BRUSSELS — Cash-strapped Europeans are struggling to keep their homes cool as
the continent’s summers get hotter, a major new survey has found.
More than 38 percent of the 27,000 respondents to a continent-wide poll
published Wednesday said they couldn’t afford to keep their house cool enough in
the summer.
The problem was unevenly split down income lines: Only 9 percent of affluent
Europeans said they struggled with overheating homes, while 66 percent of people
experiencing financial difficulties reported being unable to afford adequate
cooling.
The survey, conducted by the European Environment Agency and the European
Foundation for the Improvement of Living and Working Conditions, comes as the
European Commission drafts a plan for boosting the bloc’s resilience to climate
impacts such as heat and extreme weather. The proposal is expected toward the
end of the year.
Reacting to the findings, German Green MEP Jutta Paulus called for a “binding EU
law on adaptation to natural disasters” that “could set clear rules, assess
risks, and make strategies binding.” She added: “Only in this way can we ensure
safe living conditions, a stable economy, and a natural environment that
protects us.”
The report underscores how global warming disproportionately affects those who
have fewer resources to prepare.
Around half of respondents said they had installed shading or insulation in
their homes, and nearly a third said they had invested in air-conditioning or
ventilation. But while nearly 40 percent of well-off households invested in AC
or fans, just over 20 percent of cash-strapped Europeans did the same.
Accordingly, a larger share of low-income Europeans reported feeling too hot in
their home at least once over the last five years.
The divide is particularly stark between renters, which make up around a third
of the EU’s population, and homeowners: Nearly half of renters said they were
unable to afford to keep their home cool, compared to 29 percent of homeowners.
As a result, some 60 percent of tenants said they had felt too hot at home at
least once over the past five years, versus just over 40 percent of owners.
Beyond heat, the survey looked at flooding, wildfires, water scarcity, wind
damage and increasing insect bites. In total, 80 percent of respondents said
they had been affected by at least one of these impacts over the past five
years.
But heat waves, which are made more frequent, longer and hotter by climate
change, emerged as the top concern, with nearly half of respondents saying they
had felt too hot in their home and 60 percent saying they had felt too hot
outside.
Income and property ownership aren’t the only dividing lines, however.
Europeans in poor health — many of whom may be homebound — are also more likely
to be at risk from extreme heat, the polling found. More than half of people
describing themselves as being in poor health reported being unable to afford to
keep their homes cool, compared to just over a quarter of those who declared
themselves to be in good health.
Plus, Southern Europeans are far more vulnerable than those in northern Europe.
While just 8 percent of respondents across Europe said they had been affected by
wildfires, for example, that figure rose to 41 percent in Greece.
Anxiety over climate impacts is also far higher in southern countries: There,
twice as many respondents worry about worsening heat, fires and floods compared
to Northern Europeans.
Respondents in Central and Eastern Europe also reported high exposure to climate
impacts. The highest share of households unable to keep their homes cool in the
summer — 46 percent, compared to 37 percent in southern and western Europe and
30 percent in northern countries — was found in this region.
In general, the survey found Europeans to remain under-equipped to deal with
extreme weather emergencies. Just 13.5 percent of respondents said they have an
emergency kit at home, for example, and less than half have home insurance
covering extreme weather.
Tag - Insurance
LONDON — Britain’s pubs are in distress. The beer-loving Nigel Farage has spied
an opening.
The Reform UK leader and his chief whip Lee Anderson are set to unveil a raft of
new policies Tuesday meant to support struggling publicans — and punch a Labour
bruise.
It comes days after Chancellor Rachel Reeves — under pressure from a
highly-organized pubs industry — was forced to U-turn on plans from her budget
and announce a three-year relief package for the U.K.’s ailing hospitality
sector.
Farage isn’t alone — the government’s other rivals are setting out pub-friendly
policies too, and are helping to push the plight of the British boozer up the
political agenda.
But it’s the latest populist move by the right-wing outfit, whose leader often
posts pictures from the pub on social media and has carefully cultivated an
ale-drinking man-of-the people persona, to capture the attention of an
electorate increasingly soured on Labour’s domestic efforts.
‘GENUINE PISS ARTIST’
Reform will on Tuesday lift the lid on a five-point plan to “save Britain’s
pubs,” promising a slew of tax cuts for the sector — including slashing sales
tax VAT to 10 percent, scrapping the employer National Insurance increase for
the hospitality sector, cutting beer duty by 10 percent, and phasing out
business rates for pubs altogether.
The party will also pledge to change “beer orders” regulation, which sees large
pub companies lock landlords into contracts that force them to buy beer from
approved suppliers at much higher prices than the open market.
Reform says the plan would be funded through social security changes —
reinstating a two-child cap on universal credit, a move the party claims would
save around £3 billion by 2029-30.
“Labour has no connection to how real life works,” Farage said earlier this
month as he lambasted government plans to lower the drink drive limit.
One of the British pub industry’s biggest names thinks Farage could have a
genuine opening with voters on this front. The Reform boss has “got the massive
advantage in that he’s a genuine piss artist,” Tim Martin, the outspoken owner
of the British pub chain JD Wetherspoons, said.
“He genuinely likes a sherbet, which, when it comes to pubs, people can tell
that, whereas I don’t think [they do] with the other party leaders,” he said.
The pub boss recounted watching as Farage “whacked down two pints and had two
cigarettes” ahead of an appearance on BBC Question Time in which Martin also
featured, as other politicians hovered over their briefing notes.
The dangers of upsetting the pub industry have not been lost on Labour’s
political opponents. | Ben Stansall/AFP via Getty Images
Green MP Siân Berry is less impressed with Farage’s pub shtick, however. She
accuses him of “playing into a stereotype of pubs as spaces for older white men
to sit and drink.”
“Most people who run a pub business these days know that it needs to be a family
space,” she said.
SHOW US THE POLICY
Either way, Farage is exploiting an opening left by Labour, which riled up some
pubs with its planned shake-up of business rates.
“When the Labour government came in, the pub industry was already weak — and
they piled on more costs,” said Wetherspoons’ boss Martin.
Since Labour won power in 2024 Reeves has also hiked the minimum wage employers
must pay their staff, increased employer national insurance contributions, and
raised beer duties.
While the industry cautiously welcomed Reeves’ business rate U-turn last month,
they say there’s still more to do.
“This will make a significant difference, as three quarters of pubs are now
going to see their bills staying the same or going down,” Andy Tighe, the
British Beer and Pub Association (BBPA)’s strategy and policy director, said of
the U-turn — but “it doesn’t solve everything,” he added.
“For most operators, it’s those big sorts of taxes around business rates, VAT,
duty, employment-related taxes that make the real difference, ultimately, to how
they think about the future,” he said.
A U.K. Treasury spokesperson said: “We are backing Britain’s pubs — cutting
April’s business rates bills by 15 percent followed by a two year freeze,
extending World Cup opening hours and increasing the Hospitality Support Fund to
£10 million to help venues.
“This comes on top of capping corporation tax, cutting alcohol duty on draught
pints and six cuts in interest rates, benefiting businesses in every part of
Britain,” they added.
ALSO PITCHING
The dangers of upsetting the pub industry have not been lost on Labour’s
political opponents. Politicians of all stripes are keen to engage with the
industry, Tighe says.
“Pubs matter to people and that’s why I think political parties increasingly
want to ensure that the policies that they’re putting forward are pub-friendly,”
he said.
Polling found that nearly half (48 percent) of Farage’s supporters in 2024 think
pubs in their local area have deteriorated in recent years. | Henry Nicholls/AFP
via Getty Images
The Tories say they will abolish business rates for pubs, while the Liberal
Democrats have pledged to cut their VAT by 5 percent.
The Greens’ Berry also wants to tackle alcohol advertising which she says pushes
people to drink at home. “A pub is a different thing in a lot of ways, it is
more part of the community — drinking second,” the left-wing party’s
representative said. “I think the evidence base for us is not to be anti-pub,
but it might be against advertising alcohol.”
Industry bigwigs like Martin have consistently argued that pubs are being asked
to compete with supermarkets on a playing field tilted against them.
“They must have tax equality with supermarkets, because they can’t compete with
supermarkets, which are much stronger financial institutions than pubs,” he
said, citing the 20 percent VAT rate on food served in pubs — and the wider tax
burden pubs face.
GLOOMY OUTLOOK
The plight of the local boozer appears to be occupying British voters too.
Polling from the think tank More in Common conducted in August 2025 found almost
half of Brits (44 percent) go to the pub at least once a month — and among
people who voted Labour in 2024 that rises to 60 percent.
The same polling found nearly half (48 percent) of Farage’s supporters in 2024
think pubs in their local area have deteriorated in recent years — compared to
31 percent of Labour voters.
“Reform voters are more likely than any other voter group to believe that their
local area is neglected,” Louis O’Geran, research associate at More in Common,
said.
“These tangible signs of decline — like boarded up pubs and shops — often come
up in focus groups as evidence of ‘broken Britain’ and drive support for
Reform,” he added.
The job now for Farage, and his political rivals, is to convince voters their
local watering hole is safe in their hands.
LONDON — Keir Starmer is off to China to try to lock in some economic wins he
can shout about back home. But some of the trickiest trade issues are already
being placed firmly in the “too difficult” box.
The U.K.’s trade ministry quietly dispatched several delegations to Beijing over
the fall to hash out deals with the Chinese commerce ministry and lay the
groundwork for the British prime minister’s visit, which gets going in earnest
Wednesday.
But the visit comes as Britain faces growing pressure from its Western allies to
combat Chinese industrial overproduction — and just weeks after Starmer handed
his trade chief new powers to move faster in imposing tariffs on cheap,
subsidized imports from countries like China.
For now, then, the aim is to secure progress in areas that are seen as less
sensitive.
Starmer’s delegation of CEOs and chairs will split their time between Beijing
and Shanghai, with executives representing City giants and high-profile British
brands including HSBC, Standard Chartered, Schroders, and the London Stock
Exchange Group, alongside AstraZeneca, Jaguar Land Rover, Octopus Energy, and
Brompton filling out the cast list. Starmer will be flanked on his visit by
Trade Secretary Peter Kyle and City Minister Lucy Rigby.
Despite the weighty delegation, ministers insist the approach is deliberately
narrow.
“We have a very clear-eyed approach when it comes to China,” Security Minister
Dan Jarvis said Monday. “Where it is in our national interest to cooperate and
work closely with [China], then we will do so. But when it’s our national
security interest to safeguard against the threats that [they] pose, we will
absolutely do that.”
Starmer’s wishlist will be carefully calibrated not to rock the boat. Drumming
up Chinese cash for heavy energy infrastructure, including sensitive wind
turbine technology, is off the table.
Instead, the U.K. has been pushing for lower whisky tariffs, improved market
access for services firms, recognition of professional qualifications, banking
and insurance licences for British companies operating in China, easier
cross-border investment, and visa-free travel for short stays.
With China fiercely protective of its domestic market, some of those asks will
be easier said than done. Here’s POLITICO’s pro guide to where it could get
bumpy.
CHAMPIONING THE CITY OF LONDON
Britain’s share of China’s services market was a modest 2.7 percent in 2024 —
and U.K. firms are itching for more work in the country.
British officials have been pushing for recognition of professional
qualifications for accountants, designers and architects — which would allow
professionals to practice in China without re-licensing locally — and visa-free
travel for short stays.
Vocational accreditation is a “long-standing issue” in the bilateral
relationship, with “little movement” so far on persuading Beijing to recognize
U.K. professional credentials as equivalent to its own, according to a senior
industry representative familiar with the talks, who, like others in this
report, was granted anonymity to speak freely.
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so. | Jessica
Lee/EPA
Britain is one of the few developed countries still missing from China’s
visa-free list, which now includes France, Germany, Italy, Spain, the
Netherlands, Switzerland, Australia, New Zealand, Japan, Saudi Arabia, Russia
and Sweden.
Starmer is hoping to mirror a deal struck by Canadian PM Mark Carney, whose own
China visit unlocked visa-free travel for Canadians.
The hope is that easier business travel will reduce friction and make it easier
for people to travel and explore opportunities on the ground — it would allow
visa-free travel for British citizens, giving them the ability to travel for
tourism, attend business conferences, visit friends and family, and participate
in short exchange activities.
SMOOTHING FINANCIAL FLOWS
The Financial Conduct Authority’s Chair Ashley Alder is also flying out to
Beijing, hoping to secure closer alignment between the two countries’ capital
markets. He’ll represent Britain’s financial watchdog at the inaugural U.K-China
Financial Working Group in Beijing — and bang the drum for better market
connectivity between the U.K. and China.
Expect emphasis on the cross-border investments mechanism known as the
Shanghai-London and Shenzhen-London Stock Connect, plus data sovereignty issues
associated with Chinese companies jointly listing on the London Stock Exchange,
two figures familiar with the planning said.
The Stock Connect opened up both markets to investors in 2019 which, according
to FCA Chair Ashley Alder, led to listings worth almost $6 billion.
“Technical obstacles have so far prevented us from realizing Stock Connect’s
full potential,” Alder said in a speech last year. Alder pointed to a memorandum
of understanding being drawn up between the FCA and China’s National Financial
Regulatory Administration, which he said is “critical” to allow information to
be shared quickly and for firms to be supervised across borders. But that raises
its own concerns about Chinese use of data.
“The goods wins are easier,” said a senior British business representative
briefed on the talks. “Some of the service ones are more difficult.”
TAPPING INTO CHINA’S BIOTECH BOOM
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment.
China, once known mainly for generics — cheaper versions of branded medicine
that deliver the same treatment — has rapidly emerged as a pharma powerhouse.
According to ING Bank’s global healthcare lead, Stephen Farrelly, the country
has “effectively replaced Europe” as a center of innovation.
ING data shows China’s share of global innovative drug approvals jumped from
just 4 percent in 2014 to 27 percent in 2024.
Pharma executives, including AstraZeneca’s CEO Pascal Soriot, are among those
heading to China, as Britain tries to burnish its credentials as a global life
sciences hub — and attract foreign direct investment. | John G. Mabanglo/EPA
Several blockbuster drug patents are set to expire in the coming years, opening
the door for cheaper generic competitors. To refill thinning pipelines,
drugmakers are increasingly turning to biotech companies. British pharma giant
GSK signed a licensing deal with Chinese biotech firm Hengrui Pharma last July.
“Because of the increasing relevance of China, the big pharma industry and the
U.K. by definition is now looking to China as a source of those new innovative
therapies,” Farrelly said.
There are already signs of progress. Science Minister Patrick Vallance said late
last year that the U.K. and China are ready to work together in
“uncontroversial” areas, including health, after talks with his Chinese
counterpart. AstraZeneca, the University of Cambridge and Beijing municipal
parties have already signed a partnership to share expertise.
And earlier this year, the U.K. announced plans to become a “global first choice
for clinical trials.”
“The U.K. can really help China with the trust gap” when it comes to getting
drugs onto the market, said Quin Wills, CEO of Ochre, a biotech company
operating in New York, Oxford and Taiwan. “The U.K. could become a global gold
stamp for China. We could be like a regulatory bridgehead where [healthcare
regulator] MHRA, now separate from the EU since Brexit, can do its own thing and
can maybe offer a 150-day streamlined clinical approval process for China as
part of a broader agreement.”
SLASHING WHISKY TARIFFS
The U.K. has also been pushing for lowered tariffs on whisky alongside wider
agri-food market access, according to two of the industry figures familiar with
the planning cited earlier.
Talks at the end of 2024 between then-Trade Secretary Jonathan Reynolds and his
Chinese counterpart ended Covid-era restrictions on exports, reopening pork
market access.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate.
“The whisky and brandy issue became China leverage,” said the senior British
business representative briefed on the talks. “I think that they’re probably
going to get rid of the tariff.”
It’s not yet clear how China would lower whisky tariffs without breaching World
Trade Organization rules, which say it would have to lower its tariffs to all
other countries too.
INDUSTRIAL TENSIONS
The trip comes as the U.K. faces growing international pressure to take a
tougher line on Chinese industrial overproduction, particularly of steel and
electric cars.
But in February 2025 China doubled its import tariffs on brandy and whisky,
removing its provisional 5 percent tariff and applying the 10 percent
most-favored-nation rate. | Yonhap/EPA
But while the U.K.’s allies in the European Union and the U.S. have imposed
tariffs on Chinese EVs, the U.K. has resisted pressure to do so.
There’s a deal “in the works” between Chinese EV maker and Jaguar Land Rover,
said the senior British business representative briefed on the talks quoted
higher, where the two are “looking for a big investment announcement. But
nothing has been agreed.” The deal would see the Chinese EV maker use JLR’s
factory in the U.K. to build cars in Britain, the FT reported last week.
“Chinese companies are increasingly focused on localising their operations,”
said another business representative familiar with the talks, noting Chinese EV
makers are “realising that just flaunting their products overseas won’t be a
sustainable long term model.”
It’s unlikely Starmer will land a deal on heavy energy infrastructure, including
wind turbine technology, that could leave Britain vulnerable to China. The U.K.
has still not decided whether to let Ming Yang, a Chinese firm, invest £1.5
billion in a wind farm off the coast of Scotland.
LONDON — Canadian Prime Minister Mark Carney left Beijing and promptly declared
the U.S.-led “world order” broken. Don’t expect his British counterpart to do
the same.
Keir Starmer will land in the Chinese capital Wednesday for the first visit by a
U.K. prime minister since 2018. By meeting President Xi Jinping, he will end
what he has called an “ice age” under the previous Conservative administration,
and try to win deals that he can sell to voters as a boost to Britain’s
sputtering economy.
Starmer is one of a queue of leaders flocking to the world’s second-largest
economy, including France’s Emmanuel Macron in December and Germany’s Friedrich
Merz next month. Like Carney did in Davos last week, the British PM has warned
the world is the most unstable it has been for a generation.
Yet unlike Carney, Starmer is desperate not to paint this as a rupture from the
U.S. — and to avoid the criticism Trump unleashed on Carney in recent days over
his dealings with China. The U.K. PM is trying to ride three horses at once,
staying friendly — or at least engaging — with Washington D.C., Brussels and
Beijing.
It is his “three-body problem,” joked a senior Westminster figure who has long
worked on British-China relations.
POLITICO spoke to 22 current and former officials, MPs, diplomats, industry
figures and China experts, most of whom were granted anonymity to speak frankly.
They painted a picture of a leader walking the same tightrope he always has
surrounded by grim choices — from tricky post-Brexit negotiations with the EU,
to Donald Trump taking potshots at British policies and freezing talks on a
U.K.-U.S. tech deal.
Starmer wants his (long-planned) visit to China to secure growth, but be
cautious enough not to compromise national security or enrage Trump. He appears
neither to have ramped up engagement with Beijing in response to Trump, nor
reduced it amid criticism of China’s espionage and human rights record.
In short, he doesn’t want any drama.
“Starmer is more managerial. He wants to keep the U.K.’s relationships with big
powers steady,” said one person familiar with planning for the trip. “You can’t
really imagine him doing a Carney or a Macron and using the trip to set out a
big geopolitical vision.”
An official in 10 Downing Street added: “He’s clear that it is in the U.K.’s
interests to have a relationship with the world’s second biggest economy. While
the U.S. is our closest ally, he rejects the suggestion that means you can’t
have pragmatic dealings with China.”
He will be hoping Trump — whose own China visit is planned for April — sees it
that way too.
BRING OUT THE CAVALRY
Starmer has one word in his mind for this trip — growth, which was just 0.1
percent in the three months to September.
The prime minister will be flanked by executives from City giants HSBC, Standard
Chartered, Schroders and the London Stock Exchange Group; pharmaceutical company
AstraZeneca; car manufacturer Jaguar Land Rover; energy provider Octopus; and
Brompton, the folding bicycle manufacturer.
The priority in Downing Street will be bringing back “a sellable headline,” said
the person familiar with trip planning quoted above. The economy is the
overwhelming focus. While officials discussed trying to secure a political win,
such as China lifting sanctions it imposed on British parliamentarians in 2021,
one U.K. official said they now believe this to be unlikely.
Between them, five people familiar with the trip’s planning predicted a large
number of deals, dialogues and memorandums of understanding — but largely in
areas with the fewest national security concerns.
These are likely to include joint work on medical, health and life sciences,
cooperation on climate science, and work to highlight Mandarin language schemes,
the people said.
Officials are also working on the mutual recognition of professional
qualifications and visa-free travel for short stays, while firms have been
pushing for more expansive banking and insurance licences for British companies
operating in China. The U.K. is meanwhile likely to try to persuade Beijing to
lower import tariffs on Scotch whisky, which doubled in February 2025.
A former U.K. official who was involved in Britain’s last prime ministerial
visit to China, by Theresa May in 2018, predicted all deals will already be
“either 100 or 99 percent agreed, in the system, and No. 10 will already have a
firm number in its head that it can announce.”
THREADING THE NEEDLE
Yet all five people agreed there is unlikely to be a deal on heavy energy
infrastructure, including wind turbine technology, that could leave Britain
vulnerable to China. The U.K. has still not decided whether to let Ming Yang, a
Chinese firm, invest £1.5 billion in a wind farm off the coast of Scotland.
And while Carney agreed to ease tariffs on Chinese electric vehicles (EVs),
three of the five people familiar with the trip’s planning said that any deep
co-operation on EV technology is likely to be off the table. One of them
predicted: “This won’t be another Canada moment. I don’t see us opening the
floodgates on EVs.”
Britain is trying to stick to “amber and green areas” for any deals, said the
first person familiar with the planning. The second of the five people said: “I
think they‘re going for the soft, slightly lovey stuff.”
Britain has good reason to be reluctant, as Chinese-affiliated groups have long
been accused of hacking and espionage, including against MPs and Britain’s
Electoral Commission. Westminster was gripped by headlines in December about a
collapsed case against two men who had been accused of spying for China. Chinese
firm Huawei was banned from helping build the U.K.’s 5G phone network in 2020
after pressure from Trump.
Even now, Britain’s security agencies are working on mitigations to
telecommunications cables near the Tower of London. They pass close to the
boundary of China’s proposed embassy, which won planning approval last week.
Andrew Small, director of the Asia Programme at the European Council on Foreign
Relations, a think tank working on foreign and security policy, said: “The
current debate about how to ‘safely’ increase China’s role in U.K. green energy
supplies — especially through wind power — has serious echoes of 5G all over
again, and is a bigger concern on the U.S. side than the embassy decision.”
Starmer and his team also “don’t want to antagonize the Americans” ahead of
Trump’s own visit in April, said the third of the five people familiar with trip
planning. “They’re on eggshells … if they announce a new dialogue on United
Nations policy or whatever bullshit they can come up with, any of those could be
interpreted as a broadside to the Trump administration.”
All these factors mean Starmer’s path to a “win” is narrow. Tahlia Peterson, a
fellow working on China at Chatham House, the international affairs think tank,
said: “Starmer isn’t going to ‘reset’ the relationship in one visit or unlock
large-scale Chinese investment into Britain’s core infrastructure.”
Small said foreign firms are being squeezed out of the Chinese market and Xi is
“weaponizing” the dependency on Chinese supply chains. He added: “Beijing will
likely offer extremely minor concessions in areas such as financial services,
[amounting to] no more than a rounding error in economic scale.”
Chancellor Rachel Reeves knows the pain of this. Britain’s top finance minister
was mocked when she returned with just £600 million of agreements from her visit
to China a year ago. One former Tory minister said the figure was a “deliberate
insult” by China.
Even once the big win is in the bag, there is the danger of it falling apart on
arrival. Carney announced Canada and China would expand visa-free travel, only
for Beijing’s ambassador to Ottawa to say that the move was not yet official.
Despite this, businesses have been keen on Starmer’s re-engagement.
Rain Newton-Smith, director-general of the Confederation of British Industry,
said firms are concerned about the dependence on Chinese rare earths but added:
“If you map supply chains from anywhere, the idea that you can decouple from
China is impossible. It’s about how that trade can be facilitated in the best
way.”
EMBASSY ROW
Even if Starmer gets his wins, this visit will bring controversies that (critics
say) show the asymmetry in Britain’s relationship with China. A tale of two
embassies serves as a good metaphor.
Britain finally approved plans last week for China’s new outpost in London,
despite a long row over national security. China held off formally confirming
Starmer’s visit until the London embassy decision was finalized, the first
person familiar with planning for the trip said. (Others point out Starmer would
not want to go until the issue was resolved.)
The result was a scramble in which executives were only formally invited a week
before take-off.
And Britain has not yet received approval to renovate its own embassy in
Beijing. Officials privately refer to the building as “falling down,” while one
person who has visited said construction materials were piled up against walls.
It is “crumbling,” added another U.K. official: “The walls have got cracks on
them, the wallpaper’s peeling off, it’s got damp patches.”
British officials refused to give any impression of a “quid pro quo” for the two
projects under the U.K.’s semi-judicial planning system. But that means much of
Whitehall still does not know if Britain’s embassy revamp in Beijing will be
approved, or held back until China’s project in London undergoes a further
review in the courts. U.K. officials are privately pressing their Chinese
counterparts to give the green light.
One of the people keenest on a breakthrough will be Britain’s new ambassador to
Beijing Peter Wilson, a career diplomat described by people who have met him as
“outstanding,” “super smart” and “very friendly.”
For Wilson, hosting Starmer will be one of his trickiest jobs yet.
The everyday precautions when doing business in China have made preparations for
this trip more intense. Government officials and corporate executives are
bringing secure devices and will have been briefed on the risk of eavesdropping
and honeytraps.
One member of Theresa May’s 2018 delegation to China recalled opening the door
of what they thought was their vehicle, only to see several people with headsets
on, listening carefully and typing. They compared it to a scene in a spy film.
Activists and MPs will put Starmer under pressure to raise human rights issues —
including what campaigners say is a genocide against the Uyghur people in
Xinjiang province — on a trip governed by strict protocol where one stray word
can derail a deal.
Pro-democracy publisher Jimmy Lai, who has British nationality, is facing
sentencing in Hong Kong imminently for national security offenses. During the
PM’s last meeting with Xi in 2024, Chinese officials bundled British journalists
out of the room when he raised the case. Campaigners had thought Lai’s
sentencing could take place this week.
All these factors mean tension in the British state — which has faced a tussle
between “securocrats” and departments pushing for growth — has been high ahead
of the trip. Government comments on China are workshopped carefully before
publication.
Earlier this month, Foreign Secretary Yvette Cooper told POLITICO her work on
Beijing involves looking at “transnational repression” and “espionage threats.”
But when Chancellor Rachel Reeves met China’s Finance Minister He Lifeng in
Davos last week to tee up Starmer’s visit, the U.K. Treasury did not publicize
the meeting — beyond a little-noticed photo on its Flickr account.
SLOW BOAT TO CHINA
Whatever the controversies, Labour’s China stance has been steadily taking shape
since before Starmer took office in 2024.
Labour drew inspiration from its sister party in Australia and the U.S.
Democrats, both of which had regular meetings with Beijing. Party aides argued
that after a brief “golden era” under Conservative PM David Cameron, Britain
engaged less with China than with the Soviet Union during the Cold War. The
result of Labour’s thinking was the policy of “three Cs” — “challenge, compete,
and cooperate.”
A procession of visits to Beijing followed, most notably Reeves last year,
culminating in Starmer’s trip. His National Security Adviser Jonathan Powell was
involved in planning across much of 2025, even travelling to meet China’s top
diplomat, Wang Yi, in November.
Starmer teed up this week’s visit with a December speech arguing the “binary”
view of China had persisted for too long. He promised to engage with Beijing
carefully while taking a “more transactional approach to pretty well
everything.”
The result was that this visit has long been locked in; just as Labour aides
argue the London embassy decision was set in train in 2018, when the Tory
government gave diplomatic consent for the site.
Labour ministers “just want to normalize” the fact of dealing with China, said
the senior Westminster figure quoted above. Newton-Smith added: “I think the
view is that the government’s engagement with eyes wide open is the right
strategy. And under the previous government, we did lose out.”
But for each person who praises the re-engagement, there are others who say it
has left Britain vulnerable while begging for scraps at China’s table. Hawks
argue the hard details behind the “three Cs” were long nebulous, while Labour’s
long-awaited “audit” of U.K.-China relations was delayed before being folded
briefly into a wider security document.
“Every single bad decision now can be traced back to the first six months,”
argued the third person familiar with planning quoted above. “They were
absolutely ill-prepared and made a series of decisions that have boxed them into
a corner.” They added: “The government lacks the killer instinct to deal with
China. It’s not in their DNA.”
Luke de Pulford, a human rights campaigner and director of the
Inter-Parliamentary Alliance on China, argued the Tories had engaged with China
— Foreign Secretary James Cleverly visited in 2023 — and Labour was simply going
much further.
“China is pursuing an enterprise to reshape the global order in its own image,
and to that end, to change our institutions and way of life to the extent that
they’re an obstacle to it,” he said. “That’s what they’re up to — and we keep
falling for it.”
END OF THE OLD ORDER?
His language may be less dramatic, but Starmer’s visit to China does have some
parallels with Canada. Carney’s trip was the first by a Canadian PM since 2017,
and he and Xi agreed a “new strategic partnership.”
Later at Davos, the Canadian PM talked of “the end of a pleasant fiction” and
warned multilateral institutions such as the United Nations are under threat.
