A clash between Poland’s right-wing president and its centrist ruling coalition over the European Union’s flagship social media law is putting the country further at risk of multimillion euro fines from Brussels. President Karol Nawrocki is holding up a bill that would implement the EU’s Digital Services Act, a tech law that allows regulators to police how social media firms moderate content. Nawrocki, an ally of U.S. President Donald Trump, said in a statement that the law would “give control of content on the internet to officials subordinate to the government, not to independent courts.” The government coalition led by Prime Minister Donald Tusk, Nawrocki’s rival, warned this further exposed them to the risk of EU fines as high as €9.5 million. Deputy Digital Minister Dariusz Standerski said in a TV interview that, “since the president decided to veto this law, I’m assuming he is also willing to have these costs [of a potential fine] charged to the budget of the President’s Office.” Nawrocki’s refusal to sign the bill brings back bad memories of Warsaw’s years-long clash with Brussels over the rule of law, a conflict that began when Nawrocki’s Law and Justice party rose to power in 2015 and started reforming the country’s courts and regulators. The EU imposed €320 million in penalties on Poland from 2021-2023. Warsaw was already in a fight with the Commission over its slow implementation of the tech rulebook since 2024, when the EU executive put Poland on notice for delaying the law’s implementation and for not designating a responsible authority. In May last year Brussels took Warsaw to court over the issue. If the EU imposes new fines over the rollout of digital rules, it would “reignite debates reminiscent of the rule-of-law mechanism and frozen funds disputes,” said Jakub Szymik, founder of Warsaw-based non-profit watchdog group CEE Digital Democracy Watch. Failure to implement the tech law could in the long run even lead to fines and penalties accruing over time, as happened when Warsaw refused to reform its courts during the earlier rule of law crisis. The European Commission said in a statement that it “will not comment on national legislative procedures.” It added that “implementing the [Digital Services Act] into national law is essential to allow users in Poland to benefit from the same DSA rights.” “This is why we have an ongoing infringement procedure against Poland” for its “failure to designate and empower” a responsible authority, the statement said. Under the tech platforms law, countries were supposed to designate a national authority to oversee the rules by February 2024. Poland is the only EU country that hasn’t moved to at least formally agree on which regulator that should be. The European Commission is the chief regulator for a group of very large online platforms, including Elon Musk’s X, Meta’s Facebook and Instagram, Google’s YouTube, Chinese-owned TikTok and Shein and others. But national governments have the power to enforce the law on smaller platforms and certify third parties for dispute resolution, among other things. National laws allow users to exercise their rights to appeal to online platforms and challenge decisions. When blocking the bill last Friday, Nawrocki said a new version could be ready within two months. But that was “very unlikely … given that work on the current version has been ongoing for nearly two years and no concrete alternative has been presented” by the president, said Szymik, the NGO official. The Digital Services Act has become a flashpoint in the political fight between Brussels and Washington over how to police online platforms. The EU imposed its first-ever fine under the law on X in December, prompting the U.S. administration to sanction former EU Commissioner Thierry Breton and four other Europeans. Nawrocki last week likened the law to “the construction of the Ministry of Truth from George Orwell’s novel 1984,” a criticism that echoed claims by Trump and his top MAGA officials that the law censored conservatives and right-wingers. Bartosz Brzeziński contributed reporting.

WARSAW — Poland’s nationalist President Karol Nawrocki on Friday sided with his ally U.S. President Donald Trump to veto legislation on enforcing the EU’s social media law, which is hated by the American administration. Trump and his top MAGA officials condemn the EU’s Digital Services Act — which seeks to force big platforms like Elon Musk’s X, Facebook, Instagram to moderate content — as a form of “Orwellian” censorship against conservative and right-wingers. The presidential veto stops national regulators in Warsaw from implementing the DSA and sets Nawrocki up for a a clash with centrist pro-EU Prime Minister Donald Tusk. Tusk’s parliamentary majority passed the legislation introducing the DSA in Poland. Nawrocki argued that while the bill’s stated aim of protecting citizens — particularly minors — was legitimate, the Polish bill would grant excessive power to government officials over online content, resulting in “administrative censorship.”  “I want this to be stated clearly: a situation in which what is allowed on the internet is decided by an official subordinate to the government resembles the construction of the Ministry of Truth from George Orwell’s novel 1984,” Nawrocki said in a statement — echoing the U.S.’s stance on the law. Nawrocki also warned that allowing authorities to decide what constitutes truth or disinformation would erode freedom of expression “step by step.” He called for a revised draft that would protect children while ensuring that disputes over online speech are settled by independent courts. Deputy Prime Minister and Digital Affairs Minister Krzysztof Gawkowski dismissed Nawrocki’s position, accusing the president of undermining online safety and siding with digital platforms.  “The president has vetoed online safety,” Gawkowski told a press briefing Friday afternoon, arguing the law would have protected children from predators, families from disinformation and users from opaque algorithms.  The minister also rejected Nawrocki’s Orwellian comparisons, saying the bill explicitly relied on ordinary courts rather than officials to rule on online content. Gawkowski said Poland is now among the few EU countries without national legislation enabling effective enforcement of the DSA and pledged that the government would continue to pursue new rules. The clash comes as enforcement of the social media law has become a flashpoint in EU-U.S. relations.  Brussels has already fined Elon Musk’s X €120 million for breaching the law, prompting a furious response from Washington, including travel bans imposed by the Trump administration on former EU Commissioner Thierry Breton, an architect of the tech law, and four disinformation experts. The DSA allows fines of up to 6 percent of a company’s global revenue and, as a measure of last resort, temporary bans on platforms. Earlier this week, the European Commission expanded its investigation into X’s AI service Grok after it started posting a wave of non-consensual sexualized pictures of people in response to X users’ requests. The European Commission’s digital spokesperson Thomas Regnier said the EU executive would not comment on national legislative procedures. “Implementing the DSA into national law is essential to allow users in Poland to benefit from the same DSA rights, such as challenging platforms if their content is deleted or their account suspended,” he said. “This is why we have an ongoing infringement procedure against Poland. We have referred Poland to the Court of Justice of the EU for failure to designate and empower the Digital Services Coordinator,” in May 2025, Regnier added. Gawkowski said that the government would make a quick decision on what to do next with the vetoed bill but declined to offer specifics on what a new bill would look like were it to be submitted to parliament again. Tusk four-party coalition does not have enough votes in parliament to override Nawrocki’s vetoes. That has created a political deadlock over key legislation efforts by the government, which stands for reelection next year. Nawrocki, meanwhile, is aiming to help the Law and Justice (PiS) political party he’s aligned with to retake power after losing to Tusk in 2023. Mathieu Pollet contributed reporting.

