Europe prides itself on being a world leader in animal protection, with legal
frameworks requiring member states to pay regard to animal welfare standards
when designing and implementing policies. However, under REACH — Registration,
Evaluation, Authorisation and Restriction of Chemicals (REACH) — the EU’s
cornerstone regulation on chemical safety, hundreds of thousands of animals are
subjected to painful tests every year, despite the legal requirement that animal
testing should be used only as a ‘last resort’. With REACH’s first major revamp
in almost 20 years forthcoming, lawmakers now face a once-in-a-generation
opportunity to drive a genuine transformation of chemical regulation.
When REACH was introduced nearly a quarter of a century ago, it outlined a bold
vision to protect people and the environment from dangerous chemicals, while
simultaneously driving a transition toward modern, animal-free testing
approaches. In practice, however, companies are still required to generate
extensive toxicity data to bring both new chemicals and chemicals with long
histories of safe use onto the market. This has resulted in a flood of animal
tests that could too often be dispensed, especially when animal-free methods are
just as protective (if not more) of human health and the environment.
> Hundreds of thousands of animals are subjected to painful tests every year,
> despite the legal requirement that animal testing should be used only as a
> ‘last resort’.
Despite the last resort requirement, some of the cruelest tests in the books are
still expressly required under REACH. For example, ‘lethal dose’ animal tests
were developed back in 1927 — the same year as the first solo transatlantic
flight — and remain part of the toolbox when regulators demand ‘acute toxicity’
data, despite the availability of animal-free methods. Yet while the aviation
industry has advanced significantly over the last century, chemical safety
regulations remain stuck in the past.
Today’s science offers fully viable replacement approaches for evaluating oral,
skin and fish lethality to irritation, sensitization, aquatic bioconcentration
and more. It is time for the European Commission and member states to urgently
revise REACH information requirements to align with the proven capabilities of
animal-free science.
But this is only the first step. A 2023 review projected that animal testing
under REACH will rise in the coming years in the absence of significant reform.
With the forthcoming revision of the REACH legal text, lawmakers face a choice:
lock Europe into decades of archaic testing requirements or finally bring
chemical safety into the 21st century by removing regulatory obstacles that slow
the adoption of advanced animal-free science.
If REACH continues to treat animal testing as the default option, it risks
eroding its credibility and the values it claims to uphold. However, animal-free
science won’t be achieved by stitching together one-for-one replacements for
legacy animal tests. A truly modern, European relevant chemicals framework
demands deeper shifts in how we think, generate evidence and make safety
decisions. Only by embracing next-generation assessment paradigms that leverage
both exposure science and innovative approaches to the evaluation of a
chemical’s biological activity can we unlock the full power of state-of the-art
non-animal approaches and leave the old toolbox behind.
> With the forthcoming revision of the REACH legal text, lawmakers face a
> choice: lock Europe into decades of archaic testing requirements or finally
> bring chemical safety into the 21st century.
The recent endorsement of One Substance, One Assessment regulations aims to
drive collaboration across the sector while reducing duplicate testing on
animals, helping to ensure transparency and improve data sharing. This is a step
in the right direction, and provides the framework to help industry, regulators
and other interest-holders to work together and chart a new path forward for
chemical safety.
The EU has already demonstrated in the cosmetics sector that phasing out animal
testing is not only possible but can spark innovation and build public trust. In
2021, the European Parliament urged the Commission to develop an EU plan to
replace animal testing with modern scientific innovation. But momentum has since
stalled. In the meantime, more than 1.2 million citizens have backed a European
Citizens’ Initiative calling for chemical safety laws that protect people and
the environment without adding new animal testing requirements; a clear
indication that both science and society are eager for change.
> The EU has already demonstrated in the cosmetics sector that phasing out
> animal testing is not only possible but can spark innovation and build public
> trust.
Jay Ingram, managing director, chemicals, Humane World for Animals (founding
member of AFSA Collaboration) states: “Citizens are rightfully concerned about
the safety of chemicals that they are exposed to on a daily basis, and are
equally invested in phasing out animal testing. Trust and credibility must be
built in the systems, structures, and people that are in place to achieve both
of those goals.”
The REACH revision can both strengthen health and environmental safeguards while
delivering a meaningful, measurable reduction in animal use year on year.
Policymakers need not choose between keeping Europe safe and embracing kinder
science; they can and should take advantage of the upcoming REACH revision as an
opportunity to do both.
--------------------------------------------------------------------------------
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Europe’s far-right firebrands are rushing to hitch their fortunes to
Washington’s new crusade against Brussels.
Senior U.S. government officials, including Vice President JD Vance and
Secretary of State Marco Rubio, have launched a raft of criticism against what
they call EU “censorship” and an “attack” of U.S. tech companies following a
€120 million fine from the European Commission on social media platform X. The
fine is for breaching EU transparency obligations under the Digital Services
Act, the bloc’s content moderation rule book.
“The Commission’s attack on X says it all,” Hungarian Prime Minister Viktor
Orbán said on X on Saturday. “When the Brusselian overlords cannot win the
debate, they reach for the fines. Europe needs free speech, not unelected
bureaucrats deciding what we can read or say,” he said.
“Hats off to Elon Musk for holding the line,” Orbán added.
Tech mogul Musk said his response to the penalty would target the EU officials
who imposed it.
“The European Commission appreciates censorship & chat control of its citizens.
They want to silence critical voices by restricting freedom of speech,” echoed
far-right Alternative for Germany leader Alice Weidel.
Three right-wing to far-right parties in the EU are pushing to stop and
backtrack the integration process of European countries — the European
Conservatives and Reformists, the Patriots for Europe, and the Europe of
Sovereign Nations. Together they hold 191 out of 720 seats in the European
Parliament.
The parties’ lawmakers are calling for a range of proposals — from shifting
competences from the European to the national level, to dismantling the EU
altogether. They defend the primacy of national interests over common European
cooperation.
Since Donald Trump’s reelection, they have portrayed themselves as the key
transatlantic link, mirroring the U.S. president’s political campaigning in
Europe, such as pushing for a “Make Europe Great Again” movement.
The fresh U.S. criticism of EU institutions has come in handy to amplify their
political agendas. “Patriots for Europe will fight to dismantle this censorship
regime,” the party said on X.
The ECR group — political home to Italian Prime Minister Giorgia Meloni — issued
a statement questioning the enforcement of the DSA following the U.S. criticism.