One British industry figure who attended Davos said of Carney’s speech: “It was
great. Everyone was talking about it. Someone said to me that was the best and
most poignant speech they’d ever seen at the World Economic Forum. That may be a
little overblown, but I guess most of the speeches at the WEF are quite dull.”
The language used by Starmer, a former human rights lawyer devoted to
multilateralism, has not been totally dissimilar. Britain could no longer “look
only to international institutions to uphold our values and interests,” he said
in December. “We must do it ourselves through deals and alliances.”
But while some in the U.K. government privately agree with Carney’s point, the
real difference is the two men’s approach to Trump.
Starmer will temper his messaging carefully to avoid upsetting either his
Chinese hosts or the U.S., even as Trump throws semi-regular rocks at Britain.
To Peterson, this is unavoidable. “China, the U.S. and the EU are likely to
continue to dominate global economic growth for the foreseeable future,” she
said. “Starmer’s choice is not whether to engage, but how.”
Esther Webber contributed reporting.
LONDON — British ministers have been laying the ground for Keir Starmer’s
handshake with Xi Jinping in Beijing this week ever since Labour came to power.
In a series of behind-closed-door speeches in China and London, obtained by
POLITICO, ministers have sought to persuade Chinese and British officials,
academics and businesses that rebuilding the trade and investment relationship
is essential — even as economic security threats loom.
After a “Golden Era” in relations trumpeted by Tory Prime Minister David
Cameron, Britain’s once-close ties to the Asian superpower began to unravel in
the late 2010s. By 2019, Boris Johnson had frozen trade and investment talks
after a Beijing-led crackdown on Hong Kong’s democracy movement. At Donald
Trump’s insistence, Britain stripped Chinese telecoms giant Huawei from its
telecoms infrastructure over security concerns.
Starmer — who is expected to meet Xi on a high-stakes trip to Beijing this week
— set out to revive an economic relationship that had hit the rocks. The extent
of the reset undertaken by the PM’s cabinet is revealed in the series of
speeches by ministers instrumental to his China policy over the past year,
including Chancellor Rachel Reeves, then-Foreign Secretary David Lammy, Energy
Secretary Ed Miliband, and former Indo-Pacific, investment, city and trade
ministers.
Months before security officials completed an audit of Britain’s exposure to
Chinese interference last June, ministers were pushing for closer collaboration
between the two nations on energy and financial systems, and the eight sectors
of Labour’s industrial strategy.
“Six of those eight sectors have national security implications,” said a senior
industry representative, granted anonymity to speak freely about their
interactions with government. “When you speak to [the trade department] they
frame China as an opportunity. When you speak to the Foreign, Commonwealth and
Development Office, it’s a national security risk.”
While Starmer’s reset with China isn’t misguided, “I think we’ve got to be much
more hard headed about where we permit Chinese investment into the economy in
the future,” said Labour MP Liam Byrne, chair of the House of Commons Business
and Trade Committee.
Lawmakers on his committee are “just not convinced that the investment strategy
that is unfolding between the U.K. and China is strong enough for the future and
increased coercion risks,” he said.
As Trump’s tariffs bite, Beijing’s trade surplus is booming and “we’ve got to be
realistic that China is likely to double down on its Made in China approach and
target its export surplus at the U.K.,” Byrne said. China is the U.K.’s
fifth-largest trade partner, and data to June of last year show U.K. exports to
China dropping 10.4 percent year-on-year while imports rose 4.3 percent.
“That’s got the real potential to flood our markets with goods that are full of
Chinese subsidies, but it’s also got the potential to imperil key sectors of our
economy, in particular the energy system,” Byrne warned.
A U.K. government spokesperson said: “Since the election, the Government has
been consistently transparent about our approach to China – which we are clear
will be grounded in strength, clarity and sober realism.
“We will cooperate where we can and challenge where we must, never compromising
on our national security. We reject the old ‘hot and cold’ diplomacy that failed
to protect our interests or support our growth.”
While Zheng Zeguang’s speech was released online, the Foreign Office refused to
provide Catherine West’s own address when requested at the time. | Jordan
Pettitt/PA Images via Getty Images
CATHERINE WEST, INDO-PACIFIC MINISTER, SEPTEMBER 2024
Starmer’s ministers began resetting relations in earnest on the evening of Sept.
25, 2024 at the luxury Peninsula Hotel in London’s Belgravia, where rooms go for
£800 a night. Some 400 guests, including a combination of businesses, British
government and Chinese embassy officials, gathered to celebrate the 75th
anniversary of the People’s Republic of China — a milestone for Chinese
Communist Party (CCP) rule.
“I am honored to be invited to join your celebration this evening,” then
Indo-Pacific Minister Catherine West told the room, kicking off her keynote
following a speech by China’s ambassador to the U.K., Zheng Zeguang.
“Over the last 75 years, China’s growth has been exponential; in fields like
infrastructure, technology and innovation which have reverberated across the
globe,” West said, according to a Foreign Office briefing containing the speech
obtained through freedom of information law. “Both our countries have seen the
benefits of deepening our trade and economic ties.”
While London and Beijing won’t always see eye-to-eye, “the U.K. will cooperate
with China where we can. We recognise we will also compete in other areas — and
challenge where we need to,” West told the room, including 10 journalists from
Chinese media, including Xinhua, CGTN and China Daily.
While Zheng’s speech was released online, the Foreign Office refused to provide
West’s own address when requested at the time. Freedom of information officers
later provided a redacted briefing “to protect information that would be likely
to prejudice relations.”
DAVID LAMMY, FOREIGN SECRETARY, OCTOBER 2024
As foreign secretary, David Lammy made his first official overseas visit in the
job with a two-day trip to Beijing and Shanghai. He met Chinese Foreign Minister
Wang Yi in Beijing on Oct. 18, a few weeks before U.S. President Donald Trump’s
re-election. Britain and China’s top diplomats discussed climate change, trade
and global foreign policy challenges.
“I met with Director Wang Yi yesterday and raised market access issues with him
directly,” Lammy told a roundtable of British businesses at Shanghai’s Regent On
The Bund hotel the following morning, noting that he hoped greater dialogue
between the two nations would break down trade barriers.
“At the same time, I remain committed to protecting the U.K.’s national
security,” Lammy said. “In most sectors of the economy, China brings
opportunities through trade and investment, and this is where continued
collaboration is of great importance to me,” he told firms. Freedom of
information officers redacted portions of Lammy’s speech so it wouldn’t
“prejudice relations” with China.
Later that evening, the then-foreign secretary gave a speech at the Jean
Nouvel-designed Pudong Museum of Art to 200 business, education, arts and
culture representatives.
China is “the world’s biggest emitter” of CO2, Lammy told them in his prepared
remarks obtained by freedom of information law. “But also the world’s biggest
producer of renewable energy. This is a prime example of why I was keen to visit
China this week. And why this government is committed to a long-term, strategic
approach to relations.”
Shanghai continues “to play a key role in trade and investment links with the
rest of the world as well,” he said, pointing to the “single biggest” ever
British investment in China: INEOS Group’s $800 million plastics plant in
Zhejiang.
“We welcome Chinese investment for clear mutual benefit the other way too,”
Lammy said. “This is particularly the case in clean energy, where we are both
already offshore wind powerhouses and the costs of rolling out more clean energy
are falling rapidly.”
“We welcome Chinese investment for clear mutual benefit the other way too,”
David Lammy said. | Adam Vaughan/EPA
POPPY GUSTAFSSON, INVESTMENT MINISTER, NOVEMBER 2024
Just days after Starmer and President Xi met for the first time at the G20 that
November, Poppy Gustafsson, then the British investment minister, told a
U.K.-China trade event at a luxury hotel on Mayfair’s Park Lane that “we want to
open the door to more investment in our banking and insurance industries.”
The event, co-hosted by the Bank of China UK and attended by Chinese Ambassador
Zheng Zeguang and 400 guests, including the U.K. heads of several major China
business and financial institutions, is considered the “main forum for
U.K.-China business discussion,” according to a briefing package prepared for
Gustafsson.
“We want to see more green initiatives like Red Rock Renewables who are
unlocking hundreds of megawatts in new capacity at wind farms off the coast of
Scotland — boosting this Government’s mission to become a clean energy
superpower by 2030,” Gustafsson told attendees, pointing to the project owned
by China’s State Development and Investment Group.
The number one objective for her speech, officials instructed the minister, was
to “affirm the importance of engaging with China on trade and investment and
cooperating on shared multilateral interests.”
And she was told to “welcome Chinese investment which supports U.K. growth and
the domestic industry through increased exports and wider investment across the
economy and in the Industrial Strategy priority sectors.” The Chinese
government published a readout of Gustafsson and Zheng’s remarks.
RACHEL REEVES, CHANCELLOR, JANUARY 2025
By Jan. 11 last year, Chancellor Rachel Reeves was in Beijing with British
financial and professional services giants like Abrdn, Standard Chartered, KPMG,
the London Stock Exchange, Barclays and Bank of England boss Andrew Bailey in
tow. She was there to meet with China’s Vice-Premier He Lifeng to reopen one of
the key financial and investment talks with Beijing Boris Johnson froze in 2019.
Before Reeves and He sat down for the China-U.K. Economic and Financial
Dialogue, Britain’s chancellor delivered an address alongside the vice-premier
to kick off a parallel summit for British and Chinese financial services firms,
according to an agenda for the summit shared with POLITICO. Reeves was also due
to attend a dinner the evening of the EFD and then joined a business delegation
travelling to Shanghai where she held a series of roundtables.
Releasing any of her remarks from these events through freedom of information
law “would be likely to prejudice” relations with China, the Treasury said. “It
is crucial that HM Treasury does not compromise the U.K.’s interests in China.”
Reeves’ visit to China paved the way for the revival of a long-dormant series of
high-level talks to line up trade and investment wins, including the China-U.K.
