Tag - Cost of living

Europe’s center isn’t holding anymore
EUROPE’S CENTER ISN’T HOLDING ANYMORE Despite recent election wins for moderates in the Netherlands, Germany and the U.K., the far right is stronger than ever. By TIM ROSS in Jaywick, England Illustration by Merijn Hos for POLITICO In recent elections, voters in Europe have given hope to embattled centrist politicians across the Western world.   Donald Trump may have romped back into the White House, but the international movement of MAGA-aligned populists has run into trouble across the Atlantic. At elections in the U.K., France, Germany, the Netherlands, Romania — and in a sprawling vote across 27 EU countries for the European Parliament — mainstream candidates defeated populist hardliners and far-right nationalists.  “There remains a majority in the center for a strong Europe, and that is crucial for stability,” European Commission President Ursula von der Leyen said, after the EU Parliament elections last year. “In other words, the center is holding.”   Sixteen months later, that hold is looking anything but secure.    Hard-right and far-right politicians are now leading the polls in France, the U.K. and even Germany. British Prime Minister Keir Starmer’s approval rating is a dire 21 percent. His French counterpart, Emmanuel Macron, is even lower, at 11 percent — and the mood is so grim that this fall’s spectacular theft at the Louvre is being treated by some as a giant metaphor for a country unable to manage its challenges.   Even von der Leyen’s own EU conservatives now rely on the votes of far right lawmakers to get her plans approved in Brussels. One outraged centrist likened the shift to those German politicians who enabled Adolf Hitler to take power. Populists at the extremes, meanwhile, cast themselves as the obvious alternative for populations that want change. And now they can expect Trump to help: In a brutal rupture of transatlantic norms, a new U.S. National Security Strategy aims to use American diplomacy to cultivate “resistance” to political correctness in Europe — especially on migration — and to support parties it describes as “patriotic.” Trump himself told POLITICO he would endorse candidates he believed would move Europe in the right direction. On that rightward trajectory, in the next four years the political map of the West faces its most dramatic upheaval since the Cold War. The implications for geopolitics, from trade to defense, could be profound.   “What [Europeans are] getting from Trump is the strategy of maximum polarization that hollows out the center,” said Will Marshall from the Progressive Policy Institute, the centrist American think tank that backed Bill Clinton in the 1990s. “The old established parties of left and right that dominated the post war era have gotten weaker,” he said. “The nationalist or populist right’s revolt is against them.”  Nowhere is this recent transformation more dramatic than in the U.K.   As the sun sinks toward the horizon over a calm sea one Thursday evening in November, half a dozen regulars huddle around the bar in the Never Say Die pub, a few yards from the beach at Jaywick Sands, on the east coast of England.   Built in the 1930s as a resort 70 miles from London, Jaywick is now the most deprived neighborhood in the country. The area had such a bad image that in 2018 a U.S. MAGA ad used a photograph of a dilapidated Jaywick street to warn of the apocalyptic future facing America if Trump’s candidates were not elected.   Jaywick was named England’s most deprived neighbourhood in October — for the fourth time since 2010. | Tolga Akmen/EPA It is here among the pebbledashed bungalows and England flags hanging limp from lampposts that a new political force — Nigel Farage’s rightwing Reform UK — has built its heartland.   At the bar, Dave Laurence, 82, says he doesn’t vote, as a rule, but made an exception for Farage, who was elected to represent the area last year. “I quite like him. He’s doing the best he can,” Laurence says as he sips his pint of lager, with ’80s pop hits playing in the background. “I’ll vote for him again.”  Laurence freely describes himself as “racist” and says he would never vote for a Black person, such as the center-right Conservative Party’s leader Kemi Badenoch. What troubles him most, he says, is the number of immigrants who have arrived in the U.K. during his lifetime, especially those crossing the Channel in small boats. Soon, Laurence fears, the country will be “full of Muslims and they’ll fucking rebel against us.”  With its anti-establishment, immigration-fighting agenda, Farage’s Reform UK offers voters a program tightly in tune with far-right parties that have gained ground across the West. According to opinion polls, Farage now has a real chance of becoming the U.K.’s next prime minister if the vote were held today. (A general election is not due until 2029).   It’s startling to note that as recently as July 2024, Starmer’s Labour Party won a historic landslide and some of his triumphant election aides traveled to the U.S. to advise Democrats on strategy. Today, Starmer is derided as “First Gear Keir” as he fights off leadership rivals rumored to be trying to oust him. And Reform isn’t the only force remaking British party politics. To the left of Labour, the Greens have also made recent gains in the polls under a new leader calling himself an “eco-populist.”   Farage’s stunning rise from the sidelines to the front of a political revolution carries lessons well beyond Britain’s borders. Europeans raised in the old school of mainstream politics fear that the traditional centerground — their home turf — will not hold.   ‘DURABLY UNSTABLE’   Macron, for his part, tried to counter the rise of the hard right by calling a snap election for the French National Assembly last year. The gamble backfired, delivering a hung parliament that has been unable to agree on key economic policies ever since. Macron is now historically unpopular.   French lawmakers’ clashes over the budget have toppled three of Macron’s picks as prime minister since the summer of 2024. A backlash against his plan to raise the pension age has forced ratings agencies to mull a damaging downgrade. Macron, who himself became president by launching a new centrist movement to rival the political establishment, now has no traditional party machinery to help bolster his position. “He’ll leave a political landscape that is perhaps durably unstable. It’s unforgivable,” said Alain Minc, an influential adviser and former mentor to the French president.  The chaos gives populists their chance. The main politicians making any running in conversations about the next presidential election belong to the far-right National Rally of Marine Le Pen and its youthful party president Jordan Bardella, who are riding high in the polls at 34 percent.   In Germany, too, the center ground is steadily eroding.   Though Chancellor Friedrich Merz’s conservatives won a snap election in February, his ideologically uneasy coalition, which consists of his own conservative bloc and the center-left Social Democratic Party (SPD), holds one of the slimmest parliamentary majorities for a government since 1945, with just 52 percent of seats. That leaves the Merz coalition vulnerable to small defections within the ranks and makes it hard for him to achieve anything ambitious in government. The far-left Die Linke party and the far-right Alternative for Germany (AfD) both surged at the last election, too, with AfD winning the best result in a national election for any far-right party since World War II.  Merz’s attempt to defang the AfD by moving his conservatives sharply to the right on the issue of migration seems to have backfired. The AfD has only continued its rise, surpassing Merz’s conservatives in many polls.   The rise of the far-right is a cultural shock to many centrist Germans, given the country’s deeply entrenched desire to avoid repeating its past. “For a long time in Germany we thought with our history, and the way we teach in our schools, we would be a bit more immune to that,” one concerned German official said. “It turned out we are not.”   