Canadian Prime Minister Mark Carney publicly backed Kevin Warsh as the next
chair of the Federal Reserve on Friday, calling him a “fantastic choice,” in a
rare point of alignment amid an escalating U.S.-Canada trade war.
“Kevin Warsh is a fantastic choice to lead the world’s most important central
bank at this crucial time,” Carney wrote on X shortly after President Donald
Trump announced he will nominate the former Fed board member to replace current
chair, Jerome Powell.
Carney is an experienced central banker himself. He oversaw the Bank of Canada
from 2008-2013, briefly overlapping with Warsh’s first tenure as a Fed governor,
before leading the Bank of England from 2013-2020.
The endorsement stood out as relations between the Trump administration and
Canada continue to strain, with Canadian officials warning that Trump’s trade
agenda and broader foreign policy are destabilizing both the U.S. and Canadian
economies.
On Saturday, Trump threatened to impose a 100 percent tariff on Canada if it
follows through on a planned trade deal with China. In his latest threat
Thursday, he said he would impose a 50 percent tariff on Canadian-made aircrafts
after a dispute over aviation certification.
“Canada is effectively prohibiting the sale of Gulfstream products in Canada
through this very same certification process,” the president wrote on Truth
Social. “If, for any reason, this situation is not immediately corrected, I am
going to charge Canada a 50% Tariff on any and all Aircraft sold into the United
States of America.”
Earlier this week, the Bank of Canada said U.S. tariffs are expected to have a
“lasting negative impact” on Canada’s economy, citing prolonged uncertainty tied
to Trump’s trade policies.
“It’s pretty clear that the days of open rules-based trade with the United
States are over,” Bank of Canada Gov. Tiff Macklem said. “It’s not a good thing
for Americans. It’s not a good thing for Canadians.”
In an interview with Reuters on Wednesday, Macklem said Trump’s actions
could derail the central bank’s economic forecasts, pointing to Trump’s repeated
tariff threats against Canada and other actions abroad, including repeat
pressure on Greenland and the capture of Venezuelan President Nicolás Maduro.
“There is unusual potential for a new shock, a new disruption,” he said.
“Geopolitical risks are elevated.”
Macklem also voiced his support for Powell, telling Reuters that he told Powell
in a private conversation that he was “doing a good job under difficult
circumstances.”
Several global central bank leaders, including Macklem, issued a joint
statement earlier this month in support of Powell and the Federal Reserve after
the Department of Justice launched a criminal investigation into the Fed chair.
They warned that political pressure on central banks could undermine global
financial stability.
“We stand in full solidarity with the Federal Reserve System and its Chair
Jerome H. Powell,” the statement said. “Chair Powell has served with integrity,
focused on his mandate and an unwavering commitment to the public interest. To
us, he is a respected colleague who is held in the highest regard by all who
have worked with him.”
Tag - Aviation
BRUSSELS — Senior European Commission officials hardly ever get the sack. On
Thursday, one did.
That was the twist in a tale that up until that moment had been classically
Brussels. The protagonist: A little-known bureaucrat who had spent two decades
working in the EU civil service. The allegations: Taking expensive gifts that
aroused suspicions over conflicts of interest.
“After nearly 22 years at the Commission, I am obviously disappointed,” Henrik
Hololei told POLITICO only hours after he was informed of the decision. “But I’m
happy that this long process has finally come to a conclusion.”
While commissioners, the EU’s 27 political appointees, have been known to fall
on their swords, there are few precedents for the dismissal of such a
high-ranking civil servant, two senior officials familiar with the inner
workings of the Commission said. Neither of the officials, who have several
decades of EU experience between them, could remember any previous examples.
Like other people interviewed for this article, they were granted anonymity so
they could speak freely about Hololei and his downfall.
The “long process” Hololei described totaled three years. It was in 2023 that
POLITICO first revealed that the Estonian, who was then the EU’s top transport
official, had accepted free flights from Qatar at the same time as negotiating a
transport deal with the Gulf state that was beneficial to the country’s
airline.
It couldn’t have come at a more inauspicious time. The initial reports emerged
just a few months after the so-called Qatargate corruption scandal in the
European Parliament, named after one of the countries linked to allegedly
offering cash and gifts in return for favors. Hololei was not involved in that
affair, but it added fuel to the argument from politicians and transparency
campaigners that the EU needed to clean up its act.
He resigned from his job within a month but didn’t leave the Commission. Soon
after, he became special adviser in its international partnership division.
The following year, French newspaper Libération reported additional allegations,
including that he exchanged confidential details of the Qatar aviation deal in
return for gifts for himself and others, including stays in a five-star hotel in
Doha. This led to a probe by the EU’s Anti-Fraud Office (OLAF), which in turn
led to the Commission’s investigation.
On Thursday, the Commission announced that a senior official had breached the EU
institution’s rules. These concerned conflicts of interest, gift acceptance and
disclosures, according to three officials with knowledge of the investigation.
They later confirmed the person in question was Hololei.
‘A LEGEND’
By his own admission, Hololei is a colorful character. Belying the clichéd image
of a faceless bureaucrat, he’s known to do business over a drink or two. Michael
O’Leary, the outspoken CEO of Irish airline Ryanair, who shared the occasional
tipple with him, told POLITICO in 2023 that Hololei was “terrific.”
