Connect with us

Published

on

The Greek prime minister’s party got the call that Rishi Sunak was cancelling his meeting with Kyriakos Mitsotakis when they were on the way to talks with Sir Keir Starmer in parliament.

It did not feel like a coincidence.

With the Conservatives trailing a disastrous average of 19 points behind Labour in the opinion polls, the thin-skinned British PM and his entourage are increasingly uptight about Starmer being treated as a prime minister in waiting – PMiW for short – especially by fellow VIPs.

It is fascinating to observe the shuffling in the corridors of power when an opponent starts to look like a credible challenger to the incumbent.

The PM cannot get away from them in a parliamentary democracy but how should they treat political rivals when they are on an upward arc? Ignore them? Snub them? Patronise them graciously?

None of these is a comfortable option. Not least because other foreign leaders and power brokers quite legitimately want to get to know someone who they anticipate could be taking over soon.

UK prime ministers behave no differently. Tony Blair made a point of meeting the conservative candidate Angela Merkel in the run-up to a German election, even though he was in Berlin on a final visit to the outgoing chancellor, and fellow social democrat, Gerhard Schroder.

More on Rishi Sunak

Sunak told MPs that he cancelled the invitation to the recently re-elected centre-right prime minister of a friendly European power “when it was clear that the purpose of the meeting was not to discuss substantive issues but rather to grandstand” about the Parthenon Marbles, sold to the British Museum by Lord Elgin.

The official-looking meeting

Far from impressing his audience, Sunak handed the Leader of the Opposition a grandstand opportunity to whack him with a severe PMQs spanking and to advertise his own credentials as a PMiW. Few would have noticed Starmer’s talks without the row.

Starmer wasted no time retorting that he had met “a fellow NATO member, an economic ally and one of our most important partners in tackling illegal immigration” and that “I discussed the economy, security and immigration with the Greek prime minister. I also told him we would not change the law regarding the marbles – it is not that difficult”.

Labour Party leader Sir Keir Starmer (left) meets Prime Minister of Greece Kyriakos Mitsotakis in London. Picture date: Monday November 27, 2023.
Image:
Sir Keir Starmer meets Kyriakos Mitsotakis

By agreement, Starmer’s meeting with Mitsotakis was an official-looking affair – complete with pool camera pictures. Yvette Cooper, the shadow home secretary, David Lammy, the shadow foreign secretary, and other officials joined them around a conference table.

Trying to look like a prime minister has meant Starmer frequently falls in line with government plans to avoid controversy. With the scent of power in the air, and the Corbynistas largely sidelined, Labour MPs are going along with this in public. By contrast the Conservatives seldom miss an opportunity to disagree among themselves.

A previous Labour PMiW, sitting on a similar poll lead, might find the situation familiar. Tony Blair notes in his memoirs: “[John] Major decided on a long campaign… the hope was I would trip up, I would suddenly lose my head, or by some trick of fate or fortune the mood of the public would change… instead and rather more predictably the Tories fell apart.

“Every time Major tried to get them on the front foot, someone in his ranks resigned, said something stupid or got caught in a scandal.”

Prime Minister Rishi Sunak talks to former British Prime Minister, Tony Blair win the sidelines of the Cop28 UN climate summit in Dubai. Picture date: Friday December 1, 2023.
Image:
Rishi Sunak talking to former PM Tony Blair at the COP28 UN climate summit in Dubai

Leaders in office are well aware they are conferring status when they meet PMiWs.

In the run-up to the 1987 General Election, Neil Kinnock secured an audience with President Reagan, coinciding with Margaret Thatcher’s high-profile trip to Mikhail Gorbachev in Moscow.

Point one on the confidential State Department memo to the president spelt it out: “WHAT DOES KINNOCK WANT? * To meet with the President as Leader of the British Opposition and potential prime minister to demonstrate that he is a serious figure in international affairs.”

Not surprisingly, given Reagan’s fondness for Thatcher, that encounter did not go well – Labour felt slighted by White House briefings afterwards and retaliated by claiming Reagan was not on the ball.

