HELSINKI — Europe’s easternmost countries have a blunt message for Brussels:
Russia is testing their borders, and the EU needs to start paying for the
response.
Leaders from eight EU states bordering Russia will use a summit in Helsinki on
Tuesday to press for dedicated defense funding in the bloc’s next long-term
budget, arguing that frontline security can no longer be treated as a national
expense alone, according to three European government officials.
“Strengthening Europe’s eastern flank must become a shared responsibility for
Europe,” Estonian Prime Minister Kristen Michal said Monday.
The first-of-its-kind summit, spearheaded by Finnish Premier Petteri Orpo,
underscores a growing anxiety among the EU’s so-called Eastern flank countries
about Russia’s increasingly brazen efforts to test their defenses and stir panic
among their populations.
In recent months Russia has flown fighter jets into Estonian airspace and sent
dozens of drones deep into Polish and Romanian territory. Its ally Belarus has
repeatedly brought Lithuanian air traffic to a standstill by allowing giant
balloons to cross its borders. And last week, Moscow’s top envoy Sergey Lavrov
issued a veiled threat to Finland to exit NATO.
“Russia is a threat to Europe … far into the future,” Orpo told Finnish daily
Helsingin Sanomat on Saturday. “There is always a competition for resources in
the EU, but [defense funding] is not something that is taken away from anyone.”
Tuesday’s confab, attended by Finland, Sweden, Estonia, Latvia, Lithuania,
Poland, Romania and Bulgaria, comes during a critical week for Europe. On Monday
several EU leaders met with U.S. officials as they strain to hammer out a peace
deal in Ukraine, just three days before all 27 EU countries reconvene for a
crucial summit that will determine whether they unlock €210 billion in frozen
Russian cash for Kyiv.
OPEN THE VAULTS
At the heart of Tuesday’s discussion will be unblocking EU money.
The frontline countries want the EU to “propose new financial possibilities for
border countries and solidarity-based financial tools,” said one of the
government officials.
As part of its 2028-2034 budget proposal, the European Commission plans to raise
its defense spending fivefold to €131 billion. Frontline countries would like
some of that cash to be earmarked for the region, two of the government
officials said, a message they are likely to reiterate during Thursday’s
European Council summit in Brussels.
“Strengthening Europe’s eastern flank must become a shared responsibility for
Europe,” Estonian Prime Minister Kristen Michal said. | Hendrik Schmidt/Getty
Images
In the meantime, the EU should consider new financial instruments similar to the
bloc’s €150 billion loans-for-weapons program, called the Security Action For
Europe, the same two officials said. European Commission chief Ursula von der
Leyen told POLITICO last week she had received calls to set up a “second SAFE”
after the first iteration was oversubscribed.
The frontline countries also want to throw their political weight behind two
upcoming EU projects to buttress the bloc’s anti-drone and broader defenses, the
two officials said. EU leaders refused to formally endorse the Eastern Flank
Watch and European Drone Defense Initiative at a summit in October amid
opposition by countries like Hungary, France and Germany, who saw them as
overreach by Brussels on defense, two EU diplomats said at the time.
A request to reserve part of the EU budget for a specific region may also face
opposition from other countries. To get around this, Eastern flank countries
should link defense “infrastructure improvements to overall [EU] economic
development,” said Jamie Shea, a senior defense fellow at the Friends of Europe
think tank and a former NATO spokesperson.
Frontline capitals should also look at “opening up [those infrastructure
projects] for competitive bidding” to firms outside the region, he added.
DIFFERENT REGION, DIFFERENT VIEW
Cash won’t be the only divisive issue in the shadows of Tuesday’s gathering. In
recent weeks Donald Trump’s administration has repeatedly rebuked Europe, with
the U.S. president branding the continent’s leaders “weak” in an interview with
POLITICO.
Countries like Germany and Denmark have responded to growing U.S. admonishments
by directly rebutting recent criticisms and formally branding Washington a
“security risk”.
But that approach has rankled frontline countries, conscious of jeopardizing
Washington’s commitment to NATO’s collective defense pledge, which they see as a
last line of protection against Moscow.
This view also reflects a growing worry inside NATO that a peace deal in Ukraine
will give Moscow more bandwidth to rearm and redirect its efforts toward
frontline countries.
“If the war stops in Ukraine … [Russia’s] desire is to keep its soldiers busy,”
said one senior NATO diplomat, arguing those troops are likely to be “relocated
in our direction.”
“Europe should take over [its own] defenses,” the diplomat added. But until the
continent becomes militarily independent, “we shouldn’t talk like this” about
the U.S., they argued. “It’s really dangerous [and] it’s stupid.”
Jacopo Barigazzi contributed to this report from Brussels.
Tag - Development
This article is presented by EFPIA with the support of AbbVie
I made a trip back to Europe recently, where I spent the vast majority of my
pharmaceutical career, to share my perspectives on competitiveness at the
European Health Summit. Now that I work in a role responsible for supporting
patient access to medicine globally, I view Europe, and how it compares
internationally, through a new lens, and I have been reflecting further on why
the choices made today will have such a critical impact on where medicines are
developed tomorrow.
Today, many patients around the world benefit from medicines built on European
science and breakthroughs of the last 20 years. Europeans, like me, can be proud
of this contribution. As I look forward, my concern is that we may not be able
to make the same claim in the next 20 years. It’s clear that Europe has a
choice. Investing in sustainable medicines growth and other enabling policies
will, I believe, bring significant benefits. Not doing so risks diminishing
global influence.
> Today, many patients around the world benefit from medicines built on European
> science and breakthroughs of the last 20 years
I reflect on three important points: 1) investment in healthcare benefits
individuals, healthcare and society, but the scale of this benefit remains
underappreciated; 2) connected to this, the underpinning science for future
innovation is increasingly happening elsewhere; and 3) this means the choices we
make today must address both of these trends.
First, let’s use the example of migraine. As I have heard a patient say,
“Migraine will not kill you but neither [will they] let you live.”[1]
Individuals can face being under a migraine attack for more than half of every
month, unable to leave home, maintain a job and engage in society.[2] It is the
second biggest cause of disability globally and the first among young women.[3]
It affects the quality of life of millions of Europeans.[4] From 2011-21 the
economic burden of migraine in Europe due to the loss of working days ranged
from €35-557 billion, depending on the country, representing 1-2 percent of
gross domestic product (GDP).[5]
Overall socioeconomic burden of migraine as percentage of the country’s GDP in
2021
Source: WifOR, The socioeconomic burden of migraine. The case of 6 European
Countries.5
Access to effective therapies could radically improve individuals’ lives and
their ability to return to work.[6] Yet, despite the staggering economic and
personal impacts, in some member states the latest medicines are either not
reimbursed or only available after several treatment failures.[7] Imagine if
Europe shifted its perspective on these conditions, investing to improve not
only health but unlocking the potential for workforce and economic productivity?
Moving to my second point, against this backdrop of underinvestment, where are
scientific advances now happening in our sector?
In recent years it is impressive to see China has become the second-largest drug
developer in the world,[8] and within five years it may lead the innovative
antibodies therapeutics sector,[9] which is particularly promising for complex
areas like oncology.