“A digital law that lacks legal certainty risks becoming an instrument of
political discretion,” ECR co-chairman Nicola Procaccini said on Saturday after
the U.S. backlash.
The group supported the DSA when it passed through the Parliament, having said
in the past the law would “protect freedom of expression, increase trust in
online services and contribute to an open digital economy in Europe.”
LISBON — Ursula von der Leyen’s European Commission should continue to enforce
its digital rules with an iron fist despite the outcry from U.S. officials and
big tech moguls, co-chair of the Greens in the European Parliament Bas Eickhout
told POLITICO.
As Green politicians from across Europe gather in the Portuguese capital for
their annual congress, U.S. top officials are blasting the EU for imposing a
penalty on social media platform X for breaching its transparency obligations
under the EU’s Digital Services Act, the bloc’s content moderation rule book.
“They should just implement the law, which means they need to be tougher,”
Eickhout told POLITICO on the sidelines of the event. He argued that the fine of
€120 million is “nothing” for billionaire Elon Musk and that the EU executive
should go further.
The Commission needs to “make clear that we should be proud of our policies … we
are the only ones fighting American Big Tech,” he said, adding that tech
companies are “killing freedom of speech in Europe.”
The Greens have in the past denounced Meta and X over their content moderation
policies, arguing these platforms amplify “disinformation” and “extremism” and
interfere in European electoral processes.
Meta and X did not reply to a request for comment by the time of publication.
Meta has “introduced changes to our content reporting options, appeals process
and data access tools since the DSA came into force and are confident that these
solutions match what is required under the law in the EU,” a Meta spokesperson
said at the end of October.
Tech mogul Musk said his response to the penalty would target the EU officials
who imposed it. U.S. Secretary of State Marco Rubio said the fine is “an attack
on all American tech platforms and the American people by foreign governments,”
and accused the move of “censorship.”
“It’s not good when our former allies in Washington are now working hand in
glove with Big Tech,” blasted European Green Party chair Ciarán Cuffe at the
opening of the congress in Lisbon.
Eickhout, whose party GreenLeft-Labor alliance is in negotiations to enter
government in the Netherlands, said “we should pick on this battle and stand
strong.”
The Commission’s decision to fine X under the EU’s Digital Services Act is over
transparency concerns. The Commission said the design of X’s blue checkmark is
“deceptive,” after it was changed from user verification into a paid feature.
The EU’s executive also said X’s advertising library lacks transparency and that
it fails to provide access to public data for researchers as required by the
law.
Eickhout lamented that European governments are slow in condemning the U.S.
moves against the EU, and argued that with its recent national security
strategy, the Americans have made clear their objective is to divide Europe from
within by fueling far-right parties.
“Some of the leaders like [French President Emmanuel] Macron are still
desperately trying to say that that the United States are our ally,” Eickhout
said. “I want to see urgency on how Europe is going to take its own path and not
rely on the U.S. anymore, because it’s clear we cannot.”
BRUSSELS — U. S. Vice President JD Vance has hit out at the EU’s digital rules
enforcement, saying the EU should not be “attacking American companies over
garbage.”
“Rumors swirling that the EU commission will fine X hundreds of millions of
dollars for not engaging in censorship. The EU should be supporting free speech
not attacking American companies over garbage,” Vance wrote on X overnight.
X owner Elon Musk immediately thanked the U.S. official, commenting, “Much
appreciated.”
The European Commission opened formal proceedings against X under its Digital
Services Act in December 2023, roughly a year after Musk bought Twitter and
rebranded it as X.
But the EU has yet to finalize its probe, after accusing X of breaching its
obligations around transparency and blue checkmarks in preliminary findings in
July 2024. A decision could come as early as Friday, according to media
reports Thursday.
Under the EU rules, companies can be fined up to 6 percent of their annual
global turnover.
French President Emmanuel Macron last week voiced concerns about the slow pace
of Brussels’ probes into American tech giants, adding to a growing chorus of
criticism that the bloc has been too slow to enforce its flagship Digital
Services Act amid U.S. pressure.
Washington has repeatedly asked the EU to roll back its digital rule book as
part of trade negotiations, and last week U.S. Secretary of Commerce Howard
Lutnick put this on the table again as an explicit exchange for scrapping
tariffs on steel and aluminum in ongoing talks.
Asked earlier Thursday how she feels about a looming diplomatic showdown if she
slaps a fine on a U.S. tech giant, Commission digital chief Henna Virkkunen told
POLITICO: “I’m quite calm in different situations. I’m not surprised about
anything. I’m protecting our laws. But at the same time we are going to make
Europe faster and simpler and easier for businesses.”
Asked if she’s afraid of the U.S.’s reaction to a fine under the DSA, Virkkunen
responded with a single word: “No.”
LONDON — In February Britain’s cash-strapped Labour government cut international
development spending — and barely anyone made a noise.
The center-left party announced it would slice the country’s spending on aid
down to only 0.3 percent of gross domestic income — from 0.5 percent — in order
to fund a hike in defense spending.
MPs, aid experts and officials have told POLITICO that the scale of the cuts is
on a par with — or even exceeding — those of both the previous center-right
Conservative government or the United States under Donald Trump. This leaves
Britain’s development arm, once globally envied as a vehicle for poverty
alleviation, a shadow of its former self.
The move — prompted by U.S. demands to up its NATO spending, and mirroring the
Trump administration’s move to gut its own USAID development budget — shocked
Labour’s progressive MPs, supporters and backers in the aid sector.
But unlike attempted cuts to British welfare spending, the real-world backlash
was muted, with the resignation of Britain’s development minister prompting
little further dissent or change in policy. There was no mutiny in parliament,
and only limited domestic and international condemnation outside of an aid
sector torn between making their voices heard — and keeping in Whitehall’s good
books over slices of the shrinking pie.
Some fear a return grab over the aid budget could still be on the cards — but
that the government will find that there is little left to cut.
Gideon Rabinowitz, director of policy and advocacy at Bond, the U.K. network for
NGOs, warned that, instead of “reversing the cuts by the previous Conservative
government, Labour has compounded them, and lives will be lost as a result.”
“These cuts will further tarnish the U.K.’s reputation as it continues to be
known as an unreliable global partner, breaking Labour’s manifesto commitment,”
he warned. “The Conservatives started the fire, but instead of putting it out,
this Labour government threw petrol on it.”