Ronald Reagan and Margaret Thatcher had a close political relationship
Image:
Ronald Reagan and Margaret Thatcher had a close political relationship. Pic: AP

Presidents are also heads of state, which means they can rise above party politics when it suits them.

US presidents usually hold at least one meeting with British opposition leaders.

Party allegiances, between Conservatives and Republicans on the right or Labour and Democrats on the left, do not matter much.

Shortly after taking office in 2009, Barack Obama insisted on a half-hour meeting with David Cameron, then leader of the opposition, at the US ambassador’s residence, Winfield House.

Both sides fielded top teams of officials, including Tim Geithner, US treasury secretary and Hillary Clinton, then secretary of state.

Read more:
Elgin Marbles row intensifies as Greece denies promising not to raise issue
UK officials eye legally blocking Elgin Marbles return as Greek PM complains

The British monarch, Queen or King, may also facilitate contacts because opposition leaders are invited to state occasions.

Ever the iconoclast, on his state visit in 2019 Trump claimed he had turned down a request from then Labour leader Jeremy Corbyn: “He wanted to meet today. I said no. He is somewhat of a negative force.”

Rachel Reeves and David Lammy have been on official trips to Washington DC, but Starmer has not yet had a formal meeting with Joe Biden even though this president has been to the UK five times, though never on a state visit.

Perhaps this is just as well given the polarisation of US politics with an election year approaching in both countries. For now, Sunak or Starmer are transparently eager not to be seen anywhere near Donald Trump.

Opposition ‘left out’

Number 10 and the Foreign Office are certainly not making it easy for Labour.

Rishi Sunak during PMQS
Image:
Rishi Sunak during PMQS

Reportedly, the prime minister has not yet given the green light to the civil service to begin the briefings for the opposition, which are normal courtesy in the run-up to an election.

There was no invitation to a Labour minister to join in the recent international talks on AI security at Bletchley Park.

This week, Business Secretary Kemi Badenoch posted on X from the government’s investor conference: “It was sad to hear from some investors yesterday that they’d move their HQs out of UK if Labour win.

“They tell me Labour relentlessly talk down the economy. Labour are like one of those candidates on The Apprentice who get fired early on. All talk no substance.”

She did not respond to challenges to name any such investors.

In the business community, a different rumour has been circulating; that attendees were quietly warned their invitations to the Hampton Court junket would be withdrawn if they committed prominently to one of shadow chancellor Rachel Reeves’ over-subscribed events.

Labour says the chancellor pressured “a load of businesses” not to sign up to their “British Infrastructure Council”.

This autumn, French President Emmanuel Macron invited Starmer and colleagues to the Elysee for talks.

Rishi Sunak is Britain’s only Brexiteer prime minister by life-long conviction.

He is super sensitive about relations with Europe and turned down an EU invitation to hold regular EU-UK ministerial summits.

Barbs at PMQs

During PMQs he chided Starmer, with no justification beyond the Greek meeting, that “no one will be surprised that he is backing an EU country over Britain”.

Keir Starmer during PMQS
Image:
Keir Starmer during PMQS

Starmer stuttered back that the PM was digging himself into a deeper hole: “Let me get this straight: the prime minister is now saying that meeting the prime minister of Greece is somehow supporting the EU, instead of discussing serious issues”.

If the prime minister was trying to energise a group of voters, the pickings may be slim. Well over 60% now tell pollsters that Brexit has not gone well and would like better relations with the EU.

Is it important for a PMiW to mix with current leaders on equal terms? It is surely good preparation if they end up getting the job. For some voters, it will be reassuring that a new leader might already count for something in international negotiations.

Sunak and Starmer both attended the COP28 climate summit in the UAE this weekend, where the King made a speech.

The PM dashed in for less than 24 hours. Starmer stayed three days until Sunday – to fulfil requests for meetings from a number of heads of state and government, according to his staff.

Neither the Elgin Marbles nor, frankly, Greece, are at the top of the diplomatic agenda. The UK government and opposition agree they are not going to change the law so the sculptures can be handed over.