The first American pope is on a collision course with U.S. President Donald Trump. The latest fault line between the Vatican and the White House emerged on Sunday. Shortly after Trump suggested his administration could “run” Venezuela, the Chicago-born Pope Leo XIV appeared at the Angelus window overlooking St. Peter’s Square to deliver an address calling for the safeguarding of the “country’s sovereignty.” For MAGA-aligned conservatives, this is now part of an unwelcome pattern. While Leo is less combative in tone toward Trump than his predecessor Francis, his priorities are rekindling familiar battles in the culture war with the U.S. administration on topics such as immigration and deportations, LGBTQ+ rights and climate change. As the leader of a global community of 1.4 billion Catholics, Leo has a rare position of influence to challenge Trump’s policies, and the U.S. president has to tread with uncustomary caution in confronting him. Trump traditionally relishes blasting his critics with invective but has been unusually restrained in response to Leo’s criticism, in part because he counts a large number of Catholics among his core electorate. “[Leo] is not looking for a fight like Francis, who sometimes enjoyed a fight,” said Chris White, author of “Pope Leo XIV: Inside the Conclave and the Dawn of a New Papacy.” “But while different in style, he is clearly a continuation of Francis in substance. Initially there was a wait-and-see approach, but for many MAGA Catholics, Leo challenges core beliefs.” In recent months, migration has become the main combat zone between the liberal pope and U.S. conservatives. Leo called on his senior clergy to speak out on the need to protect vulnerable migrants, and U.S. bishops denounced the “dehumanizing rhetoric and violence” leveled at people targeted by Trump’s deportation policies. Leo later went public with an appeal that migrants in the U.S. be treated “humanely” and “with dignity.” Leo’s support emboldened Florida bishops to call for a Christmas reprieve from Immigration and Customs Enforcement raids. “Don’t be the Grinch that stole Christmas,” said Archbishop Thomas Wenski of Miami. As if evidence were needed of America’s polarization on this topic, however, the Department of Homeland Security described their arrests as a “Christmas gift to Americans.” Leo also conspicuously removed Cardinal Timothy Dolan, Trump’s preferred candidate for pope and a favorite on the conservative Fox News channel, from a key post as archbishop of New York, replacing him with a bishop known for pro-migrant views. This cuts to the heart of the moral dilemma for a divided U.S. Catholic community. For Trump, Catholics are hardly a sideshow as they constitute 22 percent of his electorate, according to a poll by the Pew Research Center. While the pope appeals to liberal causes, however, many MAGA Catholics take a far stricter line on topics such as migration, sexuality and climate change. To his critics from the conservative Catholic MAGA camp, such as Trump’s former strategist Steve Bannon, the pope is anathema. U.S.-born Pope Leo XIV appeared at the Angelus window overlooking St. Peter’s Square to deliver an address calling for the safeguarding of Venezuela’s “sovereignty.” | Stefano Costantino/SOPA Images/LightRocket via Getty Images Last year the pope blessed a chunk of ice from Greenland and criticized political leaders who ignore climate change. He said supporters of the death penalty could not credibly claim to be pro-life, and argued that Christians and Muslims could be friends. He has also signaled a more tolerant posture toward LGBTQ+ Catholics, permitting an LGBTQ+ pilgrimage to St Peter’s Basilica. Small wonder, then, that Trump confidante and conspiracy theorist Laura Loomer branded Leo the “woke Marxist pope.” Trump-aligned Catholic conservatives have denounced him as “secularist,” “globalist” and even “apostate.” Far-right pundit Jack Posobiec has called him “anti-Trump.” “Some popes are a blessing. Some popes are a penance,” Posobiec wrote on X. PONTIFF FROM CHICAGO There were early hopes that Leo might build bridges with U.S. hardliners. He’s an American, after all: He wears an Apple watch and follows baseball, and American Catholics can hardly dismiss him as as foreign. The Argentine Francis, by contrast, was often portrayed by critics as anti-American and shaped by the politics of poorer nations. Leo can’t be waved away so easily. Early in his papacy, Leo also showed signs he was keen to steady the church after years of internal conflict, and threw some bones to conservatives such as allowing a Latin Mass in St. Peter’s Basilica and wearing more ornate papal vestments. But the traditionalists were not reassured. Benjamin Harnwell, the Vatican correspondent for the MAGA-aligned War Room podcast, said conservatives were immediately skeptical of Leo. “From day one, we have been telling our base to be wary: Do not be deceived,” he said. Leo, Harnwell added, is “fully signed up to Francis’ agenda … but [is] more strategic and intelligent.” After the conclave that appointed Leo, former Trump strategist Bannon told POLITICO that Leo’s election was “the worst choice for MAGA Catholics” and “an anti-Trump vote by the globalists of the Curia.” Trump had a long-running feud with Francis, who condemned the U.S. president’s border wall and criticized his migration policies. Francis appeared to enjoy that sparring, but Leo is a very different character. More retiring by nature, he shies away from confrontation. But his resolve in defending what he sees as non-negotiable moral principles, particularly the protection of the weak, is increasingly colliding with the core assumptions of Trumpism. Trump loomed large during the conclave, with an AI-generated video depicting himself as pope. The gesture was seen by some Vatican insiders as a “mafia-style” warning to elect someone who would not criticize him, Vatican-watcher Elisabetta Piqué wrote in a new book “The Election of Pope Leo XIV: The Last Surprise of Pope Francis.” NOT PERSONAL Leo was not chosen expressly as an anti-Trump figure, according to a Vatican official. Rather, his nationality was likely seen by some cardinals as “reassuring,” suggesting he would be accountable and transparent in governance and finances. But while Leo does not seem to be actively seeking a confrontation with Trump, the world views of the two men seem incompatible. “He will avoid personalizing,” said the same Vatican official. “He will state church teaching, not in reaction to Trump, but as things he would say anyway.” Despite the attacks on Leo from his