Even in the Netherlands, where centrist Rob Jetten won a famous but narrow victory over the far-right firebrand Geert Wilders in October, there are reasons for mainstream politicians to worry. Wilders’ Freedom Party is still one of the biggest forces in the land, winning the same number of seats as Jetten’s D66. He could well return next time, just as Trump did in the U.S.   WHERE DID ALL THE VOTERS GO?   According to polling firm Ipsos, a large proportion of voters in many Western democracies now have little faith in the political process. While they still believe in democratic values, they are dissatisfied with the way democracy is working for them.   A large survey questioning around 10,000 voters across nine countries found 45 percent were dissatisfied, fueling support for the extremes. Among voters on the far left (57 percent) and the far right (54 percent), levels of dissatisfaction were highest of all.   The countries with the highest rates of dissatisfaction in the Ipsos study were France and the Netherlands, where political upheaval has taken its toll on faith in the system.   Anti-riot police officers stand next to a demonstration called by far-right activist Els Rechts against the Netherlands’ current asylum policy, in September in The Hague. | Josh Walet/ANP via Getty Images Alongside the coronavirus pandemic and the aftermath of lockdowns, the biggest drivers of dissatisfaction were the cost of living, immigration and crime, according to Gideon Skinner from Ipsos. Trust in politics fell in the 90s and took another hit in the late 2000s at the time of the financial crash, he said.   “There may be specific things that have made it worse over the last couple of years but it’s also a long-term condition,” Skinner told POLITICO. “It’s something we do need to worry about and there is not a silver bullet that can fix it all.”  Perhaps the greatest problem for incumbent centrists is that in most cases their economies are so moribund that they lack the fiscal firepower to spend money addressing the issues disillusioned voters care about most — like high living costs, ailing public services and migration.  THE INEQUALITY EMERGENCY   The financial crisis of 2008 and the coronavirus lockdowns of 2020-21 left many governments strapped for cash. In the U.K., for example, the economy was 16 percent smaller than it should have been a decade after the 2008 crash if prior growth trends had continued, according to Anand Menon, professor of European politics at King’s College London.   “Crucially, the impact of the financial crisis, like the impact of so much else in our politics, was massively unequal,” Menon said. “Prosperous places with high productivity, with well-educated workforces suffered far, far less than poorer parts of the country.”   Nobel Prize-winning economist Joseph Stiglitz submitted a study to the G20 in November warning that the world was facing an “inequality emergency.” Fueled by war, pandemic and trade disruptions, the crisis risks preparing the ground for more authoritarian leaders, his report said.   In many Western countries, the centerground is more than just a metaphor. It is in capital cities like London, Paris and Washington that power and money accumulate and the economic and political elites seek to maintain their grip on the status quo.   The further you travel from these centers out to areas in decline, the more likely you are to find support for radical politics.   As Menon notes, Britain’s 2016 revolution — the referendum vote to leave the European Union after almost half a century of membership — can be mapped onto the culinary geography of the country.   “Pret a Manger” is a smart national chain of sandwich and coffee shops, catering for hungry commuters and office workers in wealthy, successful British cities. “Places that had a Pret voted Remain,” Menon said. Parts of the U.K. where median wages were lower were disproportionately likely to vote to leave the EU.   IMMIGRATION, IMMIGRATION, IMMIGRATION   After the Brexit vote in 2016, immigration slid from the top of the priority list for British voters and Farage himself took a step back. Both have now returned, as Farage rides a wave of headlines about irregular migrants landing in small boats from France.   From January to May this year, there were a record 14,800 small boat crossings, 42 percent more than in the same period in the previous year, according to Oxford University’s Migration Observatory.   For Laurence, in the Never Say Die pub, the small boats represent the biggest issue of all. “What’s going to happen in 10 years’ time? What’s going to happen in 20 years’ time when the boat people are still coming over?” he asked.   A decade ago, German Chancellor Angela Merkel opened the doors to hundreds of thousands of refugees arriving into Europe from Syria, as well as Afghanistan and Iraq. The AfD surged in the months that followed, permanently changing German politics. At February’s election, the AfD won a record 21 percent of the vote, finishing in second place behind Merz’s conservative bloc.  “The fundamental failure that is common to the whole [centrist] transatlantic community is on immigration,” said Marshall from the Progressive Policy Institute. “All of the far-right movements have made it their top issue.”   It is the perceived threat that waves of migration pose to traditional national cultures which drives much of the support for the far right. Trump’s White House is now primed to join the European nationalists’ fight. According to a new U.S. National Security Strategy document released in December, Europe is facing “civilisational erasure” from unrestricted immigration, as well as falling birthrates. The analysis draws on the so-called great replacement theory, a racist conspiracy theory. Free speech — in the MAGA definition, at least — is another casualty of conventional centrist rule in Europe, as political correctness veers into “censorship,” the U.S. document said. Protesters demostrate under the motto “Loud against Nazis” in early February in Berlin. After years of decline, The Left party  pulled off a stunning revival in the general election later that month. | John MacDougall via AFP/Getty Images In his interview with POLITICO earlier this week, Trump aligned himself fully with the strategy paper. European nations are “decaying” and their “weak” leaders can expect to be challenged by rivals with American support, he said. “I’d endorse,” he added. In Brussels, the double-punch of the president’s interview and the strategy document left diplomats and officials feeling bruised and alarmed all over again, after a period in which they allowed themselves to hope that the transatlantic alliance wasn’t dying. One EU diplomat was blunt in assessing Trump’s new method: “It’s autocracy.” THE STOLEN JEWELS  Sometimes, it takes a random news event — ostensibly unconnected to politics — to crystalize the national mood. In Paris, the theft of France’s priceless crown jewels from the Louvre provided just such an opportunity, morphing into an indictment of an establishment that can’t get the job done, even when the job simply involves thoroughly locking the windows at the world’s most famous museum. National Rally leader Jordan Bardella called the incident a “humiliation” before asking: “How far will the breakdown of the state go?”   In Britain, just a month after Starmer’s victory last year, riots broke out across the country, fueled by far-right extremists. The catalyst was the murder of three young girls aged 6, 7 and 9, in Southport, northwest England, by a Black teenager wrongly identified at the time on social media — in posts amplified by the far-right — as a Muslim.   At the time, Farage suggested the police were withholding the truth about the suspect, earning him the fury of mainstream politicians. While stressing he did not support violence, Farage railed against what he called “two-tier policing,” a phrase popular among far-right commentators who claim police treat right-wing protesters more harshly than those on the left.  