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AfD’s Alice Weidel urges quick Ukraine talks and a return to cheap Russian energy

Alice Weidel, co-leader of the far-right Alternative for Germany party, told European lawmakers on Wednesday that Russia and Ukraine need to negotiate a peace deal, while insisting that German businesses require access to cheap Russian energy to remain competitive.

“It isn’t about capitulating to Russia, far from it, absolutely not, but we want people to sit down around the table. It’s high time they did, and went into it with a sensible diplomatic approach, making sure we pay due regard to the interests of both Ukraine and Russia,” she told a press conference.

Four and a half years since Russia launched its war on Ukraine, President Donald Trump is pressing Kyiv to negotiate with Moscow, while Russian President Vladimir Putin agreed on Wednesday to resume trilateral talks with Ukraine.

Weidel made the comments during a visit to the European Parliament in Strasbourg, where she unveiled her opposition AfD party’s EU program at an event organized by the far-right Europe of Sovereign Nations group.

The party aims to shrink the Commission, turn the European Parliament into an assembly of delegates appointed by national parliaments, and seek an opt-out for Germany from EU policies it can’t reform to its liking — potentially including an exit from the Schengen border-free travel area, she told reporters.

During an event following the press conference, Polish MEP Tobiasz Bocheński, from the right-wing European Conservatives and Reformists group, asked what she thought of Poland’s fears regarding Russia. Weidel said her party “puts German interests first,” insisting that “now we are in a critical phase that our industry is dying without Russian gas and oil.”

Germany needs “a sustainable, reliable and cheap energy resource that has been guaranteed by Russia for the last four decades,” she added, claiming that sanctions on Russia have “destroyed” Germany’s “business model.”

German industry is shedding jobs amid high energy costs, Chinese competition and U.S. tariffs, while Chancellor Friedrich Merz continues to push for reforms to revive a stagnant economy.

Weidel said that Russia, the U.S. and China are the only ones steering talks on Ukraine while European leaders aren’t even invited to sit at the table. The EU should have pushed for peace since the start, she added, as “four years down the road, it’s in a much worse position going into negotiations with Russia.”

EU countries are discussing who should represent them at the negotiating table. European leaders have repeatedly said that any decision on a peace deal must involve Ukraine and must include security guarantees.

Asked whether she was in contact with France’s far-right National Rally to repair ties, Weidel said the AfD was “pragmatic.” The French party broke with the AfD in 2024 and later helped shut it out of the far-right Patriots group amid concerns about its extremism and stance on Russia.

“We need to work together on a European unique level, and therefore we need to be in talks and discussions,” Weidel said, adding: “And we are.”

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Data centers could erase decades of air quality gains

Photo collage of a data center.

A rush of new data centers could bring air pollution roaring back to levels not seen since the 2000s in Texas, which has become ground zero for the physical infrastructure behind generative AI.

New and proposed data centers are demanding a tremendous amount of electricity. How developers and utilities meet that demand - with gas turbines or renewable energy - will determine just how dirty things will get. So far, though, things are looking grim.

Tech companies and data center developers are devising new ways to get enough electricity, including building out their own power sources. But if all planned data center projects were to plug into …

Read the full story at The Verge.

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Water sector to wait until 2027 for full details of Burnham’s overhaul

LONDON — Water firms and campaigners are set to wait until next year to see the full details of Andy Burnham’s plans to overhaul the sector in England.

Britain’s new prime minister has promised greater “public control” of the water industry as a centerpiece of his domestic agenda, partly reversing a wave of privatization that began in the 1980s. Ministers are due to unveil more detail in a “10-year plan for Britain” that is currently expected in December.

However, while this 10-year plan will contain a high-level vision, priorities and principles for the industry’s future, much of the granular detail of how future ownership models will work in practice is only expected later, said two people with knowledge of the discussions.

Some of these key details will be laid out in Chancellor John Healey’s multi-year spending review at some point in 2027, added the two people, who were granted anonymity to discuss evolving policy. One said the spending review — a date for which has not been decided — was where the full details would be “nailed down.”

These include any fiscal implications for the Treasury, which could have to find billions of pounds if ministers decided to transfer privately-owned shares to the public purse.

This appears to mirror an approach Burnham has taken to policymaking for decades, first as a Cabinet minister and then mayor of Greater Manchester before he took over 10 Downing Street in July. He is known for setting out a broad direction which his officials can later use to pin down detailed policy, while also seeking buy-in from private industry.

With a general election due by summer 2029, however, any wait will compress the prime minister’s window to enact far-reaching reform before he goes back to the electorate.

‘£40 being added to every single water bill’

England’s privatized water firms also argue that uncertainty over the sector’s future is damaging investor confidence.

The industry trade association Water UK has said the entire industry risks being downgraded by the credit ratings agency Moody’s, which would add £40 to customers’ annual bills.

Water UK Chief Executive David Henderson urged the government to move ahead with reforms suggested last year by former Bank of England Deputy Governor Jon Cunliffe, before ministers decide the overall path of how the sector is owned.

The Cunliffe report “was given to the government 15 months ago and the credit rating agencies are watching,” Henderson told POLITICO. “If the government doesn’t pretty soon decide what it wants to do with that report, then we risk a downgrade, as Moody’s has indicated. And if there’s a downgrade, that would sadly see £40 being added to every single water bill across England and Wales. That’s the last thing anybody wants.”

He added: “We still have no idea how [a proposed] new regulator will look, what status it will have, what its duties will be, which parts of the Environment Agency will stay in the Environment Agency, and which parts will go into the new regulator. That is causing uncertainty … an important consideration for any investor.”

One government official insisted the 10-year plan would contain some finer details of plans to overhaul the water industry, though they accepted that fiscal implications were always dealt with in fiscal events such as the spending review. 

Environment Secretary Angela Eagle is also due to bring a water bill to parliament before Christmas with separate policy, such as closing what Burnham has called “loopholes used to pay excessive bonuses” to water company executives. It will also contain scrutiny powers for regional mayors.

Burnham announced last month that the bill would lift a ban on the government owning more than 3% of shares in any English water firm. But he has also long made clear that he would not fully nationalize the industry, a move the government previously estimated would cost £100 billion for England and Wales together.

First Secretary of State Louise Haigh, one of Burnham’s most powerful allies in government, is leading three task forces including one on public control of water alongside housing, energy and transport.

Officials have been working through a “spectrum of options” for how public control in the water sector will look, a second government official said. They added that ministers are due to begin deciding which option — or combination of options — will be taken forward before the 10-year plan.

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Russia energy sanctions will stay despite US diesel deal, von der Leyen says

STRASBOURG — The EU will not ease sanctions on Russian fossil fuels even after the U.S. struck a diesel deal with Moscow, European Commission President Ursula von der Leyen said Wednesday morning.

In a speech to EU lawmakers, she warned “Russia is not a trusted supplier of energy because it would, this is our experience, at any time weaponize energy dependencies to blackmail others,” arguing it was Russia that cut gas supply to Europe. “That is a lesson Europe certainly will not forget.”

Earlier this month, U.S. President Donald Trump announced an agreement with Russian President Vladimir Putin to ease sanctions on imports of diesel fuel until April 2027, as global oil prices surge. 

A few days later, Trump defended the deal, arguing the EU had also purchased billions in fossil fuels from Moscow, without providing further details. 

Von der Leyen also addressed the trade imbalance with China.

She confirmed that the European Commission would present a new deterrent tool as soon as December. This tool is expected to be based on the one proposed by Berlin and Paris earlier this month and would empower the EU executive to restrict or even ban imports from countries seen as distorting the single market. It would require minimal consultation from member states, allowing faster action from Brussels.

This instrument would come alongside a diversification instrument and a solidarity mechanism which are already in the works.

“We see jobs lost in our industrial heartlands,” von der Leyen said, adding that the EU will continue to seek deals with Beijing after an agreement to cap Chinese hybrid imports. As POLITICO reported last week, the EU is expected to prioritize chemicals and industrial machinery in its efforts to protect European industry from Chinese competition.

Camille Gijs contributed to this article.

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Europe’s conservatives have 2 new targets in their campaign to weaken EU climate laws

BRUSSELS — Center-right lawmakers in the European Parliament are intensifying efforts to weaken two EU climate laws, a campaign that could undermine the bloc’s push to cut planet-warming emissions.

The European People’s Party, the largest group in Parliament, will this week push for a three-year delay to rules on emissions of the climate pollutant methane, a change the fossil fuel sector and the U.S. government have lobbied hard for.