His colleagues are just as glowing. On Thursday, a lower-ranking official who
worked with him at the Commission described him as a “legend,” while a former
transport lobbyist recalled seeing selfies of him holding up beers with industry
representatives.
“The feeling is they’re making an example of him,” said a person who works in
the aviation field and met him during the course of his work. “He was
undoubtedly passionate and determined to make EU transport better. He was a guy
who just enjoyed the position he had. He was a people person.”
Hololei talks to Czech Transport Minister Martin Kupka at the European Transport
Ministerial Meeting in Prague in 2022. Colleagues and industry figures might
mourn the departure of a gregarious, engaging figure, | Martin Divisek/EPA
What ultimately led to his dismissal was an investigation by IDOC, the
Commission’s internal disciplinary body, the result of which is not public.
IDOC’s conclusions were shared with a disciplinary committee made up of staffers
who have equal or superior rank to Hololei — a relatively small pool given his
seniority. Following a series of interviews with Hololei, the committee sent its
recommendation to the College of Commissioners for a final vote. That decision
was taken in the past few days.
‘LONG OVERDUE’
While colleagues and those in the industry might mourn the departure of a
gregarious, engaging figure, European propriety campaigners are less
sympathetic.
“It’s almost three years to the day since revelations of Mr. Hololei’s
impropriety broke,” said Shari Hinds, senior policy officer at Transparency
International, an accountability-focused NGO. “Though long overdue, it is
encouraging that the European Commission finally appears to be dealing out
consequences proportionate to the gravity of these ethics violations.”
Hololei, 55, who had taken a pay cut when he moved to the role of hors classe
adviser from DG MOVE, as the transport department is known, will receive his
pension from the Commission when he reaches retirement age.
He has three months to lodge a complaint against the decision with the
Commission.
“Good to see there is an actual reaction,” said Daniel Freund, a Green member of
the European Parliament, who campaigns on issues of accountability in the EU
institutions. “So far, so good.”
‘MUCH MISSED’
A decade in Estonian politics — where he largely focused on European affairs —
preceded his time at the Commission, starting in the cabinet of then-Estonian
Commissioner Siim Kallas, the father of current EU foreign policy chief, Kaja
Kallas, before moving into transport.
It was in that role he became a “very much-loved boss,” according to the person
who worked with him. “Even now he is still very much missed in DG MOVE. He was a
good person to be around.”
In the comments Hololei gave to POLITICO on Thursday afternoon, he was as
gracious as so often described by those who know him. But in the end, the
personality traits that endeared him to so many he worked with, in the
Commission and in industry, weren’t enough to save his job.
BRUSSELS — Powerful political allies helped automakers force the EU to water
down climate laws for cars — and now the aviation sector is borrowing those
tactics.
Their big target is getting the EU to dilute its mandate forcing airlines to use
increasing amounts of cleaner jet fuels, alternatives to kerosene that are also
much more expensive and harder to source.
Aviation is emerging as the next crucial stress test for the EU’s climate
agenda, as key leaders push to do whatever it takes to help struggling European
businesses. With industry and allied governments pressing for relief from costly
green rules, the fight will show how far Brussels is willing to go — and what it
is willing to give up — in pursuit of its climate goals.
“I will make a bet today that what happened to the car regulation will happen to
the SAF [Sustainable Aviation Fuels] regulation in Europe,” French energy giant
TotalEnergies CEO Patrick Pouyanné predicted at the World Economic Forum in
Davos earlier this month.
Carmakers provide a model on how to get the EU to backtrack. The bloc mandated
that no CO2-emitting cars could be sold from 2035, essentially killing the
combustion engine and replacing it with batteries (possibly with a minor role
for hydrogen).
But many carmakers — allied with countries like Germany, Italy and automaking
nations in Central Europe — pushed back, arguing that the 2035 mandate would
destroy the car sector just as it is battling U.S. President Donald Trump’s
tariffs, sluggish demand and a rising threat from Chinese competitors.
“I will make a bet today that what happened to the car regulation will happen to
the SAF [Sustainable Aviation Fuels] regulation in Europe,” Patrick Pouyanné
said. | Ludovic Marin/ AFP via Getty Images
In the end, the European Commission gave way and watered down the 2035 mandate,
which will now only aim to cut CO2 emissions by 90 percent.
AVIATION DEMANDS
The aviation sector has a similar list of issues with the EU. It is taking aim
at a host of other climate policies, such as including aviation in the bloc’s
cap-and-trade Emissions Trading System and intervening on non-CO2 impacts of
airplanes like contrails — the ice clouds produced by airplanes that have an
effect on global warming.
Brussels introduced several regulations over the last 15 years to address the
growing climate impact of air transport, which accounts for about 3 percent of
global CO2 emissions. Those policies include the obligation to use sustainable
aviation fuels, to put a price on carbon emissions and to take action on non-CO2
emissions.
Each of these green initiatives is now under attack.
The ReFuelEU regulation requires all airlines to use SAF for at least 2 percent
of their fuel mix starting this year. That mandate rises to 6 percent from 2030,
20 percent from 2035 and 70 percent by 2050.
“Today, all airline companies are fighting even the 6 percent … which is easy to
reach to be honest,” Pouyanné said, but then warned, “20 percent five years
after makes zero sense.”
