Czech Prime Minister Andrej Babiš is facing new accusations that he never fully
severed ties with his agricultural empire, after publicly promising to do so in
order to avoid major conflicts of interest in both Prague and Brussels.
On taking up the Czech premiership in December, Babiš pledged to cut all links
with his company Agrofert, one of Central Europe’s largest agri-food and
chemicals groups. President Petr Pavel required him to take that step before
approving his government, and Babiš insisted his children would only take
Agrofert stakes after his death.
The commitment was meant to address long-standing conflict-of-interest concerns.
During Babiš’s previous term, EU and national auditors found the company had
improperly received at least €208 million in EU and national agricultural
subsidies, triggering payment suspensions and repayment demands.
At the EU level, the stakes are heightened by the fact that as prime minister,
Babiš is now helping to negotiate the bloc’s next long-term budget, including
farm spending from which Agrofert has previously benefited.
Babiš’s pledges of a total rupture with Agrofert are now coming into question,
even though the prime minister insists he has done much more than the law
required.
A leaked legal document that purports to map out his new relationship with the
company describes a trust structure that removes him from day-to-day
decision-making only while he remains in office, and that transfers
decision-making powers to a family-run governance mechanism once his political
career ends. The 18-page document, dated Dec. 17, was first reported by Czech
outlet Seznam Zprávy. POLITICO has seen a copy.
The document says the trust is meant to ensure “independent administration
during the period in which the [establisher of the trust] holds the office of a
member of the Government.” Once that period ends — whether through Babiš’s
departure from office or, eventually, his death — the business would
automatically transition to “family administration”
Opposition lawmakers seized on the document as evidence that Babiš would still
have strong personal and family interests tied to Agrofert during his lifetime,
potentially motivating his decisions on both the domestic and EU levels.
“The news about Andrej Babiš’s unresolved conflict of interest is really just
the proverbial cherry on top,” Pirate party parliamentary leader Olga Richterová
said in a legislative debate in Prague on Tuesday. “It is becoming clear that
you can’t teach an old dog new tricks. The old practices used when Agrofert was
previously parked in trust funds appear set to be applied again in a very
similar way.”
Danuše Nerudová, a European Parliament lawmaker from the Mayors and Independents
party, told POLITICO the arrangement preserves a personal incentive to protect
family business interests. “His companies benefited improperly from EU
agricultural subsidies in the past,” she said. “That incentive does not
disappear simply because the structure is renamed.”
Given the implications for the EU budget, the European Commission said it was
monitoring developments and underlined its rule that “anybody nominated in a
member state to be involved in budget implementation … shall not take any action
which may bring their own interests into conflict with those of the union.”
POLITICO requested comment from Babiš’s office, but did not receive a response
before publication.
Danuše Nerudová told POLITICO the arrangement preserves a personal incentive to
protect family business interests. | Martin Divisek/EPA
Babiš responded to the Seznam Zprávy story in another newspaper. He did not deny
the authenticity of the document and its reference to a continued family
interest, but claimed he was doing nothing wrong. “What I said earlier clearly
applies. I did much more than the law required of me. The shares of the company
that I built for almost 30 years will never be returned to me,” he told the
Deník N newspaper.
POLITICAL DEBATE IN PRAGUE
When Babiš made his pledge to keep out of Agrofert last year, his language was
definitive.
“I have decided to irrevocably give up the Agrofert company,” Babiš said in
December. “I will never own it, I will not have any economic relations with it,
and I will not be in any contact with it.”
He added: “My children will only get Agrofert after my death.”
Babiš reiterated his defense this week, telling Czech news agency ČTK that the
Agrofert shares would never return to him and that he would not benefit from
them for the rest of his life. He said the arrangement complied with both Czech
and European law, and accused critics of trying to deprive him of his property.
The prime minister has previously insisted any conflict would be resolved once
the trust takes effect. He missed a self-imposed early-January deadline to
complete the share transfer, saying he was still awaiting approval from
financial authorities in two EU countries.
David Kotora, executive director of Transparency International Czech Republic,
said the trust “is currently an inactive shell” because the share transfer has
not taken place. Once activated, he said, it would still fail EU standards.
“This structure clearly cannot withstand European regulations concerning
conflicts of interest in the redistribution of public funds,” Kotora said.
During the parliamentary session on Tuesday, Babiš dismissed the renewed
scrutiny as a “festival of hypocrisy.”
“This is not a spontaneous defense of democracy. It’s political theater,” he
said, stressing that Agrofert is not receiving any subsidies until the trust is
in effect. “You invented the conflict of interest because you’re incapable of
beating me.”
Lawmakers from Babiš’s ANO party have rallied behind him, rejecting assessments
of unresolved conflicts of interest. In a joint statement to POLITICO, MEPs
Ondřej Knotek and Klára Dostálová said the prime minister had taken steps “well
beyond what is required by Czech and European law.”
He has relinquished ownership and control of Agrofert permanently, they said,
and would not benefit from the company for the rest of his life.
“If someone finds this insufficient,” they added, “it is no longer about the
essence of the matter, but about an effort to constantly question it.”
Economist Petr Bartoň, a regulatory and public policy expert, noted Czech
conflict-of-interest rules were never designed for politicians with business
empires on the scale of Agrofert.
“The law does not aim to permanently separate politicians from their assets,”
Bartoň said. “It aims to manage conflicts while they are in office.” Promises to
go further, he added, may have political value but “no legal force.”
Ketrin Jochecová contributed to this report.
Tag - career
The EU’s elite recruitment competition opens Thursday for the first time in
seven years. But would you pass it?
The assessment is meant to inject new blood into Brussels’ corridors of power,
with successful applicants eligible for roles at grade “AD-5,” which come with a
monthly pay packet of between €5,973 and €6,758, as well as the chance to
progress through the bureaucracy and take up influential roles.
Tens of thousands of people are expected to take the exam. So take our version
of the test and find out if you’d make the grade. Some are based on actual
questions and some we’ve made up.
*Disclaimer 1. The actual tests contain verbal/numerical/abstract reasoning
skills questions (can you solve problems using words/numbers/diagrams); and
digital skills questions (do you know anything about tech). We’ve skipped these
in favor of the third part, EU knowledge.
*Disclaimer 2. Passing this test does not mean you get an EU job (or a job at
POLITICO).
