Europe is feeling more than a little bit of schadenfreude.

In a stunning U.S. midterm election, Democrats regained control of the House of Representatives and the Senate, as well as several governorships, winning big in Republican strongholds like South Carolina, Texas and even Kansas. While some races were yet to be called Wednesday morning, the result is a monumental rebuke of U.S. President Donald Trump.

For Europe, which has weathered Trump’s incessant verbal attacks and tariff threats for the last two years, it was a rare ray of hope in transatlantic politics — if not because Washington would become a more predictable partner, then at least because the U.S. president might be too distracted to focus his usual ire on Europeans.

European Parliament Vice President Sophie Wilmès, a former Belgian prime minister, heralded a “major shift in the balance of power in the U.S. Congress,” adding: “I hope it will lead to a calmer, more constructive relationship with Europe.”

It remains to be seen how Trump will shift his stance on Europe, if at all, with Congress no longer under his control. As president, he still retains many of the executive’s powers on foreign policy.

German Defense Minister Boris Pistorius called the Democratic victory “historic” but cautioned against Europe expecting too much. “We will seek close contact with the Democrats,” he said Wednesday morning at the Berlin Security Conference. “But we do not know what the president will do after the election in the near future.”

Two senior EU figures — both regular Trump antagonists — couldn’t resist celebrating the result, though.

“American society voted against policies that only impoverish,” Spanish Prime Minister Pedro Sánchez said. “Against hate. Against sexism. Against climate change denial and against the privileges of the elites.”

Polish Foreign Minister Radosław Sikorski reshared his own tweet from June last year responding to Elon Musk, a key Trump ally. “See, big man, politics is harder than you thought,” he snarked.

Headache for Europe’s far right

For Europe’s ascendant far right, which has long balanced admiration for Trump with the reality that he is deeply unpopular across the continent, the midterms are an uncomfortable reminder of the political risks of being too closely associated with the U.S. president.

Jordan Bardella, leader of France’s National Rally (RN), was keen to chalk up Trump’s “unfavorable” result to his decision to go to war with Iran more than anything else.

“It’s the case that the U.S. intervention in Iran has had a very strong impact on the U.S. economy, but also on the European economy,” he said Wednesday morning.

Bardella added that the RN’s presidential candidate Marine Le Pen was still leading in the French polls ahead of next year’s election and insisted defeats for nationalist politicians in Brazil, Hungary and now the U.S. did not bode ill for his party’s chances.

But the cost-of-living crisis was top of American voters’ minds, according to polls. That’s also the case in European countries, from France to Spain to Greece, which are grappling with soaring rents and widespread anger at apparently impotent governments.

Marine Tondelier, leader of France’s Greens, said Trump had “made the United States the laughingstock of the world” and called the result a “warning for France” ahead of the presidential election in April.

“If our country brings the RN to power next year, it will meet the same tragic fate as the United States,” she said.

U.S. Ambassador to NATO Matthew Whitaker sought to downplay the prospect of a shift in Washington’s foreign policy following the midterm elections, insisting that the issues facing the U.S. and its European allies remained unchanged.

“The foreign policy of the United States has not changed,” Whitaker said, adding that “the issues that we’re facing as a country and as an alliance are the same.”

European markets, meanwhile, greeted the results with cautious optimism. Paris, London and Frankfurt opened slightly higher on Wednesday, following the Democrats’ sweeping victory.

Reality check for Trump

For all the celebrations, European officials were also quick to acknowledge that a Democratic-controlled Congress does not automatically translate into a more accommodating U.S. administration.

Trump retains considerable room to maneuver on foreign policy, including on the issues that have most strained transatlantic ties: European security, trade and Russia’s war in Ukraine.

France’s Economy Minister Roland Lescure noted Wednesday morning that while Trump would be “quite weakened” domestically, the “unpredictable” president remained “in charge of international policy.”

But a hostile Congress could make it harder for him to push through his domestic agenda, while opening the door to greater scrutiny of his administration.

“Voters have a habit of balancing power,” Finnish MEP Mika Aaltola said on X, “and now the president’s hands are more tied in domestic and foreign policy.”

Former Italian Prime Minister Enrico Letta was more emphatic.

“Europe is much stronger” thanks to the “blue wave,” he wrote on X.

