PARIS — French President Emmanuel Macron’s celebrations over the imminent passage of the 2026 budget will be short-lived. Once it’s approved, he’s going to be a lame duck until the presidential election of spring next year. Current and former ministers, lawmakers and political aides — including three Macron allies — told POLITICO that now that the budget fight is over and the concerns of angry citizens and jittery markets are assuaged, the whole cycle of French politics will shift to campaign mode at the expense of the dirty work of lawmaking.  First will come next month’s municipal elections, where voters in all of France’s 35,000-plus communes will elect mayors and city councils. Then all attention will flip to the race for the all-powerful presidency, Macron cannot run again due to term limits, and polls show he could be replaced by a candidate from the far-right National Rally. “It’s the end of [Macron’s] term,” a former adviser close to Prime Minister Sébastien Lecornu said of the budget’s passage.   Gabriel Attal, Macron’s former prime minister who now leads the French president’s party, confirmed in an interview with French media last month that he told his troops the budget marked “the end” of Macron’s second term.  “I stand by what I said,” Attal told FranceInfo.  As president, Macron continues to exert a strong influence over foreign affairs and defense, two realms that will keep him on the world stage given the geopolitical upheaval brought on by U.S. President Donald Trump’s second term. Domestically, however, he’s been hampered by the snap election in 2024 that delivered a hung parliament.  Lecornu was only able to avoid being toppled over the passage of the budget, as his two immediate predecessors were, thanks to his political savvy, some compromises and a few bold decisions. These included pausing Macron’s flagship pension reform that raised the retirement age and going back on his promise not to use a constitutional backdoor to ram it through without a vote. “Lecornu was smart enough to make the budget phase pass and end on a high note. That’s commendable, given that [former Prime Ministers Michel] Barnier and [François] Bayrou didn’t manage to do so, and he did it with considerable skill,” said a ministerial adviser who, like others quoted in this piece, was granted anonymity to speak candidly.  But Lecornu’s decision to prioritize uncontroversial measures in the coming weeks speak to the difficulties that lie ahead.   These priorities include defining the division of power between the central government and local authorities, and streamlining and centralizing welfare payments that are currently doled out in an ad hoc fashion. Lecornu is also planning to get to work early on France’s 2027 fiscal plans to try to prevent the third budget crisis in a row.  French Prime Minister Sebastien Lecornu leaves the Elysee Palace in Paris after a Cabinet meeting on Jan. 28. His decision to prioritize uncontroversial measures in the coming weeks speak to the difficulties ahead. | Mohammed Badra/EPA “There will be a presidential election in 2027. Before then, we need to agree on a bottom line which allows the country to move forward,” government spokesperson Maud Bregeon said Thursday on Sud Radio.  Lecornu has repeatedly stressed that his government should be disconnected from the race for president, blaming “partisan appetites” for both the budget crisis and the collapse of his 14-hour government, which was eventually replaced with a suite of less ambitious ministers.   But it’s ironic that some French government officials and MPs are now saying the self-described warrior-monk prime minister may have vaulted himself into the realm of presidential contender with his budget win. Mathieu Gallard, a pollster at Ipsos, said Lecornu had clearly become a more viable presidential candidate but noted that the jump from prime minister to president “is always a hard task.”  One parliamentary leader was much less sanguine. They said the same “partisan appetites” Lecornu has long warned about will likely cost him his job before voters head to the polls to choose Macron’s successor.   “[Lecornu] has few friends … And now that the budget has passed, every political group can have fun throwing him out of office to plant their flag before the next presidential election,” the leader said.  Anthony Lattier, Sarah Paillou and Elisa Bertholomey contributed to this report. 

The center-right European People’s Party is eyeing “better implementation” of the Lisbon Treaty to better prepare the EU for what it sees as historic shifts in the global balance of power involving the U.S., China and Russia, EPP leader Manfred Weber said on Saturday. Speaking at a press conference on the second day of an EPP Leaders Retreat in Zagreb, Weber highlighted the possibility of broadening the use of qualified majority voting in EU decision-making and developing a practical plan for military response if a member state is attacked. Currently EU leaders can use qualified majority voting on most legislative proposals, from energy and climate issues to research and innovation. But common foreign and security policy, EU finances and membership issues, among other areas, need a unified majority. This means that on issues such as sanctions against Russia, one country can block agreement, as happened last summer when Slovakian Prime Minister Robert Fico vetoed a package of EU measures against Moscow — a veto that was eventually lifted. Such power in one country’s hands is something that the EPP would like to change.  As for military solidarity, Article 42.7 of the Lisbon Treaty obliges countries to provide “aid and assistance by all the means in their power” if an EU country is attacked. For Weber, the formulation under European law is stronger than NATO’s Article 5 collective defense commitment. However, he stressed that the EU still lacks a clear operational plan for how the clause would work in practice. Article 42.7 was previously used when France requested that other EU countries make additional contributions to the fight against terrorism, following the Paris terrorist attacks in November 2015.  Such ideas were presented as the party with a biggest grouping in the European Parliament — and therefore the power to shape EU political priorities — presented its strategic focus for 2026, with competitiveness as its main priority.  Keeping the pulse on what matters in 2026  The EPP wants to unleash the bloc’s competitiveness through further cutting red tape, “completing” the EU single market, diversifying supply chains, protecting economic independence and security and promoting innovation including in AI, chips and biotech, among other actions, according to its list 2026 priorities unveiled on Saturday. On defense, the EPP is pushing for a “360-degree” security approach to safeguard Europe against growing geopolitical threats, “addressing state and non-state threats from all directions,” according to the document. The EPP is calling for enhanced European defense capabilities, including a stronger defense market, joint procurement of military equipment, and new strategic initiatives to boost readiness. The party also stressed the need for better protection against cyberattacks and hybrid threats, and robust measures to counter disinformation campaigns targeting EU institutions and societies. On migration and border security, the EPP backs tougher asylum admissibility rules, faster returns, and strengthened external borders, including reinforced Frontex operations and improved digital systems like the Entry/Exit System.  The party also urged a Demographic Strategy for Europe amid the continent’s shrinking and aging population. The text, initiated by Croatian Democratic Union (HDZ), member of the EPP, wants to see demographic considerations integrated into EU economic governance, cohesion funds, and policymaking, while boosting family support, intergenerational solidarity, labor participation, skills development, mobility and managed immigration.  Demographic change is “the most important issue, which is not really intensively discussed in the public discourse,” Weber said. “That’s why we want to highlight this, we want to underline the importance.” 

LONDON — It’s a far cry from the ice age of U.K.-China relations that characterized Rishi Sunak’s leadership — and it’s not exactly David Cameron’s “golden era,” either.  As U.K. Prime Minister Keir Starmer embarks on his Chinese charm offensive against a turbulent economic backdrop, he has opted for a softly-softly approach in a bid to warm up one of Britain’s most important trading partners — a marked departure from his Tory predecessors. With the specter of U.S. President Donald Trump looming over the visit — not to mention national security concerns back home — Starmer’s cautious optimism is hardly surprising.  Despite reservations from China skeptics, Starmer’s trip — the first such visit by a British prime minister since 2018 — was peppered with warm words and a smattering of deals, some more consequential than others. Britain’s haul from the trip may be modest, but it’s just the beginning, Business and Trade Secretary Peter Kyle — who joined Starmer on the trip — told a traveling pack of reporters in Beijing. “This visit is a springboard,” the minister said. “This is not the last moment, it is a springboard into a future with far more action to come.” STEP-BY-STEP On the ground in Beijing, British officials gave the impression that the prime minister was focused on getting as many uncontroversial wins over the line as possible, in a bid to thaw relations with China. That’s not to say Starmer and his team don’t have a few tangible wins to write home about. Headline announcements include a commitment from China to allow visa-free travel for British tourists and business travelers, enabling visits of up to 30 days without the need for documents.   