News Digest

US presses NATO for major reset, ending mission in Iraq

The plea comes as Romania faces mounting aerial and maritime security threats from Russia. The push by Washington has become known internally as a ’return to factory settings,’ four diplomats told POLITICO.

‘Remember Putin is a KGB officer’: Ukraine’s ex-leader fears Russia is playing Zelenskyy

Petro Poroshenko has some advice for his bitter rival, the current president of Ukraine. Poroshenko: It’s time to stop complaining about America First and get on with putting Europe First. The Ukrainian president spoke ahead of the next round of peace talks.

‘No red lines’: Spain reveals EU supergroup’s plan to challenge US and China

The European Commission wants to invest money into border areas. But there won’t be any new funds from the EU’s current budget. smaller countries fear the club will sideline dissenting voices in pursuit of a two-speed Europe.

Leading MEP Van Overtveldt was offensive to female security guard, union tells Metsola

European Parliament says it’s looking into accusations about former Belgian finance minister contained in letter from body representing employees. European Commission president insists EU capitals have no right to scapegoat Brussels for excessive red tape.

French firebrand Sarah Knafo looks to Paris mayor race for big breakthrough

Anti-immigrant MEP is betting the race for city hall will boost her name recognition ahead of the 2027 presidential contest. The National Rally’s presidential plans are in limbo until former party leader Marine Le Pen's appeal of an embezzlement conviction is decided.

Lagarde succession: The insider guide to ECB musical chairs

The European Central Bank moved to quell speculation the president will quit. An early exit would provide the French leader with an opportunity. Britain’s central bank is still battling inflation above the 2 percent target.

US pressures global energy body to drop net zero modeling

Donald Trump’s energy chief Chris Wright told other ministers in Paris that a net zero world was fantasy, officials familiar with the discussions told POLITICO. The EU's landmark ban on Russian fossil fuels is heading for its first major test. As relations between Berlin and Paris falter, Germany's chancellor is identifying Italy's PM as a key ally.

Trump blasts Starmer’s Chagos deal — hours after US backed it

The U.K. defense ministry said “impersonating a Naval officer is insulting to anyone connected to the service and can be considered a criminal offense” The broadcaster — under fire on the political right and reeling from two high-profile resignations — confirms it has received a letter from Trump’s team.

Brexit Britain’s truckers bear the brunt of new EU border controls

Business owners fear border control facilities they have spent millions of pounds developing will be rendered redundant by the new agri-foods agreement. U.S. Treasury secretary urged EU and U.K. leaders to “let things play out”

Polish ruling coalition party implodes

The Polish president and prime minister are at each other’s throats over a plan to pump billions into Polish defense. Poland is set to hold a crucial parliamentary election in 2027. The election will decide whether or not the country will remain part of the European Union.

Merz warns US on tariffs, hails ‘future cooperation’ with China

Prosecutors say the defendant shared propaganda from the Islamic State militant organization and encouraged another teenager to carry out a knife attack. European governments had presented a forensic analysis that said poisoning was “likely the cause of his death.”

‘Pure bullshit’: Macron slams tech giants’ claim they are defending free speech

“I heard more about the Antichrist during those 45 minutes than during the rest of my life,” one attendee says. The French president has repeatedly called for restrictions on social media access for younger users.

Belgian defense minister to Merz: ‘Keep your mouth shut’ on nukes

The far-right National Rally is already calling foul over controversial personnel moves. ‘Nuclear deterrence can give us new opportunities. Why not?’ Latvian PM tells POLITICO. “Mutual defense is not optional for the EU,” warns European Commission president.

Bulgaria to hold snap election in April

The former president’s clarification comes a day after he said about extraterrestrials: “They’re real, but I haven’t seen them.” European governments had presented a forensic analysis that said poisoning was “likely the cause of his death.

Germany eyes social media ban for kids

Longtime leader Viktor Orbán faces fierce opposition from rival Péter Magyar in Hungary’s vote. Chancellor Friedrich Merz says he has ‘a lot of sympathy’ for a proposal to prohibit access for under-14s.

Pope snubs Trump’s Gaza peace board

The probe into Thorbjørn Jagland is roiling Oslo, which has faced numerous embarrassing disclosures in the new files. The pontiff, who has criticized the U.S. president, believes the United Nations should manage international crises.

