LONDON — Nigel Farage’s victory in the Clacton by-election is emphatic — but it won’t let him off the hook.

Winning back his seaside House of Commons seat by an increased margin allows the Reform UK leader to claim victory in the “people vs the establishment” contest he triggered in response to intense scrutiny of his finances.

Farage won the backing of 22,239 constituents, or 63 percent of the vote. That’s 1,014 more votes in this by-election than at the U.K. general election two years ago, and a 17-point swing in his favor.

But second-placed this time was Count Binface, a comedian with a trash can on his head who secured — by many thousands — his highest ever vote count in a palpable protest against Farage. None of Britain’s mainstream parties took part in the contest, branding it a circus.

The Reform UK leader’s refusal to turn up at the count to hear the result Friday — a move that would have seen him pictured alongside a cast of comedy characters — underlined the struggle for him to get back on the front foot he is used to contesting politics from. 

More significantly, Farage’s triumph means that parliamentary investigations into his financial affairs will now resume. That could lead to another by-election — one in which serious rivals are far less likely to stand aside to allow Farage to face-off against a long list of no-hopers.

Labour MPs switched out their own leader in part because of Farage’s storming success at local elections in May, but the focus on this contest has also made it harder for Farage to land blows on Britain’s new Prime Minister Andy Burnham.

This week, Labour overtook Reform in POLITICO’s Poll of Polls after months on the back-foot for the governing party.

Snubbing the count

Clacton is Farage’s fiefdom. It was one of the most Brexit-voting constituencies in the country and was the place that first sent him to the Commons on his eighth time of trying.

But Binface, a proud proponent of the British tradition of satirical candidates contesting elections, had never won more than 308 votes in a parliamentary election before. Against Farage, he secured 9,455 votes. That means 28 percent plumped for the comedy candidate with a bin on his head.

Farage on Friday snubbed the leisure center count and the mild embarrassment of accepting victory alongside Binface that three prime ministers — Boris Johnson, Rishi Sunak and Andy Burnham — have endured before him. 

He told his own “Farage Fest” jamboree organized in secret away from the results venue that he’d been advised by Essex Police of an “organized campaign to disrupt and degrade the result.”

“I’m not scared of these people, far from it,” he told fans. “But I’m damned if I’m going to stand on a stage, having won a resounding victory, a ringing endorsement of all that I’ve tried to fight for, and you’ve tried to fight for, and be demeaned and humiliated by nobodies, and I will not sadly be attending the count.”

That meant, according to reports, Farage became the first winning candidate not to turn up for a result since jailed Irish Republican Army hunger striker Bobby Sands won Fermanagh and South Tyrone in 1981.

Instead, Farage railed against the media and the “establishment” in his own event fit with branded pint cups, a ferris wheel and yurts for overnight stays. It was yet another demonstration of his attempt to bend the norms that accompany mainstream politics to his will.

Essex Police assured a “proportionate and robust policing operation” was in place at the count — while it was made clear that Farage was not advised to avoid the event. He cancelled a scheduled speech in Clacton, too.

Farage had gambled that a strong victory would inhibit the chances of parliamentary watchdogs imposing a severe enough sentence to set up a recall, should he be found to have breached the rules. “The bigger the vote, the bigger the message. Let’s tell the establishment where to go,” Farage said as polls opened on Thursday.

In the event, the turnout — at 44 percent — was not astonishing. That it’s less than the general election may not be surprising, but it was lower than another high-profile by-election held in this seat a decade earlier.

In 2014 Douglas Carswell resigned as the Conservative MP for the area to run for Ukip, Farage’s Eurosceptic party that helped drive Brexit. 

Clacton returned Carswell in his new guise, making him the first MP elected under the Ukip banner. He won 60 percent of the vote, on a 51 percent turnout.

That day was described as a “mini-earthquake in British politics” — but Friday’s result is producing less stable ground for Reform. “Farage’s distraction by-election doesn’t clear his name – it just shows he likely has so much more to hide,” argued Labour Party Chair Bridget Phillipson Friday morning.