He is echoed by CEOs like Ryanair’s combative Michael O’Leary, who called the
SAF mandate “nonsense.”
“It is all gradually dying a death, which is what it deserves to do,” O’Leary
said last year. “We have just about met our 2 percent mandate. There is no
possibility of meeting 6 percent by 2030; 10 percent, not a hope in hell. We’re
not going to get to net zero by 2050.”
Brussels-based airline lobbies are not calling for the SAF mandate to be killed,
rather they are demanding a book-and-claim system. Under such a scheme, airlines
could claim carbon credits for a certain amount of SAF, even if they don’t use
it in their own aircraft. They would buy it at an airport where it’s available
and then let other airlines use it.
That would make it easier for airlines to meet the SAF mandate even if the fuel
is not easily available. However, so far the Commission is opposed.
LOBBYING BATTLE
The car coalition only worked because industry allied with countries, and there
are signs of that happening with aviation.
The sector’s lobbying effort to slash the EU carbon pricing could find an ally
in the new Italo-German team-up to promote competitiveness.
The German government last year announced a plan to cut national aviation taxes
— with the call made during the COP30 global climate conference, something
that angered the German Greens.
Italian Prime Minister Giorgia Meloni and German Federal Chancellor Friedrich
Merz attend the Italy-Germany Intergovernmental Summit at Villa Doria Pamphilj.
| Vincenzo Nuzzolese/LightRocket via Getty Images
Italian Prime Minister Giorgia Meloni said Friday that she and German Chancellor
Friedrich Merz wanted to start “a decisive change of pace … in terms of the
competitiveness of our businesses.”
“A certain ideological vision of the green transition has ended up bringing our
industries to their knees, creating new dangerous strategic dependencies for
Europe without, however, having any real impact on the global protection of the
environment and nature,” she added.
Her far-right coalition ally, Italian Transport Minister Matteo Salvini, has
called the ETS and taxes on maritime transport and air transport “economic
suicide” that “must be dismantled piece by piece.”
COMMISSION SAYS NO
As with the 2035 policy for cars, the European Commission is strongly defending
its policy against those attacks.
Apostolos Tzitzikostas, the transport commissioner, stressed the EU’s “firm
commitment” to stick with aviation decarbonization policies.
“Investment decisions and construction must start by 2027, or we will miss the
2030 targets. It is as simple as that,” the commissioner said in November when
announcing the bloc’s new plans to boost investment into sustainable aviation
and maritime fuels.
Climate campaigners fought hard against the car sector’s efforts to gut 2035,
and now they’re gearing up for another battle over aviation targets.
“The airlines’ whining comes as no surprise — yet it is disappointing to see
airlines come after such a fundamental piece of EU legislation,” said Marte van
der Graaf, aviation policy officer at green NGO Transport & Environment.
She was incensed about efforts to dodge the high prices set by the EU’s ETS in
favor of the U.N.’s cheaper CORSIA emissions reduction scheme.
Airline lobbyA4E said its members paid €2.3 billion for ETS permits last
year. “By 2030, [the ETS cost] should rise up to €5 billion because the free
allowances are phased out,” said Monika Rybakowska, the lobby’s policy
director.
A recent study by the think tank InfluenceMap found that airlines are working to
increase their impact on policymakers by aligning their positions on ETS.
T&E also took aim at a recent position paper by A4E that asked the EU to
postpone measures to curb non-CO2 pollution — such as nitrogen oxides and soot
particles that, along with water vapor, contribute to contrails.
The A4E paper said that “the scientific foundation for regulating non-CO2
effects remains insufficient” and “introducing financial liability risks
misdirecting resources.”
This is “an outdated excuse,” responded T&E, noting that the climate impact of
contrails has been known for over 20 years.
BRUSSELS — After decades spent lambasting European politicians, Michael O’Leary
is now targeting Donald Trump and Elon Musk.
In less than a week, the outspoken Ryanair boss slammed both the U.S. president
and his on-again, off-again supporter Musk. The latter hit back on social media,
launching a feud and threatening to buy the Irish airline just to fire O’Leary,
a proposal the airline CEO called “Twitshit.”
Everyone involved is a seasoned infotainment warrior — they’ve all used
outrageous attacks and language to further their financial and political goals.
But this fight is putting O’Leary into a different league; his targets are a lot
richer and more powerful than his normal punching bags of European Commission
President Ursula von der Leyen, officials from Spain, the Netherlands and
Belgium or UK Reform leader Nigel Farage.
After telling POLITICO that Trump was “a liar” and taking aim at the U.S.
president’s foreign policy and tariffs he said were harming business, O’Leary
told Irish radio that Musk was “an idiot” in response to the world’s richest man
calling him “misinformed” about the cost of installing Starlink systems on its
fleet.
Ryanair has publicly ruled out installing Starlink across its more than 600
Boeing 737s, arguing the external antennas would increase drag and fuel
consumption.
O’Leary’s keenness to scrap with Trump and Musk contrasts sharply with the
approach taken by most of his fellow CEOs, who often balk at crossing the
powerful. But insulting politicians and rivals is part of O’Leary’s DNA. He’s
also insulated from blowback because his airline doesn’t fly to the U.S.;
because it’s one of Boeing’s largest customers; and because Ryanair is protected
against a hostile Musk acquisition by EU rules mandating that airlines have to
be majority-owned by EU shareholders.