The provisions are similar to those extended to 50 other countries including France, Germany, Italy, Australia and Japan. The timings of the visa change have not yet been set out publicly, but one official — who, like others cited in this piece, was granted anonymity to speak freely — said they were aiming to get it nailed down in coming months. “From a business standpoint, it will reduce a lot of friction,” said a British business representative, adding it will make it easier for U.K. firms to explore opportunities and form partnerships. “China is very complicated. You have to be on the ground to really assess opportunities,” they said, adding visa-free travel “will make things a lot easier.” The commitment to visa-free travel forms part of a wider services package aimed at driving  collaboration for businesses in healthcare, financial and professional services, legal services, education and skills — areas where British firms often face regulatory or administrative hurdles.  The countries have also agreed to conduct a “feasibility study” to explore whether to enter negotiations towards a bilateral services agreement. If it goes ahead, this would establish clear and legally binding rules for U.K. firms doing business in China. Once again, the timeframe is vague. David Taylor, head of policy at the Asia House think tank in London, said “Xi’s language has been warmer and more expansive, signaling interest in stabilizing the relationship, but the substance on offer so far remains tightly defined.” “Beyond the immediate announcements, progress — particularly on services and professional access — will be harder and slower if it happens at all,” he added. WHISKY TARIFF RELIEF Another victory talked up by the British government is a plan for China to slash Scotch whisky tariffs by half, from 10 percent to 5 percent.  However, some may question the scale of the commitment, which effectively restores the rate that was in place one year ago, ahead of a doubling of the rate for whisky and brandy in February 2025. The two sides have not yet set out a timeframe for the reduction of tariffs.  Speaking to POLITICO ahead of Starmer’s trip, a senior business representative said the whisky and brandy issue had become “China leverage” in talks leading up to the visit. However, they argued that even a removal of the tariff was “not going to solve the main issue for British whisky companies in China and everywhere, which is that people aren’t buying and drinking whisky.” CHINA INVESTMENT WIN Meanwhile, China can boast a significant win in the form of a $15 billion investment in medicines manufacturing and research and development from British pharmaceutical giant AstraZeneca.  ING Bank’s global healthcare lead Stephen Farelly said that increasing investment into China “makes good business sense,” given the country is “now becoming a force in biopharma.” However, it “does shine a light on the isolation of Europe and the U.K. more generally, where there is a structural decline in investment and R&D.” AstraZeneca recently paused a £200 million investment at a Cambridge research site in September last year, which was due to create 1,000 jobs.  Britain recently increased the amount the NHS pays for branded, pharmaceutical drugs, following heavy industry lobbying and following trade negotiations with the Trump administration — all in the hopes of attracting new investment into the struggling sector.  Shadow Trade Secretary Andrew Griffith was blunt in his assessment. “AstraZeneca’s a great British company but under this government it’s investing everywhere in the world other than its U.K. home. When we are losing investment to communist China, alarm bells should be ringing in No 10 Downing Street.” Conspicuously absent from Starmer’s haul was any mention of net zero infrastructure imports, like solar panels, a reflection of rising concerns about China’s grip on Britain’s critical infrastructure. XI RETURNS So what next? As Starmer prepares to fly back home, attention has already turned to his next encounter with the Chinese leader.  On Thursday, Britain opened the door to an inward visit by Xi Jinping, with Downing Street repeatedly declining to rule out the prospect of welcoming him in future. Asked about the prospect of an inward visit — which would be the first for 11 years — Starmer’s official spokesperson told reporters: “I think the prime minister has been clear that a reset relationship with China, that it’s no longer in an ice age, is beneficial to British people and British business.” As Starmer’s trip draws to a close, one thing is certain: there is more to come. “This isn’t a question of a one-and-done summit with China,” Starmer’s spokesperson added. “It is a resetting of a relationship that has been on ice for eight years.”

The U.K. and China have announced a new services partnership to support British businesses operating in China, including through visa-free travel for short stays. The partnership will see Beijing relax its visa rules for British citizens, adding the U.K. to its visa-free list of countries. This will enable visits of up to 30 days for business and tourism without the need for a visa. The timings of the visa change have not yet been set out. The partnership focuses on better collaboration for businesses in healthcare, financial and professional services, legal services, education and skills — areas where British firms often face regulatory or administrative hurdles.  Britain and China have also agreed to conduct a “feasibility study” to explore whether to enter negotiations towards a bilateral services agreement. If it proceeds, this would establish clear and legally binding rules for U.K. firms doing business in China. Prime Minister Keir Starmer said: “As one of the world’s economic powerhouses, businesses have been crying out for ways to grow their footprints in China. “We’ll make it easier for them to do so – including via relaxed visa rules for short-term travel — supporting them to expand abroad, all while boosting growth and jobs at home.” The U.K. and China have also signed pacts covering co-operation on conformity assessments for exports from the U.K. to China, food safety, animal, and plant quarantine health and the work the UK-China Joint Economic and Trade Commission. The two sides aren’t planning to publish the full texts of the pacts.

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).

