several hours late due to a national holiday in Budapest. Portugal and
Slovenia’s leaders were also absent at one point.
29. AND COSTA KEPT HIS PROMISE … JUST
The European Council president pledged to streamline summits under his watch,
making them one-day affairs instead of two. And with just a couple hours to
spare, he was successful.
Okay, breathe. Did we miss anything? (Don’t answer that.)
Gerardo Fortuna, Max Griera Andrieu, Jordyn Dahl, Gabriel Gavin, Hanne
Cokelaere, Clea Caulcutt, Hans von der Burchard, Kathryn Carlson, Tim Ross,
Jacopo Barigazzi, Gregorio Sorgi, Eliza Gkritsi, Carlo Martuscelli, Nicholas
Vinocur, Saga Ringmar, Sarah Wheaton, Louise Guillot, Zia Weise, Camille Gijs,
Bartosz Brzezinski and Giedre Peseckyte contributed to this report.
Russia’s Supreme Court outlawed what it termed the “International Movement of
Satanists” as hostile to traditional religions on Wednesday, in the latest
incarnation of the Kremlin’s sweeping crackdown on ideological dissent.
“Today, the Supreme Court of the Russian Federation granted the lawsuit filed by
the Prosecutor General of the Russian Federation, Igor Krasnov, recognizing the
International Movement of Satanists as extremist and banning its activities
within Russia,” the Prosecutor General’s Office said in a statement.
“As established, the movement is based on extremist ideology, hatred and
hostility toward traditional religious confessions,” the statement added.
Despite the official-sounding name, the “International Movement of Satanists”
does not appear to exist, at least not under that moniker. Independent
Russian-language news outlet Meduza, based in Latvia, wrote that the Supreme
Court has previously “also banned other fictitious movements” such as the
“international LGBT movement” and then “used that designation to persecute
LGBTQ+ individuals and censor artistic works.”
Undeterred, the prosecutor’s office accused the Satanists of inciting violence
against religious institutions and engaging in “destruction, damage and
desecration of Orthodox churches,” and linked the movement to “radical
nationalism and neo-Nazism.”
Russia’s Deputy Justice Minister Oleg Sviridenko said the ban was the result of
coordinated efforts between law enforcement and the judiciary “within the
framework of state control aimed at protecting national interests and
strengthening public safety.”
The Russian Orthodox Church and conservative lawmakers have called for years for
Satanist ideology to be outlawed. In April Russia’s lower house of parliament,
the State Duma, hosted a roundtable on combating Satanism and other beliefs
considered a threat to Russian statehood.
The ruling adds to a growing list of ideological and religious movements
targeted under Russia’s 2002 extremism law, a tool critics argue has often been
used to stifle criticism of the Russian Orthodox Church and Kremlin policies.
LONDON — In a crowded Turkish restaurant on Monday night, two of the British
Labour Party’s most infamous power brokers rallied the troops.
Ambassador to the U.S. Peter Mandelson, who turned up at a fundraising event
with No. 10 chief of staff Morgan McSweeney, said every day in government was
tough, and today’s media made it even harder than his time as a minister two
decades ago.
Just how hard became clear 15 minutes later. The media was not to blame.
A mile away in parliament, more than 100 of Keir Starmer’s own MPs had launched
a mass effort to kill a £5 billion plank of his agenda.
The scale and format of an amendment against the prime minister’s cuts to
disability benefits blindsided some in government, and left the PM scrambling to
agree concessions this week. It also led to dark mutterings about the authority
of McSweeney — who led Labour to a landslide in last year’s election on a
strategy of suppressing the left.
While British politics is no stranger to civil war, Starmer’s army was meant to
be different. McSweeney’s aides selected candidates so ruthlessly for loyalty
that the media nicknamed them Starmtroopers.
But some MPs see the welfare issue as a tipping point after months of
frustration at difficult decisions, U-turns and what they brand a lack of
engagement from No. 10 — just as May’s local election results suggest they will
lose to Nigel Farage’s Reform UK in 2029.
With 400 Labour MPs scrambling for a legacy, some also fear they are running out
of time to become a minister, or make any mark at all.
Many of the MPs coming out of their shell are those on the so-called “soft
left,” rather than the centrist model of McSweeney. Many remain loyal. But one
Cabinet minister said MPs — Tory and Labour alike — are now more willing to
speak their minds “across the board.”
“Lots of colleagues just don’t feel that they are listened to or that they have
a way to shape policy and thinking,” said a second Cabinet minister. Like around
two dozen Labour MPs, ministers and officials who spoke to POLITICO, they were
granted anonymity to speak frankly.
