LONDON — When Prime Minister Andy Burnham arrived a few minutes late to a meeting with regional mayors on Thursday, his Cabinet ally Angela Rayner had a name for it. She joked they were on “Andy Time.”

The rest of Britain is beginning to learn what that feels like.

Burnham entered 10 Downing Street three months ago promising a “new economic model.” However, the prime minister’s first budget next Wednesday will ask voters to wait a bit longer for it.

John Healey, Burnham’s top finance minister, is expected to announce cuts to business regulation, new steps to move power out of Whitehall and targeted cost-of-living help as energy bills surge due to the wars in Iran and Ukraine.

But while London’s banking sector is resigned to a tax rise, Healey is broadly not expected to completely overhaul tax regimes that many in Burnham’s center-left Labour Party have long seen as unfair. These include business rates, which treat high street shops more harshly than out-of-town delivery warehouses; capital gains tax, which charges less on income from assets than from work; and council tax on homes, which is based on valuations from 1991. 

Healey and his allies are already rolling out a pitch for lower-key changes to tax and spending than his predecessor, Rachel Reeves, insisting budgets are about more than their bottom-line “scorecard.” They point instead to thinning the “sludge” of business bureaucracy and helping “bloody-minded” entrepreneurs.

The reason behind this is about much more than war dragging on the British economy and keeping inflation high. Many radical reforms just aren’t ready yet. 

Next Wednesday will mark just 100 days since Burnham took office, after a whirlwind special election that ended the Greater Manchester mayor’s decade-long absence from parliament.

Burnham’s much-touted “10-year plan” to rewire Britain’s public realm is far from finished; its publication date is edging closer to Christmas. And many granular details of his plan for reform — including higher defense spending, welfare reforms and ownership of the water sector — will only come at a multi-year spending review some time in 2027. Healey is still trying to decide when that will happen.

POLITICO spoke to 22 current and former government officials, MPs and people who speak regularly to Downing Street to map out Burnham and Healey’s strategy, most of whom were granted anonymity to speak frankly. 

Several offered the view that Healey’s budget was designed to act as a stepping stone toward the 10-year plan and spending review, while not spooking the bond markets — which Burnham complained Britain was “in hock to” last year. That is despite Britain inching closer to a general election that the prime minister must call by summer 2029.

“They want it to be a non-event,” one person who speaks regularly to both 10 and 11 Downing Street said of the budget. 

Expectation management

This narrative has already left Healey’s allies bristling.

People are “accusing us of not making decisions and kicking the can down the road when actually this budget is incredibly difficult,” said one government official. This person added: “This is the first budget of this country that will have come to the House of Commons for scrutiny while the war in the Middle East is raging and an illegal invasion of Ukraine continues by Russia. The idea that this is by any means small is quite difficult to stomach.”

A second U.K. government official argued the budget would be “as ambitious as possible within the political context.” But a third government official said they believed the budget would be more “steady as she goes” than finished solutions to Britain’s problems.

Ruth Curtice, a former Treasury official who is now chief executive of the Resolution Foundation, a think tank focused on living standards, added: “In some ways it’s quite surprising to have such a small budget, given we have a new prime minister and chancellor and quite a lot has happened in the world since the last one.”

The opposition Conservative Party is preparing to seize on this “deferral budget” theme. Tory strategists are ready to paint it as a cowardly act from an administration they claim prefers sweeping vision to hard decisions. “Why act tomorrow when you can act today?” said one shadow cabinet minister. “Have some balls!”

Cameron Brown, a former Tory special adviser in the Treasury, was more sympathetic. “There’s no need to crystallize any kind of savings or cuts now,” when the spending review is looming anyway, he argued. Brown predicted a “tight and concise” but “intellectually coherent” package: “[Healey] will have some buffer at the end, a nice little cost of living package, Labour MPs will be happy, he’ll target the bad people — gamblers and banks — and he’ll push things down the road a bit.”

A Labour official voiced concern that a cautious budget could lose the goodwill Burnham has built with the public — as happened to his predecessor Keir Starmer, who promised “change” in his 2024 manifesto.

And Reeves’ former Political Secretary Matt Pound urged “caution” on deferring too many decisions to the 2027 spending review. “The truth is that they could end up putting a monumental amount of pressure on that spending review,” he told POLITICO’s Westminster Insider podcast in an interview released Friday. “There are already a lot of pressures they will need to fund.”

Hard to get

“Energy” will be the key thread linking Healey’s messages for the budget, a fourth U.K. government official said — from “breathing space” help with bills to building a more resilient infrastructure network. 

There will also be a “fiscal devolution roadmap” on budget day, setting out terms of how regional mayors can get more power and money and drawn up partly by Burnham’s new Manchester outpost, No. 10 North. Legislation to let them impose tourist taxes will be published in the coming weeks. And officials have talked behind the scenes about procurement and boosting Britain’s heavy industries; the budget needs to find almost £5 billion to plug a hole in a defense investment plan unveiled under Starmer.

Targeted cost-of-living measures appear likely to include scrapping “standing charges” on domestic gas bills, which cost the average household just over £100 a year. Burnham said Wednesday that he had asked Healey to look at the issue — though any help could be eclipsed by a predicted £276 rise in domestic bills this January.

The other message will be that the Treasury can do big, consequential things without raising taxes. Healey will make “a political argument that actually there are other types of budgets that you can have,” said the first government official quoted above, “busting through some of that sludge and ripping up a lot of that red tape.” Cash-strapped chancellors have reached for regulatory reform before, with mixed success.

MPs are looking closely at cost-of-living support. One backbencher in an affluent seat said any help had to be significant, because even their well-off constituents were struggling to take the holidays they wanted. Defense, by contrast, barely comes up on the doorstep: “There are hardly any votes in it, but it’s just something we have to do.”

There has been heavy engagement with Labour MPs, whose detachment from No. 10 helped force Starmer out in July. Treasury ministers Torsten Bell and James Murray are among those engaging while Chief Secretary to the Treasury Emma Reynolds handles tricky negotiations with Cabinet ministers, alongside No. 10 chief of staff James Purnell.

Healey has negotiated with Cabinet ministers and spoken to union leaders, banks and MPs — though not lobbyists. “No one can get to Healey,” said one. “It’s very smart. Let him do his job.”