Cancer is projected to become the leading cause of death in Europe by 2035,[10]
yet the continent’s share of the number of oncology trials dropped from 41
percent in 2013 to 21 percent in 2023.10
Today, antibody-drug conjugates are bringing new hope in hard-to-treat tumor
types,[11] like ovarian,[12] lung[13] and colorectal[14] cancer, and we hope to
see more of these advances in the future. Unfortunately, Europe is no longer at
the forefront of the development of these innovations. This geographical shift
could impact high-quality jobs, the vitality of Europe’s biotech sector and,
most importantly, patients’ outcomes. [15]
> This is why I encourage choices to be made that clearly signal the value
> Europe attaches to medicines
This is why I encourage choices to be made that clearly signal the value Europe
attaches to medicines. This can be done by removing national cost-containment
measures, like clawbacks, that are increasingly eroding the ability of companies
to invest in European R&D. To provide a sense of their impact, between 2012 and
2023, clawbacks and price controls reduced manufacturer revenues by over €1.2
billion across five major EU markets, corresponding to a loss of 4.7 percent in
countries like Spain.[16] Moreover, we should address health technology
assessment approaches in Europe, or mandatory discount policies, which are
simply not adequately accounting for the wider societal value of medicines, such
as in the migraine example, and promoting a short-term approach to investment.
By broadening horizons and choosing a long-term investment strategy for
medicines and the life science sector, Europe will not only enable this
strategic industry to drive global competitiveness but, more importantly, bring
hope to Europeans suffering from health conditions.
AbbVie SA/NV – BE-ABBV-250177 (V1.0) – December 2025
--------------------------------------------------------------------------------
[1] The Parliament Magazine,
https://www.theparliamentmagazine.eu/partner/article/unmet-medical-needs-and-migraine-assessing-the-added-value-for-patients-and-society,
Last accessed December 2025.
[2] The Migraine Trust;
https://migrainetrust.org/understand-migraine/types-of-migraine/chronic-migraine/,
Last accessed December 2025.
[3] Steiner TJ, et al; Lifting The Burden: the Global Campaign against Headache.
Migraine remains second among the world’s causes of disability, and first among
young women: findings from GBD2019. J Headache Pain. 2020 Dec 2;21(1):137
[4] Coppola G, Brown JD, Mercadante AR, Drakeley S, Sternbach N, Jenkins A,
Blakeman KH, Gendolla A. The epidemiology and unmet need of migraine in five
european countries: results from the national health and wellness survey. BMC
Public Health. 2025 Jan 21;25(1):254. doi: 10.1186/s12889-024-21244-8.
[5] WifOR. Calculating the Socioeconomic Burden of Migraine: The Case of 6
European Countries. Available at:
[https://www.wifor.com/en/download/the-socioeconomic-burden-of-migraine-the-case-of-6-european-countries/?wpdmdl=358249&refresh=687823f915e751752703993].
Accessed June 2025.
[6] Seddik AH, Schiener C, Ostwald DA, Schramm S, Huels J, Katsarava Z. Social
Impact of Prophylactic Migraine Treatments in Germany: A State-Transition and
Open Cohort Approach. Value Health. 2021 Oct;24(10):1446-1453. doi:
10.1016/j.jval.2021.04.1281
[7] Moisset X, Demarquay G, et al., Migraine treatment: Position paper of the
French Headache Society. Rev Neurol (Paris). 2024 Dec;180(10):1087-1099. doi:
10.1016/j.neurol.2024.09.008.
[8] The Economist,
https://www.economist.com/china/2025/11/23/chinese-pharma-is-on-the-cusp-of-going-global,
Last accessed December 2025.
[9] Crescioli S, Reichert JM. Innovative antibody therapeutic development in
China compared with the USA and Europe. Nat Rev Drug Discov. Published online
November 7, 2025.
[10] Manzano A., Svedman C., Hofmarcher T., Wilking N.. Comparator Report on
Cancer in Europe 2025 – Disease Burden, Costs and Access to Medicines and
Molecular Diagnostics. EFPIA, 2025. [IHE REPORT 2025:2, page 20]
[11] Armstrong GB, Graham H, Cheung A, Montaseri H, Burley GA, Karagiannis SN,
Rattray Z. Antibody-drug conjugates as multimodal therapies against
hard-to-treat cancers. Adv Drug Deliv Rev. 2025 Sep;224:115648. doi:
10.1016/j.addr.2025.115648. Epub 2025 Jul 11. PMID: 40653109..
[12] Narayana, R.V.L., Gupta, R. Exploring the therapeutic use and outcome of
antibody-drug conjugates in ovarian cancer treatment. Oncogene 44, 2343–2356
(2025). https://doi.org/10.1038/s41388-025-03448-3
[13] Coleman, N., Yap, T.A., Heymach, J.V. et al. Antibody-drug conjugates in
lung cancer: dawn of a new era?. npj Precis. Onc. 7, 5 (2023).
https://doi.org/10.1038/s41698-022-00338-9
[14] Wang Y, Lu K, Xu Y, Xu S, Chu H, Fang X. Antibody-drug conjugates as
immuno-oncology agents in colorectal cancer: targets, payloads, and therapeutic
synergies. Front Immunol. 2025 Nov 3;16:1678907. doi:
10.3389/fimmu.2025.1678907. PMID: 41256852; PMCID: PMC12620403.
[15] EFPIA, Improving EU Clinical Trials: Proposals to Overcome Current
Challenges and Strengthen the Ecosystem,
efpias-list-of-proposals-clinical-trials-15-apr-2025.pdf, Last accessed December
2025.
[16] The EU General Pharmaceutical Legislation & Clawbacks, © Vital
Transformation BVBA, 2024.
The discussion surrounding the digital euro is strategically important to
Europe. On Dec. 12, the EU finance ministers are aiming to agree on a general
approach regarding the dossier. This sets out the European Council’s official
position and thus represents a major political milestone for the European
Council ahead of the trilogue negotiations. We want to be sure that, in this
process, the project will be subject to critical analysis that is objective and
nuanced and takes account of the long-term interests of Europe and its people.
> We do not want the debate to fundamentally call the digital euro into question
> but rather to refine the specific details in such a way that opportunities can
> be seized.
We regard the following points as particularly important:
* maintaining European sovereignty at the customer interface;
* avoiding a parallel infrastructure that inhibits innovation; and
* safeguarding the stability of the financial markets by imposing clear holding
limits.
We do not want the debate to fundamentally call the digital euro into question
but rather to refine the specific details in such a way that opportunities can
be seized and, at the same time, risks can be avoided.
Opportunities of the digital euro:
1. European resilience and sovereignty in payments processing: as a
public-sector means of payment that is accepted across Europe, the digital
euro can reduce reliance on non-European card systems and big-tech wallets,
provided that a firmly European design is adopted and it is embedded in the
existing structures of banks and savings banks and can thus be directly
linked to customers’ existing accounts.
2. Supplement to cash and private-sector digital payments: as a central bank
digital currency, the digital euro can offer an additional, state-backed
payment option, especially when it is held in a digital wallet and can also
be used for e-commerce use cases (a compromise proposed by the European
Parliament’s main rapporteur for the digital euro, Fernando Navarrete). This
would further strengthen people’s freedom of choice in the payment sphere.
3. Catalyst for innovation in the European market: if integrated into banking
apps and designed in accordance with the compromises proposed by Navarrete
(see point 2), the digital euro can promote innovation in retail payments,
support new European payment ecosystems, and simplify cross-border payments.
> The burden of investment and the risk resulting from introducing the digital
> euro will be disproportionately borne by banks and savings banks.
Risks of the current configuration:
1. Risk of creating a gateway for US providers: in the configuration currently
planned, the digital euro provides US and other non-European tech and
payment companies with access to the customer interface, customer data and
payment infrastructure without any of the regulatory obligations and costs
that only European providers face. This goes against the objective of
digital sovereignty.
2. State parallel infrastructures weaken the market and innovation: the
European Central Bank (ECB) is planning not just two new sets of
infrastructure but also its own product for end customers (through an app).
An administrative body has neither the market experience nor the customer
access that banks and payment providers do. At the same time, the ECB is
removing the tried-and-tested allocation of roles between the central bank
and private sector.
