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Sir Keir Starmer will urge European countries to commit more in defence spending as he heads to Brussels for security talks.

The prime minister will call on Europe to “step up and shoulder more of the burden” to fend off the threat posed by Vladimir Putin’s Russia.

Sir Keir, the first prime minister to meet all the leaders of the 27 EU nations in Brussels since Brexit, will argue the bloc needs to capitalise on the weak state of the Russian economy by continuing with its sanctions regime.

The prime minister will meet NATO Secretary General Mark Rutte on Monday afternoon before travelling to meet with the leaders at an informal meeting of the European Council.

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Sir Keir Starmer with Olaf Scholz, the German chancellor, whom he hosted at Chequers on Sunday. Pic: PA

Sir Keir is expected to say: “We need to see all allies stepping up – particularly in Europe.

President Trump has threatened more sanctions on Russia and it’s clear that’s got Putin rattled. We know that he’s worried about the state of the Russian economy.

“I’m here to work with our European partners on keeping up the pressure, targeting the energy revenues and the companies supplying his missile factories to crush Putin’s war machine.

“Because ultimately, alongside our military support, that is what will bring peace closer.”

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Ukrainian soldiers have message for Trump

Sir Keir’s suggestion that EU countries should spend more on defence was criticised by the Conservatives, who have urged the government to increase defence spending to 2.5% of national income.

Shadow defence secretary James Cartlidge said that while “continuing to do everything possible to support Ukraine must remain our top security priority”, it had to accompanied by “urgently increasing defence spending on our own armed forces”.

“Starmer is actually delaying spending 2.5% and, as a result, undermining our ability to rearm at the scale and pace required by the threats we face.”

The prime minister said at the end of last year that he would “set out a path” to lift defence spending to 2.5% of national income in the spring.

The UK says it currently spends around 2.3% of GDP [gross domestic product] on defence.

Britain's Prime Minister Keir Starmer, NATO Secretary General Mark Rutte, and Ukrainian President Volodymyr Zelenskyy  meet at 10 Downing Street in London, Britain, Oct. 10, 2024. Pic: Reuters
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Ukrainian President Volodymyr Zelenskyy, Prime Minister Keir Starmer and NATO Secretary General Mark Rutte at 10 Downing Street in October. Pic: Reuters

Last year EU member states spent an average of 1.9% of EU GDP on defence, according to the European Defence Agency, a 30% increase compared with 2021.

Earlier this week European Council President Antonio Costa said the 23 EU members who belong to NATO are likely to agree to raise the defence spending target above the current 2% of national output at the next NATO summit in June.

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However, Donald Trump has repeatedly criticised NATO – the military alliance consisting of 30 European countries and the US and Canada – arguing that his country is contributing too much to the alliance’s budget while Europeans contribute too little.

During the US election campaign, President Trump said America would only help defend NATO members from a future attack by Russia if they met their spending obligations.

He also said members of NATO should be contributing 5% of their GDPs to defence spending – rather than the previous target of 2%.

The session of the Informal European Council comes as the government seeks to reset its relationship with the EU and boost areas of cooperation, including on defence and tackling illegal migration.

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Starmer hosts German chancellor

On Sunday the prime minister hosted German Chancellor Olaf Scholz at his country residence Chequers, where the two leaders agreed on the “importance of scaling up and coordinating defence production across Europe”, Downing Street said.

However, the government has repeatedly said that a closer relationship with the EU will only be sought within its red lines – meaning there will be no return to freedom of movement and rejoining the customs union or single market.

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Nasdaq crypto chief pledges to ‘move as fast as we can’ on tokenized stocks

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Nasdaq crypto chief pledges to ‘move as fast as we can’ on tokenized stocks

The US Nasdaq stock exchange is making SEC approval of its proposal to offer tokenized versions of stocks listed on the exchange a top priority, according to the exchange’s crypto chief.

“We’ll just move as fast as we can,” Nasdaq’s head of digital assets strategy, Matt Savarese, said during an interview with CNBC on Thursday, when asked whether the SEC could approve the proposal this year.

“I think what we have to really evaluate where the public comments come back in and then answer and respond to the SEC questions as they come through,” Savarese said. “We hope to kind of work with them as quickly as possible,” Savarese said.

Savarese says Nasdaq isn’t “upending the system”

The proposal, submitted by Nasdaq on Sept. 8, is requesting to allow investors to buy and sell stock tokens — digital representations of shares in publicly traded companies — on the exchange.

Savarese emphasized that Nasdaq is not trying to overhaul the way stocks are invested in when asked whether he expects other major exchanges to follow suit.

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Nasdaq’s head of digital assets, Matt Savarese, spoke to CNBC on Thursday. Source: CNBC

“We’re not looking at upending the system; we want everyone to come along for that ride and bring tokenization more into the mainstream,” he said.

“We want to do it in that responsible investor-led way first, under the SEC rules themselves,” he added.

It was only in October that Robinhood CEO Vlad Tenev said that tokenization will “eventually eat the whole financial system.”

The crypto industry is divided on tokenized equities

Savarese emphasized that Nasdaq is aiming to be an innovator in the ecosystem, noting that the exchange was the first to transition markets from paper-based trading to electronic systems.

Related: DATs bring crypto’s insider trading problem to TradFi: Shane Molidor

Tokenizing stocks has been one of the most significant talking points in the crypto industry this year.

On Sept. 3, Galaxy Digital CEO Mike Novogratz said the company became the first Nasdaq-listed company to tokenize its equity on a major blockchain following its launch on the Solana network.

The conversation around tokenized equities has also drawn skepticism from the crypto industry.

On Oct. 1, Rob Hadick, general partner at crypto venture firm Dragonfly, told Cointelegraph that tokenized equities will be a significant benefit to traditional markets, but may not be a boon to the crypto industry as others have predicted.

Hadick said that if tokenized stocks use layer-2 networks, it creates “leakage” as value and may not flow back to Ethereum or the broader crypto ecosystem as much as hoped.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice