Politics

EU banks’ M&A secret weapon nears sell-by date

3 Mar 2025

The ‘Danish Compromise’ lets Europe’s lenders buy insurers while shielding the capital hit. Yet Italy’s battle over $15 bln Banco BPM suggests the tool can also be hard to deploy. If financial groups fear regulators could withdraw the wheeze, maybe it’s no longer much use.

Climate policy requires a more realistic approach

27 Feb 2025

Despite trillions of dollars spent on renewable power, hydrocarbons account for over 80% of the world’s primary energy. Financial markets have lost confidence in the pursuit of net zero. The best governments can do is encourage the search for viable new electricity sources.

US budget botches subtraction and multiplication

27 Feb 2025

Republicans are trying to preserve $4.5 trln of tax cuts by slashing government spending. The healthcare, food assistance and revenue collection programs being targeted, however, punch far above their weight economically. Higher debt and slower growth will only spook bond buyers.

Thames fix is acid test for UK, and privatisation

27 Feb 2025

Britain’s biggest water utility has received a number of rescue bids. If the likes of buyout group KKR can get a return while keeping Thames Water creditors onside, it would boost both the UK’s flagging FDI appeal and the global case for privatisation. That’s a big if, though.

Unpredictable White House vexes CEOs everywhere

27 Feb 2025

President Donald Trump’s upheaval of governance norms is a destabilizing force. His policies and pronouncements make it harder for bosses to allocate capital. In this week’s Viewsroom podcast, Breakingviews columnists discuss the impact on corporate America, and beyond.

Ukraine may yet get better of Trump on mining deal

26 Feb 2025

A draft plan to channel some of the country’s mineral wealth to the US looks like an asset grab. But if Volodymyr Zelenskiy can bind the president to the economic future of an independent Ukraine, and the start of its $520 bln reconstruction, Kyiv could still benefit.

Insurers will struggle to dodge climate-change tab

26 Feb 2025

From California to Delhi, losses from floods and wildfires are growing. Meanwhile, insurers are pulling cover to protect themselves. Governments can’t let that happen en masse, though, meaning the $3.6 trln property and casualty sector will end up paying one way or another.

Postal shakeup logic fits on back of a US stamp

24 Feb 2025

Donald Trump plans to commandeer the mail service, which lost $10 bln last year. It’s a bad target for radical change because unprofitable routes and capped prices help make it popular. As with national parks and fighting disease, public-good benefits outweigh the monetary costs.

How to raise $420 bln a year for Europe’s defence

24 Feb 2025

The partial breakdown in the transatlantic alliance means the continent may need to double its defence spending. The money will have to come from a mixture of national budgets, European Union funds and perhaps a new vehicle. Many sacred cows will be slaughtered on the way.

Merz’s victory opens new era of German uncertainty

23 Feb 2025

Election exit polls in Europe’s top economy saw the conservatives win 29% of the vote, but record results for the far-right AfD. CDU leader Friedrich Merz faces a messy coalition with the SPD. That may take months, at a time when both Germany and the EU need rapid decisions.

Corporate America is caught in a DEI ratchet

21 Feb 2025

From Citi to McDonald’s, companies are re-thinking diversity programs under hostile pressure from the Trump administration. The changes range from subtle tweaks through to scrapping targets, but the weaponization of vague legal threats pushes everyone in the same direction.

UK could lure US talent with a ‘non-Don’ regime

21 Feb 2025

Britain has upset expats by ditching ‘non-dom’ rules that allowed them to swerve tax on offshore wealth. It could replace them by luring healthcare experts and scientists alienated by President Donald Trump’s upheavals. An influx of talented US émigrés could help revive growth.

Imperialist ways flow from Oval Office to C-suites

20 Feb 2025

Money managers like BlackRock, which oversees some $12 trln, are grappling with SEC guidance that makes it trickier to pressure companies. It befits Donald Trump’s war on climate and diversity initiatives. The chilling effect will be broader, though, further boosting CEOs’ power.

German elections chart course for a lonely Europe

20 Feb 2025

Voters in the EU’s largest country are set to go to the polls as US leaders threaten to withdraw military support from the continent, economic malaise lingers, and the far-right AfD gains ground. In this Viewsroom podcast, Breakingviews columnists debate the electoral stakes.

White House plays with Social Security fire

19 Feb 2025

Cost-cutter-in-chief Elon Musk claimed to uncover massive fraud, citing 20 mln people over 100 years old in government files. Such histrionics and other clumsy administration meddling make it all too easy to fear that legit payments to seniors are a disaster waiting to happen.

Trump reciprocal tariffs are key test of EU unity

19 Feb 2025

The president’s threat to match foreigners’ US levies may mean he targets individual European Union member states. The EU’s common approach to trade complicates retaliation. If some countries in the bloc stop others from fighting back, it could ramp up internal strife.

Xi Jinping’s graft crackdown is fight without end

19 Feb 2025

The Chinese leader’s 12-year campaign has disciplined 6 mln officials and taken down powerful foes. It has also frightened bureaucrats into paralysis, adding to the malaise in the world’s second-largest economy. Yet Xi’s aim of stamping out corruption compels him to keep going.

Europe and Trump risk Russian sanctions showdown

17 Feb 2025

The US president’s wish for a quick truce in Ukraine could prompt him to lift the measures slapped on Russia by Washington since 2014. The EU and UK would be loath to follow suit, but that would leave them in a tight spot, notably if it helps Putin rebuild his military.

Ukraine peace talks are Europe’s moment of truth

17 Feb 2025

Since World War Two ended, the continent has resisted Russia by relying on its big brother in the United States. But now it faces pressure from Washington as well as from Moscow. Standing up to both while standing by Kyiv will depend on money, determination, and political unity.

Separation of powers is on trial in the US

14 Feb 2025

Federal judges have for now blocked White House bids to eliminate agencies and freeze $3 trln in funds, setting up a Supreme Court showdown. A bigger risk is that Donald Trump’s administration ignores adverse rulings, damaging government promises and the bedrock of open markets.