It’s an opinion that resonates in Jaywick. Chennelle Rutland, 56, is walking her two dogs along the beachfront, admiring the view as the sun sets, flaring the sky orange, then purple. The colors catch the surface of the flat sea. “It’s one rule for one and one rule for the other,” she says. “The whites have got to shut up because if you do say anything, you’re ‘racist’ and ‘far right.’”   Far-right activist Tommy Robinson invited his supporters to attend the “Unite The Kingdom” rally in September. | Christopher Furlong/Getty Images It would be wrong to characterise residents of Jaywick as simply ignorant or full of rage. Many who spoke to POLITICO there were cheerful, happy with their community and up to speed with the news. But, just as they’d soured on their country’s centrist establishment, they were also tuning out its favored news sources.   In Jaywick, some of Farage’s voters prefer GB News, Britain’s answer to Fox News, which launched in 2021, or learn about current affairs from YouTube and other social media. The BBC — for decades the mainstay of the British media landscape — has lost a portion of its audience here. Right-wing commentators and politicians attack it as biased. Trump has lately joined in, threatening to sue over a BBC edit that he said deceptively made it look as if he was explicitly inciting violence. The BBC’s director general and head of news both resigned. In the process, another piece of Britain’s onetime centerground was giving way.   WHAT NEXT?   There are reasons for centrists to hope. In Rome, Giorgia Meloni’s hard-right Brothers of Italy party has become less extreme in power, and the worst fears of moderates about a group with its historic roots in neo-fascism have not come to pass. She remains popular, and while pushing a culture war at home, she has avoided the wrath of the EU leadership and kept Trump onside.   Populists and nationalists don’t always win. Trump lost in 2020. In the Netherlands, Wilders lost in October this year, though only by a whisker. Romania’s Nicușor Dan won the presidency as a centrist in May, but again only narrowly defeating his far-right opponent.   Structural obstacles may also slow the radicals’ progress. The U.K.’s first-past-the-post voting system makes it hard for new parties to do well. The two-round French system has so far stopped Le Pen’s National Rally from gaining power as centrists combine to back moderates. In Germany, a similar “firewall” exists under which center parties keep the far-right out.   After the Brexit vote in 2016, immigration slid from the top of the priority list for British voters and Farage himself took a step back. Both have now returned. | Tolga Akmen/EPA Even as he enjoys a sustained lead in the polls and wins local elections in the U.K., Farage has not convinced voters that Reform would do a good job. Even some of his supporters worry he will be out of his depth in government.   The problem, for the centrists who are in power, is that a lot of voters seem to think they, too, are out of their depth. And, whether that involves dealing with migration, combatting inequality, or just boosting the security around the Mona Lisa, it’s a reputation they’ll need to fix in order to survive — no easy task given the intractability of the challenges facing the rich world.  The next year will see more elections at which the centrists — and their populists rivals — will be tested. In Hungary Prime Minister Viktor Orbán, long seen as the far-right bad boy of EU politics, is fighting to keep power at an election expected in April. There are regional votes in Germany where the AfD is on track to prosper. France may require yet another snap election to end its political paralysis. Trump’s diplomats and officials will be ready to intervene. Farage’s party, too, will be on the ballot in 2026: It is expected to make gains in Wales, Scotland and local votes elsewhere next spring. After that, his sights will be on the U.K. general election expected in 2029, by which time European politics may look very different.   “Of course I know Mr. Orban and of course I know Giorgia Meloni, of course I know these people,” Farage told POLITICO at a recent Reform rally. “I suspect that after the next election cycle in Europe there will be even more that I know.” Natalie Fertig in Washington, Clea Caulcutt in Paris and James Angelos in Berlin contributed to this report.  
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PMQs: Badenoch pokes fun at Starmer’s leadership rivals
Prime minister’s questions: a shouty, jeery, very occasionally useful advert for British politics. Here’s what you need to know from the latest session in POLITICO’s weekly run-through. What they sparred about: Labour’s internal woes. Tory Leader Kemi Badenoch couldn’t resist using the penultimate PMQs of 2025 to land a punch by bringing up Prime Minister Keir Starmer’s future, as rumors about his political survival continue to swirl. They’re behind you! Badenoch asked the PM why Labour MPs were “describing him as a caretaker prime minister.” That framing wasn’t helped by the influential think tank Labour Together canvassing party members about possible leadership runners and riders. Starmer brushed off that initial attack by claiming his own MPs were “very proud” of the budget and focused on “the single most important issue,” i.e., the cost of living. State of secretaries: The Tory leader said Starmer “has lost control of his party” and Cabinet ministers were “so busy trying to replace him that they have taken their eyes off the ball.” She then worked through contenders often mooted — probing the PM on their records in respective Whitehall departments. Igniting the fires: Badenoch said Energy Secretary Ed Miliband was trying to “recycle himself as leader” despite Starmer’s predecessor but one insisting he didn’t want to become Labour leader again. Then followed a spat about energy bills, though Starmer highlighted Badenoch’s own difficulty, with plenty of ex-Tories jumping ship to Reform UK. The “real question is who’s next,” he joked. Playground banter: “He could power the national grid on all of that hot air,” the Tory leader cried, turning her attention to Education Secretary Bridget Phillipson and teacher numbers (Labour promised 6,500). The PM tore into the Conservatives’ record on education, saying “they should be utterly ashamed.” Cop out: “Wrong,” Badenoch dismissively replied, having another go on police numbers (managed, of course, by Home Secretary and darling of the Labour right, Shabana Mahmood). The PM said there would be “3,000 more by the end of March” and Badenoch should “get up and say sorry” for their time in government. “Wrong,” the Tory leader mused again. More in anger than in sorrow: Despite the rapid range of policies, Badenoch tied her criticism together by stating “everything is getting worse” and, quoting the famous Saatchi & Saatchi poster, “Labour isn’t working.” Starmer wasn’t going down without a fight, calling the Tory leader “living proof you can say whatever you like when nobody is listening to anything you have to say.” So much for the season of goodwill … Helpful backbench intervention of the week: York Central MP Rachael Maskell deplored the Tories’ attitude to child poverty and highlighted Labour’s work managing this issue. The PM, breathing a sigh of relief to bag a friendly question from the often Labour rebel, plugged the government’s work with a dig at Badenoch for good measure. Oh, and: Dartford MP Jim Dickson ripped into Reform UK’s governance of Kent County Council, claiming their so-called DOGE unit actually stood for “deluded, overconfident, gormless and embarrassing.” Starmer was more than happy, listing their eventful spell across local government since May and slamming comments by Reform politicians. Totally unscientific scores on the doors: Starmer 5/10. Badenoch 7/10. The endless internal Labour rows about Starmer’s future and the party’s languishing popularity gave the Tory leader a plethora of material. Though not sticking to one topic, Badenoch used possible contenders as a springboard to flag the government’s policy challengers. The PM rightly raised the Tories’ own problems with Reform UK and terrible polling numbers, but struggled to brush off the narrative that his time in No 10 is numbered.
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Trump thrashes European leaders: ‘I think they’re weak’
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.”
Defense
Middle East
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‘Generation war’ dogs pension debates in France and Germany
PARIS — A generational reckoning is brewing in Paris and Berlin, where a new wave of younger politicians is putting pensioners on notice: The system is buckling and can’t hold unless retirees do more to help fix it. Culture, language and local politics may add a distinct flavor to each debate, but the European Union’s two biggest economies are dealing with the same issue — how to pay for the soaring costs associated with the retirement of baby boomers.   The problem is both demographic and financial. Declining birthrates mean there aren’t enough young people to offset the boom in retirees at a time when economic growth is sluggish, salaries have stagnated and purchasing power isn’t evolving at the same rate as it did for previous generations. And with the cost of real estate skyrocketing, young people feel that buying a home and other opportunities afforded to their parents’ generation are increasingly out of reach.  With budgets already strapped thanks to priorities such as rearmament in the face of Russian aggression, reindustrialization and the green transition, a growing number of young politicians from the center to the right of the political spectrum are calling out retirees for not contributing to the solution.  Some lawmakers in Germany, like 34-year-old Johannes Winkel, are calling for greater “intergenerational justice.” The 38-year-old French MP Guillaume Kasbarian is going a step further, arguing France should rethink its pay-as-you-go system — similar to Germany’s — in which current workers fund retirees’ pensions through taxes. The 38-year-old French MP Guillaume Kasbarian is going a step further, arguing France should rethink its pay-as-you-go system — similar to Germany’s — in which current workers fund retirees’ pensions through taxes. | Amaury Cornu/Hans Lucas/AFP via Getty Images Targeting pensioners is a politically dangerous proposition. They are a reliable voting constituency, heading to the ballot box in greater numbers than younger generations — and they lean centrist. German Chancellor Friedrich Merz’s conservative bloc got an estimated 43 percent of the vote among people aged 70 and above in February’s general election, and older voters helped Macron secure reelection in 2022.  French Budget Minister Amélie de Montchalin told lawmakers last month that she didn’t “want to trigger a generation war” over the government’s fiscal plans for next year.  But she — and her counterparts across the Rhine — may not have a choice. ‘FAIR TO ALL GENERATIONS’ Lawmakers in France are sparring this week over a highly contentious plan to freeze inflation adjustments on pension payments next year, part of a wide-ranging effort to trim billions of euros from the budget and get the deficit below 5 percent of gross domestic product. The debate in France echoes similar conversations in Germany, where Winkel is among a group of young conservatives who rebelled against a pension reform package put forth by Merz’s government, saying current benefits for older people are too generous and asking for a plan that is “fair to all generations.”   A group of leading economists argued in an op-ed in German newspaper Handelsblatt that Merz’s proposed pension package would be “to the detriment of the younger generation, who are already under increasing financial pressure.”   The leaders of Germany’s coalition set out to resolve the dispute last week, with Merz vowing to take on a second, more far-reaching set of pension reforms as early as next year.   Winkel is among a group of young conservatives who rebelled against a pension reform package put forth by Merz’s government, saying current benefits for older people are too generous and asking for a plan that is “fair to all generations.”  | Photo by Nadja Wohlleben/Getty Images But it’s unclear whether that proposal has appeased all young conservatives. In a letter this week, the group said its 18 lawmakers would decide individually how they will vote on the immediate pension package, which is set to go for a vote on Friday. Every vote will matter, as Merz’s fragile coalition has a majority of only 12 parliamentarians. On Tuesday, Merz’s center-right bloc held a test vote to see if there was enough conservative support to pass the pension reform package. The results of the internal vote were unclear. Opinion surveys in Germany and France show that much of the public favors protecting existing pension systems and benefits. Leftist parties in both countries have also strongly pushed back against measures that would freeze or lower pension benefits, arguing that the public pension system is a core element of social cohesion. But intergenerational cracks are emerging.  “Measures on pensions show a generational cleavage: They are massively rejected by pensioners but supported by nearly one out of two in the younger generation (18-24),” according to an analysis from French pollster Elabe published in October.  In another poll from Odoxa, a small majority of working-age people in France agreed that current pensioners are “better off because they were able to leave earlier than those still working.” KEY DIFFERENCES There are key differences between France and Germany, however. Pension benefits in France are far more generous than in Germany, and help keep the poverty rate among people aged 65 and above lower than that of the general population.  The opposite is true in Germany, where the over-65 population is worse off than those younger than 65, in part because public pensions became comparatively lower after pension reforms passed in the 2000s.  Ultimately, however, demographics and economics vary so much from one generation to another that it’s almost impossible to make a pension system “fair,” according to Arnaud Lechevalier, an economist at the Paris 1 Panthéon-Sorbonne University. The idea that each generation can have the same return on investment on their working-aged contributions is, in Lechevalier’s words, “a deeply stupid idea.”
