Connect with us

Europe

City of London brings its courtship of Nigel Farage and Reform UK out of the shadows

Published

on

For months, the “courtship” between the City of London and Nigel Farage’s Reform UK was conducted in whispers, but now both sides are making their engagement public.

Senior figures in the banking and asset management sectors had previously been reluctant to announce any ties to the right-wing party, despite its commanding lead in the polls.

“When I speak to people, they say, ‘We are genuinely interested in what is going on, but don’t tell anyone we asked,'” Gawain Towler, Farage’s former right-hand man, told POLITICO in August.

Now, however, the wind appears to have shifted. Farage is engaging with delegates today (January 21) at the World Economic Forum (WEF) in Davos.

“That shy, quiet, ‘don’t tell anyone I’m meeting with Reform’ attitude is gone,” Reform’s deputy leader Richard Tice said in an interview with POLITICO. “I think word has got out that these guys are actually business people, they know what they are talking about, and they understand how capital markets work.”

Pointing to the curiosity surrounding the party currently leading the polls, Tice added that the City “loves backing winners.”

Reform began establishing its agenda for the financial sector in November by hosting an event in central London to launch working groups tasked with developing policy in four key areas: regulation, growth capital for small and medium-sized enterprises (SMEs), pensions and savings, and taxation.

The groups operate under the Centre for a Better Britain, a think tank close to Reform, and are led by Tice. He has dubbed the future proposals “Big Bang Two,” stating that the policies should coincide with the 40th anniversary of the deregulation “Big Bang” of the 1980s under Margaret Thatcher.

City representatives confirm Tice’s claims. Several major lobby groups attended Reform UK’s party conference for the first time last autumn, while others held private meetings with the party.

Tice stated that he has hosted dozens of breakfasts and dinners with industry professionals since the summer, and that efforts to lure the financial sector away from Labour and the Conservatives are finally bearing fruit.

“The number of donors giving to the Conservative Party is still far higher than anyone else,” said Seb Wallace, an executive at investment management firm Triple Point. “But the trend is definitely towards Reform.”

Tice also noted that he expects a series of donations to flow to the party from the City within the next six to 18 months.

This pressure has caused the financial establishment’s relationship with the party to slowly emerge from the shadows. Last week, key City figures were spotted in the audience at a press conference announcing former Conservative Chancellor Nadhim Zahawi’s defection to Reform.

The powerful trade body, the Investment Association, held an event with the party in November, while the Quoted Companies Alliance—a key trade association for small and mid-sized publicly traded companies—openly shared on LinkedIn that they had held a “useful discussion” with Tice over pastries.

Riccardo Tordera-Ricchi, director of policy and government relations at the UK lobbying group the Payments Association, made a similar comment, noting a “balanced conversation” in which Tice sought to position Reform UK “as a credible political force with attention to detail and an economic plan.”

The party is also making its own adjustments to win over the City. Despite previously characterizing the event as a “globalist jaunt,” Farage is attending the World Economic Forum in Davos this year to meet with the world’s leading financiers.

However, there remains a tendency to exercise caution regarding chats with the party. A City lobbyist, speaking on condition of anonymity, said they are advising clients to avoid associating with Reform in public until the May elections, where the party is expected to achieve a significant victory.

In the meantime, the biggest hurdle appears to be questions regarding the quality of Reform’s future parliamentary party and concerns over the leadership’s ability to keep MPs under control in the event of an eventual victory.

“If you have a party of nutters, you end up with the same problems the Labour Party has experienced,” Wallace said. “Nobody agrees on anything.”

Stephen Snowden, head of fixed income at Artemis, asked: “Does the bond market want [a Reform victory]? Yes, because I think they will be fiscally responsible; that is my best guess. But I have a major reservation regarding this: Can they find enough functional people to do the job?”

Whether the party can achieve sufficient growth over the next three years is a major point of concern. Reform is tasked with finding constituency chairmen, local activists, and door-knocking volunteers to build a functional party machine.

“Without anyone in place, I think the probability of a candidate with a dodgy Twitter account and a controversial personal life succeeding is much higher,” Snowden said.