‘IT WAS THE PERFECT TIME TO DO IT’
When Prime Minister Keir Starmer announced the cut to international aid — a bid
to save over £6 billion by 2027 — Labour MPs, including those who worked in the
sector before being elected, were notably silent.
The move followed a 2021 Conservative cut to aid spending — from 0.7 percent in
the Tory brand-rebuilding David Cameron years down to 0.5 percent. At the time,
Labour MPs had met that Tory cut with howls of outrage. This time it was
different.
Some were genuinely shocked, while others feared retribution from a Downing
Street that had flexed its muscles at MPs who rebelled on what they saw as
points of conscience.
“No one was expecting it, so there was no opportunity to campaign around it,”
said one Labour MP. “Literally none of us had any idea it was coming.”
Remaining spending is largely mandatory contributions to organizations such as
the World Bank. | Daniel Slim/AFP via Getty Images
The same MP noted that there are around 50 Labour MPs from the new 2024 intake
who had some form of development background before coming into parliament. Yet
they were put “completely under the cosh” by Downing Street and government
whips. “It was the perfect time to do it,” the MP said.
A number of MPs who might have been vocal have since been made parliamentary
private secretaries — the most junior government role. “They have basically
gagged the people who would be most likely to be outspoken on it,” the MP above
said. The department’s ministerial team is now more likely to be loyal to the
Starmer project.
“I just felt hurt, and wounded. We were stunned. None of us saw it coming,” said
one MP from the 2024 cohort, adding: “They priced in that backlash wouldn’t
come.” But they added: “If we were culpable so were NGOs, too inward-looking and
focused on peripheral issues.”
The lack of outcry from MPs would, however, seem to put them largely in step
with the wider British public. Polling and focus groups from think tank More in
Common suggest that despite the majority of voters thinking spending on
international aid is the right thing to do in a variety of circumstances, only
around 20 percent of the public think the budget was cut too much.
The second new-intake Labour MP quoted above said the policy was therefore an
“easy thing to sell on the doorstep,” and “in my area, there’s not going to be
shouting from the rooftops to spend more money on aid.”
DIMINISHED AND DEMORALIZED
The cuts to aid come at a time when Britain’s Foreign Office is undergoing a
radical overhaul.
While the department describes its plans as “more agile,” staff, programs and
entire areas of focus are all ripe for cuts to save money. The department is
looking to make redundancies for around 25 percent of staff based in the U.K.
MPs have voiced concern that development staff will be among the first to make
the jump due to the government’s shift away from aid.
The department insists that no final decisions have been taken over the size and
shape of the organization.
Major cuts are expected across work on education, conflict, and WASH (Water,
Sanitation, and Hygiene.) The government’s Integrated Security Fund — which
funds key counter-terror programs abroad — is also looking to scale back work
abroad which does not have a clear link to Britain’s national security.
The British Council — a key soft-power organization viewed as helping combat
Chinese and Russian reach across the world — told MPs it is in “real financial
peril” and would be cutting its presence in 35 of the 97 countries it operates.
The BBC’s World Service is seeing similar cuts to its global reach. The
Independent Commission for Aid Impact (ICAI), the watchdog for aid spending, is
also not safe from the ax as the government continues its bonfire of regulators.
The FCDO did not refute the expected pathway of cuts. Published breakdowns of
spending allocations for the next three years are due to be published in the
coming months, an official said.
A review of Britain’s development and diplomacy policies conducted by economist
Minouche Shafik — who has since been moved into Downing Street — sits discarded
in the department. The government refuses to publish its findings.
Aid spending was spared a repeat visit by Chancellor Rachel Reeves in her
government-wide budget last month — but that hasn’t stopped MPs worrying about a
second bite. | Pool Photo by Adrian Dennis via Getty Images
The second 2024 intake MP quoted earlier in the piece said that following the
U.S. decisions on aid and foreign policy “there was an expectation that the
U.K., as a responsible international partner, as a leader on a lot of this
stuff, would fill the gap to some extent, and then take more of a leadership
role on it, and we’ve done the opposite.”
NOTHING LEFT TO CUT
Aid spending was spared a repeat visit by Chancellor Rachel Reeves in her
government-wide budget last month — but that hasn’t stopped MPs worrying about a
second bite. While few MPs or those in the aid sector feel Britain will ever
return to the lofty heights of its 0.7 percent commitment, they predict there
will be harder resistance if the government comes back for more.
“I don’t think they’re going to try and do it again, as there’s no money left,”
the second 2024 intake MP said. But they pointed out that a large portion of the
remaining aid budget is spent on in-country costs such as accommodation for
asylum seekers. Savings identified from the asylum budget would be sent back to
the Treasury, rather than put back into the aid budget, they noted.
Remaining spending is largely mandatory contributions to organizations such as
the World Bank or the United Nations and would, they warned, involve “getting
rid of international agreements and chopping up longstanding influence at big
international institutions that we are one of the leading people in.”
The United Nations is already facing its own funding crisis as it struggles to
adjust to the global downturn in aid spending. British diplomat Tom Fletcher —
who leads the UN’s humanitarian response — said earlier this year that the
organization has been “forced into a triage of human survival,” adding: “The
math is cruel, and the consequences are heartbreaking.”
The government still has a commitment to returning to 0.7 percent of GNI “as
soon as the fiscal circumstances allow.” The tests for this ramp back up were
set out four years ago. Britain must not be borrowing for day-to-day spending
and underlying debt must be falling. The last two budgets have forecast that the
government will not meet these tests in this parliament.
FARAGE CIRCLES
In the meantime, Labour’s opponents feel emboldened to go further.
Both the Conservatives and Reform UK have said that they would further cut the
aid budget. The Tories have vowed to slice it down to 0.1 percent of GNI, while
Nigel Farage’s Reform UK is eyeing fresh cuts of at least by £7-8 billion a
year. A third 2024 Labour MP said that there was a degree of pressure among some
colleagues to match the Conservatives’ 0.1 percent pledge.
Though no country has gone as far as Uganda’s Idi Amin in setting up a “save
Britain fund” for its “former colonial masters,” Britain’s departure on
international aid gives space for other countries wanting to step up to further
their own foreign policy aims.
The space vacated by Britain and America has prompted warnings that China will
step in, while countries newer to international development such as Gulf states
could try and fill the void. Many of these nations are unlikely to ever fund the
same projects as the U.K. and the U.S., forcing NGOs to look to alternate donors
such as philanthropists to fund their work.
