Poland told to ‘respect the rules’ of EU club in rule-of-law row

Published

3 years ago

October 21, 2021

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The argument now distracting and dominating the European Union is an unequal battle with the potential for far-reaching consequences.

On one side is Poland, enthusiastically supported by Hungary, and determined to prove that one of the fundamental tenets of European solidarity isn’t so fundamental after all.

On the other side is, well, just about everyone else. Some of them pressing for a conciliatory “let’s not be too harsh” debate; others wanting to go in hard.

The cause of all this anger is one of those bits of domestic news that sounds dry but has explosive potential.

In short, the country’s top court, acting on a request from Prime Minister Mateusz Morawiecki, declared that, in some areas, the national constitution took precedence over European law.

And that has set great, big alarm bells ringing. Because the golden rule of EU Club is that EU Club laws always come first. They must take primacy, to coin a phrase that has popped up a lot over the past few days.

“If you want to have the advantages of being in a club, then you need to respect the rules,” Belgian Prime Minister Alexander de Croo said. “You can’t be a member of a club and say ‘the rules don’t apply to me’.”

The Polish Prime Minister does not agree, accusing the EU of “blackmail” because of suggestions that Poland could now face sanctions. He said his country was “ready for dialogue” but refused to distance himself from the controversial court ruling.

There is no mechanism for throwing Poland out of the EU (not that anybody would want to go anywhere near that far) and, realistically, Poland has no desire to leave, either. So instead, the question is whether the EU wants to levy a punishment.

That could mean withholding financial payments, for instance, or curtailing the country’s rights as a member state.

It wouldn’t be unprecedented – Poland is already facing daily fines of half a million Euros for continuing to extract lignite from a mine near the border with the Czech Republic in defiance of a court order. There is a suspicion that Mr Morawiecki is rather relishing his battle with Brussels.

But he is not alone. Viktor Orban, the populist Prime Minister of Hungary, has repeatedly infuriated the EU with his own policies. Here, he came to town ready to leap to Poland’s defence.

“Poland – the best country in Europe – there’s no need to have any sanctions,” he said.

“We are not building fronts here, we are fighting for issues which are important for our own nations. So we make an alliance and fight together – this is the logic we are doing here. It’s not like the cold war or something like that, creating blocs.”

So, I asked Mr Orban, did he agree – did he think that Hungarian law held primacy over EU law?

He smiled. In fact, he almost laughed. “The fact is very clear that the primacy of EU law is not in the treaty at all. So the EU has primacy where it has competences. The question is about the competences.

“What’s going on here is that – regularly – European Institutions circumvent the rights of the national parliament and government and modify the treaty without having any legitimate authority to do so. So the Polish are right.”

He told me there was no schism between the east and west of Europe, but rather “between common sense and non-common sense”. With a shrug, he declared that the idea of levying sanctions against Poland was “ridiculous”.

So we are heading for a proper row. Is it worth it – the EU going into a political battle with one of its own members? It’s a question I put to the Dutch Prime Minister, Mark Rutte.

“I think we have to be tough but I think the question is how do you get there,” he told me. “My argument will be that the independence of the Polish judiciary is the key issue which we have to discuss and we have to settle.

“Poland has to take the necessary steps – that is non-negotiable. This has to do with the foundations of our democracy in this part of the world. So here we cannot negotiate.”

Of course, the EU has plenty of form at creating a crisis, only to then come up with a way to solve it. But this doesn’t feel stage-managed. It feels awkward and painful – the Germans, for instance, don’t seem to want to interfere, but nor do they want to be seen as too passive.

But Poland has popped up repeatedly in recent missives from Brussels. Its border with Belarus has been the site for migrants being pushed towards Europe by President Lukashenko, only to be stopped in their tracks by the Polish police.

Its rules on LGBTQ+ rights have been widely criticised, as have the country’s laws on equality.

And, just like Mr Orban, Poland’s prime minister seems to see political capital in having a row with other EU leaders (especially ones from the west) while retaining the financial advantages of EU membership.

So this won’t end with Poland leaving, or being dismissed from the club. But we may be heading for an almighty row, that leads to… we don’t know where.

World

Donald Trump announces sweeping global trade tariffs – including 10% on UK imports

Published

12 hours ago

April 3, 2025

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Donald Trump announces sweeping global trade tariffs - including 10% on UK imports

Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.

Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.

“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.

Follow live: Trump tariffs latest

He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.

The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.

It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.

The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.

The UK government signalled there would be no immediate retaliation.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.

“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.

“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.

“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

The EU has pledged to retaliate, which is a problem for Northern Ireland.

Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.

It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.

The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.

Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.

The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.

The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.

A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.

But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.

He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.

“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”

World

Israel announces military operation expanding in Gaza to seize ‘large areas’

Published

1 day ago

April 2, 2025

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Israel announces military operation expanding in Gaza to seize 'large areas'

Israel is beginning a major expansion of its military operation in Gaza and will seize large areas of the territory, the country’s defence minister said.

Israel Katz said in a statement that there would be a large scale evacuation of the Palestinian population from fighting areas.

In a post on X, he wrote: “I call on the residents of Gaza to act now to remove Hamas and return all the hostages. This is the only way to end the war.”

He said the offensive was “expanding to crush and clean the area of terrorists and terrorist infrastructure and capture large areas that will be added to the security zones of the State of Israel”.