LONDON — British students will once again be able to take part in the EU’s Erasmus+ exchange scheme from January 2027 — following a six-year hiatus due to Brexit. U.K. ministers say they have secured a 30 percent discount on payments to re-enter the program that strikes “a fair balance between our contribution and the benefits” it offers. The move is one of the first tangible changes out of Keir Starmer’s EU “reset,” which is designed to smooth the harder edges off Boris Johnson’s Brexit settlement while staying outside the bloc’s orbit. In an announcement on Wednesday Brussels and London also confirmed they were formally beginning negotiations on U.K. re-entry into the EU’s internal market for electricity. Both sides hope the move, which was called for by industry in both sides of the Channel, will cut energy bills while also making it easier to invest in North Sea green energy projects — which have been plagued by Brexit complications. They also pledged to finish ongoing talks on linking the U.K. and EU carbon trading systems, as well as a new food and drink (SPS) deal, by the time they meet for an EU-U.K. summit in 2026. The planned meeting, which will take place in Brussels, does not yet have a date but is expected around the same time as this year’s May gathering in London. The announcements give more forward momentum to the “reset,” which faltered earlier this month after failing to reach an agreement on British membership of an EU defense industry financing program, SAFE. The two sides could not agree on the appropriate level of U.K. financial contribution. The pledge to finalize carbon trading (ETS) linkage next year is significant because it will help British businesses avoid a new EU carbon border tax — CBAM — which starts from Jan. 1 2026. While the tax, which charges firms for the greenhouse gas emissions in their products, begins on Jan. 1, payments are not due until 2027, by which time the U.K. is expected to be exempt. But it is not yet clear whether British firms will have to make back payments on previous imports once the deal is secured, and there is no sign of any deal to bridge the gap. WIDENING HORIZONS EU Relations Minister Nick Thomas-Symonds, who negotiated the agreement, said the move was “a huge win for our young people” and would break down barriers and widen horizons so that “everyone, from every background, has the opportunity to study and train abroad.” European Parliament President Roberta Metsola welcomes British Minister for the Constitution and European Union Relations Nick Thomas-Symonds. | Ronald Wittek/EPA “This is about more than just travel: it’s about future skills, academic success, and giving the next generation access to the best possible opportunities,” he said. “Today’s agreements prove that our new partnership with the EU is working. We have focused on the public’s priorities and secured a deal that puts opportunity first.” The expected cost of the U.K.’s membership of the Erasmus+ program in 2027 will be £570 million. Skills Minister Jacqui Smith said Erasmus+ membership is “about breaking down barriers to opportunity, giving learners the chance to build skills, confidence and international experience that employers value.” Liberal Democrat Universities Spokesperson Ian Sollom also welcomed U.K. re-entry into the exchange scheme but said it should be a “first step” in a closer relationship with the EU. “This is a moment of real opportunity and a clear step towards repairing the disastrous Conservative Brexit deal,” he said. “However while this is a welcome breakthrough, it must be viewed as a crucial first step on a clear roadmap to a closer relationship with Europe. Starting with negotiating a bespoke UK-EU customs union, and committing to a youth mobility scheme for benefit of the next generation.”

In the secretive cloisters of the Vatican, where bishops and cardinals plot and scheme, Martin Selmayr was seen as a natural (for a Protestant, at least). But the man who once ran the European Commission with an iron grip devoted his best work to charting his course back to the Berlaymont. However, his latest scheme for ending his effective exile in Rome, where he is EU ambassador to the Holy See, and returning to Brussels seems to have come apart. The job that looked set to be his — deputy secretary-general of the European External Action Service (EEAS), a new role strong-arming EU leaders into agreeing on foreign policy — seemed ideal. But it was clumsy politicking that proved to be the downfall of the veteran German civil servant. According to three officials, granted anonymity to talk about the backroom dealings, `Selmayr looks set to stay in Rome for the foreseeable future after opposition from the top of the European Commission sank his bid, particularly because he has so far declined to take an alternative role in the Belgian capital. The scheming came to a head at a meeting of the College of Commissioners on Oct. 21, when a conclave of Ursula von der Leyen allies proposed that Selmayr be given the role of special envoy for religious freedoms, a job that would have brought him back to Brussels but in a much less high-profile role than the one at the EEAS. The plan was drawn up because of Selmayr’s very public maneuvering, which spooked some national capitals, according to those in the room. “This was a way to say OK, if he wants to come back to Brussels, here’s how you do it,” said one of the EU officials of the offer for the religious freedom envoy role. However, at a College of Commissioners meeting earlier this week, Selmayr was not put forward for the role of religious freedom envoy either. “This was the only job open to him,” said the official. “If he doesn’t want that, he stays in Rome.” Selmayr has declined to comment publicly throughout the process. DOMINUS VOBISCUM During his time as chief of staff to former Commission President Jean-Claude Juncker, Selmayr gained a reputation for ruthless efficiency. He was also branded the “Monster of the Berlaymont” for his hard-nosed tactics. Many imagined Selmayr’s 2019 departure, designed to allay fears about German over-representation and give new President von der Leyen a clean slate to govern, would be the end of his time in Brussels. However, Selmayr’s irrepressible energy and intelligence made him stand out even from Rome, where he made a splash entertaining dignitaries, cardinals and other Vatican potentates from his lavish HQ abutting the ancient Baths of Caracalla. During his time as chief of staff to former Commission President Jean-Claude Juncker, Selmayr gained a reputation for ruthless efficiency. | Pool photo by Ludovic Marin/EPA “That someone who’s been a political animal in Brussels can fit in here and earn respect in the Vatican, that speaks to his qualities,” said one emmissary who got to know Selmayr well and was granted anonymity to speak freely. “I’ve seen him leading the room at EU ambassadors’ meetings; he was charming, suave, and very well-informed.” Also tasked with representing the EU in talks with the UN’s Food and Agriculture Organization, diplomats said Selmayr provided an immediate boost to the bloc’s standing, turning his Brussels-honed skills to the issues at hand. Clerics and seasoned attachés alike were awed by how much this establishment creature knew about their cloistered Catholic world, with one pointing out that he appeared to enjoy the Vatican brief more than he was supposed to — given he was officially supposed to prioritize the UN part of the job. A diplomatic insider, meanwhile, said Selmayr seemed overqualified for the ambassadorship. “He is quite up for scheming, which is fun, but scheming about multilateral agriculture issues is hardly high geopolitics. You can tell he wants to be more forceful and make stuff happen quickly, but gets that isn’t how it works here … he does the job, it just isn’t a very taxing job.” SEDE VACANTE The sight of one of the EU’s most accomplished backroom operators languishing in the Vatican presented a clear opportunity for the EU’s top diplomat, Kaja Kallas, and her allies. For months, the former Estonian prime minister has been locked in a power struggle with national capitals over flagship policies such as sanctioning Israel and relations with U.S. President Donald Trump. Many imagined Selmayr’s 2019 departure, designed to give new President von der Leyen a clean slate to govern, would be the end of his time in Brussels. | Ronald Wittek/EPA Kallas has also been in an increasingly bitter standoff with von der Leyen and her own all-powerful German head of cabinet, Selmayr’s successor, Björn Seibert. “Kaja wants her own Björn,” said a third diplomat, “and that’s Martin.” But there were concerns that unleashing Selmayr’s scheming in Brussels could worsen the already tense political landscape. “The only similarities between Björn and Martin are that they’re both very smart and they’re both from Germany,” said the senior EU official, arguing that Seibert strives for loyalty and quiet competence while Selmayr is a political animal with few such scruples. “People think he’d be a kind of monster under the bed for von der Leyen — really, he’d be the monster under the bed for Kallas.” CARDINALES ELECTORES A Selmayr return to the EEAS would have been controversial because of his reputation, but the pieces were never really in place, according to Günther Oettinger, who served as Germany’s European commissioner from 2010 until 2019, including the period when Selmayr was at the peak of his powers as secretary-general of the European Commission. “The preparatory work was not convincing,” Oettinger said. “For such a senior post in the EEAS, you need the full backing of several member states: because he’s German, the full backing of the German government, in addition to France, Poland and so on.” A Selmayr return to the EEAS would have been controversial because of his reputation, but the pieces were never really in place, according to Günther Oettinger. | Stephanie Lecocq/EPA “To have the idea is the first step, but to not procure the full backing of member states — I’d say this was a mistake of Madam Kallas,” said Oettinger. Diplomats and officials who spoke to POLITICO said key countries were not asked about a Selmayr return or kept informed on the process. There was also division in Germany over a potential reappearance of Selmayr. Germany’s EU Affairs Minister Gunther Krichbaum told POLITICO in late October that he would “very much welcome” Selmayr returning to the fray in a senior role, sparking an immediate rebuke from his own government. HABEMUS PLAN-AM The high-handed scheming on Selmayr’s future has now alienated even the faith community that he had worked hard to build bridges with. “It’s a bit upsetting that this position [special envoy for religious freedoms] is being politicized, it’s not what Church has asked for,” said Manuel Barrios, who lobbies on behalf of Europe’s bishops’ conferences in Brussels. “We’ve been back and forth some times — a lot of parties have asked for this already, so it’s a bit upsetting that this is being used as a political fight. It seems von der Leyen is not very interested — neither her nor her head of cabinet.” Kaja Kallas has also been in an increasingly bitter standoff with von der Leyen and her own all-powerful German head of cabinet, Selmayr’s successor, Björn Seibert. | Olivier Hoslet/EPA The Commission is also under fire from civil society groups over fears that jobs are being stitched up behind closed doors by its gray cardinals. In a letter to von der Leyen, Humanists International warned that the role of the envoy is too important to play politics with. Officials, they say, should put forward “a transparent and accountable selection process, which should, at a minimum, include public lists of candidates and criteria as well as the meaningful consultation of Parliament and civil society.” For now, the German apparatchik is pushing on with his plans undeterred. “Mr. Selmayr successfully completed the application process at the EEAS last week,” said a person with knowledge of his application. “Whether he will be able to take up this position in the near future or will continue to serve as EU Ambassador to the United Nations in Rome and to the Holy See must now be decided jointly by the EU High Representative and the President of the Commission ‘in the interest of the service.'” But, as Selmayr’s best-laid plans come up against those of the EU’s leadership, all he and his allies can do is double down on their plotting and hope they can do it better than his rivals. “He’s eminently qualified,” said a fourth diplomat. “If he doesn’t get the job, it’s down to politics.” Gabriel Gavin reported from Paris. Ben Munster reported from Brussels. Hannah Roberts reported from Rome. Hans von der Burchard reported from Berlin.