Probes continue

So now the uphill battle. The parliamentary standards commissioner will resume two investigations into Farage — one centering on a £5 million donation from a crypto-entrepreneur, the other into support provided by a convicted fraudster.

The MP denies wrongdoing in both instances, arguing he didn’t need to declare the donations because they were given in a personal capacity before he was elected. 

But if there’s a finding of a serious rule breach then the Commons could vote to suspend Farage and trigger a recall petition.

The signatures of just 10 percent of registered voters in Clacton would then be needed to expel Farage from parliament — and trigger another by-election in which he could stand. Farage has expressed hopes that there isn’t such an appetite in his constituency — but the support for Binface throws that into doubt.

Clacton’s electorate is 79,785 — the 9,455 votes that Binface secured represents around 12 percent of those eligible voters, a comfortable margin for recall to be successful. 

Tactical errors?

That is all potential peril for the future. Right now, the August by-election has even some supporters questioning whether this was a rare miscalculation from a veteran campaigner.

Farage has in recent years dominated the summer break when many MPs vacate the political playing field.

But broadcasting rules on election periods stymied this year’s effort. Media invites to the press conferences Farage did throw had to assure broadcasters he would not be mentioning Clacton. And every mention of Clacton meant presenters were obliged to read the full 34-candidate list — namedropping Nick the Incredible Flying Brick and Baron Von Thunderclap in the process. 

Reform has also been struggling to grapple with a squeeze on its right from Rupert Lowe’s Restore Britain splinter party. Farage’s one-time Reform comrade touted the possibility of a pact to unite the right — but deeply held grievances on both sides mean the distraction has dragged on.

A row over one of Reform’s most senior officials, Zia Yusuf, calling a Conservative former defense secretary a “traitor to Britain” has also been generating unwanted headlines and exposing rifts inside Reform.

If that second by-election does emerge in the coming months then the Conservatives have already vowed to fight it. Farage, should he choose to stand again, would face a far tougher contest against the backdrop of parliament having ruled against him, and many voters in Clacton had been unimpressed by the “laughing stock” caused by the first election.

The Reform hardcore may be buoyed by Farage’s railing against the “establishment” — but what this saga does to his reputation with the wider electorate he needs to propel him into Downing Street remains the biggest unanswered question.

Europe wants to kick its U.S. tech habit, but it’s struggling to detangle itself from American data analytics firm Palantir. 

The problem is, the company’s tools are already deeply embedded in critical sectors across the bloc like policing, national defense and health systems. A report released today also shows that the tech firm has found ways to pay minimal taxes in Europe. On the show, hosts Zoya Sheftalovich and Ian Wishart discuss European alternatives and why detaching is easier said than done.

Next, our colleague Seb Starcevic has interviewed Mediterranean Commissioner Dubravka Šuica. The role that was originally thought to be low profile has instead thrust the Croatian official into the limelight as various crises hit the Middle East and the Mediterranean.

Plus: Three new foods are being added to the EU’s list of products with geographic indicators. These are the labels given to products that can only be made in a specific region, like Champagne or … yes, you guessed it, halloumi.

Questions? Comments? Get in touch! You can message us or send a voice message to our WhatsApp here or at +32 491 05 06 29.

BRUSSELS — When French and German security chiefs announced plans last month to develop a “European sovereign digital backbone,” tech and defense industry insiders on both sides of the Atlantic knew what they really meant: Adieu Palantir.  

Across Europe, the hunt is on for alternatives to the U.S.-based data analytics company that a growing number of government officials believe is too deeply lodged in some of the most sensitive areas of government, from local policing and global intelligence to national defense and health systems. 

Yet it is precisely Palantir’s crucial functions in daily workflows, and its largely unmatched data expertise, that will make it extremely hard for Europe to cut it off in pursuit of greater digital sovereignty. 

