Europe

Don’t bet on Trump putting a stop to the hounding of British banks

President Donald Trump is demolishing his predecessor’s legacy as fast as he can sign executive orders, but one thing for which the Obama administration will be remembered is its zest for imposing fines on UK and European banks. In a flurry of Department of Justice activity ahead of the transfer of power, Deutsche Bank agreed to pay $7.2 billion and Credit Suisse $5.3 billion for misleading investors in mortgage-backed securities before 2008, while Deutsche also copped a $630 million penalty (from UK as well as US regulators) for alleged money-laundering on behalf of Russian clients. Meanwhile, Royal Bank of Scotland set aside another $3.8 billion, making a total provision of

My pick for the pious political hypocrite of the week award

I would like to propose Labour MP Tulip Siddiq as the winner of the pious political hypocrite of the week badge for her response to President Trump’s temporary immigration halt. From today’s Guardian we learn that Ms Siddiq is one of a number of Labour MPs who have warned that the UK Prime Minister’s allegedly ‘feeble’ response to President Trump’s recent immigration order risks making UK Muslim communities feel ‘disenfranchised and disillusioned.’ Apparently the consequences of this failure could be ‘played out on our streets’ and ‘turning a blind eye to the reality of this ban we run the risk of losing the trust of an entire generation of young British Muslims.’ Now

A US / UK free trade deal is the big prize for Theresa May

Theresa May’s team will be basking this morning in the write-ups of her successful visit to Washington. As I say in The Sun this morning, the big prize for her is a US / UK free trade deal. Government ministers think that, given the political will on both sides, the deal could be negotiated in just eight months. There is also confidence in Whitehall that the US will be prepared to grant an exemption for public services which would ‘protect’ the NHS. This should do much to reduce the intensity of the opposition to the deal. Trump’s protectionist rhetoric is often cited as a reason why a US / UK

Why the Germans are so worried about the Trump administration

One of the advantages for Theresa May in being the first foreign leader to visit the Trump White House is that other European government are eager for information about what he actually plans to do. Both Handelsblatt and Spiegel have good pieces detailing the German government’s concerns about its lack of contact with, and information about, the new administration. Spiegel reports that an offer from Angela Merkel’s team for her to travel to the US at short notice to meet the new president has not yet received a reply. While the German Ambassador to the US’s last meeting with Jared Ksuhner, Trump’s son in law and—by general agreement—the most powerful

What does President Trump do to Brexit?

With Theresa May expected to head to Washington next week to see President Trump, I have a look at what the Trump presidency might mean for Brexit in my Sun column this morning. Despite his protectionist rhetoric, on full show again yesterday, Donald Trump is keen on a US / UK trade agreement. He has told people that he would like to get personally involved in negotiating the deal. I understand that his transition team has done more work on it than they have for any other agreement. Squaring the circle between Trump’s protectionist rhetoric and his enthusiasm for a US / UK deal isn’t as hard as it first looks.

Trump Team preparing US / UK trade deal

Boris Johnson returned from the US this week boasting that the UK was now ‘first in line’ for a trade deal with the US. He said that the Trump team and the new Congress ‘want to do it fast’. But as I write in The Sun this morning, the situation is even more advanced than this. I understand that the Trump team is already working on the outlines of a US / UK trade deal. Interestingly, they want the deal to be pencilled in before the UK leaves the EU, though the UK could not formally sign it until it has left the bloc. The US’s keenness for a trade

Leak suggests EU will seek ‘special’ deal to access the City post-Brexit

The Guardian has a very significant story on its front page tomorrow. It has obtained notes of a meeting that Michel Barnier, the EU’s chief negotiator, had with senior MEPs this week. These notes show that Barnier told them that he wanted a ‘special’ deal that would guarantee access for the EU firms and countries to the City of London’s financial markets. Interestingly, Barnier also said—according to The Guardian’s account—that ‘There will need to be work outside of the negotiation box … in order to avoid financial instability.” This suggests that Barnier shares Mark Carney’s view that there are financial stability risks for Europe if the EU cuts itself off

