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‘Andy Time’: Why Burnham’s budget isn’t going to deliver a revolution

23 October 2026 at 04:00

LONDON — When Prime Minister Andy Burnham arrived a few minutes late to a meeting with regional mayors on Thursday, his Cabinet ally Angela Rayner had a name for it. She joked they were on “Andy Time.”

The rest of Britain is beginning to learn what that feels like.

Burnham entered 10 Downing Street three months ago promising a “new economic model.” However, the prime minister’s first budget next Wednesday will ask voters to wait a bit longer for it.

John Healey, Burnham’s top finance minister, is expected to announce cuts to business regulation, new steps to move power out of Whitehall and targeted cost-of-living help as energy bills surge due to the wars in Iran and Ukraine.

But while London’s banking sector is resigned to a tax rise, Healey is broadly not expected to completely overhaul tax regimes that many in Burnham’s center-left Labour Party have long seen as unfair. These include business rates, which treat high street shops more harshly than out-of-town delivery warehouses; capital gains tax, which charges less on income from assets than from work; and council tax on homes, which is based on valuations from 1991. 

Healey and his allies are already rolling out a pitch for lower-key changes to tax and spending than his predecessor, Rachel Reeves, insisting budgets are about more than their bottom-line “scorecard.” They point instead to thinning the “sludge” of business bureaucracy and helping “bloody-minded” entrepreneurs.

The reason behind this is about much more than war dragging on the British economy and keeping inflation high. Many radical reforms just aren’t ready yet. 

Next Wednesday will mark just 100 days since Burnham took office, after a whirlwind special election that ended the Greater Manchester mayor’s decade-long absence from parliament.

Burnham’s much-touted “10-year plan” to rewire Britain’s public realm is far from finished; its publication date is edging closer to Christmas. And many granular details of his plan for reform — including higher defense spending, welfare reforms and ownership of the water sector — will only come at a multi-year spending review some time in 2027. Healey is still trying to decide when that will happen.

POLITICO spoke to 22 current and former government officials, MPs and people who speak regularly to Downing Street to map out Burnham and Healey’s strategy, most of whom were granted anonymity to speak frankly. 

Several offered the view that Healey’s budget was designed to act as a stepping stone toward the 10-year plan and spending review, while not spooking the bond markets — which Burnham complained Britain was “in hock to” last year. That is despite Britain inching closer to a general election that the prime minister must call by summer 2029.

“They want it to be a non-event,” one person who speaks regularly to both 10 and 11 Downing Street said of the budget. 

Expectation management

This narrative has already left Healey’s allies bristling.

People are “accusing us of not making decisions and kicking the can down the road when actually this budget is incredibly difficult,” said one government official. This person added: “This is the first budget of this country that will have come to the House of Commons for scrutiny while the war in the Middle East is raging and an illegal invasion of Ukraine continues by Russia. The idea that this is by any means small is quite difficult to stomach.”

A second U.K. government official argued the budget would be “as ambitious as possible within the political context.” But a third government official said they believed the budget would be more “steady as she goes” than finished solutions to Britain’s problems.

Ruth Curtice, a former Treasury official who is now chief executive of the Resolution Foundation, a think tank focused on living standards, added: “In some ways it’s quite surprising to have such a small budget, given we have a new prime minister and chancellor and quite a lot has happened in the world since the last one.”

The opposition Conservative Party is preparing to seize on this “deferral budget” theme. Tory strategists are ready to paint it as a cowardly act from an administration they claim prefers sweeping vision to hard decisions. “Why act tomorrow when you can act today?” said one shadow cabinet minister. “Have some balls!”

Cameron Brown, a former Tory special adviser in the Treasury, was more sympathetic. “There’s no need to crystallize any kind of savings or cuts now,” when the spending review is looming anyway, he argued. Brown predicted a “tight and concise” but “intellectually coherent” package: “[Healey] will have some buffer at the end, a nice little cost of living package, Labour MPs will be happy, he’ll target the bad people — gamblers and banks — and he’ll push things down the road a bit.”

A Labour official voiced concern that a cautious budget could lose the goodwill Burnham has built with the public — as happened to his predecessor Keir Starmer, who promised “change” in his 2024 manifesto.

And Reeves’ former Political Secretary Matt Pound urged “caution” on deferring too many decisions to the 2027 spending review. “The truth is that they could end up putting a monumental amount of pressure on that spending review,” he told POLITICO’s Westminster Insider podcast in an interview released Friday. “There are already a lot of pressures they will need to fund.”

Hard to get

“Energy” will be the key thread linking Healey’s messages for the budget, a fourth U.K. government official said — from “breathing space” help with bills to building a more resilient infrastructure network. 

There will also be a “fiscal devolution roadmap” on budget day, setting out terms of how regional mayors can get more power and money and drawn up partly by Burnham’s new Manchester outpost, No. 10 North. Legislation to let them impose tourist taxes will be published in the coming weeks. And officials have talked behind the scenes about procurement and boosting Britain’s heavy industries; the budget needs to find almost £5 billion to plug a hole in a defense investment plan unveiled under Starmer.

Targeted cost-of-living measures appear likely to include scrapping “standing charges” on domestic gas bills, which cost the average household just over £100 a year. Burnham said Wednesday that he had asked Healey to look at the issue — though any help could be eclipsed by a predicted £276 rise in domestic bills this January.

The other message will be that the Treasury can do big, consequential things without raising taxes. Healey will make “a political argument that actually there are other types of budgets that you can have,” said the first government official quoted above, “busting through some of that sludge and ripping up a lot of that red tape.” Cash-strapped chancellors have reached for regulatory reform before, with mixed success.

MPs are looking closely at cost-of-living support. One backbencher in an affluent seat said any help had to be significant, because even their well-off constituents were struggling to take the holidays they wanted. Defense, by contrast, barely comes up on the doorstep: “There are hardly any votes in it, but it’s just something we have to do.”

There has been heavy engagement with Labour MPs, whose detachment from No. 10 helped force Starmer out in July. Treasury ministers Torsten Bell and James Murray are among those engaging while Chief Secretary to the Treasury Emma Reynolds handles tricky negotiations with Cabinet ministers, alongside No. 10 chief of staff James Purnell.

Healey has negotiated with Cabinet ministers and spoken to union leaders, banks and MPs — though not lobbyists. “No one can get to Healey,” said one. “It’s very smart. Let him do his job.”

Markets will look at the “headroom” — a snapshot of the buffer between Healey’s five-year plans and his self-imposed fiscal rules. The fourth official quoted above said Treasury officials have considered having only a small “headroom” buffer compared to the £21.7 billion left by Reeves, as it could be increased in future years. 

Reeves’ former political secretary, Pound, warned against this, telling Westminster Insider: “If the headroom is so low that it’s clear that they can’t clear the defense investment plan, for example, or the wider defense pressures, then I think that that could then start to have a bit of a knock-on effect that would be quite negative.”

However, headroom is merely a snapshot, often out of date by the time it is published. It is likely to be buffeted further by any events in the Middle East arising from the U.S. midterm results on Nov. 3.

And as with all budget briefings, some opposition politicians believe there is an element of expectation management. Conservatives suspect that headroom will come out higher than predicted — which Healey can paint as a victory.

Time is ticking

Then it’ll all be over — and Westminster will immediately start preparing for the next step.

A date was never confirmed for Burnham’s 10-year plan (beyond the latter part of 2026), but some officials believe it has already slipped slightly from the original intention. 

Downing Street and Cabinet Office officials remain determined to publish it in December, though some in Whitehall worry it might be delayed. “Knowing the things on the horizon and how big they are, I genuinely don’t see how you could make space for it,” said one official in another department.

While some Cabinet Office civil servants were first tasked to work on the plan in August, others only joined the team this month as it has grown, according to one person with knowledge of the staffing. Burnham’s ally Louise Haigh, the first secretary of state, is leading three “task forces” ahead of the plan on the cost of living, public control of utilities and the renewal of run-down high streets.

The 10-year plan won’t have all the answers, though. POLITICO reported this week that while it will contain a high-level vision, priorities and principles for the water industry’s future, much of the granular detail of how future ownership models will work is expected in the 2027 spending review. 

One Labour figure who has spoken to the government about the water industry said they believed ministers will choose “different horses for different courses” — an array of ownership models for various firms depending on how stricken they are. A second Labour figure talking to the government said: “You can’t do this in two years.”

The Labour official quoted earlier in this story said they feared the 10-year plan would be a let-down. “These big plans governments are always throwing forward to have a habit of turning out quite thin,” this person said. “At which point we all realize there was never a big plan all along.”

There are other plans to come, including an imminent plan to reform the welfare system by the former Labour Cabinet minister Alan Milburn, and a white paper in December that is due to set out a timetable, legislation and borders for plans to move more power outside Whitehall.

Devolution is one area where Burnham has moved quickly, pleasing many regional mayors. But some officials in the union movement fear that Burnham’s initial focus on devolution risks taking up bandwidth that could have been spent on other issues. A fifth government official added that they were worried all the conversations between different public bodies could crowd out the push for growth. They said: “I sit on Teams calls that are 30 people, all from different arms of the state. Sometimes I think — ‘You do know none of us are making this money?’”

‘Rubber hits the road’

Then there is the 2027 spending review. 

It will set out how the state allocates money across its arms for the next three to five years — turning these plans and the difficult trade-offs they require into reality.

The Treasury has previously confirmed it will set out the entire pathway to lift U.K. defense spending from 2.6% of GDP this year to 3.5% by 2035. It is also likely to address questions about Burnham’s pledge to create a state-funded national service for social care, funded by reducing the rise in the state pension.

There will be months of to-and-fro between Whitehall departments and a Treasury looking for cuts, efficiency savings or both to balance the books.

“The spending review is when the rubber hits the road,” said the fifth government official quoted above. “It’s already beginning. Departments are beginning to work out sacrificial lambs to offer up.”

Three people with knowledge of the conversations said Healey still hasn’t decided when in 2027 he wants to hold the spending review, though it is broadly expected no earlier than the summer. He has been privately musing with allies about the options.

Curtice said Healey’s options are essentially to hold a small fiscal event followed by a spending review next summer, or to hold a spending review with an annual budget simultaneously in fall 2027.

She added: “The big question we’ve posed for this budget — that we’re not necessarily expecting an answer to — is what is the spending total for the spending review that we know needs to come next year? Until we know the answer to that question, we don’t really know whether we can believe the path of tax and borrowing that is set out in the budget.”

Senior Conservatives argue the spending review will be so difficult that Burnham could call a snap election before it is due. He has insisted he will only force it in 2029.