Markets will look at the “headroom” — a snapshot of the buffer between Healey’s five-year plans and his self-imposed fiscal rules. The fourth official quoted above said Treasury officials have considered having only a small “headroom” buffer compared to the £21.7 billion left by Reeves, as it could be increased in future years. 

Reeves’ former political secretary, Pound, warned against this, telling Westminster Insider: “If the headroom is so low that it’s clear that they can’t clear the defense investment plan, for example, or the wider defense pressures, then I think that that could then start to have a bit of a knock-on effect that would be quite negative.”

However, headroom is merely a snapshot, often out of date by the time it is published. It is likely to be buffeted further by any events in the Middle East arising from the U.S. midterm results on Nov. 3.

And as with all budget briefings, some opposition politicians believe there is an element of expectation management. Conservatives suspect that headroom will come out higher than predicted — which Healey can paint as a victory.

Time is ticking

Then it’ll all be over — and Westminster will immediately start preparing for the next step.

A date was never confirmed for Burnham’s 10-year plan (beyond the latter part of 2026), but some officials believe it has already slipped slightly from the original intention. 

Downing Street and Cabinet Office officials remain determined to publish it in December, though some in Whitehall worry it might be delayed. “Knowing the things on the horizon and how big they are, I genuinely don’t see how you could make space for it,” said one official in another department.

While some Cabinet Office civil servants were first tasked to work on the plan in August, others only joined the team this month as it has grown, according to one person with knowledge of the staffing. Burnham’s ally Louise Haigh, the first secretary of state, is leading three “task forces” ahead of the plan on the cost of living, public control of utilities and the renewal of run-down high streets.

The 10-year plan won’t have all the answers, though. POLITICO reported this week that while it will contain a high-level vision, priorities and principles for the water industry’s future, much of the granular detail of how future ownership models will work is expected in the 2027 spending review. 

One Labour figure who has spoken to the government about the water industry said they believed ministers will choose “different horses for different courses” — an array of ownership models for various firms depending on how stricken they are. A second Labour figure talking to the government said: “You can’t do this in two years.”

The Labour official quoted earlier in this story said they feared the 10-year plan would be a let-down. “These big plans governments are always throwing forward to have a habit of turning out quite thin,” this person said. “At which point we all realize there was never a big plan all along.”

There are other plans to come, including an imminent plan to reform the welfare system by the former Labour Cabinet minister Alan Milburn, and a white paper in December that is due to set out a timetable, legislation and borders for plans to move more power outside Whitehall.

Devolution is one area where Burnham has moved quickly, pleasing many regional mayors. But some officials in the union movement fear that Burnham’s initial focus on devolution risks taking up bandwidth that could have been spent on other issues. A fifth government official added that they were worried all the conversations between different public bodies could crowd out the push for growth. They said: “I sit on Teams calls that are 30 people, all from different arms of the state. Sometimes I think — ‘You do know none of us are making this money?’”

‘Rubber hits the road’

Then there is the 2027 spending review. 

It will set out how the state allocates money across its arms for the next three to five years — turning these plans and the difficult trade-offs they require into reality.

The Treasury has previously confirmed it will set out the entire pathway to lift U.K. defense spending from 2.6% of GDP this year to 3.5% by 2035. It is also likely to address questions about Burnham’s pledge to create a state-funded national service for social care, funded by reducing the rise in the state pension.

There will be months of to-and-fro between Whitehall departments and a Treasury looking for cuts, efficiency savings or both to balance the books.

“The spending review is when the rubber hits the road,” said the fifth government official quoted above. “It’s already beginning. Departments are beginning to work out sacrificial lambs to offer up.”

Three people with knowledge of the conversations said Healey still hasn’t decided when in 2027 he wants to hold the spending review, though it is broadly expected no earlier than the summer. He has been privately musing with allies about the options.

Curtice said Healey’s options are essentially to hold a small fiscal event followed by a spending review next summer, or to hold a spending review with an annual budget simultaneously in fall 2027.

She added: “The big question we’ve posed for this budget — that we’re not necessarily expecting an answer to — is what is the spending total for the spending review that we know needs to come next year? Until we know the answer to that question, we don’t really know whether we can believe the path of tax and borrowing that is set out in the budget.”

Senior Conservatives argue the spending review will be so difficult that Burnham could call a snap election before it is due. He has insisted he will only force it in 2029.

Until then, much of the spending review work will fall to Reynolds. Her predecessor Darren Jones argued the existence of the 10-year plan and spending review meant it would be sensible for next week’s budget to be a little low-octane.

“The prime minister’s been clear that the 10-year plan is going to be the political strategy for the government,” Jones told POLITICO. “So I think it makes sense to do all of your public spending decisions after the publication of the 10-year plan. It would be odd if this October’s budget tried to deal with all the big trade-offs on defense, mayoral budgets, or more ownership of public utilities.

“So I think in many ways, actually the 10-year plan is more interesting this autumn in terms of the political strategy of the government. 

“And then 2027 will be the year in which ministers will have to start thinking about how to implement that strategy operationally, including in public spending decisions.”

Much of that will fall to Burnham himself.

Crowdsourcing

Rayner’s joke about “Andy Time” was not without cause.

Unlike Starmer, Burnham gets into the weeds of an issue even if it derails his schedule. The prime minister chews things over with colleagues so much that some have joked they could just remove his Downing Street desk, said the third government official quoted above. By contrast, Starmer used to retreat to No. 10’s first-floor study to read away from the hubbub.

Burnham’s approach can lead to Downing Street making decisions late in the day. One former No. 10 official said: “A Prime Minister needs to do 80 things in a day and if that goes to 60, then you end up massively behind.”

The flipside is that ministers and officials know what their leader actually wants from them — even if they are left to work out the detail.

“It’s like we’ve woken up from a political coma,” one backbench MP enthused. “I know what the prime minister thinks,” added the third government official quoted above.

Aides used to complain that Starmer, by contrast, tried to be efficient but would end meetings without setting a clear political direction. “Keir was always a stickler for time, even if the issue wasn’t resolved,” as one former colleague put it.