“There’ll be a big, big gap, and it won’t be completely filled,” the second new
intake MP said.
An FCDO spokesperson said the department was undergoing “an unprecedented
transformation,” and added: “We remain resolutely committed to international
development and have been clear we must modernize our approach to development to
reflect the changing global context. We will bring U.K. expertise and investment
to where it is needed most, including global health solutions and humanitarian
support.”
The European Central Bank is hatching a plan to boost the use of the euro around
the world, hoping to turn the world’s faltering confidence in U.S. political and
financial leadership to Europe’s advantage.
Liquidity lines — agreements to lend at short notice to other central banks —
have long been a standard part of the crisis-fighting toolkits of central banks,
but the ECB is now thinking of repurposing them to further Europe’s political
aims, four central bank officials told POLITICO.
One aim of the plan is to absorb any shocks if the U.S. — which has backstopped
the global financial system with dollars for decades — suddenly decides not to,
or attaches unacceptable conditions to its support. The other goal is to
underpin its foreign trade more actively and, ultimately, grab some of the
benefits that the U.S. has historically enjoyed from controlling the world’s
reserve currency.
Officials were granted anonymity because the discussions are private.
Bruegel fellow Francesco Papadia, who was previously director-general for
the ECB’s market operations, told POLITICO that such efforts are sensible and
reflect an increasing willingness among European authorities to see the euro
used more widely around the world.
WHAT’S A LIQUIDITY LINE?
Central banks typically use two types of facilities to lend to each other:
either by swapping one currency for another (swap lines) or by providing funds
against collateral denominated in the lender’s currency (repo lines).
The ECB currently maintains standing, unlimited swap lines with the U.S. Federal
Reserve, the Bank of Canada, the Bank of England, the Swiss National Bank, and
the Bank of Japan, as well as standing but capped lines with the Danish and
Swedish central banks. It also operates a facility with the People’s Bank of
China, capped in both volume and duration.
Other central banks seeking euro liquidity must rely on repo lines known as
EUREP, under which they can borrow limited amounts of euros for a limited period
against high-quality euro-denominated collateral. At present, only Hungary,
Romania, Albania, Andorra, San Marino, North Macedonia, Montenegro and Kosovo
have such lines in place.
But these active lines have sat untouched since Jan. 2, 2024 — and even at the
height of the Covid crisis, their use peaked at a mere €3.6 billion.
For the eurozone’s international partners, the knowledge that they can access
the euro in times of stress is valuable in itself, helping to pre-empt
self-fulfilling fears of financial instability. But some say that if structured
generously enough, the facilities can also reduce concerns about exchange rate
fluctuations or liquidity shortages.
Such details may sound academic, but the availability of liquidity lines has
real impacts on business: A Romanian carmaker whose bank has trouble securing
euros may fail to make payments to a supplier in Germany, disrupting its
production and raising its costs.
“The knowledge that foreign commercial banks can borrow in euros while being
assured that they have access to euro liquidity [as a backstop] encourages the
use of the euro,” one ECB rate-setter explained.
French central bank chief François Villeroy de Galhau suggested that Europe
could at least take a leaf out of China’s book, noting that the Eurosystem “can
make euro invoicing more attractive” by expanding the provision of euro
liquidity lines. | Kirill Kudryavtsev/Getty Images
“Liquidity lines, in particular EUREP, should be flexible, simple and easy to
activate,” he argued. One option, he said, would be to extend them to more
countries. Another could be to make EUREP a standing facility — removing any
doubts about whether, and under what conditions, euro access would be granted.
Papadia added that the ECB could also ease access to EUREP by cutting its cost,
boosting available volumes or extending the timeframe for use.
NOT JUST AN ACADEMIC QUESTION
French central bank chief François Villeroy de Galhau suggested in a recent
speech that Europe could at least take a leaf out of China’s book, noting that
the Eurosystem “can make euro invoicing more attractive” by expanding the
provision of euro liquidity lines.
China has established around 40 swap lines with trading partners worldwide to
underpin its burgeoning foreign trade, especially with poorer and less stable
countries.
By contrast, the ECB — a historically cautious animal — “is not marketing the
euro to the same extent that the Chinese market the renminbi,” according to
Papadia.
Another policymaker told POLITICO that while there is a broad consensus that
liquidity lines should be made more widely available, the Governing Council had
not yet hashed out the details.
Austrian National Bank Governor Martin Kocher told POLITICO in a recent
interview that there has been “no deeper discussion” on the Council, adding that
he sees no reason to promote euro liquidity lines actively.
“I’m not arguing that you should incentivize or create a demand. Rather, if
there is demand, we should be prepared for it,” he said, acknowledging that
“preparation is very important.”
He noted that erratic U.S. policies could force the euro “to take on a stronger
role in the international sphere” — both as a reserve currency and in
transactions. According to a Reuters report earlier this month, similar concerns
among central banks worldwide have sparked a debate over creating an alternative
to Federal Reserve funding backstops by pooling their own dollar reserves.
The ECB declined to comment for this article.
RISK AVERSION AND OTHER OBSTACLES
However, swap lines in particular don’t come without risks.
“The main risk is that the country would use a swap and then would not be able
to return the drawn euros,” said Papadia. “And then you will be left with
foreign currency you don’t really know what to do with.”
That is exactly the kind of trap some economists warn the U.S. is stumbling into
with its $20 billion swap line to Argentina. “The United States doesn’t really
want Argentina’s currency,” the Council on Foreign Relations’ Brad Setser wrote
in a blog post. “It expects to be repaid in dollars, so it would be a massive
failure if the swap was never unwound and the U.S. Treasury was left holding a
slug of pesos.”
Austrian National Bank Governor Martin Kocher said there has been “no deeper
discussion” on the Council, adding that he sees no reason to promote euro
liquidity lines actively. | Heinz-Peter Bader/Getty Images
Such thinking, another central bank official said, will incline the ECB to focus
first on reforming the EUREP lines, which have always been its preferred tool.
The trouble with that, however, is that EUREP use may be limited by a lack of
safe assets denominated in euros to serve as collateral. Papadia noted that the
Fed’s network of liquidity lines works because “the Fed has the U.S. Treasury
as a kind of partner in granting these swaps.” So long as Europe fails to create
a joint debt instrument, this may put a natural cap on such lines.