Until then, much of the spending review work will fall to Reynolds. Her predecessor Darren Jones argued the existence of the 10-year plan and spending review meant it would be sensible for next week’s budget to be a little low-octane.

“The prime minister’s been clear that the 10-year plan is going to be the political strategy for the government,” Jones told POLITICO. “So I think it makes sense to do all of your public spending decisions after the publication of the 10-year plan. It would be odd if this October’s budget tried to deal with all the big trade-offs on defense, mayoral budgets, or more ownership of public utilities.

“So I think in many ways, actually the 10-year plan is more interesting this autumn in terms of the political strategy of the government. 

“And then 2027 will be the year in which ministers will have to start thinking about how to implement that strategy operationally, including in public spending decisions.”

Much of that will fall to Burnham himself.

Crowdsourcing

Rayner’s joke about “Andy Time” was not without cause.

Unlike Starmer, Burnham gets into the weeds of an issue even if it derails his schedule. The prime minister chews things over with colleagues so much that some have joked they could just remove his Downing Street desk, said the third government official quoted above. By contrast, Starmer used to retreat to No. 10’s first-floor study to read away from the hubbub.

Burnham’s approach can lead to Downing Street making decisions late in the day. One former No. 10 official said: “A Prime Minister needs to do 80 things in a day and if that goes to 60, then you end up massively behind.”

The flipside is that ministers and officials know what their leader actually wants from them — even if they are left to work out the detail.

“It’s like we’ve woken up from a political coma,” one backbench MP enthused. “I know what the prime minister thinks,” added the third government official quoted above.

Aides used to complain that Starmer, by contrast, tried to be efficient but would end meetings without setting a clear political direction. “Keir was always a stickler for time, even if the issue wasn’t resolved,” as one former colleague put it.

Kemi Badenoch, the Conservative leader, suggested this week that Burnham was failing to flesh out the detail behind his vision. “Talking about it is not making a decision,” she said of social care reform at prime minister’s questions. Burnham was visibly frustrated—insisting he was making the long-term decisions other politicians duck.

And for the prime minister’s allies and most of his MPs, the vibes remain good. The No. 10 environment is more relaxed and open. Junior ministers, in meetings over bacon sandwiches, feel they can share their views and be heard.

“There’s definitely still a buzz,” said the person who talks regularly to Downing Street, who was quoted earlier in this story. “But you don’t want to spend too much time buzzing while Rome burns. There’s a reality check that I feel is going to come imminently.”

Patrick Baker, Sascha O’Sullivan, Esther Webber and Emilio Casalicchio contributed reporting.

Germany leads push against EU’s ‘associate membership’ label for Canada

22 October 2026 at 20:28

BRUSSELS — Germany, France and at least six other EU countries are pushing against “associate membership” as the name for closer EU ties with Canada, six diplomats involved in the negotiations said.

The label is one of the main sticking points in talks over a joint declaration setting areas of deeper cooperation between Brussels and Ottawa ahead of the EU-Canada summit in Montreal on Oct. 29-30, the six diplomats and two EU officials told POLITICO. They were granted anonymity to discuss the sensitive negotiations.

The diplomats said the objections center on the wording of “associate membership,” not the broader goal of closer ties.

Five weeks after European Commission President Ursula von der Leyen first proposed Canada becoming an “associate member” of the EU in her State of the Union speech — to the surprise of both Ottawa and EU capitals — and one week out from the summit itself, the disagreements show the term remains a political and messaging hurdle.

The EU “is really keen to have close cooperation with Canada,” said Bernd Lange, chair of the European Parliament’s trade committee. But, he added, he too would avoid using the term “associate membership,” as it leaves too much room for confusion with other forms of EU partnerships, such as association agreements.

Germany is pushing hardest to remove the label from the draft declaration, five of the EU diplomats said, while France, Italy and Belgium were among those expressing skepticism about the phrasing.

The central concern among the capitals that object to the term is that the EU is labeling the relationship before agreeing what it would mean. They argue the name should have been defined before negotiations with Canada began, four diplomats said, with two others adding that the objecting capitals are annoyed that von der Leyen proposed the label without first consulting national governments.

“We’ve definitely put the cart before the horse,” one diplomat said. “We’re announcing something and then figuring out how to flesh it out.”

A representative for the German Permanent Representation to the EU declined to comment.

The European Commission will engage with skeptical capitals and work on acceptable language, an EU official said, adding that they believe the countries’ doubts stem from not yet understanding what the proposal means in concrete terms.

There is no disagreement over the aim of strengthening an already close relationship, including economic and defense cooperation, international engagement and institutional links, the official stressed. “What matters is what we do, not what we call it.”

What’s in a name?

The label aims to describe the EU-Canada relationship as closer than Brussels’ partnerships with other countries, without making Canada a member of the bloc, one of the diplomats said. Canada cannot become a formal member, as the EU’s founding documents limit that status geographically to Europe.

The distinction matters because existing arrangements with European neighbors, including the U.K., Switzerland and countries in the European Economic Area, center largely on access to the EU’s internal market. Canada, on another continent, is not seeking the same model or the four freedoms of movement, the diplomat said.

The idea is to identify practical areas for cooperation first, then decide whether new treaties or formal negotiations are needed, the same diplomat said.

Work on six priority areas is expected to begin after the summit, with progress reviewed after six months and then a proper stock-take one year later at the next EU-Canada summit, which will be held in Europe.

The stock-take would consider whether Canada has moved closer to the EU by becoming a full member of Horizon Europe and Erasmus, is building undersea cables and stockpiling critical raw materials with the EU, and is exploring pension-fund investment. If Canada meets those criteria, it could become the EU’s first associate member, the diplomat said.

The diplomat described the idea as an experiment, adding that “Canada might be the only one” to ever get associate membership of the EU.

The plan reflects changing calculations on both sides. Canada has long depended heavily on trade with the United States, but tariffs and political pressure from Washington have sharpened concerns about that reliance. Prime Minister Mark Carney wants to diversify trade and modernize the country’s infrastructure, including energy links that largely run north to south.

For the EU, a closer partnership with Canada is part of a broader effort to build relationships as pressure from the United States, China and Russia grows. The summit is intended to give the partnership a more distinctive political framework.

The declaration is still being revised, with EU ambassadors due to discuss it again on Monday. One of the EU officials cautioned that several parts of the declaration still had comments outstanding.

Another controversial element concerns energy cooperation, with Austria pushing back against any mention of deepening nuclear ties, while France, Romania, Slovakia and some other countries support its inclusion.

A spokesperson from the Canadian mission to the EU did not respond to POLITICO’s request for comment.

‘There is no immunity to Donald Trump’

22 October 2026 at 16:49

he world is starting to understand that there is no way to fully and lastingly protect itself from President Donald Trump.

The man just can’t let things go — and he’ll get creative to get what he wants.

The latest blowup over Ukraine is emblematic of Trump’s wily persistence, and it suggests a challenging two years lie ahead for the international set even if Democrats gain some power in the midterm elections.

Not that long ago, Trump seemed to have patched up ties with Ukrainian President Volodymyr Zelenskyy as Kyiv made gains against Russia. Trump signed legislation last month that was championed by his late friend, Sen. Lindsey Graham (R-S.C.), to impose heavy new sanctions and tariffs to punish Russia for its war on Ukraine.

This month, the original Trump — the one who fawns over Russian leader Vladimir Putin and despises Zelenskyy — roared back. He waived many of the legislation’s penalties on Russia, moved to buy Russian diesel and signaled he’s more interested in doing business with Moscow than seeking justice for Kyiv. Ukrainians suspect the U.S. has pressured them by throttling its satellite connections and intelligence-sharing. (The Trump administration disputes much of this.)

“Russia, frankly, has been fine on Ukraine,” Trump said Monday as he welcomed the idea of an arms control summit with Putin and Chinese leader Xi Jinping that might include talks about Ukraine.

The lesson, foreign officials and others steeped in diplomacy tell me, is that you cannot truly change Trump’s mind or stop his overall trajectory. Even if Trump seems briefly chastened or stages a tactical retreat, he will eventually return in new, often-surprising modes to push his original views and goals. He will try to exhaust you into submission.

Imagine how startling it is to be Ukrainian these days as Trump pressures you to make concessions to Russia by blaming you for a global energy crisis he caused by launching a war on Iran. Or what it’s like for officials across European capitals trying to craft a response, knowing there’s never an end to the process.

“There is no immunity to Donald Trump. He makes a deal in order to make a better deal the next day,” one senior European official mused, having been granted anonymity because the topic involves sensitive diplomacy.

It’s hard to blame world leaders who think they’ve learned to manage Trump only to be bewildered by a sudden left hook on his part. Foreign policy is often driven by hope when you lack good options. And Trumpology is a confounding, but still a relatively new, subfield.

Besides, Trump’s messaging is inconsistent, incoherent and nonstrategic — characteristics that can obscure his single-minded pursuit of his goals. So the global actors dealing with him — whether it’s the Gulf Arab states who shower him with gifts or the Canadians furious over his trade and territorial threats — sometimes think they’ve come to terms with him only to find they’re fighting on a newly configured plane.

A Supreme Court ruling that gutted many of Trump’s tariffs earlier this year was good news in many capitals. But since then, the so-called Tariff Man has moved to impose the import taxes under pretexts not considered by the court, including turning to accusations involving forced labor.

The White House doesn’t dispute Trump’s aggressive tactics.

“There is no greater fighter for America First interests than President Trump — and he is willing to look anyone in the eye to deliver wins on behalf of the United States,” spokesperson Anna Kelly told me in a statement.

The Greenland saga shows the limits of trying to mollify Trump.

In his first term, Trump wanted to buy the frozen island. The idea was shelved amid global laughter, but authorities in Greenland and Denmark made it clear to Trump that they welcomed more U.S. investment in the Danish territory.

In his second term, Trump huffed and puffed about an all-out U.S. takeover of Greenland, only to agree in September to an expanded U.S. military footprint that he could have gotten anyway under existing, decades-old diplomatic accords without all the drama. The whole affair has led to lingering anger in Europe about what Canada’s leader called a “rupture” in the global order — but many European officials hoped that the saga had faded away.

Yet, it’s far from certain that Trump has given up on possessing Greenland. Just days ago, he touted on social media plans to start oil, gas and mineral exploration in “our new and beautiful Greenland.”

The use of “our” is more than a little suggestive.

Defying Trump, too, can get you only so far.

Brazilians effectively told Trump to take a hike when he used tariffs and sanctions to punish the country for charging its former president, Jair Bolsonaro, in a coup attempt.