Kemi Badenoch, the Conservative leader, suggested this week that Burnham was failing to flesh out the detail behind his vision. “Talking about it is not making a decision,” she said of social care reform at prime minister’s questions. Burnham was visibly frustrated—insisting he was making the long-term decisions other politicians duck.

And for the prime minister’s allies and most of his MPs, the vibes remain good. The No. 10 environment is more relaxed and open. Junior ministers, in meetings over bacon sandwiches, feel they can share their views and be heard.

“There’s definitely still a buzz,” said the person who talks regularly to Downing Street, who was quoted earlier in this story. “But you don’t want to spend too much time buzzing while Rome burns. There’s a reality check that I feel is going to come imminently.”

Patrick Baker, Sascha O’Sullivan, Esther Webber and Emilio Casalicchio contributed reporting.

BRUSSELS — Germany, France and at least six other EU countries are pushing against “associate membership” as the name for closer EU ties with Canada, six diplomats involved in the negotiations said.

The label is one of the main sticking points in talks over a joint declaration setting areas of deeper cooperation between Brussels and Ottawa ahead of the EU-Canada summit in Montreal on Oct. 29-30, the six diplomats and two EU officials told POLITICO. They were granted anonymity to discuss the sensitive negotiations.

The diplomats said the objections center on the wording of “associate membership,” not the broader goal of closer ties.

Five weeks after European Commission President Ursula von der Leyen first proposed Canada becoming an “associate member” of the EU in her State of the Union speech — to the surprise of both Ottawa and EU capitals — and one week out from the summit itself, the disagreements show the term remains a political and messaging hurdle.

The EU “is really keen to have close cooperation with Canada,” said Bernd Lange, chair of the European Parliament’s trade committee. But, he added, he too would avoid using the term “associate membership,” as it leaves too much room for confusion with other forms of EU partnerships, such as association agreements.

Germany is pushing hardest to remove the label from the draft declaration, five of the EU diplomats said, while France, Italy and Belgium were among those expressing skepticism about the phrasing.

The central concern among the capitals that object to the term is that the EU is labeling the relationship before agreeing what it would mean. They argue the name should have been defined before negotiations with Canada began, four diplomats said, with two others adding that the objecting capitals are annoyed that von der Leyen proposed the label without first consulting national governments.

“We’ve definitely put the cart before the horse,” one diplomat said. “We’re announcing something and then figuring out how to flesh it out.”

A representative for the German Permanent Representation to the EU declined to comment.

The European Commission will engage with skeptical capitals and work on acceptable language, an EU official said, adding that they believe the countries’ doubts stem from not yet understanding what the proposal means in concrete terms.

There is no disagreement over the aim of strengthening an already close relationship, including economic and defense cooperation, international engagement and institutional links, the official stressed. “What matters is what we do, not what we call it.”

What’s in a name?

The label aims to describe the EU-Canada relationship as closer than Brussels’ partnerships with other countries, without making Canada a member of the bloc, one of the diplomats said. Canada cannot become a formal member, as the EU’s founding documents limit that status geographically to Europe.

The distinction matters because existing arrangements with European neighbors, including the U.K., Switzerland and countries in the European Economic Area, center largely on access to the EU’s internal market. Canada, on another continent, is not seeking the same model or the four freedoms of movement, the diplomat said.

The idea is to identify practical areas for cooperation first, then decide whether new treaties or formal negotiations are needed, the same diplomat said.

Work on six priority areas is expected to begin after the summit, with progress reviewed after six months and then a proper stock-take one year later at the next EU-Canada summit, which will be held in Europe.

The stock-take would consider whether Canada has moved closer to the EU by becoming a full member of Horizon Europe and Erasmus, is building undersea cables and stockpiling critical raw materials with the EU, and is exploring pension-fund investment. If Canada meets those criteria, it could become the EU’s first associate member, the diplomat said.

The diplomat described the idea as an experiment, adding that “Canada might be the only one” to ever get associate membership of the EU.

The plan reflects changing calculations on both sides. Canada has long depended heavily on trade with the United States, but tariffs and political pressure from Washington have sharpened concerns about that reliance. Prime Minister Mark Carney wants to diversify trade and modernize the country’s infrastructure, including energy links that largely run north to south.

For the EU, a closer partnership with Canada is part of a broader effort to build relationships as pressure from the United States, China and Russia grows. The summit is intended to give the partnership a more distinctive political framework.

The declaration is still being revised, with EU ambassadors due to discuss it again on Monday. One of the EU officials cautioned that several parts of the declaration still had comments outstanding.

Another controversial element concerns energy cooperation, with Austria pushing back against any mention of deepening nuclear ties, while France, Romania, Slovakia and some other countries support its inclusion.

A spokesperson from the Canadian mission to the EU did not respond to POLITICO’s request for comment.

Neun Länder drängen in die Europäische Union, doch die Tür ist seit über einem Jahrzehnt verschlossen. Während Friedrich Merz in Montenegro die Beitrittschancen der Länder des Westbalkans auslotet, wäre ein Scheitern des nächsten Beitritts durch Montenegro, vor allem für Russland und China eine Genugtuung. Europa-Experte Hans von der Burchard analysiert, warum das kleine Land an der Adria zum Lackmustest für die Erweiterungspolitik wird und welche bittere Pille die Ukraine womöglich schlucken muss.

In Berlin entbrennt zeitgleich auf der Ministerpräsidentenkonferenz ein harter Verteilungskampf um die Energiekosten. Rasmus Buchsteiner beleuchtet die Milliarden-Forderungen von Hendrik Wüst zur Stromsteuer sowie die teuren Rentenpläne von Markus Söder. Die Konferenz beginnt ausgerechnet am Tag der Steuerschätzung. Die entscheidende Frage lautet: Wie sollen diese politischen Versprechen angesichts riesiger Haushaltslücken dauerhaft finanziert werden?

Antworten auf die angespannte Kassenlage liefert Sebastian Schäfer. Der Chefhaushälter der Grünen-Bundestagsfraktion erklärt im 200-Sekunden-Interview, warum er die Steuersenkungspläne der Union für unrealistisch hält. Stattdessen bringt er einen konkreten Sparvorschlag ins Spiel.

Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Rixa Fürsen, Maximilian Stascheit und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig.