allies, Trump himself has also appeared wary of a direct showdown. When asked about the pope in a POLITICO interview, Trump was more keen to discuss meeting the pontiff’s brother in Florida, whom he described as “serious MAGA.” When pressed on whether he would meet the pope himself, he finally replied: “Sure, I will. Why not?” The potential for conflict will come into sharper focus as Leo hosts a summit called an extraordinary consistory this week, the first of its kind since 2014, which is expected to provide a blueprint for the future direction of the church. His first publication on social issues, such as inequality and migration, is also expected in the next few months. “He will use [the summit] to talk about what he sees as the future,” said a diplomat posted to the Vatican. “It will give his collaborators a sense of where he is going. He could use it as a sounding board, or ask them to suggest solutions.” It’s safe to assume Leo won’t be unveiling a MAGA-aligned agenda. The ultimate balance of power may also favor the pope. Trump must contend with elections and political clocks; Leo, elected for life, does not. At 70, and as a tennis player in good health, Leo appears positioned to shape Catholic politics well after Trump’s moment has passed. “He is not in a hurry,” the Vatican official said. “Time is on his side.”

LONDON — Choosing your Brexit camp was once the preserve of Britain’s Tories. Now Labour is joining in the fun.  Six years after Britain left the EU, a host of loose — and mostly overlapping — groupings in the U.K.’s ruling party are thinking about precisely how close to try to get to the bloc. They range from customs union enthusiasts to outright skeptics — with plenty of shades of grey in between. There’s a political urgency to all of this too: with Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. “The more the screws and pressure have been on Keir around leadership, the more we’ve seen that play to the base,” said one Labour MP, granted anonymity like others quoted in this piece to speak frankly. Indeed, Starmer started the new year explicitly talking up closer alignment with the European Union’s single market. At face value, nothing has changed: Starmer’s comments reflect his existing policy of a “reset” with Brussels. His manifesto red lines on not rejoining the customs union or single market remain. Most of his MPs care more about aligning than how to get there. In short, this is not like the Tory wars of the late 2010s. Well, not yet. POLITICO sketches out Labour’s nascent Brexit tribes. THE CUSTOMS UNIONISTS  It all started with a Christmas walk. Health Secretary Wes Streeting told an interviewer he desires a “deeper trading relationship” with the EU — widely interpreted as hinting at joining a customs union. This had been a whispered topic in Labour circles for a while, discussed privately by figures including Starmer’s economic adviser Minouche Shafik. Deputy Prime Minister David Lammy said last month that rejoining a customs union is not “currently” government policy — which some took as a hint that the position could shift. But Streeting’s leadership ambitions (he denies plotting for the top job) and his willingness to describe Brexit as a problem gave his comments an elevated status among Labour Europhiles.  “This has really come from Wes’s leadership camp,” said one person who talks regularly to No. 10 Downing Street. Naomi Smith, CEO of the pro-EU pressure group Best for Britain, added any Labour leadership contest will be dominated by the Brexit question. MPs and members who would vote in a race “are even further ahead than the public average on all of those issues relating to Europe,” she argued. Joining a customs union would in theory allow smoother trade without returning to free movement of people. But Labour critics of a customs union policy — including Starmer himself — argue it is a non-starter because it would mean tearing up post-Brexit agreements with other countries such as India and the U.S. “It’s just absolutely nonsense,” said a second Labour MP.    Keir Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer. | Colin McPherson/Getty Images And since Streeting denies plotting and did not even mention a customs union by name, the identities of the players pushing for one are understandably murky beyond the 13 Labour MPs who backed a Liberal Democrat bill last month requiring the government to begin negotiations on joining a bespoke customs union with the EU. One senior Labour official said “hardly any” MPs back it, while a minister said there was no organized group, only a vague idea. “There are people who don’t really know what it is, but realize Brexit has been painful and the economy needs a stimulus,” they said. “And there are people who do know what this means and they effectively want to rejoin. For people who know about trade, this is an absolute non-starter.” Anand Menon, director of the UK in a Changing Europe think tank, said a full rejoining of the EU customs union would mean negotiating round a suite of “add-ons” — and no nations have secured this without also being in the EU single market. (Turkey has a customs union with the EU, but does not benefit from the EU’s wider trade agreements.) “I’m not convinced the customs union works without the single market,” Menon added.  Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer, a person with knowledge of his thinking said. “When you read anything from any economically literate commentator, the customs union is not their go-to,” added the senior Labour official quoted above. “Keir is really strong on it. He fully believes it isn’t a viable route in the national interest or economic interest.” THE SINGLE MARKETEERS (A.K.A. THE GOVERNMENT) Starmer and his allies, then, want to park the customs union and get closer to the single market.  Paymaster General Nick Thomas-Symonds has long led negotiations along these lines through Labour’s existing EU “reset.” He and Starmer recently discussed post-Brexit policy on a walk through the grounds of the PM’s country retreat, Chequers. Working on the detail with Thomas-Symonds is Michael Ellam, the former director of communications for ex-PM Gordon Brown, now a senior civil servant in the Cabinet Office. Ellam is “a really highly regarded, serious guy” and attends regular meetings with Brussels officials, said a second person who speaks regularly to No. 10.   