The expansion of Israel’s military operation in Gaza deepens its renewed offensive.

The ceasefire between Israel and Hamas that had begun in January ended in March as Israel launched various air strikes on targets across Gaza.

The deal had seen the release of dozens of hostages and hundreds of Palestinian prisoners, but collapsed before it could move to phase two, which would have involved the release of all hostages and the withdrawal of Israeli forces from Gaza.

The Israel Defense Forces (IDF) had already issued evacuation warnings to Gazans living around the southern city of Rafah and towards the city of Khan Yunis, telling them to move to the al Mawasi area on the shore, which was previously designated a humanitarian zone.

Israeli forces have already set up a significant buffer zone within Gaza, having expanded an area around the edge of the territory that had existed before the war, as well as a large security area in the so-called Netzarim corridor through the middle of Gaza.

This latest conflict began when Hamas launched an attack on Israel on 7 October 2023, killing around 1,200 people and taking around 250 hostages.

The ensuing Israeli offensive has killed more than 50,000 Palestinians, according to Gaza’s Hamas-run health ministry.

Aid group Doctors Without Borders warned on Wednesday that Israel’s month-long siege of Gaza means some critical medications are now short in supply and are running out, leaving Palestinians at risk of losing vital healthcare.

“The Israeli authorities’ have condemned the people of Gaza to unbearable suffering with their deadly siege,” said Myriam Laaroussi, the group’s emergency coordinator in Gaza.

“This deliberate infliction of harm on people is like a slow death; it must end immediately.”

World

‘Liberation day is here’: But what will it mean for global trade?

Published

1 day ago

April 2, 2025

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'Liberation day is here': But what will it mean for global trade?

“Liberation day” was due to be on 1 April. But Donald Trump decided to shift it by a day because he didn’t want anyone to think it was an April fool.

It is no joke for him and it is no joke for governments globally as they brace for his tariff announcements.

It is stunning how little we know about the plans to be announced in the Rose Garden of the White House later today.

It was telling that we didn’t see the President at all on Tuesday. He and all his advisers were huddled in the West Wing, away from the cameras, finalising the tariff plans.

Follow the events of Liberation Day live as they unfold

Three key figures are central to it all.

Treasury Secretary Scott Bessent is the so-called ‘measured voice’. A former hedge fund manager, he has argued for targeted not blanket tariffs.

Peter Navarro is Trump’s senior counsellor for trade and manufacturing. A long-time aide and confidante of the president, he is a true loyalist and a firm believer in the merits of tariffs.

His economic views are well beyond mainstream economic thought – precisely why he appeals to Trump.

‘Stop that crap’: Trump adviser Peter Navarro reacts to Sky News correspondent’s question over tariffs

The third key character is Howard Lutnick, the commerce secretary and the biggest proponent of the full-throttle liberation day tariff juggernaut.

The businessman, philanthropist, Trump fundraiser and billionaire (net worth ranging between $1bn and $2bn) has been among the closest to Trump over the past 73 days of this presidency – frequently in and out of the West Wing.

If anything goes wrong, observers here in Washington suspect Trump will make Lutnick the fall guy.

What are Donald Trump’s tariffs, what is ‘liberation day’ and how does it all affect the UK?

And what if it does all go wrong? What if Trump is actually the April fool?

“It’s going to work…” his press secretary said when asked if it could all be a disaster, driving up the cost of living for Americans and creating global economic chaos.

“The president has a brilliant team who have been studying these issues for decades and we are focussed on restoring the global age of America…” Karoline Leavitt said.

Dancing to the president’s tune

My sense is that we should see “liberation day” not as the moment it’s all over in terms of negotiations for countries globally as they try to carve out deals with the White House. Rather it should be seen as the start.

Trump, as always, wants to be seen as the one calling the shots, taking control, seizing the limelight. He wants the world to dance to his tune. Today is his moment.

But beyond today, alongside the inevitable tit-for-tat retaliation, expect to see efforts by nations to seek carve-outs and to throw bones to Trump; to identify areas where trade policies can be tweaked to placate the president.

Even small offerings which change little in a material sense could give Trump the chance to spin and present himself as the winning deal maker he craves to be.

One significant challenge for foreign governments and their diplomats in Washington has been engaging the president himself with proposals he might like.

Negotiations take place with a White House team who are themselves unsure where the president will ultimately land. It’s resulted in unsatisfactory speculative negotiations.

Too much faith placed in the ‘special relationship’?

The UK believes it’s in a better position than most other countries globally. It sits outside the EU giving it autonomy in its trade policy, its deficit with the US is small, and Trump loves Britain.

It’s true too that the UK government has managed to accelerate trade conversations with the White House on a tariff-free trade partnership. Trump’s threats have forced conversations that would normally sit in the long grass for months.

Yet, for now, the conversations have yielded nothing firm. That’s a worry for sure. Did Keir Starmer have too much faith in the ‘special relationship’?

Downing Street will have identified areas where they can tweak trade policy to placate Trump. Cars maybe? Currently US cars into the UK carry a 10% tariff. Digital services perhaps?

US food? Unlikely – there are non-tariff barriers on US food because the consensus seems to be that chlorinated chicken and the like isn’t something UK consumers want.

Easier access to UK financial services maybe? More visas for Americans?

For now though, everyone is waiting to see what Trump does before they either retaliate or relent and lower their own market barriers.