Ambassador to the U.S. Peter Mandelson said every day in government was tough,
and today’s media made it even harder than his time as a minister two decades
ago. | Pool Photo by Bonnie Cash via EPA
They added: “I think it’s blown into the welfare bill in particular, but it’s
part of a wider frustration. Some of it is reasonable — they want to be listened
to and involved. But sometimes the work of government is delivering the things
you said you were going to do.”
‘I’VE NEVER HAD A CONVERSATION WITH HIM’
Keir Starmer heads an army of 402 MPs. There’s one problem: some of them have
never met him.
“I met him on the day we had our group picture taken — in the sense he moved
through the crowd,” Neil Duncan-Jordan, a new MP, told POLITICO by WhatsApp.
“I’ve never had a conversation with him. He’s never sent me a note
congratulating me on my amazing victory etc. The public can’t believe it, but
it’s true. I doubt he knows who I am.” A second backbencher told POLITICO they
had never met the PM in their life.
Starmer’s brisk, efficient style is his sales pitch; as PM his big promise is
“delivery.” Yet those qualities now work against him, argued Mark Spencer, chief
whip for almost three years under Boris Johnson.
During Spencer’s time a Tory majority of 80 collapsed into chaos amid stories of
Downing Street parties during the COVID pandemic.
Ironically, Spencer argues Johnson’s problem was that he couldn’t host drinks
for MPs due to the virus. “If I were the chief whip [now], I would be chewing
the ear of No. 10 saying, you’ve got to open those doors. You’ve got to try and
schmooze these Labour MPs,” he said.
MPs need to have fun, Spencer added: “There are a lot of upsides to being an MP,
aren’t there? You know, visits with APPGs [single-issue pressure groups] or
social events. Some of the lobbying events [are] actually quite pleasant. And
MPs in the 2019 intake got all the hassle … without any of the upside.”
When Tory MPs oversaw austerity cuts in 2010, Spencer says PM David Cameron and
Chancellor George Osborne visited the Commons tearoom regularly. That helped
steel them for the electoral fight in 2015.
But one Labour frontbencher said Starmer, while he does visit the tearoom, is
“not a fucking regular … he doesn’t know anyone there. He doesn’t go to
Stranger’s [the bar for MPs], he doesn’t go out on the terrace, he doesn’t vote
very often. And it’s led to more of an ‘us and them’ mentality between
parliament and No. 10 than was necessary.”
They added: “The mood of the PLP [Parliamentary Labour Party] is really
fractured. [Some] people are now entrenched in their positions … everywhere you
look there are huddled conversations. You know whether their names are on the
list [of rebels] or not. It makes for quite a tense atmosphere.”
For months, Starmer has hosted Wednesday lunches with Pret a Manger sandwiches
in his Commons office with small groups of MPs.
One Labour MP, however, complained: “It’s not a proper meeting. He likes to muse
about what he said to Macron at some summit or another but it’s like there’s
nothing there behind the eyes.”
Starmer is making up for lost time. The PM phoned rebels personally on Thursday
night in a bid to reach a compromise over the welfare cuts — while his Chief
Whip, Alan Campbell, went on the Commons terrace.
‘THERE’S NO ENGAGEMENT’
Several MPs have been demanding more attention from the relatively small No. 10
political team, led by seasoned former No. 10 aide Claire Reynolds and
ultimately presided over by McSweeney.
One MP complained to POLITICO in January: “There’s no engagement, nothing. It’s
astonishing really.”
Some MPs who dislike McSweeney’s politics lament the departure of Luke Sullivan,
Starmer’s former political director who was not brought into government when
Labour took office last summer, and Keir Cozens, who left his role as PLP
Secretary in 2023.
They were “of a slightly different part of the party, and have broad appeal and
good relationships,” said one Labour official. Instead, the official argued,
there are “the remnants of quite a factional operation.”
The frontbencher quoted above added: “After Luke left … they’ve never really
invested time in it, whether that’s staff time or the prime minister’s time. You
get your set-piece roundtable, your set-piece trip into No. 10 but that’s it.”
One Labour regional mayor suggested No. 10 was too preoccupied with seeming
tough: “There are too many books being read in No. 10 about Machiavelli, and not
enough books about charm and love.”
Starmer’s and McSweeney’s allies insist the criticism is unfair. One supportive
frontbencher said letters go out constantly to engage with MPs, and there are
“hundreds of hours of meetings.”
A third cabinet minister said some rebels had signed the amendment against
welfare cuts without realizing that it could sink the entire bill.
Another loyal MP pointed out plenty of their colleagues are still diehard
supporters of the government. “When I looked at the list of names on the
[welfare] amendment, there were only one or two who surprised me,” they added.
Downing Street figures argue that Reeves’ spending review this month — which
poured billions of capital investment into infrastructure projects — left MPs
feeling happier. | Andy Rain/EPA
But a loyal senior member of the government argued: “They [MPs] are not spoken
to, they’re not listened to … their thoughts just aren’t considered.” Pointing
the finger at McSweeney, they added: “For the inner group of people, this has
always been their problem — they don’t understand politicians.