Kathleen Van Brempt, vice-chair of the European Parliament’s International Trade Committee, shared a White House tweet predicting a Trump victory — and captioned it that it was, actually, America that won.

“And he lost,” she said.

Despite the ballot-box drubbing, Trump himself couldn’t resist a final shot at Europe, during an election night call with Fox News.

“You look at Europe, it’s dying. You look at what’s going on in France, what’s going on in Italy and all these other countries. I mean, they’re going through a terrible time. And they may not even survive, frankly,” he warned. “And we are thriving.”

European capitals are watching these midterms closely — but are under no illusions that a Democrat-led Congress could reverse the new world order shaped by President Donald Trump.

The MAGA movement has few friends among European governments, given Trump’s backpedaling on support for Ukraine and NATO. The president’s war in Iran has caused economic chaos across the continent and his frequent browbeating of European leaders is a headache they could do without.

So Europe will be watching for two things tonight — firstly, an election that leaves Trump so weakened at home that he’s somehow more stymied abroad. This feels optimistic: Foreign affairs remain the White House’s prerogative whichever party controls Congress, and history shows that presidents tend to have an even greater overseas focus in their final years in office.

Second, European leaders will be watching for any hint of the direction the U.S. might be headed in 2028. Any prospect of a 48th president with a more traditional American view of the world — embracing NATO, Europe and free trade — would be warmly welcomed.

But more important still would be any sign that the MAGA movement itself is on the wane. Europe knows full well from the Joe Biden presidency that any reversion to a more conventional president is only going to be temporary for as long as the Republican Party remains of a MAGA mindset.

At some point, maybe around the time Joe Biden declared on the debate stage that he “finally beat Medicare,” Washington got the idea that defeating an old man in an election was easy.

Not always.

Just days before an American election viewed by many voters as an opportunity to neuter an unpopular 80-year-old president, voters in Brazil and Israel delivered a vivid reminder that an old man in his country’s highest office usually didn’t get there by accident.

In Brazil, a decisive majority of voters on Sunday returned left-wing President Luiz Inácio Lula da Silva for a fourth term, defying expectations that Brazilians were ready to discard the fiery trade unionist as yesterday’s man. In Israel’s Tuesday election, Prime Minister Benjamin Netanyahu — the longest-serving premier in his country’s history — lost his parliamentary majority but may have thwarted his opponents from electing a viable governing coalition.

Lula, 81, and Netanyahu, 77, have almost nothing in common except their age and political resilience. They have towered over their countries for more than a generation, outfoxed prosecutors and humiliated electoral rivals, enraged and entranced Washington. They have done it with the loyal support of voters on the left and right who view each man in heroic terms, as a tireless champion of their interests and a shield against the most fearsome enemies.

President Donald Trump has, at times, shared those political traits. If he has one more escape act left in him, it would look more like what we’ve just seen in Israel and Brazil than anything in Trump’s second term so far.

Since returning to office in 2025, Trump has failed to deliver policy victories that most voters can feel in their own lives, while shedding some of the most important parts of the political identity that forged his populist base. He ran for president in 2024 pledging to whip inflation and railing against needless foreign wars. Trump’s signature acts this term — passing the One Big Beautiful Bill Act, waging a global trade war, attempting regime change in Iran — have made health care, consumer goods and energy more expensive.

What is his closing message in the midterm election? Trump makes one argument consistently: that Democrats are crazy. But you’d be hard-pressed to find a convincing through line in a series of campaign-trail monologues boasting about the economy, trashing individual Democratic candidates as weirdos and subversives, musing about renaming oceans, defending the Cheesecake Factory and admiring Jon Husted’s rock-hard bod.

Compare this to what voters heard in Brazil and Israel: relentless, ruthless, shameless appeals to the political coalitions that Lula and Netanyahu forged over decades.

In Brazil, Lula tapped into the regional and class-based divisions that have defined his electoral career, while offering a buffet of new economic promises to voters in his base. He hiked welfare payments, promised voters free public transit on weekends and endorsed a shorter workweek. His 45-year-old opponent, Flavio Bolsonaro, stumbled in the final days with a dismissive comment alluding to an accident Lula suffered as a young metalworker — a remark apparently taken by many voters as a gratuitous sneer at the working class.