The online scuffle escalated quickly, with Musk calling O’Leary “a retarded
twat” and O’Leary telling Musk on Wednesday “to join the back of a very, very,
very, very long queue of people who already think I’m a ‘retarded twat,’
including my four teenage children.”
The airline said it was “launching a Great Idiots seat sale especially for Elon
and any other idiots.”
So far, Trump hasn’t responded to needling from O’Leary.
But the dissing contest is more than a casual brawl among tycoons. It reflects
what O’Leary has been doing for a long time in Europe: offending anyone who
crosses his path, getting public attention and selling more tickets.
After days of mutual insults between the flamboyant airline chief and his
quasi-equivalent in the space industry with come-and-go ties to the White House,
O’Leary offered Musk “a free ride air ticket, to thank him for the wonderful
boost in publicity which has seen our bookings rise significantly.”
“They’re up about 2 or 3 percent in the last five days,” he added at a press
conference in Dublin. The company’s shares were also up over 2 percent on
Wednesday.
“O’Leary’s complaint about Starlink was an absolutely classic Michael O’Leary
complaint: operationally driven, cost-based, almost certainly technically
correct, quite probably an attempt to negotiate the price down by Musk,” said
Andrew Charlton, managing director of the Aviation Advocacy consultancy.
O’Leary confirmed on Wednesday that he had been in talks for over a year with
Starlink and its rivals Amazon and Vodafone to provide Wi-Fi on Ryanair planes
at no extra cost to passengers.
This is just the latest cost-cutting crusade taken by the Irish businessman, who
spent the first weeks of the new year threatening to slash flights to and from
Belgium over a ticket tax increase of less than €10.
“He’s the Trump of aviation, the same kind of idiot,” said Toto Bongiorno, a
former union leader from Belgium’s now-defunct flag carrier, Sabena.
“He’s the guy who once said he was going to allow standing seats on planes. He’s
the one who said people would have to pay to use the [onboard] toilets at some
point,” Bongiorno told the Belgian TV channel LN24. “He invented a different way
of doing aviation.”
CURSING DOESN’T COST
In a market previously dominated by flag carriers that offered larger seats and
free luggage, drinks and snacks — but also charged higher prices and
occasionally received state aid from governments — Ryanair and other low-cost
European airlines, such as easyJet and Wizz Air, have gained market share thanks
to cheaper airfares and minimal extras.
However, O’Leary built Ryanair not only by slashing costs at the expense of the
passenger experience; he also harangued European leaders, demanding fewer rules
and lower taxes.
Von der Leyen is often referred to as “Derlayed-Again” by Ryanair due to her
alleged failure to guarantee the right of airlines to overfly countries affected
by air traffic controller strikes.
After Ryanair was fined by Spain’s Minister for Consumer Affairs Pablo Bustinduy
for unfair practices, O’Leary called him “a crazy Spanish communist minister”
and showed a cardboard cutout of Bustinduy dressed as a clown and wearing an
apron with the words “I raise prices.”
Now it’s Trump’s turn.
“If Trump threatens Europe with tariffs, Europe should respond in like measure
and Trump will chicken out. He generally does,” O’Leary said on Wednesday.
LONDON — The U.K. and Poland have agreed to cooperate more closely to shoot down
air and missile threats, as they seek to strengthen the protection of their
skies.
The two NATO allies will step up joint training of helicopter pilots and work
together on new capabilities to counter attacks from the air.
British and Polish military personnel will train together in virtual
environments to improve air defense techniques, while eight Polish military
helicopter pilots will undertake training in the U.K. under NATO’s military
aviation program.
Two Polish helicopter instructors will be permanently stationed at RAF Shawbury
in the West Midlands for a full rotational tour.
The announcement came during a visit by Polish President Karol Nawrocki to
Downing Street on Tuesday.
U.K. Defense Secretary, John Healey, hailed Poland as “a crucial ally for the
U.K. in this era of rising threats” and said together they were “stepping up to
defend Europe and face down the threat from (Vladimir) Putin.”
British fighter jets conducted an air defense mission over Poland as part of an
allied response to Russian drone incursions into Polish airspace, with pilots
from the two countries flying together as part of NATO’s Eastern Sentry mission.
Healey announced last year that British armed forces would get fresh powers to
bring down suspicious drones over military sites as part of the Armed Forces
Bill, amid a spate of aerial incursions across Europe.
Ministers have committed to improving the U.K.’s aerial defenses, following
concerns that it is increasingly vulnerable given the changing nature of threats
from the air.
The U.K. and Poland have cooperated extensively on air defense in the past,
including a £1.9 billion export agreement announced in April 2023 to equip 22
Polish air defense batteries, and a separate deal worth over £4 billion to
continue the next phase of Poland’s future air defense programme, Narew.
BRUSSELS — Donald Trump blew up global efforts to cut emissions from shipping,
and now the EU is terrified the U.S. president will do the same to any plans to
tax carbon emissions from long-haul flights.
The European Commission is studying whether to expand its existing carbon
pricing scheme that forces airlines to pay for emissions from short- and
medium-haul flights within Europe into a more ambitious effort covering all
flights departing the bloc.
If that happens, all international airlines flying out of Europe — including
U.S. ones — would face higher costs, something that’s likely to stick in the
craw of the Trump administration.