Energy Dialogue in March and U.K.-China Joint Economic and Trade Commission
(JETCO) last September.
EMMA REYNOLDS, CITY MINISTER, MARCH 2025
“Growth is the U.K. government’s number one mission. It is the foundation of
everything else we hope to achieve in the years ahead. We recognise that China
will play a very important part in this,” Starmer’s then-City Minister Emma
Reynolds told the closed-door U.K.-China Business Forum in central London early
last March.
Reeves’ restart of trade and investment talks “agreed a series of commitments
that will deliver £600 million for British businesses,” Reynolds told the
gathering, which included Chinese electric vehicle firm BYD, HSBC, Standard
Chartered, KPMG and others. This would be achieved by “enhancing links between
our financial markets,” she said.
“As the world’s most connected international financial center and home to
world-leading financial services firms, the City of London is the gateway of
choice for Chinese financial institutions looking to expand their global reach,”
Reynolds said.
Ed Miliband traveled to Beijing in mid-March for the first China-U.K. Energy
Dialogue since 2019. | Tolga Akmen/EPA
ED MILIBAND, ENERGY AND CLIMATE CHANGE SECRETARY, MARCH 2025
With Starmer’s Chinese reset in full swing, Energy Secretary Ed Miliband
traveled to Beijing in mid-March for the first China-U.K. Energy Dialogue since
2019.
Britain’s energy chief wouldn’t gloss over reports of human rights violations in
China’s solar supply chain — on which the U.K. is deeply reliant for delivering
its lofty renewables goals — when he met with China’s Vice Premier Ding
Xuexiang, a British government official said at the time. “We maybe agree to
disagree on some things,” they said.
But the U.K. faces “a clean energy imperative,” Miliband told students and
professors during a lecture at Beijing’s elite Tsinghua University, which counts
Xi Jinping and former Chinese President Hu Jintao as alumni. “The demands of
energy security, affordability and sustainability now all point in the same
direction: investing in clean energy at speed and at scale,” Miliband said,
stressing the need for deeper U.K.-China collaboration as the U.K. government
reaches towards “delivering a clean power system by 2030.”
“In the eight months since our government came to office we have been speeding
ahead on offshore wind, onshore wind, solar, nuclear, hydrogen and [Carbon
Capture, Usage, and Storage],” Britain’s energy chief said. “Renewables are now
the cheapest form of power to build and operate — and of course, much of this
reflects technological developments driven by what is happening here in China.”
“The U.K. and China share a recognition of the urgency of acting on the climate
crisis in our own countries and accelerating this transition around the world —
and we must work together to do so,” Miliband said, in his remarks obtained
through freedom of information law.
DOUGLAS ALEXANDER, ECONOMIC SECURITY MINISTER, APRIL 2025
During a trip to China in April last year, then-Trade Minister Douglas Alexander
met his counterpart to prepare to relaunch key trade and investment talks. The
trip wasn’t publicized by the U.K. side.
According to a Chinese government readout, the China-UK Joint Economic and Trade
Commission would promote “cooperation in trade and investment, and industrial
and supply chains” between Britain’s trade secretary and his Chinese equivalent.
After meeting Vice Minister and Deputy China International Trade Representative
Ling Ji, Minister Alexander gave a speech at China’s largest consumer goods
expo near the country’s southernmost point on the island province of Hainan.
Alexander extended his “sincere thanks” to China’s Ministry of Commerce and the
Hainan Provincial Government “for inviting the U.K. to be the country of honour
at this year’s expo.”
“We must speak often and candidly about areas of cooperation and, yes, of
contention too, where there are issues on which we disagree,” the trade policy
and economic security minister said, according to a redacted copy of his speech
obtained under freedom of information law.
“We are seeing joint ventures and collaboration between Chinese and U.K. firms
on a whole host of different areas … in renewable energy, in consumer goods, and
in banking and finance,” Alexander later told some of the 27 globally renowned
British retailers, including Wedgwood, in another speech during the U.K.
pavilion opening ceremony.
“We are optimistic about the potential for deeper trade and investment
cooperation — about the benefits this will bring to the businesses showcasing
here, and those operating throughout China’s expansive market.”
LONDON — Westminster discourse was blessed with a host of new words and phrases
during a tumultuous 2025 — and some of them even made sense.
Keir Starmer got to fight with tech bro Elon Musk, schmooze Donald Trump, endure
frustration from his MPs over Labour’s dreadful polling, reshuffle his
government, and preside over a stagnant economy — all while working out
a “vision” some 18 months into office.
As 2026 screams into view, POLITICO has looked back over the year and picked out
all the weird phrases we’d rather forget.
1. Coalition of the willing: The body of nations that sprang up to support
Ukraine as U.S. backing looked dicey. Defined by their “vital,” “urgent” and
“pivotal” meetings, but often challenged by an unwilling dude across the pond.
2. Smorgasbord: Sweden’s given us IKEA, ABBA — and now the best way to explain
an unsatisfying mix of tax rises. Thanks, chancellor!
3. AI Opportunities Action Plan: Never has a government announcement contained
so many nouns.
4. AI MP: Why bother with constituency casework when ChatGPT’s around? Labour MP
Mark Sewards bagged some help from LLMs … with mixed results.
5. “Beautiful accent”: Trump’s verdict on Starmer’s voice as the unlikely
bromance blossomed.
6. Rent license: Everyone pretended to know about housing law as Chancellor
Rachel Reeves faced scrutiny for not having one of these when renting out the
family home.
7. Rod fishing license: One for the real hardcore license fans. Then-Foreign
Secretary David Lammy faced questions for fishing with U.S. Vice President JD
Vance without the right paperwork. In a totally unconnected event, he was
reshuffled to the justice department shortly after.
8. Board of Peace: Tony Blair was on the list of people to preside over a
post-war Gaza … until he very much wasn’t.
9. Golden economic rule: The Conservatives’ shiny and instantly forgettable plan
to restore credibility in managing the public finances. Perhaps the No. 1 rule
should have been keeping Liz Truss out of No. 10?
10. Lawyer brain: Starmer was frequently accused of acting like a lawyer, not a
leader. At least he had a fixed term back when he was chief prosecutor.
11. Liberation Day: Trump’s big old chart slapped global tariffs on allies and
sent Whitehall into a tailspin … before a TACO (Trump Always Chickens Out)
retreat on some of them.
12. The Andrew formerly known as Prince: Andrew Mountbatten-Windsor had to
settle for a hyphenated surname after outrage about his friendship with the late
convicted sex offender Jeffrey Epstein.
13. Raise the colors: Politicians spent the summer showing how much they loved
flags as Brits — including organized far-right groups — plastered the Union Jack
on every lamppost and roundabout in sight.
14. Lucy Listens: Lucy Powell decided the best way to recover from getting
sacked from government was to run for Labour deputy leader, win, and hear
endlessly from irate Labour members.
15. Joe Marler: Health Secretary Wes Streeting compared himself to a rugby
player from the Celebrity Traitors after he was accused of plotting to oust
Starmer. Hanging out in a Scottish castle could be quite cushy if the
running-for-PM thing doesn’t work out.
16. Driving the DLR: Starmer’s premiership was compared to steering the, er,
driverless part of Transport for London.
17. Double Contributions Convention: National insurance became exciting for a
brief second amid a row about the India trade deal. Let’s never make that
mistake again.
18. Disruptors: What Starmer wants from his ministers. Alas, they slightly
misinterpreted the memo and enjoyed disrupting his leadership instead of the
Whitehall status quo.
19. Build Baby Build: Housing Secretary Steve Reed not only mimicked Trump’s
words but also donned a red baseball cap. The merch was a treat at Labour
conference, but it was all a bit cringe.
20. Trigger Me Timbers: Leaks from this imaginatively-named Labour WhatsApp
group saw two MPs suspended for vile language. Remember, assume everything in a
group is public.
21. Humphrey: Obviously the best-named AI tool ever, the government’s own tech
overlord paid tribute to that most conniving of civil servants in the classic
BBC sitcom “Yes, Minister.”
21. Humphrey: Obviously, the best-named AI tool ever, the government’s own tech
overlord paid tribute to that most conniving of civil servants in classic BBC
sitcom “Yes, Minister.” | David Zorrakino/Europa Press via Getty Images
22. Right to Try: A phrase describing a new guarantee for people entering work —
and which might double up as a stirring campaign slogan for the PM.
23. Patriotic renewal: Get those flags out again as No. 10 presses the jargon
button to describe what this whole government thing is about.
24. Thatcher Fest: The celebrations marking the centenary of the Iron Lady’s
birth knew no bounds.
25. One in, one out: Britain and France struck a treaty for small boat crossings
— until one returned migrant recrossed the English Channel to Blighty.
26. Zacktavist: A new generation of Greens got behind “eco-populist” leader Zack
Polanksi — and could treat themselves to a mug with his face on for £7 a pop.
27. Yantar: Russia made its meddling against Britain known by deploying a spy
ship into territorial waters … although it failed to remain incognito.
28. Two up, two down: Chancellor Rachel Reeves mooted increasing income tax by
2p and cutting national insurance by 2p … before (probably) realizing it would
mark the end of her time in the Treasury.
29. Island of strangers: The PM channeled Reform with a speech on migration
featuring this phrase. It was compared to former Tory MP Enoch Powell’s infamous
“Rivers of Blood” speech … and Starmer later retracted the whole thing.
30. Bob Vylan: A previously obscure rap duo was thrust into the spotlight after
calling for “death, death to the IDF” [Israel Defence Forces] at Glastonbury.
The BBC came under fire, because of course it did.
31. Persistent knobheadery: That’s one way for a Labour source to justify
suspending the whip from four MPs.
32. Sexist boys’ club: Setting up a political party is harder than it looks.
Who’d have thought it? Ex-Labour MP Zarah Sultana’s tough words for her fellow
independent MPs as the flailing Your Party launched meant some of them left
anyway. All’s fair in love and war.