Even with a safe asset, focusing on liquidity lines first could be putting the
cart before the horse, said Gianluca Benigno, professor of economics at the
University of Lausanne and former head of the New York Fed’s international
research department.
Europe’s diminishing geopolitical relevance means that the ECB is unlikely to
see much demand — deliberately engineered or not — for its liquidity outside
Europe without much broader changes, Benigno told POLITICO.
Liquidity lines can be used to advance your goals if you already have power —
but they can’t create it. For that, he argued, Europe first needs a clear
political vision for its role in the global economy, alongside a Capital Markets
Union and the creation of a common European safe asset — issues that only
politicians can address.
VENICE, Italy — Luca Zaia, a towering force in northern Italian politics, is
plotting his next move and that’s turning into a headache for his party, the
far-right League, led by firebrand Deputy Prime Minister Matteo Salvini.
As regional president of Veneto, the wealthy region of 5 million people around
Venice, Zaia is one of the League’s superstars, but his mandate comes to an end
after an election this weekend. That is sparking intense speculation about his
ambitions — not least because his political vision is so different from
Salvini’s.
While Salvini is steering the League away from its separatist roots — no longer
seeking to rip the rich industrialized north away from poorer southern Italy
— Zaia remains a vocal advocate for northern autonomy from Rome. He is also more
moderate on immigration, climate and LGBTQ+ rights than his right-wing populist
party chief.
One of the big questions looming over Italian politics is whether these two
rival visions can survive within the League, a party at the heart of Giorgia
Meloni’s coalition government. Zaia himself suggests the League could split into
two allied factions along the lines of the Christian Democratic Union and
Christian Social Union on Germany’s center right.
MEET THE DOGE
Nicknamed the “Doge of Venice,” Zaia, a former Italian agriculture minister, has
spent 15 of his 57 years running Veneto from an office lined with emerald silk
in a 16th-century palazzo on the Grand Canal.
He won eight out of 10 votes cast in 2020, the highest approval rating of any
regional chief, but is barred from running again because of a two-term limit.
In an interview with POLITICO, he joked about the whirl of theories about his
next steps. “I am in the running for everything: [energy giant] ENI, Venice,
parliament, minister.”
But when pressed on what he will do, he gave nothing away, only that his focus
is squarely on the north. “I gave up a safe seat in Brussels a year ago to stay
here,” he said, only adding he would work until the last day of his mandate.
“Then I’ll see.”
Amid internal power struggles in the League, Zaia is increasingly seen as an
alternative leadership figure by those unhappy with its trajectory. Zaia has
clashed with Salvini’s deputy leader Gen. Roberto Vannacci over his revisionist
views of the fascist era under Benito Mussolini, but has held back from
criticizing Salvini openly.
Zaia, right, at the closing event of the center-right coalition’s campaign for
the Veneto regional elections in support of Alberto Stefani, left, Nov. 18. |
Alessandro Bremec/NurPhoto via Getty Images
When asked whether Salvini made strategic mistakes as party leader, he stayed
cryptically diplomatic. “We all make mistakes,” he replied.
A CHANGING LEAGUE
When Zaia joined what was then the Northern League in the 1990s it was a
separatist movement, opposed to tax redistribution from the wealthy north to the
south, perceived as corrupt and inefficient. But under Salvini’s leadership, the
rebranded League became a nationwide party, with a strand increasingly courting
the extreme right.
This approach has alienated both mainstream voters, and more moderate and
north-focused activists, for whom Zaia is a political lodestar. One major
bugbear is Salvini’s drive to build a €14 billion bridge between Calabria and
Sicily, seen by separatists as a wasteful southern project sucking in northern
tax revenue.
In a sign of the shifting tectonic plates, one faction, supported by the
Northern League’s founder Umberto Bossi, and that has in recent years
unsuccessfully tried to oust Salvini, last week launched a new party, the Pact
for the North.
Its leader, former MP Paolo Grimoldi, expelled from the League after 34 years,
told POLITICO his group would welcome Zaia “with open arms.”
Zaia and other northern governors “just have to find the courage to say publicly
what they have been saying privately for some time, that Salvini has completely
betrayed the battles of the League.”
Zaia himself is recommending a new-look League modeled on the German CDU-CSU,
with sister League parties catering to Italy’s north and south. He aired the
idea in a new book by journalist Bruno Vespa, pointing out the CSU had a
separate Bavarian identity within the German Christian Democrat family. “We
could do the same here,” he said.
Most political insiders and observers think it unlikely that Zaia would seek a
national leadership role — being too associated with Veneto — but he would be an
obvious choice to lead the northern wing of a divided party.
For Salvini, this internal schism is an obvious challenge. He has said he’s
intrigued by the CDU-CSU idea, but few believe him. He needs to find something
to prevent Zaia from turning into a nuisance, and has proposed him for a vacant
parliamentary seat in Rome and as mayor of Venice.
“It’s up to him to decide if he stays in Veneto or brings Veneto to Rome,”
Salvini said at an event in Padua last weekend.
MAYOR OF VENICE?
Which way will Zaia jump?
A return to Rome seems unappetizing. “When he was minister, he didn’t like
Rome”, said a political colleague. “Rome’s values are not the values of Veneto.
In Veneto, we value meritocracy, work, effort, seriousness in politics. In Rome
it’s all compromise.”
Which makes Venice the more likely option, if he does decide to avoid a head-on
clash with Salvini.
Zaia would be very well set to run for mayor of Venice next May, according to
the MP and two friends of Zaia’s from Veneto. He has a manifesto ready: Autonomy
for Venice. Venice should become a city-state with special powers to address its
unique problems of depopulation, overtourism and climate change, he said in the
interview.
Zaia’s popularity in Veneto, according to the locals, derives from his
down-to-earth persona. He’s better known for speaking in regional dialect and
attending traditional events, rather than being snapped at glamorous galas or on
the fleet of speedboats at his disposal, rocking gently at his Grand Canal
doorstep.
He was also lauded for his handling of the Covid pandemic, readying Veneto for
the Winter Olympics next year and even helping boost exports of Prosecco
sparkling wine.
Local lore holds that half of Veneto’s 5 million residents have his phone
number. “Maybe even more,” he quipped. “I have never changed my number, people
know they can call me if they have a serious problem.”