In Netanyahu’s fight for political survival, the Israeli leader delivered an apocalyptic message aimed at polarizing the electorate to his advantage. He posted an AI-generated image of a nuclear strike on Tel Aviv, branded his challengers as soft on Iran and derided Arab political parties as an enemy within. Israeli and American news outlets have reported that Netanyahu pushed the military for a new wave of attacks on Iran before the election, an escalation that might have reshaped the campaign’s final days.

If Trump had approached the midterms with Lula- or Netanyahu-like focus and vigor, he would probably still be a very unpopular president. But he might be a very unpopular president with a firm grip on the red states that control the Senate, instead of scrambling in October to defend Kansas and Mississippi.

Trump’s populist campaign tactics have been comparatively slapdash and unresponsive to voters’ real needs. He floated giving away $5,000 checks to Americans if Republicans keep control of Congress, only to see lawmakers from his own party pan the idea as a budget buster. He has handed out locally tailored goodies — new funding pledges for a pipeline in Alaska, tariff exemptions as a gift to Maine — that might make a difference on the margins but can’t substitute for a national message on the cost of living.

And Trump has not made a concerted effort to heal the breach within the MAGA base over the war in Iran. He has toggled between Bibi-like warnings about nuclear attacks on Southern California and assurances that the war will end after the November election, all while fuel prices stay painfully high for the people who put him in office.

It may add up to the least effective campaign ever for the man who has overwhelmed American politics for 11 and a half years.

And yet, the midterms are not the end of the story.

Even a broad defeat for Republicans next week would leave Trump with half a term to work with. Two more years to recover his footing, return to political basics, reconnect with his base and fight, fight, fight for relevance and recovery. There is a bag of tricks available to him, if he were to get serious about salvaging his presidency.

For Trump’s opponents, the warning from abroad remains: Beware the old man in a hurry.

LONDON — John Healey wants to keep his debut budget low-key — but he’s also got to show the British public his boss really does feel their pain.

The chancellor delivers the first financial statement of the Andy Burnham era Wednesday. The pitch? “Breathing space for today” mixed with some “fresh hope for the future.”

But with war in Iran driving up costs worldwide, government borrowing at its highest level in a year, and businesses warning they’re taxed to the max, Healey is up against it.

Here’s how POLITICO’s team of reporters will be poring over the big fiscal moment, unveiled at 12.30 p.m. U.K. time Wednesday.

U.K. Political Editor Dan Bloom

I’ll flip straight to the big table two-thirds of the way through the ‘red book,’ where Treasury officials list the total tax rises and spending cuts, and then the “headroom” against Healey’s fiscal rules in the executive summary.

The briefing suggests these numbers will be smaller than the £26 billion in tax rises and £23.6 billion in headroom former Chancellor Rachel Reeves notched up in March this year.

The Treasury has turned this into its comms strategy, pointing to “everyday fixes” and non-tax measures like scrapping business red tape. But these numbers will also show how Donald Trump’s war in Iran has reined in Burnham’s ambitions.

And they are indicative of something else — the budget just isn’t the main event this time. In the next seven weeks or so we’re expecting [former minister] Alan Milburn’s review of the benefit system, a U.K.-EU summit, a “10-year plan” and a white paper on “rewiring the state.”

Then next year is the spending review. That’s when the really hard choices will come — and the budget will give us a sign of how hard, since it will map out a path for departmental spending over the next few years.

U.K. Political Correspondent Sam Blewett

Andy Burnham’s team has been speaking a lot about “everyday fixes” — cheapo policies that can rectify real-life niggles. 

Headphone dodgers? You’re fined. Being ripped off by parking fines? We’ve got your backs. Balking at the cost of the supermarket shop? Gone are the tariffs on your gherkins.

That will buy the government a fair amount of goodwill, building a sense that the government isn’t entirely a useless beast being buffeted by global horror shows. But it’ll only go so far.

Healey is under pressure to show bold action on what really matters too — actual interventions that bring down the cost of living. We know already there will be support for household energy bills, a fuel duty freeze, support for pensioners and a hike to the minimum wage. All eyes will be on whether Healey has any more surprises on this front.