Macron’s efforts to make France business friendly ‘wiped out,’ US group says

The far-right National Rally is already calling foul over controversial personnel moves. Europe urgently needs to change the way it functions if it's not going to be left behind. The American Chamber of Commerce in France’s annual survey finds executives are pessimistic about France's future.

EU boycotts Paralympics opening ceremony over Russia’s return

Athletes from Russia and Belarus have had to compete as neutrals since the invasion of Ukraine. Take our test and see if you’ve got what it takes to get a job in the institutions.

US officially backs Britain’s Chagos Islands deal

The U.S. and Mauritius will hold talks in Port Louis next week. The British leader is moving fast to calm his Labour colleagues as the Mandelson scandal threatens to engulf his premiership. The by-election that will test whether Labour has any gas left in the tank.

Brussels pitches English-first approval to speed up EU trade deals

A new U.S.-Argentina deal could undermine protections for European food names. Agreements with India and Indonesia would be test cases under a new ‘accelerated procedure’

Surprise, surprise: Russia-Ukraine talks yield no peace breakthrough

German Galuschenko was charged with money laundering as part of a probe into the $100 million corruption plot in the state nuclear energy sector. The negotiations have largely become political theater for an audience comprising Donald Trump. “They are like blind kittens,” a Ukrainian General Staff commander tells POLITICO.

EU needs to abandon AI ‘doomerism,’ White House official says

India is pushing to open up access to AI at a global summit, according to a draft text seen by POLITICO. U.S. President Donald Trump’s senior policy adviser slams Brussels’ AI Act.

Christine Lagarde succession drama grips Europe

The krona lost more than 20 percent of its value against the euro over the last decade, before recovering somewhat in recent months. “The outlook is still uncertain, owing particularly to ongoing global trade policy uncertainty and geopolitical tensions,” the central bank said.

Carney offers to ‘broker a bridge’ to build giant anti-Trump trade club

U.K. urged to follow the EU in imposing higher tariffs on imported products. Canada is spearheading discussions between the EU and a major Indo-Pacific trade bloc. Britain’s haul from the trip may be modest, but ministers insist there's more to come.

Romania calls for NATO Black Sea mission

The push by Washington has become known internally as a ’return to factory settings,’ four diplomats told POLITICO. The plea comes as Romania faces mounting aerial and maritime security threats from Russia.

Nigel Farage gives JD Vance ally top policy role

Former Tory leadership contender Robert Jenrick is named shadow chancellor. Deputy Leader Richard Tice’s portfolio covers business, trade and energy. James Orr says he will help build “the most serious policy operation in British politics”

Portuguese PM slammed over €20K TV sports contract

Luís Montenegro has ordered his team to renegotiate the price paid to stream football matches in his official residence and government offices. Former Socialist Party leader António José Seguro defeated far-right leader André Ventura to become the country's next head of state.

Farage deploys Jenrick to calm Britain’s bankers

Reform UK’s new Treasury spokesperson insists key institutions are in safe hands under his boss Farage. Reform UK leader wants to scrap interest payments paid by the BoE.HMRC wants to discourage savers from circumventing a new lower cash ISA limit.

Berlin court tells X to hand over data on Hungarian election

Longtime leader Viktor Orbán faces fierce opposition from rival Péter Magyar in Hungary’s vote. Chancellor Friedrich Merz says he has ‘a lot of sympathy’ for a proposal to prohibit access for under-14s.

Lithuanian lawmakers propose steep fines for buying sex

Fines for buying sex would increase from the current 90 to 140 euros to between 1,000 and 1,600 euros. Repeat offenders could face fines of up to 3,500 euros. Lawmakers say aim of the bill is to send a clear message.

EU unveils strategy to bolster Eastern border regions, including Lithuania

The strategy covers nine EU member states: Lithuania, Latvia, Poland, Finland, Slovakia, Hungary, Romania and Bulgaria. Since the start of Russia’s full-scale invasion of Ukraine, member states bordering Russia, Belarus and Ukraine have faced slower growth.

Lithuania submits evidence to UN aviation body over Belarus balloons

Lithuanian officials have described the balloon incursions as a hybrid attack by the Belarusian government. Lithuania’s airspace has been violated at least 16 times since October, affecting more than 370 flights and about 53,000 passengers. Total losses are estimated at more than 2.3 million euros.