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Es war eine Chaoswoche für den Kanzler Friedrich Merz. Das Rentenpaket entwickelt sich zur weiteren Zerreißprobe für die Koalition. Der neue Arbeitsminister Alexander Schweitzer macht es für den Kanzler nicht einfacher. Warum der SPD-Pragmatiker plötzlich auf Konfrontation geht und wie diese Machtkämpfe die Regierungsarbeit lähmen, steht im Zentrum der Analyse.

Gleichzeitig brodelt es an der SPD-Spitze. Gordon Buchsteiner und Rasmus Buchsteiner analysieren das personelle Vakuum der Sozialdemokraten und diskutieren, ob Hubertus Heil in die Bresche springen könnte. Zudem wird beleuchtet, welche Rolle die Ministerpräsidentinnen wie Manuela Schwesig und Anke Rehlinger im Hintergrund spielen.

Während die SPD mit sich selbst ringt, läuft der Deutschlandtag der Jungen Union in Bonn. Friedrich Merz positioniert sich in der Rentenfrage mit dem Versprechen stabiler Beiträge. Ob und wie das verfängt, diskutieren Repinski und Buchsteiner ebenfalls.

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**(Anzeige) Eine Nachricht von YouTube: Die Auffindbarkeit von Qualitätsjournalismus ist entscheidend für eine lebendige Medienlandschaft. 79 % der Medienunternehmen, die YouTube nutzen, an, dass digitale Videoplattformen ein wichtiger Vertriebskanal sind, so Oxford Economics. Und 81 % der Medienunternehmen mit YouTube-Kanal erreichen darüber weltweit neue Zielgruppen. Hier klicken und mehr erfahren.**

Friedrich Merz reist morgen zum Deutschlandtag der Jungen Union nach Bonn und trifft auf eine Parteijugend, die nach dem Rentenstreit des Vorjahres weiter voller Frust steckt. Die vielleicht nicht jungen, aber jüngeren Mitglieder um Johannes Winkel wollen endlich Reformen. Ob der Parteichef die Basis befrieden kann, ordnet Rasmus Buchsteiner von Bonn aus ein.

Im 200-Sekunden-Interview skizziert die Parlamentarische Geschäftsführerin der Unions-Fraktion, Catarina dos Santos-Wintz,, wie ein zukunftsfestes Gesamtpaket ihrer Meinung nach aussehen muss und warum die Junge Union und die Junge Gruppe der Fraktion beim Thema Generationengerechtigkeit keine faulen Kompromisse mehr akzeptiert.

Auf dem EU-Gipfel in Brüssel ringen die Staats- und Regierungschefs derweil um die wirtschaftliche Zukunft Europas. Hans von der Burchard analysiert das Treffen, sowie den neuen handelspolitischen Härtetest mit China. Zudem zeigt sich, wie dramatisch die Finanzierungslücke bei der Ukraine-Hilfe angesichts bröckelnder US-Unterstützung wirklich ist.

Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Rixa Fürsen, Maximilian Stascheit und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig.

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**(Anzeige) Eine Nachricht von YouTube: Die Auffindbarkeit von Qualitätsjournalismus ist entscheidend für eine lebendige Medienlandschaft. 79 % der Medienunternehmen, die YouTube nutzen, an, dass digitale Videoplattformen ein wichtiger Vertriebskanal sind, so Oxford Economics. Und 81 % der Medienunternehmen mit YouTube-Kanal erreichen darüber weltweit neue Zielgruppen. Hier klicken und mehr erfahren.**

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LONDON — The Liberal Democrats used to watch their rivals indulge in messy factional squabbles with glee. Now they are scrambling to project an image of unity.

Britain’s third-largest Westminster group could hold significant power after the next election if no party wins a majority of MPs and Prime Minister Andy Burnham is casting around for a deal.

But for now, the focus is on weathering an internal storm in the centrist outfit. MPs rallied around their leader Ed Davey this week at a marathon four-hour meeting — held days after one of his frontbenchers resigned in an ill-fated attempt to oust the party chief.

The botched coup comes as the Liberal Democrats try to answer a more existential question: what are they actually for and how do they make an impact in Britain’s fragmented political landscape?

POLITICO’s Poll of Polls shows the Lib Dems coasting along. After getting 12.2% in the 2024 general election — and bagging a record 72 members of parliament as a result — the party has slipped down, polling between 9% and 11% since Andy Burnham became prime minister. 

POLITICO explains why Lib Dems are now openly discussing Davey’s future; how much danger he is in; and exactly how the man known for a cheery demeanor and eye-catching paddle-board stunts could be capsized.

1) Why is Davey’s future in the headlines?

The surprise resignation of the Lib Dems’ Treasury spokesperson Charlie Maynard a week ago triggered the latest round of soul-searching about the leader’s future — but the grumbling goes back a bit further.

Maynard’s resignation followed costly tax-cutting pledges from Davey at the party’s conference in September and came hot on the heels of sharp responses — including from 2024-intake Lib Dem MPs Tom Gordon and Vikki Slade — to the way Davey defended an existing guarantee on state pensions. Some MPs believe the party isn’t adequately representing younger voters by opposing changes to the so-called triple lock, now targeted for reform by Burnham.

The immediate threat looks to have receded. Maynard’s resignation has gone down badly among a host of colleagues.

One Lib Dem frontbencher — granted anonymity to speak about internal matters like others in this piece — said the “vast majority of us think it’s beyond ridiculous and are really angry.” A second frontbencher said it was “bang out of order” for colleagues to brief internal policy discussions to the press.

2) So he’s safe?

Not quite — fizzled plots like this have a habit of still bringing grumbling to the surface (just ask Theresa May)

There remains frustration among some MPs over Davey’s perceived failure to exploit a gap in British politics opened up by voters’ deep dislike of Keir Starmer’s Labour government after the 2024 general election.

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  Labour Party

  Labour Party
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  Reform UK

  Brexit Party (relaunched as Reform UK in 2021)
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  Conservative and Unionist Party

  Conservative and Unionist Party
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  The Green Party of England and Wales

  The Green Party of England and Wales
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  Liberal Democrats

  Liberal Democrats
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  Restore Britain

  Restore Britain
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  Scottish National Party
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  Plaid Cymru – The Party of Wales

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YouGov’s Anthony Wells explains that the party was stagnant “during a period where the Starmer government came in, became extremely unpopular [and] lost a huge amount of support” that “didn’t go to them.”