As costly as any support is for the exchequer, will it all pale in comparison to the effects of the Strait of Hormuz-sealing war with Iran? This is a self-declared “cost of living government” after all.

First, I’ll scour watchdog the Office for Budget Responsibility’s forecasts to see where the semi-official number crunchers reckon real household disposable income is headed. Then the analysts at the Institute for Fiscal Studies and the Resolution Foundation will provide more insight.

After that, the voices that really matter will be those sitting down to ever-costlier dinner, nursing pricy pints and rolling their eyes at the petrol pumps. Will this budget give Brits enough reason to believe Burnham’s new government is a force for good, trying to ease the pain? Or will they deem the new-look administration just the same old ineffective bureaucrats who need sweeping away in favor of a more radical response?

Senior Foreign Correspondent Esther Webber and U.K. Defense Reporter Mason Boycott-Owen

The number one thing we’ll be looking out for in today’s budget is how exactly Healey — who quit as defense secretary in the dying days of Keir Starmer’s government over exactly this issue — tries to demonstrate he is raising defense spending against a tough backdrop.

The chancellor has tried to manage expectations for the Ministry of Defence at the budget pretty closely, initially stating that he would only seek to cover a £4.7 billion pound shortfall in its already-unveiled Defence Investment Plan.

In recent weeks, however, the Treasury has suggested he could do more to show the U.K. is moving towards spending 3% of GDP on defense, something Healey sees as an important marker on the way to meeting the NATO target of 3.5%.

Media reports leading up to Wednesday suggest an increase will come from money funneled into the British Business Bank and National Wealth Fund.

But could he have something else in his back pocket? Healey is well aware of the potential for awkward questions about his commitment to follow through on the promises he made just four months ago that he said were crucial to U.K. security, now that he’s in charge of the money.

Financial Services Reporter Eleanor Myers

A hike in bank taxes is all but inevitable in today’s budget – but the City of London will be nervously watching how high the increase goes. Along with the lenders, I’ll be looking out for how much taxes are raised, whether any changes are temporary, and whether the City — Britain’s financial powerhouse — gets anything in return.

The easiest move for Healey is to increase the surcharge banks pay on top of corporation tax. That currently stands at 3%, after Conservative Chancellor Jeremy Hunt reduced it from 8% in 2023 to account for higher corporation taxes. Healey could simply reverse the surcharge to 8%, which would be unpopular with the banks and might not even go far enough for campaigners: the Trades Union Congress has called for an increase to 16%.

I’ll also be closely watching for how the bond markets react to the first budget under Burnham. Despite the prime minister describing Britain as “in hock” to the bond markets before he took office, odds are on for a “boring” budget, without any huge spending commitments that might spike borrowing costs.

But any cautious policy changes designed to placate the bond market will have to be tempered alongside demands from the Labour Party. It’s a tricky balance, and Labour MPs showed under Keir Starmer that they were willing to rebel when it mattered.

Senior U.K. Energy Correspondent Charlie Cooper

A sharp, painful spike in energy bills is coming for Britain; at this budget we’ll find out how much power Healey and Burnham have to help.

The latest energy price cap forecasts are brutal. Energy firms expect average, annual household bills to rise by more than £450 in January. They could go even higher in April. Why? Mainly because of gas. The fallout from the U.S.-Israeli war with Iran has sent wholesale prices soaring to levels not seen since December 2022.

Healey knows how bleak things look, but he may not have the fiscal firepower to offer much help. Burnham has hinted at removing gas standing charges from bills, which could save an average household a modest £27, according to one estimate. Meanwhile, payments to around 6 million low-income households — the Warm Homes Discount — are likely to get a top-up of between £100 and £150.

Businesses, meanwhile, could get details of a 10-year plan to bring their energy costs into line with European competitors, according to two people familiar with budget preparations.

But with the cost of living and cost of doing business set to rise so high, will that be it?

There’s “strong awareness” inside government “of how bad it will get,” said one senior government official. Unfortunately, they added, there are “not the pockets deep enough to do all the things we might like to do.”

Elsewhere, we’ll be watching closely to see whether net zero schemes — like the rollout of electric heat pumps — could face cuts to cover shortfalls in defense spending. 

Technology Reporter Joseph Bambridge

Healey put AI and innovation at the heart of his growth plan in a pre-budget speech back in September.