33. F**king suck it up: Running a council is pretty tricky. Reform’s Kent County
Council Leader Linden Kemkaran told her fellow councilors they’d have to cope
with tough decisions in these colorful terms.
Running a council is pretty tricky. Reform’s Kent County Council Leader Linden
Kemkaran told her fellow councilors they’d have to cope with tricky decisions in
these colorful terms. | Gareth Fuller/PA Images via Getty Images
34. Three Pads Rayner: Angela Rayner’s tenure as deputy PM and, erm, housing
secretary came to an abrupt end after she failed to pay the correct amount of
property tax — but not before earning this moniker.
35. Further and faster: How did the government react to its local elections
shellacking? By vowing to carry on in exactly the same way, albeit more
intensely.
36. Phase Two: Starmer’s much-hyped fall reset of his government was followed by
one calamity after another. Not too late for Phase Three!
37. Danish model: Ministers decided migration could be solved by copying
Copenhagen. Anything for a trip to the continent.
38. The Liz Truss Show: Britain’s shortest-serving former prime minister used
extra time on her hands to woo MAGAland with yet another political podcast.
Cannot be unseen.
39. I rise to speak: MPs deploying this phrase gave an instant red flag that
they may, just may, have used AI to help write their speeches.
40. Judge Plus: Labour MP Kim Leadbeater’s assurance that her assisted dying
bill still had plenty of legal safeguards, despite a High Court judge getting
dropped from the process.
41. Pride in Place: After Boris Johnson’s “leveling up” (RIP), Labour tries a
similar approach in all but name.
42. Waste Files: Elon Musk inspired a host of U.K. DOGE copycats keen to slash
complex government budgets from their armchairs.
43. Project Chainsaw: No, Starmer isn’t suddenly a Javier Milei fan, but his
government wanted to reshape the state — with some bandying about this subtle,
civil service-spooking nickname.
44. Global headwinds: The ultimate euphemism for how the orange-colored elephant
in the room changed everything.
45. Pan-Euro-Mediterranean Convention: Want Britain closer to the EU? Choose a
trade agreement guaranteed to send even the most ardent Europhile to sleep.
President Trump’s trade wars caused global headwinds throughout the year. |
Andrew Caballero-Reynolds/AFP via Getty Images
46. Headphone dodgers: A nuisance to everyone, the Lib Dems went full throttle
by pledging to fine the public transport irritants £1,000. It’s a wonder the
party isn’t leading the polls.
47. StormShroud drones: All wars create an opportunity for futuristic tech that
hopefully does what it says on the tin.
48. Return hubs: Ministers insist migration definitely isn’t getting outsourced
to other countries by mooting third-party “processing” … something Albania won’t
even take part in. See also: Deport Now, Appeal Later.
49. Far-right bandwagon: Starmer’s row with Musk reached a crescendo with the
PM’s phrase lobbed at some proponents of an inquiry into grooming gangs
operating in the U.K.
50. Impossible trilemma: Ahead of the budget, a top think tank warned that
Reeves faced the unenviable task of meeting fiscal targets while sticking to
spending promises and not raising taxes. No pressure.
51. Chief Secretary to the Prime Minister: Darren Jones’ prefect vibes were
rewarded with a brand spanking new gig in the pre-shuffle right at the start of
Phase Two.
52. Growth people feel in their pockets: One No. 10 press officer may have
collected their P45 after publishing *that* press release.
53. Mainstream: This totally normal, nothing-to-see-here, soft-left Labour group
definitely isn’t a vehicle for Andy Burnham’s return to Westminster.
54. Plastic patriots/plastic progressives: The synthetic material really got a
kicking from Labour, who deployed the terms to slam Reform and the Greens
respectively. Let’s hope voters have reusable bags.
55. Quint: Five lucky people (Starmer, Reeves, Lammy, Jones and Pat McFadden)
who apparently decide how government operates. Great job, guys!
56. Hard bastard: The PM’s best effort to show he was “tough enough,” Ed
Miliband-style. We all know how that ended.
57. Global Progress Action Summit: Progressives met in a desperate attempt to
figure out how to avoid a trouncing from populists. More updates as we get them.
58. Contribution: Reeves’ framing of higher taxes, carefully sidestepping the
fact that taxes aren’t optional.
59. Maintenance department: Deffo-not-future Labour leadership contender Wes
Streeting’s description of how the party presents itself publicly. Stirring
stuff.
60. Terminator: Home Secretary Shabana Mahmood earned an Arnie-inspired new
nickname as she tried to show Labour is really, really tough on migration,
honest.
61. Reverse Midas Touch: Anything the PM touches, including ID cards, is hit by
this tragic affliction, according to his critics.
62. V levels: The natural successor to A and T level educational qualifications.
Just a matter of time before there’s one for each letter of the alphabet.
63. Culturally coherent: Tory rising star Katie Lam’s justification for
deporting legal migrants got her into some hot water.
64. 24/7 circus of sh*t: One former Tory aide’s pithy description of the Home
Office. Who are the clowns?
65. Six seven: Nobody over the age of 11 understands this meme — yet the PM
unleashed havoc in a classroom by joining in.
66. Civilizational erasure: America’s dystopian portrayal of what Europe is
facing probably won’t feature in many tourist brochures.
67. Turning renewal into reality: Starmer’s ambition for next year in his final
Cabinet meeting of 2025. Bookmark that one.
Elisabeth Braw is a senior fellow at the Atlantic Council, the author of the
award-winning “Goodbye Globalization” and a regular columnist for POLITICO.
It was hardly the kind of peace and cheer one hopes to see leading up to
Christmas. But on Dec. 7, the second Sunday of Advent, a collection of telecoms
masts in Sweden were the site of a strange scene, as a foreign citizen turned up
and began taking photographs.
The case became widely known two days later, when the CEO of Teracom, a
state-owned Swedish telecom and data services provider, posted an unusual update
on LinkedIn: Company employees and contracted security had helped detain a
foreign citizen, CEO Johan Petersson reported. They had spotted the foreigner
taking pictures of a group of Teracom masts, which are sensitive installations
clearly marked with “no trespassing” signs. After being alerted by the
employees, police had arrested the intruder. “Fast, resolute and completely in
line with the operative capabilities required to protect Sweden’s critical
infrastructure,” Petersson wrote.
But his post didn’t end there: “Teracom continually experiences similar events,”
he noted. “We don’t just deliver robust nets — we take full responsibility for
keeping them secure and accessible around the clock. This is total defense in
practice.”
That’s a lot of troubling news in one message: a foreign citizen intruding into
an area closed to the public to take photos of crucial communications masts, and
the fact that this isn’t a unique occurrence. Indeed, earlier this year, Swedish
authorities announced they had discovered a string of some 30 cases of sabotage
against telecoms and data masts in the country.
How many more potential saboteurs haven’t been caught? It’s a frightening
question and, naturally, one we don’t have an answer to.
It’s not just communications masts that are being targeted. In the past couple
years, there have been fires set in shopping malls and warehouses in big cities.
There have been suspicious drone sightings near defense manufacturing sites and,
infamously, airports. Between January and Nov. 19 of this year, there were more
than 1,072 incidents involving 1,955 drones in Europe, and as a group of German
journalism students have established, some of those drones were launched from
Russian-linked ships. And of course, there has been suspicious damage to
undersea cables and pipelines in the Baltic Sea and off the coast of Taiwan.
I’ve written before in this publication that Russia’s goal with such subversive
operations may be to bleed our companies dry, and that China seems to be
pursuing the same objective vis-à-vis certain countries. But when it comes to
critical national infrastructure — in which I could include institutions like
supermarkets — we need them to work no matter what. Imagine going a day or two
or three without being able to buy food, and you’ll see what I mean.
The upside to Teracom’s most recent scare was that the company was prepared and
ultimately lost no money. Because its staff and security guards were alert, the
company prevented any damage to their masts and operations. In fact, with the
perpetrator arrested — whether prosecutors will decide to charge him remains to
be seen — Teracom’s staff may well have averted possible damage to other
businesses too.
Moving forward, companies would do well to train their staff to be similarly
alert when it comes to saboteurs and reconnaissance operators in different
guises. We can’t know exactly what kind of subversive activities will be
directed against our societies, but companies can teach their employees what to
look for. If someone suddenly starts taking pictures of something only a
saboteur would be interested in, that’s a red flag.
Indeed, boards could also start requiring company staff to become more vigilant.
If alertness can make the difference between relatively smooth sailing and
considerable losses — or intense tangling with insurers — in these
geopolitically turbulent times, few boards would ignore it. And being able to
demonstrate such preparedness is something companies could highlight in
speeches, media interviews and, naturally, their annual reports.
Insurers, in turn, could start requiring such training for these very reasons.
After serious cyberattacks first took off, insurers paid out on their policies
for a long time, until they realized they should start obliging the
organizations they insure to demonstrate serious protections in order to qualify
for insurance. Insurers may soon decide to introduce such conditions for
coverage of physical attacks too. Even without pressure from boards or insurers,
considering the risk of sabotage directed at companies, it would be positively
negligent not to train one’s staff accordingly.
Meanwhile, some governments have understandably introduced resilience
requirements for companies that operate crucial national infrastructure. Under
Finland’s CER Act, for instance, “critical entities must carry out a risk
assessment, draw up a resilience plan and take any necessary measures.”
The social contract in liberal democracies is that we willingly give up some of
our power to those we elect to govern us. These representatives are ultimately
in charge of the state apparatus, and in exchange, we pay taxes and obey the
law. But that social contract doesn’t completely absolve us from our
responsibility toward the greater good. That’s why an increasing number of
European countries are obliging 19-year-olds to do military service.
When crises approach, we all still have a part to play. Helping spot incidents
and alerting the authorities is everyone’s responsibility. Because the current
geopolitical turbulence has followed such a long period of harmony, it’s hard to
crank up the gears of societal responsibility again. And truthfully, in some
countries, those gears never worked particularly well to begin with.