Read more:
How did the Elgin Marbles end up in the British Museum?
Ex-culture secretary: PM did not need to be ‘front and centre’ of row

The difference is that Sunak has made a diplomatic incident of it and, unlike Starmer, he has also obstructed the attempts to broker a compromise by a former Conservative colleague George Osborne, who is now chairman of the British Museum.

Perhaps the most painful swipe at PMQs for the prime minister came when Starmer risked a question, with the merest hint of a sizeist jibe at Sunak’s diminutive stature: “Why such small politics, prime minister?”

Or was it more humiliating when the Speaker rose to quell rowdies drowning out the PM’s peroration that “the British people aren’t listening” – to Starmer, he meant?

Whether they are listening now or not, come the general election the wait will be over for Sunak and Starmer. It will be up to the British people to choose who they think looks like the next PM.

Continue Reading

Politics

The cost of innovation — Regulations are Web3’s greatest asset

Published

on

By

The cost of innovation — Regulations are Web3’s greatest asset

The cost of innovation — Regulations are Web3’s greatest asset

Opinion by: Hedi Navazan, chief compliance officer at 1inch

Web3 needs a clear regulatory system that addresses innovation bottlenecks and user safety in decentralized finance (DeFi). A one-size-fits-all approach cannot be achieved to regulate DeFi. The industry needs custom, risk-based approaches that balance innovation, security and compliance.

DeFi’s challenges and rules

A common critique is that regulatory scrutiny leads to the death of innovation, tracing this situation back to the Biden administration. In 2022, uncertainty for crypto businesses increased following lawsuits against Coinbase, Binance and OpenSea for alleged violations of securities laws.

Under the US administration, the Securities and Exchange Commission agreed to dismiss the lawsuit against Coinbase, as the agency reversed the crypto stance, hinting at a path toward regulation with clear boundaries.

Many would argue that the same risk is the same rule. Imposing traditional finance requirements on DeFi simply will not work from many aspects but the most technical challenges.

Openness, transparency, immutability, and automation are key parameters of DeFi. Without clear regulations, however, the prevalent issue of “Ponzi-like schemes” can divert focus from effective innovation use cases to conjuring a “deceptive perception” of blockchain technology. 

Guidance and clarity from regulatory bodies can reduce significant risks for retail users.

Policymakers should take time to understand DeFi’s architecture before introducing restrictive measures. DeFi needs risk-based regulatory models that understand its architecture and address illicit activity and consumer protection. 

Self-regulatory frameworks cultivate transparency and security in DeFi

The entire industry highly recommends implementing a self-regulatory framework that ensures continuous innovation while simultaneously ensuring consumer safety and financial transparency. 

Take the example of DeFi platforms that have taken a self-regulatory approach by implementing robust security measures, including transaction monitoring, wallet screening and implementing a blacklist mechanism that restricts a wallet of suspicion with illicit activity. 

Sound security measures would help DeFi projects monitor onchain activity and prevent system misuse. Self-regulation can help DeFi projects operate with greater legitimacy, yet it may not be the only solution.

Clear structure and governance are key

It’s no secret that institutional players are waiting for the regulatory green light. Adding to the list of regulatory frameworks, Markets in Crypto-Assets (MiCA) sets stepping stones for future DeFi regulations that can lead to institutional adoption of DeFi. It provides businesses with regulatory clarity and a framework to operate.

Many crypto projects will struggle and die as a result of higher compliance costs associated with MiCA, which will enforce a more reliable ecosystem by requiring augmented transparency from issuers and quickly attract institutional capital for innovation. Clear regulations will lead to more investments in projects that support investor trust.

Anonymity in crypto is quickly disappearing. Blockchain analytics tools, regulators and companies can monitor suspicious activity while preserving user privacy to some extent. Future adaptations of MiCA regulations can enable compliance-focused DeFi solutions, such as compliant liquidity pools and blockchain-based identity verification.

Regulatory clarity can break barriers to DeFi integration

The banks’ iron gate has been another significant barrier. Compliance officers frequently witness banks erect walls to keep crypto out. Bank supervisors distance companies that are out of compliance, even if it’s indirect scrutiny or fines, slamming doors on crypto projects’ financial operations.