In that vein, the government has trailed a £600 million spending package to protect the U.K. from AI risks while growing its own share of the sector, calling it a “distinctively British” approach to mitigating risks from the technology while capturing the benefits.

The question now is whether more measures to support the U.K.’s tech and AI sector will come on Wednesday, with trade groups calling for bold moves to lower energy costs, tackle energy and planning delays, and help firms invest in AI and upskill workers.

Startups are also hoping for tax relief and further reforms to regulation and procurement rules. A relief for founders who re-invest their earnings in the U.K. has been a particular demand from the startup community, which has already bagged a win after Healey ruled out raising capital gains tax.

AI is also likely to play a significant role in the government’s plans to make Whitehall more efficient, as it did under Reeves.

The sector is also closely watching how the chancellor plans to meet his defense spending targets, in the hopes that drone makers and military tech firms might benefit from the uplift.

Trade Reporter Caroline Hug

I’m looking out for the chancellor’s VAT crackdown on foreign sellers, who register as U.K. based companies to avoid paying the tax. Healey is expected to make online marketplaces like Amazon, eBay and Temu responsible for collecting tax owed by all retailers.

We’re also waiting to see whether the government has more information on its de minimis crackdown, including whether it will introduce a handling fee for small packages below £135. The EU already has one in place.

Finally, we’ll be looking out for any more detail on the government’s suspension of tariffs on more than 100 food, drink, fuel and fertilizer products.

Jamie Dettmer is associate editor and a foreign affairs columnist for POLITICO.

The war in Gaza hasn’t figured much in campaigning for Israel’s upcoming election — despite the likelihood that Israel’s Arab minority, Palestinian by heritage, might well decide who gets to be prime minister. 

Israel’s Arabs make up around 20% of the electorate that will be casting ballots in the Oct. 27 parliamentary election. And thanks to complex coalition math, Arab parties might well be the ones to crown Prime Minister Benjamin Netanyahu’s main rival, former military chief Gadi Eisenkot, who leads a center-right opposition bloc.

But campaigns by both the Arab parties and Jewish politicians have avoided talking about what the outcome might actually mean for Jewish-Arab relations in the region, for the possibility of a two-state solution and even for U.S. President Donald Trump’s vision for a comprehensive peace-through-prosperity deal between Israelis and the Palestinians.

“The election campaign has been bizarre,” said Michael Milshtein, a retired Israeli army colonel and former head of Palestinian affairs in Israel’s military intelligence agency. “The campaign has been focused on domestic and personal issues, and on Netanyahu.” 

That means it hasn’t included “the very deep complicated issue of the critical relations between us and the Palestinians, and what kind of scenarios or solutions are left after the Oct. 7 Hamas attack and the Gaza War — for any kind of political settlement,” Milshtein said.

But outside of Israel there’s alarm — especially among Arab leaders — over the absence of any serious debate about how to end the multi-front conflicts Israel is engaged in and what that might foretell, said HA Hellyer, a geopolitical scholar specializing in the region. 

“Netanyahu, or not, the Israelis are on a particular trajectory when it comes to foreign and security policies,”Hellyer told POLITICO. 

“Opposition politicians blame Netanyahu for Israel’s increasing diplomatic isolation and loss of support in parts of Europe and North America. But when you look at what they’re actually saying, they’re not arguing with the policies when it comes to Gaza. They support the overall settlement project in the West Bank. They support the incursion in Southern Lebanon. Their proposition is that they could have done things in a better way,” said Hellyer, who’s a fellow at Britain’s Royal United Services Institute. 

Mentions of the Gaza conflict in election campaigns have been largely limited to clashes over who was to blame for failing to prevent the Hamas attack on southern Israel, which killed more than 1,200 people.The Eisenkot-led Change bloc has focused on Netanyahu’s role in the lead-up to the Oct. 7, 2023 massacre, pointing to the failures of his government and arguing he ignored warnings of a likely big Hamas attack. But the bloc has done little to flesh out its governing policy platform.

Meanwhile, Netanyahu’s campaign has sought to frame Eisenkot as an appeaser and puppet of Arab party leaders — such as Mansour Abbas, leader of the Islamist Ra’am party, and Ahmad Tibi, leader of Ta’al party — arguing he would compromise on core security issues to persuade them to join or vote with his coalition bloc after the election to give him a Knesset majority.