A few months later, as Bolsonaro was about to start his prison sentence, Trump seemed to admit defeat in his effort to help his political ally. “That’s too bad,” he said in November 2025, with little emotion. (“Brazil Defied Trump and Won,” The New York Times declared.)

But Trump wasn’t done with Brazil. He and his team have pursued efforts to undercut the current Brazilian government while quietly backing Bolsonaro’s son, Flávio, in his efforts to win the presidency this year. The runoff election is on Sunday, and it’s tight.

World leaders are doing what they can to make their countries Trump-resistant, if not all-out Trump-proof.

That has meant everything from diversifying their sources of trade and security alliances to joining Trump on ventures that, on the surface at least, can be helpful to them. (Then there are the many countries, especially in Africa, that diplomats privately tell me are happy to be off Trump’s radar.)

My takeaway from watching all of this, though, is that it’s not enough to stay one step ahead of Trump. You have to stay several steps ahead, and you have to be wildly imaginative about the lengths to which Trump and his devoted aides are willing to go to complicate your life.

The second Trump administration is filled with people who have turned to unique, bizarre and clever interpretations of law and reality to push his agenda. It’s not always clear who is behind which move, but it’s hard to imagine Trump isn’t fine with most of what’s happening.

It’s why a teenager is being held in immigration detention for the actions of his grandmother decades ago. It’s why Congress can scream and shout about its spending orders yet Trump ignores it.

Sen. Chris Murphy (D-Conn.) said other nations should not hope that the Republican Party will shed Trump’s worldview, including his disdain for allies, once Trump’s out of power.

“I would love for our allies to know that we have consistent common adversaries that we’re going to work together to fight. I just don’t know that you can make that guarantee,” Murphy, a frequent Trump critic, told me. “That’s painful to say, but given the state of the Republican Party right now, it’s true.”

I understand why Ukraine and the European Union are trying to diversify their sources of intelligence and military industrial bases as Trump keeps chasing love from Russia.

Despite Secretary of State Marco Rubio’s claims, the reality is that the United States can no longer be trusted for such security assistance.

But it’s not enough to find new intelligence partners or weapons manufacturers. You have to ask bigger questions, like, “What are the untapped streams of intelligence that no one knows are out there? What’s a potential weapon no one has considered? How can I acquire what I need before Trump stops me?”

Governments need to have plans — now — for scenarios that seem completely crazy. Better to be wrong than unprepared.

Still, even if you do all of that … “I don’t think it’s possible to stay two or three steps ahead of Trump,” said Charles Kupchan, a former senior national security official during the Obama administration who apparently enjoys raining on parades.

“He acts on impulse,” argued Kupchan, who has a new book out on the crumbling world order. “We need to try to limit the damage he’s causing and ride him out.”

A Democratic win in November’s midterms — one or both chambers of Congress — is unlikely to do much to rein in Trump’s actions abroad during his final years, current and former U.S. and foreign officials tell me.

He still has the veto and has been willing to ignore congressional demands. There’s also the fact that presidents have significantly more power to act in unilateral ways overseas than they do domestically.

Ukraine, the European Union, the world — all will be dealing with a politically wounded Trump who’s likely to double down on what he feels he must have.

“He’s going to be angrier,” Murphy predicted.

EPP teams up with far right to win Parliament vote delaying EU methane law

22 October 2026 at 12:33

BRUSSELS — The center-right European People’s Party joined forces with far-right lawmakers Thursday to push through a vote delaying a key EU climate law governing the methane emissions of oil and gas companies.

It was the latest example of the European Parliament’s biggest group ignoring old taboos and working with the far right to pass legislation weakening environmental rules.

The EU Methane Regulation requires fossil fuel companies to monitor and report emissions of methane, a potent greenhouse gas that’s a major cause of global warming.

The requirements were due to come into force in 2027, but the Commission last week proposed delaying implementation by a year following intense lobbying from the oil and gas lobby and the U.S. government.

The EPP proposed going further, calling for a three-year delay. The amendment passed by 326 votes to 244, with the support of far-right groups Patriots for Europe, the group of Marine Le Pen’s National Rally; and Europe of Sovereign Nations, the group of the German far-right party the AfD. Giorgia Meloni’s European Conservatives and Reformists also backed the proposal.

Most lawmakers from other centrist and center-left groups, including Renew Europe, Socialists and Democrats and the Greens, opposed the three-year delay.

The right-wing majority also voted for an amendment that would force the Commission to review the law and propose any necessary changes by mid-2029.

It comes a year after the EPP — the group of Commission President Ursula von der Leyen — set a new precedent when it sided with the far right to vote to weaken environmental reporting rules for companies, breaching the so-called cordon sanitaire. Since 2024, right wing groups have made up a majority in Parliament.

Thursday’s vote, if adopted by other EU institutions, would move the deadline for implementation of rules to 2030 — well beyond the Commission’s proposed delay to 2028.

It comes after a months-long pressure campaign by oil and gas companies, which claimed that key elements of the rules requiring them to monitor and track leaks of the potent greenhouse gas were unclear, risking compliance failures that could deter critical supplies from reaching Europe.

The Parliament’s position aligns it with industry’s own call for a three-year delay, and lawmakers echoed the sector’s concerns about the risk of supply disruptions linked to hasty implementation of the rules.

“The postponement of the requirements for oil and gas importers in the Methane Regulation is a matter of political responsibility … We need legally certain rules in place … to safeguard Europe’s energy supply and competitiveness,” MEPs Andrea Wechlser and Christian Ehler, both in the EPP, said in a statement to POLITICO.

“The crisis in the Middle East is already putting massive pressure on energy markets—about 20 percent of global LNG trade passes through the Strait of Hormuz,” they added.

The Parliament’s position could empower national delegations — which failed to agree on a joint position Wednesday after pushback from Germany, Italy and Poland — pushing for a longer delay. Member countries hope to find a compromise next Wednesday after failing to find agreement earlier this week.

CORRECTION: This article has been updated to reflect that Parliament voted to delay the rules until 2030.

Brussels proposes delaying tuition fee demand till after UK-EU summit

22 October 2026 at 13:48

LONDON — Brussels is proposing to extend negotiations on its core demand for cut-price tuition fees for EU students studying in the U.K. beyond next month’s leaders’ summit, as a package of deals nears completion, three EU diplomats with knowledge of the talks told POLITICO.

The European Commission on Wednesday presented the option to member countries of decoupling the tuition fee demand from the long-delayed U.K.-EU summit on Nov. 20.

A postponement would clear the way for a deal to be struck on other key elements of Britain’s “reset” with the bloc, including new agreements on agri-food trade, emissions trading, and a youth experience scheme.

The diplomats — all of whom were granted anonymity to speak freely about ongoing talks — said the proposal would involve asking the U.K. to commit to finalizing an agreement on tuition fees within six months. The proposal was first reported by the Financial Times.

The EU is pushing for European students to pay the domestic rate for tuition fees when studying at British universities, as they did before Brexit.

But one of the diplomats highlighted that the tuition fee demand was still part of a wider “package” linked to the other three agreements slated for the summit, and that the agreements would not enter into force until there was agreement on all areas. 

In addition, the diplomats confirmed that both sides were considering a joint summit statement on economic security, amid mounting U.K. concerns about the EU’s Made in Europe proposals.

Meanwhile, negotiations on a sanitary and phytosanitary (SPS) deal — which would see the U.K. and EU align on agri-food standards — are close to completion, two of the diplomats said. The deal would include temporary arrangements for gene-edited plants and novel foods, such as lab-grown meat.

For gene-edited plants, the U.K. wants to keep its own rules until equivalent EU rules come into force, and has pledged not to change them in the meantime.

For novel foods, the U.K. would follow EU decisions to approve or reject products, but could set its own rules for products the EU has not yet assessed. In both cases, the products would be sold only in Great Britain and would not have access to the EU single market.

Dan Bloom contributed to this report

Water sector to wait until 2027 for full details of Burnham’s overhaul

21 October 2026 at 17:14

LONDON — Water firms and campaigners are set to wait until next year to see the full details of Andy Burnham’s plans to overhaul the sector in England.

Britain’s new prime minister has promised greater “public control” of the water industry as a centerpiece of his domestic agenda, partly reversing a wave of privatization that began in the 1980s. Ministers are due to unveil more detail in a “10-year plan for Britain” that is currently expected in December.

However, while this 10-year plan will contain a high-level vision, priorities and principles for the industry’s future, much of the granular detail of how future ownership models will work in practice is only expected later, said two people with knowledge of the discussions.

Some of these key details will be laid out in Chancellor John Healey’s multi-year spending review at some point in 2027, added the two people, who were granted anonymity to discuss evolving policy. One said the spending review — a date for which has not been decided — was where the full details would be “nailed down.”

These include any fiscal implications for the Treasury, which could have to find billions of pounds if ministers decided to transfer privately-owned shares to the public purse.

This appears to mirror an approach Burnham has taken to policymaking for decades, first as a Cabinet minister and then mayor of Greater Manchester before he took over 10 Downing Street in July. He is known for setting out a broad direction which his officials can later use to pin down detailed policy, while also seeking buy-in from private industry.

With a general election due by summer 2029, however, any wait will compress the prime minister’s window to enact far-reaching reform before he goes back to the electorate.

‘£40 being added to every single water bill’

England’s privatized water firms also argue that uncertainty over the sector’s future is damaging investor confidence.

The industry trade association Water UK has said the entire industry risks being downgraded by the credit ratings agency Moody’s, which would add £40 to customers’ annual bills.

Water UK Chief Executive David Henderson urged the government to move ahead with reforms suggested last year by former Bank of England Deputy Governor Jon Cunliffe, before ministers decide the overall path of how the sector is owned.

The Cunliffe report “was given to the government 15 months ago and the credit rating agencies are watching,” Henderson told POLITICO. “If the government doesn’t pretty soon decide what it wants to do with that report, then we risk a downgrade, as Moody’s has indicated. And if there’s a downgrade, that would sadly see £40 being added to every single water bill across England and Wales. That’s the last thing anybody wants.”

He added: “We still have no idea how [a proposed] new regulator will look, what status it will have, what its duties will be, which parts of the Environment Agency will stay in the Environment Agency, and which parts will go into the new regulator. That is causing uncertainty … an important consideration for any investor.”

One government official insisted the 10-year plan would contain some finer details of plans to overhaul the water industry, though they accepted that fiscal implications were always dealt with in fiscal events such as the spending review. 

Environment Secretary Angela Eagle is also due to bring a water bill to parliament before Christmas with separate policy, such as closing what Burnham has called “loopholes used to pay excessive bonuses” to water company executives. It will also contain scrutiny powers for regional mayors.

Burnham announced last month that the bill would lift a ban on the government owning more than 3% of shares in any English water firm. But he has also long made clear that he would not fully nationalize the industry, a move the government previously estimated would cost £100 billion for England and Wales together.

First Secretary of State Louise Haigh, one of Burnham’s most powerful allies in government, is leading three task forces including one on public control of water alongside housing, energy and transport.

Officials have been working through a “spectrum of options” for how public control in the water sector will look, a second government official said. They added that ministers are due to begin deciding which option — or combination of options — will be taken forward before the 10-year plan.

Russia energy sanctions will stay despite US diesel deal, von der Leyen says

21 October 2026 at 11:31

STRASBOURG — The EU will not ease sanctions on Russian fossil fuels even after the U.S. struck a diesel deal with Moscow, European Commission President Ursula von der Leyen said Wednesday morning.

In a speech to EU lawmakers, she warned “Russia is not a trusted supplier of energy because it would, this is our experience, at any time weaponize energy dependencies to blackmail others,” arguing it was Russia that cut gas supply to Europe. “That is a lesson Europe certainly will not forget.”

Earlier this month, U.S. President Donald Trump announced an agreement with Russian President Vladimir Putin to ease sanctions on imports of diesel fuel until April 2027, as global oil prices surge. 

A few days later, Trump defended the deal, arguing the EU had also purchased billions in fossil fuels from Moscow, without providing further details. 

Von der Leyen also addressed the trade imbalance with China.

She confirmed that the European Commission would present a new deterrent tool as soon as December. This tool is expected to be based on the one proposed by Berlin and Paris earlier this month and would empower the EU executive to restrict or even ban imports from countries seen as distorting the single market. It would require minimal consultation from member states, allowing faster action from Brussels.

This instrument would come alongside a diversification instrument and a solidarity mechanism which are already in the works.

“We see jobs lost in our industrial heartlands,” von der Leyen said, adding that the EU will continue to seek deals with Beijing after an agreement to cap Chinese hybrid imports. As POLITICO reported last week, the EU is expected to prioritize chemicals and industrial machinery in its efforts to protect European industry from Chinese competition.

Camille Gijs contributed to this article.

EU to press Canada and UK for more Ukraine funding

21 October 2026 at 04:00

BRUSSELS — The EU is preparing to try and persuade Canada and the U.K. to increase their support for Ukraine as part of efforts to plug the €70 billion funding gap Kyiv faces next year.

The EU-Canada summit on Oct. 29-30 and the EU-U.K. summit on Nov. 20 will give Brussels a chance to make the case at the highest level. With Kyiv’s financing needs rising and U.S. backing uncertain, Brussels is increasingly looking to non-EU allies to contribute more, five EU officials, including two from the European Commission, and two EU diplomats told POLITICO.

The EU and its member countries provide 80 percent of Ukraine’s external aid, Commission President Ursula von der Leyen said Friday. “We urgently need other partners to step up.”

European Council President António Costa told the European Parliament on Wednesday morning that “international partners have to intensify and step up financial support to Ukraine.”

The EU has committed to a €90 billion loan for 2026 and 2027, intended to cover about two-thirds of Ukraine’s needs. Brussels had expected other partners — including Canada, Japan, South Korea, Australia and Norway — to provide another €45 billion, but much of that money has been slow to arrive as other governments have yet to firm up or disburse the support Brussels expected.

While calls to help Ukraine defend itself are not new, the projected 2027 bill has grown as Russia intensifies its assault, the U.S.-Israeli war with Iran drives up costs and Washington shifts toward positions more favorable to Moscow — leaving Europe and other allies to shoulder more of the cost of keeping Kyiv afloat.

Brussels is heading into negotiations about closer economic and defense ties with London and Ottawa. Diplomats and EU officials said they do not expect a formal bargain, but that support for Kyiv from the EU’s partners is likely to shape the political climate around the talks. Like others in this article, they were granted anonymity to speak about the sensitive diplomacy.

European Council President Antonio Costa, Ukraine president Volodymyr Zelenskyy and European Commission President Ursula von der Leyen at the European Council Summit in Brussels on Oct. 16. | Nicolas Maeterlinck/Belga/AFP via Getty Images

The EU has also raised Ukraine’s 2027 financing needs at meetings of the International Monetary Fund, the G7 and the G20, as well as with Gulf Cooperation Council countries.

“During my meetings in Bangkok, the need to secure financial support for Ukraine in 2027 was a prominent topic,” European Economy Commissioner Valdis Dombrovskis told POLITICO, referencing last week’s IMF and World Bank Group meetings. He said he called for “broad burden sharing and stressed the importance of international partners each doing their part as Ukraine continues fighting Russian aggression.”

All the EU officials and diplomats stressed that the push was not a criticism of the U.K. or Canada, both of which are strong supporters of Ukraine. The point, they said, is that Kyiv’s needs have grown.

The U.K. says it has committed a total of £25 billion for Ukraine and Canada has promised the equivalent of €5.4 billion in military assistance and €8.2 billion in direct financial support.

The EU and its member countries say they have contributed over €231 billion since Russia’s full-scale invasion, including military aid, budget support and guarantees, support for Ukrainians hosted in the bloc, and proceeds from immobilized Russian assets — an amount one senior EU diplomat described as already “over and above.”

How to meet Ukraine’s financial needs has become “a central discussion in every single meeting” with partners supporting Kyiv, a Commission official said.

The push to secure Ukraine’s financial needs comes as support for Kyiv will be tested in a series of elections across Europe next year. In France, far-right front-runner Marine Le Pen has vowed to end aid if elected president in 2027, while in Italy, Prime Minister Giorgia Meloni faces a challenge from Russia-friendly Roberto Vannacci ahead of next year’s election.

The looming votes, combined with the unpredictability of Washington’s backing for Kyiv, mean European countries need to look beyond their own budgets, the senior diplomat said. “We need to think wider and broader.”

The EU is also urging the Ukrainian government to secure more support from non-EU backers. “This is the first next step that they need to secure from their partners,” the Commission official said.

Not ‘pulling a Trump’

EU ambassadors are set to talk about the upcoming Canada and U.K. summits tomorrow, with Ukraine funding expected to form part of the discussions, the two diplomats said.

Brussels, “without pointing the finger,” wants to use the run-up to the meetings to press for broader support, the senior diplomat said. But the EU “won’t be pulling a Trump” and explicitly linking favorable treatment to contributions to Ukraine, they added.

The Commission has not set out what it will ask partners for or how any request might connect to trade and defense talks. The diplomat said the EU still needed to work out “how much will translate in joining those dots.”

Ukraine’s Foreign Affairs Minister Andrii Sybiha greets British Prime Minister Andy Burnham upon his arrival by train in Kyiv for indepence commemorations on Aug. 24. | Henry Nicholls/WPA Pool/Getty Images

Von der Leyen proposed making Canada the EU’s first “associate member” in her State of the Union speech last month. The October summit in Montreal is an opportunity to develop the idea.

Ottawa will participate in the EU’s SAFE program, which finances joint defense procurement, giving Canadian companies preferential access to SAFE-funded contracts. Closer defense cooperation and industrial access could form part of the wider conversation about support for Kyiv, one of the diplomats said.

In a statement to POLITICO, Kathryn Serieux, a spokesperson for Canada’s Privy Council Office, said Ottawa “is and has been a steadfast supporter of Ukraine,” with Canada committing nearly C$26 billion in military, financial development and humanitarian assistance.

“Canada continues to stand by Ukraine and remains engaged with international partners on Ukraine’s needs,” Serieux said.

The U.K. summit is expected to advance Prime Minister Andy Burnham’s promised reset with the bloc, including agreements on youth mobility, food and emissions trading. Burnham has said the status quo is “not good enough” and wants Britain to move closer to the EU.

London wants U.K. companies to count as European under the proposed Industrial Accelerator Act, which would give preference to goods made in Europe in public contracts and industrial support. British officials worry U.K. firms could lose out despite close links between British and European supply chains.

Three U.K. officials said Tuesday they had not heard of a request for Britain to provide more support for Ukraine in exchange for letting its companies qualify under the act. A fourth EU official said Ukraine was expected to feature in the summit declaration with the U.K., but that it would reflect both sides’ efforts to help Kyiv, rather than a Brussels demand for more support.

The EU is also pressing Japan to increase its contributions, with one senior EU official saying it was lagging in 2026. A person familiar with the thinking in Tokyo pushed back on the idea that Japan was not pulling its weight, saying Tokyo had already given around $20 billion in support to Kyiv — but there could be room for more if Ukraine requested it.

Tokyo is also seeking assurances that Japanese companies will retain access to the EU market, following concerns the Industrial Accelerator Act’s “Made in Europe” preferences could put its firms at a disadvantage.

The Mission of Japan to the EU didn’t respond to a request for comment.

Australia says it has not yet received a request for more funding for Ukraine for 2027. Canberra is likely lower on the list, if it is on it at all, because its prime minister and foreign minister met Ukrainian President Volodymyr Zelenskyy at the U.N. General Assembly last month and announced additional funding and a security agreement, an Australian official said.

Dan Bloom contributed reporting from London. Amanda Copp contributed reporting from Canberra. Mike Blanchfield contributed reporting from Ottawa. Gregorio Sorgi contributed reporting from Brussels.

China threatens retaliation if UK follows the EU on tariffs 

20 October 2026 at 19:26

LONDON — Beijing has threatened to retaliate if the U.K. raises tariffs on Chinese electric vehicles, aligning with the European Union.

Responding to POLITICO’s story that Britain was looking to act in “lockstep” with the bloc to counter China’s market dominance in electric cars, a spokesperson from the Chinese Ministry of Commerce said: “If the U.K. insists on imposing restrictions on Chinese electric vehicles, China will resolutely retaliate and safeguard the legitimate rights and interests of Chinese industries.”

The U.K. is currently working with its European partners to avoid a 10% electric vehicle tariff from the beginning of next year, when stricter rules of origin under the Brexit trade deal kick in. 

The British government is also lobbying to be included in the EU’s Made in Europe policies, which give Brussels-made products preferential treatment in certain procurement projects. 

U.K. Trade Minister Anas Sarwar told POLITICO on the sidelines of the German-British Business Summit at Mansion House last week that “the more that the U.K. and the EU work together and act in lockstep, the better it is for both the U.K. and the European Union.” 

“The automotive sector and partnership remain strong, but do we have to grapple with the challenge that comes from rapid expansion in China? Of course we do,” he added. 

China urged Britain to follow World Trade Organization rules and warned it against copying Brussels’ approach, arguing that tariffs on Chinese EVs would be discriminatory. 

“China urges the U.K. to abide by WTO rules, think carefully, and not follow the European Union,” said the Chinese Ministry of Commerce spokesperson. “China will closely monitor the U.K.’s developments.”

5 things the EU wants to change about its Arctic policy

20 October 2026 at 18:47

BRUSSELS — The European Union is beefing up its presence in the Arctic to catch up with neighboring powers carving new trade lanes and drilling for resources under the melting ice.

On Tuesday, the EU unveiled a new plan called Northern Neighborhood. It’s meant to prepare for rising military and commercial activity in the north driven by climate change, and calls for new transport, research and security infrastructure in the region.

“The Arctic is one place where the tectonic plates of geopolitics are colliding. And it’s not someone else’s frontier. It’s part of the European Union,” Commission President Ursula von der Leyen declared as she unveiled the strategy.

She pointed to Russia’s expanding military footprint and the race for emerging shipping routes and critical resources as forces reshaping Europe’s security and economic future.

Climate change is dramatically affecting the Arctic. Planet-warming emissions are making the ice melt faster, disrupting the region’s fragile ecosystems. But where the ice is disappearing, countries like China, Russia and even Canada see an opportunity.

The EU is now scrambling to update its existing policies on the Arctic — once largely focused on environmental protection — to give more importance to security, shipping and extracting resources.

The strategy calls for a rebranding of the EU’s existing partnerships with Norway, Iceland, Canada and the U.K., backed by regular summits to set joint priorities and launch projects.

Here are five things Brussels wants to change about its Arctic policy.

1. Defense and security 

The strategy warns that Russia is rebuilding its military presence in the Arctic and that China has growing strategic ambitions in the region.

The EU plans to set up a pilot research project using satellite and maritime observation in 2027 and share ship-tracking data to help identify Russian shadow fleet vessels.

In the longer term, it wants EU countries to lead on a maritime security hub to pool intelligence on threats ranging from undersea cable sabotage to illegal fishing. It also calls for setting up an Arctic Cable Hub alongside NATO to monitor and protect subsea cables in the North Atlantic and the Arctic. The strategy lacks any information on funding for these projects, however.

Finnish MEP Mika Aaltola of the European People’s Party said the new focus on the Arctic is long overdue.

“Europe hasn’t been thinking about [the Arctic] enough,” Aaltola said. “Because of the ice melting and climate change, it’s becoming kind of the next great game. And if that happens, then what are the European positions when it comes to Russia, China and also the United States?”

2. Access to energy resources

The new policy sticks with EU promises not to drill for fossil fuels in the Arctic.

“The EU remains committed to ensuring that oil, coal and gas stay in the ground, including in Arctic regions,” it reads. Instead, Brussels promises to develop renewable energy projects in the region but drops an old commitment to convince the rest of the world to follow its lead. 

“It is good that the Commission maintains its opposition to oil and gas drilling in the Arctic,” said Delara Burkhardt, a Socialist MEP, but not pressing for a global ban “weakens the EU’s ability to push for stronger international protection and leaves the door open for other countries to exploit one of the world’s most fragile ecosystems.”

The EU’s former Arctic policy — drafted in 2021 — committed the bloc to pursuing an international moratorium on Arctic oil and gas extraction. 

Norway — which supplies a lot of energy to the EU — has made it clear it would still drill in the Arctic regardless of the bloc’s position.

3. Critical raw materials 

The EU is under pressure to secure new supplies of critical raw materials to reduce its dependency on China.

The new strategy says it will continue working with Canada, Greenland, Norway and the United States to develop critical raw materials projects in the region, but insists it will do so while following the “highest social, environmental and governance standards,” and work to the “benefit of local communities in respect of Indigenous Peoples’ rights.” 

Brussels has already labeled several critical raw materials projects, including the Sokli project in Finland and the Per Geijer rare earth deposit in northern Sweden, as “strategic” under EU law, which means they could benefit from faster permitting procedures.  

But some of these projects face serious local resistance from local and indigenous communities, who say the mining plans threaten reindeer herding and protected ecological sites. 

4. New trade routes

Melting ice is opening up new shipping routes in the far north, and the EU is worried that it could be sidelined from the region. But the strategy offers little on that front; its only action is a study on new shipping lanes.

The number of vessels operating in the area covered by the Polar Code — international regulations covering shipping in the Arctic and Antarctic — rose by 40% between 2013 and 2025, while the total distance sailed nearly doubled, said Michael Kingston, a special adviser on polar issues to the Arctic Council on marine protection.

Recent transits by Chinese and South Korean container ships using the Northern Sea Route running along Russia’s Arctic coast show the appeal of a route that is about 20 days faster than conventional routes, he added. 

“Russia builds the infrastructure, China facilitates and funds some of it,” Aaltola said, calling it part of a “grand bargain” between the two.

He complained that the EU is left on the sidelines. “When it comes to the Arctic, there is a vacuum of interest, and there’s also a vacuum of resources and institutions participating.” 

The route is still mostly seasonal for Russian oil and gas tankers, said Ksenia Vakhrusheva, project manager and Arctic project adviser at the environmental group Bellona. Ice, unpredictable weather, increased insurance costs and Moscow’s control over the route make it unlikely to become a mainstream commercial corridor anytime soon, she added.  

Europe also has leverage as the final customer for Chinese shipments, Vakhrusheva said.

“If the EU sends a strong message to China that they do not want goods shipped via NSR, China won’t use this route for transit,” she said. “For NSR to become a valid transit route you need two sides,” she said, “a seller on one side and a buyer on the other.” 

5. Environmental protection 

The strategy is light on measures to shield the Arctic from the impact of global warming. However, it does warn that increased shipping in an “inherently harsh and poorly charted environment” raises the risk of “catastrophic accidents, severe marine pollution” and hybrid interference.  

“Increased shipping in the Arctic both exploits this vulnerability and exacerbates it,” said Dave Walsh, an adviser at the Clean Arctic Alliance NGO, citing carbon emissions, wastewater discharge and noise as some of the impacts of more traffic.

Safety and the environment have not been a priority for Moscow, said Vakhrusheva, and a shortage of high ice-class ships combined with the need to sell oil and gas “to whoever is ready to buy it” raises the risks. 

Protections such as a ban on heavy fuel oil are still negotiated at the International Maritime Organization, where the EU is a key player, she said, adding that such measures will push up the cost of Arctic shipping. 

The strategy says Brussels will push at the IMO to turn measures to limit black carbon — soot emitted by ships that falls on snow and ice and accelerates melting — from voluntary guidelines into binding rules.

It also calls for expanding the definition of Arctic waters to everything north of 60 degrees latitude, replacing the current boundary, which excludes much of the waters around Iceland and Norway from special Arctic shipping rules.

It also promises to keep pressing for compliance with the Polar Code through tools such as an IMO regulation that involves national maritime authorities inspecting foreign-flagged ships in Arctic ports to verify compliance with international safety, environmental and crew-qualification standards. 

The document includes non-binding commitments on biodiversity loss and plans to boost ocean and Arctic research programs. It also promises to launch an “initiative to promote local public and private investment in the Arctic around blue economy sectors.” 

Jakob Weizman contributed reporting.

Après les émeutes, les plateformes dans le viseur du gouvernement.

20 October 2026 at 17:56

L’exécutif a convoqué, ces dernières heures, les plateformes de e-commerce ainsi que Google, Facebook, Instagram et Snapchat pour leur demander de faire preuve de vigilance. D’abord, face aux pilleurs qui chercheraient à revendre des produits volés en ligne. Ensuite, pour demander aux réseaux sociaux de mieux contrôler leurs fonctionnalités, notamment les diffusions en direct. Elles sont accusées par les forces de l’ordre d’avoir servi aux casseurs à s’organiser efficacement. Mais avec quel effet?
Marcelo en discute avec Tiphaine et Klara. Des questions? Des commentaires? Ecrivez-nous sur Whatsapp au +32 49 07 69 41

**Un message de GSK : Prévenir, soigner, innover : GSK appelle à investir dans la santé des Français pour accélérer l’accès aux innovations et atteindre un objectif : zéro perte de chance pour les patients, en renforçant la recherche et les investissements industriels en France.**

Don’t be Liz Truss, Badenoch tells Burnham

20 October 2026 at 14:41

LONDON — Kemi Badenoch warned Labour Prime Minister Andy Burnham on Tuesday not to repeat the economic mistakes of her former boss Liz Truss in his first budget next Wednesday.

The Tory leader said higher national debt, increased gilt yields and extra government spending are creating a gloomy economic picture — and demanded sharp spending cuts from the ruling Labour government next week.

“The lessons of the mini-budget are: if you don’t balance your budget, if you give away £150 billion in subsidizing people’s energy bills, but you don’t cut spending, then the markets will react,” Badenoch said, citing former Tory leader Truss’ ill-fated mini-budget in 2022, which triggered a sharp sell-off in U.K. government bonds and saw the value of the British pound fall.

Truss — Britain’s shortest-serving prime minister, who spent just 49 days in Downing Street — announced Tuesday she is publishing a new book setting out “what really happened” during the mini-budget in 2022, according to a press notice issued by her spokesperson.

“Bank Job: A short book on how the Bank of England broke the bond market and brought down the government” will be published later this month.

The ex-PM has blamed the mini-budget’s consequences on the Treasury, the Bank of England and the Office for Budget Responsibility watchdog.

Badenoch told a press conference in London she does not believe Labour is paying attention to the consequences of that Conservative budget by failing to reduce spending: “They are the ones who want to repeat the mistakes of four years ago, we are not going to be making that mistake again.”

“We need to live within our means,” she said. “We have to stop borrowing so much, but instead, Labour are taking out more loans to pay the interest on our existing loans.”

Questioned on why the public should trust her judgement on economic competence, Badenoch, who served as Truss’ international trade secretary, told POLITICO: “I am not Liz Truss and I think that the public can tell the difference.”

Badenoch said she only saw the mini-budget when it was presented and collective responsibility “doesn’t mean that you agree with all of the decisions that are made.”

“She needs to take responsibility for it, one way or another,” Badenoch said. “That is her issue.”

Trump says he is open to trilateral summit with Putin and Xi

19 October 2026 at 23:29

President Donald Trump said Monday he was open to a trilateral meeting with Russian President Vladimir Putin and Chinese President Xi Jinping, but said such a meeting would not focus on the war in Ukraine.

Trump told reporters at the White House that he would participate in a summit with both leaders if the purpose was to discuss denuclearization. The comments came after reports that Putin had proposed that the three leaders meet on the sidelines of next month’s APEC summit in China to discuss how to end the war in Ukraine.