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Everything policy pros need to know about the UK budget
LONDON — The wait is finally over. After weeks of briefings, speculation, and U-turns, Chancellor Rachel Reeves has set out her final tax and spending plans for the year ahead. As expected, there is plenty for policy wonks to chew over. To make your lives easier, we’ve digested the headline budget announcements on energy, financial services, tech, and trade, and dug deep into the documents for things you might have missed.  ENERGY  The government really wants to bring down bills: Rachel Reeves promised it would be a cost-of-living budget, and surprised no one with a big pledge on families’ sky-high energy bills. She unveiled reforms which, the Treasury claims, will cut bills by £150 a year — by scrapping one green scheme currently paid for through bills (the Energy Company Obligation) and moving most of another into general taxation (the Renewables Obligation). The problem is, the changes will kick in next year at the same time bills are set to rise anyway. So will voters actually notice? The North Sea hasn’t escaped its taxes: Fossil fuel lobbyists were desperate to see a cut in the so-called Windfall Tax, which, oil and gas firms say, limits investment and jobs in the North Sea. But Rachel Reeves ultimately decided to keep the tax in place until 2030 (even if North Sea firms did get a sop through rules announced today, which will allow them to explore for new oil and gas in areas linked to existing, licensed sites.) Fossil fuel lobbyists, Offshore Energies UK, were very unimpressed. “The government was warned of the dangers of inaction. They must now own the consequences and reconsider,” it said. FINANCIAL SERVICES Pension tax changes won’t arrive for some time: The widely expected cut in tax breaks for pension salary sacrifice is set to go ahead, but it will be implemented far later than thought. The thresholds for exemption from national insurance taxes on salary sacrifice contributions will be lowered from £60,000 to £2,000 in April 2029, likely to improve forecasts for deficit cuts in the later years of the OBR’s forecasts. The OBR has a markets warning: The U.K.’s fiscal watchdog warned that the price-to-earnings ratio among U.S. equities is reminiscent of the dotcom bubble and post-pandemic rally in 2021, which were both followed by significant market crashes. The OBR estimated a global stock market collapse could cause a £121 billion hike in U.K. government debt by 2030 and slash U.K. growth by 0.6 percent in 2027-28. Even if the U.K. managed to stay isolated from the equity collapse, the OBR reckons the government would still incur £61 billion in Public Sector Net Financial Liabilities. Banks back British investments: British banks and investment houses have signed an agreement with the Treasury to create “invest in Britain” hubs to boost retail investment in U.K. stocks, a plan revealed by POLITICO last week. Reeves also finally tabled a cut to the tax-free cash ISA allowance: £12,000 from spring 2027 (the amount and timings also revealed by POLITICO last week), down from £20,000, with £8,000 slated for investments only. Over-65s will keep the full tax-free subscription amount. Also hidden in the documents was an upcoming consultation to replace the lifetime ISA with a “new, simpler ISA product to support first-time buyers to buy a home.” No bank tax: Banks managed to dodge a hike in their taxes this time, despite calls from the IPPR for a windfall-style tax that could have raised £8 billion. The suggestions (which also came from inside the Labour Party) were met with an intense lobbying effort from the banks, both publicly and privately. By the eve of the budget, City figures told POLITICO they were confident taxes wouldn’t be raised, citing the high rate of tax they already pay and Reeves’ commitment to pushing for growth through the financial services industry. TECH ‘Start, scale, stay’ is the new mantra:  Startup founders and investors were in panic mode ahead of the budget over rumored plans for an “exit tax” on wealthy individuals moving abroad, but instead were handed several wins on Wednesday, with Reeves saying her aim was to “make Britain the best place in the world to start up, to scale up and to stay.” She announced an increase in limits for the Enterprise Manage Scheme, which incentivizes granting employees share options, and an increase to Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) thresholds to facilitate investment in growing startups. A further call for evidence will also consider “how our tax system can better back entrepreneurs,” Reeves announced. The government will also consider banning non-compete clauses — another long-standing request from startups. Big Tech will still have to cough up: A long-standing commitment to review a Digital Services Tax on tech giants was quietly published alongside the budget, confirming it will remain in place despite pressure from the Trump administration. The government will ‘Buy British’ on AI: Most of the government’s AI announcements came ahead of the budget — including plans for two new “AI Growth Zones” in Wales, an expansion of publicly owned compute infrastructure — meaning the only new announcements on the day were a relatively minor “digital adoption package” and a commitment to overhaul procurement processes to benefit innovative tech firms. But the real point of interest on AI came in the OBR’s productivity forecasts, which said that despite the furor over AI, the technology’s impacts on productivity would be smaller than previous waves of technology, providing just a 0.2 percentage point boost by 2030. The government insists digital ID will ultimately lead to cost savings. | Andrea Domeniconi/Getty Images OBR delivers a blow to digital ID: The OBR threw up another curveball, estimating the cost of the government’s digital ID scheme at a whopping £1.8 billion over the next three years and calling out the government for making “no explicit provision” for the expense. The government insists digital ID will ultimately lead to cost savings — but “no specific savings have yet been identified,” the OBR added. TRADE  Shein and Temu face new fees: In a move targeted at online retailers like Shein and Temu, the government launched a consultation on scrapping the de minimis customs loophole, which exempts shipments worth less than £135 from import duties. These changes will take effect from March 2029 “at the latest,” according to a consultation document. Businesses are being consulted on how the tariff should be applied, what data to collect, whether to apply an additional administration fee, as well as potential changes to VAT collection. Reeves said the plans would “support a level-playing field in retail” by stopping online firms from “undercutting our High Street businesses.”  Northern Irish traders get extra support: Also confirmed in the budget is £16.6 million over three years to create a “one-stop shop” support service to help firms in Northern Ireland navigate post-Brexit trading rules. The government said the funding would “unlock opportunities” for trading across the U.K. internal market and encourage Northern Ireland to take advantage of access to EU markets.  There’s a big question mark over drug spending: Conspicuously absent was any mention of NHS drug spending, despite U.K. proposals to raise the cost-effectiveness threshold for new drugs by 25 percent as part of trade negotiations with the U.S., suggesting a deal has not yet been finalized. The lack of funding was noted as a potential risk to health spending in the Office for Budget Responsibility’s Economic and Fiscal Outlook, which was leaked ahead of the budget. 
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Markets give a cautious welcome to Reeves’ messy UK budget
LONDON — Financial markets gave a cautious welcome to Chancellor Rachel Reeves’ budget — to the extent that they could make sense of it. The presentation of the U.K. government’s fiscal plans for the next year was badly disrupted when the Office for Budget Responsibility accidentally published its analysis of the bill before Reeves had even announced it in parliament. That forced investors into a frantic search for its key details. As the initial uncertainties lifted, the pound rose by 0.2 percent against the dollar and a little more against the euro, on the key takeaway that the annual tax take will rise by £26 billion by the 2029-2030 fiscal year. That will squeeze the budget deficit and give Reeves more room for maneuver in the event of a fresh downturn. “The Chancellor more than doubled her fiscal headroom from around £10 billion to just under £22 billion,” Deutsche Bank analyst Sanjay Raja said in a note to clients. Such considerations should reduce the U.K.’s vulnerability to swings in global financial markets, which has been exposed more than once in a year when U.S. President Donald Trump has upended the global trading order. Investors had worried all year that a global economic slowdown could push Britain in the direction of a debt crisis. But Reeves now estimates the budget deficit will fall to 1.9 percent of GDP by 2030, from 4.5 percent of GDP in the current year. That will stabilize the debt ratio well below 100 percent of GDP, but at a cost. By freezing income tax thresholds for the rest of this parliament, and by a host of smaller measures, Reeves will raise the overall tax take to a record 38 percent of gross domestic product, according to the OBR. The new debt trajectory generated a measure of relief in bond markets, visible in a drop of 0.05 percentage points in the government’s key 10-year borrowing cost to 4.44 percent by 2 p.m. in London. That was the lowest since the leak of Reeves abandoning her planned increase in income tax rates two weeks ago. It also fed through into slightly stronger expectations of interest rate cuts from the Bank of England. The two-year gilt yield, which closely tracks expectations of the Bank Rate, fell 0.03 percentage points to a 15-month low of 3.74 percent. Reeves was careful to avoid the mistakes of her last budget which, by raising regulated prices sharply, drove headline inflation back to 4 percent over the summer. In her statement on Tuesday, she went in the other direction, freezing rail and bus fares and removing some of the government-directed charges on energy bills. The OBR said these measures would take 0.4 percent off the rate of inflation over the next year. “I have cut the cost of living with money off bills and prices frozen,” Reeves said. Deutsche’s Raja said the measures would have a “modest but meaningful” impact on inflation, making the Bank’s job “slightly easier” for the next 12 months. The Bank of England held off from cutting the key Bank Rate at its latest Monetary Policy Committee meeting this month, despite increasingly signs of the job market weakening. Most analysts had said at the time they would expect a cut in December, as long as the budget didn’t add to inflationary pressures.