DISCO DOGE
Raised in a small village near Treviso, just 30 kilometers from Venice, he was
an unusually independent and motivated teenager, passionate about horses and
teaching himself Latin on Sundays, according to one classmate.
At university, where he graduated in animal husbandry, he supported himself by
running club nights in local discos. It was a useful training for politics, Zaia
said. “Clubs are a great school of life. You meet humanity in all its forms:
rich, poor, good, bad, violent, peaceful.”
One of the big questions looming over Italian politics is whether these two
rival visions can survive within the League, a party at the heart of Giorgia
Meloni’s coalition government. | Ivan Romano/Getty Images
Indeed, it seems he took the role ultraseriously. “I never saw Luca dance. For
him it was work,” said the same former classmate.
He entered politics in the aftermath of the 1990s Clean Hands scandal, a
nationwide corruption investigation, which took down a generation of
politicians, and became a rising star in the region. As well as being the
youngest provincial president in Italy, adorning Treviso with numerous
surprisingly popular roundabouts, he was minister of agriculture in Silvio
Berlusconi’s government.
He is sufficiently self-assured to diverge from central League dogma when he
sees fit. He tried to bring in a law this year to regulate doctor-assisted
suicide in contrast to national League policy. He also supports sex education in
schools, something the League opposes. “When it’s an ethical matter … I have my
own ideas, regardless of what the party says,” he said.
But he is clearly smarting about the party’s deal with Meloni to keep
the Zaia brand out of the campaign for this weekend’s Veneto election. The
original plan, which would have given him significant ongoing influence in the
region, was for him to choose a list of regional councilors to go on the ballot
and for the League logo to feature his name, he told journalists on the
sidelines of a Venice Commission event in October. “If they see me as a problem,
I’ll become a real problem,” he threatened. (He will still appear on the ballot
as a candidate for regional councilor, giving him yet another option — stay on
to assist his successor.)
If he does decide to chart his own political path as mayor of Venice next year,
at least he won’t have far to go.
The doge needs only to step into one of his speedboats to whizz off to the
mayor’s equally opulent palazzo along the Grand Canal.
LONDON — Donald Trump’s war against the media has gone international.
Britain’s public service broadcaster has until 10 p.m. U.K. time on Friday to
retract a 2024 documentary that he claims did him “overwhelming financial and
reputational harm” — or potentially face a $1 billion lawsuit (nearly £760
million).
It’s the U.S. president’s first notable battle with a non-American media
organization. The escalation from Trump comes as the BBC is already grappling
with the double resignations this past weekend of two top executives, Director
General Tim Davie and news CEO Deborah Turness, amid the growing furor sparked
by the release last week of an internal ombudsman’s report criticizing the Trump
program as well as the BBC’s coverage of the Gaza war.
Trump told Fox News he believes he has “an obligation” to sue the corporation
because “they defrauded the public” and “butchered” a speech he gave.
POLITICO walks you through the possible road ahead — and the potential pitfalls
on both sides of the Atlantic.
WHY IS TRUMP THREATENING TO SUE?
The U.S. president is objecting to the broadcaster’s reporting in a documentary
that aired on Panorama, one of the BBC’s flagship current affairs shows, just
days before the U.S. presidential election.
The program included footage from Trump’s speech ahead of the Jan. 6, 2021
Capitol riot, which was selectively edited to suggest, incorrectly, that he told
supporters: “We’re going to walk down to the Capitol and I’ll be there with you,
and we fight. We fight like hell.”
But those lines were spoken almost an hour apart, and the documentary did not
include a section where Trump called for supporters “to peacefully and
patriotically make your voices heard.”
“I really struggle to understand how we got to this place,” former BBC legal
affairs correspondent Clive Coleman told POLITICO. “The first lesson almost
you’re taught as a broadcast journalist is that you do not join two bits of
footage together from different times in a way that will make the audience think
that it is one piece of footage.”
The U.S. president’s legal team claimed the edit on the footage was “false,
defamatory, disparaging, and inflammatory” and caused him “to suffer
overwhelming financial and reputational harm.”
BBC Chair Samir Shah apologized on Monday for the “error of judgment” in the
edit. Trump’s lawyers said in their letter that they want a retraction, an
apology and appropriate financial compensation — though their client’s
subsequent comments suggest that may not satisfy him at this point.
DO TRUMP’S CLAIMS STAND A CHANCE?
Trump’s lawyers indicated in their letter that he plans to sue in Florida, his
home state, which has a two-year statute of limitations for defamation rather
than the U.K.’s one-year limit — which has already passed.
The U.S. president is objecting to the broadcaster’s reporting in a documentary
that aired on Panorama, one of the BBC’s flagship current affairs shows, just
days before the U.S. presidential election. | Chip Somodevilla/Getty Images
To even gain a hearing, the U.S. president would first need to prove the
documentary was available there. The broadcaster confirmed the Panorama episode
was not shown on the global feed of the BBC News Channel, while programs on
iPlayer, the BBC’s catchup service, were only available in the U.K.
The Trump team’s letter to the BBC, however, claimed the clip was “widely
disseminated throughout various digital mediums” reaching tens of millions of
people worldwide — a key contention that would need to be considered by any
judge deciding whether the case could be brought.
U.S. libel laws are tougher for claimants given that the U.S. Constitution’s
First Amendment guarantees the right to free speech. In U.S. courts, public
figures claiming to have been defamed also have to show the accuser acted with
“actual malice.”
The legal meaning doesn’t require animosity or dislike, but instead an intent to
spread false information or some action in reckless disregard of the truth — a
high burden of proof for Trump’s lawyers.
American libel standards tend to favor publishers more than those in Britain, so
much so that in recent decades public figures angry about U.S. news reports have
often opted to file suit in the U.K. That trend even prompted a 2010 U.S. law
aimed at reining in so-called libel tourism.
Yet Trump’s legal team is signaling it will argue that since the full video of
Trump’s 2021 speech was widely available to the BBC, the editing itself amounted
to reckless disregard and, therefore, actual malice.
BBC Chair Samir Shah apologized on Monday for the “error of judgment” in the
edit. | Henry Nicholls/AFP via Getty Images
“The BBC’s reckless disregard for the truth underscores the actual malice behind
the decision to publish the wrongful content, given the plain falsity of the
statements,” his lawyers wrote.
However, a court battle wouldn’t be without risks for Trump. Prateek Swaika, a
U.K.-based partner with Boies Schiller Flexner, said pursuing litigation “could
force detailed examination and disclosure in connection” with Trump’s Jan. 6
statements — potentially creating “more reputational damage than the original
edit.”