“God only knows what the Trump administration will do” if Brussels expands its
own Emissions Trading System to include transatlantic flights, a senior EU
official told POLITICO.
A big issue is how to ensure that the new system doesn’t end up charging only
European airlines, which often complain about the higher regulatory burden they
face compared with their non-EU rivals.
The EU official said Commission experts are now “scratching their heads how you
can, on the one hand, talk about extending the ETS worldwide … [but] also make
sure that you have a bit of a level playing field,” meaning a system that
doesn’t only penalize European carriers.
Any new costs will hit airlines by 2027, following a Commission assessment that
will be completed by July 1.
Brussels has reason to be worried.
“Trump has made it very clear that he does not want any policies that harm
business … So he does not want any environmental regulation,” said Marina
Efthymiou, aviation management professor at Dublin City University. “We do have
an administration with a bullying behavior threatening countries and even
entities like the European Commission.”
The new U.S. National Security Strategy, released last week, closely hews to
Trump’s thinking and is scathing on climate efforts.
“We reject the disastrous ‘climate change’ and ‘Net Zero’ ideologies that have
so greatly harmed Europe, threaten the United States, and subsidize our
adversaries,” it says.
In October, the U.S. led efforts to prevent the International Maritime
Organization from setting up a global tax to encourage commercial fleets to go
green. The no-holds-barred push was personally led by Trump and even threatened
negotiators with personal consequences if they went along with the measure.
In October, the U.S. led efforts to prevent the International Maritime
Organization from setting up a global tax aimed at encouraging commercial fleets
to go green. | Nicolas Tucat/AFP via Getty Images
This “will be a parameter to consider seriously from the European Commission”
when it thinks about aviation, Efthymiou said.
The airline industry hopes the prospect of a furious Trump will scare off the
Commission.
“The EU is not going to extend ETS to transatlantic flights because that will
lead to a war,” said Willie Walsh, director general of the International Air
Transport Association, the global airline lobby, at a November conference in
Brussels. “And that is not a war that the EU will win.”
EUROPEAN ETS VS. GLOBAL CORSIA
In 2012, the EU began taxing aviation emissions through its cap-and-trade ETS,
which covers all outgoing flights from the European Economic Area — meaning EU
countries plus Iceland, Liechtenstein and Norway. Switzerland and the U.K. later
introduced similar schemes.
In parallel, the U.N.’s International Civil Aviation Organization was working on
its own carbon reduction plan, the Carbon Offsetting and Reduction Scheme for
International Aviation. Given that fact, Brussels delayed imposing the ETS on
flights to non-European destinations.
The EU will now be examining the ICAO’s CORSIA to see if it meets the mark.
“CORSIA lets airlines pay pennies for pollution — about €2.50 per passenger on a
Paris-New York flight,” said Marte van der Graaf, aviation policy officer at
green NGO Transport & Environment. Applying the ETS on the same route would cost
“€92.40 per passenger based on 2024 traffic.”
There are two reasons for such a big difference: the fourfold higher price for
ETS credits compared with CORSIA credits, and the fact that “under CORSIA,
airlines don’t pay for total emissions, but only for the increase above a fixed
2019 baseline,” Van der Graaf explained.
“Thus, for a Paris-New York flight that emits an average of 131 tons of CO2,
only 14 percent of emissions are offset under CORSIA. This means that, instead
of covering the full 131 tons, the airline only has to purchase credits for
approximately 18 tons.”
Efthymiou, the professor, warned the price difference is projected to increase
due to the progressive withdrawal of free ETS allowances granted to aviation.
The U.N. scheme will become mandatory for all U.N. member countries in 2027 but
will not cover domestic flights, including those in large countries such as the
U.S., Russia and China.
KEY DECISIONS
By July 1, the Commission must release a report assessing the geographical
coverage and environmental integrity of CORSIA. Based on this evaluation, the EU
executive will propose either extending the ETS to all departing flights from
the EU starting in 2027 or maintaining it for intra-EU flights only.
Opposition to the ETS in the U.S. dates back to the Barack Obama administration.
| Pete Souza/White House via Getty Images
According to T&E, CORSIA doesn’t meet the EU’s climate goals.
“Extending the scope of the EU ETS to all departing flights from 2027 could
raise an extra €147 billion by 2040,” said Van der Graaf, noting that this money
could support the production of greener aviation fuels to replace fossil
kerosene.
But according to Efthymiou, the Commission might decide to continue the current
exemption “considering the very fragile political environment we currently have
with a lunatic being in power,” she said, referring to Trump.
“CORSIA has received a lot of criticism for sure … but the importance of CORSIA
is that for the first time ever we have an agreement,” she added. “Even though
that agreement might not be very ambitious, ICAO is the only entity with power
to put an international regulation [into effect].”
Regardless of what is decided in Brussels, Washington is prepared to fight.
Opposition to the ETS in the U.S. dates back to the Barack Obama administration,
when then-Secretary of State Hillary Clinton sent a letter to the Commission
opposing its application to American airlines.
During the same term, the U.S. passed the EU ETS Prohibition Act, which gives
Washington the power to prohibit American carriers from paying for European
carbon pricing.
John Thune, the Republican politician who proposed the bill, is now the majority
leader of the U.S. Senate.