A bill is due to be introduced to the U.K. parliament by summer which will allow “dynamic” alignment with new EU laws in areas of agreement. Two people with knowledge of his role said the bill will be steered through parliament by Cabinet Office Minister Chris Ward, Starmer’s former aide and close ally, who was by his side when Starmer was shadow Brexit secretary during the “Brexit wars” of the late 2010s. Starmer himself talked up this approach in a rare long-form interview this week with BBC host Laura Kuenssberg, saying: “We are better looking to the single market rather than the customs union for our further alignment.” While the PM’s allies insist he simply answered a question, some of his MPs spy a need to seize back the pro-EU narrative. The second person who talks regularly to No. 10 argued a “relatively small … factional leadership challenge group around Wes” is pushing ideas around a customs union, while Starmer wants to “not match that but bypass it, and say actually, we’re doing something more practical and potentially bigger.”  A third Labour MP was blunter about No. 10’s messaging: “They’re terrified and they’re worrying about an internal leadership challenge.” Starmer’s allies argue that their approach is pragmatic and recognizes what the EU will actually be willing to accept. Christabel Cooper, director of research at the pro-Labour think tank Labour Together — which plans polling and focus groups in the coming months to test public opinion on the issue — said: “We’ve talked to a few trade experts and economists, and actually the customs union is not all that helpful. To get a bigger bang for your buck, you do need to go down more of a single market alignment route.”  Stella Creasy argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. | Nicola Tree/Getty Images Nick Harvey, CEO of the pro-EU pressure group European Movement UK, concurred: “The fact that they’re now talking about a fuller alignment towards the single market is very good news, and shows that to make progress economically and to make progress politically, they simply have to do this.”  But critics point out there are still big questions about what alignment will look like — or more importantly, what the EU will go for.  The bill will include areas such as food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, but talks on all of these remain ongoing. Negotiations to join the EU’s defense framework, SAFE, stalled over the costs to Britain. Menon said: “I just don’t see what [Starmer] is spelling out being practically possible. Even at the highest levels there has been, under the Labour Party, quite a degree of ignorance, I think, about how the EU works and what the EU wants.   “I’ve heard Labour MPs say, well, they’ve got a veterinary deal with New Zealand, so how hard can it be? And you want to say, I don’t know if you’ve noticed, but New Zealand doesn’t have a land border with the EU.”  THE SWISS BANKERS Then there are Europhile MPs, peers and campaigners who back aligning with the single market — but going much further than Starmer.  For some this takes the form of a “Swiss-style” deal, which would allow single market access for some sectors without rejoining the customs union.   This would plough through Starmer’s red lines by reintroducing EU freedom of movement, along with substantial payments to Brussels.  But Stella Creasy, chair of the Labour Movement for Europe (LME), argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. She said: “If you could get a Swiss-style deal and put it in the manifesto … that would be enough for businesses to invest.”  Creasy said LME has around 150 MPs as members and holds regular briefings for them. While few Labour MPs back a Swiss deal — and various colleagues see Creasy as an outlier — she said MPs and peers, including herself, plan to put forward amendments to the dynamic alignment bill when it goes through parliament.  Tom Baldwin, Starmer’s biographer and the former communications director of the People’s Vote campaign (which called for a second referendum on Brexit), also suggests Labour could go further in 2029. “Keir Starmer’s comments at the weekend about aligning with — and gaining access to — the single market open up a whole range of possibilities,” he said. “At the low end, this is a pragmatic choice by a PM who doesn’t want to be forced to choose between Europe and America.   “At the upper end, it suggests Labour may seek a second term mandate at the next election by which the U.K. would get very close to rejoining the single market. That would be worth a lot more in terms of economic growth and national prosperity than the customs union deal favoured by the Lib Dems.”  A third person who speaks regularly to No. 10 called it a “boil the frog strategy.” They added: “You get closer and closer and then maybe … you go into the election saying ‘we’ll try to negotiate something more single markety or customs uniony.’”  THE REJOINERS? Labour’s political enemies (and some of its supporters) argue this could all lead even further — to rejoining the EU one day. “Genuinely, I am not advocating rejoin now in any sense because it’s a 10-year process,” said Creasy, who is about as Europhile as they come in Labour. “Our European counterparts would say ‘hang on a minute, could you actually win a referendum, given [Reform UK Leader and Brexiteer Nigel] Farage is doing so well?’”  With Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. | Tom Nicholson/Getty Images Simon Opher, an MP and member of the Mainstream Labour group closely aligned with Burnham, said rejoining was “probably for a future generation” as “the difficulty is, would they want us back?” But look into the soul of many Labour politicians, and they would love to still be in the bloc — even if they insist rejoining is not on the table now. Andy Burnham — the Greater Manchester mayor who has flirted with the leadership — remarked last year that he would like to rejoin the EU in his lifetime (he’s 56). London Mayor Sadiq Khan said “in the medium to long term, yes, of course, I would like to see us rejoining.” In the meantime Khan backs membership of the single market and customs union, which would still go far beyond No. 10’s red lines.  THE ISSUES-LED MPS Then there are the disparate — yet overlapping — groups of MPs whose views on Europe are guided by their politics, their constituencies or their professional interests. To Starmer’s left, backbench rebels including Richard Burgon and Dawn Butler backed the push toward a customs union by the opposition Lib Dems. The members of the left-wing Socialist Campaign Group frame their argument around fears Labour will lose voters to other progressive parties, namely the Lib Dems, Greens and SNP, if they fail to show adequate bonds with Europe. Some other, more centrist MPs fear similar. Labour MPs with a military background or in military-heavy seats also want the U.K. and EU to cooperate further. London MP Calvin Bailey, who spent more than two decades in the Royal Air Force, endorsed closer security relations between Britain and France through greater intelligence sharing and possibly permanent infrastructure. Alex Baker, whose Aldershot constituency is known as the home of the British Army, backed British involvement in a global Defense, Security and Resilience Bank, arguing it could be key to a U.K.