Lithuania’s Prime Minister Inga Ruginienė has dismissed Defense Minister Dovilė Šakalienė after a massive bust-up over the Baltic country’s defense budget. The public rift saw Ruginienė last week criticizing fellow Social Democrat Šakalienė for lobbying on the budget behind the government’s back, as Vilnius considers how best to counter potential Russian aggression. Lithuania is one of the three Baltic nations neighboring Russia. It’s increasingly preparing for a potential attack from Moscow by boosting military expenditure and strengthening its borders to fend off an invasion. Šakalienė’s defense ministry had indicated that next year’s military budget would be lower than planned and reportedly sought to pressure the government to increase it during an unofficial meeting with influencers and journalists. “The events of recent weeks were really just the final straw,” the prime minister told reporters on Wednesday after meeting with President Gitanas Nausėda. “While this decision [to boot Šakalienė] came sooner than expected, it may have been unavoidable,” she said. In a scathing rebuke, Ruginienė cited dishonesty, “a complete lack of willingness to cooperate,” poor team management and “various small details” as reasons for dismissing Šakalienė. “It is unfortunate that I have to take this decision and it is certainly a challenging moment for me as Prime Minister,” Ruginienė said. Šakalienė said she’d resigned rather than being pushed out. “I kept my promise. The resignation letter was sent this morning at 10 a.m.” she said in a Facebook post, in which she acknowledged that working with her “was not for the faint-hearted.” “Just a month ago, I had hoped that we could work with the prime minister, but unfortunately, we cannot, as we have fundamentally different views on how to strengthen national defense,” she added. The government has proposed spending 5.38 percent of GDP on defense in 2026, but it still needs to be approved by the parliament. Šakalienė shared photos of budget slides presented at the government meeting on Oct. 1, allocating 4.87 percent of GDP to defense — and an email from the finance ministry on the evening of Oct. 14, the day of the unofficial meeting, which increased the defense budget to 5.38 percent of GDP. Asked whether the initial defense budget was indeed smaller, which triggered Šakalienė’s controversial lobbying session, Ruginienė said it was “strange to interpret draft versions.” Dovilė Šakalienė said she’d resigned rather than being pushed out. | Thomas Traasdahl/EPA “It doesn’t matter when you season the soup — what matters is the final result. The same applies to the budget: what counts is the final outcome, and that’s what’s important,” she said. This is the second ministerial exit since Ruginienė took office in August. Culture Minister Ignotas Adomavičius resigned after just one week in October, following public backlash and protests from Lithuania’s cultural community over the allocation of the related ministry to the populist party Dawn of Nemunas. The Social Democrats have since taken over the culture ministry and are currently searching for a new minister. Potential candidates for defense minister have already been discussed with the president, though Ruginienė has not released any names. Until a new minister is appointed, Interior Minister Vladislavas Kondratovičius will temporarily lead one of the Baltic country’s most strategic ministries. “It is especially important to select the right defense minister, since the defense budget is an absolute priority both for us and for the prime minister,” said Nausėda’s chief adviser on national security, Deividas Matulionis, calling the budget for defense “historical.” “This is not just an internal security issue; it is a matter of our international image. The future deployment of a German brigade and the presence of American troops depend on it. Everything is at stake,” he told reporters Wednesday. Šakalienė, in her Facebook post, said that the defense budget cannot be below 5.5 percent of GDP. “This year, the Ministry of Defense managed to secure 5.38 percent (after the well-known Oct. 14 meeting), but funding gaps remain, and some planned acquisitions will have to be canceled,” she said.