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Inequality is a problem on the scale of climate change, say eminent economists
The problem of inequality has become so pressing that it needs coordinated global action to address it, a group of over 500 economists and scientists said on Friday. The group, which includes former Treasury Secretary and Federal Reserve Chair Janet Yellen along with French economist Thomas Piketty and Nobel Prize winner Daren Acemoglu, called in an open letter for the creation of a body akin to the UN’s Intergovernmental Panel on Climate Change (IPCC) to coordinate action against what it saw as disastrous effects on modern society. “We are profoundly concerned, as they are, that extreme concentrations of wealth translate into undemocratic concentrations of power, unravelling trust in our societies and polarising our politics,” read the letter, referring to the findings of a G20 research committee led by noted American economist Joseph Stiglitz. Just last week, shareholders of electric vehicle company Tesla voted to award the company’s CEO, Elon Musk, a pay package potentially worth $1 trillion, the largest in history. Musk, also the owner of social media platform X, is already the richest man in the world. The IPCC has spearheaded the collection and dissemination of the scientific consensus on climate change over the past four decades and acted as a powerful force to push green policy forward. The economists said a new “International Panel on Inequality” would play a similar role, gathering evidence and pushing governments to act to tackle wealth gaps.  The proposal was first contained in a recent report on inequality authored by a G20 research committee led by Stiglitz, who focused on inequality in his time as chief economist at the World Bank in the 1990s. The report found that between 2000 and 2024, the richest 1 percent of humanity had accumulated 41 percent of all new wealth — versus the 1 percent that had gone to the bottom half of the global population. That’s equal to an average gain of $1.3 million for the top 1 percent, versus $585 for people in the poorest half. There have been marked political consequences of these large differences between the rich and the poor, with the report finding that countries with high levels of inequality were “seven times more likely to experience democratic decline than more equal countries.”  Stiglitz said in an interview with POLITICO that the growing gap between rich and poor is evidence that the past four decades of middle-of-the-road governance on both sides of the Atlantic has failed. Populists across the West, including U.S. President Donald Trump, had seized the moment, playing on the grievances that failure had stoked, he said.  “I do think that centrist politicians on both sides of the Atlantic bought into the neoliberal fantasy that if you had trade liberalization, financial liberalization, privatization, you would have more growth, and trickle-down economics would make sure that everyone would benefit,” said Stiglitz.  He praised the recent victory of the Democratic Socialist mayor-elect of New York, Zohran Mamdani, who he said was addressing people’s everyday concerns, in contrast to politicians of both the center-left and center-right. Mamdani, who last week surged to victory after defeating both Democratic rival Andrew Cuomo and Republican contender Curtis Sliwa, ran a strikingly effective media campaign centered on the city’s spiraling cost of living. His platform included promises to provide free bus travel, state-owned supermarkets and rent-controlled apartments.   Stiglitz, who described himself as “very market friendly,” nonetheless said he thought the left-wing mayor had opened up space for debate. Zohran Mamdani, who last week surged to victory after defeating both Democratic rival Andrew Cuomo and Republican contender Curtis Sliwa, ran a strikingly effective media campaign centered on the city’s spiraling cost of living. | Sarah Yenesel/EPA “He’s saying things that are important to people: things like housing, food, transport, health care,” said Stiglitz. “He’s just ticking down the list of things that make for the necessities of a decent life, and he’s saying things aren’t working right.”  Stiglitz won his Nobel Prize in 2001 for work on information asymmetries in markets, and served as a chief economist at the World Bank and as chair of the Council of Economic Advisers during former President Bill Clinton’s administration, where he had a famously rocky relationship with Treasury Secretary Larry Summers. With its embrace of globalization and the Internet revolution, Clinton’s team was hugely influential in drawing the parameters for the modern world economy. The influential economist said that tackling inequality wasn’t just a moral choice, but a political necessity. He added that the yawning gap between the rich and poor was undermining the U.S. in its economic and technological competition with China. “[The U.S.] won’t win if we are a divided society, a polarized society,” said Stiglitz, echoing rhetoric of the last Cold War. “The greatest weakness in the U.S. today is this division.”