-EU Defence and Security Pact. The government opted against joining such a scheme.   Parliamentarians keen for young people to bag more traveling rights were buoyed by a breakthrough on Erasmus+ membership for British students at the end of last year. More than 60 Labour MPs earlier signed a letter calling for a youth mobility scheme allowing 18 to 30-year-olds expanded travel opportunities on time limited visas. It was organized by Andrew Lewin, the Welywn Hatfield MP, and signatories included future Home Office Minister Mike Tapp (then a backbencher).  Labour also has an influential group of rural MPs, most elected in 2024, who are keen to boost cooperation and cut red tape for farmers. Rural MP Steve Witherden, on the party’s left, said: “Three quarters of Welsh food and drink exports go straight to the EU … regulatory alignment is a top priority for rural Labour MPs. Success here could point the way towards closer ties with Europe in other sectors.”  THE NOT-SO-SECRET EUROPHILES (A.K.A. ALL OF THE ABOVE) Many Labour figures argue that all of the above are actually just one mega-group — Labour MPs who want to be closer to Brussels, regardless of the mechanism. Menon agreed Labour camps are not formalized because most Labour MPs agree on working closely with Brussels. “I think it’s a mishmash,” he said. But he added: “I think these tribes will emerge or develop because there’s an intra-party fight looming, and Brexit is one of the issues people use to signal where they stand.” A fourth Labour MP agreed: “I didn’t think there was much of a distinction between the camps of people who want to get closer to the EU. The first I heard of that was over the weekend.”  The senior Labour official quoted above added: “I don’t think it cuts across tribes in such a clear way … a broader group of people just want us to move faster in terms of closeness into the EU, in terms of a whole load of things. I don’t think it fits neatly.” For years MPs were bound by a strategy of talking little about Brexit because it was so divisive with Labour’s voter base. That shifted over 2025. Labour advisers were buoyed by polls showing a rise in “Bregret” among some who voted for Brexit in 2016, as well as changing demographics (bluntly, young voters come of age while older voters die).  No. 10 aides also noted last summer that Farage, the leader of the right-wing populist party Reform UK, was making Brexit less central to his campaigning. Some aides (though others dispute this) credit individual advisers such as Tim Allan, No. 10’s director of communications, as helping a more openly EU-friendly media strategy into being. For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. | Jakub Porzycki/Getty Images THE BLUE LABOUR HOLDOUTS  Not everyone in Labour wants to hug Brussels tight.  A small but significant rump of Labour MPs, largely from the socially conservative Blue Labour tribe, is anxious that pursuing closer ties could be seen as a rejection of the Brexit referendum — and a betrayal of voters in Leave-backing seats who are looking to Reform. One of them, Liverpool MP Dan Carden, said the failure of both London and Brussels to strike a recent deal on defense funding, even amid threats from Russia, showed Brussels is not serious.   “Any Labour MP who thinks that the U.K. can get closer to the single market or the customs union without giving up freedoms and taking instruction from an EU that we’re not a part of is living in cloud cuckoo land,” he said. A similar skepticism of the EU’s authority is echoed by the Tony Blair Institute (TBI), led by one of the most pro-European prime ministers in Britain’s history. The TBI has been meeting politicians in Brussels and published a paper translated into French, German and Italian in a bid to shape the EU’s future from within.   Ryan Wain, the TBI’s senior director for policy and politics, argued: “We live in a G2 world where there are two superpowers, China and the U.S. By the middle of this century there will likely be three, with India. To me, it’s just abysmal that Europe isn’t mentioned in that at all. It has massive potential to adapt and reclaim its influence, but that opportunity needs to be unlocked.”  Such holdouts enjoy a strange alliance with left-wing Euroskeptics (“Lexiteers”), who believe the EU does not have the interests of workers at its heart. But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. At the same time many Labour MPs in Leave-voting areas, who opposed efforts to stop Brexit in the late 2010s, now support closer alignment with Brussels to help their local car and chemical industries. As such, there are now 20 or fewer MPs holding their noses on closer alignment. Just three Labour MPs, including fellow Blue Labour supporter Jonathan Brash, voted against a bill supporting a customs union proposed by the centrist, pro-Europe Lib Dems last month.  WHERE WILL IT ALL END?  For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. Most MPs agree on closer alignment with the EU; the question is how they get there.  Even so, Menon has a warning from the last Brexit wars. Back in the late 2010s, Conservative MPs would jostle to set out their positions — workable or otherwise. The crowded field just made negotiations with Brussels harder. “We end up with absolutely batshit stupid positions when viewed from the EU,” said Menon, “because they’re being derived as a function of the need to position yourself in a British political party.” But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. | Seiya Tanase/Getty Images The saving grace could be that most Labour MPs are united by a deeper gut feeling about the EU — one that, Baldwin argues, is reflected in Starmer himself. The PM’s biographer said: “At heart, Keir Starmer is an outward-looking internationalist whose pro-European beliefs are derived from what he calls the ‘blood-bond’ of 1945 and shared values, rather than the more transactional trade benefits of 1973,” when Britain joined the European Economic Community.  All that remains is to turn a “blood-bond” into hard policy. Simple, right?