Clear regulations will address this issue and make compliance a facilitator, not a barrier, for DeFi and banking integration. In the future, traditional banks will integrate DeFi. Institutions will not replace banks but will merge DeFi’s efficiencies with TradFi’s structure.

Recent: Hester Peirce calls for SEC rulemaking to ‘bake in’ crypto regulation

The repeal of Staff Accounting Bulletin (SAB) 121 in January 2025 mitigated accounting burdens for banks to recognize crypto assets held for customers as both assets and liabilities on their balance sheets. The previous laws created hurdles of increased capital reserve requirements and other regulatory challenges.

SAB 122 aims to provide structured solutions from reactive compliance to proactive financial integration — a step toward creating DeFi and banking synergy. Crypto companies must still follow accounting principles and disclosure requirements to protect crypto assets.

Clear regulations can increase the frequency of banking use cases, such as custody, reserve backing, asset tokenization, stablecoin issuance and offering accounts to digital asset businesses.

Building bridges between regulators and innovators in DeFi

Experts pointing out concerns about DeFi’s over-regulation killing innovation can now address them using “regulatory sandboxes.” These dispense startups with a “secure zone” to test their products before committing to full-scale regulatory mandates. For example, startups in the United Kingdom under the Financial Conduct Authority are thriving using this “trial and error” method that has accelerated innovation.

These have enabled businesses to test innovation and business models in a real-world setting under regulator supervision. Sandboxes could be accessible to licensed entities, unregulated startups or companies outside the financial services sector.

Similarly, the European Union’s DLT Pilot Regime advances innovation and competition, encouraging market entry for startups by reducing upfront compliance costs through “gates” that align legal frameworks at each level while upgrading technological innovation.

Clear regulations can cultivate and support innovation through open dialogue between regulators and innovators.

Opinion by: Hedi Navazan, chief compliance officer at 1inch.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Continue Reading

Politics

Kemi Badenoch does not rule out local coalitions with Reform after Thursday’s council elections

Published

on

By

Kemi Badenoch does not rule out local coalitions with Reform after next week's council elections

Kemi Badenoch has not ruled out forming coalitions at a local level with Reform after the council elections on Thursday.

Speaking to Sunday Morning with Trevor Phillips, the Conservative leader did however categorically rule out a pact with Nigel Farage’s party on a national level.

“I am not going into any coalition with Nigel Farage… read my lips,” she said.

Politics latest: UK has ‘recognised all along’ Russia is aggressor – minister

However, she did not deny that deals could be struck with Reform at a local level, arguing some councils might be under no overall control and in that case, “you have to do what is right for your local area”.

“You look at the moment, we are in coalition with Liberal Democrats, with independents,” she said. “We’ve been in coalition with Labour before at local government level.

“They [councillors] have to look at who the people are that they’re going into coalition with and see how they can deliver for local people.”

More on Conservatives

She added: “What I don’t want to hear is talks of stitch-ups or people planning things before the results are out. They have to do what is right for their communities.”

In response, Nigel Farage said: “The Tories broke Britain nationally for 14 years, and their councils continue to break local communities with the highest taxes ever and worst services.

“Reform have no intention in forming coalitions with the Tories at any level.”

A total of 23 councils are up for grabs when voters go to the polls on Thursday 1 May – mostly in places that were once deemed Tory shires, until last year’s general election.

It includes 14 county councils, all but two of which have been Conservative-controlled, as well as eight unitary authorities, all but one of which are Tory.

In addition, there is one Labour-controlled borough being contested.

Ms Badenoch has set expectations low for the Tories, suggesting they could lose all the councils they are contesting.

The last time this set of councils were up for election was in 2021, when the Conservative Party was led by Boris Johnson who was riding high from the COVID vaccine bounce.

Despite not ruling out agreements between the Tories and Reform once the local elections have finished, Ms Badenoch has been at pains to stress she is against any kind of deal with Mr Farage at a national level.

On Friday she criticised talk of “stitch-ups” ahead of next week’s local elections and said she was instead focused on ensuring that voters have a “credible Conservative offer”.