A growing number of EPP lawmakers now also want to delay — or scrap altogether — a new carbon price on transport and heating, known as ETS2, according to a document obtained by POLITICO. That puts them in line with several EU member countries, including Italy and Poland, which pushed for a delay to the new carbon price at a meeting of EU leaders in Brussels last week.

Both policies are central pillars in the EU’s effort to reduce its planet-warming emissions. A successful repeal of ETS2 in particular would be a blow to EU climate goals, as it covers around 40% of the bloc’s greenhouse gas emissions.

But it would also be a major victory for conservative and pro-business lawmakers and national governments that have been campaigning for less stringent EU climate laws in the name of industrial competitiveness.

Ax the tax

The EU Emissions Trading System, launched in 2005, requires power plants and factories in sectors like steel, chemicals and cement to acquire carbon allowances for every ton of carbon they emit. The total number of allowances is reduced each year, eventually reaching zero.

ETS2 applies the same idea to suppliers of fuel for transport and heating from 2028.

The cap-and-trade scheme will be a powerful tool for reducing emissions from these highly polluting activities. But many policymakers worry it will raise the cost of gasoline, diesel and natural gas and add to voters’ cost-of-living pressures.

Nine national delegations of the EPP — the Polish, Spanish, Italian, French, Romanian, Croatian, Slovenian, Slovak and Estonian — are now calling for ETS2 to be repealed, according to draft amendments obtained by POLITICO. “ETS2 should be deleted,” the amendment, sponsored by Polish EPP lawmaker Adam Jarubas, argues.

Another amendment in the same draft, backed by 10 national delegations, takes a softer approach and asks for ETS2 to be “postponed until 2031.”

EU legislators are already reviewing a proposed reform of the EU’s original Emissions Trading System, which makes amending ETS2 — which is contained in the same legislation as the first ETS — much simpler.

No majority in Parliament or among member countries currently supports delaying or repealing ETS2, but a string of elections next year raises the likelihood that more right-wing governments will be in power before ETS2 comes into force, adding momentum to the push to scrap or delay it.

Methane delay

Last week, the European Commission, the EU’s executive arm, proposed a year-long delay to rules that will require oil and gas importers to monitor, report, and eventually reduce emissions of the potent greenhouse gas.

The delay — which affects monitoring requirements and later obligations on methane intensity — followed months of lobbying from industry and member countries, which claimed the Commission provided insufficient clarity on how to comply. The U.S. government also pushed to delay the rules, which are currently due to come into force on Jan. 1, 2027.

But the proposed delay requires support from both governments and lawmakers, some of whom want to go well beyond the Commission’s revised timeline.

On Tuesday, European lawmakers voted to fast-track parliamentary discussions around the Commission’s proposed delay, laying the groundwork for a fresh vote Thursday. At that vote, the EPP is expected to campaign for a three-year delay of the rules, as well as possible further adjustments, according to one lawmaker familiar with the matter.

Dimitris Tsiodras, a European lawmaker, echoed industry concerns that compliance risks could deter cargoes from Europe if left unaddressed. “We cannot afford to put our energy supplies at further risk,” he told lawmakers.

Right-wingers against the rules will still face opposition from left-leaning lawmakers. Jutta Paulus, a German Greens lawmaker who steered the parliament’s position on the legislation in 2024, announced on Tuesday that her party would table an amendment to reject the delay altogether.

However, the EPP could reach an outright majority if it joined with right-wing and far-right groups.

The party is already exploring a deal with those groups if the Socialists and Democrats — the Parliament’s second-largest group — don’t cooperate with its push for a longer postponement, according to two people familiar with the matter. S&D lawmakers opposed extending the delay earlier this month, but a group spokesperson said the party has yet to adopt a formal position in negotiations.

A parliamentary push for a three-year delay could also invigorate member countries’ efforts to delay the rules further.

Member countries are currently divided, though many, including heavyweight France, support the one-year delay proposed by Brussels, according to two diplomats briefed on the matter.

Poland, Slovakia and Czechia, meanwhile, would prefer a three-year delay, but their luck in campaigning for an extension may depend on where Germany lands, the people said. Berlin is currently split between its socialist-controlled environment ministry and its center-right-controlled energy ministry, leaving countries uncertain whether they can formulate a joint position tomorrow, they added.

Italy is also trying to decide whether to opt for one year or more, two diplomats familiar with the matter said.

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Ed Miliband’s clean energy company is being split apart

LONDON — Labour swept to power with a big, expensive promise: to create a government-owned energy company, hand it billions to invest in British renewables, and watch it grow, eventually, to rival other state-owned energy giants. 

Two years on from the foundation of Great British Energy, that isn’t what has happened. 

Analysis from POLITICO shows billions of pounds from its budget have been redirected to schemes not included in GBE’s initial remit, stripping away some of the cash earmarked for costly, large-scale renewable energy projects like wind and solar. Those funds are being used instead for very different purposes, like planning new nuclear schemes and reviving Britain’s creaking electricity grid. 

Set up by then Energy Secretary Ed Miliband, the government backed GBE with £8.3 billion of fresh funding. Its purpose at the time seemed clear. “Great British Energy will own, manage and operate clean power projects,” Miliband pledged, “and generate energy in its own right.” 

Labour officials familiar with GBE plans told POLITICO in 2024 local projects would get around £3 billion of its total budget, while the rest would go on helping the company establish itself in the market, including by taking stakes in wind and solar projects. 

Yet now experts can’t agree on what, exactly, GBE is for. 

How to spend it

Miliband’s GBE pitch to the public was ambitious.  

The company would allow Britain to become a bigger player in its own clean energy market in Labour’s dash to hit green goals, he said. Referencing huge state-owned companies in Denmark and France, he told Channel 4 News weeks after the election that GBE was “not going to become Ørsted or the generation arm of EDF overnight. But that is the long-term vision.” 

Soon after GBE passed into law, though, former Chancellor Rachel Reeves reassigned £2.5 billion of its budget to help developers design small-scale nuclear power plants and prep sites where those mini-nukes will eventually go.

The government also scaled back its funding for those local, smaller-scale projects, which include getting solar panels onto school and hospital roofs. The mooted £3 billion for GBE’s Local Power Plan became just £1 billion when more details were announced this February. 

GBE has set aside another £1 billion to build up clean energy supply chains.  

And that’s all before Prime Minister Andy Burnham used Labour’s annual conference to pledge another whack of GBE’s budget to a totally new venture: Great British Grid. 

Enter GB Grid  

In a bid to put his own stamp on Miliband’s pet project, Burnham announced that the new unit would sit within GBE, using some of its budget to speed the build out of Britain’s creaking grid network.  

GB Grid will invest alongside existing grid operators in a bid to cut costs, Energy Secretary Miatta Fahnbulleh said last week, at a time when the grid regularly struggles to handle the levels of power being generated by developers. 

Energy experts are torn over whether GB Grid, in particular, is a smart pivot for the government — but acknowledge it is not the same thing Miliband promised to deliver.  

“I think the focus has shifted, but I don’t think that should be seen as a problem,” said Joshua Emden, a senior research fellow at the Institute for Public Policy Research think tank. 

GB Grid would have access to £4 billion of GBE funding, according to media reports published at the time of Burnham’s announcement, although officials from the Department of Energy Security and Net Zero insist they “don’t recognize” that figure. 

It is still enough for Kemi Badenoch’s Conservatives to pile the pressure on ministers to explain why their plans have changed. 

“Taking half the GB Energy budget and putting it into a venture that was only announced a few weeks ago leads to the obvious question of: What actually is GB Energy for? And does the GB Energy of today bear any resemblance to what the government envisaged in July 2024?” asked Shadow Energy Minister Harriet Cross. 

Doubters and defenders  

Some energy industry officials are doubtful that setting money aside for grid investment is the best use of public cash.  

“If it does that last mile [of grid] to a data center, if it helps where there isn’t actually any program or plan, [then] fine. We’re not going to say: ‘No, don’t spend it on making the grid better,’” Dhara Vyas, chief executive of the industry group Energy UK, told a panel at Conservative Party Conference earlier this month. 

But transmission operators — who run the network — are already spending tens of billions on the grid, she said. “The energy transition will be paid for by the private sector.”  

GBE “made a slow start and has focused on low-impact activities, important though they are,” said Bill Esterson, a Labour MP and chair of parliament’s Energy Security and Net Zero Committee. Creating GB Grid, he argued, “suggests a shift in emphasis to build what the country needs where the network companies are not delivering.” 