Britain’s biggest trade union body has called on the Labour government to consider rejoining an EU customs union, reopening a core Brexit fault line as the party grapples with weak growth and rising pressure from its traditional base. In an interview with the Guardian, Trades Union Congress (TUC) General Secretary Paul Nowak said Labour should seek the closest possible economic relationship with the EU to ease trade friction and support household incomes. “The government needs to do whatever it can to build the closest possible positive working relationship with Europe economically and politically … up to and including the customs union,” Nowak said. The U.K. left the EU customs union after the 2016 Brexit referendum, formally exiting the bloc in January 2020 under then-Prime Minister Boris Johnson. Britain remained aligned with EU trade rules during a transition period before fully leaving the customs union on Jan. 1, 2021, when the EU-U.K. Trade and Cooperation Agreement took effect.  The move restored Britain’s ability to strike independent trade deals but introduced customs checks, rules-of-origin requirements and new barriers for exporters. Prime Minister Keir Starmer has so far ruled out rejoining the customs union, framing it as a red line while promising a broader “reset” with Brussels. “We are getting a closer relationship with the EU on a number of fronts, including on trade and the economy,” Starmer told MPs earlier this month, adding: “We have clear red lines in relation to the single market and the customs union.”

BRUSSELS — If you ordered Christmas presents from a Chinese web shop, they are likely to be toxic, unsafe or undervalued. Or all of the above. The EU is trying to do something about the flood but is tripping over itself 27 times to get there. “It’s absolutely crazy…” sighs one EU official. The official, granted anonymity to discuss preparations to tackle the problem, said that at some airport freight hubs, an estimated 80 percent of such inbound packages don’t comply with EU safety rules. The numbers are dizzying. In 2024, 4.6 billion small packages with contents worth less than €150 entered the EU. That all-time record was broken in September of this year. Because these individual air-mail packages replace whole containers shipping the same product, the workload for customs officials has increased exponentially over recent years. Non-compliant, cheaply-made products — such as dangerous toys or kitchen items — bring health risks. And a growing pile of garbage. It’s a problem for everyone along the chain. Customs officers can’t keep up; buyers end up with useless products; children are put at risk; and EU makers of similar items are undercut by unfair and untaxed competition. With the situation on the ground becoming unmanageable, the EU agreed this month to charge a €3 fixed fee on all such packages. This will effectively remove a tax-free exemption on packages worth €150 — but only from July of next year. It’s a crude, and temporary, fix because existing customs IT systems can’t yet tax items according to their actual value. ALL I WANT … Which is why all European lawmaker Anna Cavazzini wants for next year’s holiday season is “better rules.” Cavazzini is a key player in a push to harmonize the EU’s 27 national customs regimes. A proposed reform, now being discussed by the EU institutions, would create a central data hub and an EU Customs Agency, or EUCA, with oversight powers. As is so often the case in the EU, though, the customs reform is only progressing slowly. The EUCA will be operational only from late 2026. And the data hub probably won’t be up and running until the next decade. “We need a fundamental discussion on the Europeanization of customs,” Cavazzini told POLITICO. As chair of the European Parliament’s Internal Market and Consumer Protection Committee (IMCO), the lawmaker from the German Greens has been pushing the Council, the EU’s intergovernmental branch, to allow the customs reform to make the bloc’s single market more of a unified reality. European lawmaker Anna Cavazzini. | Martin Bertrand and Hans Lucas/AFP via Getty Images EU capitals worry — as always — about handing over too much power to the eurocrats in Brussels. But the main outstanding issue where negotiators disagree is more prosaic: it’s about whether the law should include an explicit list of offences, such making false declarations to customs officers. While the last round of negotiations in early December brought some progress on other areas, the unsolved penalties question has kicked the reform into 2026. With the millions of boxes, packages and parcels inbound, regardless, individual countries are also considering handling fees, beside the €3 tax that all have agreed on. France has already proposed a solo fee with revenues flowing into its national budget, and Belgium and the Netherlands will probably follow suit. RACE TO THE BOTTOM Customs reform is what’s needed, not another round of fragmented fees and a race to the bottom, said Dirk Gotink, the European Parliament’s lead negotiator on the customs reform. “Right now, the ideas launched by France and others are not meant to stem the flow of packages. They are just meant to earn money,” the Dutch center-right lawmaker told a recent briefing. To inspect the myriad ways in which they are a risk, Gotink’s team bought a few items from dubious-looking web shops. “With this one, the eyes are coming off right away,” he warned before handing a plush toy to a reporter. The reporter almost succeeded in separating the head from the creature’s body without too much effort. And thin, plastic eyes trailed the toy as it was passed around the room. “On the box it says it’s meant for people over 15 years old…” one reporter commented. But the cute creature is clearly targeted at far younger audiences. Adding to the craze, K-pop stars excitedly unbox new characters in online promotional videos. The troubles aren’t limited to toys. A jar of cosmetics showed by Gotink had inscriptions on its label that didn’t resemble any known alphabet. Individual products aside, the deluge of