Furthermore, the Eurosystem’s digital euro project will tie up urgently
required development capacity for many years and thereby further exacerbate
Europe’s competitive disadvantage. The burden of investment and the risk
resulting from introducing the digital euro will be disproportionately borne
by banks and savings banks. In any case, the banks and savings banks have
already developed a European market solution, Wero, which is currently
coming onto the market. The digital euro needs to strengthen rather than
weaken this European-led payment method.
3. Risks for financial stability and lending: without clear holding limits,
there is a risk of uncontrolled transfers of deposits from banks and savings
banks into holdings of digital euros. Deposits are the backbone of lending;
large-scale outflows would weaken both the funding of the real economy –
especially small and medium-sized enterprises – and the stability of the
system. Holding limits must therefore be based on usual payment needs and be
subject to binding regulations.
--------------------------------------------------------------------------------
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Bundesverband der Deutschen Volksbanken und Raiffeisenbanken
e.V. , Schellingstraße 4, 10785 Berlin, Germany
* The ultimate controlling entity is Bundesverband der Deutschen Volksbanken
und Raiffeisenbanken e.V. , Schellingstraße 4, 10785 Berlin, Germany
More information here.
President Donald Trump’s latest round of Europe-bashing has the U.S.’s allies
across the Atlantic revisiting a perennial question: Why does Trump hate Europe
so much?
Trump’s disdain for America’s one-time partners has been on prominent display in
the past week — first in Trump’s newly released national security strategy,
which suggested that Europe was suffering from civilizational decline, and then
in Trump’s exclusive interview with POLITICO, where he chided the “decaying”
continent’s leaders as “weak.” In Europe, Trump’s criticisms were met with more
familiar consternation — and calls to speed up plans for a future where the
continent cannot rely on American security support.
But where does Trump’s animosity for Europe actually come from? To find out, I
reached out to a scholar who’d been recommended to me by sources in MAGA world
as someone who actually understands their foreign policy thinking (even if he
doesn’t agree with it).
“He does seem to divide the world into strength and weakness, and he pays
attention to strength, and he kind of ignores weakness,” said Jeremy Shapiro,
the research director at the European Council on Foreign Relations and an expert
on Trump’s strained relations with the continent. “And he has long characterized
the Europeans as weak.”
Shapiro explained that Trump has long blamed Europe’s weakness on its low levels
of military spending and its dependence on American security might. But his
critique seems to have taken on a new vehemence during his second term thanks to
input from new advisers like Vice President JD Vance, who have successfully cast
Europe as a liberal bulwark in a global culture war between MAGA-style
“nationalists” and so-called globalists.
Like many young conservatives, Shapiro explained, Vance has come to believe that
“it was these bastions of liberal power in the culture and in the government
that stymied the first Trump term, so you needed to attack the universities, the
think tanks, the foundations, the finance industry, and, of course, the deep
state.” In the eyes of MAGA, he said, “Europe is one of these liberal bastions.”
This conversation was edited for length and clarity.
Trump’s recent posture toward Europe brings to mind the old adage that the
opposite of love isn’t hate, it’s indifference. Do you think Trump hates Europe,
or does he just think it’s irrelevant?
My main impression is that he’s pretty indifferent toward it. There are moments
when specific European countries or the EU really pisses him off and he
expresses something that seems close to hatred, but mostly he doesn’t seem very
focused on it.
Why do you think that is?
He does seem to divide the world into strength and weakness, and he pays
attention to strength, and he kind of ignores weakness. And he has long
characterized the Europeans as weak for a bunch of different reasons having to
do with what seems to him to be a decadence in their society, their immigration,
their social welfare states, their lack of apparent military vigor. All of those
things seem to put them in the weak category, and in Trump’s world, if you’re in
the weak category, he doesn’t pay much attention to you.
What about more prosaic things like the trade imbalance and NATO spending? Do
those contribute to his disdain, or does it originate from a more guttural
place?
I get the impression that it is more at a guttural level. It always seemed to me
that the NATO spending debate was just a stick with which to beat the NATO
allies. He has long understood that that’s something that they felt a little bit
guilty about, and that’s something that American presidents had beat them about
for a while, so he just sort of took it to an 11.
The trade deficit is something that’s more serious for him. He’s paid quite a
bit of attention to that in every country, so it’s in the trade area where he
takes Europeans most seriously. But because they’re so weak and so dependent on
the United States for security, he hasn’t had to deal with their trade problems
in the same way. He’s able to threaten them on security, and they have folded
pretty quickly.
Does some of his animosity originate from his pre-presidency when he did
business in Europe? He likes to blame Europeans for nixing some of his business
transactions, like a golf course in Ireland. How serious do you think that is?
I think that’s been important in forming his opinion of the EU rather than of
Europe as a whole. He never seems to refer to the EU without referring to the
fact that they blocked his golf course in Ireland. It wasn’t even the EU that
blocked it, actually — it was an Irish local government authority — but it
conforms to the general MAGA view of the EU as overly bureaucratic,
anti-development and basically as an extension of the American liberal approach
to development and regulation, which Trump certainly does hate.
That’s part of what led Trump and his movement more generally to put the EU in
the category of supporters of liberal America. In that sense, the fight against
the EU in particular — but also against the other liberal regimes in Europe —
became an extension of their domestic political battle with liberals in America.
That effort to pull Europe as a whole into the American culture war by
positioning it as a repository of all the liberal pieties that MAGA has come to
hate — that seems kind of new.
That is new for the second term, yeah.
Where do you think that’s coming from?
It definitely seems to be coming from [Vice President] JD Vance and the sort of
philosophers who support him — the Patrick Deneens and Yoram Hazonys. Those
types of people see liberal Europe as quite decadent and as part of the overall
liberal problem in the world. You can also trace some of it back to Steve
Bannon, who has definitely been talking about this stuff for a while.
There does seem to be a real preoccupation with the idea that Europe is
suffering from some sort of civilizational decline or civilization collapse. For
instance, in both the new national security strategy and in his remarks to
POLITICO this week, Trump has suggested that Europe is “decaying.” What do you
make of that?
This is a bit of a projection, right? If you look at the numbers in terms of
immigration and diversity, the United States is further ahead in that decay — if
you want to call it that — than Europe.
There was this view that emerged among MAGA elites in the interregnum that it
wasn’t enough to win the presidency in order to successfully change America. You
had to attack all of the bastions of liberal power. It was these bastions of
liberal power in the culture and in the government that stymied the first Trump
term, so you needed to attack the universities, the think tanks, the
foundations, the finance industry and, of course, the deep state, which is the
first target. It was only through attacking these liberal bastions and
conquering them to your cause that you could have a truly transformative effect.
One of the things that they seem to have picked up while contemplating this
theory is that Europe is one of these liberal bastions. Europe is a support for
liberals in the United States, in part because Europe is the place where
Americans get their sense of how the world views them.
It’s ironic that that image of a decadent Europe coexists with the rise of
far-right parties across the continent. Obviously, the Trump administration has
supported those parties and allied with them, but at least in France and
Germany, the momentum seems to be behind these parties at the moment.
That presents them with an avenue to destroy liberal Europe’s support for
liberal America by essentially transforming Europe into an illiberal regime.
That is the vector of attack on liberal Europe. There has been this idea that’s
developed amongst the populist parties in Europe since Brexit that they’re not
really trying to leave the EU or destroy the EU; they’re trying to remake the EU
in their nationalist and sovereigntist image. That’s perfect for what the Trump
people are trying to do, which is not destroy the EU fully, but destroy the EU
as a support for liberal ideas in the world and the United States.