He contrasted this with how the Lib Dems gained traction in the 2000s when the Labour government was in big trouble. The Lib Dems are normally good at grabbing “the low-hanging fruit of unpopular left-of-center governments.”

“They haven’t nailed their colors really firmly to any mast,” says Wells. “They have been something to all men — and it means they may have suffered in comparison to people like the Greens under [leader] Zack Polanski, who’ve been much clearer about what they stand for.” 

Removing a Lib Dem leader remains reasonably easy — though a crunch meeting of the parliamentary party on Tuesday suggests there currently aren’t enough MPs to actually trigger a ballot of no confidence, let alone win one. 

Eighteen MPs (25% of the parliamentary party) would need to push for a vote of no confidence to be held. An absolute majority — 36 MPs — would then have to vote no confidence in Davey for a leadership election to be triggered. 

Davey could stand in that leadership election if he could secure nominations from 10% of Lib Dem MPs and 200 members from at least 20 different local parties. 

Unlike in the Conservatives, where a leader cannot be challenged again for a year after they win a no-confidence vote, Davey would be given no such grace period if he survived — meaning another ballot could take place just months after he saw off a coup attempt.

3) What’s the view from Davey world?

The arguments in the leader’s favor appear to have won out — for now.

For one, he has a record of winning. Davey can point to having taken the party to its largest number of constituencies in its modern form by focusing on a fight-by-fight, seats-first strategy. The 2024 campaign prioritized targeted campaigning in specific areas, rather than seeking a higher national vote share that doesn’t translate to a high number of MPs.

Loyal allies have come out to bat for their embattled boss this week. Deputy Leader Daisy Cooper, seen as a possible future leadership contender, said there’s a “real sense that we need to come together as a group” to stop the Tories and Reform UK “from forming the most right-wing government in our history.”

Subtext: let’s not mess around and let our real enemies in.

A third frontbencher told POLITICO Davey doesn’t “just have the support of the parliamentary party — there clearly aren’t anything like enough MPs to trigger a vote of no confidence.” They said Davey changing his top team earlier this year by appointing James Holt as director of political strategy and Ruth Younger as chief of staff “just needs time to percolate.”

4) So can Davey just keep calm and carry on?

Maybe.

Wells believes the party doesn’t “necessarily need to do much” to hold its current crop of seats at the next election — and that a middle-of-the-road approach against flashier, potentially more divisive opponents — might actually work in its favor.

While “their brand may be less distinctive, it also means they’re more coalition-able,” Wells says. He points out that there’s already much less objection from Labour about working with the Lib Dems compared to the Greens, who Burnham this week threatened to can local power-sharing agreements with amid a row over anti-semitism.

“There is a strategic advantage to them in terms of not offending people, but there’s also a strategic weakness in not defining yourself very clearly,” he says.

Sam Francis contributed reporting.

Ein verschnupfter und heiser Kanzler im Angriffsmodus – wohl auch heute bei der Regierungserklärung am Nachmittag im Bundestag. Beim Arbeitgebertag gestern hat der Regierungschef Merz gut ausgeteilt und seinen neuen Arbeits- und Sozialminister Alexander Schweitzer öffentlich unter Druck gesetzt. Die Rentenreform soll im Eiltempo durchs Kabinett, doch in der SPD brodelt es gewaltig. Die Analyse von Rasmus Buchsteiner zeigt, warum der Kanzler jetzt auf diese harte Tour setzt und ob die Koalition da mitzieht.

Im 200-Sekunden-Interview fordert der Chef der Jungen Union, Johannes Winkel, erneut ein schnelles Ende der politischen Hängepartie. Er macht klar, an welchen konkreten Punkten der Rentenreform sich Schweitzer nun messen lassen muss und warum reine Strukturdebatten nicht mehr ausreichen.

Eine Hufeisen-Allianz formiert sich derweil in Sachsen-Anhalt: AfD und BSW machen bei der Russland-Politik gemeinsame Sache und wollen die CDU in die Enge treiben. POLITICO-Expertin Pauline von Pezold von „Inside AfD“ ordnet ein, wie die Alternative schnell wortbrüchig werden könnte, wenn es um die Neutralität des Parlaments-Präsidiums geht und wie die CDU-Fraktion im Landtag den Ministerpräsidenten-Kandidaten Ulrich Siegmund in ein Dilemma drängen könnte.

Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Rixa Fürsen, Maximilian Stascheit und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig.

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**(Anzeige) Eine Nachricht von YouTube: Die Auffindbarkeit von Qualitätsjournalismus ist entscheidend für eine lebendige Medienlandschaft. 79 % der Medienunternehmen, die YouTube nutzen, an, dass digitale Videoplattformen ein wichtiger Vertriebskanal sind, so Oxford Economics. Und 81 % der Medienunternehmen mit YouTube-Kanal erreichen darüber weltweit neue Zielgruppen. Hier klicken und mehr erfahren.**

PARIS — French center-right presidential candidate Edouard Philippe accused his far-right rival Marine Le Pen of trying to force a Frexit in disguise with her euroskeptic campaign promises.

“There is something in Marine Le Pen’s proposals that has the potential to blow Europe up, or let’s say to crack it open,” Philippe said at POLITICO’s Paris Competitiveness Summit on Tuesday.

The former prime minister — who is currently the best-placed centrist candidate to challenge the front-running Le Pen, according to recent polls — said Le Pen’s plan to unilaterally demand a drastic cut to France’s contribution to the EU budget was akin to “saying you want out of Europe” without openly advocating for leaving the bloc. Le Pen had previously called for a referendum in France on leaving the EU but dropped the proposal after her crushing defeat to Emmanuel Macron in the 2017 presidential election. Her party, the National Rally, now says it wants to change the EU from within.

Philippe, a fiscal conservative who has been pitching himself as the voice of reason in a campaign dominated by populist rivals, also slammed budget plans Le Pen unveiled last week as “grotesque,” accusing her of pitching “fantasy” savings.

