Donald Trump did not send a video message to the European summit in Budapest today, as its host Viktor Orban is reported to have wanted – but his impact was felt everywhere.
UK and European leaders discussed possible US tariffs – which could have a huge economic impact – migration, and of course, Ukraine, where changes in the White House will determine the course of the war.
Messages of support were sent to Kyiv from allies. Keir Starmer, one of 42 national leaders attending, had a bilateral meeting with President Zelenskyy and reassured him of the UK’s “ironclad” support.
European Commission chief Ursula von der Leyen was more direct – saying it was in all European countries’ interests to show “the autocrats of the world that there’s not a right of might” and to defend “the integrity of countries”.
Only Orban, Trump’s chief cheerleader in Europe – who said he had toasted the election result with vodka – favours negotiations with Vladimir Putin.
Trump, who said he would solve the war “in 24 hours” if he was re-elected, is feared to be planning to pressure Zelenskyy into surrendering territory to bring the war to an end.
Whatever it takes to back Ukraine was the message from most here, but there was anxiety about whether Europe has what it takes.
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3:14
Donald Trump’s US election victory was a hot topic of discussion at the European Political Community meeting.
EU leaders – minus the UK and others attending today – will be meeting for dinner tonight to chew over the new trans-Atlantic relationship in more detail.
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The European Political Community, holding its fifth meeting, was set up in the wake of Russia’s invasion of Ukraine as a chance for the EU to meet wider partners such as the UK, Turkey and Caucasus nations to discuss key security challenges including conflict and irregular migration.
This one – as the enormity of the US result sank in – saw starker messages than usual about money; the need for countries to step up to spend more on defence if the US disengages from European defence.
The new secretary general of NATO, Mark Rutte, said Trump had forced fellow members to pay their way and that he was right to do so. A total of 22 of the bloc’s 32 members are now spending 2% – double what it was two years ago.
But not all – and Sir Keir has already faced questions at home about when he’ll meet his campaign promise to spend 2.5%. Today, he said he was pleased to have announced a recent boost in the budget, but the “roadmap” to that target is still unclear.
Zelenskyy himself told reporters at the summit he believes Trump wants a quick end to war – but that doing so without first agreeing security guarantees for Ukraine is “very dangerous”.
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At the summit, Sir Keir told President Zelenskyy: “We need to step up.”
The German defence minister, who met his French counterpart within hours of Trump’s win, said ahead of the summit that the challenge from the US was clear: “They’ll be able to do less in Europe. We need to fill this gap to be more credible in terms of deterrence.”
Europe has other security concerns, including irregular migration, on which Keir Starmer is trying to galvanise joint action in order to show that his promise to reduce small boat crossings can be met.
But there was little doubt leaders are feeling the aftershocks of what could be a major shift with implications for decades.
Major developers will only deal with one regulator under planning reforms which ministers say will “rewire the system” to get Britain building – all while protecting the environment.
A review by former Labour adviser Dan Corry into Britain’s sluggish system of green regulation has concluded that existing environmental regulators should remain in place, while rejecting a “bonfire of regulations”.
But Mr Corry suggested there might be circumstances in which the government look at changing the wildlife and habit rules inherited from the EU, which protect individual species.
The government has now explicitly ruled out any such change in this parliament.
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Campaigners have questioned whether the changes go far enough and will make a major difference to the rate and scale of building in the UK.
Speaking to Sky News, Environment Secretary Steve Reed insisted that accepting nine of the recommendations from the Corry review would amount to wholesale reform.
The minister said: “We can get a win-win for economic growth and for nature. And that is why we are moving ahead with proposals such as appointing a lead regulator for major developments so that the developers don’t have to navigate the architecture of multiple regulators.
“They just work for a single regulator who manages all the others on their behalf. Simplifying the online planning portal.
“These are huge changes that will save developers billions of pounds and speed up decisions doing damage to the environment.”
Mr Reed insisted that there would be “no more bat tunnels” built, even though the Corry review suggests that more work needs to be done to look again at the relevant guidance.
It says: “Rapidly reviewing the existing catalogue of compliance guidance, including on protecting bats, will identify opportunities to remove duplication, ambiguity or inconsistency.
“Natural England has already agreed to review and update their advice to Local Planning Authorities on bats to ensure there is clear, proportionate and accessible advice available.”
The review will mean:
• Appointing one lead regulator for every major infrastructure project, like Heathrow expansion
• A review on how nature rules are implemented – but not the rules themselves
• Insisting regulators focus more on government priorities, particularly growth
Economist and former charity leader Mr Corry, who led the review, said it shows that “simply scrapping regulations isn’t the answer”.