The pivot “makes sense as an efficient use of government money,” argued IPPR’s Emden, if there’s a choice between investing in power generation — where there’s competition between providers — and in the grid where private networks have a “total monopoly.” 

GB Energy has “the foundations now to create something genuinely useful,” argued one government figure. “Politicians of all stripes should give it the space to get on with the job.”  

A spokesperson for DESNZ said “securing new homegrown energy and building a grid fit for the 21st century work hand in hand. Great British Grid will bring public and private investment together, helping to build the infrastructure Britain needs.” 

Additional reporting by Nicholas Earl.

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5 things the EU wants to change about its Arctic policy

BRUSSELS — The European Union is beefing up its presence in the Arctic to catch up with neighboring powers carving new trade lanes and drilling for resources under the melting ice.

On Tuesday, the EU unveiled a new plan called Northern Neighborhood. It’s meant to prepare for rising military and commercial activity in the north driven by climate change, and calls for new transport, research and security infrastructure in the region.

“The Arctic is one place where the tectonic plates of geopolitics are colliding. And it’s not someone else’s frontier. It’s part of the European Union,” Commission President Ursula von der Leyen declared as she unveiled the strategy.

She pointed to Russia’s expanding military footprint and the race for emerging shipping routes and critical resources as forces reshaping Europe’s security and economic future.

Climate change is dramatically affecting the Arctic. Planet-warming emissions are making the ice melt faster, disrupting the region’s fragile ecosystems. But where the ice is disappearing, countries like China, Russia and even Canada see an opportunity.

The EU is now scrambling to update its existing policies on the Arctic — once largely focused on environmental protection — to give more importance to security, shipping and extracting resources.

The strategy calls for a rebranding of the EU’s existing partnerships with Norway, Iceland, Canada and the U.K., backed by regular summits to set joint priorities and launch projects.

Here are five things Brussels wants to change about its Arctic policy.

1. Defense and security 

The strategy warns that Russia is rebuilding its military presence in the Arctic and that China has growing strategic ambitions in the region.

The EU plans to set up a pilot research project using satellite and maritime observation in 2027 and share ship-tracking data to help identify Russian shadow fleet vessels.

In the longer term, it wants EU countries to lead on a maritime security hub to pool intelligence on threats ranging from undersea cable sabotage to illegal fishing. It also calls for setting up an Arctic Cable Hub alongside NATO to monitor and protect subsea cables in the North Atlantic and the Arctic. The strategy lacks any information on funding for these projects, however.

Finnish MEP Mika Aaltola of the European People’s Party said the new focus on the Arctic is long overdue.

“Europe hasn’t been thinking about [the Arctic] enough,” Aaltola said. “Because of the ice melting and climate change, it’s becoming kind of the next great game. And if that happens, then what are the European positions when it comes to Russia, China and also the United States?”

2. Access to energy resources

The new policy sticks with EU promises not to drill for fossil fuels in the Arctic.

“The EU remains committed to ensuring that oil, coal and gas stay in the ground, including in Arctic regions,” it reads. Instead, Brussels promises to develop renewable energy projects in the region but drops an old commitment to convince the rest of the world to follow its lead. 

“It is good that the Commission maintains its opposition to oil and gas drilling in the Arctic,” said Delara Burkhardt, a Socialist MEP, but not pressing for a global ban “weakens the EU’s ability to push for stronger international protection and leaves the door open for other countries to exploit one of the world’s most fragile ecosystems.”

The EU’s former Arctic policy — drafted in 2021 — committed the bloc to pursuing an international moratorium on Arctic oil and gas extraction. 

Norway — which supplies a lot of energy to the EU — has made it clear it would still drill in the Arctic regardless of the bloc’s position.

3. Critical raw materials 

The EU is under pressure to secure new supplies of critical raw materials to reduce its dependency on China.

The new strategy says it will continue working with Canada, Greenland, Norway and the United States to develop critical raw materials projects in the region, but insists it will do so while following the “highest social, environmental and governance standards,” and work to the “benefit of local communities in respect of Indigenous Peoples’ rights.” 

Brussels has already labeled several critical raw materials projects, including the Sokli project in Finland and the Per Geijer rare earth deposit in northern Sweden, as “strategic” under EU law, which means they could benefit from faster permitting procedures.  

But some of these projects face serious local resistance from local and indigenous communities, who say the mining plans threaten reindeer herding and protected ecological sites. 

4. New trade routes

Melting ice is opening up new shipping routes in the far north, and the EU is worried that it could be sidelined from the region. But the strategy offers little on that front; its only action is a study on new shipping lanes.

The number of vessels operating in the area covered by the Polar Code — international regulations covering shipping in the Arctic and Antarctic — rose by 40% between 2013 and 2025, while the total distance sailed nearly doubled, said Michael Kingston, a special adviser on polar issues to the Arctic Council on marine protection.

Recent transits by Chinese and South Korean container ships using the Northern Sea Route running along Russia’s Arctic coast show the appeal of a route that is about 20 days faster than conventional routes, he added. 

“Russia builds the infrastructure, China facilitates and funds some of it,” Aaltola said, calling it part of a “grand bargain” between the two.

He complained that the EU is left on the sidelines. “When it comes to the Arctic, there is a vacuum of interest, and there’s also a vacuum of resources and institutions participating.” 

The route is still mostly seasonal for Russian oil and gas tankers, said Ksenia Vakhrusheva, project manager and Arctic project adviser at the environmental group Bellona. Ice, unpredictable weather, increased insurance costs and Moscow’s control over the route make it unlikely to become a mainstream commercial corridor anytime soon, she added.  

Europe also has leverage as the final customer for Chinese shipments, Vakhrusheva said.

“If the EU sends a strong message to China that they do not want goods shipped via NSR, China won’t use this route for transit,” she said. “For NSR to become a valid transit route you need two sides,” she said, “a seller on one side and a buyer on the other.” 

5. Environmental protection 

The strategy is light on measures to shield the Arctic from the impact of global warming. However, it does warn that increased shipping in an “inherently harsh and poorly charted environment” raises the risk of “catastrophic accidents, severe marine pollution” and hybrid interference.  

“Increased shipping in the Arctic both exploits this vulnerability and exacerbates it,” said Dave Walsh, an adviser at the Clean Arctic Alliance NGO, citing carbon emissions, wastewater discharge and noise as some of the impacts of more traffic.

Safety and the environment have not been a priority for Moscow, said Vakhrusheva, and a shortage of high ice-class ships combined with the need to sell oil and gas “to whoever is ready to buy it” raises the risks. 

Protections such as a ban on heavy fuel oil are still negotiated at the International Maritime Organization, where the EU is a key player, she said, adding that such measures will push up the cost of Arctic shipping. 

The strategy says Brussels will push at the IMO to turn measures to limit black carbon — soot emitted by ships that falls on snow and ice and accelerates melting — from voluntary guidelines into binding rules.

It also calls for expanding the definition of Arctic waters to everything north of 60 degrees latitude, replacing the current boundary, which excludes much of the waters around Iceland and Norway from special Arctic shipping rules.

It also promises to keep pressing for compliance with the Polar Code through tools such as an IMO regulation that involves national maritime authorities inspecting foreign-flagged ships in Arctic ports to verify compliance with international safety, environmental and crew-qualification standards. 

The document includes non-binding commitments on biodiversity loss and plans to boost ocean and Arctic research programs. It also promises to launch an “initiative to promote local public and private investment in the Arctic around blue economy sectors.” 

Jakob Weizman contributed reporting.

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Don’t be Liz Truss, Badenoch tells Burnham

LONDON — Kemi Badenoch warned Labour Prime Minister Andy Burnham on Tuesday not to repeat the economic mistakes of her former boss Liz Truss in his first budget next Wednesday.

The Tory leader said higher national debt, increased gilt yields and extra government spending are creating a gloomy economic picture — and demanded sharp spending cuts from the ruling Labour government next week.

“The lessons of the mini-budget are: if you don’t balance your budget, if you give away £150 billion in subsidizing people’s energy bills, but you don’t cut spending, then the markets will react,” Badenoch said, citing former Tory leader Truss’ ill-fated mini-budget in 2022, which triggered a sharp sell-off in U.K. government bonds and saw the value of the British pound fall.

Truss — Britain’s shortest-serving prime minister, who spent just 49 days in Downing Street — announced Tuesday she is publishing a new book setting out “what really happened” during the mini-budget in 2022, according to a press notice issued by her spokesperson.

“Bank Job: A short book on how the Bank of England broke the bond market and brought down the government” will be published later this month.

