BRUSSELS — The European Parliament’s leading trade lawmakers on Wednesday
postponed a decision on whether to freeze a U.S. trade deal over Donald Trump’s
threat to annex Greenland.
MEPs are due to hold a vote on Jan. 26, laying out the European Parliament’s
position on lifting tariffs on U.S. industrial goods — one of the key planks of
a deal struck between Brussels and Washington last summer. But some MEPs, angry
at Trump’s behavior, don’t want the vote to go ahead, thereby freezing the
decision on lifting the tariffs.
But at a meeting of lawmakers leading on the topic, they decided to delay taking
a decision on whether to postpone or go ahead with the vote, awaiting the
outcome of high-stakes meetings between Washington, Nuuk and Copenhagen taking
place later Wednesday.
“We are not in a position to move the agreement to a vote today,” lead trade
lawmaker Karin Karlsbro, of the liberal Renew Europe, told POLITICO, adding that
clarity from the U.S. on Greenland was essential.
Discussions will continue next Wednesday, the chair of the international trade
committee, Bernd Lange, told POLITICO as he left the room.
Political groups are divided over what to do in response to Trump’s threats to
annex European territory.
The Socialists and Democrats, of which Lange is a member, are leaning toward
freezing the vote on the trade agreement.
“One camp is more like, OK, let’s cooperate with the U.S. in order to get the
maximum out, and there’s the other camp that says, OK we also need to show teeth
and not give in on everything,” explained Green lawmaker Anna Cavazzini, who is
also the chair of the internal market committee.
Cavazzini, who is in favor of freezing the deal, added that lawmakers agreed to
delay the decision to “observe the global situation,” adding that the groups
also need to agree on specific clauses in the final Parliament text.
The U.S. deal “will not be postponed,” assured EPP lawmaker Željana Zovko,
telling POLITICO on Wednesday that any delay would hurt businesses as it would
bring instability to transatlantic relations, while only Russia and China would
benefit from it.
Under the deal struck in July, the EU committed itself to legislation lifting
tariffs on U.S. industrial goods and lobsters, in exchange for Washington
reducing tariffs on European cars.
The deal is seen as lopsided in favor of Washington across party lines, but
lawmakers were willing to put up with it in exchange for having Trump commit to
protecting European security. As Greenland annexation threats continue, some no
longer see the point of the deal.
While the U.S. has upheld its end of the bargain on the car tariffs; the EU, so
far, has not, because its institutions must still approve their positions on the
Commission’s proposal. The lengthy process has already tested Washington’s
patience, with Trade Representative Jamieson Greer telling POLITICO in December
that the U.S. wouldn’t grant further tariff exemptions unless the EU keeps its
end of the bargain.
After the Council of the EU agreed on its position in late November, pressure is
rising on the European Parliament to vote on its own stance.
Tag - Trade Agreements
LONDON — The U.K. government must “dare to have
principles” and help Greenland repel threats by Donald Trump, a senior minister
in Greenland’s government told lawmakers in London.
Speaking after a briefing with MPs in the U.K. parliament Tuesday, Greenland’s
Business and Energy Minister Naaja Nathanielsen said: “Dialogue is really,
really what is needed at this point. And … even though problems in this world
[are] complex, this should not be a reason not to go into these complex
dialogues. They can be solved through dialogue instead of violence and force.”
Nathanielsen held the meetings amid growing pressure from the White House,
where Trump is ramping up his threats to take control of Greenland —
a minerals-rich, semi-autonomous territory within Denmark — including by
military force.
The region is essential to securing U.S. security against threats from Russia
and China, Trump claims. The U.S. will take over Greenland “the easy way” or
“the hard way,” he said last week.
Nathanielsen said: “We feel betrayed. We feel that the rhetoric is offensive, as
we have stated many times before — but also bewildering, because we have
done nothing but support the notion that Greenland is a part of the
American national self-interest.”
Nathanielsen made her plea to politicians in London after Denmark warned U.S.
aggression would cripple the NATO military alliance. The leaders of Denmark and
Greenland both say Greenland is “not for sale”.
DEAR KEIR
Asked about the message she was bringing to U.K. politicians and Prime Minister
Keir Starmer, Nathanielsen said: “To insist on having the dialogue, even though
it’s difficult, to dare to have principles and belief in international law. I
think we will all be asked about that in the next couple of years.”
She said she would “like to repeat my gratitude” for Starmer’s support of
Greenland, and said the U.K. must “insist upon the global community upholding
international law” and “stress the relevance of NATO as a relevant and important
alliance.”
Starmer has warned Trump that Greenland’s future must be decided by Denmark and
Greenland alone. Danish PM Mette Frederiksen has told the U.S. it has no right
to the Arctic territory.
But the U.K. leader is also keen not to get into fights with Trump on too many
fronts, at a time when his government is trying to both secure
a favorable U.S. trade deal and influence the White House’s approach to striking
peace between Russia and Ukraine.
Trump says that securing Greenland is essential for bolstering U.S.
security. But Nordic governments have rejected his claims that Chinese and
Russian vessels are operating in waters near Greenland.
Nathanielsen said Greenland did not “detect an actual threat” but was “quite
content” with increased monitoring around the Arctic.
Leaders in Greenland are clear that “we have no intention of becoming American”
and are “quite happy with being part of the Kingdom of Denmark,” she stressed.