COULD THE BBC SETTLE?
Trump has a long history of threatening legal action, especially against the
press, but has lately had success in reaching out-of-court agreements with media
outlets — including, most notably, the U.S. broadcasters ABC and CBS.
Trump’s latest claim is the flipside of his $20 billion suit against CBS’s “60
Minutes” over an interview with then-Vice President and Democratic presidential
nominee Kamala Harris, which Trump claimed was deceptively edited to make Harris
look good and therefore amounted to election interference.
CBS settled for $16 million in July, paying into a fund for Trump’s presidential
library or charitable causes, though the network admitted no wrongdoing. The
settlement came as CBS’ parent company, Paramount, was pursuing a corporate
merger that the Trump administration had the power to block — and after Trump
publicly said he thought CBS should lose its broadcast license, which is also
granted by the federal government.
The president doesn’t hold that same sway over the BBC, though the organization
does have some U.S.-based commercial operations. Some news organizations have
also opted to fight rather than settle past Trump claims, including CNN, the New
York Times and the Wall Street Journal.
Some news organizations have opted to fight rather than settle past Trump
claims, including CNN, the New York Times and the Wall Street Journal. | Kevin
Dietsch/Getty Images
“Litigation is always a commercial decision and it’s a reputational decision,”
said Coleman, suggesting settlement talks may look appealing compared to
fighting a case that could “hang over the heads of the BBC for many, many years,
like a dark cloud.”
COULD THE BRITISH GOVERNMENT STEP IN?
Despite the BBC’s standing as a state broadcaster, the Labour government has so
far taken a hands-off approach, perhaps unsurprisingly given Prime Minister Keir
Starmer’s ongoing efforts to woo Trump on trade.
No. 10 said on Tuesday that the lawsuit threat was a matter for the BBC, though
Starmer subsequently reiterated his support for it generally.
“I believe in a strong and independent BBC,” Starmer said at prime minister’s
questions Wednesday. “Some would rather the BBC didn’t exist … I’m not one of
them.”
Perhaps eager to stay in Trump’s good books, the PM’s ministers have also
avoided attacking the president and instead walked a diplomatic tightrope by
praising the BBC in more general terms.
Culture Secretary Lisa Nandy on Tuesday reiterated the government’s vision of
the BBC as a tool of soft power.
The BBC documentary did not include a section where Trump called for supporters
“to peacefully and patriotically make your voices heard.” | Brendan
Smialowski/Getty Images
“At a time when the line between fact and opinion, and between news and polemic,
is being dangerously blurred, the BBC stands apart,” Nandy told MPs Tuesday. “It
is a light on the hill for people here and across the world.”
WHO WOULD FUND ANY PAYOUT?
The BBC is funded by the country’s license fee, which requires any household
that has a TV or uses BBC iPlayer to pay £174.50 a year (some people are exempt
from paying). In the year ending March 2025, this accounted for £3.8 billion of
the corporation’s overall £5.9 billion in income. The remaining £2 billion came
from activities including commercial ventures.
Any licence fee revenue that funded a settlement with Trump would likely go down
very poorly as a political matter, given looming tax increases in the U.K. as
well as the U.S. president’s significant unpopularity with British voters.
The corporation lost a €100,000 (£88,000) libel case earlier this year against
former Sinn Féin President Gerry Adams after a Dublin jury found the broadcaster
falsely connected him to a 2006 Irish Republican Army killing, showing there is
a precedent for politicians winning cases.
Responding to a question as to whether license fee payers would fund any legal
sum, Starmer said Wednesday: “Where mistakes are made, they do need to get their
house in order and the BBC must uphold the highest standards, be accountable and
correct errors quickly.”
Singer Cliff Richard also received £210,000 in damages and around £2 million in
legal costs from the BBC in 2019 over a privacy case, though those payments were
within the scope of its legal insurance.
MIGHT AN ALTERNATIVE PAYMENT WORK?
The BBC has paid damages to a foreign head of state before, including
compensating then-Ukrainian President Petro Poroshenko in 2019 for an incorrect
report. But Trump technically faces rules on accepting foreign payments.
There’s every chance that a settlement to Trump could pass through another
vehicle, as the with the CBS agreement. ABC’s settlement involved $15 million to
a Trump-related foundation alongside $1 million for his legal fees.
Trump’s former attorney Alan Dershowitz suggested just that on Tuesday, saying
if the corporation made a “substantial” contribution to a charity “that’s
relevant to the president might put this thing behind them.”
ROME — The conservative think tank behind Donald Trump’s Project 2025 roadmap is
looking for new friends across the Atlantic.
The Heritage Foundation, the intellectual engine behind the 922-page blueprint
that has become the key policy manual for Trump’s second term, is partnering
with a constellation of European nationalist far-right movements to export its
playbook for countering progressive policies.
That included a conference in late October at the frescoed former home of late
premier Silvio Berlusconi in Rome focused on Europe’s demographic crisis and the
idea that falling birthrates pose a threat to Western civilization. Speakers
included Roger Severino, Heritage’s vice president of domestic policy and the
architect of the group’s campaign to roll back abortion access in the U.S., as
well as Italy’s pro-life family minister Eugenia Roccella, the deputy speaker of
the Senate, and members of Italian right-wing think tanks.
Severino and the Heritage Foundation’s president, Kevin Roberts, have also been
speaking guests at summits and assemblies of far-right groups such as Patriots
for Europe, which includes Marine Le Pen’s Rassemblement National and Italy’s
League, under a Make Europe Great Again banner.
Meanwhile Heritage representatives have held private meetings in Washington and
Brussels with lawmakers from far-right parties in Hungary, Czechia, Spain,
France and Germany. Just in the past 12 months, the group held seven meetings
with members of the European Parliament, compared to just one in the five years
prior, according to Parliament records. And they’ve had additional meetings with
MEPs that weren’t formally reported, including with three members from Italian
Prime Minister Giorgia Meloni’s Brothers of Italy party.
Severino told POLITICO that meetings with the European right serve to exchange
ideas. But the meetings signal more than pleasantries. For European politicians,
they’re a way to get access to people in Trump’s orbit. For Heritage, they’re a
way to extend influence beyond Washington and achieve its ideological goals,
which under Roberts have grown increasingly aligned with Trump’s MAGA approach.