cheap merchandise also creates unfair competition, said Cavazzini: “A lot of European companies of course also fulfill the environmental obligations and the imports don’t,” she said. “This is also creating a huge unlevel playing field.” After the holidays, Gotink and Cavazzini will pick up negotiations on the customs reform with Cyprus, which from Jan. 1 takes over the rotating presidency of the Council of the EU from Denmark. “This file will be a priority during our presidency,” a Cypriot official told POLITICO, adding that Denmark had completed most of the technical work. “We aim to conclude this important file, hoping to reach a deal with the Parliament during the first months of the Cyprus Presidency.” Despite the delays, an EU diplomat working on customs policy told POLITICO that the current speed of the policy process is unprecedented: “This huge ecommerce pressure has really made all the difference. A year ago, this would have been unimaginable.”

BRUSSELS — Cheap packages entering the EU will be charged a tax of €3 per item from next July, the bloc’s 27 finance ministers agreed on Friday. The deal effectively ends the tax-free status for packages worth less than €150. The flat tax will apply for each different type of item in a package. If one package contains 10 plushy toys, the duty is applied once. But if the shipment also contains a charging cable, another €3 is added. The flood of untaxed and often unsafe goods prompted the European Commission to propose a temporary solution for the packages under €150 a month ago. This “de minimis” rule allows exporters like Shein and Temu to send products directly to consumers, often bypassing scrutiny. The EU has already received more packages in the first nine months of 2025 than in the entire previous year, when the counter hit 4.6 billion. French Finance Minister Roland Lescure called it “a literal invasion of parcels in Europe last year,” which would have hit “7, 8, 9 billion in the coming years if nothing was done.” An EU official told POLITICO earlier this month that at some airports, up to 80 percent of such packages arriving don’t comply with EU safety rules. This creates a huge workload for customs officials, a growing pile of garbage, and health risks from unsafe toys and kitchen items. EU countries have already agreed to formally abolish the de-minimis loophole, but taxing all items based on their actual value and product type will require more data exchange. That will only be possible once an ambitious reform of the bloc’s Customs Union, currently under negotiation, is completed by 2028. The €3 flat tax is the temporary solution to cover the period until then. The rising popularity of web shops like Shein and Temu, which both operate out of China is fueling this flood. France suspended access to Shein’s online platform this month. This €3 EU-wide tax will be distinct from the so-called handling fee that France has proposed as a part of its national budget to relieve the costs on customs for dealing with the same flood of packages. Klara Durand and Camille Gijs contributed to this report.

LONDON — Scandal-hit Japanese tech firm Fujitsu has lost its grip on a lucrative contract to keep running Great Britain’s post-Brexit border with Northern Ireland, following mounting public pressure, two people with knowledge of the bidding process have told POLITICO. The firm at the center of the Post Office scandal — which saw faulty data from Fujitsu’s Horizon software lead to wrongful theft and fraud convictions of hundreds of innocent Post Office workers — had spearheaded a consortium bid for the £370 million contract to continue running the Trader Support Service (TSS), as reported earlier this year. The contract was awarded to another consortium late last month, according to the two people cited above. The 10-day cooling-off period after the contract was awarded ends on Tuesday. The Fujitsu-led consortium, which includes Liz Truss ally Shanker Singham’s firm Competere, has raked in more than £500 million since 2020 developing and operating the platform, which helps firms navigate the complicated post-Brexit customs arrangements between Great Britain and Northern Ireland under the Windsor Framework. While a new supplier will be taking control of TSS, Fujitsu retains the intellectual property rights to a core part of the existing platform, four people with knowledge of the process — including those cited above — confirmed. This means the new system will have to be built from scratch.  All of those cited in this story were granted anonymity to speak freely. There have been calls for Fujitsu to be stripped of its public contracts while sub postmasters affected by the scandal await full compensation. In August, more than 32 MPs and 44 peers wrote to U.K. Prime Minister Keir Starmer, urging him to block the firm from bidding for control of the TSS platform. In October, the government accepted all but one of the recommendations from Wyn Williams’ inquiry into the scandal, published in July, which concluded that at least 13 people may have taken their own lives after being accused of wrongdoing.  There has also been public scrutiny over the running of TSS. Cabinet Office Minister Nick Thomas-Symonds told lawmakers earlier this year he was investigating industry concerns about the service. “We are concerned to hear reports that the Trader Support Service is not providing a good quality of service,” cross-party peers on the Northern Ireland Scrutiny Committee wrote in an October report. Meanwhile, a report by the Federation of Small Businesses found current support relating to the Windsor Framework — including the TSS — was “falling short of expectations,” with 78 percent of Northern Irish businesses surveyed rating it as either “very poor” or “poor.” A spokesperson for HMRC, which awarded the contract, said: “We follow government procurement rules when awarding contracts, ensuring value for money for taxpayers. All bids underwent a robust evaluation and assurance process, and we will confirm the award in due course.” Fujitsu and Competere did not respond to requests for comment.