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Keir Starmer, climate leader (when the Treasury lets him)
LONDON — Keir Starmer loves to play the climate leader. But only when his political advisers (and the powerful Chancellor Rachel Reeves) tell him he’s allowed. The green-minded U.K. prime minister flies into the COP30 summit in Brazil Thursday, armed with undeniable climate credentials. His government is pressing ahead with a 2050 net zero target, even as right-wing political rivals at home run away from it. It is about to hand 20-year contracts, laden with financial guarantees, to companies developing offshore wind farms. Just by attending COP, Starmer has shown he’s willing to publicly back the faltering global climate cause, despite furious attacks on the green agenda by close ally Donald Trump. But his claim to global leadership comes with a catch. Action on climate change is also tied to the political agenda back home, where Starmer and Reeves insist they are focused on bringing down bills and driving economic growth. As the prime minister flies in and out of Brazil this week, those key themes dominate. In a speech on Tuesday, Reeves pledged to “bear down” on the national debt and focus on the cost of living — even it requires “hard choices” elsewhere. Climate is no exception. SHY GREEN It was Starmer’s “personal decision” to go to Brazil, U.K. Climate Minister Katie White told a pre-COP event in London on Tuesday. It was reported in the run-up to the summit that he would skip Brazil, amid concerns among his top political aides about the optics of a jaunt to South America to talk climate while voters — disillusioned with Starmer and Labour — struggle with the cost of living at home and brace for tax rises expected in the budget. In the end, Starmer opted to go. But the absence of a full traveling press delegation, the norm at previous COPs, means his visit will generate less media coverage. (Government officials insisted the decision not to take a full press pack was purely logistical.) Starmer, while not an expert, is instinctively supportive of climate action, said one government official. But not so much so, countered a Labour MP, that he has “his own ideas about things.” “He wants to do the right thing, but would be steered as to whether that’s talking about forests or clean power or whatever. I suspect [No 10 Chief of Staff] Morgan McSweeney didn’t want him to go,” said the MP, granted anonymity to give a frank assessment of their leader. JOBS AT HOME GOOD, TREES ABROAD BAD The COP30 leaders’ event is taking place in Belém, the Amazon port city near the edge of the world’s greatest rainforest. But in a symbol of how domestic messaging trumps all else, Starmer will use that global platform to talk about a somewhat less exotic port: Great Yarmouth in East Anglia. It’s one of three U.K. locations — along with Greater Manchester and Belfast — where new, private sector clean energy deals are being announced, securing a modest 600 jobs. The COP30 leaders’ event is taking place in Belém, the Amazon port city near the edge of the world’s greatest rainforest. | Mauro Pimentel/AFP via Getty Images If COP’s Brazilian hosts were hoping for a grander global climate vision, they are about to be disappointed. The U.K. won’t be stumping up any taxpayer money for a global fund to support poorer countries to protect their tropical rainforests — key carbon sinks that, left standing, can help slow the rate of climate change. The Tropical Forests Forever Facility (TFFF) is supposed to be the centerpiece of the summit for Brazilian President Luiz Inácio Lula da Silva, but Lula has not been able to rely on even his close, left-wing ally Starmer — with whom he likes to chat about football — to weigh in with a financial contribution to match Brazil’s $1 billion. The U.K. played a role in establishing the concept of the TFFF. An energy department spokesperson said the government remained “incredibly supportive” of the scheme. But, with Reeves warning this week that her budget would deal with “the world as we find it, not the world as I would wish it to be,” her Treasury officials won a Whitehall battle over the U.K.’s financial backing for the scheme. Ministers say only that they will try to drum up private sector investment. ‘KEIR, SOMEWHERE IN THE MIDDLE’ The decision neatly captures the Starmer approach to climate action. If it suits the domestic economic and political agenda, great. If not then, then there is no guarantee of No. 10 and Treasury support. Taxpayer-funded international aid spending, a vital part of the U.K.’s global climate offer, has been slashed. At the same time, despite stretching emissions goals, one of the world’s busiest airports, Heathrow, will be expanded — because of its potential benefits for growth. Ministers are looking at watering down a pledge to ban new licences for oil and gas exploration in the North Sea, amid a sclerotic economy. The Treasury is considering easing the tax burden on fossil fuel companies. The bipolar approach risks bringing Starmer and Reeves into conflict with the U.K.’s energetic, committedly green Energy Secretary Ed Miliband, who will lead the country’s delegation to the COP30 conference and the formal United Nations negotiation. “On all of this, there is Ed on one side, Rachel on the other, and Keir somewhere in the middle,” said the government official. Starmer largely subcontracts his climate and energy policy to Miliband, said an industry figure who frequently interacts with government. Many MPs wish Starmer would act more like Miliband and embrace his green record more exuberantly. They point to the recent surge in support for the Green Party, which is making some in Labour nearly as nervous as the rise of Nigel Farage’s Reform UK to their right. OUTFLANKED In that context, it was a “no-brainer” for Starmer to go to COP and appear “visibly committed to climate action,” said Steve Akehurst from the political research firm Persuasion UK. “In so far as there is any real backlash to net zero in the U.K., it does not exist inside the Labour electoral coalition,” he said. The Greens are now “competing strongly for those votes.” A second Labour MP put it bluntly. “Starmer is so politically weak that to not attend would open up yet another front on his already collapsed centre-left flank,” they said. Before getting on the plane to Brazil, Starmer met sixth-form students at 10 Downing Street to talk about the summit and the environment. There was a flash of the green, idealistic Starmer that some say lurks beneath the political triangulation. He took the opportunity to remind the teenagers of the “obligation we undoubtedly have to safeguard the planet for generations to come.” “But also,” he added, it’s about safeguarding “hundreds of thousands of jobs in this country.” Additional reporting by Abby Wallace.
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Zack Polanski wants to be the British left’s Nigel Farage
LONDON — The self-styled “eco-populist” leader of Britain’s Green Party couldn’t be ideologically further from right-wing firebrand Nigel Farage. But, as Zack Polanski presides over a leap in his party’s poll ratings, he’s actively channeling the Reform UK leader’s media strategy, and putting himself front and center of the argument for change. It’s a high-stakes gamble that, like Farage, could see him accused of turning the outfit into a one-man band. But so far, it appears to be working. “I don’t want everyone to agree with what I or the Green Party is saying,” Polanski told POLITICO in an interview. “What I do want everyone to know is, I’ll always say what I mean.” ‘REACHING THE CEILING’ Polanski won a landslide victory in the Greens’ heated summer leadership election, handing him the reins of a party that made strong inroads at the last election — but still has just four Members of Parliament. Though the Greens stress many spokespeople will continue to represent the organization, he undoubtedly dominates media appearances, and the party is pushing him as an electoral asset. “We were reaching a ceiling of where you could get to by [the] ground game alone,” Polanski reflects of the Greens’ past performance. “What maybe was holding us back was not being heard in the national media.”  Next month, he’ll walk a well-trodden path for British politicians wanting to raise their profile with an appearance on “Have I Got News for You,” the BBC’s long-running satirical quiz show poking fun at politicians. Despite the cheeky reputation, it’s a national institution and a firm part of the establishment with a large national viewership. Previous guests include Farage himself — and Boris Johnson. Polanski says he wants to “make sure that the media have an easy access point” to the party, and the Green leader seems willing to go to places where he’ll have to put up a fight, too — including a colorful on-air battle with Piers Morgan. He’s even launched his own podcast, currently ranked ninth in the U.K. Apple Podcasts charts for politics shows. Some of the numbers lend credence to the Green leader’s theory of the case. The party now has more than 150,000 members, according to its own estimates, compared to 68,500 when Polanski took over. That puts it ahead of the Conservatives and Liberal Democrats in membership numbers. As Nigel Farage bids to eclipse the Conservatives as a right-wing force in British politics, he has used regular defections to Reform UK to show he’s on the march. | Carl Court/Getty Images Polanski also appears to have overseen a steady polling uptick for the left-wing outfit, as borne out in POLITICO’s Poll of Polls. “There’s a definite and obvious increase,” says YouGov’s Head of European Political and Social Research Anthony Wells.  “He’s already far better known than [predecessors] Carla Denyer and Adrian Ramsay were.” Wells cautions: “It’s not like the public are in love with him, but the public do … dislike him less than most of the party leaders,” Wells adds. CONVICTION POLITICS As Farage bids to eclipse the Conservatives as a right-wing force in British politics, he has used regular defections to Reform UK to show he’s on the march. Polanski has tried similar, crowing about defections by ex-Labour councilors from the left. In video campaigning, too, Polanski has taken a leaf out of Reform’s book. He peppered his leadership run with arresting monologues to camera, and he has opted to weigh in on — rather than duck — the divisive issue of immigration. A video by the coast urged voters to “hold that line together” against the “super rich” rather than attacking asylum seekers crossing the English Channel in small boats. “The biggest draw for those films is the fact that Zack is prepared to speak about these things — like a lot of other politicians aren’t,” argues the film’s creator Jeremy Clancy, who leads a creative agency making films for progressive outlets. Clancy used to serve as senior communications manager for ex-Labour Leader Jeremy Corbyn. Praising the contribution of migrants when polling shows the public want lower levels is a risky bet. The Green leader argues voters will respect a clear stance, even if they disagree. “People who know that their politicians are telling the truth and are speaking with conviction are always preferred,” he says. Like Reform, Polanski’s team has so far tried to paint in populist, primary colors. His first party political broadcast — a convention by which parties are given guaranteed five-minute TV slots — was filmed in the early hours as a metaphor about billionaires sleeping comfortably while others struggle. “Both were efforts to visualize things that you can’t see and to consciously make them as simple as possible,” Clancy says. Those short videos racked up millions of views. Whether this translates into electoral success, however, remains a wide open question. Next May’s local elections will offer the first real ballot box test of Polanski’s pitch. Ipsos’ Research Director for Public Affairs Keiran Pedley says the Greens are “still waiting for that breakthrough moment” and now need to “seal the deal” with voters. He cautioned against assuming cut-through for a leader will lead to electoral success. Pedley compared Polanski to ex-Liberal Democrat Leader Nick Clegg — who lost seats at the 2010 general election despite a major polling bounce mid-campaign off the back of strong televised debate performances. For now, those who’ve joined the movement seem bullish. “The Greens have gone from being a one-issue party, which is the environment, to basically being the broad left party,” said Swindon Borough Councilor Ian Edwards, who joined the Greens in October after resigning the Labour whip earlier this year. But he added: “We can’t rely on just a leader. We’ve got to prove ourselves.”
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Europe’s left flocks to New York to take notes on Mamdani’s meteoric rise
PARIS — Zohran Mamdani’s rise from little-known New York state assemblyman to front-runner in the New York mayoral election has sparked a newfound sense of optimism among left-wing politicians in Europe ahead of their own local elections next year. Party strategists from across Europe are making the trek across the Atlantic to learn from the millennial who skyrocketed from anonymity to the precipice of the most important city in the United States (or the world, if you ask a New Yorker). They want to see if Mamdani’s grassroots campaign, which has been laser-focused on affordability issues, will work in their cities and regions as well as it did for him in New York’s Democratic Party primary — and potentially in Tuesday’s general election. Manon Aubry, the French co-chair of The Left group in the European Parliament — which gathers Europe’s democratic socialist, left-wing populist and some communist lawmakers — traveled to New York last week where she took part alongside Mamdani canvassers in the campaign’s final stretch. Aubry and her party, France Unbowed, see Mamdani as an example of how to bring about “radical change” as they look to make a splash in the municipal elections that will take place across France in 2026. Germany’s anti-capitalist party, The Left, sent four officials to the Big Apple to meet with officials including the Mamdani campaign’s chief of strategy, Morris Katz. Party Co-Chair Ines Schwerdtner and Maximilian Schirmer, co-chair of The Left’s Berlin branch, also paid a visit. Liza Pflaum, parliamentary office manager for The Left’s other co-chair, Jan van Aken, said she believed her party had exceeded expectations in Germany’s February federal election by using the same playbook as Mamdani: focusing on cost-of-living issues, courting small donors, and investing heavily in door-to-door volunteer operations. Pflaum expects The Left to use Mamdani’s current campaign as a model for her party’s approach to Berlin’s state legislative election next September. “[He] offers a concrete vision of how people’s lives can actually be improved,” she said. “You can feel it right away here in New York: People have begun to feel hope again.” PUNCHY BEATS BORING French and British politicians say they are particularly impressed with how Mamdani’s team has employed a media strategy leveraging their candidate’s charisma — especially the use of short social media clips to hammer home the affordability message while making him seem relatable. “[Mamdani] winning the Democratic primary is already a major political event, both because of what he ran on and how he ran it: His comms strategy, his use of social media. There’s a lot of things we’ve found inspiring,” said Danièle Obono, a France Unbowed lawmaker who will be hosting a livestream watch party for the election results along with other party leaders on Tuesday. Mothin Ali, deputy leader of the United Kingdom’s Greens, said British politicians tend to make “boring and simple” videos and that the left needed to perfect delivering sound bites in a “punchy” way like Mamdani. Manon Aubry and her party, France Unbowed, see Zohran Mamdani as an example of how to bring about “radical change” as they look to make a splash in the municipal elections that will take place across France in 2026. | Frederick Florin/Getty Images Mamdani’s likely triumph over the experienced but scandal-plagued Andrew Cuomo — the former New York governor who is running as an independent after being defeated by Mamdani in the Democratic primary — is also the latest example of more moderate parties being outflanked by more radical forces at both ends of the political spectrum. France Unbowed has established itself as a dominant force on the left in the decade after former Socialist President François Hollande’s single term ended in disappointment. But while France Unbowed leader Jean-Luc Mélenchon has had strong showings in presidential races, the party has struggled to take control of local administrations and to prove it can govern on a radical platform — a gap it hopes to close in next year’s municipal elections. POLITICO’s Poll of Polls for the U.K. shows the Greens have climbed to 14 percent, just 4 percentage points behind Prime Minister Keir Starmer’s Labour Party. The latest Find Out Now poll, released last week, showed the Greens — boosted by new leader Zack Polanski’s brand of “eco-populism” — overtaking Labour for the first time. Germany’s The Left’s has continued to rise gradually since its surprise showing in February and the party is now in a stronger position, polling shows, to challenge its moderate rivals, the Greens and the Social Democrats. The Greens candidate for Paris mayor, David Belliard, said Mamdani’s success in appealing to voters worried about the cost of living, an issue plaguing Parisians as well as New Yorkers, had confirmed his suspicion that his party needed to run a more progressive campaign after spending more than two decades as a junior coalition partner to center-left mayors in the French capital who have done more to make the city greener than cheaper. “We’ve spent a lot of time fighting against the end of the world, but maybe not enough helping people make it to the end of the month,” Belliard said. Victor Goury-Laffont reported from Paris, Nette Nöstlinger from Berlin and Martin Alfonsin Larsen from London.
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