“Let’s be honest, Palantir’s product is very good and addictive, it’s pretty much like the sugar in Coca-Cola,” said French digital sovereignty advocate, Philippe Latombe. “Palantir can treat massive amounts of data with great precision and with their experience, they had time to improve their algorithms with many clients and adapt them to many use cases.” 

Still, the drive to break free from Palantir is sweeping across the continent, from Madrid, where the government of Pedro Sánchez has instructed state-backed companies to block Palantir from future public procurement contracts, to France’s domestic intelligence services (DGSI) selecting French company ChapsVision over Palantir. In Britain, the next test may come in February 2027, when the new Labour government of Andy Burnham will face a choice of whether to cut off Palantir’s £330 million National Health Service Federated Data Platform contract. 

Last month’s decision by the French and German intelligence agencies to choose ChapsVision was a double-blow for Palantir’s leadership. CEO Alex Karp showed little patience for the sudden turn away from his company’s wares, declaring that he wasn’t worried about European competitors. “We have a model of what doesn’t work,” he quipped last week on Fox Business. “It’s called Europe.” 

Olivier Dellenbach, ChapsVision’s chief executive, told POLITICO that his company has benefited from what he calls a “visceral rejection of Palantir” in Europe.  

But he also cautioned that he did not want ChapsVision reduced to an anti-Palantir way out. Digital sovereignty, he argues, will remain an empty phrase unless governments turn it into industrial policy. “We need more public procurement,” Dellenbach said. 

Belgium, Germany, Luxembourg, Romania, the Netherlands and Canada have already shown interest in the French Army’s Artemis AI, according to Patrick Moreau, one of the architects of the solution built by French aerospace and defense company Thales. 

“They all want to be able to choose a sovereign solution that is compatible with NATO standards,” he said. “Unlike Palantir’s black box.” 

But for now, even officials who want sovereign alternatives acknowledge that Europe’s replacement market remains fragmented and European companies are yet to match Palantir’s scale and track record.

Admiral Pierre Vandier, NATO’s supreme allied commander transformation, recently told POLITICO the alliance has no viable alternative to Palantir’s battlefield AI technology.  

Another NATO official, granted anonymity to speak frankly, said that Palantir’s system has an unmatched capacity to sift through mountains of satellite imagery to help identify a target, advise on the weapon to strike it, inform how much ammunition is required — and automatically put in an order to replenish the stock. 

“As far as I know, today there is no real competitor for Palantir,” Vandier said in May. 

Freedom or democracy? 

Co-founded by Karp and billionaire investor Peter Thiel, Palantir built its reputation inside the U.S. national security apparatus. Today, the company has a market capitalization of $330 billion.

Thiel has been one of Silicon Valley’s most prominent supporters of U.S. President Donald Trump, while the company’s work with U.S. Immigration and Customs Enforcement (ICE) and the Israeli military has come in for criticism from Amnesty International and others for alleged human rights violations. Adding to unease about Palantir’s ideology-driven business were recent revelations of Thiel’s secretive Dialog society, an invitation-only ideas club for the global elite, and Karp’s manifesto arguing that Palantir is the democratic West’s best hope to stay ahead of authoritarian rivals.

“Peter Thiel explains that the defense of freedom does not necessarily require democracy,” French member of Parliament Aurélien Saintoul, who wrote a report on foreign military dependencies, told POLITICO. “He is clearly putting technical means to serve his political project, and we are talking about technofascists here.” 

A Palantir spokesperson who declined to be named dismissed such accusations as “ludicrous,” noting that similar characterizations about the company have been made recently by the Russian foreign ministry.

“We know what side we’re on, and who we’re standing with,” the spokesman said, citing ongoing work to support the Ukrainian military. “Since our inception, protecting privacy and civil liberties has served as the foundation for how we conduct our work across both public and private sector institutions. Western politicians should think hard about who the real enemy is and not allow themselves to be ventriloquized by the Kremlin.”

Many of the company’s European critics maintain that the Palantir question is much more about tech sovereignty than political ideology. Extracting the company from some of the most delicate corners of European security structures would offer a blueprint for claiming more technological independence.