“Instead we need modern, streamlined regulation that is easier for everyone to use. While short-term trade-offs may be needed, these reforms will ultimately deliver a win-win for both nature and economic growth in the longer run.”
However, Sam Richards from Britain Remade, a thinktank trying to get Britain growing, said that while the steps are welcome, the number of regulators that report to the environment department would remain the same before and after the review. He questioned whether this would have the impact ministers claimed.
Kentucky’s finance watchdog has dismissed its lawsuit against Coinbase over the exchange’s staking rewards program, following its peers in Vermont and South Carolina.
Kentucky’s Department of Financial Institutions filed the stipulation to dismiss jointly with Coinbase on April 1, ending the state’s legal action against the exchange first filed along with 10 other state regulators in June 2023.
Coinbase chief legal officer Paul Grewal posted to X on April 1, calling for Congress “to end this litigation-driven, state-by-state approach with a federal market structure law.”
Financial regulators from 10 states launched similar suits against Coinbase in June 2023, on the same day the Securities and Exchange Commission sued the exchange — a lawsuit the SEC dropped last month.
Seven suits against Coinbase still active
Alabama, California, Illinois, Maryland, New Jersey, Washington and Wisconsin are the seven states that are still continuing with their lawsuits, which all allege Coinbase breached securities laws with its staking rewards program.
Vermont was the first state to end its suit against Coinbase, with its Department of Financial Regulation filing an order to rescind the action on March 13, noting the SEC’s Feb. 27 decision to drop its action against the exchange and the likelihood of changes in the federal regulator’s guidance.
The South Carolina Attorney General’s securities division followed Vermont days later, dismissing its lawsuit in a joint stipulation with Coinbase on March 27.
Kentucky’s decision to drop its case against Coinbase follows just days after the state’s governor, Andy Beshear, signed a “Bitcoin Rights” bill into law on March 24 that establishes protections for crypto self-custody and exempts crypto mining from money transmitting and securities laws.
The axed state-level lawsuits come amid a stark policy change at the SEC, which has dropped or delayed multiple lawsuits against crypto companies that it filed under the Biden administration.
The federal securities watchdog has also created a Crypto Task Force that is engaging with the industry on how it should approach cryptocurrencies.
Sir Keir Starmer has said US-UK trade talks are “well advanced” ahead of tariffs expected to be imposed by Donald Trump on the UK this week – but rejected a “knee-jerk” response.
Speaking to Sky News political editor Beth Rigby, the prime minister said the UK is “working hard on an economic deal” with the US and said “rapid progress” has been made on it ahead of tariffs expected to be imposed on Wednesday.
But, he admitted: “Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.
“But I have to act in the national interest and that means all options have to remain on the table.”
Sir Keir added: “We are discussing economic deals. We’re well advanced.
“These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.”
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Downing Street said on Monday the UK is expecting to be hit by new US tariffs on Wednesday – branded “liberation day” by the US president – as a deal to exempt British goods would not be reached in time.
A 25% levy on car and car parts had already been announced but the new tariffs are expected to cover all exports to the US.
Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is “hopeful” the tariffs can be reversed soon.
But he warned: “The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.”
He added the government was taking a “calm-headed” approach in the hope a deal can be agreed but said it is only “reasonable” retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.
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‘Everything on table over US tariffs’
Mr Trump will unveil his tariff plan on Wednesday afternoon at the first Rose Garden news conference of his second term, the White House press secretary said.
“Wednesday, it will be Liberation Day in America, as President Trump has so proudly dubbed it,” Karoline Leavitt said.
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades. He’s doing this in the best interest of the American worker.”
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3:09
Trump’s tariffs: What can we expect?
Tariffs would cut UK economy by 1%
UK government forecaster the Office for Budget Responsibility (OBR) said a 20 percentage point increase in tariffs on UK goods and services would cut the size of the British economy by 1% and force tax rises this autumn.
Global markets remained flat or down on Monday in anticipation of the tariffs, with the FTSE 100 stock exchange trading about 1.3% lower on Monday, closing with a 0.9% loss.
On Wall Street, the S&P 500 rose 0.6% after a volatile day which saw it down as much as 1.7% in the morning.
However, the FTSE 100 is expected to open about 0.4% higher on Tuesday, while Asian markets also steadied, with Tokyo’s Nikkei 225 broadly unchanged after a 4% slump yesterday.