The ex-PM has blamed the mini-budget’s consequences on the Treasury, the Bank of England and the Office for Budget Responsibility watchdog.

Badenoch told a press conference in London she does not believe Labour is paying attention to the consequences of that Conservative budget by failing to reduce spending: “They are the ones who want to repeat the mistakes of four years ago, we are not going to be making that mistake again.”

“We need to live within our means,” she said. “We have to stop borrowing so much, but instead, Labour are taking out more loans to pay the interest on our existing loans.”

Questioned on why the public should trust her judgement on economic competence, Badenoch, who served as Truss’ international trade secretary, told POLITICO: “I am not Liz Truss and I think that the public can tell the difference.”

Badenoch said she only saw the mini-budget when it was presented and collective responsibility “doesn’t mean that you agree with all of the decisions that are made.”

“She needs to take responsibility for it, one way or another,” Badenoch said. “That is her issue.”

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UK to deploy fighter jets to help Saudis against Houthi attacks

LONDON — U.K. fighter jets will be sent to aid Saudi Arabia in defending itself against attacks on critical energy and civilian infrastructure by the Houthis.

The Iranian-backed Islamist militia group, based in civil war-hit Yemen, has been launching ballistic missile strikes on Saudi Arabia for the past few weeks, successfully hitting three airports earlier this month.

The Ministry of Defence announced Tuesday that Royal Air Force Typhoon fighters will be deployed to the Gulf Kingdom — while stressing that they will be only used in a defensive capacity.

U.K. Defence Secretary Wes Streeting said the “continuing attacks” on the U.K.’s ally are “absolutely despicable.”

“The targeting of the airport in Riyadh in particular shows the lengths the Houthis are going to escalate the situation in the region,” he added, referencing the attacks earlier this month that killed 14 people and injured hundreds more.

Streeting said that the fighter jets will be used to protect Saudi airspace from drones and missiles. The U.K. will also send an Atlas A400M aircraft, used to transport the equipment, as well as military advisers.

“This builds on the UK equipment and personnel we already have in the country to defend against Houthi air attacks,” Streeting said.

The MoD argued that there is a link between the conflict in the Persian Gulf and the situation domestically in the U.K., pointing to disrupted energy supplies and a subsequent rise in the cost of living.

Since Prime Minister Andy Burnham arrived in Downing Street in July he has offered more support to Saudi Arabia. In September, he agreed to a request for air-to-air refueling of the country’s jets.

Pressed Tuesday on whether the U.K. risked being sucked into the Saudi war with the Houthis, Burnham’s official spokesperson told reporters: “I don’t accept that characterization. Our support for Saudi Arabia is considered proportionate and focused on helping them defend themselves against relentless Houthi attacks.”

They added: “Regional instability can have a serious impact at home in the U.K. We’re clear it’s in the U.K.’s economic and security interests that the Houthis do not succeed, and our approach is about defending our people, our interests, and our allies.”

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French riots lay bare risks and opportunities for 2027 election candidates

PARIS — Looting and rioting across France over the weekend are threatening to reshape the contours of the French presidential race.

Far-right front-runner Marine Le Pen is seizing on the crisis to cast herself as the candidate of law and order, but there are risks for her too. Many voters see her as a highly divisive leader whose 2027 victory would only deepen the societal fault lines exposed by the riots.

Far-left firebrand Jean-Luc Mélenchon, widely tipped to challenge Le Pen in the second round next year, is also treading carefully as rivals accuse him of encouraging the rage on the streets that has morphed into pillaging and arson.

For the flailing centrists, there is now an opportunity to finally make an impression in the contest — but only if they can distance themselves from President Emmanuel Macron, who is seen as fluffing his response to the nationwide wave of vandalism.

Overall, it’s pushing the election into uncharted waters.

“If there’s a real crisis, you don’t know where it could lead,” said one conservative who holds regular talks with officials from the far-right National Rally and was granted anonymity to discuss the subject.

Where does that leave the candidates? POLITICO takes a look at the strategic calculus for the leading runners across the political spectrum.

Marine Le Pen, on the up

Le Pen is receiving an immediate boost. Even her rivals admit it.

This Saturday’s unrest “benefits the far right,” said center-right European Member of Parliament Nathalie Loiseau. “They are circling around the violence like vultures,” she said in an interview.

Le Pen has already cast herself as the alternative president, delivering a sober address to the nation Sunday and pitching herself as the candidate of a “pacified France.”

Jordan Bardella, president of her National Rally party, upped the ante on the protests and pitched his party as the only one able to restore order, dialing up fears about the pillaging. The rioters “will soon be breaking into people’s homes,” he said at a press conference in Paris. “The authorities are collapsing.”

But excessive, prolonged chaos could backfire on a party long seen as instigating civil unrest. And the topic is already becoming a talking point inside the National Rally.

Marine Le Pen holds a press conference on the sidelines of a meeting of the Patriots for Europe in Brussels on Oct. 14, 2026. | Nicolas Tucat/AFP via Getty Images

“Some say that this shows that there will be riots if the National Rally comes to power,” said Charles-Henri Gallois, one of Bardella’s advisers. “But I don’t believe it.”

According to the conservative quoted above, periods of instability can lead the French to turn their backs on anti-establishment figures and prefer traditional veterans.

“You could end up with [Charles] De Gaulle on the Champs-Elysées,” the official said, referring to how the first president of the Fifth Republic emerged with extra powers after the 1958 crisis that roiled the nation.

Jean-Luc Mélenchon, on the defensive

Far-left leader Mélenchon is in a bind as he walks a tightrope between supporting protesters and distancing himself from violence.

The France Unbowed party supported the school protests in the run-up to last weekend’s riots, and far-left elected officials have played a prominent role in the blockades, either in decrying alleged police violence or in support of the protesters.

In the battle for leadership between Mélenchon and center-left MEP Raphaël Glucksmann, the former grabbed the limelight.

Jean-Luc Mélenchon is pictured during a demonstration in Paris on Oct. 17, 2026. | Augustin Pasquini/Hans Lucas/AFP via Getty Images

But the violence this weekend could end up marginalizing the far left, especially with the government and political rivals accusing them of fueling the unrest. “They tried to aggravate the situation,” Loiseau said.

According to a poll from Cluster 17 for POLITICO, the 75-year-old far-left firebrand is already one of the most commonly “rejected” politicians in France.

On Monday, Mélenchon tried to turn the tables, firing back at the government, saying the prime minister was fomenting “disorder” with his accusations that ultra-left groups were trying to disrupt the election.

Edouard Philippe, looking for a reset

For the center-right presidential hopeful Philippe, the riots aren’t good news either. He has to work hard to distance himself from his old boss, President Emmanuel Macron, who is seen as failing to respond sufficiently to the crisis. (Philippe was Macron’s first prime minister.)

But the protests could also be his opportunity to show some character, and rebut critics who think his campaign lacks energy and panache. Philippe, the best-placed centrist candidate to beat the far-right, has seen his poll ratings stall in recent months and has struggled to cut through the campaign noise.

Edouard Philippe gives a speech in Paris on Oct. 14, 2026. | Dimitar Dilkoff/AFP via Getty Images

A break with Macron might just be what he needs.

Philippe came out hard against the president after he failed to announce any measures during his primetime television address Sunday. “I would have preferred… decisions and initiatives to restore order,” he wrote online. “This country needs someone in command.”

But the former PM will need to stick his neck out more if he’s going to make an impact.

“He’s very presidential, and it’s a posture that suits him,” said one of Macron’s ministers, who, like others cited here, was granted anonymity to speak candidly.

“But he’s not saying anything. What’s his measure? Why doesn’t he say we need to call a state of emergency? “

Raphaël Glucksmann, on the offensive

For the MEP Raphaël Glucksmann, the protests are a trial by fire after he won the Socialist Party primary contest earlier this month and became the center-left’s presidential candidate.

On Monday, Glucksmann tried to strike a very different note from Mélenchon, telling reporters that “it’s unbearable … that hordes of looters should attack symbols of the state.”

Raphaël Glucksmann speaks in Paris on Oct. 11, 2026. | Benjamin Vodant/Hans Lucas/AFP via Getty Images

Sensing a chink in the far-left leader’s armor, he accused the leader of France Unbowed of being “a springboard” for Le Pen, who would be “the beneficiary of the chaos.”

Glucksmann has seen his poll ratings go up since he won the Socialist Party primary outright, reaching 15% to 16.5% according to a recent Elabe poll — in a similar territory to Mélenchon and Philippe.