“I would do it, not so much for Ukraine,” Trump said. “Russia, frankly, has been fine on Ukraine. They have not been doing much. And the same thing with China. We would have it to talk about nuclear weapons, denuclearization. And anytime I can have a meeting on denuclearization.”

Trump made room for the possibility of other topics to be discussed in such a meeting but reiterated that it would be “based on denuclearization.”

“If President Xi wants to have it, I’d have it,” he said. “I’m sure we would talk about other things like trade too but yeah I would do that.”

Kremlin spokesperson Dmitry Peskov confirmed to The Wall Street Journal that discussions were taking place over the possibility of a meeting, but there was no “clear understanding” yet about what the potential summit’s agenda would consist of.

The possibility of a high-level summit between the three leaders comes as Trump has waived sanctions on Russia and announced a diesel deal with Putin, while placing the blame for the four-year war on Ukrainian leader Volodymyr Zelenskyy, who earlier Monday briefed a bipartisan group of lawmakers about the conflict.

“To be honest, I think it is time for somebody else to negotiate on behalf of Ukraine, because what has happened?” Trump said to reporters. “Very little land has moved, but a million people, a tremendous number of people are dead.”

After looting spree, France tells online resellers to crack down on traffic of stolen goods  

19 October 2026 at 18:09

PARIS — The French government has called on leading online marketplaces such as Vinted and eBay to bar listings that include goods stolen during this weekend’s looting spree across France. 

“We expect these platforms to remove the listings in question without delay,” France’s Digital Affairs Minister Anne Le Hénanff wrote Monday in a post on X. “They will also be required to work closely with public authorities so that those reselling potentially stolen goods can be identified and prosecuted.”  

Le Hénanff and fellow cabinet members called a 7 p.m. meeting with representatives of Vinted, Amazon, eBay, Meta, and TikTok, as well as France’s leading independent reselling platform Leboncoin. 

During a government press conference earlier in the day, Minister for Small Businesses Serge Papin said officials were working on “coordination between investigators and online platforms” to identify the individuals behind suspicious listings. A specific protocol is expected to be put in place, according to a government source speaking to POLITICO. 

A spokesperson for Vinted France said the sale of stolen goods, or soliciting the purchase of such goods, is strictly prohibited on the platform. “We have a zero-tolerance policy on this matter,” said the company representative. “Since this past weekend, our teams have taken immediate action to identify and remove listings that may involve stolen goods, and we have stepped up our monitoring of suspicious listings.”

Other platforms weren’t immediately available for comment.

The discussions with the reselling websites are also likely to touch on longer-term questions around platform responsibility and the monitoring of illicit trade within the EU’s digital marketplace. 

The issue of looted goods sold on online marketplaces “is a new dimension and the Commission is happy to look at it in collaboration with French authorities,” European Commission spokesperson Thomas Regnier told POLITICO.

French Prime Minister Sébastien Lecornu has instructed local authorities to enact “partial curfews” Monday evening to prevent further looting and rioting. Papin said a “special support fund” will be set up to provide financial assistance to the estimated 3,000 local businesses affected by the weekend’s unrest. 

Eliza Gkritsi contributed to this report.

Trump’s Russia rethink — and Europe’s response

19 October 2026 at 06:30

Donald Trump’s latest moves on Russia and Ukraine have alarmed Kyiv and European capitals alike. But rather than scrambling to contain the fallout, EU leaders are keeping their cool. Zoya Sheftalovich and Nick Vinocur explore Europe’s strategy for weathering Trump’s midterm storm — and what it means for Ukraine.

Then, France reels from a weekend of violent protests, with more than 1,800 arrests and widespread destruction. As political leaders trade accusations, we look at how the unrest is shaping the battle ahead of the 2027 presidential election from Paris.

Plus, hackers turn supermarket fridges into heaters, exposing some surprisingly basic cybersecurity vulnerabilities.

If you have a question or comment, don’t hesitate! Message us on our WhatsApp here or at +32 491 05 06 29.

The EU heads into a perfect political storm

19 October 2026 at 04:00

The EU heads into a perfect political storm

Last week’s summit gave Brussels a taste of how hard it’s going to be to get a deal on the budget — or anything else.

By SEBASTIAN STARCEVIC
in Brussels

Illustration by Natália Delgado/POLITICO

The EU is already struggling with how to get its largest-ever budget agreed, plug a massive financial hole for Ukraine and navigate geopolitical pressure from the U.S. and China. Now, it also faces being paralyzed by domestic political strife in the countries that collectively make up around 60% of its GDP and population.

“Everybody used to understand that we need to finish … a political agreement by the end of the year,” Cypriot President Nikos Christodoulides told POLITICO in an interview on the sidelines of last week’s European Council, referring to the bloc’s fraught budget negotiations.

But the Spanish election means that will no longer be possible, he said. And next year, “it’s going to be France, Italy” and others going to the polls, Christodoulides added, predicting even more complications for the bloc.

The EU is facing an unprecedented dilemma: Its four biggest economies are all heading into elections or political upheaval, potentially hamstringing the bloc’s ability to get anything done.

Spain will go to the polls next month, with the center right and far right on track to take power. France is changing presidents in April, with polls favoring far-right figurehead Marine Le Pen. The Alternative for Germany is ascendant, putting Friedrich Merz’s chancellorship in doubt. And Italian Prime Minister Giorgia Meloni’s unusually long-serving government is also heading to an election in 2027.

The consequences are already becoming clear.

António Costa, Volodymyr Zelenskyy and Ursula von der Leyen arrive to attend an EU summit in Brussels on Oct. 16, 2026. | Nicolas Tucat/AFP via Getty Images

The bloc’s latest summit offered an early taste of what lies ahead: After two days of talks, leaders failed to make headway on the €2 trillion budget and instead became embroiled in an unexpectedly bitter row on energy policy. The summit’s conclusions notably omitted any mention of finding consensus on the budget before the end of the year, with member countries resisting a push by European Council President Antonio Costa for an end-2026 deadline, although there are summits scheduled for November and December.

If those meetings fail to produce a deal, then the already fractious talks will spill over into 2027, when electoral battles are likely to loom even larger over negotiations — and governments may be increasingly reluctant to make the compromises needed to reach agreement.

Triple assault

The paralysis Brussels fears as Europe’s election cycle gathers pace is already beginning to take hold, with last week’s summit exposing how difficult it is becoming to forge the compromises the bloc needs.

Rather than strike any big deals (a Franco-German accord on cars was the one exception), the leaders used the gathering to dig in on entrenched positions and seek tactical advantages over rival camps.

The pessimism was palpable, according to six diplomats and officials POLITICO spoke to, with several warning the EU faces sharp headwinds in the coming months. All were granted anonymity to speak freely.

“Next year, it will be worse,” said one senior EU diplomat.

“It’s true, because of this calendar for the elections … in the next year it’ll be much more difficult in the member states and inside the [European] Parliament,” said Carla Tavares, a senior MEP with the Socialists and Democrats and co-lead on budget negotiations.

The bloc’s internal malaise could hardly come at a worse time.

From U.S. President Donald Trump’s undermining of the transatlantic alliance to an ever-widening trade imbalance with China, the EU is facing mounting geopolitical and economic pressures on multiple fronts.

Costa, Bart De Wever, Emmanuel Macron and Rob Jetten speak during a European Council summit in Brussels on Oct. 15, 2026. | Nicolas Maeterlinck/AFP via Getty Images

“They seek our division. They want our division,” Belgian Prime Minister Bart De Wever told reporters at a late-night briefing during the summit, not mentioning names but referring to countries to the east and west of Brussels. “And they have, of course, points where they can hurt us.”

Former Lithuanian Foreign Minister Gabrielius Landsbergis, now a visiting fellow at Stanford University, was less circumspect. “Now we are under assault from three sides: from the U.S., Russia and China,” he said.

Washington is questioning the old alliances that have underpinned European security for generations. Moscow is waging a shadow war across Europe, from cyberattacks and sabotage to an attempted drone attack at Leipzig airport that Berlin blamed on the Kremlin. Beijing is tightening its grip on critical supply chains and flooding European markets with cheap exports.

Then there’s the Ukraine problem. The country is facing a budget shortfall of $30 billion to $35 billion next year, according to the IMF, with Russia battering its energy infrastructure ahead of a brutal winter. That’s despite the €90 billion the EU already agreed to stump up last year.

Landsbergis said the coming months are looking “extremely dire” for Kyiv. “Everything falls on European shoulders,” he said.

Ukrainian President Volodymyr Zelenskyy sounded a grim note at last week’s summit, telling reporters that if Ukraine falls, 20 million Ukrainians will flood into the EU. “Russia is killing us,” he said. “They don’t want to stop.”

One solution to Ukraine’s funding woes could be the €200 billion in Russian assets that have been immobilized indefinitely in Brussels-based financial depository Euroclear. But there is no sign of the EU finding common ground on that front either, with Belgium, which vetoed previous efforts to use the assets to help Ukraine, still refusing to budge.

“Nothing has changed,” Swedish Prime Minister Ulf Kristersson said as he exited last week’s summit early.

Other potential solutions, such as issuing more joint debt, will require messy compromises — just as Brussels finds itself with even less room to maneuver.

Who you gonna call?

The EU’s problems go beyond its budget or individual policy files. With the political futures of several of Europe’s most powerful leaders in question, Brussels risks losing the stable alliances and long-serving national heavyweights needed to broker compromises.

“We now have Europe with no obvious leader,” another EU diplomat argued. Commission President Ursula “von der Leyen is powerful. But we do not have a Merkel or Mitterrand.”

French President Emmanuel Macron cannot constitutionally serve a third consecutive term and will have to find new digs in Paris after leaving the Élysée Palace in April. During a closed-door discussion at last week’s summit, Macron admitted he wouldn’t have a political mandate to sign a deal on the budget in his final months in power, four European diplomats said.

Spanish Prime Minister Pedro Sanchez is on track for defeat after eight years in power, according to polls. Spaniards will vote on Nov. 29, meaning Sanchez will be in full election mode during EU leaders’ meetings on Nov. 13 and Nov. 26.

Costa, who has stressed the need to reach an agreement on the EU’s budget by the end of 2026 to make sure it’s ready to go by 2028, waved off fears that the bloc’s next spate of elections could get in the way.

“We are living in 27 democracies,” he said on Friday. “More or less every month we have one election. If it’s about elections, we never could approve a new budget.” 

Regardless of the result, Madrid is not expected to form a government until January, which could derail the budget talks, according to two EU diplomats.