With his lightning raid to snatch Venezuelan strongman Nicolás Maduro, U.S.
President Donald Trump has shown that President Vladimir Putin’s self-proclaimed
“multipolar” world of anti-Western dictatorial alliances from Caracas to Tehran
is essentially toothless.
Beyond the humiliation of the world seeing that Putin isn’t a dependable ally
when the chips are down — something already witnessed in Nagorno-Karabakh, Syria
and Iran — there’s now also the added insult that Trump appears more effective
and bolder in pulling off the sort of maverick superpower interventions the
Kremlin wishes it could achieve.
In short, Putin has been upstaged at being a law unto himself. While the Russian
leader would presumably have loved to remove Ukrainian President Volodymyr
Zelenskyy in a blitz attack, he’s instead been locked in a brutal war for four
years, suffering over 1 million Russian dead and wounded.
“Putin must be unbearably jealous [of Trump],” political analyst and former
Kremlin speechwriter Abbas Gallyamov told POLITICO. “What Putin promised to do
in Ukraine, Trump did in half an hour [in Venezuela].”
The sense that Moscow has lost face was one of the few things independent
analysts and Russia’s ultranationalists seemed to agree on.
Discussing the Caracas raid on his Telegram account, the nationalist
spy-turned-soldier and war blogger Igor Girkin, now jailed in a penal colony,
wrote: “We’ve suffered another blow to our image. Another country that was
counting on Russia’s help hasn’t received it.”
UNRELIABLE ALLY
For years, Russia has sought to project itself as the main force resisting
American-led Western hegemony, pioneering an alliance loosely united by the idea
of a common enemy in Washington. Under Putin, Russia presented itself as the
chief proponent of this “multipolar” world, which like the Soviet Union would
help defend those in its camp.
Invading Ukraine in 2022, Moscow called upon its allies to rally to its side.
They largely heeded the call. Iran sold Russia drones. China and India bought
its oil. The leaders of those countries in Latin America and Africa, with less
to offer economically and militarily, gave symbolic support that lent credence
to Moscow’s claim it wasn’t an international pariah and in fact had plenty of
friends.
Recent events, however, have shown those to be a one-way friendships to the
benefit of Moscow. Russia, it appears, won’t be riding to the rescue.
The first to realise that cozying up to Russia had been a waste of time were the
Armenians. Distracted by the Ukraine war, Moscow didn’t lift a finger to stop
Azerbaijan from seizing the ethnic-Armenian region of Nagorno-Karabakh in a
lightning war in 2023. Russian peacekeepers just stood by.
A year later, the Kremlin was similarly helpless as it watched the collapse of
the Syrian regime of Bashar al-Assad, which it had propped up for years. Russia
even had to abandon Tartous, its vital port on the Mediterranean.
Moscow didn’t lift a finger to stop Azerbaijan from seizing the ethnic-Armenian
region of Nagorno-Karabakh in a lightning war in 2023. | Anthony
Pizzoferrato/Middle East Images/AFP via Getty Images
Further undermining its status in the Middle East, Russia was unable to help
Iran when Israel and the U.S. last year bombed the Islamic Republic at will.
Russia has long been an important strategic partner to Iran in nuclear
technology, but it had no answer to the overwhelming display of military
aviation used to strike Iran’s atomic facilities.
Now, Venezuela, another of Putin’s longtime allies, has been humiliated,
eliciting haughty condemnation (but no action) from Moscow.
GREEN WITH ENVY
Moscow’s energy and military ties to Caracas run deep. Since 1999 Russia has
supplied more than $20 billion in military equipment — financed through loans
and secured in part by control over Venezuela’s oil industry — investments that
will now be of little avail to Moscow.
Maduro’s capture is particularly galling for the Russians, as in the past they
have managed to whisk their man to safety — securing a dacha after your escape
being among the attractions of any dictator’s pact with Russia. But while ousted
Ukrainian leader Viktor Yakunovych and Assad secured refuge in Russia, Maduro on
Monday appeared in a New York court dressed in prison garb.
Russian officials, predictably, have denounced the American attack. Russia’s
foreign ministry described it as “an unacceptable violation of the sovereignty
of an independent state,” while senator Alexei Puskov said Trump’s actions
heralded a return to the “wild imperialism of the 19th century.”
Sovereignty violations and anachronistic imperialism, of course, are exactly
what the Russians themselves are accused of in Ukraine.
There has also been the usual saber-rattling.
“All of Russia is asking itself why we don’t deal with our enemies in a similar
way,” wrote Aleksandr Dugin, a prominent ultranationalist | Matt Cardy/Getty
Images
Alexei Zhuravlev, deputy chairman of Russia’s parliamentary defense committee,
said Russia should consider providing Venezuela with a nuclear-capable Oreshnik
missile.
And the military-themed channel ‘Two Majors,’ which has more than 1.2 million
followers, posted on Telegram that “Washington’s actions have effectively given
Moscow free rein to resolve its own issues by any means necessary.” (As if
Moscow had not been doing so already.)
The more optimistic quarters of the Russian camp argue that Trump’s actions in
Caracas show international law has been jettisoned, allowing Moscow to justify
its own behavior. Others suggest, despite evidence to the contrary in the Middle
East, that Trump is adhering to the 19th century Monroe Doctrine and will be
content to focus on dominance of the Americas, leaving Russia to its old
European and Central Asian spheres of influence.