Finnair to resume Vilnius-Helsinki evening flights in March

Finnair plans to resume flights between Vilnius and Helsinki on March 1. Flights were suspended last December following airspace disruptions by smuggler balloons from Belarus. Tickets are already on sale, Transport Minister Juras Taminskas said.

Lithuania slams Russians, Belarusians competing under own flags in Paralympic Games

Six Russian and four Belarusian athletes will be allowed to compete under their own national flags at the Winter Paralympic Games Milan-Cortina 2026. The IPC lifted its suspension of the two countries at its general assembly in September. A partial suspension introduced in 2023 – replacing a full ban imposed after the invasion – had allowed athletes to compete only as neutrals.

Lithuania’s two former PMs get questioned in separate criminal probes

Saulius Skvernelis, leader of the Democrats “For Lithuania’s”, was interviewed by the Special Investigation Service (STT) in a case concerning alleged corruption at the State Plant Service. MP Kazys Starkevičius, who has suspended his membership in the conservative TS-LKD party, declined to testify. Gintautas Paluckas is a member of the Social Democratic Party’s parliamentary group. He spent the day at the STT as a special witness in a separate investigation. The probe follows journalistic investigations into his business dealings.

Bidding farewell to winter: Užgavėnės in Vilnius – photos

Crowds gathered in the heart of the Lithuanian capital to bid farewell to winter. Accompanied by lively music, groups of Mardi Gras characters roamed the capital. The celebration culminated in the burning of Morė.

Four flights affected as smuggler balloons disrupt Vilnius Airport operations

Airspace restrictions were imposed from 20:30 to 21:45 Tuesday after the balloon-like objects were detected. Vilmantas Vitkauskas, head of the National Crisis Management Centre, said four flights were affected. Two flights were diverted, one to Kaunas and the other to Riga.

How freezing weather is stifling worship in Lithuanian churches

Churches across Lithuania are struggling to cope with soaring heating bills. Some are considering closing their doors during the cold season. Clergy say the situation has been worsened by the loss of personal income tax support. People can allocate up to 1.2% of their personal income tax to NGOs. Initially allowed churches and publicly-funded institutions, such as kindergartens and schools, to access the funds. Lawmakers later amended the law to exclude them.

Welcome to the era of anarchic antitrust

Why insider trading isn’t always bad

That irritating feeling that France was right

South Korea is still haunted by its disgraced ex-president

Plot Twist newsletter: The battle of the Brontës is back

Should you join a choir?

China’s humanoids are dazzling the world. Who will buy them?

Brain-like computers could be built out of perovskites

The Human Exposome Project will map how environmental factors shape health

How ICE’s new software tools could speed up deportations

The front line in America’s child-vaccine battle

How to think like a chess pro

How a four-year onslaught has changed Ukraine

Jesse Jackson made a black president possible

Russia’s economy has entered the death zone

The US in Brief: A clash between comedy and the FCC

The Robin Hood state: taxes are getting more progressive

Why crypto dips have soured investors

Rethinking existing tax schemes for political giving and charitable donations

Charitable and political donations are both eligible for tax relief in many countries. This column uses survey data from France to examine responses to different fiscal incentives for donations. The authors find that political donors are significantly less sensitive to the cost of giving than charitable donors.

The distributional consequences of cost-sharing in universal healthcare

Introducing copayments leads to a clear reduction in outpatient healthcare use. Groups with greater health needs and fewer economic resources are disproportionately affected. The challenge lies in designing cost-sharing policies that achieve these goals without undermining equity.

Gilt investors warn about ‘ruse’ to fund higher UK defence spending

Private equity spies a way to cut the cost of Electronic Arts’ buyout

Why UK small-caps might benefit from global shift by investors

ETFs push at SEC limit in rush to buy private stocks and debt

Hedge funds in face-off over debt of European chemicals casualty

The crypto-loving billionaire and the $400mn ‘perfect fraud’

Blue Owl permanently halts redemptions at fund aimed at retail investors

Texas pipeline operator prepares sale process as gas demand booms

UK should replace fiscal rules with ‘traffic light’ system, says think-tank

Financial Groundhog Day came late this year

Senegal has a mystery Togolese bond bid

The software sell-off, part II

Flipping out over the latest attempt to change sovereign bond contracts