You mentioned the vice president, who has become a very prominent mouthpiece for
this adversarial approach to Europe — most obviously in his speech at
Munich earlier this year. Do you think he’s just following Trump’s guttural
dislike of Europe or is he advancing his own independent anti-European agenda?
A little of both. I think that Vance, like any good vice president, is very
careful not to get crosswise with his boss and not contradict him in any way. So
the fact that Trump isn’t opposed to this and that he can support it to a degree
is very, very important. But I think that a lot of these ideas come from Vance
independently, at least in detail. What he’s doing is nudging Trump along this
road. He’s thinking about what will appeal to Trump, and he’s mostly been
getting it right. But I think that especially when it comes to this sort of
culture war stuff with Europe, he’s more of a source than a follower.
During this latest round of Trump’s Euro-bashing, did anything stand out to you
as new or novel? Or was it all of a piece with what you had heard before?
It was novel relative to a year ago, but not relative to February and since
then. But it’s a new mechanism of describing it — through a national security
strategy document and through interviews with the president. The same arguments
have achieved a sort of higher status, I would say, in the last week or so. You
could sit around in Europe — as I did — and argue about the degree to which this
really was what the Trump administration was doing, or whether this was just a
faction — and you can still have that argument, because the Trump administration
is generally quite inconsistent and incoherent when it comes to this kind of
thing — but I think it’s undoubtedly achieved a greater status in the last week
or two.
How do you think Europe should deal with Trump’s recurring animosity towards the
continent? It seems they’ve settled on a strategy of flattery, but do you think
that’s effective in the long run?
No, I think that’s the exact opposite of effective. If you recall what I said at
the beginning, Trump abhors weakness, and flattery is the sort of ultimate
manifestation of weakness. Every time the Europeans show up and flatter Trump,
it enables them to have a good meeting with him, but it conveys the impression
to him that they are weak, and so it increases his policy demands against them.
We’ve seen that over and over again. The Europeans showed up and thought they
had changed his Ukraine position, they had a great meeting, he said good things
about them, they went home and a few weeks later, he had a totally different
Ukraine position that they’re now having to deal with. The flattery has achieved
the sense in the Trump administration that they can do anything they want to the
Europeans, and they’ll basically swallow it.
They haven’t done what some other countries have done, like the Chinese or the
Brazilians, or even the Canadians to some degree, which is to stand up to Trump
and show him that he has to deal with them as strong actors. And that’s a shame,
because the Europeans — while they obviously have an asymmetric dependence on
the United States, and they have some weaknesses — are a lot stronger than a lot
of other countries, especially if they were working together. I think they have
some capacity to do that, but they haven’t really managed it as of yet. Maybe
this will be a wake-up call to do that.
LONDON — Scandal-hit Japanese tech firm Fujitsu has lost its grip on a lucrative
contract to keep running Great Britain’s post-Brexit border with Northern
Ireland, following mounting public pressure, two people with knowledge of the
bidding process have told POLITICO.
The firm at the center of the Post Office scandal — which saw faulty data from
Fujitsu’s Horizon software lead to wrongful theft and fraud convictions of
hundreds of innocent Post Office workers — had spearheaded a consortium bid for
the £370 million contract to continue running the Trader Support Service (TSS),
as reported earlier this year.
The contract was awarded to another consortium late last month, according to the
two people cited above. The 10-day cooling-off period after the contract was
awarded ends on Tuesday.
The Fujitsu-led consortium, which includes Liz Truss ally Shanker Singham’s firm
Competere, has raked in more than £500 million since 2020 developing and
operating the platform, which helps firms navigate the complicated post-Brexit
customs arrangements between Great Britain and Northern Ireland under the
Windsor Framework.
While a new supplier will be taking control of TSS, Fujitsu retains the
intellectual property rights to a core part of the existing platform, four
people with knowledge of the process — including those cited above — confirmed.
This means the new system will have to be built from scratch.
All of those cited in this story were granted anonymity to speak freely.
There have been calls for Fujitsu to be stripped of its public contracts while
sub postmasters affected by the scandal await full compensation. In August, more
than 32 MPs and 44 peers wrote to U.K. Prime Minister Keir Starmer, urging him
to block the firm from bidding for control of the TSS platform.
In October, the government accepted all but one of the recommendations from Wyn
Williams’ inquiry into the scandal, published in July, which concluded that at
least 13 people may have taken their own lives after being accused of
wrongdoing.
There has also been public scrutiny over the running of TSS. Cabinet Office
Minister Nick Thomas-Symonds told lawmakers earlier this year he was
investigating industry concerns about the service. “We are concerned to hear
reports that the Trader Support Service is not providing a good quality of
service,” cross-party peers on the Northern Ireland Scrutiny Committee wrote in
an October report.
Meanwhile, a report by the Federation of Small Businesses found current support
relating to the Windsor Framework — including the TSS — was “falling short of
expectations,” with 78 percent of Northern Irish businesses surveyed rating it
as either “very poor” or “poor.”
A spokesperson for HMRC, which awarded the contract, said: “We follow government
procurement rules when awarding contracts, ensuring value for money for
taxpayers. All bids underwent a robust evaluation and assurance process, and we
will confirm the award in due course.”
Fujitsu and Competere did not respond to requests for comment.
Sprawling defense legislation set for a vote as soon as this week would place
new restrictions on reducing troop levels in Europe, a bipartisan rebuke of
Trump administration moves that lawmakers fear would limit U.S. commitments on
the continent.
A just-released compromise version of the National Defense Authorization Act —
which puts Congress’ stamp on Pentagon programs and policy each year — has been
in the works for months. The measure stands in stark contrast to President
Donald Trump’s new national security strategy, which sharply criticizes European
allies and suggests the continent is in cultural decline.
Lawmakers also endorsed a slight increase in the Pentagon budget with a price
tag that is $8 billion more than Trump requested. And it would repeal
decades-old Middle East war powers, a small win for lawmakers who’ve been
fighting to reclaim a sliver of Congress’ war-declaring prerogatives.
The final bill is the result of weeks of negotiations between House and Senate
leadership in both parties, heads of the Armed Services panels and the White
House. The measure had been slowed in recent days by talks on issues unrelated
to defense, including a major Senate-backed housing package and greater scrutiny
of U.S. investment in China.
The defense bill typically passes with broad bipartisan support. Speaker Mike
Johnson will likely need to win back some Democrats who opposed the House GOP’s
hard-right initial bill in September. And the speaker will have to contend with
fellow Republicans upset that their priorities weren’t included.
But both House and Senate-passed defense bills reflected bipartisan concerns
that the Trump administration would seek to significantly reduce the U.S.
military footprint in Europe. Both measures included language that imposes
requirements the Pentagon must meet before trimming military personnel levels on
the continent below certain thresholds.
Republicans, led by Senate Armed Services Chair Roger Wicker (R-Miss.) and House
Armed Services Chair Mike Rogers (R-Ala.), broke with the Trump administration,
arguing that troop reductions — such as a recent decision to remove a rotational
Army brigade from Romania — would invite aggression from Russia.
The final bill blocks the Pentagon from reducing the number of troops
permanently stationed or deployed to Europe below 76,000 for longer than 45 days
until Defense Secretary Pete Hegseth and the head of U.S. European Command
certify to Congress that doing so is in U.S. national security interests and
that NATO allies were consulted. They would also need to provide assessments of
that decision’s impact.
The legislation applies the same conditions to restrict the U.S. from vacating
the role of NATO’s Supreme Allied Commander in Europe, a role that the U.S.
officer who leads European Command chief has held simultaneously for decades.
Negotiators included similar limitations on reducing the number of troops on the
Korean Peninsula below 28,500, a provision originally approved by the Senate.