Le Pen’s fiscal plans have faced serious scrutiny since being presented, with many observers saying they either lack key details or overestimate savings on major proposals like immigration. Progressive think tank Terra Nova wrote in a note out Tuesday that Le Pen’s budget presentation was “riddled with errors and contradictions” as well as “botched estimates.”

“She isn’t even able to estimate the cost of the pension reform she is proposing,” Philippe said.

Le Pen said in August that her plan to bring France’s legal retirement age back down to 62 for most workers would cost €9 billion a year, and last week she said she would lay out at a later stage how she intends to fund her flagship pledge. However, the Institut Montaigne, a fiscally conservative think tank, estimated the proposal would cost €34.7 billion a year.

Philippe is hoping to convince voters that his fiscally conservative agenda is the right path in a country burdened by a ballooning public debt and a budget deficit still above 5% of gross domestic product, in breach of EU rules.

Philippe said France needed to get its finances back on track to regain credibility on the European stage after a “loss of influence” over the past few years.

Though he currently leads a crowded field of centrist candidates, Philippe’s campaign has struggled in recent weeks to gain momentum — and far-left candidate Jean-Luc Mélenchon is now challenging the former PM for second place in the polls. France’s presidential election goes to a runoff if no candidate receives more than 50% of the vote, and Le Pen’s strong poll numbers all but guarantee her a spot in the second round.

Tough on China

The former prime minister pitched a pragmatic European agenda with less regulatory burden, more focus on investment and a tougher approach to China.

Philippe had some harsh criticism for an already embattled flagship measure of the EU’s green deal, saying the 2035 combustion engine ban has been “disastrous.”

There was “a great naiveté toward China,” which ultimately benefited from Europe’s push on electric vehicles, Philippe said.

“We need to much better protect our market,” he added. “If one wants access to the European market, one has to manufacture in Europe. If a carmaker doesn’t manufacture here, then we have to slap high tariffs.”

The EU is in the process of drawing up new “Made in Europe” rules that would favor European producers over those outside the bloc, in response to trade practices by competitors like China and the United States.

Shortly before Philippe took the stage, European Commissioner for Industry Stéphane Séjourné said at the POLITICO event that a Franco-German deal trading stronger protections on the definition of Made in Europe in exchange for a loosening of combustion engine rules should be finalized “in the next few hours or in the next few days.”

On artificial intelligence, Philippe aligned himself with Macron, advocating for European sovereignty in the field and the need to regulate what he described as “an instrument of power.”

“What I see is an AI world making money for the U.S. with European savings and European data, and that bugs me,” he said.

PARIS — Edouard Philippe was once seen as the only man capable of defeating Marine Le Pen in next year’s French presidential election. But his lackluster campaign as the country’s voice of reason is putting his allies on edge — and some of them are starting to wonder if he has what it takes.

The former center-right prime minister promised a “massive” campaign platform that would fix France, put its finances back on track and restore the country’s standing in the world. And while Philippe has upped his campaign tempo in recent weeks, his proposals tend to fall flat.

POLITICO spoke to six members of Philippe’s political family, some of them campaign team members, who shared doubts about his strategy and chances of success. Some were granted anonymity to speak candidly about internal matters.

“It’s unbelievable how nothing is making an impact,” a campaign official told POLITICO ahead of Philippe’s decision to announce his plans for a flagship pensions reform. “I can’t stop thinking about it.”

Philippe is still the best-placed mainstream candidate to challenge far-right Le Pen, who commands a substantial lead in the polls. But his poll ratings have stalled over the past year, and he is now locked in a tight race with far-left candidate Jean-Luc Mélenchon to clinch a second place which would qualify him for the runoff. MEP Raphaël Glucksmann, who trails the duo in most surveys, could see a boost for his campaign after scoring a decisive victory in the recent center-left primary.

Philippe is facing a pileup of problems: He has yet to unite the center behind him, remains burdened by a decade of centrist rule and is struggling to gain traction among voters with his pitch as the plain-speaking pragmatist fighting populism.

“Philippe is the most honest guy I know,” said an ally, “but he needs to unite and find a project that rallies people around him.”

Meanwhile, Le Pen and Mélenchon are dominating headlines with political one-upmanship and at times inflammatory proposals. The two populists locked horns last week over school protests, with Le Pen accusing Mélenchon of fueling the violence, and the far left positioning themselves as the protectors of France’s youth against police violence.

“The risk is great” that Le Pen and Mélenchon will squeeze him out of the race, Philippe’s ally added.

Stale marriage

Philippe, who left his position as prime minister under President Emmanuel Macron in 2020, has been planning his bid to succeed him for years. But things haven’t quite gone to plan on the campaign trail, where he has faced upsets and distractions.

When Philippe recently announced his unpopular proposal to push back the retirement age to 65, it was supposed to be a make-or-break moment in his campaign. Instead, it went almost unnoticed.

First, he was forced to delay his flagship announcement because Macron decided to address the nation about Russian threats and spiraling fuel costs. When he finally got round to it, it was overshadowed by antisemitism allegations against National Rally leader Jordan Bardella.

Ultimately, his 20-minute speech detailing his pensions plans on YouTube garnered only 70,000 views.

A day later, Mélenchon livestreamed a two-hour Q&A session with students from HEC, one of France’s top business schools. It got 550,000 views.

But according to Philippe’s campaign spokesperson Arnaud Péricard, the battle will be won in the long run.

“We’re not firing an arrow and then running away … Voters shouldn’t be underestimated; they can understand why our pensions system needs fixing,” he said. “But we aren’t mere accountants … We want a return of a powerful France that can lead on energy, industry; that’s why we need to balance our books.”

But a mix of economic realism and European ambition sounds all too familiar after a decade of Macron’s presidency — and even insiders know there’s little appetite for it. “There’s no desire for the centrist bloc. It’s a bit like marriage after 10 years,” said the same ally quoted above.

But for Philippe, a pro-European who was one of Macron’s coalition partners, there’s not much else he can offer.

“It’s difficult for the moderates: They know what state the country is in. They understand interest rates, debt and deficits,” said OpinionWay pollster Bruno Jeanbart. “They have to campaign as if things will get better, but it’s going to be difficult. We’ll have to work longer, accept more social spending, less benefits. There is no good news.”