BRUSSELS — Disgraced British politician Peter Mandelson is facing demands to be
stripped of his pension as a former European commissioner if investigators found
he broke EU rules over his contact with convicted sex offender Jeffrey Epstein.
Mandelson served as a European commissioner between 2004 and 2008 and is now at
the center of a spiraling scandal in Britain. Newly released files showed how
Mandelson, who was a senior British minister at the time, helped provide
Epstein, then a financier, with information about a €500 billion bailout to save
the euro in 2010.
The European Commission is looking into whether Mandelson broke its rules, which
apply even after commissioners have left office, though ethics campaigners have
called for a full fraud inquiry by independent investigators. Mandelson should
lose the commissioner’s pension to which he is entitled if he’s found to have
breached the rules, the campaigners said.
“Given the severity of allegations concerning Peter Mandelson’s deplorable
relationship with Jeffrey Epstein, the European Commission and European
Anti-Fraud Office must pursue an immediate investigation to establish any
potential misconduct both during and beyond his tenure as European
Commissioner,” Nick Aiossa, director at Transparency International, a leading
anti-corruption campaign group, told POLITICO. “Should it do so, Mandelson must
be stripped of his Commissioner’s pension.”
Daniel Freund, a Green MEP from Germany, condemned the lack of action and
investigations against “the most powerful people on earth” over their links to
the disgraced financier. “That EU commissioners were somehow involved with this
universe is just outrageous,” he told POLITICO. “Taking away the pension would
be justified if he broke any EU rules.”
Mandelson, 72, was entitled to an inflation-linked pension reportedly worth
£31,000 a year when he turned 65 for his four years as a European commissioner.
This is on top of other any pensions from his time as an elected politician in
the U.K. and in other roles.
Mandelson did not immediately respond to a request for comment. He has
previously said he was wrong to have continued his association with Epstein and
apologized “unequivocally” to Epstein’s victims.
In a statement, the EU’s anti-fraud office, known as OLAF, said: “We cannot
provide details regarding cases which OLAF may or may not be treating. This is
to protect the confidentiality of any possible investigations and of possible
ensuing judicial proceedings, as well as to ensure respect for personal data and
procedural rights.”
In London, Britain’s Health Secretary Wes Streeting said Mandelson should lose
the severance payment he was entitled to when his career as U.K. ambassador to
the United States ended over the Epstein scandal. Speaking to Times Radio,
Streeting also suggested Mandelson could potentially be stripped of related
pension entitlements.
The opposition Reform UK party said Mandelson should lose the pension he’s
entitled to receive as a former government minister.
Noah Keate contributed to this report.
BRUSSELS — The EU is relaunching its elite recruitment competition after a
seven-year break in an effort to find a new generation of high-level
administrators to help manage the world’s second largest economy.
The European Commission, which last held the competition in 2019, organizes the
assessment to inject new blood into Brussels’ corridors of power. A big wage and
job security await those who pass the test.
“It’s a contract for life,” said András Baneth, managing partner of EU Training,
which prepares applicants for the process, and author of a book on how to pass.
“This is a great opportunity for predictable career advancement and, of course,
a salary and everything that goes with it.”
Successful applicants are eligible for roles at grade “AD-5,” which come with a
monthly pay packet of between €5,973 and €6,758, as well as the chance to
progress through the bureaucracy and take up influential roles in commissioners’
Cabinets — the elite teams of advisers weighing in on key policy areas.
The graduate scheme, aimed at generalists, will open on Thursday, according to
the European Personnel Selection Office (EPSO), and close on March 10. It is the
first time since 2019 that the contest has been held. The process includes
psychometric testing, an EU knowledge assessment and an essay submission for
those who pass the initial stages.
Commission President Ursula von der Leyen has made it a priority to give
younger, harder-working staff a chance to climb the ladder in an institution
that has historically had a stiff hierarchy, Commission officials said.
“It’s very important to bring a younger talent pool with a different way of
thinking in,” said a senior official, granted anonymity to speak frankly.
“You’ll have a lot of certain levels retiring and you need to make sure the next
generation of public servants is coming through. Of course we need people who
understand the institution, but we also need people who understand the
technologies of the future from a different perspective.”
According to a spokesperson for the Commission, the “extended pause” over the
past seven years was due to a move to full online testing. The scrapping of an
assessment center stage means “the overall duration of the competitions of EPSO
has been shortened.”
SET FOR LIFE
“After entering the workforce four years ago, this is finally my first chance to
enter the [EU] institutions, which until now has seemed impossible,” said one
prospective applicant, granted anonymity to avoid harming their application.
“Everyone knows that once you pass the [competition], and get a job, you’re set
for life. Which is why literally all of my friends will take this opportunity.”
Many younger staff in the 33,000-strong Commission workforce currently serve in
relatively insecure roles on short-term contracts or as agency employees,
meaning they have fewer benefits, worse take-home pay and far less certainty
over their future. The executive has launched a review of its structure,
designed to improve its efficiency and cost-effectiveness, with concerns that
those who do not have official status could be negatively affected by a
restructure.
A second prospective applicant, working in the private sector, hit out at the
irregularity of the process. “I really hope it will be different this time to
give external people a chance, since at the moment the system favors candidates
already working at the institutions,” they said.
Baneth, the test expert, said that about 1,200 applicants will be directly
offered jobs from an applicant pool that could exceed 50,000. Others will be
added to a reserve list from which “only 30 percent will actually be offered a
job … this leads to a lot of negative feelings when someone goes through all
this and still they cannot be sure they get a job.”
For a year, federal judges grappling with President Donald Trump’s mass
deportation agenda have looked askance at his administration, warning of
potential or, in rarer cases, outright violations of their orders.
But in recent weeks, that drumbeat of subtle alarm has metastasized into a
full-blown clarion call by judges across the country, who are now openly
castigating what they say are systematic legal and constitutional abuses by the
administration.
“There has been an undeniable move by the Government in the past month to defy
court orders or at least to stretch the legal process to the breaking point in
an attempt to deny noncitizens their due process rights,” warned U.S. District
Judge Michael Davis, a Minnesota-based Clinton appointee. His docket has been
inundated as a result of Operation Metro Surge, the Trump administration’s
large-scale deportation campaign in the Twin Cities.
The object of judges’ frustration has routinely been Immigration and Customs
Enforcement, the vanguard of Trump’s push to round up and expel millions of
noncitizens as quickly as possible. The agency’s unprecedented strategy to mass
detain people while their deportation proceedings are pending has flooded the
courts with tens of thousands of emergency lawsuits and resulted in a
breathtaking rejection by hundreds of judges.