Lawmakers agreed to a slight increase to the bill’s budget topline, reflecting
some momentum on Capitol Hill for more military spending. The final agreement
recommends an $8 billion hike to Trump’s $893 billion flat national defense
budget, for a total of roughly $901 billion for the Pentagon, nuclear weapons
development and other national security programs.
The House-passed defense bill matched Trump’s budget request while the Senate
bill proposed a $32 billion boost. Republicans separately approved a $150
billion multi-year boost for the Pentagon through their party-line tax cut and
spending megabill earlier this year.
Regardless of the signal the topline budget agreement sends, the defense policy
bill does not allocate any money to the Pentagon. Lawmakers must still pass
annual defense spending legislation to fund Pentagon programs.
House Armed Services ranking member Adam Smith (D-Wash.) described the agreement
as a “placeholder” that would allow lawmakers to finish the NDAA, while
congressional appropriators continue their talks on a separate full-year
Pentagon funding measure.
A House Republican leadership aide who, like others, was granted anonymity to
discuss details of the bill ahead of its release, said the revised topline is a
“fiscally responsible increase that meets our defense needs.”
The bill also would repeal a pair of old laws that authorize military action in
the Middle East, including 2002 legislation that preceded the invasion of Iraq
and the 1991 Gulf War. Those repeals were included in both the House and Senate
defense bills as bipartisan support for scrubbing the old laws — which critics
contend could be abused by a president — overcame opposition from some top
Republicans.
Repealing those decades-old measures is a win for critics of expansive
presidential war powers, who argued the measures aren’t needed anymore. They
point to the potential for abuses — citing Trump’s use of the 2002 Iraq
authorization to partly justify a strike that killed Iranian military commander
Qasem Soleimani in Iraq in 2020.
A second House GOP leadership aide said the repeal of the two Iraq
authorizations won’t impact Trump’s authority as commander-in-chief.
But the repeal is ultimately a minor win for lawmakers seeking to reclaim
congressional power. The 2001 post-9/11 authorization that undergirds much of
the U.S. counterterrorism operations around the world remains on the books.
And the bill is silent on Trump’s ongoing campaign against alleged drug
smuggling vessels in the Caribbean. Many lawmakers — including some Republicans
— have questioned the administration’s legal justification for the lethal
strikes.
The final bill also doesn’t include an expansion of coverage for in-vitro
fertilization and other fertility services for military families under the
Tricare health system. The provision, backed by Sen. Tammy Duckworth (D-Ill.),
Rep. Sara Jacobs (D-Calif.) and others, was included in both Senate and House
bills before it was dropped.
Johnson reportedly was seeking to remove the provision, which similarly was left
out of last year’s bill.
Soccer may be the world’s most popular pastime, but much about Friday’s lottery
draw setting the match schedule for next summer’s World Cup has been programmed
with just one fan in mind. Never before has the sports governing body given out
a peace prize to a politician eager for one, or booked the Village People and
Andrea Bocelli to play alongside.
President Donald Trump’s appearance on the Kennedy Center stage will be at least
his seventh encounter this year with FIFA President Gianni Infantino, who has
logged more face time with Trump this year than any world leader. Infantino’s
savvy navigation of the American political scene has helped FIFA build
institutional support for a tournament facing unprecedented logistical
complications.
But that success is beginning to weaken Infantino, as the third-term FIFA
president faces newfound internal opposition for his over-the-top courtship of
Trump. Our interviews with six international soccer officials across three
continents reveal widespread frustration with Infantino’s decision to side with
Trump even as White House policies cause chaos for World Cup-bound teams, fans
and local organizers, clashing with Infantino’s promise to have a tournament
that welcomes the world.
“[FIFA] has always promoted a very cozy, close relationship with politicians and
political actors in a variety of ways, including by having them in their bodies
or running the National Football Associations, for example,” said Miguel Maduro,
the chairman of FIFA’s governance and review committee between 2016 and 2017.
“This said, the extent of this cozy relationship that we’ve seen and and the
public character that has been assumed between Mr. Infantino and Mr. Trump is
different even from what we saw in the past,” said Maduro. “It’s not that things
like that didn’t happen in the past, but it didn’t happen so obviously and so
emphatically as they do now.”
Our reporting found that Infantino did not inform his 37-member FIFA Council
before creating the FIFA Peace Prize this year, three people familiar with the
matter told POLITICO. Over the past year, at least three of FIFA’s eight vice
presidents have publicly or privately expressed their concerns about the lengths
Infantino is willing to go to please Trump.
While Infantino has won his last two terms unopposed, when he stands next for
reelection in 2027 he will likely have to answer to FIFA’s 211 member
federations for his willing entanglement in the controversies of American
politics. Infantino’s allies say that those opposed to many of his
soccer-related initiatives — focused on growing the game in emerging markets and
expanding FIFA’s flagship tournaments — are using his Trump ties to exploit
differences on unrelated issues.
“If a challenger to Gianni for the 2027 election emerges, it will be in the next
six to eight months and the World Cup will be a litmus test,” said a person
involved with World Cup planning granted anonymity to characterize private
conversations with top soccer officials. “If something goes off the rails or
somebody decides they want to make a run against him, they’re going to use his
relationship with Trump to exploit the cracks.”
THE MAKING OF THE PRESIDENTS
Infantino launched his first campaign for FIFA’s presidency as an underdog. A
corruption scandal had toppled much of FIFA’s leadership in 2015, forcing a
so-called “extraordinary congress” the next year in which members would vote to
decide who would complete the unfinished term vacated by the newly suspended
president Sepp Blatter.
FIFA, comprised of national soccer federations, picks its president through a
secret ballot of those members — one nation, one vote. To win in a
multi-candidate field, one must capture two-thirds of the total ballots cast,
with rounds of voting until a single candidate locks in a two-way majority.
The favorite to succeed Blatter was Sheik Salman Bin Ebrahim Al Khalifa, a
Bahraini royal who headed the Asian Football Confederation and appeared to have
stitched together a coalition of Asian and African nations. Infantino, a
polyglot Swiss-Italian lawyer who had spent seven years as secretary general of
European confederation UEFA, pitched himself as someone who could disperse the
organization’s wealth back to member countries.
“The money of FIFA is your money,” Infantino said in a speech shortly before the
vote. “It is not the money of the FIFA president. It’s your money.”
Infantino and Al Khalifa ran neck-in-neck in the first round. With a clear
two-person race, the United States — which had been supporting Prince Ali bin
Al-Hussein of Jordan, who finished a distant third — switched its vote to
Infantino in the second round, triggering a rush of support from the Western
Hemisphere that gave Infantino a conclusive 115-vote total. A fourth candidate,
former French diplomat Jérome Champagne, credited Infantino’s victory to “a
strong alliance between Europe and North America and the Anglo-Saxon world.”
“Prepare yourself well but be vigilant,” Blatter warned Infantino upon his
election in a public letter. “While everyone supports you and tells you nice
words, know that once you are the president, friends become rare.”
Once in office, Infantino’s initiatives were focused on expanding FIFA’s most
valuable properties. He converted a ten-day, exhibition-like competition among
seven regional club champions into the month-long FIFA Club World Cup. He also
pushed, with mixed success, to grow the size and scope of the World Cup and
increase its frequency.
In 2017, Infantino announced that the first World Cup under an expanded format —
up from 32 countries participating to 48, adding a week of matches to the
schedule — would take place in the United States, Canada and Mexico. Facing the
first tournament in which hosting responsibilities would be shared by three
countries, Infantino visited Trump to secure assurances of government support.
Infantino went on to win subsequent terms in 2019 and 2023, and when Trump
returned to the White House for his second, in 2025, their political
trajectories became permanently intertwined. Infantino set out to raise his
profile in American life and his relationships with the country’s political
class, including through a campaign-style tour through many of the American
cities hosting matches for the inaugural Club World Cup in 2025 and the World
Cup the following summer.