BIRMINGHAM — It had suits, wonks, outriders, sponsors, lobbyists, receptions, and a rapidly-growing party flock. But Reform UK’s conference remained in many ways the Nigel Farage show. From the scrum around the populist leader to the teal “No. 10” football shirts in his name, Farage — a 30-year veteran of right-wing insurgency — dominated. He filled most of the hall at Birmingham’s National Exhibition Centre for his Friday speech, despite a last-minute timing change. Much of Reform’s runaway lead in U.K. opinion polls is down to one man’s charisma. “It’s like going on tour with the Pope,” said one party figure, granted anonymity (like other officials and politicians quoted in this piece) to speak candidly. But to survive in government, Reform will need more. And Farage, who turns 65 in 2029, knows it. He and his allies are now conspicuously trying to emphasize that Reform is not just about him. Attendees could barely move for talk of new party structures and policy fringes. Farage tries to farm out media interviews and visits to his allies, particularly his deputy Richard Tice and new Head of Policy Zia Yusuf (neither of whom have ruled out eyeing the job of chancellor). Yet Farage’s word is still gospel. The leader personally pushed to have Aseem Malhotra, an adviser to Trump’s Health Secretary Robert F. Kennedy Jr, on the conference’s main stage due to his links with the U.S. administration, one party figure said. Malhotra then used the platform to suggest Covid vaccinations may have caused King Charles’ cancer (Reform distanced itself from his comments). Like the MAGA movement — reflected in the conference’s “Make Britain Great Again” caps, stage pyrotechnics and talk of the death of the old right — Reform is still vested in an ultra-high-profile figurehead. But Britain does not have presidents, and Downing Street has far fewer political appointees than the White House. Reform must prepare for a system that is bigger than the principal. That begins, for now, with policy. THE SMALL TENT Reform now has three fully-fledged paid policy officials, said a party figure, including Simon Marcus, a former Tory councilor in London. This is a small number for a party hoping to reach government, though soon he will have more backup. Reform is recruiting at least four more paid policy officials, several officials told POLITICO, including two on central policy and one each for Scotland and Wales ahead of devolved elections in May 2026. There are unpaid officials too, such as Yusuf, and the party relies on enthusiastic volunteers. In Scotland, where the party does not yet have a paid policy official, party figures pointed to an unpaid activist as the main backroom thinker on policy (as part of a committee). Neil Hall/EPA Broadly speaking, though, the circle of people in the room for key decisions is small. As well as key elected representatives and Yusuf, Reform figures who were asked by POLITICO pointed to Farage’s Director of Communications and effectively his chief of staff Dan Jukes; long-time Farage ally and strategist Chris Bruni-Lowe; Director of Operations Aaron Lobo; and Reform Director of Communications Ed Sumner. A second Reform figure described Farage’s core team as “very tight.” A third Reform figure suggested four people plus Farage were in the room at key moments, adding: “Ultimately Nigel is the leader and he makes the decisions.” Yusuf told a conference event that Reform’s recent immigration policy — a sprawling pledge that would lead to around 600,000 deportations — was drawn up “entirely in-house.” On policy, though, Reform figures are keen to show that they know they’ll need a wider pool of thinkers. “Our biggest weakness is we have no experience in government,” said a fourth Reform figure. “We have no one that knows the ropes.” Sometimes it seems to show. Farage’s big announcement in his Friday speech, to stop migrant boat crossings in the English Channel “within two weeks of winning government,” became “within two weeks of legislation being passed” by the time he gave press interviews Saturday. Tory strategists are separately keen to pick at what they paint as fiscal incoherence in Farage’s call to ease a two-child limit on benefits — a pledge that emerged from his desire for more British babies — at the same time as “serious cuts” to the welfare budget. A fifth Reform figure argued the leader is a factor: “Nigel’s not a huge policy guy,” they said. “Nigel’s role is to drive the party forward, to inspire the ranks.” AND SO, ENTER THE WONKS Reform’s nine-member party board met for the first time last week. It consists of Farage, Yusuf, chairman David Bull, racehorse trainer Andrew Reid, the former leader of UKIP (Reform’s predecessor party) Paul Nuttall, ex-GB News presenter Darren Grimes, regional mayor Andrea Jenkyns, former Tory Greater Manchester mayoral candidate Dan Barker, and Farage’s former press chief Gawain Towler. Yusuf, who Farage named as head of policy on Friday, told a fringe event that board will have a “subordinate committee” that essentially “rubber-stamps” party policy. Then there is a nascent ecosystem of think tanks including the Reform-friendly Centre for a Better Britain (referred to verbally by supporters as CFABB). Its chief executive Jonathan Brown — Reform’s former chief operating officer — meets Tice roughly every couple of weeks, said a person with knowledge of the meetings. While the group declined to say who funds it, a document leaked to the Sunday Times suggested it wanted to raise more than £25 million by 2029 — much of it from the U.S. (A CFABB official insisted to POLITICO that all current donors are either British or reside in Britain.) The chair of its advisory board, James Orr, has been a friend of U.S. Vice President JD Vance since 2019. Neill Hall/EPA But CFABB also has a British flavor — as a home for Brexit warriors of old. Veteran Tory Euroskeptic John Redwood is helping with some of its work. Christopher Howarth, the former fixer for the Tory European Research Group, is one of its seven or so current staff. Brown is in a WhatsApp group with right-wing Conservative peers, including Boris Johnson’s former Brexit negotiator David Frost. And his fellow CBB director David Lilley — who has donated more than £250,000 to Reform — previously funded Johnson and the Vote Leave campaign. A CAST OF THOUSANDS Yusuf told members he will take the “best ideas” from right-wing think tanks — others include the