Cornered

The silver lining for Philippe is that while he’s not doing too well, his immediate rivals aren’t doing any better. Conservative leader Bruno Retailleau is stuck on single-digit polling figures, while centrist Gabriel Attal, leader of Macron’s Renaissance party, has relentlessly campaigned throughout the summer but is still lagging behind and looks increasingly isolated.

Party insiders are confident Philippe will prevail, but admit the drawn-out centrist battle is dragging their champion down.

“We are at a bit of a standstill, and letting ourselves get boxed into a duel with Attal,” complained a senior official from Philippe’s Horizons party.

When Philippe and Attal announced their education proposals simultaneously last month, “people didn’t notice our proposals, they just saw the squabbling with Gabriel Attal,” the official added.

A member of Philippe’s campaign team said there was “little bandwidth” to make an impact because there were “too many” centrist candidates. “Maybe we’ll have to wait before addressing some campaign topics,” the official said.

In the coming weeks, Philippe’s team hopes to drain Attal’s support among lawmakers and local representatives, according to two allies, and force him to throw in the towel.

But that’s unlikely to provide Philippe with a much-needed boost, said a centrist senator, as enthusiasm is flatlining at the local level too. “There’s no real movement anywhere,” the senator said. “And the French aren’t really listening.”

Pauline de Saint Remy and Elisa Bertholomey contributed reporting.

Donald Trump verkündet eine „Energie-Waffenruhe“ zwischen der Ukraine und Russland an. Fraglich allerdings ist, was die beiden Länder davon wirklich wissen. Um den heimischen Druck durch steigende Ölpreise abzufedern, lockert Trump zuvor die Sanktionen gegen Russland. Weil er dafür von Wolodymyr Selenskyj kritisiert wird, fordert er, die Ukraine brauche einen neuen Präsidenten. Währenddessen ringen die EU-Außenminister in Luxemburg um ein neues Sanktionspaket gegen Russland. Hans von der Burchard ordnet zusammen mit Rixa Fürsen ein, wie Europa die russische Schattenflotte stoppen will und welche Konsequenzen der Drohnenangriff von Leipzig wirklich hat.

Im Konrad-Adenauer-Haus herrscht derweil Krisenstimmung bei herbstlichem Wetter. Angesichts verheerender Umfragewerte sucht die CDU-Spitze nach einem Ausweg aus dem Tief. Rasmus Buchsteiner analysiert die Strategie des CDU-Präsidiums, das sich in Klausur befindet, und wie Parteichef Friedrich Merz in seiner Position stabilisiert werden soll.

Im 200-Sekunden-Interview warnt Dennis Radtke, Vorsitzender der Christlich-Demokratischen Arbeitnehmerschaft (CDA), vor einer inhaltlichen Schieflage seiner Partei. Er fordert echte Strukturreformen bei Rente und Gesundheit statt reiner Sparprogramme und erklärt, warum die Union dringend Antworten auf die alltäglichen Sorgen der Menschen finden muss.

Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Rixa Fürsen, Maximilian Stascheit und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig.

Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren.

POLITICO Deutschland – ein Angebot der Axel Springer Deutschland GmbH
Axel-Springer-Straße 65, 10888 Berlin
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LUXEMBOURG — EU finance ministers struck a compromise to beef up the bloc’s markets watchdog Friday, but the deal exposed divisions over national control and exemptions that critics say favor the biggest member countries.

Most finance ministers backed the Council’s position on MISP, a package of bills to integrate and police financial markets. At its heart is a plan to give the EU’s securities regulator powers to oversee major financial players — a flagship bid to make Europe a stronger investment hub, where European companies can seek investors without traveling to Wall Street.

But capitals stopped short of handing the future watchdog too much autonomy, triggering a hard rebuke from the European Commission.

“We deeply regret that the compromise now on the table falls significantly short of the level of ambition needed,” Finance Commissioner Maria Luís Albuquerque told ministers during Friday’s public Ecofin debate in Luxembourg. “We need [the European Securities and Markets Authority] to become an effective supervisor. The current compromise text would not allow for that.”

France spearheaded a last-minute push over dinner Thursday to strengthen the watchdog’s executive powers. Paris took issue with a rule that would allow nine national supervisors to force the watchdog’s executive board to submit draft decisions for further scrutiny before they’re adopted. The Irish EU presidency tweaked the rule overnight to limit national supervisors’ ability to delay decisions and preserve the watchdog’s power to act in emergencies, according to a compromise document obtained by POLITICO.

That was enough for France and most other countries. But not for the Commission, nor European Central Bank President Christine Lagarde, who was equally critical of the Council compromise. Beyond the governance concerns, Albuquerque took aim at supervisory carve-outs that the Irish introduced to accommodate Germany’s push to exclude its stock exchange, Deutsche Börse, from EU oversight.

The carve-out club

The carve-out shields stock exchanges from direct EU supervision unless they meet certain thresholds for trading activity and cross-border reach. Spain’s stock exchange, Bolsas y Mercados Españoles, would also benefit from the carve-outs, triggering criticism from smaller EU countries that accused the waiver of granting the bloc’s largest nations preferential treatment.

Belgium was particularly critical because its Brussels-based securities depository Euroclear is expected to come under direct EU oversight and face supervisory fees, while some major stock exchanges could remain under national oversight. Belgian Prime Minister Bart De Wever will take the issue to EU leaders at the end of next week.

“We cannot support the carve-outs. The package includes as many ins as there are outs,” Belgian Finance Minister Jan Jambon said during Friday’s public debate. “I think Germany has won in certain cases.”

As a peace offering, Berlin backed a review clause that would allow the Commission to revisit the carve-outs two years after the supervisory rules start applying. Any changes would require new legislation, however.

“The carve-out is temporary,” Dutch Finance Minister Eelco Heinen, who backed the deal, told journalists Thursday. “If that exchange were to grow, it would also fall under [EU supervision]. This is also intended to ensure that Dutch companies or pan-European companies such as Euronext are not put at a disadvantage.”

Friday’s deal puts pressure on MEPs to agree Parliament’s position so negotiations on a final text can begin. The Commission hopes future legislative negotiations will provide a second chance to improve the text, which also threatens to increase pressure on the EU budget.

Under the compromise, the EU budget would shoulder 60% of the cost of ESMA’s activities not covered by industry fees, with national supervisors paying the remaining 40%.

