Europe

The trade war initiated by Donald Trump has created divisions within Europe's far-right parties, particularly the AfD in Germany. While Alice Weidel criticized Trump's tariffs as harmful to free trade, her co-chair Tino Chrupalla defended them as necessary for protecting the economy. This divergence reflects a broader tension among populist movements in Europe regarding how to reconcile protectionist policies with their national interests, as seen in responses from leaders like Italy's Giorgia Meloni and Hungary's Viktor Orbán, with varying degrees of support and criticism for Trump's approach. Full Article

European airline emissions are projected to reach 195.2 million tonnes in 2023, surpassing pre-pandemic levels by 4%, indicating challenges in decarbonisation as the industry seeks leniency from EU green regulations. Airlines, including Ryanair and Lufthansa, argue that the required increase in sustainable aviation fuel (SAF) production is unfeasible and have called for easing carbon pricing schemes. The EU acknowledges the need for action to meet climate commitments, emphasizing that the aviation sector must contribute more to reducing emissions. Full Article

Russian businessman Albert Avdolyan, sanctioned by the EU for Russia's war in Ukraine, circumvents travel bans with a Maltese passport obtained through a controversial golden visa scheme. Malta remains the last EU country offering citizenship for sale, facing legal challenges from the European Commission, which argues the scheme undermines EU citizenship integrity. Despite scrutiny, individuals including politically exposed figures have acquired Maltese citizenship, raising concerns over corruption, as such schemes are criticized for their potential to facilitate illicit activities. Full Article

Private credit firms are reconsidering sustainable investment criteria to provide funding for Europe's defence sector, which has gained urgency following US support concerns. While smaller funds can lend, many are restricted by environmental, social, and governance rules, particularly against financing weapons manufacturers; however, French officials are encouraging changes to these regulations. Despite these challenges, credit funds that have invested in defence have seen significant returns, and companies previously reliant on single lenders are now seeking multiple financing sources as interest in the sector rises. Full Article

The return of Donald Trump to the White House has led to significant market disruption, trade wars, and economic uncertainty, prompting readers to seek expert insights on these issues. Tariffs have surged, with average US tariffs estimated at 23%, heavily influenced by steep charges on Chinese goods, and the potential for boycotts against American products looms, particularly for those associated with Trump. Additionally, the US budget deficit remains a concern, with proposed tariff revenues failing to compensate for tax cuts, highlighting the complexity of addressing the nation’s fiscal challenges. Full Article

A British initiative to gain access to the EU single market through a mutual recognition agreement on product standards has been dismissed by Brussels ahead of a pivotal summit in London. Prime Minister Sir Keir Starmer's requests, including a deal on illegal migration and improved access for British artists, faced skepticism from EU diplomats, particularly regarding the rejection of mutual recognition without accepting EU rules. While discussions continue, both parties aim to finalize a broader deal by year-end, including potential agreements on security and youth mobility. Full Article

The EU is willing to make significant concessions in negotiations that could allow British and European 18- to 30-year-olds to travel and work freely in the UK, signaling a potential reset in relations with Brussels. This proposed post-Brexit scheme is a crucial demand from Europe in discussions aimed at reaching an agreement with the UK, focusing on defense, energy, and migration. The initiative reflects ongoing efforts to enhance cooperation and mobility between the UK and EU nations following Brexit. Full Article

Rachel Reeves emphasizes the importance of Britain's trading relationship with Europe over that with the US, advocating for a reset in EU relations, including a youth travel scheme and alignment with EU rules to reduce trade barriers. As she prepares for discussions in Washington, Downing Street clarifies that both the EU and US are vital trading partners, with the EU accounting for 41.2% of British exports in 2023. The upcoming May 19 summit aims to establish a new EU-UK defense pact and negotiate a package of measures including youth mobility, food trade, and fishing agreements. Full Article

President Trump's upcoming visit to the Vatican for Pope Francis's funeral occurs during a politically tense period, marked by his "America first" agenda that has strained US alliances and trade relationships. This trip, his first international engagement of his second term, raises concerns about potential confrontations with global leaders amidst the solemnity of the papal rites. With ongoing conflicts in Ukraine and Gaza, along with contentious immigration policies, the funeral could serve as a significant diplomatic challenge. Full Article

The US Department of Justice (DoJ) is considering the elimination of corporate monitorships, which oversee compliance after criminal cases, as part of a shift in corporate enforcement policies. This review follows high-profile cases like Raytheon's $950 million settlement and Glencore's early termination of its monitorship, reflecting a broader trend of loosening oversight under the Trump administration. Advocates warn that removing monitors could lead to a lack of accountability for companies with histories of serious misconduct, undermining compliance efforts. Full Article