Speculation that the Tories and Reform could join forces heightened after two senior Tories appeared to advocate for some sort of agreement between the two rival parties.

Robert Jenrick, the shadow justice secretary, was captured in a video recording leaked to Sky News vowing to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer competing for votes by the time of the next general election.

Please use Chrome browser for a more accessible video player

What leaked audio of Jenrick tells us

According to the excusive audio Mr Jenrick – who lost the Tory leadership campaign to Ms Badenoch – said he would try “one way or another” to make sure the two right-wing parties do not end up handing a second term to Sir Keir Starmer.

Mr Jenrick has denied his words amounted to calling for a pact with Reform.

Meanwhile, in an interview with Politico, Tees Valley Mayor Ben Houchen also suggested the two parties should join forces in some way.

“I don’t know what it looks like. I don’t know whether it’s a pact. I don’t know whether it’s a merger… [or] a pact of trust and confidence or whatever,” he said.

“But if we want to make sure that there is a sensible centre-right party leading this country, then there is going to have to be a coming together of Reform and the Conservative Party in some way.”

Read more:
Could the local elections reshape British politics?
‘Bring on the fight’ over net zero, says Ed Miliband

All of the other national parties have launched their campaigns for the local elections ahead of the poll next week.

Labour Cabinet Office minister Pat McFadden told Trevor Phillips that he was “not predicting huge Labour gains on Thursday”.

He also ruled out Labour striking deals with any other party.

“The deals on offer after Thursday won’t be between Labour and the Tories and Labour and Reform,” he said.

“But what there’s been a lot of debate about is what’s going to happen between the Tories and Reform, because I’m not even sure if they’re two different parties or one party at the moment.”

Continue Reading

Politics

Federal taxes to be ‘substantially reduced’ once tariffs set in: Trump

Published

on

By

<div>Federal taxes to be 'substantially reduced' once tariffs set in: Trump</div>

<div>Federal taxes to be 'substantially reduced' once tariffs set in: Trump</div>

United States President Donald Trump recently said that federal income taxes would be “substantially reduced” or potentially eliminated once the tariff regime fully sets in.

In an April 27 Truth Social post, Trump added that the focus of the purported tax cuts would be on individuals making less than $200,000 per year.

The US President also said that the “External Revenue Service” — a reference to funding the federal government exclusively through import tariffs instead of the current model of collecting taxes through the Internal Revenue Service (IRS) — is materializing.

Eliminating the federal income tax would likely be a positive catalyst for asset prices, including cryptocurrencies, as the increase in disposable income should partially flow back into productive investments. However, this stimulative effect is not guaranteed.

Taxes, US Government, United States, Donald Trump
Source: Donald Trump

Related: If Trump fired Powell, what would happen to crypto?

Trump’s plan leaves analysts and markets doubting

Trump previously floated the idea of eliminating the federal income tax in an October 2024 appearance on the Joe Rogan Experience, although Trump, who was on the campaign trail at the time, provided scant concrete details on the proposal.

The US President suggested that replacing the federal income tax with revenue from import duties would return the US to a time of prosperity seen during the Gilded Age, in the 19th century, when the US did not have a permanent federal income tax.

Research conducted by accounting automation company Dancing Numbers found that Trump’s proposal could save the average American $134,809 in lifetime tax payments.

Dancing Numbers added that the tax savings could be as much as $325,561 per American if other wage-based income taxes are also eliminated.

On April 2, Trump signed an executive order imposing sweeping tariffs on all US trading partners, which included a 10% baseline tariff on all countries and different “reciprocal” tariff rates on countries with import duties on US goods.

However, since that time, the Trump administration walked back its tariff policies several times, flip-flopping on tariff rates and when the tariff regime would fully take effect.

The Trump administration’s ever-changing rhetoric surrounding trade policies has heightened volatility in the US stock market, caused a rise in US bond yields, and has drawn widespread criticism from financial analysts who say the protectionist trade policies hurt capital markets while achieving little else.

Magazine: Harris’ unrealized gains tax could ‘tank markets’: Nansen’s Alex Svanevik, X Hall of Flame

Continue Reading

Trending