But for companies, however, stepping up to the plate isn’t just a matter of
doing the right thing — it’s a matter of helping themselves. Back in the day,
the saying went that what was good for Volvo was good for Sweden, and what was
good for General Motors was good for the U.S. Today, when companies do the right
thing for their home countries, they similarly benefit too.
Now, let’s get those alertness courses going.
One trillion US dollars of gross domestic product (GDP) has been surpassed.
Poland has entered the ranks of the world’s 20 largest economies, symbolically
ending a phase of chasing the West that has lasted more than three decades. The
Polish Development Fund’s (PFR) new strategy seeks to address the challenge of
avoiding the medium-level development trap and transitioning from the role of
subcontractor to that of investor.
This year marks a turning point in Polish economic history. After years of
transformation, reforms and overcoming civilizational deficits, Poland has
reached a point that the generation of ‘89 could only dream of. GDP crossed the
symbolic barrier of US$1 trillion, and we proudly enter the exclusive club of
the world’s 20 largest economies. Diversified Polish exports are breaking
records, and innovative companies are conquering global markets. Sound like a
happy ending? Not necessarily.
Via PFR
Investing for future generations
Poland’s past success invites tougher challenges in a brutal world. The cheap
labor growth model is dead; demographics are relentless. PFR analyses highlight
declining employment as a core issue — without bold changes, stagnation looms.
Piotr Matczuk, PFR president, says Poland needs an impetus for resilience,
innovation and growth. PFR’s 2026-2030 strategy is that roadmap, urging a shift
to high gear. On Dec. 10, it unveiled investments for future generations.
Geopolitics enters the balance sheet
PFR’s strategy marks a paradigm shift: integrating economics with security.
Business now anchors state security, with “economic and defence resilience” as a
core pillar — viewing security spending as essential insurance, not cost.
> The PFR’s strategy is clear: the competitiveness of the Polish economy depends
> directly on access to cheap and clean energy.
PFR has invested in WB Electronics, Poland’s defense leader in command systems
and drones. It expands beyond arms via dual-use tech: algorithms, encrypted
communications and autonomous drones often from civilian startups. This spring’s
PFR Deep Tech program backs venture capital (VC) for scaling these firms; IDA
targets innovations for logistics, cybersecurity and future defense.
The focus is Poland’s technological sovereignty. Controlling key security links
— from ammo to artificial intelligence — ensures economic maturity resilient to
geopolitical shocks.
> Poland needs a boost to our resilience, innovation and growth rate. That is
> why the new strategy emphasizes investment in new technologies, infrastructure
> and the financial security of Poles. We want the PFR to be a catalyst for
> change and a partner of choice — an institution that invests for future
> generations, sets quality standards in development financing and supports
> Polish entrepreneurs in boosting their international presence.
>
> Piotr Matczuk, President, PFR
Piotr Matczuk, President, PFR / Via PFR
Energy: to be or not to be for the industry
If defense is the shield, then energy is the bloodstream. The PFR’s strategy is
clear: the competitiveness of the Polish economy depends directly on access to
cheap and clean energy. Without accelerating the transformation, Polish
companies, instead of increasing their share in foreign markets, may lose their
position. This is why the fund wants to enter the game as an investor where the
risks are high, but the stakes are even higher — into an investment gap that the
commercial market alone will not fill.
The concept of local content, in other words the participation of domestic
companies in the supply chain, is key to the new strategy.
This is where the circle closes. The Baltic Hub is not just a container
terminal. Investment in the T5 installation terminal is the foundation, as the
Polish offshore will not be built with the appropriate participation of a
domestic port. This is a classic example of how the PFR works: building ‘hard’
infrastructure that becomes a springboard for a whole new sector of the
economy.
The end of being a subcontractor: capital emancipation
Taking inspiration from, among others, France’s Tibi Initiative, in mid-November
2025 the Polish minister of finance and economy, Andrzej Domański, announced the
Innovate Poland program. The PFR plays a leading role in what will be the
largest initiative in the history of the Polish economy to invest in innovative
projects. Thanks to cooperation with Bank Gospodarstwa Krajowego (BGK), PZU and
the European Investment Fund, Innovate Poland is already worth 4 billion złoty,
and the program multiplier may reach as much as 3-4. The combined development
and private capital will be invested by experienced VC and private equity funds.
The aim is to further Poland’s economic development — driven by innovative
companies that make a profit. In the first phase, it is expected to finance up
to 250 companies at various stages of development.
Via PFR
The expansion of Polish companies abroad is also part of the effort for
advancement in the global hierarchy. Their support is one of the pillars of the
new PFR strategy. For three decades, Poland has played the role of the assembly
plant of Europe — solid, cheap and hard-working. However, the highest margins,
flowing from having a global brand and market control, went overseas. Polish
companies need to stop being anonymous subcontractors and become owners of
assets in foreign markets.
Here, the PFR acts as financial leverage. The support for the Trend Group is a
prime example of this maturing process. This is a transaction with a symbolic
dimension: it reverses the investment vector of the 1990s, when German capital
was consolidating Polish assets. Today, it is Polish entities that are
increasingly becoming leaders in offering industrial solutions in the European
Union.
> Polish companies need to stop being anonymous subcontractors and become owners
> of assets in foreign markets.
However, these ambitions extend beyond the Western direction. The strategy
strongly emphasizes Poland’s role in the future reconstruction of Ukraine and
the consolidation of the Central and Eastern European region. The involvement of
the PFR in the operations of the Euvic Group on the Ukrainian IT market is a
good example. In the digital world, big players have more power, and the PFR
strives to ensure that the decision-making centers of those growing giants
remain in Poland.
Most importantly, Polish businesses are no longer alone in this struggle. The
strategy institutionalizes the concept of ‘Team Poland’. In this initiative, the
PFR provides capital; BGK, a state development bank, offers debt solutions; the
KUKE, an insurance company, insures the risk; and the Polish Investment and
Trade Agency provides promotional support. Acting like a one-stop shop, all
these institutions enable Polish capital to compete as a partner in the global
league. This is part of the Polish government’s modern economic diplomacy
strategy, led by Domański.
Capital for generations. From an employee to a stakeholder in the economy
All grand plans need fuel. Mature economies like the Netherlands and the United
Kingdom harness citizens’ savings via capital markets. PFR’s strategy boldly
demands Poland’s success create generational wealth: turning the average
Kowalski from an employee into a stakeholder.
Diagnosis is brutal: Poles save little (6.38 percent compared with the EU’s
14.32 percent in Q1 2024) and inefficiently, favoring low-interest deposits.
Employee Capital Plans (PPK) drive cultural change. Hard data demonstrate this:
67 percent average returns over five years crush traditional savings. It’s a
virtuous cycle — PPK capital feeds stock markets, finances company growth and
loops profits back to future pensioners.
An architect, not a firefighter
The new PFR strategy for 2026-30 is a clear signal of a paradigm shift. The
company, which many Polish entrepreneurs still see as a firefighter
extinguishing the flames of the pandemic with billions from the Anti-Covid
Financial Shields, is definitively taking off its helmet and putting on an
engineer’s hard hat. It is shifting from interventionist to creator mode,
abandoning the role of ‘night watchman’ of the Polish economy to that of its
‘chief architect’.
This is an ambitious attempt to establish an institution in Poland that not only
provides capital, but also actively shapes the country’s economic landscape,
setting the direction for development for decades to come.
The Bank of England is set to cut interest rates on Thursday, after
lower-than-expected inflation figures and signs of a weakening jobs market.
Headline inflation slowed to 3.2 percent in November, from 3.6 in October, the
Office for National Statistics said on Wednesday. That was the lowest since
March and a much clearer drop than predicted by analysts, who had forecast a
rate of 3.5 percent.
“A cut tomorrow should be a no-brainer, with another to follow in February,”
Peel Hunt chief economist Kallum Pickering said via social media, pointing to
“No growth since summer, a labor market that is rapidly cooling, and a big
downside surprise to inflation across the board in November.”
The news comes only a day after labor market data from the ONS showed the
unemployment rate rising to its highest level in over four years in October.
The economy has struggled for growth in the second half of this year, after a
sugar rush in the first quarter in which exporters rushed to get their goods to
the U.S. before President Donald Trump could impose trade tariffs. The hangover
from that — and the lingering uncertainty over the global economic outlook
caused by Trump’s trade policy — has been severe.
But at the same time, an unwelcome rise in inflation has stopped the Bank of
England from cutting interest rates more quickly to support the economy. A raft
of hikes in government- controlled prices such as energy bills and rail fares
meant that inflation was rising for much of the year, leading it to peak at 3.8
percent in September. That was also partly due to companies passing on increases
in labor costs due to a 6.7 percent hike in the National Living Wage and an
increase in employers’ National Insurance contributions.
Panmure Liberum chief economist Simon French said the wide range of goods and
services now showing softening price trends showed that demand is now so weak
that companies are having to absorb those price increases themselves instead.
The government will be particularly relieved to have seen politically sensitive
food prices, which have been a constant bugbear for the last couple of years,
making the biggest contribution to the slowdown in inflation in November. Prices
for clothing and footwear and for discretionary services such as restaurants and
hotels also fell slightly.
“As Christmas gifts go, this is a most welcome one,” said Danni Hewson, head of
financial analysis at AJ Bell. “It’s the time of year when people put a few more
things in their supermarket trolley, so news that food and alcohol inflation has
fallen will be a boon for cash-strapped families.”
The Bank has consistently said that inflation would fall once those factors
passed out of the annual calculations, given that the underlying weakness of the
economy. However, with the worst bout of inflation in half a century still fresh
in everyone’s minds, it has been forced to keep the pace of policy easing
“gradual and cautious”.
Peel Hunt’s Pickering said that the scale of the slowdown could be enough to
have some members of the Monetary Policy Committee voting for a half-point cut
in the Bank Rate to 3.5 percent on Thursday. However, the consensus remains for
a quarter-point cut to 3.75 percent.