Photo-Illustration by POLITICO/source via Getty Images

It’s anyone’s guess how long German Chancellor Merz has left in office. While the next federal election is not scheduled until 2029, the AfD’s growing strength and his own nosediving popularity complicate how much Merz might be willing to compromise.

Italy, too, is set for elections in October 2027. Another EU diplomat said they did not expect Meloni to wait that long, arguing she could call a vote much earlier.

There could be a sweet spot in January to get the budget over the line, a senior EU official suggested. It may be the last chance to strike a deal before Europe’s political upheaval makes compromise even harder to come by.

So far, the EU’s leaders have simply been “too slow,” said Siegfried Mureșan, the European People’s Party’s co-lead on the budget. “Time is running out.”

Nicholas Vinocur contributed reporting.

Macron vows looters will ‘pay’ in France after protests turn violent

18 October 2026 at 21:14

PARIS — President Emmanuel Macron promised that rioters who “destroyed” things will face consequences as he addressed the nation on Sunday after a weekend of massive unrest across France.

Hundreds of thousands of protesters took to the streets nationwide on Saturday, with students joining trade unions and members of the public to protest the cost of living. While thousands protested peacefully, footage of mayhem including public buildings being set on fire, stores being looted and clashes with riot police drew widespread condemnation in France and abroad.

“Those who destroyed must pay; those who looted must reimburse,” Macron said.

The French government has been accused of mismanaging and underestimating the protests, with calls for Interior Minister Laurent Nuñez to resign emerging both on the left and the far right.

According to the latest figures from the French interior ministry, some 2,000 people were arrested during the turmoil. Police, firefighters and demonstrators suffered injuries as the situation unraveled.

Serge Papin, France’s minister for small business, will meet with company reps at the Ministry of Economy tomorrow to assess the damage and suggest assistance for businesses that were affected.

Macron said he was awaiting “clear answers” on why the protests turned violent. The French president accused “troublemakers from far-left splinter groups, joined by numerous delinquents” of engaging in “unbridled violence.”

With six months to go before next year’s presidential election in France, the events of Saturday quickly took on a political dimension.

Prime Minister Sébastien Lecornu also accused the “ultra-left” of fomenting the violence, alleging that the France Unbowed movement and its presidential candidate Jean-Luc Mélenchon had played an “important role” within a “far-left network” driving the unrest.

Mélenchon, along with left-wing representatives from several other parties, joined Saturday’s protests and encouraged his supporters to attend, although condemning looting and violence. He said accusations that he was responsible for the mayhem were aimed at weakening his presidential bid, and accused Macron of “letting the situation deteriorate” without offering solutions to appease the anger.

Mélenchon is currently in a close race with center-left candidate Raphaël Glucksmann and center-right candidate Edouard Philippe to clinch second place behind far-right frontrunner Marine Le Pen in next year’s election. The top two candidates in the election move to a runoff if no candidate wins a majority of votes in the first round.

“At stake, too, are France’s image, its credibility, and its influence around the world,” Philippe said ahead of Macron’s statement. “These images of violence have consequences that extend far beyond our borders.”

Le Pen and her far-right National Rally have brandished the violent footage to pitch herself as the candidate of an “appeased France.” The National Rally accused Macron and his government of being the “party of chaos,” and Mélenchon’s France Unbowed of “legitimizing violence.”

The protesters had “legitimate social demands,” Le Pen said. “The French people are fed up with being caught between the government’s austerity measures and heavy-handed taxation, and the insurrection activists.”

With the U.S. midterms around the corner on Nov. 3, President Donald Trump seized on the violence to blame migration. “France is burning! The immigration of people from an entirely different world, people with hatred in their hearts, has shattered that once great country,” Trump wrote on his Truth Social platform Sunday afternoon.

21 things we learned at the EU leaders’ summit

16 October 2026 at 18:30

This was supposed to be an EU summit about the EU’s long-term budget. But things are never easy for EU leaders, and world events have a nasty habit of making their way onto the itinerary.

That meant this European Council had a lot more on the agenda than the last handful of summits, at least: Energy, migration, enlargement, Ukraine, and more besides were covered — and very little, if anything, was decided.

Have FOMO because you weren’t there? Don’t worry, we’ve got you covered. Here’s POLITICO’s rapid roundup of what we learned at the European Council.

1) Energy stole the show right out of the gate

The summit’s first major clash came Thursday morning, with EU leaders split over whether to delay ETS2, the bloc’s second phase of carbon pricing, to address high energy prices, triggering a three-hour-long standoff.

Italy and Greece joined the Visegrád Four — Czechia, Hungary, Poland and Slovakia — in calling for a delay, a push rejected by the majority of countries.

The debate dragged on, delaying lunch (spare a thought for our hungry leaders!) and leading to the cancellation of a press conference on Thursday night.

2) Budget negotiations are a marathon…

Negotiations on the bloc’s next long-term budget were expected to be one of the summit’s most contentious topics. But they were a nothingburger, with most leaders repeating positions they have held for months. The summit brought them no closer to a breakthrough.

Many countries, of course, want a smaller budget, with Swedish Prime Minister Ulf Kristersson telling reporters that his country is “not an ATM for the EU.”

Belgian Prime Minister Bart De Wever, meanwhile, said he had no choice but to be frugal at the European level, arguing he is used to tightening his belt at home because his wife is Dutch. Think of Bart next time your Dutch friends ask you to pay them back for that coffee.

3) … and a sprint

European Council President António Costa is still aiming to get a budget deal before the end of the year, according to two EU officials. He announced that leaders will hold a special summit at the end of November to try and make progress (and there’s a December summit too). But that timing leaves them up against the clock to reach a deal by year’s end.

See you all back here on Nov. 26!

4) EU leaders may need to bring extra luggage next time

If leaders do hope to agree on the EU’s long-term budget this year, they should prepare for long negotiations in November and December.

German Chancellor Friedrich Merz suggested the pre-Christmas summit could last longer than the scheduled two days. “For the December summit, we should pack a few more shirts than usual,” he said. Gulp!

5) Your next holiday to Cyprus might be a little easier

Cypriot President Nikos Christodoulides told reporters he hopes EU leaders will discuss his country’s bid to join the Schengen travel zone at the December summit.

“All technical preparations have already been completed, and we hope that the matter will be discussed by the relevant council in December so that the final political decisions can be made,” he said.

6) Rose-colored glasses have come off when it comes to Costa

European Council President António Costa drew the ire of some leaders over his handling of negotiations to curb high energy prices, which had become a “mess,” three EU diplomats told POLITICO, with another two diplomats saying that leaders were fuming at Costa for allowing talks to go off the rails.

7) Drink (a little) less beer to help Ukraine

Ahead of the summit, Latvian Prime Minister Andris Kulbergs told reporters that supporting Ukraine costs each European the equivalent of one beer a year.

“That one beer is just a cost [for EU citizens]. There, it’s a cost of life. We drink less, their lives are saved,” he said. “Simple as that.”

He didn’t say whether he meant a beer bought in Stockholm or Prague. As anyone in Belgium knows, not all beers are created equal — or cost the same.

8) The EU Parliament wants you to know it matters too

The European Parliament’s two lead negotiators on the EU budget made the rounds of the press room to make sure journalists heard their views. Siegfried Mureșan (of the European People’s Party) and Carla Tavares (Socialists and Democrats) both stressed that the Parliament’s position is important.

Meanwhile, European Parliament President Roberta Metsola joined leaders for the first part of the summit. Metsola said she had made it clear to them that “the Parliament is not a rubber-stamp and never will be.”

9) Talking China (without mentioning China)

Leaders discussed trade imbalances (read: China) over lunch on Thursday and welcomed the deal the European Commission struck with China last week to curb imports of Chinese hybrid vehicles. Czech PM Andrej Babiš even went so far as to call the deal “fantastic.”

POLITICO scooped that the European Commission is expected to work on trade measures tackling imports of chemicals and industrial machinery in an effort to protect European industry from unfair Chinese competition.

10) New bromance brewing

Hungarian PM Peter Magyar posted a late-night selfie with Dutch PM Rob Jetten on social media after day one of the summit. The two were all smiles and “tired, but not sad”, as Magyar put it in his tweet.

In reaction to the tweet, Jetten told reporters, “We are more or less of the same generation and a tad more direct and pragmatic than some colleagues in the European Council, so there’s a click.”

We started at 7:30 this morning in Brussels. The second shift begins after 10 PM, with Dutch Prime Minister Rob Jetten @MinPres.
Tired, but not sad. pic.twitter.com/dmtSMbqG4m

— Magyar Péter (Ne féljetek) (@magyarpeterMP) October 15, 2026

11) Back to the castle

António Costa announced that another competitiveness summit at Alden Biesen castle in the Belgian countryside will take place in February 2027, three EU diplomats told POLITICO.

Leaders already visited the castle earlier this year, and they clearly loved the Belgian countryside so much they want to return (or Costa is forcing them to go).

12) Still reeling from Ceuta

Ahead of Friday’s talks, 16 EU leaders met to discuss migration over breakfast (before discussing migration over lunch with everyone else).

According to one EU diplomat, leaders broadly agreed that the EU should be able to suspend asylum applications when faced with a sudden influx of migrants that may have been engineered on purpose. But would that mean the EU will implement pushbacks (which are banned under EU law)?

13) Denmark, Italy and Poland want to be tougher on migration

The three leaders joined forces to argue that migration is a concern for many EU citizens and is contributing to rising crime rates. That caused a delay to an already shockingly long summit.

14) There were some agreements

Italy’s Giorgia Meloni and Spain’s Pedro Sánchez found some time on the sidelines of the summit to chat about Rome’s restrictions on Spanish nationals sparked by the Ceuta crisis.

Plus, France and Germany said they had struck a deal to favor European-made cars under the Industrial Accelerator Act in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies.

15) EU leaders get the good stuff to eat

Thursday’s lunch menu featured a “full-flavored vegetable jus.” Not a little flavor, not a medium amount of flavor, but the full flavor. Then on Friday there was a “rich jus”. There was also a Champagne sauce. Only the best for our leaders!

16) The same can’t be said for reporters

Some POLITICO journalists lamented the lack of vegetarian options at the Council canteen. Pray for us.

17) No harsh words from EU to Zelenskyy

At a press conference on Friday afternoon, Volodymyr Zelenskyy was asked whether EU leaders had expressed annoyance at his recent tone toward U.S. President Donald Trump. The question followed reports that some capitals were frustrated with him and worried he was further riling the White House.

But it was all love from Zelenskyy, who said there had been no harsh words during his time in the summit room. “I heard from my European colleagues support and only support, and I’m grateful for this,” he said.