Inflation creeps back like the forgotten whiff of cigarette smoke

From supermarkets to superyacht builders, sales figures are remarkably buoyant: consumer debt may be rising too, but no one can say the New Year economic mood is markedly downbeat. This column feels obliged to find something on the horizon to worry about, however, and my telescope is focused on inflation. If deflation was a real threat to developed economies in recent years, the pendulum is now swinging the other way. UK inflation is expected to hit 3 per cent by late 2017, what with higher import costs generally thanks to the weak pound, fuel-price rises as a result of Opec’s effort to restrict oil production, the pass-through to consumers of

The other lesson that Theresa May must learn from Cameron’s failed EU negotiation

Theresa May has clearly learnt one lesson from David Cameron’s failed negotiation with the EU. As I write in The Sun this morning. she has realised that if she just asks for what cautious officials think she can get, then she won’t get enough to satisfy the voters—hence Sir Ivan Roger’s resignation as the UK representative to the EU. But an even bigger problem for Cameron’s renegotiation was that the other side never believed he would walk away from the deal. Cameron compounded this problem when he made clear that he wanted the whole thing done quickly, further reducing his negotiating leverage. So, when May makes her big Brexit speech

Joining the dots

A new website, radio.garden, lets us browse radio stations across the globe. Nothing new about that. That’s been a key feature of wireless since the days of valves and crystals. Turning a knob and stopping off at Hilversum, Motala, Ankara or Reykjavik, if and when short-wave reception was possible, is part of radio’s magic, listening in to life elsewhere without having to leave the house. Now, though, with radio.garden (developed in Amsterdam by Jonathan Puckey for the Netherlands Institute for Sound and Vision, and part-funded by the EU), it’s possible to turn the globe that appears on your computer screen as soon as you log on to the site and

How the Catholic Church created democracy

Going to spend Christmas with relatives you don’t really like? Well, you can thank God you only have to see them once a year rather than living as an extended family. Or more precisely you can thank the Catholic Church, without whom you’d all still be in the same house as your uncles and aunties and marrying your cousin. It is reasonably well known that the medieval Church’s ban on cousin marriage helped to make western Europe less clannish; but according to an interesting new paper from Nottingham University, by doing this the Catholic Church actually laid the foundations of democracy. The author, Jonathan F Schulz, argues: ‘The role of

Islamofascism and appeasement are the biggest dangers facing the West

The appeasers, apologists and ‘useful idiots’ have been out in force over the festive season, busily lighting candles, declaring ‘Ich Bin Ein Berliner’ and proclaiming that the murderous attack on the Christmas market had nothing to do either with Islam or mass immigration. Thinking of them prompted me to pluck from my shelf one of my favourite books, a slim tome entitled ‘Ourselves and Germany’, written in the winter of 1937 by the Marquess of Londonderry. Otherwise known as Charles Stewart Henry Vane-Tempest-Stewart, or ‘Charley’ to his pals, the Marquess could neither write well nor read men well, but his book is nonetheless riveting. It’s a timeless reminder of where an educated

Labour has even bigger problems than Jeremy Corbyn these days

Want proof of how bad things are for Labour? Jeremy Corbyn and his disastrous leadership is not even its biggest problem anymore. I write in The Sun that Labour’s biggest problem, and it is potentially an existential one, is that its reaction to the Brexit vote is threatening to make it a political irrelevance More than 60 percent of Labour seats voted to leave the EU. In these constituencies, being the party that is trying to block Brexit would be electoral suicide. That’s why the Labour leadership felt compelled to accept the government’s amendment this week saying Theresa May should start the formal, two-year process for leaving the EU by