The pound still fell over half a cent against the dollar in response to the
numbers, as traders penciled in more scope for easing next year, while the
government’s borrowing costs in the bond market also fell.
This article is also available in French and German.
President Donald Trump denounced Europe as a “decaying” group of nations led by
“weak” people in an interview with POLITICO, belittling the traditional U.S.
allies for failing to control migration and end the Russia-Ukraine war, and
signaling that he would endorse European political candidates aligned with his
own vision for the continent.
The broadside attack against European political leadership represents the
president’s most virulent denunciation to date of these Western democracies,
threatening a decisive rupture with countries like France and Germany that
already have deeply strained relations with the Trump administration.
“I think they’re weak,” Trump said of Europe’s political leaders. “But I also
think that they want to be so politically correct.”
“I think they don’t know what to do,” he added. “Europe doesn’t know what to
do.”
Trump matched that blunt, even abrasive, candor on European affairs with a
sequence of stark pronouncements on matters closer to home: He said he would
make support for immediately slashing interest rates a litmus test in his choice
of a new Federal Reserve chair. He said he could extend anti-drug military
operations to Mexico and Colombia. And Trump urged conservative Supreme Court
Justices Samuel Alito and Clarence Thomas, both in their 70s, to stay on the
bench.
Trump’s comments about Europe come at an especially precarious moment in the
negotiations to end Russia’s war in Ukraine, as European leaders express
intensifying alarm that Trump may abandon Ukraine and its continental allies to
Russian aggression. In the interview, Trump offered no reassurance to Europeans
on that score and declared that Russia was obviously in a stronger position than
Ukraine.
Trump spoke on Monday at the White House with POLITICO’s Dasha Burns for a
special episode of The Conversation. POLITICO on Tuesday named Trump the most
influential figure shaping European politics in the year ahead, a recognition
previously conferred on leaders including Ukrainian President Volodymyr
Zelenskyy, Italian Prime Minister Giorgia Meloni and Hungarian Prime Minister
Viktor Orbán.
Trump’s confident commentary on Europe presented a sharp contrast with some of
his remarks on domestic matters in the interview. The president and his party
have faced a series of electoral setbacks and spiraling dysfunction in Congress
this fall as voters rebel against the high cost of living. Trump has struggled
to deliver a message to meet that new reality: In the interview, he graded the
economy’s performance as an “A-plus-plus-plus-plus-plus,” insisted that prices
were falling across the board and declined to outline a specific remedy for
imminent spikes in health care premiums.
Even amid growing turbulence at home, however, Trump remains a singular figure
in international politics.
In recent days, European capitals have shuddered with dismay at the release of
Trump’s new National Security Strategy document, a highly provocative manifesto
that cast the Trump administration in opposition to the mainstream European
political establishment and vowed to “cultivate resistance” to the European
status quo on immigration and other politically volatile issues.
In the interview, Trump amplified that worldview, describing cities like London
and Paris as creaking under the burden of migration from the Middle East and
Africa. Without a change in border policy, Trump said, some European states
“will not be viable countries any longer.”
Using highly incendiary language, Trump singled out London’s left-wing mayor,
Sadiq Khan, the son of Pakistani immigrants and the city’s first Muslim mayor,
as a “disaster” and blamed his election on immigration: “He gets elected because
so many people have come in. They vote for him now.”
The president of the European Council, António Costa, on Monday rebuked the
Trump administration for the national security document and urged the White
House to respect Europe’s sovereignty and right to self-government.
“Allies do not threaten to interfere in the democratic life or the domestic
political choices of these allies,” Costa said. “They respect them.”
Speaking with POLITICO, Trump flouted those boundaries and said he would
continue to back favorite candidates in European elections, even at the risk of
offending local sensitivities.
“I’d endorse,” Trump said. “I’ve endorsed people, but I’ve endorsed people that
a lot of Europeans don’t like. I’ve endorsed Viktor Orbán,” the hard-right
Hungarian prime minister Trump said he admired for his border-control policies.
It was the Russia-Ukraine war, rather than electoral politics, that Trump
appeared most immediately focused on. He claimed on Monday that he had offered a
new draft of a peace plan that some Ukrainian officials liked, but that
Zelenskyy himself had not reviewed yet. “It would be nice if he would read it,”
Trump said.
Zelenskyy met with leaders of France, Germany and the United Kingdom on Monday
and continued to voice opposition to ceding Ukrainian territory to Russia as
part of a peace deal.
The president said he put little stock in the role of European leaders in
seeking to end the war: “They talk, but they don’t produce, and the war just
keeps going on and on.”
In a fresh challenge to Zelenskyy, who appears politically weakened in Ukraine
due to a corruption scandal, Trump renewed his call for Ukraine to hold new
elections.
“They haven’t had an election in a long time,” Trump said. “You know, they talk
about a democracy, but it gets to a point where it’s not a democracy anymore.”
Latin America
Even as he said he is pursuing a peace agenda overseas, Trump said he might
further broaden the military actions his administration has taken in Latin
America against targets it claims are linked to the drug trade. Trump has
deployed a massive military force to the Caribbean to strike alleged drug
runners and pressure the authoritarian regime in Venezuela.
In the interview, Trump repeatedly declined to rule out putting American troops
into Venezuela as part of an effort to bring down the strongman ruler Nicolás
Maduro, whom Trump blames for exporting drugs and dangerous people to the United
States. Some leaders on the American right have warned Trump that a ground
invasion of Venezuela would be a red line for conservatives who voted for him in
part to end foreign wars.
“I don’t want to rule in or out. I don’t talk about it,” Trump said of deploying
ground troops, adding: “I don’t want to talk to you about military strategy.”
But the president said he would consider using force against targets in other
countries where the drug trade is highly active, including Mexico and Colombia.
“Sure, I would,” he said.
Trump scarcely defended some of his most controversial actions in Latin America,
including his recent pardon of the former Honduran President Juan Orlando
Hernández, who was serving a decades-long sentence in an American prison after
being convicted in a massive drug-trafficking conspiracy. Trump said he knew
“very little” about Hernández except that he’d been told by “very good people”
that the former Honduran president had been targeted unfairly by political
opponents.
“They asked me to do it and I said, I’ll do it,” Trump acknowledged, without
naming the people who sought the pardon for Hernández.
HEALTH CARE AND THE ECONOMY
Asked to grade the economy under his watch, Trump rated it an overwhelming
success: “A-plus-plus-plus-plus-plus.” To the extent voters are frustrated about
prices, Trump said the Biden administration was at fault: “I inherited a mess. I
inherited a total mess.”
The president is facing a forbidding political environment because of voters’
struggles with affordability, with about half of voters overall and nearly 4 in
10 people who voted for Trump in 2024 saying in a recent POLITICO Poll that
the cost of living was as bad as it had ever been in their lives.
Trump said he could make additional changes to tariff policy to help lower the
price of some goods, as he has already done, but he insisted overall that the
trend on costs was in the right direction.
“Prices are all coming down,” Trump said, adding: “Everything is coming down.”
Prices rose 3 percent over the 12 months ending in September, according to the
most recent Consumer Price Index.
Trump’s political struggles are shadowing his upcoming decision on a nominee to
chair the Federal Reserve, a post that will shape the economic environment for
the balance of Trump’s term. Asked if he was making support for slashing
interest rates a litmus test for his Fed nominee, Trump answered with a quick
“yes.”
The most immediate threat to the cost of living for many Americans is the
expiration of enhanced health insurance subsidies for Obamacare exchange plans
that were enacted by Democrats under former President Joe Biden and are set to
expire at the end of this year. Health insurance premiums are expected to spike
in 2026, and medical charities are already experiencing a marked rise in
requests for aid even before subsidies expire.
Trump has been largely absent from health policy negotiations in Washington,
while Democrats and some Republicans supportive of a compromise on subsidies
have run into a wall of opposition on the right. Reaching a deal — and
marshaling support from enough Republicans to pass it — would likely require
direct intervention from the president.
Yet asked if he would support a temporary extension of Obamacare subsidies while
he works out a large-scale plan with lawmakers, Trump was noncommittal.
“I don’t know. I’m gonna have to see,” he said, pivoting to an attack on
Democrats for being too generous with insurance companies in the Affordable Care
Act.
A cloud of uncertainty surrounds the administration’s intentions on health care
policy. In late November, the White House planned to unveil a proposal to
temporarily extend Obamacare subsidies only to postpone the announcement. Trump
has promised on and off for years to unveil a comprehensive plan for replacing
Obamacare but has never done so. That did not change in the interview.
“I want to give the people better health insurance for less money,” Trump said.
“The people will get the money, and they’re going to buy the health insurance
that they want.”
Reminded that Americans are currently buying holiday gifts and drawing up
household budgets for 2026 amid uncertainty around premiums, Trump shot back:
“Don’t be dramatic. Don’t be dramatic.”
SUPREME COURT
Large swaths of Trump’s domestic agenda currently sit before the Supreme Court,
with a generally sympathetic 6-3 conservative majority that has nevertheless
thrown up some obstacles to the most brazen versions of executive power Trump
has attempted to wield.
Trump spoke with POLITICO several days after the high court agreed to hear
arguments concerning the constitutionality of birthright citizenship, the
automatic conferral of citizenship on people born in the United States. Trump is
attempting to roll back that right and said it would be “devastating” if the
court blocked him from doing so.
If the court rules in his favor, Trump said, he had not yet considered whether
he would try to strip citizenship from people who were born as citizens under
current law.
Trump broke with some members of his party who have been hoping that the court’s
two oldest conservatives, Clarence Thomas and Samuel Alito, might consider
retiring before the midterm elections so that Trump can nominate another
conservative while Republicans are guaranteed to control the Senate.
The president said he’d rather Alito, 75, and Thomas, 77, the court’s most
reliable conservative jurists, remain in place: “I hope they stay,” he said,
“’cause I think they’re fantastic.”