Infantino sat next to Trump at the tournament’s final, held at New Jersey’s
MetLife Stadium in July, dragging him onto the winners’ platform as Infantino
went to award a trophy and medals to champions Chelsea. Trump lingered awkwardly
on stage to the befuddlement of Chelsea’s players, who had not expected they
would share the moment with an American politician.
Other appearances with Trump placed Infantino squarely between a president
intent on solving overseas conflicts and punishing foes, while closing American
borders to visitors and trade, and FIFA member nations who may hold starkly
different views, or worse.
Infantino stood quietly in the Oval Office as he said he would not rule out
strikes against fellow World Cup co-host Mexico to target drug cartels, and
joined Trump’s entourage on a trip designed to cultivate investment
opportunities in the Persian Gulf.
When FIFA had to delay the opening of its annual congress in Asuncion, Paraguay,
to accommodate Infantino’s travel from a Saudi-U.S. Investment Forum in Riyadh,
two FIFA vice presidents were among those who joined English Football
Association chairwoman Debbie Hewitt and other federation heads exiting in
protest. European confederation UEFA — with 55 member nations, FIFA’s largest —
attacked him with unusually pointed language.
“To have the timetable changed at the last minute for what appears to be simply
to accommodate private political interests,” UEFA wrote in its statement, “does
the game no service and appears to put its interests second.”
GIANNI ON THE SPOT
In September, Trump said he would try to move scheduled World Cup matches out of
Democratic-run jurisdictions that are “even a little bit dangerous.” Infantino,
whose organization had spent years vetting and preparing those cities for the
tournament, said nothing.
But a potential rival to Infantino’s leadership took issue with both the
American president’s threat — since repeated but not acted upon — and the FIFA
president’s silence.
“It’s FIFA’s tournament, FIFA’s jurisdiction, FIFA makes those decisions,” FIFA
vice president Victor Montagliani, the organization’s leading figure from North
America, said at a sports-business conference in London six days later.
While president of the Canadian Soccer Association, Montagliani helped to secure
his country’s participation in the three-way so-called “United Bid” for next
summer’s World Cup. (The Vancouver insurance executive also helped bring the
Women’s World Cup to Canada in 2015.) He now serves as president of CONCACAF,
the 41-member regional federation encompassing the 41 nations of North America,
Central America and the Caribbean.
Close to Prime Minister Mark Carney, Montagliani has come to believe Infantino
has catered too much to Trump for a tournament realized through the cooperation
of three nations, according to three of the people familiar with the dynamics of
FIFA’s leadership. (Montagliani declined an interview request.) The leaders of
the United States, Mexico and Canada will all participate in a ceremonial ball
draw in today’s draw.
“With all due respect to current world leaders, football is bigger than them and
football will survive their regime and their government and their slogans,”
Montagliani told an interviewer at the London conference in late September.
“That’s the beauty of our game, is that it is bigger than any individual and
bigger than any country.” Montagliani’s “FIFA’s jurisdiction” remarks did not
land well with Infantino’s inner sanctum. “It is ultimately the government’s
responsibility to decide what’s in the best interest of public safety,” FIFA
said in a statement to POLITICO in October after Trump’s next round of threats
to relocate matches.
The relationship between Infantino and Montagliani has further soured in recent
months as Trump reignited tensions between Washington and Ottawa over an
anti-tariff ad taking aim at U.S. trade policy, according to a person close to
Montagliani granted anonymity to candidly characterize his thinking. Montagliani
has his own thoughts on how far relationships with government figures should go
but respects Infantino’s perspective, that person said, maintaining the two men
had a good relationship despite occasional differences.
Others around FIFA have their own parochial concerns with Trump.
Despite being among the first teams to qualify for the tournament, Iran
threatened to boycott Friday’s draw because some members of its delegation were
denied visas for travel to Washington. According to a FIFA official, Iran
ultimately reversed course and sent Iranian head coach Ardeshir Ghalenoy after
FIFA worked closely with the U.S. government and Iran’s soccer federation.
Another qualifying team, Haiti, is also covered by the 19-country travel ban
that Trump signed in June. The State Department said that while the policy has a
specific carveout for World Cup competitors and their families, the exception
will not be applied to fans or spectators.
The president of the Japanese Football Association, Tsuneyasu Miyamoto, told
POLITICO in an interview last month that he was worried that Trump’s immigration
policies could subject Japanese travelers to “deportations happening
unnecessarily.”
Infantino has stopped short of pressuring Trump to make exceptions to
immigration policy for the sake of soccer. FIFA officials have said that when it
chooses a tournament location it does not expect that country to significantly
alter its immigration laws or vetting standards for the tournament, although
many past hosts have chosen to relax visa requirements for World Cup
ticketholders.
Many European countries’ soccer federations, led by Ireland and Norway, have
pushed to ban Israel from international soccer due to its military invasion of
Gaza. The movement received an apparent boost from UEFA President Aleksander
Čeferin, who supported unfurling a banner that read “Stop Killing Children; Stop
Killing Civilians” on the field before a UEFA Super Cup match in August.
“If such a big thing is going on, such a terrible thing that doesn’t allow me to
sleep — not me, all my colleagues,” — nobody in this organization said we
shouldn’t do it. No one,” Čeferin told POLITICO in August. “Then you have to do
what is the right thing to do.”
European countries were set on a collision with Trump, whose State Department
indicated it would work to “fully stop any effort to attempt to ban Israel’s
national soccer team from the World Cup.” UEFA pulled back on a planned vote
over Israel’s place as a Trump-negotiated peace agreement took hold. Infantino
joined Trump and other heads of state in Sharm El-Sheikh, Egypt, for a summit to
implement the agreement’s first phase.
Nothing threatens to awaken opposition to Infantino as much as his decision to
invent a FIFA Peace Prize just as Trump began to complain in October about being
passed over for one from the Norwegian Nobel Committee. According to a draft
run-of-show for Friday’s draw, Trump is scheduled to speak for two minutes today
after receiving the Peace Prize.
“He is just implementing what he said he would do,” Infantino said at an
American Business Forum in Miami, also attended by Trump, on the day news of the
prize was made public. “So I think we should all support what he’s doing because
I think it’s looking pretty good.”
According to FIFA rules, the organization’s president needs sign-off from the
37-member FIFA council on certain items like the international match calendar,
host designations for upcoming FIFA tournaments, and financial matters. FIFA’s
charter does not contemplate the creation of a new prize specifically to award a
world leader, but those familiar with the organization’s governance say it may
violate an ethics policy that requires officers “remain politically neutral.”
(In 2019, FIFA honored Argentina’s President Mauricio Macri, who previously led
venerable club Boca Juniors, with its first-ever Living Football Award.)
“Giving this award to someone that is an active political actor, by itself, is,
at least in my opinion, likely a violation of the principle of political
neutrality,” said Maduro, a Portuguese legal scholar appointed to oversee FIFA’s
governance in the wake of the corruption scandal that helped bring Infantino to
office. “We need to know two things: how the award was created and who then took
the decision to whom the award was to be given. Both of these decisions should
not be taken by the president himself.”
Infantino fully bypassed the FIFA Council in deciding to create and award the
prize to Trump, according to three people familiar with conversations between
Infantino and the council’s members. Even the vice presidents who were given a
heads-up ahead of time say they were simply being told after the decision was
made.
FOUR MORE YEARS?
Infantino, a quintessential European first elected with support from his home
continent, now sees his strongest base of support in Asia, Africa, and the Gulf
countries.