In truth, however, Putin has followed the might-is-right model for years. What’s
embarrassing is that he hasn’t proving as successful at it as Trump.
Indeed, the dominant emotion among Russia’s nationalists appears to be envy,
both veiled and undisguised.
“All of Russia is asking itself why we don’t deal with our enemies in a similar
way,” wrote Aleksandr Dugin, a prominent ultranationalist. Russia, he continued,
should take a leaf out of Trump’s playbook. “Do like Trump, do it better than
Trump. And faster.”
Pro-Kremlin mouthpiece Margarita Simonyan was even more explicit, saying there
was reason to “be jealous.”
Various pro-Kremlin commentators also noted tartly that, unlike Russia, the U.S.
was unlikely to face repercussions in the form of international sanctions or
being “cancelled.”
To many in Russia, Trump’s audacious move is likely to confirm, rather than
upend their world view, said Gallyamov, the analyst.
Russian officials and state media have long proclaimed that the world is ruled
by strength rather than laws. The irony, though, is that Trump is showing
himself to be more skillful at navigating the law of the jungle than Putin.
“Putin himself created a world where the only thing that matters is success,”
Gallyamov added. “And now the Americans have shown how it’s done, while Putin’s
humiliation is obvious for everyone to see.”
KYIV — Ukrainian President Volodymyr Zelenskyy is planning to remove Vasyl
Malyuk as head of the Security Service of Ukraine (SBU), the state’s top
counterintelligence agency, as part of an ongoing government reshuffle.
The reshuffle has already seen two other top spies — Kyrylo Budanov and Oleh
Ivashchenko — shifted to other responsibilities. Budanov has agreed to head the
president’s office, while Ivashchenko will be chief of the HUR military
intelligence service.
Malyuk is said to be fighting to retain his post.
“There are attempts to remove Malyuk, but nothing has been decided yet,” a
Ukrainian official told POLITICO on Saturday. “Talks are still going on. But if
Malyuk is out of SBU, this will seriously weaken Ukraine’s ability to protect
itself,” added the official, who was granted anonymity to discuss sensitive
matters.
“Malyuk is in his place, and the results of the security service prove it. It
was he who turned the SBU into an effective special service that conducts unique
special operations and gives Ukraine strong ‘cards’ at the negotiating table,”
the official said.
Enigmatic Malyuk, 42, has been managing the SBU since 2023. Since he was
officially appointed by the parliament, he has overseen some of the agency’s
high-profile assassinations and most daring special operations inside Russia,
like the 2025 operation “Spiderweb” in which Ukrainian drones hit Russia’s
strategic bombers on several protected airfields, causing $7 billion in damage
to Russian military aviation.
Neither Malyuk nor Zelenskyy responded to requests for comment. The SBU press
service and the president’s office refused to comment.
Holos Yaroslav Zheleznyak, a Ukrainian MP from the opposition party, said that
Zelenskyy did not plan to fire Malyuk, but to offer him a new job. The Ukrainian
leader has offered Malyuk a post at the Foreign Intelligence Service, which
Ivashchenko used to head, or at the National Security Council of Ukraine, now
headed by Rustem Umerov. POLITICO confirmed that information through other
Ukrainian officials.
Before the final decision on Malyuk, Zelenskyy also offered to make Mykhailo
Fedorov, currently deputy prime minister and minister of digital transformation,
the new defense minister.
“Mykhailo is deeply involved in the issues related to the Drone Line and works
very effectively on digitalizing public services and processes,” Zelenskyy said
in an evening address to the nation late Friday. “Together with all our
military, the army command, national weapons producers, and Ukraine’s partners,
we must implement defense-sector changes,” he added.
Fedorov has so far issued no public comments on whether he will accept the new
post. The Ukrainian parliament would have to formally appoint him and dismiss
Denys Shmyhal, who has served as defense minister and also as prime minister in
Zelenskyy’s war-time government. Zelenskyy thanked Shmyhal and said he will stay
in the team.
The Ukrainian official quoted above praised the performance of the SBU under
Malyuk. “No other security structure currently has such results as the SBU. Why
change those?” the official said.
“The Kremlin will open the champagne if Malyuk is dismissed from his post.”
Poland scrambled fighter jets and placed its air defense systems on heightened
alert overnight as Moscow launched one of its heaviest air assaults on Ukraine
in recent weeks.
The Russian attack sent shockwaves across NATO’s eastern flank just a day before
Ukrainian President Volodymyr Zelenskyy is due to meet U.S. President Donald
Trump to discuss a newly revised peace proposal.
Poland’s Operational Command posted Saturday on X that military aviation
operations were launched in Polish airspace “in connection with the activity of
long-range aviation of the Russian Federation carrying out strikes on the
territory of Ukraine.”
Fighter jets were scrambled and ground-based air defense and radar
reconnaissance systems were put on readiness as a preventive measure to protect
Polish airspace.
The move came as Russia attacked Ukraine overnight with nearly 500 drones — many
of them Iranian-designed Shaheds — and around 40 missiles, including Kinzhal
hypersonic weapons, according to Ukrainian authorities.
“Another Russian attack is still ongoing,” Zelenskyy wrote on X at mid-morning
Saturday, saying the primary target was Kyiv, where energy facilities and
civilian infrastructure were hit. He said residential buildings were damaged and
rescue teams were searching for people trapped under rubble, while electricity
and heating were cut in parts of the capital amid freezing temperatures.