“ICE is not a law unto itself,” Judge Patrick Schiltz, the chief judge on
Minnesota’s federal bench, said Wednesday in a ruling describing staggering
defiance by ICE to judges’ orders — particularly ones requiring the release of
detained immigrants. He estimated, conservatively, that the agency had violated
court orders by Minnesota judges 96 times this month alone.
Though the national focus has been on Minnesota, judges in other states have
grown exasperated as well:
— Judge Christine O’Hearn, a Biden appointee in New Jersey, blasted the
administration’s defiance of her order to release a man from ICE custody without
any conditions, noting that they instead required him to submit to electronic
monitoring. “Respondents blatantly disregarded this Court’s Order,” O’Hearn
wrote in a Tuesday order. “This was not a misunderstanding or lack of clarity;
it was knowing and purposeful,” she added.
— Judge Roy Dalton, a Florida-based Obama appointee, threatened sanctions
against Trump administration attorneys for what he says was presenting
misleading arguments in support of the administration’s deportation policies.
“Don’t hide the ball. Don’t ignore the overwhelming weight of persuasive
authority as if it won’t be found. And don’t send a sacrificial lamb to stand
before this Court with a fistful of cases that don’t apply and no cogent
argument for why they should,” he wrote in a Monday ruling.
— Judge Mary McElroy, a Trump appointee in Rhode Island, ruled Tuesday that the
administration defied her orders regarding the location of an ICE detainee, who
was moved to a facility in Massachusetts that McElroy had deemed “wholly
unsuitable.” “It seems clear that the Court can conclude that the
[administration] willfully violated two of this Court’s orders and willfully
misrepresented facts to the Court,” McElroy wrote.
— Judge Angel Kelley, a Biden appointee in Massachusetts, said ICE moved a
Salvadoran woman out of Maine without warning and in violation of an order to
keep her in place. That relocation caused the woman to miss her hearing to seek
protection from being deported back to El Salvador, where she said she feared
domestic abuse. “The Court notes that ICE signing its own permission slip,
citing its own operational needs as reason for the transfer, offers little
comfort or justification for ignoring a Federal Court Order,” Kelley wrote
Wednesday.
— Judge Sunshine Sykes, a Biden appointee in Los Angeles, threatened to hold
administration officials in contempt for what she labeled “continued defiance”
of her order providing class action relief to immigrants targeted for detention.
— Judge Donovan Frank, a Clinton appointee in Minnesota, described a “deeply
concerning” practice by ICE to race detainees to states with more favorable
judges, which he said “generally suggest that ICE is attempting to hide the
location of detainees.”
Throughout the first year of Trump’s second term, there have been high-profile
examples in which judges have accused ICE and the Department of Homeland
Security of violating court orders — from Judge James Boasberg’s command in
March to retain custody of 137 Venezuelans shipped to El Salvador without due
process, to Judge Paula Xinis’ April order for the administration to facilitate
the return of Kilmar Abrego Garcia after his illegal deportation.
But the sheer volume of violations judges are now describing reflects an
intensification of the mass deportation effort and a system ill-prepared to
handle the influx.
A Department of Homeland Security spokesperson responded to questions about the
complaints from judges by noting Schiltz backed off an initial plan to have
ICE’s director, Todd Lyons, appear for a potential contempt proceeding.
“If DHS’s behavior was so vile, why dismiss the order to appear?” said Assistant
Secretary Tricia McLaughlin, labeling Schiltz — a two-time clerk for Supreme
Court Justice Antonin Scalia — an “activist judge.”“DHS will continue to enforce
the laws of the United States within all applicable constitutional guidelines.
We will not be deterred by activists either in the streets or on the bench,” she
added.
The surge in violations of court orders has been accompanied by signs that the
Justice Department — like the court system — is simply overwhelmed by the volume
of emergency cases brought by people detained in the mass deportation push. It’s
led to mistakes, missed deadlines and even more frustration from judges, who
themselves are buckling under the caseload.
Ana Voss, the top civil litigator in the U.S. Attorney’s Office in Minnesota,
apologized to U.S. District Judge Jerry Blackwell last week, noting that in the
crush of cases her office has handled recently, she failed to keep the court
updated on the location of a man the judge had ordered to be returned to
Minnesota from Texas.
“I have spent considerable time on this and other cases related to transfer and
return issues over the past 3 days,” Voss said.
Notably, Schiltz singled out Voss and her office for praise when he initially
criticized ICE for its legal violations. He said the career prosecutors “have
struggled mightily” to comply with court orders despite their leadership’s
failure “to provide them with adequate resources.” When he itemized the
violations Wednesday, Schiltz said it was likely ICE had violated more court
orders in January than some agencies had in their entire existence.
“This list,” he said, “should give pause to anyone — no matter his or her
political beliefs — who cares about the rule of law. “
When pro-European liberal Rob Jetten defeated the far right to win the Dutch
election three months ago, he gave beleaguered centrists across the region cause
to hope.
Now, with a coalition deal finally agreed, his incoming government intends to do
the same for NATO and the battered transatlantic alliance on which it depends.
That is the pledge from Dutch Foreign Minister David van Weel, who told POLITICO
in an interview what the world should expect from the new administration in The
Hague, which must oversee one of Europe’s fastest growing militaries, and is a
significant NATO contributor within the EU.
“You will have a government that will look at the world as it is and not as it
wishes it to be,” Van Weel said this week. “Therefore you will see a government
that will still consider NATO to be the cornerstone of our collective security.”
But the EU itself will also need to be “stronger” on its own, both economically
and in military terms, he said.
Van Weel was speaking after a bruising three weeks in which Donald Trump has
rocked the foundations of the transatlantic alliance. European leaders are
brainstorming ideas for how to survive in a world without American protection —
or even friendship.
The damage Trump’s Greenland demands have done to transatlantic trust is
real: “I think that is undeniable,” he said. “Let’s hope we don’t see Greenland
back on the menu.”
Van Weel also regards Trump’s demands for Greenland as a damaging distraction
from the urgent task of negotiating peace in Ukraine. “I really regret that this
has taken up so much time and effort of so many people in these times when the
whole world seems to be on fire,” he said.
And, he added: “There’s many other areas around the world that we need to work
together in order to achieve something. So whether or not there is trust, I
think that is something we need to work on, but we need each other.”