He won his last two terms by acclamation, after delivering on his promises to
disperse the $11 billion FIFA takes in each World Cup cycle. The FIFA Forward
program, launched in 2016, sent $2.8 billion back to member federations and
regional confederations in its first six years, funding everything from the
development of Papua New Guinea’s women’s squad to an air dome for winter
training in Mongolia.
But Infantino’s political choices may be costing him in Europe, where the sport
is more established and national federations are less dependent on FIFA’s
largesse. Infantino’s defenders say that European soccer officials, including
Čeferin, have turned against him because they see his attempts to expand the
World Cup and institute the Club World Cup as a threat to the primacy of their
regional competitions.
Many in international soccer see Montagliani as the most viable potential
challenger, although a person close to him says he has no intention of seeking
FIFA’s presidency in 2027 and instead plans to seek reelection that year to what
would have to be his final term as CONCACAF’s president. But he fits the profile
of someone best positioned to dethrone the incumbent, ironically by stitching
together the type of trans-Atlantic alliance that lifted Infantino to his first
victory.
“Mexico is not happy. Canada is not happy, and that’s because they’re
politically not happy with Trump,” said a senior national-federation official,
granted anonymity to candidly discuss dynamics within CONCACAF. “There’s that
direct tension.”
LONDON — In February Britain’s cash-strapped Labour government cut international
development spending — and barely anyone made a noise.
The center-left party announced it would slice the country’s spending on aid
down to only 0.3 percent of gross domestic income — from 0.5 percent — in order
to fund a hike in defense spending.
MPs, aid experts and officials have told POLITICO that the scale of the cuts is
on a par with — or even exceeding — those of both the previous center-right
Conservative government or the United States under Donald Trump. This leaves
Britain’s development arm, once globally envied as a vehicle for poverty
alleviation, a shadow of its former self.
The move — prompted by U.S. demands to up its NATO spending, and mirroring the
Trump administration’s move to gut its own USAID development budget — shocked
Labour’s progressive MPs, supporters and backers in the aid sector.
But unlike attempted cuts to British welfare spending, the real-world backlash
was muted, with the resignation of Britain’s development minister prompting
little further dissent or change in policy. There was no mutiny in parliament,
and only limited domestic and international condemnation outside of an aid
sector torn between making their voices heard — and keeping in Whitehall’s good
books over slices of the shrinking pie.
Some fear a return grab over the aid budget could still be on the cards — but
that the government will find that there is little left to cut.
Gideon Rabinowitz, director of policy and advocacy at Bond, the U.K. network for
NGOs, warned that, instead of “reversing the cuts by the previous Conservative
government, Labour has compounded them, and lives will be lost as a result.”
“These cuts will further tarnish the U.K.’s reputation as it continues to be
known as an unreliable global partner, breaking Labour’s manifesto commitment,”
he warned. “The Conservatives started the fire, but instead of putting it out,
this Labour government threw petrol on it.”
‘IT WAS THE PERFECT TIME TO DO IT’
When Prime Minister Keir Starmer announced the cut to international aid — a bid
to save over £6 billion by 2027 — Labour MPs, including those who worked in the
sector before being elected, were notably silent.
The move followed a 2021 Conservative cut to aid spending — from 0.7 percent in
the Tory brand-rebuilding David Cameron years down to 0.5 percent. At the time,
Labour MPs had met that Tory cut with howls of outrage. This time it was
different.
Some were genuinely shocked, while others feared retribution from a Downing
Street that had flexed its muscles at MPs who rebelled on what they saw as
points of conscience.
“No one was expecting it, so there was no opportunity to campaign around it,”
said one Labour MP. “Literally none of us had any idea it was coming.”
Remaining spending is largely mandatory contributions to organizations such as
the World Bank. | Daniel Slim/AFP via Getty Images
The same MP noted that there are around 50 Labour MPs from the new 2024 intake
who had some form of development background before coming into parliament. Yet
they were put “completely under the cosh” by Downing Street and government
whips. “It was the perfect time to do it,” the MP said.
A number of MPs who might have been vocal have since been made parliamentary
private secretaries — the most junior government role. “They have basically
gagged the people who would be most likely to be outspoken on it,” the MP above
said. The department’s ministerial team is now more likely to be loyal to the
Starmer project.
“I just felt hurt, and wounded. We were stunned. None of us saw it coming,” said
one MP from the 2024 cohort, adding: “They priced in that backlash wouldn’t
come.” But they added: “If we were culpable so were NGOs, too inward-looking and
focused on peripheral issues.”
The lack of outcry from MPs would, however, seem to put them largely in step
with the wider British public. Polling and focus groups from think tank More in
Common suggest that despite the majority of voters thinking spending on
international aid is the right thing to do in a variety of circumstances, only
around 20 percent of the public think the budget was cut too much.
The second new-intake Labour MP quoted above said the policy was therefore an
“easy thing to sell on the doorstep,” and “in my area, there’s not going to be
shouting from the rooftops to spend more money on aid.”
DIMINISHED AND DEMORALIZED
The cuts to aid come at a time when Britain’s Foreign Office is undergoing a
radical overhaul.
While the department describes its plans as “more agile,” staff, programs and
entire areas of focus are all ripe for cuts to save money. The department is
looking to make redundancies for around 25 percent of staff based in the U.K.
MPs have voiced concern that development staff will be among the first to make
the jump due to the government’s shift away from aid.
The department insists that no final decisions have been taken over the size and
shape of the organization.
Major cuts are expected across work on education, conflict, and WASH (Water,
Sanitation, and Hygiene.) The government’s Integrated Security Fund — which
funds key counter-terror programs abroad — is also looking to scale back work
abroad which does not have a clear link to Britain’s national security.
The British Council — a key soft-power organization viewed as helping combat
Chinese and Russian reach across the world — told MPs it is in “real financial
peril” and would be cutting its presence in 35 of the 97 countries it operates.
The BBC’s World Service is seeing similar cuts to its global reach. The
Independent Commission for Aid Impact (ICAI), the watchdog for aid spending, is
also not safe from the ax as the government continues its bonfire of regulators.
The FCDO did not refute the expected pathway of cuts. Published breakdowns of
spending allocations for the next three years are due to be published in the
coming months, an official said.
A review of Britain’s development and diplomacy policies conducted by economist
Minouche Shafik — who has since been moved into Downing Street — sits discarded
in the department. The government refuses to publish its findings.
Aid spending was spared a repeat visit by Chancellor Rachel Reeves in her
government-wide budget last month — but that hasn’t stopped MPs worrying about a
second bite. | Pool Photo by Adrian Dennis via Getty Images
The second 2024 intake MP quoted earlier in the piece said that following the
U.S. decisions on aid and foreign policy “there was an expectation that the
U.K., as a responsible international partner, as a leader on a lot of this
stuff, would fill the gap to some extent, and then take more of a leadership
role on it, and we’ve done the opposite.”
NOTHING LEFT TO CUT
Aid spending was spared a repeat visit by Chancellor Rachel Reeves in her
government-wide budget last month — but that hasn’t stopped MPs worrying about a
second bite. While few MPs or those in the aid sector feel Britain will ever
return to the lofty heights of its 0.7 percent commitment, they predict there
will be harder resistance if the government comes back for more.
“I don’t think they’re going to try and do it again, as there’s no money left,”
the second 2024 intake MP said. But they pointed out that a large portion of the
remaining aid budget is spent on in-country costs such as accommodation for
asylum seekers. Savings identified from the asylum budget would be sent back to
the Treasury, rather than put back into the aid budget, they noted.
Remaining spending is largely mandatory contributions to organizations such as
the World Bank or the United Nations and would, they warned, involve “getting
rid of international agreements and chopping up longstanding influence at big
international institutions that we are one of the leading people in.”
