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

Court confirms sacking of South Korean president who declared martial law

Published

6 hours ago

April 4, 2025

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

World

Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Published

8 hours ago

April 4, 2025

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.

The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.

While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.

Trump tariffs latest: US stock markets tumble

All three of the US’s major markets opened to sharp losses on Thursday morning.

By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.

Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.

Worst one-day losses since COVID

As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.

The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.

It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.

‘Trust in President Trump’

White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.

“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”

Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.

Economist warns of ‘spiral of doom’

The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.

He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.

Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.

He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”

It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.

Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.

Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.

It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.

He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”

World

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

Published

1 day 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.”