But the minister quoted above expected Glucksmann to peak soon.

“He can only take voters away from Mélenchon,” the minister said. “A left-wing voter may vote for the right, but a right-wing voter won’t vote for the left anytime soon,” the person said.

Emmanuel Macron, on the skids

Macron is being roasted for going on television to address the nation and announce … absolutely nothing.

On Sunday, Macron promised that rioters who “destroyed” things would have to pay the price and called for “clear answers” on why the protests turned violent.

“Fucking hell, it’s rubbish,” said one former senior government official.

Macron has cultivated an image of being above the fray and went on a trip to the Middle East on Monday. But his failure to respond to the violence risks damaging his final months in power. “It’s out of touch,” a regional official said.

According to the minister quoted above, Macron should have let his prime minister do the talking but instead was encouraged to make “a speech to calm” the situation.

On Monday, Prime Minister Sébastien Lecornu tried to get a grip on the situation, announcing localized curfews, movement restrictions, and bans on public demonstrations.

But another day of demonstrations has already been announced for next Saturday, sparking fears the protests will snowball into sustained protests similar to the Yellow Vests movement in 2018 and 2019.

If so, this chaos will be a defining element of the 2027 campaign.

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The fossil fuel comeback is here

Photo illustration of industrial smokestacks.

The US is building more fossil fuel infrastructure than it has in a decade while renewable energy growth slows down, a new report shows.

Electricity demand is also climbing faster than it has in more than a decade with more data centers, factories, and electric vehicles plugging into the grid. Despite those growing demands, the Trump administration has sought to hobble the wind and solar industries in favor of fossil fuels.

America's energy landscape is already shifting as a result, according to the report published last week by the nonprofit Environmental Defense Fund and research firm Atlas Public Policy. If all the gas projects in the d …

Read the full story at The Verge.

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Amazon is funding a new nuclear plant in Indiana

A digital rendering of a promposed nuclear energy plant that Amazon is funding in Indiana.
It’ll be several years before the facility is complete, but this digital rendering gives us some idea of what it’ll look like. | Image: Amazon

Amazon has signed an agreement with X-energy and American Electric Power (AEP) to fund the building of a new nuclear energy facility in Indiana. The proposed plant, which would replace the now defunct coal-fueled Breed Generating Station in Fairbanks, Sullivan County, aims to provide up to 960 megawatts of carbon-free energy for both the regional power grid and Amazon's data centers.

No timeline for construction or operation has been announced for the facility, which Amazon says "could" create 1,000 construction jobs and 100 permanent roles. The facility in Indiana is targeting to build 12 Xe-100 SMR's, an advanced (but unproven) reactor th …

Read the full story at The Verge.

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The EU heads into a perfect political storm

The EU heads into a perfect political storm

Last week’s summit gave Brussels a taste of how hard it’s going to be to get a deal on the budget — or anything else.

By SEBASTIAN STARCEVIC
in Brussels

Illustration by Natália Delgado/POLITICO

The EU is already struggling with how to get its largest-ever budget agreed, plug a massive financial hole for Ukraine and navigate geopolitical pressure from the U.S. and China. Now, it also faces being paralyzed by domestic political strife in the countries that collectively make up around 60% of its GDP and population.

“Everybody used to understand that we need to finish … a political agreement by the end of the year,” Cypriot President Nikos Christodoulides told POLITICO in an interview on the sidelines of last week’s European Council, referring to the bloc’s fraught budget negotiations.

But the Spanish election means that will no longer be possible, he said. And next year, “it’s going to be France, Italy” and others going to the polls, Christodoulides added, predicting even more complications for the bloc.

The EU is facing an unprecedented dilemma: Its four biggest economies are all heading into elections or political upheaval, potentially hamstringing the bloc’s ability to get anything done.

Spain will go to the polls next month, with the center right and far right on track to take power. France is changing presidents in April, with polls favoring far-right figurehead Marine Le Pen. The Alternative for Germany is ascendant, putting Friedrich Merz’s chancellorship in doubt. And Italian Prime Minister Giorgia Meloni’s unusually long-serving government is also heading to an election in 2027.

The consequences are already becoming clear.

António Costa, Volodymyr Zelenskyy and Ursula von der Leyen arrive to attend an EU summit in Brussels on Oct. 16, 2026. | Nicolas Tucat/AFP via Getty Images

The bloc’s latest summit offered an early taste of what lies ahead: After two days of talks, leaders failed to make headway on the €2 trillion budget and instead became embroiled in an unexpectedly bitter row on energy policy. The summit’s conclusions notably omitted any mention of finding consensus on the budget before the end of the year, with member countries resisting a push by European Council President Antonio Costa for an end-2026 deadline, although there are summits scheduled for November and December.

If those meetings fail to produce a deal, then the already fractious talks will spill over into 2027, when electoral battles are likely to loom even larger over negotiations — and governments may be increasingly reluctant to make the compromises needed to reach agreement.

Triple assault

The paralysis Brussels fears as Europe’s election cycle gathers pace is already beginning to take hold, with last week’s summit exposing how difficult it is becoming to forge the compromises the bloc needs.

Rather than strike any big deals (a Franco-German accord on cars was the one exception), the leaders used the gathering to dig in on entrenched positions and seek tactical advantages over rival camps.

The pessimism was palpable, according to six diplomats and officials POLITICO spoke to, with several warning the EU faces sharp headwinds in the coming months. All were granted anonymity to speak freely.

“Next year, it will be worse,” said one senior EU diplomat.

“It’s true, because of this calendar for the elections … in the next year it’ll be much more difficult in the member states and inside the [European] Parliament,” said Carla Tavares, a senior MEP with the Socialists and Democrats and co-lead on budget negotiations.

The bloc’s internal malaise could hardly come at a worse time.

From U.S. President Donald Trump’s undermining of the transatlantic alliance to an ever-widening trade imbalance with China, the EU is facing mounting geopolitical and economic pressures on multiple fronts.

Costa, Bart De Wever, Emmanuel Macron and Rob Jetten speak during a European Council summit in Brussels on Oct. 15, 2026. | Nicolas Maeterlinck/AFP via Getty Images

“They seek our division. They want our division,” Belgian Prime Minister Bart De Wever told reporters at a late-night briefing during the summit, not mentioning names but referring to countries to the east and west of Brussels. “And they have, of course, points where they can hurt us.”

Former Lithuanian Foreign Minister Gabrielius Landsbergis, now a visiting fellow at Stanford University, was less circumspect. “Now we are under assault from three sides: from the U.S., Russia and China,” he said.

Washington is questioning the old alliances that have underpinned European security for generations. Moscow is waging a shadow war across Europe, from cyberattacks and sabotage to an attempted drone attack at Leipzig airport that Berlin blamed on the Kremlin. Beijing is tightening its grip on critical supply chains and flooding European markets with cheap exports.

Then there’s the Ukraine problem. The country is facing a budget shortfall of $30 billion to $35 billion next year, according to the IMF, with Russia battering its energy infrastructure ahead of a brutal winter. That’s despite the €90 billion the EU already agreed to stump up last year.

Landsbergis said the coming months are looking “extremely dire” for Kyiv. “Everything falls on European shoulders,” he said.

Ukrainian President Volodymyr Zelenskyy sounded a grim note at last week’s summit, telling reporters that if Ukraine falls, 20 million Ukrainians will flood into the EU. “Russia is killing us,” he said. “They don’t want to stop.”

One solution to Ukraine’s funding woes could be the €200 billion in Russian assets that have been immobilized indefinitely in Brussels-based financial depository Euroclear. But there is no sign of the EU finding common ground on that front either, with Belgium, which vetoed previous efforts to use the assets to help Ukraine, still refusing to budge.

“Nothing has changed,” Swedish Prime Minister Ulf Kristersson said as he exited last week’s summit early.

Other potential solutions, such as issuing more joint debt, will require messy compromises — just as Brussels finds itself with even less room to maneuver.

Who you gonna call?

The EU’s problems go beyond its budget or individual policy files. With the political futures of several of Europe’s most powerful leaders in question, Brussels risks losing the stable alliances and long-serving national heavyweights needed to broker compromises.

“We now have Europe with no obvious leader,” another EU diplomat argued. Commission President Ursula “von der Leyen is powerful. But we do not have a Merkel or Mitterrand.”

French President Emmanuel Macron cannot constitutionally serve a third consecutive term and will have to find new digs in Paris after leaving the Élysée Palace in April. During a closed-door discussion at last week’s summit, Macron admitted he wouldn’t have a political mandate to sign a deal on the budget in his final months in power, four European diplomats said.