Mike Gonzalez, a senior fellow at Heritage, said he meets with conservative
parties to share experience in dealing with common challenges — “comparing
notes, that kind of thing.” He said his interlocutors are “very interested” in
policies on abortion, gender theory, defense and China, adding that parts of
Project 2025 such as a section he wrote on defunding public broadcasters, are
“very transferable” to Europe.
The foundation has been active in Europe for years, he points out, but demand
has increased since Trump’s return to office. European right-wing leaders,
Gonzalez said, “see Trump and what he is doing and say, ‘I want to get me some
of that.’”
BETTER THE SECOND TIME
It’s not the first time MAGA has attempted to galvanize the European right.
Trump’s former strategist Steve Bannon unsuccessfully tried to unite populist
nationalist parties under the Movement think tank in 2019, hamstrung by a lack
of buy-in from the parties themselves.
Some observers are doubtful this renewed push will go differently. “I’m
skeptical that it will amount to much,” said EJ Fagan, an associate politics
professor at the University of Illinois and author of The Thinkers, a book on
partisan think tanks. “The European right have their own resources that produce
policies, so there’s not a lot Heritage can provide to European parties.”
That is especially an issue, Fagan noted, when it comes to finessing
legislation, since Heritage doesn’t have a deep bench of “people who have a fine
understanding of laws and treaties” in Europe.
But the Heritage Foundation’s European mission comes as far-right groups gain
ground across Europe by tapping public frustration over issues such as
immigration, climate policy and sovereignty and pushing policies that are
similar to those laid out in the group’s Project 2025 agenda.
Heritage Foundation’s president, Kevin Roberts, have also been speaking guests
at summits and assemblies of far-right groups such as Patriots for Europe. | Jim
Lo Scalzo/EPA
In Italy, two MPs have proposed legislation granting fetal personhood, which
would make abortion impossible. The regional government in Lazio is preparing to
approve a law that would guarantee protection of the fetus “from conception,”
echoing a similar push in the US. And Rocella, Meloni’s family minister who
appeared last month with Heritage’s Severino, is attempting to block a regional
law banning conscientious objectors from roles in clinics providing abortions.
It’s not just reproductive rights. Meloni’s government has pulled out of a
memorandum of understanding on the Belt and Road Initiative, the Chinese
government’s ambitious program that aims to finance over $1 trillion in
infrastructure investments. It effectively blocked Chinese telecoms giant Huawei
from being a part in telecommunications development.
Lucio Malan, an MP in Meloni’s Brothers of Italy party and a panelist at two
conferences organized with the Heritage Foundation, attempted to reverse a ban
on homophobic and sexist advertisements — though he told POLITICO he took part
in the events on the invitation of the center-right FareFuturo think tank, which
co-organized the events with Heritage.
Heritage and its allies in the Trump administration have everything to gain from
stronger nationalist parties in Europe, which are also pushing for delays in
climate and agriculture regulations and sided with the US and Big Tech on
digital regulation. Earlier this year, Heritage hosted the presentation of
proposals by two far-right European think tanks, Hungary’s Mathias Corvinus
Collegium (MCC) and Poland’s Ordo Iuris Institute for Legal Culture, to overhaul
and hollow out the EU, undermining the commission and the European Court of
Justice.
And Heritage’s activity in Europe comes as the organization faces a swirl of
controversy back home after Roberts sided with right-wing political commentator
Tucker Carlson over criticism for interviewing a white nationalist. The incident
triggered an open revolt against Roberts, who subsequently apologized.
The unexpectedly swift and wide-ranging implementation of Project 2025 in the
U.S. has boosted Heritage’s credentials in Europe, said Kenneth Haar of
Corporate Europe Observatory, a non-profit that monitors lobbying in the EU.
“Trump’s wholesale adoption of their agenda has given them unparalleled status,”
he said. Now, Haar added, Heritage “is not just a think tank from the U.S., it
is a representative of the MAGA coalition. It is not an exaggeration to say they
are carrying out foreign policy on behalf of the president.”
But the Heritage Foundation’s European mission comes as far-right groups gain
ground across Europe by tapping public frustration over issues such as
immigration, climate policy and sovereignty and pushing policies that are
similar to those laid out in the group’s Project 2025 agenda. | Shawn Thew/EPA
For Heritage, there’s good reason to focus on Europe in particular: It has
become a focal point for the group’s donors and activists in the U.S., who fret
about perceived Islamicization and leftist politics on the continent.
“We have an existential interest in having Europe be sovereign and free and
strong,” Gonzalez told POLITICO.
A RALLYING POINT
Historically, Europe’s right has struggled to cooperate, with different factions
representing conflicting national interests. But the machinery underpinning
Trump’s reelection, and his ability to move national policy in European
capitals, has shifted those dynamics, making Heritage “a factor in uniting the
European right,” Haar said.
“MAGA has become a rallying point, the European right is meeting more
frequently,” he added. Trump’s support for their policies also gives them more
“clout” in Europe, he said, as Europe’s leaders seek favor from Trump and his
allies across a range of issues, including tariffs.
Transparency activists said that they’re seeing a notable uptick in activity
that suggests Heritage is gaining traction beyond symposiums and events.
Raphaël Kergueno, Senior Policy Officer at Transparency International, a NGO
advocating against undue political influence, said the group’s activities —
including those undeclared meetings with MEPs, which may put those members in
breach of the European Parliament’s code of conduct — underscores the weakness
of European rules on lobbying and advocacy.
Kenneth Haar added, Heritage “is not just a think tank from the U.S., it is a
representative of the MAGA coalition. It is not an exaggeration to say they are
carrying out foreign policy on behalf of the president.” | Shawn Thew/EPA
“The Heritage Foundation has pushed blatantly anti-democratic projects, and is
now free to court MEPs without disclosing its goals or funding,” he said. “If
the EU does not clean up its act, it will allow hostile actors to import
authoritarianism through the backdoor.”
But Nicola Procaccini, an MEP in Meloni’s party who has held several meetings
with Heritage, dismissed the idea that Heritage presents a danger to the rule of
law or to European politics. He said he has not read Project 2025, and pointed
to the group’s long history as an economic policy powerhouse — though that has
changed in the Trump era, as the group’s new head Roberts has pivoted closer to
Trump.
Nevertheless, he said, “You can share or not share their views … but Heritage is
certainly an authoritative voice.”