Ukrainian Interior Minister Ihor Klymenko said at least one person was killed
and more than 20 others were injured in Kyiv, with multiple civilian sites
damaged and search-and-rescue operations continuing.
Zelenskyy said the barrage underscored Russian President Vladimir Putin’s lack
of seriousness about ending the war. “Russian representatives engage in lengthy
talks, but in reality, Kinzhals and Shaheds speak for them,” Zelenskyy wrote.
The attack came one day before Zelenskyy is expected to meet Trump in Florida to
present a revised 20-point peace plan, including proposals on security
guarantees and territorial arrangements, talks Trump has publicly framed as
contingent on his approval.
Several hours later, Poland’s military said the air operation had ended and that
no violation of Polish airspace had been detected.
Europe prides itself on being a world leader in animal protection, with legal
frameworks requiring member states to pay regard to animal welfare standards
when designing and implementing policies. However, under REACH — Registration,
Evaluation, Authorisation and Restriction of Chemicals (REACH) — the EU’s
cornerstone regulation on chemical safety, hundreds of thousands of animals are
subjected to painful tests every year, despite the legal requirement that animal
testing should be used only as a ‘last resort’. With REACH’s first major revamp
in almost 20 years forthcoming, lawmakers now face a once-in-a-generation
opportunity to drive a genuine transformation of chemical regulation.
When REACH was introduced nearly a quarter of a century ago, it outlined a bold
vision to protect people and the environment from dangerous chemicals, while
simultaneously driving a transition toward modern, animal-free testing
approaches. In practice, however, companies are still required to generate
extensive toxicity data to bring both new chemicals and chemicals with long
histories of safe use onto the market. This has resulted in a flood of animal
tests that could too often be dispensed, especially when animal-free methods are
just as protective (if not more) of human health and the environment.
> Hundreds of thousands of animals are subjected to painful tests every year,
> despite the legal requirement that animal testing should be used only as a
> ‘last resort’.
Despite the last resort requirement, some of the cruelest tests in the books are
still expressly required under REACH. For example, ‘lethal dose’ animal tests
were developed back in 1927 — the same year as the first solo transatlantic
flight — and remain part of the toolbox when regulators demand ‘acute toxicity’
data, despite the availability of animal-free methods. Yet while the aviation
industry has advanced significantly over the last century, chemical safety
regulations remain stuck in the past.
Today’s science offers fully viable replacement approaches for evaluating oral,
skin and fish lethality to irritation, sensitization, aquatic bioconcentration
and more. It is time for the European Commission and member states to urgently
revise REACH information requirements to align with the proven capabilities of
animal-free science.
But this is only the first step. A 2023 review projected that animal testing
under REACH will rise in the coming years in the absence of significant reform.
With the forthcoming revision of the REACH legal text, lawmakers face a choice:
lock Europe into decades of archaic testing requirements or finally bring
chemical safety into the 21st century by removing regulatory obstacles that slow
the adoption of advanced animal-free science.
If REACH continues to treat animal testing as the default option, it risks
eroding its credibility and the values it claims to uphold. However, animal-free
science won’t be achieved by stitching together one-for-one replacements for
legacy animal tests. A truly modern, European relevant chemicals framework
demands deeper shifts in how we think, generate evidence and make safety
decisions. Only by embracing next-generation assessment paradigms that leverage
both exposure science and innovative approaches to the evaluation of a
chemical’s biological activity can we unlock the full power of state-of the-art
non-animal approaches and leave the old toolbox behind.
> With the forthcoming revision of the REACH legal text, lawmakers face a
> choice: lock Europe into decades of archaic testing requirements or finally
> bring chemical safety into the 21st century.
The recent endorsement of One Substance, One Assessment regulations aims to
drive collaboration across the sector while reducing duplicate testing on
animals, helping to ensure transparency and improve data sharing. This is a step
in the right direction, and provides the framework to help industry, regulators
and other interest-holders to work together and chart a new path forward for
chemical safety.
The EU has already demonstrated in the cosmetics sector that phasing out animal
testing is not only possible but can spark innovation and build public trust. In
2021, the European Parliament urged the Commission to develop an EU plan to
replace animal testing with modern scientific innovation. But momentum has since
stalled. In the meantime, more than 1.2 million citizens have backed a European
Citizens’ Initiative calling for chemical safety laws that protect people and
the environment without adding new animal testing requirements; a clear
indication that both science and society are eager for change.
> The EU has already demonstrated in the cosmetics sector that phasing out
> animal testing is not only possible but can spark innovation and build public
> trust.
Jay Ingram, managing director, chemicals, Humane World for Animals (founding
member of AFSA Collaboration) states: “Citizens are rightfully concerned about
the safety of chemicals that they are exposed to on a daily basis, and are
equally invested in phasing out animal testing. Trust and credibility must be
built in the systems, structures, and people that are in place to achieve both
of those goals.”
The REACH revision can both strengthen health and environmental safeguards while
delivering a meaningful, measurable reduction in animal use year on year.
Policymakers need not choose between keeping Europe safe and embracing kinder
science; they can and should take advantage of the upcoming REACH revision as an
opportunity to do both.
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