Spanish Prime Minister Pedro Sanchez is on track for defeat after eight years in power, according to polls. Spaniards will vote on Nov. 29, meaning Sanchez will be in full election mode during EU leaders’ meetings on Nov. 13 and Nov. 26.

Costa, who has stressed the need to reach an agreement on the EU’s budget by the end of 2026 to make sure it’s ready to go by 2028, waved off fears that the bloc’s next spate of elections could get in the way.

“We are living in 27 democracies,” he said on Friday. “More or less every month we have one election. If it’s about elections, we never could approve a new budget.” 

Regardless of the result, Madrid is not expected to form a government until January, which could derail the budget talks, according to two EU diplomats.

Photo-Illustration by POLITICO/source via Getty Images

It’s anyone’s guess how long German Chancellor Merz has left in office. While the next federal election is not scheduled until 2029, the AfD’s growing strength and his own nosediving popularity complicate how much Merz might be willing to compromise.

Italy, too, is set for elections in October 2027. Another EU diplomat said they did not expect Meloni to wait that long, arguing she could call a vote much earlier.

There could be a sweet spot in January to get the budget over the line, a senior EU official suggested. It may be the last chance to strike a deal before Europe’s political upheaval makes compromise even harder to come by.

So far, the EU’s leaders have simply been “too slow,” said Siegfried Mureșan, the European People’s Party’s co-lead on the budget. “Time is running out.”

Nicholas Vinocur contributed reporting.

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Ukraine strikes oil facility in St. Petersburg as part of ‘massive’ drone attack

Ukraine struck an oil terminal in St. Petersburg Sunday morning in what Russian state media called “one of the biggest drone attacks of the year.”

Alexander Beglov, governor of St. Petersburg, said on Telegram Sunday that the city underwent a “massive” overnight attack from Ukrainian drones. “The Ministry of Emergency Situations continues to extinguish fires at the Petersburg Oil Terminal, the Ruchyi oil depot, and industrial warehouses in the Kolpino district,” he said, adding that one person died and several others were injured in the incident.

The drone strikes come as Kyiv and Moscow ramp up attacks on each other’s infrastructure. Ukrainian President Volodymyr Zelenskyy said last week he had ordered the resumption of strikes on Russian oil refineries following a three-day pause after U.S. President Donald Trump declared he had brokered an energy ceasefire between Ukraine and Russia.

Trump repeatedly urged Ukraine to halt its attacks and blamed the country for rising fuel prices — while also calling for Zelenskyy to be replaced as president.

Writing on X Sunday morning, the Ukrainian president highlighted Moscow’s continued attacks on Ukraine. “In total, over this past week, the Russians have attacked Ukraine with almost 2,700 attack drones, 1,700 aerial bombs, and 66 missiles, most of them ballistic,” he wrote, adding that the U.S. “should see that Russia is not taking any reciprocal steps in response to sanctions relief or agreements.”

Separately, Vilnius said that a suspected drone may have self-detonated in Lithuania while on a flight path toward Latvia Sunday morning. A spokesperson for the Lithuanian armed forces said NATO air defense mission fighter jets were scrambled in response to the incident near the Latvian border.

The provenance of the suspected drone is unclear, but Robertas ​Kaunas, Lithuania’s defense minister, said the object was likely a ​drone which had entered the country from Poland, adding that he had proposed a ⁠joint investigation with his Polish counterpart.

Police searches are also underway in eastern Poland after reports of an unidentified object entering the country’s airspace following a Russian attack on Ukraine.

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Starlink restrictions in Ukraine a ‘planned operation’, Zelenskyy says

Starlink restrictions hampering Ukraine’s war effort are “a planned operation,” Ukrainian President Volodymyr Zelenskyy said on Saturday.

The satellite service operated by Elon Musk’s SpaceX is still deactivated in Ukraine at speeds over 160 km/h, which prevents some of its drones to intercept high-speed Shahed drones used by Russia, Zelenskyy told reporters in a WhatsApp chat.

He added that Ukraine conducted a test by sending Starlink-equipped vehicules to European Union countries, at speeds over 180 km/h. “Starlink kept working … The conclusion is this: the restrictions are in effect in Ukraine, but they are not in effect in European Union countries. So, this is a planned operation,” Zelenskyy said.

The restrictions have revived questions on Ukraine’s reliance on the satellite system operated by a U.S. company amid escalating tensions between Kyiv and the White House. “This will cost many of us our lives,” an experienced Ukrainian officer told POLITICO and the Axel Springer Global Reporters Network earlier this week.

“We’re reaching out to everyone at the military level, at the Ministry of Defense level, and at the diplomatic level, including to SpaceX. Right now, no one is responding to our military or the Ministry of Defense,” Zelenskyy told reporters.

The European Union is under increasing pressure to provide Ukraine with an alternative to Starlink. But negotiations between Brussels and Kyiv over access to the bloc’s Govsatcom program — which gives participating governments secure communications capabilities— have been stalling. And IRIS², the EU’s in-house planned network to match Starlink, is only expected to come online in 2030.

“The Europeans are now raising the question of alternatives themselves. And they’re already working on them. They’re already making progress, and they’ll succeed in this area. I can already see that,” Zelenskyy said.

SpaceX did not immediately responded to a request for comment.

Earlier on Saturday, Zelenskyy accused Russia of looking to create a blackout across Ukraine, amid attacks on energy infrastructure and the waiver of U.S. sanctions on Moscow.

“Russia is trying to cause a blackout in Ukraine right before winter. Russia is trying to leave millions of our people without electricity and heating. Pressure is needed to stop this,” he said on Telegram.

“An American sanctions blackout, easing pressure on the aggressor, monetary rewards for [Russian President Vladimir] Putin: all of this only encourages him to keep striking,” he added.

The Ukrainian leader’s comments come after Russia carried out strikes on the war-torn country’s energy sector, including power generation and transmission facilities, with more than 320 jet-powered Shahed drones, loitering munitions, cruise and ballistic missiles. Power was reportedly cut for about 1 million people.

They also come as U.S. President Donald Trump signed on Friday an executive order that waived key sanctions on Russia — a decision that Kirill Dmitriev, Putin’s special envoy for investment and economic cooperation, described as “an important and truly historic moment.” Trump’s move comes only a few days after he made a deal with Putin over supplying barrels of diesel, leaving European countries and Ukraine stunned.

“A decision was unfortunately made in America to completely ignore Lindsey Graham’s bill, which was supposed to introduce truly effective pressure on Russia to end this war,” Zelenskyy said. “This bill could have helped a great deal, and it still can! But the law needs to actually work, and every vote for it matters.”

This article was updated. Veronika Melkozerova contributed reporting.

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21 things we learned at the EU leaders’ summit

This was supposed to be an EU summit about the EU’s long-term budget. But things are never easy for EU leaders, and world events have a nasty habit of making their way onto the itinerary.

That meant this European Council had a lot more on the agenda than the last handful of summits, at least: Energy, migration, enlargement, Ukraine, and more besides were covered — and very little, if anything, was decided.

Have FOMO because you weren’t there? Don’t worry, we’ve got you covered. Here’s POLITICO’s rapid roundup of what we learned at the European Council.

1) Energy stole the show right out of the gate

The summit’s first major clash came Thursday morning, with EU leaders split over whether to delay ETS2, the bloc’s second phase of carbon pricing, to address high energy prices, triggering a three-hour-long standoff.

Italy and Greece joined the Visegrád Four — Czechia, Hungary, Poland and Slovakia — in calling for a delay, a push rejected by the majority of countries.

The debate dragged on, delaying lunch (spare a thought for our hungry leaders!) and leading to the cancellation of a press conference on Thursday night.

2) Budget negotiations are a marathon…

Negotiations on the bloc’s next long-term budget were expected to be one of the summit’s most contentious topics. But they were a nothingburger, with most leaders repeating positions they have held for months. The summit brought them no closer to a breakthrough.

Many countries, of course, want a smaller budget, with Swedish Prime Minister Ulf Kristersson telling reporters that his country is “not an ATM for the EU.”

Belgian Prime Minister Bart De Wever, meanwhile, said he had no choice but to be frugal at the European level, arguing he is used to tightening his belt at home because his wife is Dutch. Think of Bart next time your Dutch friends ask you to pay them back for that coffee.

3) … and a sprint

European Council President António Costa is still aiming to get a budget deal before the end of the year, according to two EU officials. He announced that leaders will hold a special summit at the end of November to try and make progress (and there’s a December summit too). But that timing leaves them up against the clock to reach a deal by year’s end.

See you all back here on Nov. 26!

4) EU leaders may need to bring extra luggage next time

If leaders do hope to agree on the EU’s long-term budget this year, they should prepare for long negotiations in November and December.

German Chancellor Friedrich Merz suggested the pre-Christmas summit could last longer than the scheduled two days. “For the December summit, we should pack a few more shirts than usual,” he said. Gulp!

5) Your next holiday to Cyprus might be a little easier

Cypriot President Nikos Christodoulides told reporters he hopes EU leaders will discuss his country’s bid to join the Schengen travel zone at the December summit.

“All technical preparations have already been completed, and we hope that the matter will be discussed by the relevant council in December so that the final political decisions can be made,” he said.

6) Rose-colored glasses have come off when it comes to Costa

European Council President António Costa drew the ire of some leaders over his handling of negotiations to curb high energy prices, which had become a “mess,” three EU diplomats told POLITICO, with another two diplomats saying that leaders were fuming at Costa for allowing talks to go off the rails.

7) Drink (a little) less beer to help Ukraine

Ahead of the summit, Latvian Prime Minister Andris Kulbergs told reporters that supporting Ukraine costs each European the equivalent of one beer a year.

“That one beer is just a cost [for EU citizens]. There, it’s a cost of life. We drink less, their lives are saved,” he said. “Simple as that.”

He didn’t say whether he meant a beer bought in Stockholm or Prague. As anyone in Belgium knows, not all beers are created equal — or cost the same.

8) The EU Parliament wants you to know it matters too

The European Parliament’s two lead negotiators on the EU budget made the rounds of the press room to make sure journalists heard their views. Siegfried Mureșan (of the European People’s Party) and Carla Tavares (Socialists and Democrats) both stressed that the Parliament’s position is important.

Meanwhile, European Parliament President Roberta Metsola joined leaders for the first part of the summit. Metsola said she had made it clear to them that “the Parliament is not a rubber-stamp and never will be.”

9) Talking China (without mentioning China)

Leaders discussed trade imbalances (read: China) over lunch on Thursday and welcomed the deal the European Commission struck with China last week to curb imports of Chinese hybrid vehicles. Czech PM Andrej Babiš even went so far as to call the deal “fantastic.”

POLITICO scooped that the European Commission is expected to work on trade measures tackling imports of chemicals and industrial machinery in an effort to protect European industry from unfair Chinese competition.

10) New bromance brewing

Hungarian PM Peter Magyar posted a late-night selfie with Dutch PM Rob Jetten on social media after day one of the summit. The two were all smiles and “tired, but not sad”, as Magyar put it in his tweet.

In reaction to the tweet, Jetten told reporters, “We are more or less of the same generation and a tad more direct and pragmatic than some colleagues in the European Council, so there’s a click.”

We started at 7:30 this morning in Brussels. The second shift begins after 10 PM, with Dutch Prime Minister Rob Jetten @MinPres.
Tired, but not sad. pic.twitter.com/dmtSMbqG4m

— Magyar Péter (Ne féljetek) (@magyarpeterMP) October 15, 2026

11) Back to the castle

António Costa announced that another competitiveness summit at Alden Biesen castle in the Belgian countryside will take place in February 2027, three EU diplomats told POLITICO.

Leaders already visited the castle earlier this year, and they clearly loved the Belgian countryside so much they want to return (or Costa is forcing them to go).

12) Still reeling from Ceuta

Ahead of Friday’s talks, 16 EU leaders met to discuss migration over breakfast (before discussing migration over lunch with everyone else).

According to one EU diplomat, leaders broadly agreed that the EU should be able to suspend asylum applications when faced with a sudden influx of migrants that may have been engineered on purpose. But would that mean the EU will implement pushbacks (which are banned under EU law)?

13) Denmark, Italy and Poland want to be tougher on migration

The three leaders joined forces to argue that migration is a concern for many EU citizens and is contributing to rising crime rates. That caused a delay to an already shockingly long summit.

14) There were some agreements

Italy’s Giorgia Meloni and Spain’s Pedro Sánchez found some time on the sidelines of the summit to chat about Rome’s restrictions on Spanish nationals sparked by the Ceuta crisis.

Plus, France and Germany said they had struck a deal to favor European-made cars under the Industrial Accelerator Act in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies.

15) EU leaders get the good stuff to eat

Thursday’s lunch menu featured a “full-flavored vegetable jus.” Not a little flavor, not a medium amount of flavor, but the full flavor. Then on Friday there was a “rich jus”. There was also a Champagne sauce. Only the best for our leaders!

16) The same can’t be said for reporters

Some POLITICO journalists lamented the lack of vegetarian options at the Council canteen. Pray for us.

17) No harsh words from EU to Zelenskyy

At a press conference on Friday afternoon, Volodymyr Zelenskyy was asked whether EU leaders had expressed annoyance at his recent tone toward U.S. President Donald Trump. The question followed reports that some capitals were frustrated with him and worried he was further riling the White House.

But it was all love from Zelenskyy, who said there had been no harsh words during his time in the summit room. “I heard from my European colleagues support and only support, and I’m grateful for this,” he said.

18) No hugs for Fico

As Zelenskyy entered the European Council building, he was seen hugging and kissing fellow leaders — with one exception: Slovakia’s Prime Minister Robert Fico received no hug. That may well have been because Slovakia is preparing to revive a dormant cooperation forum with Moscow.

19) 20M Ukrainians could flee to Europe if Russia wins war

Zelenskyy issued a stark warning to Europe: if Russia wins the war, as many as 20 million Ukrainians could be forced to flee to Europe. Over 4 million Ukrainians already live in EU countries under temporary protection status, according to Eurostat. 

20) EU leaders have forgotten about Britain … or have they?

There was plenty of talk across the Channel this week about the U.K. potentially rejoining the bloc, but the subject did not come up at the summit, even with an EU-U.K. summit due next month. EU leaders have more pressing issues on their minds.

Still, some had things to say about the U.K.’s relationship with the EU. Foreign policy chief Kaja Kallas said “all our friends are welcome to join,” naming Britain alongside Canada, Norway and Iceland as partners seeking closer ties.

Latvian Prime Minister Andris Kulbergs suggested the U.K. “should come back to the family,” although he also said that Russia “had its hands on Brexit.”

21) At POLITICO, we save the best for last

Covering European Councils often involves a lot of waiting around, but during this summit conditions were a little tougher because of a phantom farter among reporters waiting for Zelenskyy’s press conference. POLITICO went viral in Brussels’ diplomatic and journalistic circles for reporting the hard facts on our live blog.

While this summit’s agenda was packed, in the end not many concrete decisions were taken. Some might say the summit was a load of hot air.

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Scottish government set to drop opposition to new oil and gas fields

ABERDEEN — The SNP-led Scottish government is set to drop its long-standing opposition to new oil and gas exploration in the North Sea.

Two senior members of the Scottish government — granted anonymity to discuss a strategy not yet ready for publication — told POLITICO the government will revise its energy plans to take a more pro-oil and gas exploration position.

Tests on compatibility with the government’s climate targets will remain, but Scotland will no longer begin from a position of opposition to new oil and gas projects. The move marks a major change in the Scottish government’s energy policy.

The Scottish government — led by the SNP since 2007 — released a draft energy strategy in 2023 which set out its “presumption against” new oil and gas fields in the North Sea.

That draft strategy is “out of date,” one senior Scottish government official said. They said a new strategy, expected by the summer, will not contain this wording. A second person with knowledge of the policy said the new strategy will “reflect the world as it is.”

The shift in policy comes with the U.K. government widely expected to give the go-ahead to the Jackdaw gas field next week.

While the Scottish government has little power over the granting of new licenses for projects such as Jackdaw or the Rosebank oil field — where a decision is expected to come separately and at a later date — it has an important symbolic role, and can apply pressure to the U.K. government to approve licenses. 

SNP politicians at the party’s conference in Aberdeen privately admitted the stance on Jackdaw has hurt the party electorally. 

The party passed a resolution at its conference Friday which stated that the “utilisation of domestic production” of oil and gas is “clearly preferable to importation”. This was seen as a further softening of the position of the SNP — which governed in a quasi-coalition with the anti-exploration Scottish Greens until as recently as 2004.

This resolution, which changes the party’s official policy, will be used as the government writes its new energy strategy, the two people quoted above said.