She would not be drawn on whether Greenland would expect backing from NATO
allies, including the U.K. if the U.S. were to invade Greenland.
Keir Starmer has warned Trump that Greenland’s future must be decided by Denmark
and Greenland alone. | Pool Photo by Ludovic Marin via EPA
“If this scenario was to happen, I think everybody in this room and everybody in
your countries would have to figure out: What is this new world order about?”
she said.
In that scenario “we would all be under attack,” she added.
END OF APPEASEMENT
One British MP who helped organized Nathanielsen’s visit said it was time for
the U.K. government to take a firmer line on Trump’s aggression in the region.
“I have a huge sympathy, because I know and I can understand
it. If you’re sitting in a foreign office right now, then this is a problem
which would keep you awake at night,” said Brendan O’Hara, a Scottish National
Party MP and chair of the all-party parliamentary group on Greenland.
But the time for “trying to keep this guy [Trump] on board” has gone, O’Hara
added.
“I don’t blame them for trying. But when you appease somebody to this extent,
and then they still openly talk about invading a NATO ally
— it’s incredible,” he said.
Dywne Ryan Menezes, founder of the Polar Research and Policy Initiative
think tank, which also helped organize Tuesday’s briefing, said the U.K. could
do more to show its support for Greenland.
“I’ve been saying for years now: With Greenland, we can’t see it as a small
country.
It might be a small country population-wise, but it is a geopolitical
giant that’s getting hotter by the day,” he said.
Menezes urged ministers to prioritize free trade talks with Greenland. “It’s one
thing we can do to demonstrate that, you know, we take it seriously. It is
action, and not just words.”
Nathanielsen said she was meeting a trade minister from the Labour government,
Chris Bryant, later on Tuesday, as part of “very early discussions” on a
possible free trade agreement between the two countries.
“Of course, when hopefully all of this cools down a bit, that you continue your
collaboration investments in Greenland, we are quite happy about your
partnerships,” she added.
BIG DAYS
But the future of Greenland, she acknowledged, may not lie in its own hands.
Foreign ministers from Greenland and Denmark are set to meet U.S. Vice President
JD Vance and Secretary of State Marco Rubio in Washington Wednesday.
Greenland officials hope the meeting will allow them a better understanding of
the “actual wishes from the American side,” Nathanielsen said.
Asked whether a deal proposing U.S. control should be put to a vote inside
Greenland, she agreed this was essential.
“I think we should be able to have a say ourselves in the future of our
lives. For others, this might be a piece of land, but for us it’s home.”
President Donald Trump has set his sights on several targets in the Western
Hemisphere beyond Venezuela — from Mexico with its drug cartels to the political
cause célèbre of Cuba.
But one place is oddly missing from Trump’s list: Nicaragua.
This is a country led not by one, but two dictators. A place where the
opposition has been exiled, imprisoned or otherwise stifled so much the
word “totalitarian” comes to mind. A place the first Trump administration named
alongside Cuba and Venezuela as part of a “troika of tyranny.”
Yet it’s barely been mentioned by the second Trump administration.
That could change any moment, of course, but right now Nicaragua is in an
enviable position in the region. That got me wondering: What is the regime in
Managua doing right to avoid Trump’s wrath? What does it have that others don’t?
Or, maybe, what does it not have? And what does Nicaragua’s absence from the
conversation say about Trump’s bigger motives?
Current and former government officials and activists gave me a range of
explanations, including that the regime is making smart moves on battling drug
trafficking, that it’s benefiting from a lack of natural resources for Trump to
covet and that it doesn’t have a slew of migrants in the U.S.
Taken together, their answers offer one of the strongest arguments yet that
Trump’s actions in the Western Hemisphere or beyond are rarely about helping
oppressed people and more about U.S. material interests.
“The lesson from Nicaragua is: Don’t matter too much, don’t embarrass Washington
and don’t become a domestic political issue,” said Juan Gonzalez, a former Latin
America aide to then-President Joe Biden. “For an administration that doesn’t
care about democracy or human rights, that’s an effective survival strategy for
authoritarians.”
Some Nicaraguan opposition leaders say they remain optimistic, and I can’t blame
them. Trump is rarely consistent about anything. He’s threatening to bomb Iran
right now because, he says, he stands with protesters fighting an unjust regime
(albeit one with oil). So maybe he might direct some fury toward Nicaragua?
“The fact that Nicaragua is not at the center of the current conversation
doesn’t mean that Nicaragua is irrelevant,” Felix Maradiaga, a Nicaraguan
politician in exile, told me. “It means that the geopolitical interests of the
U.S. right now are at a different place.”
Nicaragua is run by Daniel Ortega and Rosario Murillo, a husband and wife who
take the term “power couple” somewhat literally. They are now co-presidents of
the Central American nation of 7 million. Over the years, they’ve rigged
elections, wrested control over other branches of the government and crushed the
opposition, while apparently grooming their children to succeed them. It has
been a strange and circular journey for a pair of one-time Sandinista
revolutionaries who previously fought to bring down a dynastic dictatorship.
Hundreds of thousands of Nicaraguans have fled the impoverished country, some to
the United States. Meanwhile, the regime has enhanced ties to Russia, China and
other U.S. adversaries, while having rocky relations with Washington. Nicaragua
is part of a free trade agreement with Washington, but it has also faced U.S.
sanctions, tariffs and other penalties for oppressing its people, eroding
democracy and having ties to Russia. Even the current Trump administration
has used such measures against it, but the regime hasn’t buckled.