“I don’t think it’s a fundamental breakdown, but I think it is about an urgent
need for a reset. And I don’t mean a reset like ‘go on the TV and do a speech,’
I’m talking about internal things. They need a radical shake-up.”
FINDING THEIR VOICE
The welfare cuts created a perfect storm, but grumblings started earlier.
The first noses were put out of joint last summer, when a small group of new MPs
received promotions to ministerial ranks. Other MPs eyeing their legacy fear
they will never be promoted, even though there are persistent rumors of a July
reshuffle.
One ambitious new MP said: “A lot of people say ‘I’ve got no chance of getting a
job so I’ll have to do things by other means.’ [No. 10] haven’t done a wide
enough job of showing people it’s a possibility.”
Another Labour MP put it more bluntly: “I don’t want to have spent four years of
my life as lobby fodder for a government I often didn’t agree with.”
Plenty of issues have now arrived where MPs can use that voice. Several cited
the recent debate over assisted dying, where MPs had to make up their own mind
rather than following the party whip, as a clarifying moment.
Learning how parliamentary procedure works is also making MPs more confident,
just as they finally settle on their friends, their pet issues — and perhaps in
future, their factions.
Formal groups of Labour MPs are centered around old “red wall” seats, growth,
coastal areas, specific regions, rural seats, the socially conservative “Blue
Labour” movement, trade unions, the Co-Op Party and a new group, Labour Future.
While several of these back the government forcefully, they still create more
bases for MPs away from No. 10.
Whips have noted an uptick in skirmishes in recent months with the left-wing
Socialist Campaign Group, some of whose members lost the whip after rebelling on
welfare cuts last year. One Labour official said drily: “It’s tolerated as long
as it’s at a low level and not very visible.”
Individual issues drive MPs too. New MP Chris Hinchliff challenged the
government over its bill to free up housing developments, while Paul Waugh, the
Labour MP for Rochdale, backed (with caveats) calls for a national inquiry into
grooming gangs in January, when the government was still resisting one. The war
between Israel and Gaza — and the U.K.’s restrained response — has tested many
MPs’ resolve.
‘OPEN SEASON’
The question in No. 10 will be what comes next.
Speculation continues within government that a small number of frontbenchers
will resign over welfare cuts, though it was not immediately clear if this would
be prevented by Starmer’s planned concessions on Thursday.
Keir Starmer heads an army of 402 MPs. There’s one problem: some of them have
never met him. | Pool photo by Chris Ratcliffe via EPA
Starmer’s allies recently downplayed talk of a ministerial reshuffle in July,
arguing the prime minister and McSweeney view personnel changes as a long-term
strategy for the next election.
Whenever the next reshuffle does happen, it will create a moment of danger,
argued one person who speaks regularly to No. 10. They said: “Once that’s
passed, it’s sort of going to be open season, especially as a lot of MPs are now
contemplating just being a one-term MP.”
Another moment of danger from “soft left” MPs will be the government’s delayed
child poverty strategy, which two people in government said was likely to be
tied to Chancellor Rachel Reeves’ budget in the autumn.
Senior figures in government have been pushing for the strategy to end the
two-child limit on benefits, a prospect Starmer has not ruled out.
A Labour figure close to No. 10 said the strategy would spend large amounts of
money. They added: “Keir cares passionately about reducing child poverty. He
thinks it’s one of the defining purposes of a Labour government.
“So he’ll be absolutely clear he has to make sure child poverty is lower at the
end of the parliament than the beginning. He’d be mortified if it wasn’t — and I
think he’ll pull whatever levers are needed to prevent it.”
MPs will then face Reeves’ autumn budget — with all the speculation that it will
raise taxes — and a king’s speech laying out the next phase of Starmer’s agenda.
Some are already arguing that backbench MPs should be consulted about the next
king’s speech.
Downing Street figures argue that Reeves’ spending review this month — which
poured billions of capital investment into infrastructure projects — left MPs
feeling happier.
But with difficult Scottish and Welsh elections coming next May, some MPs
continue to feel gloomy.
A frontbencher said: “I think if things haven’t shifted in a year’s time, the
center simply can’t carry on as it is … we have 12 months to really prove
ourselves.” They dismissed talk of blaming McSweeney, saying: “It’s a Keir
problem. He has to take responsibility.”
One MP on the Labour left put it more bluntly: “I just can’t see him leading us
into the next election. He’s just so damaged on what he is and who he is. You’ve
got to stand for something, haven’t you?”
That prospect remains remote, for now — but more of Starmer’s MPs are taking a
stand anyway.
Emilio Casalicchio, Annabelle Dickson, Noah Keate and Andrew McDonald
contributed reporting.