Nevertheless, the party does not appear overly troubled by these concerns. “I understand the City is right to question this, and in a sense, they are challenging us to answer it,” Tice said. “We accept that challenge, and we will provide a satisfactory answer regarding this within the next two years.”

But Reform’s policies have already begun to cause unease in the City. In September, the party stated that Local Government Pension Schemes (LGPS) should not be permitted to hold non-public assets, such as private equity and infrastructure.

This initiative has clearly unsettled many working in these sectors. Tim Levene, CEO of Augmentum Fintech, described the plan as “incredibly short-sighted.”

“To say that the LGPS should not invest in non-public assets is to say that we should have pension funds that underperform and run deficits,” Levene argued.

Europe

German officials urge fighter jet alliance with Sweden and Spain

Published

on

German Defence Ministry officials have advised Berlin to form a new fighter jet partnership with Sweden and Spain rather than join an existing UK-led consortium.

Internal ministry assessment notes obtained by Politico state that a trilateral arrangement among Germany, Sweden, and Spain represents a “more advantageous and promising” approach than joining the Global Combat Air Programme (GCAP) run by the UK, Italy, and Japan.

The proposal outlined in the document does not yet represent a final government decision, nor does it contain any indication that German Defence Minister Boris Pistorius has approved the recommendation.

The advice was drafted after Germany’s flagship project with France to build a next-generation fighter jet collapsed in June following years of industrial infighting.

Initiated in 2017 and later joined by Spain, the Future Combat Air System (FCAS) was conceived as a showcase initiative for European defence cooperation. The partnership aimed to develop an aircraft to replace Germany’s Eurofighter fleet starting in 2040.

However, the initiative foundered on disputes over operational control and workshare between France-based Dassault and Germany-based Airbus Defence and Space. Following unsuccessful rescue attempts at the political level, Berlin withdrew from the joint fighter project this year.

UK Prime Minister Andy Burnham raised the prospect of Germany joining GCAP during an 8 October meeting in Berlin with Friedrich Merz. The two leaders agreed that officials should continue discussions.

For Berlin, the choice carries implications that reach far beyond which model its air force will fly. The decision will determine who controls future military technology, which countries secure production contracts, and whether a new European partnership can avoid the frictions that dismantled FCAS.

Ministry assessment keeps distance from UK-partnered GCAP project

The ministry assessment listed several reservations regarding the GCAP project. The report argued that the existing programme focuses on operations beyond Germany’s capability requirements, whereas Berlin needs an aircraft better suited for missions over continental Europe.

The document also noted that German manufacturers would struggle to secure a significant share of development and production work within an already established partnership.

Invoking past experiences with the Eurofighter programme, which was developed in the 1990s and entered service in the early 2000s, the document took direct aim at British defence contractor BAE Systems.

The German Defence Ministry assessment accused BAE Systems of prioritizing exports over the development interests of Germany and Italy, warning that British dominance would prove incompatible with an equal partnership.

By contrast, the document stated that the military requirements of Germany, Sweden, and Spain align closely and that their starting positions are well balanced.

The assessment proposed an industrial partnership between aerospace giant Airbus and Sweden’s Saab, while recommending that the Saab-manufactured Gripen E fighter jet serve as a technological stepping stone until the new aircraft is developed.

The German Defence Ministry declined to comment on the matter. A separate ministry note, however, recorded British efforts to integrate Germany into GCAP as an observer or participant, asking German officials to examine potential industrial roles and military requirements.

An Airbus spokesperson said the company was “generally open to cooperation”, provided that German and Spanish industry secured a “substantial and equal role” across development, production, and operational phases.

“Purely political decisions without an industrial foundation remain insufficient,” the spokesperson said, urging authorities in Berlin and Madrid to clarify the path forward swiftly.

In an interview published in Handelsblatt on Monday, Airbus defence chief Michael Schollhorn pointed to ties with Saab, noting that the two companies have always worked well together.

A Saab spokesperson also indicated that the company is receptive to broad defence cooperation, including in fighter aircraft.