NATO OR NOT?
The Netherlands, a country of only 18 million people, has pledged to meet the
new NATO target to spend 5 percent of GDP on national security. It currently
spends around $28 billion a year on defense. That’s a larger sum than all the
European Union’s NATO members apart from France, Germany, Italy, Poland and
Spain, all of which have populations at least twice the size of the
Netherlands’.
The previous Dutch government aimed to increase the size of the armed forces
from 70,000 personnel to 100,000 by 2030, and perhaps 200,000 in future.
Earlier in his career, Van Weel worked with Mark Rutte during the latter’s time
as prime minister. Rutte now finds himself in a fight to preserve the
transatlantic security alliance as secretary-general of NATO.
Rutte caused uproar on Jan. 26 when he warned EU politicians they were
“dreaming” if they believed Europe could defend itself without American
help. Some of his critics think he is the delusional one if he believes Trump
can be relied on.
Van Weel thinks both sides have a point. “One, at the moment, yes, we rely
heavily on the U.S.. Two, we have to decrease that … And three, that’s also in
the interest of a more even and balanced transatlantic bond,” he said.
European governments must be prepared to take drastic decisions to boost the
region’s defenses, he believes. For example, he is not against the idea of
creating a new European Security Council, which would include non-EU countries
such as the U.K.
“The EU was built from a premise of economic cooperation in order to prevent war
and therefore never had a security-oriented structure or aim,” Van Weel said.
“The world has changed. The EU needs to play a role in the security realm and
therefore you might need to look at structures that we don’t have at the
moment.”
Russia’s full-scale invasion of Ukraine was “a major wake-up call,” as is the
“changing geopolitical situation in general.”
He added: “Even if you don’t want to do it [increase defense spending] for NATO,
even if you don’t want to do it to please the U.S., you should do it for your
own interests. And that’s why I am happy that our own coalition will indeed
ensure that we reach the targets for defense spending.”
Van Weel said he hopes that a peace deal for Ukraine is “close,” adding that he
was hearing “promising things” from the Ukrainian side about progress. But the
big problem is Vladimir Putin, he said, and this is where Trump can help. “We do
need the U.S. president to put pressure on Russia to come to the negotiating
table to finish this conflict,” he said. “It really is time for peace.”
LONDON — Canadian Prime Minister Mark Carney left Beijing and promptly declared
the U.S.-led “world order” broken. Don’t expect his British counterpart to do
the same.
Keir Starmer will land in the Chinese capital Wednesday for the first visit by a
U.K. prime minister since 2018. By meeting President Xi Jinping, he will end
what he has called an “ice age” under the previous Conservative administration,
and try to win deals that he can sell to voters as a boost to Britain’s
sputtering economy.
Starmer is one of a queue of leaders flocking to the world’s second-largest
economy, including France’s Emmanuel Macron in December and Germany’s Friedrich
Merz next month. Like Carney did in Davos last week, the British PM has warned
the world is the most unstable it has been for a generation.
Yet unlike Carney, Starmer is desperate not to paint this as a rupture from the
U.S. — and to avoid the criticism Trump unleashed on Carney in recent days over
his dealings with China. The U.K. PM is trying to ride three horses at once,
staying friendly — or at least engaging — with Washington D.C., Brussels and
Beijing.
It is his “three-body problem,” joked a senior Westminster figure who has long
worked on British-China relations.
POLITICO spoke to 22 current and former officials, MPs, diplomats, industry
figures and China experts, most of whom were granted anonymity to speak frankly.
They painted a picture of a leader walking the same tightrope he always has
surrounded by grim choices — from tricky post-Brexit negotiations with the EU,
to Donald Trump taking potshots at British policies and freezing talks on a
U.K.-U.S. tech deal.
Starmer wants his (long-planned) visit to China to secure growth, but be
cautious enough not to compromise national security or enrage Trump. He appears
neither to have ramped up engagement with Beijing in response to Trump, nor
reduced it amid criticism of China’s espionage and human rights record.
In short, he doesn’t want any drama.
“Starmer is more managerial. He wants to keep the U.K.’s relationships with big
powers steady,” said one person familiar with planning for the trip. “You can’t
really imagine him doing a Carney or a Macron and using the trip to set out a
big geopolitical vision.”
An official in 10 Downing Street added: “He’s clear that it is in the U.K.’s
interests to have a relationship with the world’s second biggest economy. While
the U.S. is our closest ally, he rejects the suggestion that means you can’t
have pragmatic dealings with China.”
He will be hoping Trump — whose own China visit is planned for April — sees it
that way too.
BRING OUT THE CAVALRY
Starmer has one word in his mind for this trip — growth, which was just 0.1
percent in the three months to September.
The prime minister will be flanked by executives from City giants HSBC, Standard
Chartered, Schroders and the London Stock Exchange Group; pharmaceutical company
AstraZeneca; car manufacturer Jaguar Land Rover; energy provider Octopus; and
Brompton, the folding bicycle manufacturer.
The priority in Downing Street will be bringing back “a sellable headline,” said
the person familiar with trip planning quoted above. The economy is the
overwhelming focus. While officials discussed trying to secure a political win,
such as China lifting sanctions it imposed on British parliamentarians in 2021,
one U.K. official said they now believe this to be unlikely.
Between them, five people familiar with the trip’s planning predicted a large
number of deals, dialogues and memorandums of understanding — but largely in
areas with the fewest national security concerns.
These are likely to include joint work on medical, health and life sciences,
cooperation on climate science, and work to highlight Mandarin language schemes,
the people said.
Officials are also working on the mutual recognition of professional
qualifications and visa-free travel for short stays, while firms have been
pushing for more expansive banking and insurance licences for British companies
operating in China. The U.K. is meanwhile likely to try to persuade Beijing to
lower import tariffs on Scotch whisky, which doubled in February 2025.
A former U.K. official who was involved in Britain’s last prime ministerial
visit to China, by Theresa May in 2018, predicted all deals will already be
“either 100 or 99 percent agreed, in the system, and No. 10 will already have a
firm number in its head that it can announce.”
THREADING THE NEEDLE
Yet all five people agreed there is unlikely to be a deal on heavy energy
infrastructure, including wind turbine technology, that could leave Britain
vulnerable to China. The U.K. has still not decided whether to let Ming Yang, a
Chinese firm, invest £1.5 billion in a wind farm off the coast of Scotland.