Instead, if governments in Europe cannot wean themselves off a company that provides software solutions, it would reveal how unrealistic hopes are to reduce dependence on U.S. technology giants that provide cloud infrastructure and hardware.

There is also the uncomfortable reality that at the same time that political leaders are calling for a break from Palantir, Europe’s biggest banks and asset managers have dramatically increased their investments in the U.S. company over the past year as it positions itself to profit from the AI gold rush, reports investigative outlet Follow the Money.

From crisis tool to critical infrastructure

Palantir’s European foothold was built long before the current boom in AI. A hallmark of its growth was that it never wasted a crisis to demonstrate its value for governments in need.  

In France, for instance, Palantir arrived in the aftermath of the November 2015 Paris terrorist attacks as security services scrambled to respond to a fervent public backlash on how they could have allowed such a tragedy to happen. The domestic intelligence agency signed a contract with the data analytics giant in 2016. 

A similar pattern played out in Germany, where Palantir’s first major deployment came in Frankfurt, in the central state of Hesse, where police purchased Palantir’s Gotham in 2017 and deployed it under the name hessenDATA. It proved to be a crucial tool for officers to turn sprawling information into leads to help solve crimes.

Germany remains deeply divided over whether to use Palantir’s software. At the national level, Interior Minister Alexander Dobrindt has pushed to expand the use of Palantir and introduced legislation that could pave the way for broader federal use. But the move has run into opposition from coalition partners the Social Democrats, as well as senior security officials.

The same crisis-to-contract pattern appeared in the U.K. during the Covid-19 pandemic. Palantir’s relationship with the National Health Service (NHS) began when it was paid a nominal £1 fee to help aggregate data during the crisis, according to Palantir’s U.K. lead Louis Mosley. 

Europol, the EU’s police agency, used Palantir’s Gotham platform from 2016 to 2021 before ultimately dropping it. For one Europol official who was granted anonymity to discuss the matter freely, the problem with Palantir is less ideological than practical. Yes, the platform is expensive, raises sovereignty concerns and leaves clients dependent on Palantir for updates, the official said. But the more basic question is whether every agency needs the full Palantir machine. 

“[Palantir] is really good when you have massive amounts of data and want to connect everything,” they said. “But that is not the case for us. In many cases, the alternatives are close enough. If we used it, I’m not sure our efficiency would increase dramatically.” 

Part of Palantir’s approach in Europe is to hire former officials from the institutions it wants as customers. OpenDemocracy reported that Palantir hired four former officials from the U.K.’s Ministry of Defence before winning a £240 million MoD contract.

The influence drive 

Moreover, Palantir is now seeking new business on the continent in defense.

On Jul. 1, Palantir’s Maven Smart System — which was first used by the Pentagon — became fully operational at NATO, meaning it’s been given security clearance to operate on the classified network. According to a NATO statement, the platform links command-and-control systems across the Alliance. 

“I think this is a very important milestone for European defense,” said Palantir’s U.K. chief Louis Mosley. 

But Palantir’s grip on Europe does not stop at the doors of government or army barracks. It also runs through some of the continent’s industrial crown jewels. Airbus signed with Palantir in 2015, making Palantir’s Foundry the backbone of its aviation data platform. Automaker BMW, energy company British Petroleum and media publisher Axel Springer — POLITICO’s parent company — all use Foundry to improve their business productivity as well. 

Looking for alternatives 

Even if Europe manages to loosen Palantir’s grip, the company’s model built on top of the latest AI large-language systems appears to only be getting stronger. On Jun. 30, Amazon Web Services said it would invest $1 billion in a new “Forward Deployed Engineering” organization, embedding teams of engineers inside customer headquarters to build AI systems alongside them.  

Days later, Microsoft announced a $2.5 billion push to send 6,000 engineers and industry specialists into client organizations. Both initiatives echo Palantir’s pioneering model to not simply sell software but put engineers inside a buyer’s operation. 