Nicaraguan officials I reached out to didn’t respond with a comment.
Several factors appear to make Nicaragua a lower priority for Trump.
Unlike Venezuela, Nicaragua isn’t a major source of oil, the natural resource
Trump covets most. It has gold, but not enough of that or other minerals to
truly stand out. (Although yes, I know, Trump loves gold.) It’s also not a major
source of migrants to the U.S.
Besides, Trump has largely shut down the border. Unlike Panama, another country
Trump has previously threatened, it doesn’t have a canal key to global commerce,
although there’s occasional talk of building one.
Nicaragua may be placating the president and his team by taking moves to curb
drug trafficking. At least, that’s what a White House official told me when I
sought comment from the administration on why Nicaragua has not been a focus.
“Nicaragua is cooperating with us to stop drug trafficking and fight criminal
elements in their territory,” the official said. I granted the White House
official anonymity to discuss a sensitive national security issue.
It’s difficult to establish how this cooperation is happening, and the White
House official didn’t offer details. In fact, there were reports last year of
tensions between the two countries over the issue. A federal report in
March said the U.S. “will terminate its Drug Enforcement Administration (DEA)
operations in Nicaragua in 2025, partly due to the lack of cooperation from
Nicaragua’s agencies.”
The DEA didn’t reply when I asked if it had followed up with that plan, but it’s
possible the regime has become more helpful recently. The U.S. and Nicaragua’s
cooperation on drugs has waxed and waned over the years.
In any case, although drug runners use Nicaraguan territory, it’s not a major
cartel hub compared to some other countries facing Trump’s ire, such as Mexico.
Some Nicaraguan opposition activists have been hoping that U.S. legal moves
against Venezuelan leader Nicolas Maduro would expose narcotrafficking links
between Managua and Caracas, providing a reason for the U.S. to come down harder
on the regime.
They’ve pointed to a 2020 U.S. criminal indictment of Maduro that mentioned
Nicaragua.
But the latest indictment, unveiled upon Maduro’s Jan. 3 capture, doesn’t
mention Nicaragua.
When I asked the White House official why the newer indictment doesn’t mention
Nicaragua, the person merely insisted that “both indictments are valid.” A
spokesperson for the Department of Justice declined to comment.
Nicaraguan opposition leaders say that although the new indictment doesn’t
mention the country, they still hope it will come up during Maduro’s trial. My
sense, though, is that Ortega and Murillo are cooperating just enough with the
U.S. that the administration is willing to go easy on them for now.
It probably also doesn’t hurt that, despite railing frequently against
Washington, Ortega and Murillo don’t openly antagonize Trump himself. They may
have learned a lesson from watching how hard Trump has come down on Colombia’s
president for taunting him.
Another reason Nicaragua isn’t getting much Trump attention? It is not a
domestic political flashpoint in the U.S. Not, for example, the way Cuba has
been for decades. The Cuban American community can move far more votes than the
Nicaraguan American one.
Plus, none of the aides closest to Trump are known to be too obsessed with
Nicaragua. Secretary of State Marco Rubio has long denounced the Nicaraguan
regime, but he’s of Cuban descent and more focused on that island’s fate. Cuba’s
regime also is more dependent on Venezuela than Nicaragua’s, making it an easier
target.
Ortega and Murillo aren’t sucking up to Trump and striking deals with him like
another area strongman, El Salvador’s Nayib Bukele. But, especially since the
U.S. capture of Maduro, the pair seem bent on proving their anti-imperialist
credentials without angering Trump. The results can be head-scratching.
For example, in recent days, the regime is reported to have detained around 60
people for celebrating Maduro’s capture. But around the same time, the regime
also reportedly freed “tens” of prisoners, at least some of whom were critics of
Ortega and Murillo. Those people were released after the U.S. embassy in the
country called on Nicaragua to follow in Venezuela’s recent footsteps and
release political prisoners. However, the regime is reported to have described
the releases as a way to commemorate 19 years of its rule.
Alex Gray, a former senior National Security Council official in the first Trump
administration, argued that one reason the president and his current team should
care more about Nicaragua is its ties to U.S. adversaries such as Russia and
China — ties that could grow if the U.S. ignores the Latin American country.
Russia in particular has a strong security relationship with the regime in
Managua. China has significantly expanded its ties in recent years, though more
in the economic space. Iran also has warm relations with Managua.
Nicaragua is the “poster child” for what Trump’s own National Security
Strategy called the Trump Corollary to the Monroe Doctrine, which warns the U.S.
will deny its adversaries the ability to meddle in the Western Hemisphere, Gray
said.
The White House official said the administration is “very closely” monitoring
Nicaragua’s cooperation with U.S. rivals.
But even that may not be enough for Trump to prioritize Nicaragua. Regardless of
what his National Security Strategy says, Trump has a mixed record of standing
up to Russia and China, and Nicaragua’s cooperation with them may not be as
worrisome as that of a more strategically important country.
With Trump, who himself often acts authoritarian, many things must fall in place
at the right moment for him to care or act, and Nicaraguan opposition activists
haven’t solved that Rubik’s Cube.
Many are operating in exile. (In 2023, Ortega and Murillo put 222 imprisoned
opposition activists on a plane to the U.S., then stripped them of their
Nicaraguan citizenship. Many are now effectively stateless but vulnerable to
Trump’s immigration crackdown.)