“The Commission cannot accept a significant increase in the EU budget contribution in light of the difficult discussion at [the Multiannual Financial Framework],” Albuquerque said amid a bitter budget battle that threatens to shave hundreds of billions of euros off the proposed €2 trillion cash pot. “I sincerely hope that the European Parliament will be more ambitious.”

Ein drohender Linksruck in der Hauptstadt sorgt für handfesten Ärger auf Bundesebene. Während SPD und Grüne in Berlin ernsthaft mit der Linkspartei sondieren, blickt Friedrich Merz mit Sorge auf eine mögliche Regierende Bürgermeisterin Elif Eralp. Welche radikalen Forderungen im Raum stehen und warum der Antisemitismus-Streit in der Linken die Regierungsbildung zur Zerreißprobe macht, analysiert Maximilian Heimerzheim.

Beim Dauerbrenner Rentenreform verhärten sich die Fronten zwischen Union und SPD zusehends. Ein neues Sherpa-Treffen soll nun klären, ob das Rentenpaket aufgespalten wird oder langfristig gar ein Renteneintrittsalter von 70 Jahren droht. Rasmus Buchsteiner ordnet ein, welche Kompromisse der Kanzler bis Weihnachten erwartet und wer in den Verhandlungen auf der Bremse steht.

Im 200-Sekunden-Interview spricht CSU-Forschungsministerin Dorothee Bär über das europäische Kräftemessen im All. Parallel zum Staatsbesuch von Bundespräsident Frank-Walter Steinmeier und Emmanuel Macron in Bordeaux erklärt sie, wie sich Deutschland in der Raumfahrt behaupten will und warum Europa beim Flug zum Mond mehr Selbstbewusstsein gegenüber der NASA braucht.

Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Rixa Fürsen, Maximilian Stascheit und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig.

Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren.

POLITICO Deutschland – ein Angebot der Axel Springer Deutschland GmbH
Axel-Springer-Straße 65, 10888 Berlin
Tel: +49 (30) 2591 0
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Geschäftsführer: Christoph Eck-Schmidt, Carolin Hulshoff Pol, Mathias Sanchez Luna

BRUSSELS — Germany’s push to exempt a national champion from future EU oversight could imperil a ministerial deal to integrate the bloc’s financial markets and compete with Wall Street.

Over the coming days, finance ministers will discuss the most contentious parts of their countries’ positions on Brussels’ “market integration and supervision package” of bills, or MISP. They’ll begin with a dinner on Thursday in Luxembourg, as the Council moves toward its official negotiating position.

The hope is that ministers will then sign off on the compromise deal, brokered by Ireland in its role as leader of the EU’s rotating presidency, at the ministerial Ecofin gathering on Friday. This would be a major step forward for the EU’s 10-year bid to create a U.S.-style capital market.

But a push by Germany to exclude one of Europe’s biggest stock exchanges from central EU oversight could turn dinner into a food fight.

This exemption remains in the current compromise position among EU capitals after Berlin refused to give up local supervision of its stock exchange behemoth Deutsche Börse over fears of job losses and ceding power to a bloc-wide entity, despite central supervision being one of the key tenets of the MISP package.

It’s sparked protests from smaller countries, which feel the compromise would disproportionately benefit their larger neighbors — and could scupper the entire deal.

The carveout is “polluting the whole debate” by giving a “huge gift to Germany” while other countries receive nothing in return for their support, one diplomat said.

Another went further. “No deal is better than a bad deal,” a senior EU official said ahead of Friday’s meeting.

One market

Securing a deal on MISP this year is central to the “One Europe, One Market” plan that the EU’s three political leaders in Brussels agreed to in April. EU governments have invested significant political capital into MISP in a bid to turn the bloc into an investment hub where innovative companies can find investors without having to leave for deeper pockets on Wall Street.

Getting sign-off from the EU’s 27 governments would be a major coup for Dublin, which is chairing legislative negotiations in Brussels until the end of the year.

However, six diplomats close to the negotiations gave contrasting views on whether a deal would be possible this week. According to one, anywhere from eight to 17 countries could band together to block an agreement.

The diplomats did concede that the countries opposing the carveout are not unified in their position, however, as they all want different things from a potential deal. But the Deutsche Börse issue remains the most contentious.

After the German government made it clear it would not support a deal on the package unless Deutsche Boerse was carved out, the EU’s six biggest economies came up with a plan over the summer to exempt the exchange from EU-wide supervision by the new “supercop” European Securities and Markets Authority.

The German state of Hesse, Deutsche Boerse’s current supervisor, has consistently opposed giving up the role, fearing job losses and waning influence if the exchange giant is instead overseen by ESMA. The carveout, based on trading thresholds and geographical footprint, would also benefit Spain’s main stock exchange and another German trading platform, Tradegate.

In practice, scoping out the German giant would hollow out the ambition of the MISP plan. Moving to a central supervision model for the EU’s biggest exchanges and other financial plumbing firms like clearinghouses and central securities-depositories has been the thorniest political issue throughout negotiations.

Although ESMA would still oversee large firms such as the stock exchange group Euronext and Nasdaq’s European arm, the watchdog would have fewer staff and less funding, and ultimately be less powerful if it were not responsible for supervising Deutsche BBörse 

The Belgian government in particular isn’t taking the plan lying down. According to two diplomats close to the talks, Belgium’s prime minister, Bart De Wever, could raise the subject at the European Council later this month if a majority of ministers push the carveout through.

Central to the Belgians’ frustration is the fact that their finance giant, the securities-depository group Euroclear, will move to ESMA supervision, while Belgium was shut out of talks among the “E6” supergroup of the bloc’s largest economies, according to multiple diplomats involved in the group’s formation.

If big countries won’t give up the Deutsche Börse carve-out, small countries could win changes to ESMA’s governance structure in exchange for supporting a deal, according to three of the diplomats. They want national finance watchdogs to have more influence in ESMA’s decision-making, while some also want changes to the authority’s funding structure. Large countries want ESMA to be overseen by an independent, powerful executive board akin to the European Central Bank’s. 

“It’s MESS, not MISP,” one diplomat quipped to POLITICO. 

Giovanna Faggionato contributed reporting.