European industry is facing a “life or death” moment, says French President Emmanuel Macron, squeezed between an ultra-competitive China and a protectionist America — and Beijing should ride to its rescue with long overdue foreign investment. “The Chinese have to do in Europe what the Europeans did 25 years ago by investing in China,” Macron told the Les Echos financial newspaper upon returning from his fourth official trip to Beijing since 2018. The continent’s trade deficit with China was €306 billion in 2024, on some €213 billion in exports against €519 billion in imports. “I am trying to explain to the Chinese that their trade surplus is untenable and that they are killing their own customers, mainly by not importing much from us,” the French leader said. A similar imbalance exists between Europe’s €232 billion investment stock in China — the total value of accumulated portfolio investments and FDI — and China’s €65 billion in Europe, according to data for 2023. “We recognize that they are very good in some areas. But we can’t be constantly importing,” Macron said. “Chinese businesses have to come to Europe, just like EDF and Airbus previously went to China, and create value and opportunities for Europe.” He added, however, that “Chinese investments in Europe must not be predatory, by which I mean in pursuit of hegemony and creating dependencies.” France takes up the 2026 presidency of the G7 group of major advanced economies on Jan. 1 and will host the G7 summit in Evian, France, in June. Bloomberg reported last month that Macron is considering inviting Chinese President Xi Jinping to the summit and intends to use its presidency to restore the G7 to its former global standing. Macron warned in the Les Echos interview that Europe might be forced to slap customs duties on Chinese imports, as the U.S. has done under Donald Trump, and accused Beijing of “hitting the heart of Europe’s innovation and industrial model.” But rather than more confrontation, the French president proposed a truce with Beijing — “the mutual dismantling of our aggressive policies, such as restrictions on the export of semiconductor machines on the European side and limitations on the export of rare earths on the Chinese side.”

BRUSSELS — The EU will start using high-resolution satellites and the latest drone technology to crack down on drugs smuggled through its borders, as cocaine and synthetic drugs swarm European capitals and the bloc grapples with growing drug trafficking violence. “When it comes to illegal drugs, Europe is reaching a crisis point,” said European Commissioner for Internal Affairs and Migration Magnus Brunner on Thursday, while presenting the new EU Drugs Strategy and action plan against drug trafficking. They lay out actions to boost international cooperation, stop the import of illicit drugs, dismantle production sites, curb recruitment of young people to criminal networks and tackle the growing drug-related violence that has taken capitals hostage. As gang networks evolve and drug traffickers constantly find new “loopholes” to bring their drugs into Europe, the EU and countries will work with customs, agencies and the private sector to better monitor and disrupt trafficking routes across land, sea or air. This includes using the latest technologies and artificial intelligence to find drugs sent via mail, monitoring aviation and publishing its upcoming EU Ports Strategy for port security. EU border security agency Frontex will get “state of the art resources,” said Brunner, including high-resolution satellites and drones. “Drug traffickers use the latest technologies, which means we need innovation to beat them,” Brunner said. To stay up to date, the European Commission is establishing a Security and Innovation Campus to boost research and test cutting-edge technologies in 2026. “We send the drug lords and their organizations a clear message: Europe is fighting back,” Brunner said. On top of the increased import of illegal drugs, Europe is grappling with the growing in-house production of synthetic drugs, with authorities dismantling up to 500 labs every year. To tackle this, the European Union Drugs Agency will develop a European database on drug production incidents and an EU-wide substance database to help countries identify synthetic drugs and precursor chemicals. The EU is also looking at its existing laws, evaluating the current rules against organized crime and the existing Framework Decision on drug trafficking by 2026. The EUDA’s new European drug alert system, launched a couple of weeks ago, will also help issue alerts on serious drug-related risks, such as highly potent synthetic drugs; while its EU early warning system will help identify new substances and quickly inform the capitals. Europe is grappling with a surge in the availability of cocaine, synthetic stimulants and potent opioids, alongside increasingly complex trafficking networks and rising drug-related violence, particularly in Belgium and the Netherlands. The quantity of drugs seized in the EU has increased dramatically between 2013 and 2023, the commissioner said, with authorities seizing 419 metric tons of cocaine in 2023 — six times more than the previous decade. But it’s not just the drugs — illicit drug trafficking comes with “bloodshed, violence, corruption, and social harm,” Brunner said. Criminal networks are increasingly recruiting young and vulnerable people, often using social media platforms. To fight this, the EU will launch an EU-wide platform to “stop young people being drawn into drug trafficking,” connecting experts across Europe. “I think that is key — to get engaged with the young people at an early stage, to prevent them getting into the use of drugs,” Brunner said. The new strategy — and accompanying action plan — will define how Europe should tackle this escalating crisis from 2026 to 2030. “Already too many have been lost to death, addiction and violence caused by traffickers. Now is the time for us to turn the tides,” he added.