It’s not lost on these activists that Trump has left much of Maduro’s regime in
place in Venezuela. It suggests Trump values stability over democracy, human
rights or justice.
Some hope Ortega and Murillo will be weakened by the fall of their friend,
Maduro. The two surely noticed how little Russia, China and others did to help
the former leader. Maybe Nicaragua’s co-dictators will ease up on internal
repression as one reaction.
“When you get this kind of pressure, there are things that get in motion,” said
Juan Sebastian Chamorro, a Nicaraguan politician forced out of the country.
“They are feeling the heat.”
BRUSSELS — Even after most member countries backed the EU’s landmark trade
accord with Latin America, opponents of the deal in France, Poland and the
European Parliament are still determined to derail or delay it.
As a result, even after European Commission President Ursula von der Leyen flies
to Paraguay this Saturday to sign the accord with the Mercosur bloc after over
25 years of talks, it could still take months before we finally find out when,
or even whether, it will finally take effect.
The culprit is the EU’s tortuous decision-making process: After the curtain came
down on Friday on deliberations in the Council, the intergovernmental branch of
the bloc, a new act will now play out in the European Parliament. Ratification
by lawmakers later this year is the most likely outcome — but there will be high
drama along the way.
“It has become irrational,” said an EU diplomat, speaking on condition of
anonymity. “If the European Parliament refuses, we will have a European crisis.”
Proponents argue that the deal with Mercosur — which groups Argentina, Brazil,
Paraguay and Uruguay — is the bloc’s best shot at rallying friends across the
world as the EU tries to counter Donald Trump’s aggressive moves (the latest
being the U.S. president’s threats to annex Greenland).
But more than 140 lawmakers are already questioning the legal basis of the
agreement, concerned that it breaches the EU treaties. They want it sent to the
Court of Justice of the EU for a legal review, which could delay it for as long
as two years.
Political group leaders agreed before the Christmas break to submit this
referral to a vote as soon as governments signed off on the deal. That vote is
now expected at next week’s plenary, a official with the Parliament said.
Yet while the rebel MEPs have enough votes to call a floor debate, they likely
lack the majority needed in the 720-seat Parliament to pass the resolution
itself.
“I don’t think that the substance of the legal challenge is going anywhere. This
is fabricated, it’s a lot of hot air — both in terms of environmental [and]
health provisions, in terms of national parliaments. All of this has been tried
and tested,” said David Kleimann, a senior trade expert at the ODI Europe think
tank in Brussels.
LEGAL ROADBLOCKS
The challenge in the Parliament is only one front. The deal’s biggest opponents,
Poland and France, are also fighting back.
Polish Agriculture Minister Stefan Krajewski said Friday he would push for the
government to also submit a complaint to the Court of Justice.
“We will not let the deal go any further,” he said, adding that Poland would ask
the court to assess whether the Mercosur pact is legally sound. On the same day,
protesting farmers spilled manure in front of his house.
“We will not let the deal go any further,” said Polish Agriculture Minister
Stefan Krajewski. | Olivier Matthys/EPA
Polish MEP Krzysztof Hetman, a member of the center-right European People’s
Party and a political ally of Krajewski, said the referrals of the Parliament
and of member states would play out separately with the same aim in mind.
“If one succeeds, the other might not be necessary,” he said, adding that while
the court considers the complaint, the deal would effectively be on ice.
French President Emmanuel Macron, meanwhile, is under huge pressure from his
political opponents to do more to stall the deal. France, Poland, Austria,
Ireland and Hungary voted against the deal last week while Belgium abstained.
That left the anti-Mercosur camp shy of the blocking minority needed to kill the
deal.
On Wednesday, the National Assembly will vote on two separate no-confidence
motions submitted by the far-right National Rally and the far-left France
Unbowed.
Even if opposition to the Mercosur deal remains unanimous, the two motions have
little to no chance of toppling the French government: The left is unlikely to
back the National Rally text, while the center-left Socialists are withholding
support for the France Unbowed motion. But nothing can be ruled out in France’s
fragmented parliament.
REALITY CHECK
Even some of the rebel MEPs admit their challenge is unlikely to succeed — and
that the Parliament might still back the overall deal in a vote later this
year.
“It will be very difficult now that the Council has approved it,” said Hetman,
the Polish MEP. “The supporters of the agreement know this, which is why they
sabotaged the vote on the referral in November and December.”
Others opponents still see a chance to topple it, and are optimistic that the
legal challenge can gather enough support.
“We want to delay the Mercosur adoption process as long as possible,” Manon
Aubry, co-chair of The Left group, told POLITICO before the Christmas break. She
also saw signs that a majority of MEPs could come out against the deal: “I bet
there are even more MEPs willing to make sure that the agreement is fully in
line with the treaties.”
If the judicial review is rejected, the Parliament would hold a yes-no vote to
ratify the trade agreement, without being able to modify its terms.
Such a vote could be scheduled in the May plenary at the earliest, Bernd Lange,
the chair of the chamber’s trade committee, told POLITICO. Lange, a German
Social Democrat, said he was confident of a “sufficient” majority to pass the
deal.
Pedro López de Pablo, a spokesperson for the EPP — von der Leyen’s own political
family and the EU’s largest party — vowed there was a majority for the agreement
in the EPP and dismissed the legal maneuvering.