“The lack of real content is a major problem for such a crucial election,” the Jerusalem Post lamented in an editorial this week.

Few see any chance of a negotiated peace or a two-state solution any time soon. Israelis largely view international condemnation as biased, and say critics of Israel’s conduct in Gaza fail to understand what the country has to do to survive. 

But at some stage or another, Israelis will have to have conversations about peace, and delaying them isn’t going to help the country reduce its deepening isolation or help repair strained ties with traditional allies, including Europeans, who are starting to impose sanctions and considering arms embargoes. 

Former Israeli Prime Minister Ehud Olmert, a fierce Netanyahu critic, said that while there has been election debate about how successful the Gaza war has been in degrading Hamas, “it’s true that the main issue of our future with the Palestinians has been ignored.” He added: “Had I been running, I would have talked about it the whole time.”

So why hasn’t peace been on the agenda?

As Olmert sees it, the root lies in “the huge trauma of Oct. 7, along with the perception that public opinion, the mainstream, has shifted from where it was before the massacre and moved further rightward politically.” That isn’t uncommon: When Israel suffers a severe psychological blow, the political center-of-gravity habitually moves sharply to the right, favoring hawkish and nationalist positions and marginalizing more conciliatory perspectives.

Olmert isn’t entirely convinced that perception is completely accurate this time,  pointing out that Netanyahu’s ruling Likud party is likely to lose a significant number of its Knesset seats — from its current tally of 32 to around 20 — after next week’s elections. 

“Nonetheless, the perception is that general public opinion has shifted and, therefore, all of the other parties are hesitant to talk about any political process with the Palestinians or about negotiations or about a two-state solution, and so on and so forth, because they worry they’ll lose support,” Olmert said.

Polls show an overwhelming majority of Jewish-Israeli backing for military action. When it comes to the conflict with Iran, Israel Democracy Institute surveys have recorded support levels as high as 93% for the initial strikes, and nearly 80% back the continuation of the war. There has also been overwhelming Jewish-Israeli support for sustaining military pressure on Hezbollah in Lebanon and for multi-front security strategies.

Sven Burgsdorff, a former EU representative and ambassador to the West Bank, doesn’t subscribe to Olmert’s view, instead arguing there’s not much difference between Netanyahu and the leaders of the center-right Change bloc when it comes to Gaza or a two-state solution — something Netanyahu dismisses out of hand regularly, saying that Palestinian sovereignty is incompatible with Israel’s security.

“Even if the right-wing Netanyahu coalition were to be replaced by the current opposition, none of its main leaders — Eisenkot, Naftali Bennett, Yair Lapid and Avigdor Lieberman — question the IDF’s conduct [in] the war on Gaza, nor are they supportive of the idea of Palestinian self-determination. Only Yair Golan of the Democrats and the coalition of Arab parties are in favor of that,” he said in an interview.

Opposition leaders don’t criticize Netanyahu for the conduct of the Gaza war, Burgsdorff continued. Their issue with him is whether he was at fault for not protecting Israel from the 2023 attack. They also accuse him of being set on dismantling Israel’s democratic system and for having no exit strategy for his forays into broader regional conflicts. 

Netanyahu has made a long political career out of leveraging external crises to keep his grip on power. And even now, it would take a brave commentator to write him off and suggest that Bibi the Magician, to use one of his nicknames, has lost the magic touch. The Israeli leader has pulled off stunning turnarounds in his long political career, including in the 1990s when he beat Shimon Peres in elections held just months after the assassination of then-Prime Minister Yitzhak Rabin.

Olmert still hopes for a Netanyahu defeat and says if Eisenkot is installed, he might make conciliatory moves like meeting with Mahmoud Abbas, the president of Palestinian National Authority. 

“He won’t be able to do anything big or quickly with Bennett and Lieberman in his cabinet. Both of them are completely opposed to the idea of Palestinian sovereignty. They keep saying it all the time. ‘There will never be a Palestinian state,’” he said. “So the political space will be very limited.”

But without some serious movement toward a two-state solution, Israel could risk alienating more of its traditional allies in Europe and the U.S.