Both the strength of its products and the sensitive areas where they’re applied, make Palantir Europe’s sovereign test case par excellence. If governments and companies can replace a software layer that helps turn data into decisions, they may have a blueprint for clawing back some digital sovereignty. If they cannot, the next generation of AI tools from U.S. tech giants may prove even harder to quit. 

“Europe’s public institutions cannot become dependent on software built by a small circle of U.S. tech billionaires with an obscure political worldview,” said German Green MEP Hannah Neumann, who sits on Parliament’s defense committee. “It would be like outsourcing part of the democratic state to a private intelligence service that answers neither to voters nor to parliament.”

David Pargamin contributed reporting from Paris.

MANCHESTER — Labour’s Bev Craig won the Greater Manchester mayoral by-election Friday night and will now succeed British Prime Minister Andy Burnham in the region’s top job.

Craig came top with 309,525 votes, with Reform UK’s Sian Astley trailing on 157,178 votes. The Green Party placed third.

The victory was achieved with a second round under the city’s supplemental vote system, which allows voters to pick a first and second-preference candidate.

Speaking at the Co-Op Live arena to the east of the city, Craig said she stands “ready to serve” her 3 million constituents.

“Every single decision I take as your mayor of Greater Manchester will pass the test of making your life better,” Craig pledged.

The vote was triggered after three-time mayoral contest winner Burnham resigned the job in June to return to Westminster, where he swiftly claimed leadership of the governing Labour Party and became prime minister. There had been concern that Burnham’s move would allow Reform UK — which performed strongly in local elections in England earlier this year — to seize the mayoralty.

Craig will now be have to deal directly with Burnham, who has promised to devolve more powers to England’s mayors as a part of a devolution package. The post currently comes with powers over transport, policing, and housing.

Turnout for the special election was noticeably lower than when Burnham last ran back in 2024, with only 25 per cent of voters heading to the polls this time, compared to 32 per cent at the last vote. POLITICO witnessed some voters on doorsteps Thursday evening learning of the election for the first time.

Counting continued late into the night as the re-instated supplementary voting system took the contest to a second round for the first time ever.

Reform diverted

In the weeks before the election, polls put Craig firmly in the lead. Reform UK had initially been expected to pose a strong challenge, but some of its resources were diverted South as Nigel Farage called a separate by-election in his constituency of Clacton in a bid to shut down scrutiny of his finances.

The Greens set about targeting areas in which they knew they already had support. While out door-knocking in Longsight, an area in the constituency of Gorton and Denton, candidate Geraldine Coggins said they were “going for the hat-trick,” after winning a councilor and an MP in recent votes. Zack Polanski’s party threw money at an air campaign, too, pumping out Instagram videos featuring the leader, Gorton and Denton MP Hannah Spencer, and Coggins.

Greater Manchester has a huge electorate of 2.1million voters, and there were only 5 weeks to campaign. “You can’t hit all those doors,” explained Coggins.

Coggins’ Instagram account reached 4.6million views in the past 30 days and campaign ads had been shown on screen 50.7million times, according to her team.

Meanwhile, Craig spent some £53,000 on digital ads between Meta and Google, and told POLITICO before the vote: “People have been stopping me in the street. And I’ve been really high-profile and visible in my campaign even when other parties went hard on their attacks.” A yellow Labour battle bus cruised the streets as voters went to the polls Thursday. One campaigner shouted “Vote Bev today” through a microphone while fellow activists cheered and waved posters from the top deck.

Meanwhile, Reform seemed to have toned down their own efforts. One Bolton resident said they had not received a single campaign leaflet from Reform, which traditionally relies on social media and letters rather than door-knocking, despite receiving an influx during the local elections in May where the party made big strides, especially in the north of the city region.

The party’s candidate Sian Astley drew some criticism for backing out of hustings hosted by local media outlet the Manchester Mill, and spent just £14,000 on digital ads.

CORRECTION: This article has been updated to correct the name of Reform UK’s candidate.