The United Nations is already facing its own funding crisis as it struggles to
adjust to the global downturn in aid spending. British diplomat Tom Fletcher —
who leads the UN’s humanitarian response — said earlier this year that the
organization has been “forced into a triage of human survival,” adding: “The
math is cruel, and the consequences are heartbreaking.”
The government still has a commitment to returning to 0.7 percent of GNI “as
soon as the fiscal circumstances allow.” The tests for this ramp back up were
set out four years ago. Britain must not be borrowing for day-to-day spending
and underlying debt must be falling. The last two budgets have forecast that the
government will not meet these tests in this parliament.
FARAGE CIRCLES
In the meantime, Labour’s opponents feel emboldened to go further.
Both the Conservatives and Reform UK have said that they would further cut the
aid budget. The Tories have vowed to slice it down to 0.1 percent of GNI, while
Nigel Farage’s Reform UK is eyeing fresh cuts of at least by £7-8 billion a
year. A third 2024 Labour MP said that there was a degree of pressure among some
colleagues to match the Conservatives’ 0.1 percent pledge.
Though no country has gone as far as Uganda’s Idi Amin in setting up a “save
Britain fund” for its “former colonial masters,” Britain’s departure on
international aid gives space for other countries wanting to step up to further
their own foreign policy aims.
The space vacated by Britain and America has prompted warnings that China will
step in, while countries newer to international development such as Gulf states
could try and fill the void. Many of these nations are unlikely to ever fund the
same projects as the U.K. and the U.S., forcing NGOs to look to alternate donors
such as philanthropists to fund their work.
“There’ll be a big, big gap, and it won’t be completely filled,” the second new
intake MP said.
An FCDO spokesperson said the department was undergoing “an unprecedented
transformation,” and added: “We remain resolutely committed to international
development and have been clear we must modernize our approach to development to
reflect the changing global context. We will bring U.K. expertise and investment
to where it is needed most, including global health solutions and humanitarian
support.”
BRUSSELS — The European Union has approved a proposal to curb trade benefits for
developing countries that refuse to take back migrants whose stay in the bloc
has been denied.
Low-tariff access to the EU’s market will be reviewed in the context of “the
readmission of that country’s own nationals” who have been identified as
“irregular migrants to the Union,” a document seen by POLITICO confirms.
Negotiators from the Council of the EU, the European Parliament and the European
Commission agreed to the draft text late Monday night.
The push to link trade measures to migration policy comes amid major advances by
far-right parties across Europe and calls for governments to get tougher on
enforcing returns. Currently, only a small share of those eligible for removal
from the EU are actually deported — many because their home countries refuse to
cooperate.
“In case of serious and systematic shortcomings related to the international
obligation to readmit a beneficiary country’s own nationals, the preferential
arrangements … may be withdrawn temporarily, in respect of all or of certain
products originating in that beneficiary country, where the Commission considers
that an insufficient level of cooperation on readmission persists,” it reads.
The readmission clause will be applied with more or less stringent conditions
depending on a country’s development level, the document also says.
The measures, which would only be invoked after dialog with countries, are being
included in an overhaul of the so-called Generalized Scheme of Preferences, a
50-year old program that enables poorer countries to export goods to EU
countries at lower tariff rates.
The review of the program, which has been under negotiation for over three
years, is designed to help these nations build their economies and is tied to
the implementation of human rights, labor and environmental reforms.
However, the issue of cheap rice imports from Pakistan or Bangladesh threatened
to collapse the talks before the eventual agreement on Monday, amid concerns
from EU producers like Spain and Italy that want to ensure their own farmers are
not outcompeted.
EU countries have long been considering the idea of using trade, development and
visa policies to ensure third countries agree to take back failed migrants, amid
growing public discontent that has driven victories for far-right parties at the
ballot box.
However, the proposals had faced opposition from the Parliament, as well as the
Commission and a handful of capitals that feared this would upend relations with
key partner countries.
Denmark’s center-left government set its sights on migration as a key issue for
its presidency, which ends on Dec. 31. Justice and home affairs ministers will
meet next Monday to discuss ways to ensure more people leave the EU after their
applications to stay are rejected, including through so-called return hubs in
third countries.
Donald Trump’s drive to secure peace in Ukraine must not let Vladimir Putin off
the hook for war crimes committed by Russian forces, a top EU official has
warned, effectively setting a new red line for a deal.
In an interview with POLITICO, Michael McGrath, the European commissioner for
justice and democracy, said negotiators must ensure the push for a ceasefire
does not result in Russia escaping prosecution.
His comments reflect concerns widely held in European capitals that the original
American blueprint for a deal included the promise of a “full amnesty for
actions committed during the war,” alongside plans to reintegrate Russia into
the world economy.
The Trump team’s push to rehabilitate the Kremlin chief comes despite
international condemnation of Russia for alleged crimes including the abduction
of 20,000 Ukrainian children and attacks targeting civilians in Bucha, Mariupol
and elsewhere.
“I don’t think history will judge kindly any effort to wipe the slate clean for
Russian crimes in Ukraine,” McGrath said. “They must be held accountable for
those crimes and that will be the approach of the European Union in all of these
discussions.
“Were we to do so, to allow for impunity for those crimes, we would be sowing
the seeds of the next round of aggression and the next invasion,” he added. “And
I believe that that would be a historic mistake of huge proportions.”
Protesters in London, June 2025. There has been international condemnation of
Russia for alleged crimes including the abduction of 20,000 Ukrainian children
and attacks targeting civilians. | Vuk Valcic/SOPA Images/LightRocket via Getty
Images
Ukrainian authorities say they have opened investigations into more than 178,000
alleged Russian crimes since the start of the war. Last month, a United Nations
commission found Russian authorities had committed crimes against humanity in
targeting Ukrainian residents through drone attacks, and the war crimes of
forcible transfer and deportation of civilians.
“We cannot give up on the rights of the victims of Russian aggression and
Russian crimes,” McGrath said. “Millions of lives have been taken or destroyed,
and people forcibly removed, and we have ample evidence.”
The EU and others have worked to set up a new special tribunal for the crime of
aggression with the aim of bringing Russian leaders to justice for the
full-scale invasion of Ukraine, which began in February 2022.
In March 2023, judges at the International Criminal Court issued an arrest
warrant for Putin, naming him “allegedly responsible for the war crime of
unlawful deportation of population [children]” from Ukraine.
But Trump and his team have so far shown little interest in prosecuting Putin.
In fact, the U.S. president has consistently described his Russian counterpart
in positive terms, often talking about how he is able to have a “good
conversation” with Putin. Trump has expressed the hope of building new economic
and energy partnerships with Russia, and the pair have even discussed organizing
ice hockey matches in Russia and the U.S. once the war is over.
The draft 28-point peace plan that Trump’s team circulated last week continues
in a similar vein.
It states that “Russia will be reintegrated into the global economy” and invited
to rejoin the G8 after being expelled in 2014 following Moscow’s annexation of
Crimea.
“The United States will enter into a long-term economic cooperation agreement
for mutual development in the areas of energy, natural resources,
infrastructure, artificial intelligence, data centers, rare earth metal
extraction projects in the Arctic, and other mutually beneficial corporate
opportunities,” the document said.
The U.S. peace plan proposes to lift sanctions against Russia in stages, though
European leaders have pushed back to emphasize that the removal of EU sanctions
will be for them to decide.
Not everyone in Europe wants to maintain the squeeze on Moscow, however. Hungary
has repeatedly stalled new sanctions, especially on oil and gas, for which it
relies on Russia. Senior politicians in Germany, too, have floated the idea of
lifting sanctions on the Nord Stream gas pipeline from Russia.