Prosperity Institute (formerly known as Legatum) and the Taxpayers’ Alliance — at the same time as building out internal policy. But at other times they will disagree. Brown has also met Robert Jenrick, the ambitious Conservative shadow minister who is pushing on law and order. Reform is keen to stress that CFABB is independent of the party. Reform is involving its own MPs (Richard Tice, Lee Anderson and Sarah Pochin) in policy development, while Farage is also leaning on outsiders with real-world experience such as detective Colin Sutton and prison governor Vanessa Frake. Yusuf told a fringe event: “We have draughtsmen working on legislation. We will have thousands of pages of legislation ready to go.” Reform can rely too on its growing pool of elected officials in councils and mayoralties across England — expected to increase dramatically after May 2026 elections in Scotland and Wales. Yet this growing cast leaves some of Reform’s own foot soldiers in the dark. Helen Manson, interim chair of the South Cambridgeshire branch, told Yusuf — who focuses both on red meat policies such as migration and his personal interests like cryptocurrency — that she receives many questions on the doorstep about whether the party is ready for government. “We don’t know what Reform is doing. We can’t respond to that,” she said. Lobbyists at the conference for the first time felt similarly. One industry figure complained that Tice, when holding private business round tables, tends to lay out his “talking points” but does not respond well to challenge. A second said: “It was obvious that a small group of think tanks are currently the only engine room for ideas beyond Reform’s pet interests.” Speaking to POLITICO, Brown said: “You can’t really judge them on the policy for the next election because it’s early days. I think the idea is to build out a full and integrated policy platform and an implementation strategy before the next election.” But some senior Reform-linked figures resist opening the conversation too widely — as the center would lose control. Orr told a fringe event: “Don’t underestimate how much effect a small band of dedicated people in the cockpit of the nation can do.” Orr looked to an unlikely comparison — what he called Tony Blair’s “catastrophic and extremely consequential” Labour government in 1997. That, argued Orr, was run by “a gang of six … [and] they completely overturned the constitutional, legal, political and cultural landscape of the U.K. for 25 years. In fact, we’re going to spend the best part of the next 15 years trying to unravel it.” NO SUCCESSION PLAN? Small team or not, the importance of elevating the background players out of Farage’s shadow isn’t just desirable for Reform — it’s existential. When Farage denied on stage that his party is a “one-man band,” he used the example of the branded football shirts in the conference shop — pointing out that several other party figures had their names on shirts as well. Tellingly, when POLITICO visited the shop, only the “Farage” shirts were filling the shelves. An announcement that Farage was to sign shirts for 45 minutes (price for a signed shirt: £100) caused a jolt of excitement in the venue. More importantly, it was Farage’s return to the party last year that turbocharged its (already healthy) poll rating, and has senior Reform figures beginning to eye up which Whitehall department they would like to lead. Contrary to protestations by Farage’s allies, aides and the man himself, the party is still tied closely to him — to the point where some in Reform darkly wonder how the party would survive if he suddenly wasn’t on the scene. “If something happens [to Nigel] now, we’re fucked,” a Reform candidate in the last election said. In four years “maybe we’d be fine,” they said, but right now “there’s no one else with the charisma or the ability to pull people together.” Towler, his longtime former aide, has a more nuanced view. “There is nobody else in Britain who can do what he does,” he said, but “there is a bunch of driven people who want to change the country and I think they would still do it without him. It would be awful and it would be harder, but I really think the mood of the country is so febrile and so anti-the last two, that we need change. Nigel is a vector for that change — he’s not the only vector.” Farage is keen for the public to agree. He closed the conference by inviting all the main speakers for an on-stage singalong of the U.K’s national anthem led by the Greater Lincolnshire Mayor Andrea Jenkyns — who had earlier surprised attendees with a solo musical performance of her own-self written song Insomniac. The hope in Reform circles is that by boosting those around him, Farage will create figures substantial enough to be major players in a future government, while also reducing the party’s reliance on his oratory and leadership skills. “I think Reform is coming out of Nigel’s shadow to some extent,” said Brown. “All of a sudden there’s a raft of elected officials who are there. Are any of them Nigel yet? No, of course not. But Nigel has had 30 years so it’s very unfair to pick the consummate performer of his generation and say ‘why aren’t you like him?’ Nigel wasn’t like that in 2005.” Others point out that Farage, despite being electoral dynamite, remains a Marmite figure with harder-to-reach sections of the electorate. “Yes he’s a brilliant communicator and no one’s doubting that, but he’s a known quantity and a lot of voters don’t like him,” said one Labour Party official. Then there is the question of whether Farage — who spent years in lucrative TV work — really wants the grim responsibilities of being prime minister at all. His allies insist he does. Towler said: “He made a decision last year to get back involved. Is it his want, is it his ambition? Really, I don’t think it is. But does he think he’s the only person to break the duopoly of failure in this country? Yes. And he takes that responsibility deeply seriously.” Wherever things go from here, though, Farage remains a godhead for now — sometimes quite literally. “His body is stronger than anybody else’s,” said a sixth Reform figure, when asked about what the party would be without him. “He’s survived a plane crash and everything.” Some Reform figures are daring to dream of the party’s fortunes as similarly immortal. But things don’t always work out that way. John Johnston and Abby Wallace contributed reporting.