In the summer, the SNP lost a key parliamentary by-election in Aberdeen to the pro-drilling Conservative Party, where their North Sea messaging was a key focus. “It was bruising ,” the official quoted above said. “But we’d been shifting our position for a while.” 

Speaking in the debate at the party’s conference Friday, the defeated SNP candidate in that by-election said the victorious Conservatives had hung the words ‘presumption against’ around “our necks lie an albatross.”

”We need to put to bed any suggestion that our party, or our government, supports a ‘presumption against’,” Richard Thomson said. 

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Zelenskyy warns 20M Ukrainians could flee to Europe if Russia wins war

BRUSSELS — Ukrainian President Volodymyr Zelenskyy warned Friday that as many as 20 million Ukrainians could be forced to flee to Europe if his country falls to Russia.

“Russia is killing us,” Zelenskyy told reporters at a press conference on Friday during a summit of European Union leaders, adding Ukrainians were being “pushed” out of their country. “They [Russia] don’t want to stop.”

In the early days of Russia’s full-scale invasion, millions of Ukrainians fled their homes in Europe’s fastest and largest refugee crisis since World War II. Today, over 4 million Ukrainians live in EU countries under temporary protection status, with the largest populations in Germany, Poland and Czechia, according to Eurostat. 

Zelenskyy’s stark warning comes as Ukraine heads into a brutal fifth wartime winter under Russian bombardment. Kyiv faces a budget shortfall of $30 to $35 million next year, according to projections from the International Monetary Fund — even accounting for a €90 billion loan Brussels agreed to provide last year. 

The Ukrainian president traveled to Brussels to meet with European leaders and shore up financial support for his embattled country. While the EU is Ukraine’s staunchest backer, the bloc’s list of priorities is stacked with rising energy costs, looming elections, geopolitical crises and an impasse over its €2 trillion budget. 

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Costa angers EU leaders as splits mar summit

BRUSSELS ― António Costa is supposed to be the dealmaker who brings European leaders together. Increasingly, his efforts are going unrewarded.

At a summit of the bloc’s national leaders on Thursday, Costa — who, unlike most of the EU’s current big beasts, is a Socialist — suffered his most stinging criticism since taking the role of European Council president nearly two years ago. The ire centered on his handling of unrelated negotiations over curbing energy prices and the EU’s next seven-year budget.

Governments were looking for both debates to show signs of progress at the two-day gathering, which was scheduled to continue on Friday. What they got was, at best, stalemate ― at worst, mounting division. And a day of talking that dragged on for 14 hours with little to show for it.

The longer budget negotiations last, the “more difficulties we will have,” Finnish Prime Minister Petteri Orpo told POLITICO. “So we have to work to find a solution this year. I understand very well that it is difficult. A huge challenge.”

The stakes could barely be higher. The EU is desperate to ease the cost of living crisis and get a deal on the budget before national elections next year make finding an agreement much tougher. Disunity between the bloc’s 27 members looks even starker when Donald Trump makes moves to take Russia’s side in the Ukraine war, the economy is struggling to match the might of China and anti-EU nationalists get closer to power in Europe’s biggest capitals.

All 16 diplomats and officials who POLITICO spoke to for this article were granted anonymity to allow them to speak on a sensitive issue. They were all either in the summit room on Thursday or were immediately briefed by leaders who were. While most were critical of Costa, others spoke more positively.

Costa’s spokesperson declined to comment.

European Council President António Costa, Belgian Prime Minister Bart De Wever, Dutch Prime Minister Rob Jetten and French President Emmanuel Macron in conversation at the European Council Summit on Oct. 15, 2026. | Nicolas Maeterlinck/Belga Mag/AFP via Getty Images

Bogged down

Costa, a former Portuguese prime minister, is appointed by leaders to chair their summits and corral them into agreement. As Brussels Playbook reported on Thursday, EU officials judge he’s entering a defining period of his presidency, racing against time to overcome huge divisions on the budget. He is widely expected to push for reappointment for a second two-and-a-half-year term next year, officials said.

Thursday’s summit was dominated by discussions unraveling on the second phase of the bloc’s carbon pricing regime, known as ETS2.

The showdown over the Emissions Trading System — both the current one, and the second iteration which is already legislated and will put a carbon price on heating and transport from 2028 — became so bogged down it forced Costa to cancel the summit’s planned press conference and delay further talks until after dinner, because they had become a “mess,” three EU diplomats told POLITICO.

With German Chancellor Friedrich Merz incensed by what Berlin saw as his Italian counterpart Giorgia Meloni’s intransigence, fiery negotiations pitted a coalition made up of Germany, Spain, France, Portugal, the Nordics and the Netherlands against a stubborn bloc of Italy with Hungary, Czechia, Slovakia and Poland (known as the Visegrád Four). Rome and the V4 group wanted the EU to postpone ETS2 because of the burden it would place on energy bills, according to five diplomats.

Leaders were fuming at Costa for allowing talks to go off the rails, two EU diplomats from different member countries said. While the pre-summit conclusions didn’t point to any rethink of ETS2, the countries tried to unpick the legislation in the summit room, leaving Costa flustered, one of them said.

Costa “wants to have conclusions ready from [pre-summit meetings of ambassadors] and not to open them during EUCO,” the diplomat said. “He is not a fan of drafting on the spot.”

Another said there was “huge frustration,” calling the tug-of-war over the wording of the energy policy “insane chaos.”

“They just went on with Italian drafts and disregarded texts that were handed in before by others, seemingly not understanding the political nuances of the whole ETS discussion,” they added.

Another accused Costa of “losing control of the room,” saying he had failed to keep track of proposed amendments and present them to EU leaders in time for the discussions. As a result, leaders were left debating without them, contributing to negotiations going on past midnight.

One diplomat and one EU official separately compared Costa with his immediate predecessors, Charles Michel ― who governments frequently criticized for a lack of dealmaking know-how ― and Donald Tusk, who enjoyed broad support throughout his term in office.

Costa performed “worse than Charles Michel” on Thursday, the diplomat said. The official said “there is frustration that things are not being dealt with a bit more Tusk-style.”

Honest broker

The annoyance went beyond the energy debate. While governments weren’t expecting a breakthrough on the EU budget on Thursday, they have started raising questions about Costa’s handling of that topic too.

High Representative Kaja Kallas addresses the press on Oct. 15, 2026. | Nicolas Maeterlincl/Belga/AFP via Getty Images

Costa is determined to secure an agreement by the end of the year. In his job, the Council president must act as a honest broker and facilitate a deal among 27 governments.

Northern EU countries are worried he’s favoring southern countries, according to a further four EU diplomats.

One EU diplomat accused Costa of being two-faced and not acting as an honest broker in the budget negotiations.

Another diplomat, from a country that wants the budget to be smaller, said: “Costa personally and politically belongs to the other camp.”

“There is some skepticism on how he will take the process further from here,” they said. The so-called frugal countries are calling on Costa to propose further cuts ahead of a special EU summit on the budget that was confirmed Thursday for Nov. 26.

‘Superb deal maker’

Many governments still believe Costa may succeed over the long term. Even those who acknowledge that his honeymoon is over ― a period when he was roundly praised for being a safe pair of hands and avoiding diplomatic faux-pas ― retain faith in him.

Belgian Prime Minister Bart De Wever defended Costa as “capable” and “shrewd” after the first day of the summit — praising the Council president for largely avoiding drafting on the day, unlike Michel.

Costa “avoids negotiation about the wording on the table which happened all the time under his predecessor and which annoyed the hell out of everybody because then you are here until three o’clock to discuss about syllables, commas and words that the next morning you cannot see the difference anymore,” De Wever said. “You don’t even know anymore what you are negotiating about.”

Other diplomats said the disarray wasn’t Costa’s fault, and blamed the leaders who tried to unpick the energy legislation, notably Meloni. “He did not want to reopen the conclusions, it was the V4 and Italy who did so,” one said. “I don’t see what he could have done differently.”

Another EU official defended the sheer difficulty of the task faced by the Council president. “Discussing drafting at leaders’ level is not the most straightforward thing in general.” On energy, the official said leaders wanted to have “proper consideration” of the different proposals by countries, which had “opposing interests.”

One of the diplomats more critical of his political leanings on the budget said Costa was “impeccable” in his behavior. “He’s a superb deal maker.”

The next few weeks will show how true that turns out to be.

Hanne Cokelaere, Camille Gijs, Sebastian Starcevic, Gerardo Fortuna and Hans von der Burchard contributed to this article.

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