Emphasizing that large-scale collaborative projects are handled at the political level and that participation decisions rest with the respective governments, the spokesperson said: “All questions regarding potential Swedish participation should be directed to the Swedish government. Saab stands ready, as always, to support Sweden’s future fighter aircraft requirements.”

Continue Reading

Europe

EU reopens debate on naming envoy for Ukraine talks with Putin

Published

on

The European Union has returned to the idea of appointing an envoy to hold talks on Ukraine with Russian President Vladimir Putin.

According to sources familiar with the matter who spoke to Politico, this search gained fresh momentum following a visit to Russia by Steve Witkoff, the US special envoy.

During his trip, Witkoff proposed to Putin that Russia, the US, and Ukraine hold trilateral talks.

European countries, meanwhile, fear that Washington could accept terms unfavourable to Kyiv in negotiations that exclude them.

Sources speaking to Politico said the names being discussed for the envoy role include European Commission President Ursula von der Leyen, European Council President António Costa, and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.

Some European diplomats believe Finnish President Alexander Stubb may be the most suitable candidate for the post.

Stubb’s good relations with Trump and Finland’s experience in dealing with Russia are cited among the factors setting him apart.

An unnamed EU diplomat described Stubb as the only European politician so far to have demonstrated senior-level leadership.

Another group of diplomats argues that Costa should lead the talks. European leaders asked Costa during last week’s EU summit in Brussels whether the time had come to speak with Putin.

Politico’s source recounted that exchange: “Costa said no, saying he would not speak to Putin right now. But if we want to play a role in the negotiations, Costa still needs to initiate dialogue with Putin.”

According to an assessment by another source, the European Council president could serve as a more neutral mediator than von der Leyen or Kallas, who are seen as overly focused on supporting Ukraine.

“Three or four people cannot go there with each of us speaking on behalf of the European Union,” one of the sources told the publication. “Ultimately, the choice of who represents the EU must be based on maximum efficiency, not on a personal power struggle or someone’s narcissistic ambitions.”

Politico previously reported in January that the EU was considering appointing a special representative for Ukraine negotiations. At the time, the initiative drew support from several European leaders, including French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.

Putin said he was ready to negotiate with European countries, but asserted that Europe had “no peace agenda” and stood “on the side of war”.

The Russian leader also named former German chancellor Gerhard Schröder as Moscow’s preferred negotiator from Europe.

Kallas ruled out such an appointment, noting that Schröder was “a lobbyist for Russian state companies” and would sit “on both sides of the negotiating table”.

Stubb details obstacles to talks and Oslo diplomatic drive

Finnish President Alexander Stubb said the principal obstacle to ending the war between Russia and Ukraine was the territorial issue.

Stubb took part in talks in Oslo with US envoy Steve Witkoff, who subsequently travelled to Saint Petersburg to meet Vladimir Putin.

As reported by the newspaper Helsingin Sanomat, Stubb stated that advancing the peace process required either bilateral talks between Russia and Ukraine or trilateral negotiations involving the US.

The Finnish president listed the other major items to be addressed within a settlement as US security guarantees for Ukraine and the construction of a new European security architecture after the war ends.

Without stating it outright, Stubb implied that the core issue within this framework was Ukraine’s NATO membership. The Finnish leader pointed to monitoring the ceasefire, establishing the line of contact, ensuring energy and food security, and exchanging prisoners as practical tasks.

Stubb also detailed the talks held in Oslo on 20 October, which included Witkoff, Ukrainian President Volodymyr Zelenskyy, and Norwegian Prime Minister Jonas Gahr Støre.

The discussions, which spanned approximately eight hours across various formats, had three objectives: to lower tensions in public discourse, to convey European and Ukrainian proposals to the US envoy before his visit to Russia, and to determine the next steps toward a peaceful settlement. Stubb announced that these goals had been achieved.

Moscow ready to resume trilateral talks in November

Witkoff met Putin in Saint Petersburg on Wednesday.

Following the meeting, Russian presidential aide Yuriy Ushakov announced that Moscow was prepared to resume trilateral negotiations with the US and Ukraine during the first half of November.

