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Politico EU

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European political journalism covering EU policy, elections, and politics.

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Discussions from Politico EU

Economy

What are the benefits and drawbacks of a president having the power to set tariffs without review?

US President Donald Trump’s tariffs returned to court on Friday, as a three-judge Court of International Trade panel in New York sharply questioned both sides while weighing the legality of a new set of tariffs he imposed in February, shortly after a Supreme Court ruling declared most of his sweeping levies unlawful. While the judges offered few clues on how they might rule on the Section 122 tariffs, the court has previously rejected business challenges seeking to invalidate Section 301 tariffs

Hong Kong
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Geopolitics

What should the U.S. government's role be in responding to threats made by political leaders?

With a few exceptions, congressional Republicans were silent on Tuesday as the clock ticked down on President Trump's threat to wipe out Iranian civilization unless the Strait of Hormuz was reopened. Why it matters: Republicans in Congress have shown unwavering loyalty to Trump, and the president's threat against Iran appears to be no exception to the long-standing pattern of limited GOP resistance. Driving the news: Rep. Nathaniel Moran (R-Texas) said in a post on X that "I do not support the destruction of a "whole civilization." That is not who we are, and it is not consistent with the principles that have long guided America." Senator Lisa Murkowski (R-Alaska) posted Trump's threat "cannot be excused away as an attempt to gain leverage in negotiations with Iran.""This type of rhetoric is an affront to the ideals our nation has sought to uphold and promote around the world for nearly 250 years. It undermines our long-standing role as a global beacon of freedom and directly endangers Americans both abroad and at home," Murkowski added."The United States does not destroy civilizations. Nor do we threaten to do so as some sort of negotiating tactic," Republican-turned Independent Rep. Kevin Kiley (Calif.) said. Kiley added that Congress has a responsibility to conduct oversight of the war. Zoom in: GOP leaders in the House and Senate have not publicly weighed in on Trump's remarks. Congressional Democrats have been sounding the alarm about the threat, with some lawmakers floating impeachment or even removal via the 25th Amendment. The bottom line: Congress has been out of session since March 27, and GOP lawmakers have been able to avoid uncomfortable questions in the Capitol hallways. Some Republicans have welcomed the comments: The official Senate Republicans' X account warned Iranians to take Trump "at his word."

Global
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Geopolitics

What are the benefits and challenges of increasing France's defense spending?

By John Irish PARIS, April 8 (Reuters) - France plans to add a further 36 billion euros ($39 billion) to its defence spending between now and 2030 under an updated military planning law that expands its nuclear arsenal and boosts missile and drone stocks. The increase, proposed despite one of the euro zone's biggest budget deficits, reflects mounting security pressures from wars in Ukraine and the Middle East and growing uncertainty over U.S. commitments to NATO under President Donald Trump

France
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Geopolitics

How should the UK strengthen its relationship with the EU in response to global challenges?

LONDON, April 1 (Reuters) - Prime Minister Keir Starmer said on Wednesday that the global instability caused by the war in Iran means Britain should align more closely with the European Union on security and economy, following criticism from U.S. President Donald Trump. At a press conference aimed at easing public concern over rising energy costs, Starmer said the impact of the war would "define us for a generation" and could be similar to the rise in energy prices in the 1970s

United Kingdom
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Geopolitics

What are the possible benefits and risks of lifting oil sanctions on Iran for the U.S. and the world?

The White House is considering lifting sanctions on Iranian oil that's at sea to keep oil prices down, Treasury Secretary Scott Bessent said Thursday. Why it matters: The administration is pulling out all the stops — even easing up an economic threat to its enemy in war — to keep down oil prices. The latest: The price of Brent crude, the global benchmark, spiked 10% in just the past 24 hours, driving increasing worries among investors. Brent is now around $111 per barrel — nearly 60% higher than pre-war levels. Zoom in: "In the coming days, we may unsanction the Iranian oil that's on the water," Bessent told Fox Business Thursday morning. He said that would make up about 140 million barrels — about 10 days to two weeks of supply."In essence, we'd be using the Iranian barrels against the Iranians to keep the price down for the next 10 or 14 days, as we continue this campaign. So, we have lots of levers." The big picture: The White House has been able for the past few weeks to contain prices with various assurances and policies — promising tanker escorts through the critical Strait of Hormuz, waiving the Jones Act, and temporarily lifting sanctions on Russian oil. Zoom out Lifting sanctions on Iranian oil would be a remarkable next step — as it was something Iranians were asking for in negotiations last year. The White House referred Axios' questions about Iranian sanctions to the Treasury Department, which didn't immediately respond to a request for comment or more details. The bottom line: The administration appears to be conceding something in war that it was unwilling to give in peace, says Nicholas Mulder, a sanctions expert and professor at Cornell University. "The U.S. has to dial back sanctions to offset the second order effect of war," he says. "It speaks to the instability of the situation."

United States
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