“It is clear that such a move is politically motivated to delay the
implementation of the deal rather than the product of a legal analysis,” he
said.
Giorgio Leali contributed to this report.
BRUSSELS — The EU and Mercosur will sign their long-awaited trade agreement on
Saturday, with European Commission President Ursula von der Leyen traveling to
Paraguay on Jan. 17 for the signing ceremony.
Commission spokesperson Thomas Regnier confirmed von der Leyen’s travel plans to
POLITICO. She will be joined by European Council President António Costa, his
cabinet confirmed.
The trip comes after a majority of EU member countries on Friday voted in favor
of signing the deal.
The EU-Mercosur deal is set to create the world’s largest free-trade area,
covering some 700 million people. From Brussels’ perspective, the agreement is a
major geopolitical win in light of China’s rising share in trade and influence
in Latin America and U.S. President Donald Trump’s tariff policies.
Aside from Paraguay, the Mercosur bloc consists of Argentina, Brazil and
Uruguay.
When NATO members agreed last summer to increase defense spending, they lavished
praise on Donald Trump for forcing the issue, believing that flattery would go a
long way to keeping the president committed to the alliance and the cause of
transatlantic security.
But the takeaway for Trump, it turns out, was something else altogether — that
bullying and threats were highly effective means of compelling longtime allies
to act. And that’s largely why, when it comes to his pursuit of Greenland, he is
returning to the same playbook, starting from a place of outward hostility,
believing that’s what it will take to get Denmark to sell the island to the
United States.
“He got all these countries to pay their fair share into NATO security, and he
did it by fear and sheer force of will,” said a senior White House official who
was granted anonymity to speak candidly about the president’s strategy. “He’s
been proven right about that aspect, and he’s going to be proven right about
this.”
Indeed, Europe has already bent the knee to Trump on multiple fronts. Beyond the
defense spending, a European “coalition of the willing” has taken on the
entirety of backing Ukraine with billions in defense aid and the European Union
swallowed a 15 percent U.S. tariff on most European goods to avoid any further
escalation.
But Trump’s obsession with taking Greenland is the kind of existential threat to
European sovereignty that, in the eyes of some European officials and diplomats
who spoke to POLITICO, demands a stronger response. The most they feel they
could do to placate him is commit more troops.
“Once you start changing borders by caprice or by force, you don’t know where
you end up,” said one of the diplomats granted anonymity to discuss the
sensitive subject.
Trump’s saber rattling about taking Greenland from Denmark, echoed and amplified
by a number of top aides, ratcheted up within hours of the successful military
operation that removed longtime Venezuelan dictator Nicolás Maduro from power.
“It’s a very effective message,” the senior White House official said. “Everyone
now knows that America is not playing around, especially now.”
Trump, speaking to reporters during an event at the White House on Friday,
stated that taking control of Greenland is only a matter of when — and how.
“We are going to do something on Greenland, whether they like it or not, because
if we don’t do it, Russia or China will take over Greenland, and we’re not going
to have Russia or China as a neighbor,” Trump said. “I would like to make a deal
the easy way, but if we don’t do it the easy way, we will do it the hard way.”
Trump even questioned Denmark’s claim on Greenland. “I’m a fan of Denmark too,”
he said. “But you know, the fact that they had a boat land there 500 years ago
doesn’t mean that they own the land.”
Denmark has controlled Greenland for roughly 300 years and in 1916 the United
States formally recognized Denmark’s interests in Greenland in exchange for the
Danish West Indies, which became the U.S. Virgin Islands.
The president and his top aides have repeatedly emphasized that Trump’s threats
should not be dismissed, especially if and when diplomacy runs aground.
And the president and his top aides are repeatedly emphasizing that Trump’s
threats should not be dismissed, especially if and when diplomacy runs aground.
“My advice to European leaders and anybody else would be to take the president
seriously,” Vice President JD Vance said on Thursday, calling on Europeans to
take more steps to ensure Greenland’s security given the increased presence of
China and Russia in Arctic waters. “If they’re not, the United States is going
to have to do something about it. What that is, I’ll leave that to the
president.”
After Trump raised the idea of claiming Greenland at the beginning of his term,
Danish officials sought to keep the matter low-profile, hoping it would
disappear. Now, with Trump’s interest renewed, they have urged their European
counterparts to be more vocal about it. Denmark and six European leaders issued
a joint statement saying Denmark and Greenland are the ones who “decide on
matters concerning Denmark and Greenland.”
With Secretary of State Marco Rubio expected to meet with his Danish counterpart
next Wednesday in Washington, Vance and other administration officials suggested
that military force was a long way off. Rubio privately told lawmakers earlier
this week that Trump was looking to buy the island from Denmark rather than
mount an immediate military operation, according to a person familiar with the
matter and granted anonymity to describe the conversation.
But senior officials have both publicly and privately refused to rule out taking
Greenland by force, which would effectively end NATO altogether — a cost that
Trump made clear he’s aware of in an interview with the New York Times, stating
that, eventually, “it may be a choice.”
Speaking so openly about rupturing a transatlantic alliance that has endured
since World War II, however shocking to Europeans, isn’t new for Trump. His push
for NATO to increase its defense spending began at the organization’s 2018
summit in Brussels where he threatened to withdraw the U.S. from the alliance if
things didn’t change. Russia’s 2022 invasion of Ukraine, coupled with a growing
belief among NATO countries that he might actually pull America out of the
alliance during a second term, finally led member countries to increase their
defense spending.