Austria and Italian voters could plunge the EU into crisis

Voters in Austria and Italy head to the polls tomorrow and could plunge the EU into a political and economic crisis, as I say in The Sun today. In Austria, the candidate of a genuinely far-right party—its first leader was a former SS officer—could become president. If the Freedom Party’s Norbert Hofer does win, and the race is too close to predict with any confidence, it’d show that the very extremist forces that the European project was meant to crush are now on the rise—and in part, because of the EU’s own failings. But it is the Italian referendum that could have the more immediate consequences. Italy bans polls just

Algerian winter

It is more than possible that before any Brexit deal is discussed, let alone concluded, the EU will have effectively collapsed. And the key factor could be the demise of Algeria’s leader of 17 years. President Abdelaziz Bouteflika is 79 and has needed a wheelchair since having a stroke in 2013. ‘His mind is even more infirm than his body,’ one observer tells me. Bouteflika returned home recently after a week’s stay at a private clinic in France. His prognosis isn’t good. Officially, Bouteflika underwent standard ‘periodic medical tests’ in Grenoble. But no one believes this. Among people who know Algeria well, there is little doubt that he is severely

Trump and Fillon mean that Britain matters far more to Eastern Europe

By next summer, Britain could be the only one of the three major Western military powers unequivocally opposed to the idea of Russian domination of its near neighbours. For François Fillon, the Republican candidate for the French Presidency and the favourite to win, has — as UK security sources point out — pretty much the same view of Russia as Donald Trump does. Fillon favours allying with Russia in Syria and seeking Vladimir Putin’s help to defeat both Islamic State and the broader Islamist terrorist threat. Fillon also wants EU sanctions on Russia, imposed because of its annexation of Crimea and broader interference in Ukraine, lifted. This shift in world

Tory Brexiteers pressure May to quit EU single market and customs union

Normally, the Saturday before an autumn statement would be dominated by speculation about what is in it. But, as I say in The Sun today, both Number 10 and the Treasury are emphasising that while there’ll be important things on productivity, infrastructure and fiscal rules in Wednesday’s statement, there’ll be no rabbits out of hats. Partly, this is because of  Philip Hammond’s personality: he’s not a political showman. But it is also because he’s not got much room for manoeuvre.  As he has emphasised to Cabinet colleagues, the growth forecasts might not be dramatically lower than they were in March, but cumulatively they have a big effect—limiting what the government

Theresa May now has some Trumps in her Brexit negotiating hand

Britain’s position heading into its Brexit talks is far stronger than it was a week ago, I argue in The Sun today. Why, because Donald Trump has changed the dynamics of global politics. Brexit’s critics used to claim that this country would be isolated after it left the EU. But it is hard to make that case when the president-elect of the most powerful country in the world is in favour of it. Indeed, the next US President is more enthusiastic about it than the British Prime Minister. He was for it before June 23rd. Theresa May now has a chance to create a strong relationship with Trump before other

Government’s high court defeat sparks election chatter

What worries government ministers, as I say in The Sun this morning, is not the actual vote on the Article 50 bill—voting against the bill as whole would be akin to rejecting the referendum result—but attempts to tie Theresa May’s hands ahead of the negotiation through amendments to the bill. One senior Cabinet Minister tells me that peers and MPs ‘won’t be able to resist’ trying to amend the bill. Though, it is worth noting that because of public concern about free movement there probably isn’t a Commons majority for staying in the single market, post referendum. Downing Street is adamant that they don’t want an early election, and that

Spain’s political deadlock finally ends

After nearly a year of bickering and stalling, Spanish politicians have finally formed their country’s new government. Mariano Rajoy, leader of the conservative Popular Party (PP), returns for a second term as prime minister. This time, Rajoy heads up a coalition made up of the PP, centrist newcomer Ciudadanos (‘Citizens’) and the centre-right Canary Islands Coalition. This is good news for Spain and shows that, at last, pragmatism has trumped ideology. It has ensured that a dreaded third election, which had been looming in December, won’t now be needed. Rajoy’s administration won’t have it easy though. The coalition is deeply unpopular with many Spaniards and will face formidable opposition in congress. What’s