Since President Donald Trump berated America’s closest allies after the G7 summit in Canada this weekend, it’s worth remembering why the Atlantic alliance matters so much — to Europe as well as the United States. Read more “Why the Atlantic Alliance Matters”
This weekend’s G7 summit in Charlevoix, Canada could hardly have gone worse.
Even a boilerplate communiqué, which reiterated the rich nations’ commitment to free and fair trade, was undermined at the last minute, when American president Donald Trump repudiated the text. Read more “Trump to G6: Drop Dead”
Europe is striking back against Donald Trump’s aluminum and steel tariffs, taxing €2.8 billion worth of American exports to the EU, including Kentucky bourbon and Harley Davidson motorcycles manufactured in Wisconsin, the home states of Republican leaders Mitch McConnell and Paul Ryan, respectively.
The response is relatively mild. Trump’s tariffs target €6.6 billion in European exports to America. But it marks a new low in transatlantic relations, which started to deteriorate almost on the day Trump took office.
Where do we go from here? Below the views of four experts. Read more “Transatlantic Relations Take Another Downturn”
EU leaders have closed ranks against the unilateralism of American president Donald Trump, announcing on the eve of a summit in Bulgaria that:
- They will stay in the Iran nuclear deal so long as Iran abides by its terms. That means European companies will — for now — be able to continue doing business with Iran.
- They are willing to start trade negotiations provided the United States exempt the EU from aluminum and steel tariffs.
Both decisions set Europe on a collision course with its ally. Read more “EU Defies Trump on Iran Deal and Trade”
This week could be a make-or-break moment for the Atlantic alliance. Donald Trump’s unilateral withdrawal from the Iran nuclear deal has put European leaders on the spot.
- On Tuesday, the foreign ministers of France, Germany and the United Kingdom — the thee European countries in the agreement — meet with Mohammad Javad Zarif, their Iranian counterpart.
- On Wednesday, national leaders are due to discuss the issue over dinner on the eve of an EU summit in Sofia. Read more “Make-or-Break Moment for the Atlantic Alliance”
Leonid Bershidsky is optimistic the EU can stand up to American threats and continue doing business with Iran. He writes for Bloomberg that the stakes are higher than President Donald Trump seems to realize:
With its influence on SWIFT, the Brussels-based payment-facilitation system, and its trade power, the EU is capable of blunting US sanctions. If they prove ineffective, and Iranians merely rally around their government as Russians have done in the face of American restrictions, the US may be exposed as less of a fearsome global policeman than Trump would like it to be.
President Donald Trump is expected to announce today that he will pull out of the Iran nuclear deal, despite pleas from allies to remain in it.
The 2015 agreement between Iran and world powers lifted economic sanctions on the country in return for strict controls on its nuclear program. Read more “Trump Divides West on Iran”
Stephen Walt argues in Foreign Policy that the diplomatic crisis around the Iran nuclear deal shows European leaders don’t know how to handle an American bully:
[I]nstead of getting tough with Trump and warning him that Europe would both stick to the deal and defy any subsequent US effort to impose secondary sanctions on them, [France, Germany and the United Kingdom] chose to mollify and flatter Trump instead.
It seems to no avail.
It pains me to admit it, but Walt has a point:
[T]he European response to Trump shows how successfully the United States has tamed and subordinated the former great powers that once dominated world politics. After seventy-plus years of letting Uncle Sam run the show, European leaders can barely think in strategic terms, let alone act in a tough-minded fashion when they are dealing with the United States.
I do think this is slowly changing. Trump is a wakeup call. The EU is rushing new trade agreements with Japan and Mexico. France is leading efforts to deepen European defense cooperation outside NATO. The Balts and Scandinavians are remilitarizing.
But deferring to America is a hard habit to kick. Read more “Europe Doesn’t Know How to Handle Trump, Macron Runs Tight Operation”
Andrew Sullivan is always worth reading, but, in the case of his latest column, I do think Noah Smith has a point and Sullivan falls into the trap of conflating Brexit and Donald Trump voters with “real England” and “real America”.
This is a mistake conservatives on both sides of the Atlantic make. The small towns and countryside aren’t the “real” country. They’re half the country. Or, in the case of Trumpists, a third of the country. Their views deserve to be taken seriously, but so do those of big-city liberals.
Or as Smith puts it:
What we should NOT do is elevate one segment of the populace to Special Real American status, simply because they fit a certain classic stereotype or because they are more intolerant and angry than the rest.
Related to this discussion is Nabila Ramdani’s argument in UnHerd for retiring the label “Gaullist” in France. (Charles de Gaulle is to French politics what Ronald Reagan is to American conservatism.)
de Gaulle’s base consisted of white, Roman Catholic conservatives who had a quasi-mystical faith in their rural nation. There was no place in Gaullism for the millions of immigrants from France’s former colonies, nor did it adapt to globalization and the spread of Anglo-Saxon culture.
Emmanuel Macron’s project is a belated attempt to reconcile these facets of modern France and it meets strong resistance in La France profonde. Read more “Locating the “Real” Country, Putting Germany First and NATO Solidarity”
Dutch prime minister Mark Rutte is in trouble.
When his latest government, a coalition of Christian and liberal parties, came to power in October, he claimed there was no paperwork to support its contention that the Netherlands needed to eliminate dividend tax altogether in order to remain competitive. Now it turns out the Finance Ministry did write a series of memos on the topic — and doubted the tax played a major role in multinationals’ decisionmaking.
The Finance Ministry produces a lot of memos when political parties are negotiating to form a government, so it is possible that Rutte didn’t see this one.
Except this was by far the most controversial policy of the new government. None of the governing parties had promised to cut dividend tax in their manifestos. There had been no public debate about it.
The suspicion in The Hague is that Rutte’s former employer, Unilever, and Royal Dutch Shell lobbied to get the tax removed.
Opposition parties have already called on Rutte to step down. That is unlikely. Prime minister since 2010, Rutte has a knack for talking his way out of problems and the ruling parties have no incentive to force him out. Read more “Rutte Cornered on Tax Cut, Why France and Germany Treat Trump Differently”