And while Carney agreed to ease tariffs on Chinese electric vehicles (EVs),
three of the five people familiar with the trip’s planning said that any deep
co-operation on EV technology is likely to be off the table. One of them
predicted: “This won’t be another Canada moment. I don’t see us opening the
floodgates on EVs.”
Britain is trying to stick to “amber and green areas” for any deals, said the
first person familiar with the planning. The second of the five people said: “I
think they‘re going for the soft, slightly lovey stuff.”
Britain has good reason to be reluctant, as Chinese-affiliated groups have long
been accused of hacking and espionage, including against MPs and Britain’s
Electoral Commission. Westminster was gripped by headlines in December about a
collapsed case against two men who had been accused of spying for China. Chinese
firm Huawei was banned from helping build the U.K.’s 5G phone network in 2020
after pressure from Trump.
Even now, Britain’s security agencies are working on mitigations to
telecommunications cables near the Tower of London. They pass close to the
boundary of China’s proposed embassy, which won planning approval last week.
Andrew Small, director of the Asia Programme at the European Council on Foreign
Relations, a think tank working on foreign and security policy, said: “The
current debate about how to ‘safely’ increase China’s role in U.K. green energy
supplies — especially through wind power — has serious echoes of 5G all over
again, and is a bigger concern on the U.S. side than the embassy decision.”
Starmer and his team also “don’t want to antagonize the Americans” ahead of
Trump’s own visit in April, said the third of the five people familiar with trip
planning. “They’re on eggshells … if they announce a new dialogue on United
Nations policy or whatever bullshit they can come up with, any of those could be
interpreted as a broadside to the Trump administration.”
All these factors mean Starmer’s path to a “win” is narrow. Tahlia Peterson, a
fellow working on China at Chatham House, the international affairs think tank,
said: “Starmer isn’t going to ‘reset’ the relationship in one visit or unlock
large-scale Chinese investment into Britain’s core infrastructure.”
Small said foreign firms are being squeezed out of the Chinese market and Xi is
“weaponizing” the dependency on Chinese supply chains. He added: “Beijing will
likely offer extremely minor concessions in areas such as financial services,
[amounting to] no more than a rounding error in economic scale.”
Chancellor Rachel Reeves knows the pain of this. Britain’s top finance minister
was mocked when she returned with just £600 million of agreements from her visit
to China a year ago. One former Tory minister said the figure was a “deliberate
insult” by China.
Even once the big win is in the bag, there is the danger of it falling apart on
arrival. Carney announced Canada and China would expand visa-free travel, only
for Beijing’s ambassador to Ottawa to say that the move was not yet official.
Despite this, businesses have been keen on Starmer’s re-engagement.
Rain Newton-Smith, director-general of the Confederation of British Industry,
said firms are concerned about the dependence on Chinese rare earths but added:
“If you map supply chains from anywhere, the idea that you can decouple from
China is impossible. It’s about how that trade can be facilitated in the best
way.”
EMBASSY ROW
Even if Starmer gets his wins, this visit will bring controversies that (critics
say) show the asymmetry in Britain’s relationship with China. A tale of two
embassies serves as a good metaphor.
Britain finally approved plans last week for China’s new outpost in London,
despite a long row over national security. China held off formally confirming
Starmer’s visit until the London embassy decision was finalized, the first
person familiar with planning for the trip said. (Others point out Starmer would
not want to go until the issue was resolved.)
The result was a scramble in which executives were only formally invited a week
before take-off.
And Britain has not yet received approval to renovate its own embassy in
Beijing. Officials privately refer to the building as “falling down,” while one
person who has visited said construction materials were piled up against walls.
It is “crumbling,” added another U.K. official: “The walls have got cracks on
them, the wallpaper’s peeling off, it’s got damp patches.”
British officials refused to give any impression of a “quid pro quo” for the two
projects under the U.K.’s semi-judicial planning system. But that means much of
Whitehall still does not know if Britain’s embassy revamp in Beijing will be
approved, or held back until China’s project in London undergoes a further
review in the courts. U.K. officials are privately pressing their Chinese
counterparts to give the green light.
One of the people keenest on a breakthrough will be Britain’s new ambassador to
Beijing Peter Wilson, a career diplomat described by people who have met him as
“outstanding,” “super smart” and “very friendly.”
For Wilson, hosting Starmer will be one of his trickiest jobs yet.
The everyday precautions when doing business in China have made preparations for
this trip more intense. Government officials and corporate executives are
bringing secure devices and will have been briefed on the risk of eavesdropping
and honeytraps.
One member of Theresa May’s 2018 delegation to China recalled opening the door
of what they thought was their vehicle, only to see several people with headsets
on, listening carefully and typing. They compared it to a scene in a spy film.
Activists and MPs will put Starmer under pressure to raise human rights issues —
including what campaigners say is a genocide against the Uyghur people in
Xinjiang province — on a trip governed by strict protocol where one stray word
can derail a deal.
Pro-democracy publisher Jimmy Lai, who has British nationality, is facing
sentencing in Hong Kong imminently for national security offenses. During the
PM’s last meeting with Xi in 2024, Chinese officials bundled British journalists
out of the room when he raised the case. Campaigners had thought Lai’s
sentencing could take place this week.
All these factors mean tension in the British state — which has faced a tussle
between “securocrats” and departments pushing for growth — has been high ahead
of the trip. Government comments on China are workshopped carefully before
publication.
Earlier this month, Foreign Secretary Yvette Cooper told POLITICO her work on
Beijing involves looking at “transnational repression” and “espionage threats.”
But when Chancellor Rachel Reeves met China’s Finance Minister He Lifeng in
Davos last week to tee up Starmer’s visit, the U.K. Treasury did not publicize
the meeting — beyond a little-noticed photo on its Flickr account.
SLOW BOAT TO CHINA
Whatever the controversies, Labour’s China stance has been steadily taking shape
since before Starmer took office in 2024.
Labour drew inspiration from its sister party in Australia and the U.S.
Democrats, both of which had regular meetings with Beijing. Party aides argued
that after a brief “golden era” under Conservative PM David Cameron, Britain
engaged less with China than with the Soviet Union during the Cold War. The
result of Labour’s thinking was the policy of “three Cs” — “challenge, compete,
and cooperate.”