18) No hugs for Fico

As Zelenskyy entered the European Council building, he was seen hugging and kissing fellow leaders — with one exception: Slovakia’s Prime Minister Robert Fico received no hug. That may well have been because Slovakia is preparing to revive a dormant cooperation forum with Moscow.

19) 20M Ukrainians could flee to Europe if Russia wins war

Zelenskyy issued a stark warning to Europe: if Russia wins the war, as many as 20 million Ukrainians could be forced to flee to Europe. Over 4 million Ukrainians already live in EU countries under temporary protection status, according to Eurostat. 

20) EU leaders have forgotten about Britain … or have they?

There was plenty of talk across the Channel this week about the U.K. potentially rejoining the bloc, but the subject did not come up at the summit, even with an EU-U.K. summit due next month. EU leaders have more pressing issues on their minds.

Still, some had things to say about the U.K.’s relationship with the EU. Foreign policy chief Kaja Kallas said “all our friends are welcome to join,” naming Britain alongside Canada, Norway and Iceland as partners seeking closer ties.

Latvian Prime Minister Andris Kulbergs suggested the U.K. “should come back to the family,” although he also said that Russia “had its hands on Brexit.”

21) At POLITICO, we save the best for last

Covering European Councils often involves a lot of waiting around, but during this summit conditions were a little tougher because of a phantom farter among reporters waiting for Zelenskyy’s press conference. POLITICO went viral in Brussels’ diplomatic and journalistic circles for reporting the hard facts on our live blog.

While this summit’s agenda was packed, in the end not many concrete decisions were taken. Some might say the summit was a load of hot air.

In Europe’s tech capital, Irish labor unions are booming amid AI-driven layoffs

16 October 2026 at 17:44

DUBLIN — The Irish capital, which doubles as Europe’s de facto tech capital, hosted two very different AI summits in the past week.

Most eyes were on the International AI Summit, the signature tech event of Ireland’s six-month presidency of the Council of the EU, where top brass from the world’s biggest tech firms discussed ways to harness artificial intelligence and minimize safety risks.

But the weekend before, a very different conversation was taking place at the Workers’ AI Counter Summit, as Ireland’s tech workers demanded a say in how the burgeoning technology reshapes the workplace and society.

Ireland’s lucrative tech sector has been rattled by waves of AI-driven layoffs — and the country’s fledgling tech union has seen an exponential spike in sign-ups from workers who are worried about their future.  

There’s an “awakening” happening right now among workers in Ireland’s tech sector, and a growing “awareness that they’re not bulletproof,” said Sinéad Gibney, a social democrat lawmaker who previously worked for Google.  

“I do think what we will see is that parts of roles will be automated, which means that people will be competing more heavily for the same roles,” she said. “They won’t have the same labor power and therefore we’re going to see a drop in quality of work, we’re going to see more zero-hour contracts, in more places than we already see it.”

The labor movement brewing in Ireland, where many of the world’s tech giants have their EU bases, is part of a wider trend among tech workers globally, who have seen their work disrupted by rapidly evolving AI.

Rise in layoffs

Ireland’s dedicated union for tech workers, the Digital and Techworker Alliance (DATA), has seen a five-fold increase in membership since it was first founded in 2023.  

In its first year and a half of existence, membership hovered around 270 people. In the past year-and-a-half, it’s jumped to more than 1,350 members, DATA organizer John Bohan told POLITICO.  He added that this number tends to spike around layoffs and other actions.

“The tech industry was founded on the idea that it would never have a union, because they’re making people rich, and treat them really well,” Bohan said.  “But post-Covid, workforce adjustments happened again and again, with layoffs and declining conditions in the sector. We started to see more people wanting to get organized around redundancies.”  

The spike in sign-ups coincides with a wave of layoffs in Ireland’s tech bubble (and the tech sector globally), as companies corrected pandemic-era overhiring, and diverted investment to AI.  

Ireland hosts the EU headquarters of most of the world’s largest tech companies, and more than 170,000 people are employed in the tech sector, according to the country’s statistics institute.

Social media giant Meta has roughly halved its workforce in Ireland since the pandemic, axing well over 1,000 roles to offset AI investment and boost efficiency. Separately, Meta subcontractor Covalen also announced massive layoffs earlier this year, cutting more than 700 people.  

Video-sharing platform TikTok announced this year it would shed around 300 Irish jobs, mostly from its trust and safety team, shifting the work to other countries, outsourced vendors or automated AI solutions.  

A report by the IMF earlier this year warned that Ireland’s labor market is “relatively more exposed” to AI than many advanced economies, partly due to its concentration of tech workers.  

The AI race is also creating new jobs on the Irish market – as AI firms like Anthropic and OpenAI are setting up Irish bases and trying to lure Big Tech workers with even bigger salaries.  

Amid the uncertainty and volatility of the AI boom, tech workers are turning to unions for the first time as a safety net. One tech worker who used to work in trust and safety at a big tech firm told POLITICO that there used to be a feeling that as a “pampered” tech worker you “can’t ask for your rights, because you already have it so much better.” 

But as layoffs continue and teams get leaner, workers in fields like trust and safety “now have to deal with these issues with fewer and fewer resources”, and face a “constant threat of being chopped,” the worker said.  

That’s causing an “undoing of a certain perspective that we have of ourselves as tech sector workers,” they said, “because of undeniable experiences that now put us in situations where we clearly see our rights being violated, even if we may have it so much or somewhat better than most people.” 

A different tech worker who currently works for Covalen told POLITICO that there is a sense that “if they believe they can replace you with AI, they will do that.”  

“All these Big Tech firms only care about profit, and what I have realized is the Irish government protects that Big Tech capital [rather than workers],” the Covalen worker said. “But the question is, what’s the government going to do when the tech bros change their mind and move elsewhere?”  

Workers at the center

The speaker list at this week’s AI summit was a flex of the country’s strength as a tech hub, as top names from the world’s biggest companies like Google and Microsoft took to the stage.

Fionnuala Ní Bhrógáin, head of organizing and campaigning at Ireland’s Communications Workers’ Union (DATA’s parent union), was the only union voice on the line-up.

“The fact that 36 executives and industry bosses featured on the program, compared with just one trade union speaker — invited at the last minute after attention was drawn to the absence of workers’ voices — says a lot about the value the Irish government places on AI’s impact on workers,” she told POLITICO.

“The reality is that a meaningful conversation about AI’s future can only happen through genuine engagement with workers and collective bargaining,” Ní Bhrógáin added. “Without that voice, we risk deepening mistrust and resistance rather than creating the conditions for workers to shape these changes collectively.”

DATA organized its counter-AI summit the previous weekend, to put “workers at the center of the debate about power, AI, technology and the future of work.” 

The event cut through the “hype and futurism of politicians and industry figures to focus on the real present harms faced by ordinary workers and communities,” DATA’s Bohan said.  

The union is pushing for stronger legal protections for tech workers caught up in AI-driven layoffs in Ireland, including making it mandatory for employers to recognize unions during collective bargaining. It is also calling for a ban on cooling-off clauses that prevent laid-off workers from moving between Big Tech subcontractors.  

A spokesperson for Ireland’s department for enterprise told POLITICO in a written statement that the government is “committed to strengthening collective bargaining and industrial relations” and has published an action plan to do so between now and 2030.  

They said that employers already have to comply with obligations under Irish employment law, including consultation and notification procedures for collective redundancies, and workers who feel those rules have been broken can complain to the Workplace Relations Commission. 

Firefighting to future-proofing 

Naoise Ó Cearúil, a center-right Fianna Fáil lawmaker who chairs the AI committee, pointed out that while there have been high-profile job cuts in Ireland’s tech sector, “the actual net is that there has been an increase [in jobs], particularly over the past year and even five years.” 

According to Ireland’s central statistics office, total employment in tech and related sectors surpassed 177,000 in the second quarter of this year, up from around 144,000 at the same time in 2021.  

Ó Cearúil pointed out that many job losses were in trust and safety jobs like content moderation that are “very difficult mentally,” and now tech firms are able to “utilize AI and software to be able to do a lot of detection, rather than using humans.”  

He has called for a national program to be established, to support workers whose jobs are at risk due to AI and automation.  

A spokesperson for Ireland’s department of enterprise acknowledged that the country’s tech sector has “experienced significant adjustment in recent years,” but said the changes were generally part of wider global restructuring “rather than reflecting any Ireland-specific weakness.” 

They said the Irish government is currently focused on “ensuring workers and businesses are equipped to adapt to technological change through investment in education, training, lifelong learning and digital skills.”  

France, Germany strike bargain on Made in Europe, car emissions

16 October 2026 at 13:04

BRUSSELS — France and Germany said Friday they had struck a deal to favor European-made cars under a landmark EU industry bill in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies.

Under the agreement, Germany would accept stricter “Made in Europe” — or local content — requirements for the automotive industry in the proposed Industrial Accelerator Act, a longstanding French demand, while France would back Berlin’s push to relax the EU’s plan to phase out new combustion-engine cars.

The EU’s current target is for companies to reduce emissions from new vehicles by 100% from 2021 levels by 2035, with the possibility to “earn” 10% of emissions leeway through initiatives like offsets and investments.

France and Germany now want to soften the 2035 target to 90% but without having  to offer investments in alternative fuels to compensate the remaining 10%, as proposed by the European Commission.

“This balanced approach will enable the European Union to pursue its climate objectives while strengthening the technological sovereignty, industrial base and international competitiveness of its automotive industry,” the two countries said in a joint statement.

The agreement, first reported by POLITICO in July, was due to have been announced Thursday, during a meeting of EU leaders in Brussels. But it was held up at the last minute by disagreements within Germany’s governing coalition.

“We hope that this Franco-German dynamic can swiftly lead to an agreement with our partners, for our jobs and our industry,” French President Emmanuel Macron said in a post on social media.

An Elysée official on Friday made clear that, under the Franco-German deal, the scope of Made in Europe for automotive can be extended to the U.K. and Switzerland under certain conditions. — addressing a key concern of Prime Minister Andy Burnham’s government ahead of a Nov. 20 U.K.-EU summit in Brussels.

The agreement was reached after the German Social Democratic Party, the junior partner in Chancellor Friedrich Merz’s coalition government, dropped its opposition.

“This is a modern realignment of German industrial policy that places significantly greater emphasis on preserving jobs and production sites,” said German Environment Minister Carsten Schneider, who is from the SPD.

“The clear expectation for German companies is that they will use these new opportunities to make investments and guarantee jobs here in Germany,” he added.

CORRECTION: This article was updated on Oct. 16 after an earlier version misrepresented the figures in the Franco-German proposal on the softening of 2035 targets.

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