Threatening a military takeover of Greenland as a last resort just days after
the operation to oust Maduro has forced Europeans — and even some of Trump’s own
allies and aides — to ponder just how far he might go.
“The messages we hear regarding Greenland are extremely concerning,” EU foreign
policy chief Kaja Kallas told reporters in Cairo on Thursday. “We have had
discussions among the Europeans [on] if this is a real threat, and if it is,
then what would be our response?”
Denmark is trying to find clarity and build relationships in the U.S. The Danish
embassy earlier this year hired Mercury Public Affairs, the former home of White
House chief of staff Susie Wiles.
And this week, Danish representatives met with Republican and Democratic
lawmakers on Capitol Hill. Danish Ambassador Jesper Møller Sørensen and Jacob
Isbosethsen, the head of Greenland representation, “expressed an openness to
discuss any measure that would enhance the security of the United States, while
respecting the sovereignty of the Kingdom of Denmark” during a Tuesday meeting,
Rep. Mike Flood (R-Neb.) said in a statement.
At the height of the Cold War, the U.S. had 10,000 troops and operated multiple
installations in Greenland. The U.S. pulled back when it ended and now has one
base and about 200 troops there.
Trump’s administration has rebuffed Danish offers for the U.S. to station more
troops in Greenland or open additional bases. His advisers have sent mixed
messages about what Washington is looking for in private meetings with European
counterparts.
And Trump’s comments to the New York Times this week suggested that a more
robust defense agreement and joint investment deals may not be enough for the
former real estate executive. “Ownership is very important,” he said. “Because
that’s what I feel is psychologically needed for success…ownership gives you
things and elements that you can’t get from just signing a document.”
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Some Europeans have left private discussions feeling Trump is resolute about
acquiring Greenland one way or another. Others say some of his aides like Rubio
appear to be seeking an off ramp, according to two people familiar with the
matter and granted anonymity to discuss it. The National Security Council’s
director for the Western Hemisphere, Michael Jenner, has been the one to take
meetings with diplomats about the Trump effort rather than the Europe director —
highlighting the difference in how the U.S. and Europe view the matter.
For European officials, Greenland is a European security issue, while for Trump
and his team, it is the latest extension of the so-called Donroe Doctrine that
envisions U.S. control over its backyard.
“They’ve got this intellectual framework for thinking about the whole
hemisphere, and they’re going to tie Greenland into that, which makes a lot of
sense. So we didn’t have that holistic vision in the first term,” said Alex
Gray, who served in the first Trump National Security Council and is now CEO of
American Global Strategies.
But Europeans have struggled to respond. “Danes and the Europeans at large need
to do much better,” said former NATO policy planning director Fabrice Pothier,
now CEO of Rasmussen Global, arguing that Trump’s desire for Greenland is not
rational, economic or rooted in security concerns.
“The problem is that this is not something you can easily address through
economic sweeteners or national security arrangements,” he said.
NATO, too, is now discussing options to strengthen its Arctic flank, after
Trump’s claims that Russian and Chinese ships were swarming Greenland. That new
effort is driven by a genuine need to beef up its Arctic presence, according to
two NATO diplomats granted anonymity to describe the motivations, as well as a
desire to take Trump’s concerns seriously.
Some European officials fear that the Trump team might seek to acquire Greenland
as part of a grand bargain for Ukraine.
That is not something the president is likely to do, the senior White House
official said.
But, they said, everything is subject to change.
“We’re gonna try to exhaust all our diplomatic options and see how, see if we’re
moving in positive steps,” the official said. “What we have done with everything
is we go along and then we reassess every step of the way. It’s just like a
business deal.”
Jacopo Barigazzi, Victor Jack and Seb Starcevic in Brussels contributed
reporting.
Europe’s biggest ever trade deal finally got the nod Friday after 25 years of
negotiating.
It took blood, sweat, tears and tortured discussions to get there, but EU
countries at last backed the deal with the Mercosur bloc — paving the way to
create a free trade area that covers more than 700 million people across Europe
and Latin America.
The agreement, which awaits approval from the European Parliament, will
eliminate more than 90 percent of tariffs on EU exports. European shoppers will
be able to dine on grass-fed beef from the Argentinian pampas. Brazilian drivers
will see import duties on German motors come down.
As for the accord’s economic impact, well, that pales in comparison with the
epic battles over it: The European Commission estimates it will add €77.6
billion (or 0.05 percent) to the EU economy by 2040.
Like in any deal, there are winners and losers. POLITICO takes you through who
is uncorking their Malbec, and who, on the other hand, is crying into the
Bordeaux.
WINNERS
Giorgia Meloni
Italy’s prime minister has done it again. Giorgia Meloni saw which way the
political winds were blowing and skillfully extracted last-minute concessions
for Italian farmers after threatening to throw her weight behind French
opposition to the deal.
The end result? In exchange for its support, Rome was able to secure farm market
safeguards and promises of fresh agriculture funding from the European
Commission — wins that the government can trumpet in front of voters back home.
It also means that Meloni has picked the winning side once more, coming off as
the team player despite the last-minute holdup. All in all, yet another laurel
in Rome’s crown.
The German car industry
Das Auto hasn’t had much reason to cheer of late, but Mercosur finally gives
reason to celebrate. Germany’s famed automotive sector will have easier access
to consumers in LatAm. Lower tariffs mean, all things being equal, more sales
and a boost to the bottom line for companies like Volkswagen and BMW.