Ushakov also said that the EU and NATO had begun to “take a more serious approach” to Kremlin proposals on Ukraine, adding that “matters” were moving toward an end to the conflict.

Witkoff described the meeting as “constructive”.

Sources told Bloomberg in September that Putin continued to insist the Donetsk region must come fully under Russian control, expressing confidence that the territory would be captured within the next six months.

Putin previously set conditions for ending the war, demanding that Ukraine abandon plans to join NATO, maintain a neutral and non-nuclear status, and that anti-Russian sanctions be lifted.

Continue Reading

Europe

Trump midterms calculus halts Israeli strike plan against Iran

Published

on

A comprehensive military operation planned by the Israeli military for 10 October did not take place because US President Donald Trump chose to avoid a broad conflict before the 3 November congressional midterm elections.

Preparations had been made on the orders of Prime Minister Benjamin Netanyahu for an aerial bombardment meant to last several days, according to a report by the Financial Times citing sources familiar with the matter.

The list of targets included nuclear facilities and locations associated with the Iranian leadership, along with power stations and other civilian infrastructure sites.

The planned strikes were projected to exceed the joint operation launched by the US and Israel in February in terms of intensity.

White House Deputy Press Secretary Anna Kelly told the newspaper: “The United States is not going to strike Iran at any point before the midterms.”

Kelly argued that the administration in Tehran was in distress both economically and militarily, adding that the blockade imposed on Iranian ports and US efforts to secure oil shipments through the Strait of Hormuz were producing results.

Speaking to the newspaper, one source addressed the possibility of strikes resuming in the coming weeks, saying: “There’s either going to be a deal or a strike.”

The same source reported that Washington aims for a comprehensive settlement that resolves the conflict over both the Strait of Hormuz and the nuclear programme, although it remained unclear whether the US would have participated directly in the cancelled operation.

Another source said the preparations for the operation might have served as leverage to pressure Tehran in negotiations, adding that the final decision on any new military step rests with the US president.

Hegseth reviews updated target list in Israel

An Israeli official said US Secretary of War Pete Hegseth visited Israel on 19 October to meet with Netanyahu and senior representatives.

Another source stated that the Israeli side presented an updated target list to its American counterparts, compiled with fresh intelligence and incorporating civilian infrastructure sites that had not been struck earlier this year.

The Pentagon did not respond to questions regarding the meetings, while Netanyahu’s office and the Israeli military declined to comment.

Despite the postponement of the operation, Trump and Netanyahu continued to issue military warnings to Iran in public.

In a video released on 19 October, Netanyahu addressed Trump, saying: “Donald, you said we need to finish this, and we will finish it together.” Speaking on speakerphone, Trump responded: “You’re a great warrior, and we’re going to prove it very soon.”

These engagements between the leaders coincide with critical election cycles in both countries.

Parliamentary elections in Israel are scheduled for 27 October, one week before the vote in the US.

Most public opinion polls in the country show the opposition bloc holding a narrow lead over Netanyahu’s coalition, though neither side commands a clear majority.

Axios, a US-based news outlet, previously reported that the Pentagon instructed military planners to finalize strike plans against Iran, though the directive specified no date and Trump had not reached a final decision.

On 15 October, CNN reported on plans to use the GBU-43/B munition, known as the “mother of all bombs”, against Iranian nuclear facilities, with US officials who spoke to the broadcaster expressing scepticism about the weapon’s ability to destroy deep bunkers.

While Tehran announced that it remains open to a diplomatic solution, it declared that any potential operation would draw a fierce response.

Iranian Foreign Minister Abbas Araghchi stressed that if its adversaries chose military conflict, the response would be “much harsher than before”.

Following the joint operation launched by the US and Israel on 28 February, Iran retaliated by striking targets across the region and restricting maritime passage through the Strait of Hormuz.

Although the parties reached an agreement in June covering a ceasefire and negotiations to lift the blockade in the strait, reciprocal strikes between the US and Iran have not ceased.

Continue Reading

MOST READ

Turkey