A procession of visits to Beijing followed, most notably Reeves last year,
culminating in Starmer’s trip. His National Security Adviser Jonathan Powell was
involved in planning across much of 2025, even travelling to meet China’s top
diplomat, Wang Yi, in November.
Starmer teed up this week’s visit with a December speech arguing the “binary”
view of China had persisted for too long. He promised to engage with Beijing
carefully while taking a “more transactional approach to pretty well
everything.”
The result was that this visit has long been locked in; just as Labour aides
argue the London embassy decision was set in train in 2018, when the Tory
government gave diplomatic consent for the site.
Labour ministers “just want to normalize” the fact of dealing with China, said
the senior Westminster figure quoted above. Newton-Smith added: “I think the
view is that the government’s engagement with eyes wide open is the right
strategy. And under the previous government, we did lose out.”
But for each person who praises the re-engagement, there are others who say it
has left Britain vulnerable while begging for scraps at China’s table. Hawks
argue the hard details behind the “three Cs” were long nebulous, while Labour’s
long-awaited “audit” of U.K.-China relations was delayed before being folded
briefly into a wider security document.
“Every single bad decision now can be traced back to the first six months,”
argued the third person familiar with planning quoted above. “They were
absolutely ill-prepared and made a series of decisions that have boxed them into
a corner.” They added: “The government lacks the killer instinct to deal with
China. It’s not in their DNA.”
Luke de Pulford, a human rights campaigner and director of the
Inter-Parliamentary Alliance on China, argued the Tories had engaged with China
— Foreign Secretary James Cleverly visited in 2023 — and Labour was simply going
much further.
“China is pursuing an enterprise to reshape the global order in its own image,
and to that end, to change our institutions and way of life to the extent that
they’re an obstacle to it,” he said. “That’s what they’re up to — and we keep
falling for it.”
END OF THE OLD ORDER?
His language may be less dramatic, but Starmer’s visit to China does have some
parallels with Canada. Carney’s trip was the first by a Canadian PM since 2017,
and he and Xi agreed a “new strategic partnership.”
Later at Davos, the Canadian PM talked of “the end of a pleasant fiction” and
warned multilateral institutions such as the United Nations are under threat.
One British industry figure who attended Davos said of Carney’s speech: “It was
great. Everyone was talking about it. Someone said to me that was the best and
most poignant speech they’d ever seen at the World Economic Forum. That may be a
little overblown, but I guess most of the speeches at the WEF are quite dull.”
The language used by Starmer, a former human rights lawyer devoted to
multilateralism, has not been totally dissimilar. Britain could no longer “look
only to international institutions to uphold our values and interests,” he said
in December. “We must do it ourselves through deals and alliances.”
But while some in the U.K. government privately agree with Carney’s point, the
real difference is the two men’s approach to Trump.
Starmer will temper his messaging carefully to avoid upsetting either his
Chinese hosts or the U.S., even as Trump throws semi-regular rocks at Britain.
To Peterson, this is unavoidable. “China, the U.S. and the EU are likely to
continue to dominate global economic growth for the foreseeable future,” she
said. “Starmer’s choice is not whether to engage, but how.”
Esther Webber contributed reporting.
It seems impossible to have a conversation today without artificial intelligence
(AI) playing some role, demonstrating the massive power of the technology. It
has the potential to impact every part of business, and European policymakers
are on board.
In February 2025, Ursula von der Leyen, the European Commission president, said,
“We want Europe to be one of the leading AI continents … AI can help us boost
our competitiveness, protect our security, shore up public health, and make
access to knowledge and information more democratic.”
Research from Nokia suggests that businesses share this enthusiasm and ambition:
84 percent of more than 1,000 respondents said AI features in the growth
strategy of their organization, while 62 percent are directing at least 20
percent of ICT capex budgets toward the technology.
However, the equation is not yet balanced.
Three-quarters of survey respondents state that current telecom infrastructure
limits the ability to deliver on those ambitions. Meanwhile, 45 percent suggest
these limitations would delay, constrain or entirely limit investments.
There is clearly a disconnect between the ambition and the ability to deliver.
At present, Europe lags the United States and parts of Asia in areas such as
network deployment, related investment levels and scale.
> If AI does not reach its full potential, EU competitiveness will suffer,
> economic growth will have a ceiling, the creation of new jobs will have a
> limit and consumers will not see the benefits.
What we must remember primarily is that AI does not happen without advanced,
trusted and future-proofed networks. Infrastructure is not a ‘nice to have’ it
is a fundamental part. Simply put, today’s networks in Europe require more
investments to power the AI dream we all have.
If AI does not reach its full potential, EU competitiveness will suffer,
economic growth will have a ceiling, the creation of new jobs will have a limit
and consumers will not see the benefits.
When we asked businesses about the challenge of meeting AI demands during our
research, the lack of adequate connectivity infrastructure was the fourth common
answer out of 15 potential options.
Our telecom connectivity regulatory approach must be more closely aligned with
the goal of fostering AI. That means progressing toward a genuine telecom single
market, adopting a novel approach to competition policy to allow market
consolidation to lead to more investments, and ensuring connectivity is always
secure and trusted.
Supporting more investments in next-generation networks through consolidation
AI places heavy demands on networks. It requires low latency, high bandwidth and
reliability, and efficient traffic management. To deliver this, Europe needs to
accelerate investment in 5G standalone, fiber to enterprises, edge data centers
and IP-optical backbone networks optimized for AI.
> As industry voices such as Nokia have emphasized, the networks that power AI
> must themselves make greater use of automation and AI.
Consolidation (i.e. reducing the number of telecom operators within the national
telecom markets of EU member states) is part of the solution. Consolidation will
allow operators to achieve economies of scale and improve operating efficiency,
therefore encouraging investment and catalyzing innovation.
As industry voices such as Nokia have emphasized, the networks that power AI
must themselves make greater use of automation and AI. Policy support should
therefore extend to both network innovation and deployment.
Trust: A precondition for AI adoption
Intellectual property (IP) theft is a threat to Europe’s industrial future and
only trusted technology should be used in core functions, systems and sectors
(such as energy, transport and defense). In this context, the underlying
connectivity should always be secure and trusted. The 5G Security Toolbox,
restricting untrusted technology, should therefore be extended to all telecom
technologies (including fiber, optics and IP) and made compulsory in all EU
member states. European governments must make protecting their industries and
citizens a high priority.