There are a few catches. Tariffs, now at 35 percent, aren’t coming down all at
once. At the behest of Brazil, which hosts an auto industry of its own, the
removal of trade barriers will be staggered. Electric vehicles will be given
preferential treatment, an area that Europe’s been lagging behind on.
Ursula von der Leyen
Mercosur is a bittersweet triumph for European Commission President Ursula von
der Leyen. Since shaking hands on the deal with Mercosur leaders more than a
year ago, her team has bent over backwards to accommodate the demands of the
skeptics and build the all-important qualified majority that finally
materialized Friday. Expect a victory lap next week, when the Berlaymont boss
travels to Paraguay to sign the agreement.
Giorgia Meloni saw which way the political winds were blowing and skillfully
extracted last-minute concessions for Italian farmers after threatening to throw
her weight behind French opposition to the deal. | Ettore Ferrari/EPA
On the international stage, it also helps burnish Brussels’ standing at a time
when the bloc looks like a lumbering dinosaur, consistently outmaneuvered by the
U.S. and China. A large-scale trade deal shows that the rules-based
international order that the EU so cherishes is still alive, even as the U.S.
whisked away a South American leader in chains.
But the deal came at a very high cost. Von der Leyen had to promise EU farmers
€45 billion in subsidies to win them over, backtracking on efforts to rein in
agricultural support in the EU budget and invest more in innovation and
growth.
Europe’s farmers
Speaking of farmers, going by the headlines you could be forgiven for thinking
that Mercosur is an unmitigated disaster. Surely innumerable tons of South
American produce sold at rock-bottom prices are about to drive the hard-working
French or Polish plowman off his land, right?
The reality is a little bit more complicated. The deal comes with strict quotas
for categories ranging from beef to poultry. In effect, Latin American farmers
will be limited to exporting a couple of chicken breasts per European person per
year. Meanwhile, the deal recognizes special protections for European producers
for specialty products like Italian parmesan or French wine, who stand to
benefit from the expanded market. So much for the agri-pocalpyse now.
Mercosur is a bittersweet triumph for European Commission President Ursula von
der Leyen. | Olivier Matthys/EPA
Then there’s the matter of the €45 billion of subsidies going into farmers’
pockets, and it’s hard not to conclude that — despite all the tractor protests
and manure fights in downtown Brussels — the deal doesn’t smell too bad after
all.
LOSERS
Emmanuel Macron
There’s been no one high-ranking politician more steadfast in their opposition
to the trade agreement than France’s President Emmanuel Macron who, under
enormous domestic political pressure, has consistently opposed the deal. It’s no
surprise then that France joined Poland, Austria, Ireland and Hungary to
unsuccessfully vote against Mercosur.
The former investment banker might be a free-trading capitalist at heart, but he
knows well that, domestically, the deal is seen as a knife in the back of
long-suffering Gallic growers. Macron, who is burning through prime ministers at
rates previously reserved for political basket cases like Italy, has had
precious few wins recently. Torpedoing the free trade agreement, or at least
delaying it further, would have been proof that the lame-duck French president
still had some sway on the European stage.
Surely innumerable tons of South American produce sold at rock-bottom prices are
about to drive the hard-working French or Polish plowman off his land, right? |
Darek Delmanowicz/EPA
Macron made a valiant attempt to rally the troops for a last-minute
counterattack, and at one point it looked like he had a good chance to throw a
wrench in the works after wooing Italy’s Meloni. That’s all come to nought.
After this latest defeat, expect more lambasting of the French president in the
national media, as Macron continues his slow-motion tumble down from the
Olympian heights of the Élysée Palace.
Donald Trump
Coming within days of the U.S. mission to snatch Venezuelan strongman Nicolás
Maduro and put him on trial in New York, the Mercosur deal finally shows that
Europe has no shortage of soft power to work constructively with like-minded
partners — if it actually has the wit to make use of it smartly.
Any trade deal should be seen as a win-win proposition for both sides, and that
is just not the way U.S. President Donald Trump and his art of the geopolitical
shakedown works.
It also has the incidental benefit of strengthening his adversaries — including
Brazilian President and Mercosur head honcho Luiz Inácio Lula da Silva — who
showed extraordinary patience as he waited on the EU to get their act together
(and nurtured a public bromance with Macron even as the trade talks were
deadlocked).
China
China has been expanding exports to Latin America, particularly Brazil, during
the decades when the EU was negotiating the Mercosur trade deal. The EU-Mercosur
deal is an opportunity for Europe to claw back some market share, especially in
competitive sectors like automotive, machines and aviation.
The deal also strengthens the EU’s hand on staying on top when it comes to
direct investments, an area where European companies are still outshining their
Chinese competitors.
Emmanuel Macron made a valiant attempt to rally the troops for a last-minute
counterattack, and at one point it looked like he had a good chance to throw a
wrench in the works after wooing Italy’s Meloni. | Pool photo by Ludovic
Marin/EPA
More politically, China has somewhat succeeded in drawing countries like Brazil
away from Western points of view, for instance via the BRICS grouping,
consisting of Brazil, Russia, India, China and South Africa, and other
developing economies. Because the deal is not only about trade but also creates
deeper political cooperation, Lula and his Mercosur counterparts become more
closely linked to Europe.
The Amazon rainforest
Unfortunately, for the world’s ecosystem, Mercosur means one thing: burn, baby,
burn.
The pastures that feed Brazil’s herds come at the expense of the nation’s
once-sprawling, now-shrinking tropical rainforest. Put simply, more beef for
Europe means less trees for the world. It’s not all bad news for the climate.
The trade deal does include both mandatory safeguards against illegal
deforestation, as well as a commitment to the Paris Climate Agreement for its
signatories.
European Commission President Ursula von der Leyen is likely to face a motion of
censure over the Mercosur trade deal in the coming weeks, according to the
far-right Patriots for Europe group.
The chair of the Patriots, French heavyweight Jordan Bardella, announced the
motion of censure plan on Thursday evening on X. His party, the National Rally,
opposes the trade agreement between the EU and the South American Mercosur bloc,
which has been championed by von der Leyen. A qualified majority of EU member
countries on Friday approved the long-awaited trade deal, which France opposed.
“Hope we file it [the censure motion] for a vote this January session,” a senior
Patriots official told POLITICO.
Once filed, the Parliament’s legal team will check the motion, and if approved,
Parliament President Roberta Metsola will contact all MEPs with the details.
If the choreography of previous censure motions is followed, a debate is likely
to be held on Monday, Jan. 19, with a vote on Thursday, Jan. 22.
Scheduling a motion of censure requires the backing of 72 lawmakers. As the
Patriots have 82 MEPs, they do not need the support of other political groups.
The motion — which, if successful, would see von der Leyen and all 26 of her
commissioners dismissed — is almost certain to fail, as it would require a
two-thirds majority of votes cast.
There have been three previous attempts to bring down von der Leyen through
votes of no-confidence — two brought by the far right and one by the far left.
All have failed.
Bardella also accused French President Emmanuel Macron of being a hypocrite by
pretending to oppose the Mercosur deal and “betraying French farmers” by not
doing enough to stop it.
Bardella said the National Rally would submit a motion of no confidence against
the French government.
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?
The Italian government is satisfied with new funding promised by Brussels to
European farmers and is signaling that it may cast its decisive vote in favor of
the EU’s huge trade deal with the Latin American Mercosur bloc.
Ahead of Friday’s vote by EU member countries, Foreign Minister Antonio Tajani
said Rome was happy with the European Commission’s efforts to make the deal more
palatable. Agriculture Minister Francesco Lollobrigida also said the accord
represented an opportunity — especially for food exporters.
“Italy has never changed its position: We have always supported the conclusion
of the agreement,” Tajani said on Wednesday evening.
Yet they stopped short of saying outright that Italy would vote in favor of the
deal. Instead, within sight of the finish line, Rome is pressing to tighten
additional safeguards to shield the EU farm market from being destabilized by
any potential influx of South American produce.
Rome’s endorsement of the accord, which has been a quarter century in the making
and would create a free-trade zone spanning more than 700 million people, is
crucial. A qualified majority of 15 of the EU’s 27 countries representing 65
percent of the bloc’s population is needed. Italy, with its large population,
effectively holds the casting vote.
France and Poland are still holding out against a pro-Mercosur majority led by
Germany — but they lack the numbers to stall the deal. If it goes through,
Commission President Ursula von der Leyen could fly to Paraguay to sign the
accord as soon as next week. The bloc’s other members are Brazil, Argentina and
Uruguay.
‘AN EXCELLENT OPPORTUNITY’
Italy praised a raft of additional measures proposed by the Commission —
including farm market safeguards and fresh budget promises on agriculture
funding — as “the most comprehensive system of protections ever included in a
free trade agreement signed by the EU.”
Tajani, who as deputy prime minister oversees trade policy, has long taken a
pro-Mercosur position. He said the deal would help the EU diversify its trade
relationships and boost “the strategic autonomy and economic sovereignty of
Italy and our continent.”
Even Lollobrigida, who has sympathized in the past with farmers’ concerns on the
deal, is striking a more positive tone.
At a meeting hosted by the Commission in Brussels on Wednesday, Lollobrigida
described Mercosur as “an excellent opportunity.” The minister, who is close to
Prime Minister Giorgia Meloni and is from her Brothers of Italy party, also said
its provisions on so-called geographical indications would help Italy promote
its world-famous delicacies in South America.
It would mean no more ‘Parmesão,’” he said, referring to Italian-sounding
knockoffs of the famed hard cheese.
ONE MORE THING …
Lollobrigida said Italy could back the deal if the farm market safeguards are
tightened.
The EU institutions agreed in December to require the Commission to investigate
surges in imports of beef or poultry from Mercosur if volumes rise by 8 percent
from the average, or if those imports undercut comparable EU products by a
similar margin.
Even Francesco Lollobrigida, who has sympathized in the past with farmers’
concerns on the deal, is striking a more positive tone. | Fabio Cimaglia/EPA
“We want to go from 8 percent to 5 percent. And we believe that the conditions
are there to also reach this goal,” Lollobrigida told Italian daily IlSole24Ore
in an interview on Thursday.
Meloni pulled the emergency brake at a pre-Christmas EU summit, forcing the
Commission to delay the final vote on the deal while it worked on ways to
address her concerns around EU farm funding. In response Von der Leyen proposed
this week to offer earlier access to up to €45 billion in agricultural funding
under the bloc’s next long-term budget.
Giorgio Leali reported from Paris and Gerardo Fortuna from Brussels.