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President Trump’s state visit last week saw US tech firms announce impressive new investments in the UK, with Microsoft alone announcing a $30 billion spending package. However, it appears that the Prime Minister was not able to make progress on tariffs. Attempts to negotiate the withdrawal of tariffs on steel were quietly dropped in the run-up to the visit. This comes as recent data shows that US authorities have collected over $1.3 billion in tariffs from UK exports in the last four months.
The EU is planning to exclude US tech giants from a financial data sharing system designed to facilitate the development of new digital finance products for consumers. The move is being led by German officials, in an attempt to protect European financial services providers from cutting-edge US competitors.
The EU Commission has, for the first time, proposed sanctions on Russian gas. Despite their vocal support for Ukraine and condemnation of Russia, EU countries have been importing Russian natural gas in vast quantities. If approved, the measures will see all imports of Russian gas eliminated by January 2027. The measures require the unanimous support of all member states.
EU to switch of the Russian gas tap
The Prime Minister announced that the UK has formally recognised a Palestinian state. By the government’s own admission, this will have no immediate impact on the situation in Gaza or in the Middle East more generally, but will no doubt be claimed as a victory by the opponents of Israel. As humanitarian conditions in Gaza continue to deteriorate, this move seems more about managing Labour’s domestic problems than achieving peace in the Middle East.
Media
Daniel Hannan on the Oxford Union
Harry Wallop on HR taking over British business
Blog
France’s woes are attributable to its lack of economic and monetary sovereignty by Bob Lyddon
Fitch’s downgrade of France isn’t a sign of national or eurozone collapse. Instead, it underscores France’s limited policy options, with fiscal deficit and debt reduction now hinging mainly on tax controls. Broader economic levers have largely been handed to the EU and ECB under Economic and Monetary Union.
The factors that led to Fitch’s announcement will have already been in play in determining the haircuts on France’s bonds. Indeed, a very cursory scan of the ECB’s listing of eligible assets showed haircuts on France’s bonds to be already within the same range of those of Slovakia, which is rated A+.[3] The bonds identified for France had haircuts ranging from 0.5% to 5%, whereas those identified for Slovakia had haircuts ranging from 0% to 6%.
The Chagos Treaty – And the New Colonialism by Dr Dan Boucher
In a context in which legislation on the Chagos Treaty is far from complete, Dr Boucher argues that the basis of the Treaty is flawed and that Chagossians should have a right of self-determination which, thus far, they have been denied.
In the history of colonisation, the experience of the Chagossians really stands out. They were not merely subject to colonial rule that prevented self-government. They were subject to a much more profound disinheritance that took from them both self-government and their homeland. If there is a moral imperative today to decolonise those subject to a colonisation that took from them self-government but not their homeland, how much greater the moral imperative to decolonise those subject to a colonisation that took from them both their self-government and their homeland. And how much greater the moral difficulty caused by a treaty pretending to complete decolonisation when instead its provisions lay the foundations for an even greater sense of injustice because of the transfer of huge sums of money to another people, the Mauritians, to provide payment for the use of the lands of the Chagossians that could be used to secure their decolonisation.
Key Points
Nigel Farage and Zia Yusuf faced journalists this week to talk about Reform UK’s plans to reform the immigration system if they win a general election. The headlines are unsurprising: Reform will scrap the ‘Indefinite Leave to Remain’ status and implement mass deportation of those with no right to be in the UK. Perhaps more surprising is the seriousness of the announcements. The plans were principled, detailed, and backed up with research. By fielding questions from a hostile press-pack for the best part of an hour, Farage and Yusuf are showing that Reform is getting serious about being a party of government.
The principle underlying the policy announcements was that work visas should only allow people to come to the UK to work. They should not provide a de facto pathway to citizenship or permanent residence, nor should they allow workers to bring dependents who will be a drain on public services. Farage railed against the number of people who have come to the UK in recent years who are not working, will perhaps never work, but who will soon be eligible for indefinite leave to remain or even UK citizenship.
Reform’s proposals would see work visas granted for 5 years, after which they would need to be renewed. While there would still be a route to citizenship for those who have come to the UK on a work visa, the requirements would be more stringent and fees significantly higher. With no ‘Indefinite Leave to Remain’ status, those without citizenship whose work visas have expired would need to leave or face deportation.
These plans are intended to stem the flow of people into the UK and reduce the cost of benefits and other welfare provisions. Repeatedly, Farage made reference to statistics showing the huge numbers of those with indefinite leave to remain who are not in work and are eligible for state benefits.
Despite the best efforts of the assembled press, Farage and Yusuf were not caught out on the details. Both appeared to have a clear understanding of how the system works and where things go wrong, and both spoke with authority about their plans to fix it. Immigration consistently ranks as the most important issue for voters and nobody is in any doubt about Reform’s desire to reduce the numbers. If they can marry this with serious policy proposals and accurate analysis, the next election may be theirs to lose.