Completing the digital single market
Although the single market is one of Europe’s defining projects, the reality in
telecoms — a key part of the digital single market — is still fragmented. As an
example, different spectrum policies create barriers across borders and can
limit network roll outs.
Levers on top of advanced connectivity
To enable the AI ecosystem in Europe, there are several different enabling
levers European policymakers should advance on top of fostering advanced and
trusted connectivity:
* The availability of compute infrastructure. The AI Continent Action Plan, as
well as the IPCEI Compute Infrastructure Continuum, and the European
High-Performance Computing Joint Undertaking should facilitate building AI
data centers in Europe.
* Leadership in edge computing. There should also be clear support for securing
Europe’s access to and leadership in edge solutions and building out edge
capacity. Edge solutions increase processing speeds and are important for
enabling AI adoption, while also creating a catalyst for economic growth.
With the right data center capacity and edge compute capabilities available,
European businesses can meet the new requirements of AI use cases.
* Harmonization of rules. There are currently implications for AI in several
policy areas, including the AI Act, GDPR, Data Act, cybersecurity laws and
sector-specific regulations. This creates confusion, whereas AI requires
clarity. Simplification and harmonization of these regulations should be
pursued.
* AI Act implementation and simplification. There are concerns about the
implementation of the AI Act. The standards for high-risk AI may not
be available before the obligations of the AI act enter into force, hampering
business ambitions due to legal uncertainty. The application date of the AI
Act’s provisions on high-risk AI should be postponed by two years to align
with the development of standards. There needs to be greater clarity on
definitions and simplification measures should be pursued across the entire
ecosystem. Policies must be simple enough to follow, otherwise adoption may
falter. Policy needs to act as an enabler, not a barrier to innovation.
* Upskilling and new skills. AI will require new skills of employees and users,
as well as creating entirely new career paths. Europe needs to prepare for
this new world.
If Europe can deliver on these priorities, the benefits will be tangible:
improved services, stronger industries, increased competitiveness and higher
economic growth. AI will deliver to those who best prepare themselves.
We must act now with the urgency and consistency that the moment demands.
--------------------------------------------------------------------------------
Author biography: Marc Vancoppenolle is leading the geopolitical and government
relations EU and Europe function at Nokia. He and his team are working with
institutions and stakeholders in Europe to create a favorable political and
regulatory environment fostering broadband investments and cross sectoral
digitalization at large.
Vancoppenolle has over 30 years of experience in the telecommunication industry.
He joined Alcatel in 1991, and then Alcatel-Lucent, where he took various
international and worldwide technical, commercial, marketing, communication and
government affairs leadership roles.
Vancoppenolle is a Belgian and French national. He holds a Master of Science,
with a specialization in telecommunication, from the University of Leuven
complemented with marketing studies from the University of Antwerp. He is a
member of the DIGITALEUROPE Executive Board, Associate to Nokia’s CEO at the ERT
(European Round Table for Industry), and advisor to FITCE Belgium (Forum for ICT
& Media professionals). He has been vice-chair of the BUSINESSEUROPE Digital
Economy Taskforce as well as a member of the board of IICB (Innovation &
Incubation Center Brussels).
This article is presented by EFPIA with the support of AbbVie
I made a trip back to Europe recently, where I spent the vast majority of my
pharmaceutical career, to share my perspectives on competitiveness at the
European Health Summit. Now that I work in a role responsible for supporting
patient access to medicine globally, I view Europe, and how it compares
internationally, through a new lens, and I have been reflecting further on why
the choices made today will have such a critical impact on where medicines are
developed tomorrow.
Today, many patients around the world benefit from medicines built on European
science and breakthroughs of the last 20 years. Europeans, like me, can be proud
of this contribution. As I look forward, my concern is that we may not be able
to make the same claim in the next 20 years. It’s clear that Europe has a
choice. Investing in sustainable medicines growth and other enabling policies
will, I believe, bring significant benefits. Not doing so risks diminishing
global influence.
> Today, many patients around the world benefit from medicines built on European
> science and breakthroughs of the last 20 years
I reflect on three important points: 1) investment in healthcare benefits
individuals, healthcare and society, but the scale of this benefit remains
underappreciated; 2) connected to this, the underpinning science for future
innovation is increasingly happening elsewhere; and 3) this means the choices we
make today must address both of these trends.
First, let’s use the example of migraine. As I have heard a patient say,
“Migraine will not kill you but neither [will they] let you live.”[1]
Individuals can face being under a migraine attack for more than half of every
month, unable to leave home, maintain a job and engage in society.[2] It is the
second biggest cause of disability globally and the first among young women.[3]
It affects the quality of life of millions of Europeans.[4] From 2011-21 the
economic burden of migraine in Europe due to the loss of working days ranged
from €35-557 billion, depending on the country, representing 1-2 percent of
gross domestic product (GDP).[5]
Overall socioeconomic burden of migraine as percentage of the country’s GDP in
2021
Source: WifOR, The socioeconomic burden of migraine. The case of 6 European
Countries.5
Access to effective therapies could radically improve individuals’ lives and
their ability to return to work.[6] Yet, despite the staggering economic and
personal impacts, in some member states the latest medicines are either not
reimbursed or only available after several treatment failures.[7] Imagine if
Europe shifted its perspective on these conditions, investing to improve not
only health but unlocking the potential for workforce and economic productivity?
Moving to my second point, against this backdrop of underinvestment, where are
scientific advances now happening in our sector?
In recent years it is impressive to see China has become the second-largest drug
developer in the world,[8] and within five years it may lead the innovative
antibodies therapeutics sector,[9] which is particularly promising for complex
areas like oncology.
Cancer is projected to become the leading cause of death in Europe by 2035,[10]
yet the continent’s share of the number of oncology trials dropped from 41
percent in 2013 to 21 percent in 2023.10
Today, antibody-drug conjugates are bringing new hope in hard-to-treat tumor
types,[11] like ovarian,[12] lung[13] and colorectal[14] cancer, and we hope to
see more of these advances in the future. Unfortunately, Europe is no longer at
the forefront of the development of these innovations. This geographical shift
could impact high-quality jobs, the vitality of Europe’s biotech sector and,
most importantly, patients’ outcomes. [15]
> This is why I encourage choices to be made that clearly signal the value
> Europe attaches to medicines
This is why I encourage choices to be made that clearly signal the value Europe
attaches to medicines. This can be done by removing national cost-containment
measures, like clawbacks, that are increasingly eroding the ability of companies
to invest in European R&D. To provide a sense of their impact, between 2012 and
2023, clawbacks and price controls reduced manufacturer revenues by over €1.2
billion across five major EU markets, corresponding to a loss of 4.7 percent in
countries like Spain.[16] Moreover, we should address health technology
assessment approaches in Europe, or mandatory discount policies, which are
simply not adequately accounting for the wider societal value of medicines, such
as in the migraine example, and promoting a short-term approach to investment.
By broadening horizons and choosing a long-term investment strategy for
medicines and the life science sector, Europe will not only enable this
strategic industry to drive global competitiveness but, more importantly, bring
hope to Europeans suffering from health conditions.
AbbVie SA/NV – BE-ABBV-250177 (V1.0) – December 2025
--------------------------------------------------------------------------------
[1] The Parliament Magazine,
https://www.theparliamentmagazine.eu/partner/article/unmet-medical-needs-and-migraine-assessing-the-added-value-for-patients-and-society,
Last accessed December 2025.
[2] The Migraine Trust;
https://migrainetrust.org/understand-migraine/types-of-migraine/chronic-migraine/,
Last accessed December 2025.
[3] Steiner TJ, et al; Lifting The Burden: the Global Campaign against Headache.
Migraine remains second among the world’s causes of disability, and first among
young women: findings from GBD2019. J Headache Pain. 2020 Dec 2;21(1):137
[4] Coppola G, Brown JD, Mercadante AR, Drakeley S, Sternbach N, Jenkins A,
Blakeman KH, Gendolla A. The epidemiology and unmet need of migraine in five
european countries: results from the national health and wellness survey. BMC
Public Health. 2025 Jan 21;25(1):254. doi: 10.1186/s12889-024-21244-8.
[5] WifOR. Calculating the Socioeconomic Burden of Migraine: The Case of 6
European Countries. Available at:
[https://www.wifor.com/en/download/the-socioeconomic-burden-of-migraine-the-case-of-6-european-countries/?wpdmdl=358249&refresh=687823f915e751752703993].
Accessed June 2025.
[6] Seddik AH, Schiener C, Ostwald DA, Schramm S, Huels J, Katsarava Z. Social
Impact of Prophylactic Migraine Treatments in Germany: A State-Transition and
Open Cohort Approach. Value Health. 2021 Oct;24(10):1446-1453. doi:
10.1016/j.jval.2021.04.1281
[7] Moisset X, Demarquay G, et al., Migraine treatment: Position paper of the
French Headache Society. Rev Neurol (Paris). 2024 Dec;180(10):1087-1099. doi:
10.1016/j.neurol.2024.09.008.
[8] The Economist,
https://www.economist.com/china/2025/11/23/chinese-pharma-is-on-the-cusp-of-going-global,
Last accessed December 2025.
[9] Crescioli S, Reichert JM. Innovative antibody therapeutic development in
China compared with the USA and Europe. Nat Rev Drug Discov. Published online
November 7, 2025.
[10] Manzano A., Svedman C., Hofmarcher T., Wilking N.. Comparator Report on
Cancer in Europe 2025 – Disease Burden, Costs and Access to Medicines and
Molecular Diagnostics. EFPIA, 2025. [IHE REPORT 2025:2, page 20]
[11] Armstrong GB, Graham H, Cheung A, Montaseri H, Burley GA, Karagiannis SN,
Rattray Z. Antibody-drug conjugates as multimodal therapies against
hard-to-treat cancers. Adv Drug Deliv Rev. 2025 Sep;224:115648. doi:
10.1016/j.addr.2025.115648. Epub 2025 Jul 11. PMID: 40653109..
[12] Narayana, R.V.L., Gupta, R. Exploring the therapeutic use and outcome of
antibody-drug conjugates in ovarian cancer treatment. Oncogene 44, 2343–2356
(2025). https://doi.org/10.1038/s41388-025-03448-3
[13] Coleman, N., Yap, T.A., Heymach, J.V. et al. Antibody-drug conjugates in
lung cancer: dawn of a new era?. npj Precis. Onc. 7, 5 (2023).
https://doi.org/10.1038/s41698-022-00338-9
[14] Wang Y, Lu K, Xu Y, Xu S, Chu H, Fang X. Antibody-drug conjugates as
immuno-oncology agents in colorectal cancer: targets, payloads, and therapeutic
synergies. Front Immunol. 2025 Nov 3;16:1678907. doi:
10.3389/fimmu.2025.1678907. PMID: 41256852; PMCID: PMC12620403.
[15] EFPIA, Improving EU Clinical Trials: Proposals to Overcome Current
Challenges and Strengthen the Ecosystem,
efpias-list-of-proposals-clinical-trials-15-apr-2025.pdf, Last accessed December
2025.
[16] The EU General Pharmaceutical Legislation & Clawbacks, © Vital
Transformation BVBA, 2024.
OTTAWA — Canada’s ambassador to the United States and its chief trade negotiator
with the Trump administration said she is stepping down in the new year.
“I have advised Prime Minister [Mark] Carney that I will be ending my tenure in
the United States in the New Year. It has been the greatest privilege of my
professional life to have served and represented Canada and Canadians during
this critical period in Canada-U.S. relations,” Kirsten Hillman said in her
resignation letter posted on X on Tuesday afternoon.
Hillman’s departure comes after eight years in Washington, as the Carney
government navigates President Donald Trump’s abrupt cancellation of bilateral
trade talks in October and prepares for next year’s review of the United
States-Mexico-Canada Agreement.
Hillman, a trade lawyer and career diplomat, was a key member of the Canadian
negotiating team that faced off against Trump’s first administration during the
talks that led to the creation of the USMCA.
“While there will never be a perfect time to leave, this is the right time to
put a team in place that will see the CUSMA Review through to its conclusion,”
she wrote, using the Canadian acronym for the new North American trade pact.
Despite the current trade disruptions and the aftermath of navigating the
Covid-19 pandemic, Hillman said her greatest accomplishment was working to
secure the release of two Canadian men who spent more than 1,000 days
arbitrarily imprisoned in China from 2018 to 2021.
“In a relationship as deep and complex as ours, pressing and consequential
issues arise almost daily,” she wrote. “Yet none was more personal to me than
the hundreds of hours I spent with U.S. and Chinese counterparts working for the
release of Michael Kovrig and Michael Spavor.”