Starmer says decision to increase defence spending was ‘accelerated’ by Trump taking office

Published

2 months ago

February 25, 2025

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Sir Keir Starmer has admitted his decision to increase defence spending was “accelerated” by Donald Trump taking office.

The prime minister said today’s announcement was “three years in the making” after Russia invaded Ukraine – but a “very changed context” pushed him forward.

Politics Live: PM warns ‘everything has changed’ after announcing defence spending boost

In a surprise Commons statement on Tuesday morning, Sir Keir said defence spending will increase to 2.5% of GDP by 2027, funded by a cut in the foreign aid budget.

While this honours a Labour manifesto commitment, ministers have previously been tight-lipped about when the new target would be reached – with today’s decision coming ahead of a meeting between Sir Keir and Mr Trump in Washington on Thursday.

Asked by Sky News political editor Beth Rigby if Mr Trump had “bounced” him into setting out a timeline, given he has long called for European countries to boost defence spending, the prime minister said: “I think in our heart of hearts, we’ve all known that this decision has been coming for three years, since the beginning of the conflict in Ukraine.

“The last few weeks have accelerated my thinking on when we needed to make this announcement.”

Analysis: Starmer has put Britain on a war footing ahead of key Trump meeting

However, he denied Mr Trump was effectively setting UK government policy, saying the defence spending increase is “very much my decision” and he has been “arguing for some time” that Europe and the UK “needed to do more”.

He said talks of “possible peace” and what that would mean for Europe’s security – with the potential for UK peacekeeping troops to be put on the ground – “has brought our response into sharp focus”.

“I have pushed our system to move this date forward because I think it’s vital that we take the decision now, that we rise to the occasion and we show the leadership that’s needed across Europe, in response to a very changed context,” he said.

The UK currently spends 2.3% of GDP on defence, with the jump to 2.5% meaning £13.4bn more will be spent annually on defence from 2027.

Sir Keir said he wants that figure to reach 3% of gross domestic product during the next parliament, but that would depend on Labour winning the next election.

Farage ‘fawning over Putin’

Asked if he is “Nigel Farage is disguise”, given the Reform UK leader has previously vowed to increase defence spending but cut the foreign aid budget, Sir Keir said: “Nigel Farage didn’t even turn up to the debate in parliament today. Nigel Farage is fawning over Putin. That’s not patriotism.

“What I’ve done is take the duty of the prime minister seriously, which is to ensure that our citizens are safe and secure.”

Mr Farage has previously faced criticism for saying the West provoked Russia’s invasion of Ukraine with NATO and the EU’s expansions, and for saying he admired Vladimir Putin as a statesman.

Sir Keir’s announcement comes as Europe reels from a shift in US foreign policy, with the White House making clear it is no longer prepared to bankroll the defence of other NATO members.

Last week also saw an exchange of words between Mr Trump and Ukrainian President Volodymyr Zelenskyy, after officials from Washington and Moscow held peace talks without anyone from Kyiv or Europe present.

‘Desertion of leadership’

Sir Keir announced the government would cut back on foreign aid to fund the increase, reducing current spending from 0.5% of GDP to 0.3% – in a move that has angered some charities.

Conservative leader Kemi Badenoch welcomed the measure and said she had written to the prime minister over the weekend to suggest how he could redirect money from the overseas development budget.

But former Tory defence secretary Ben Wallace said an extra 0.2% was “a staggering desertion of leadership”.

“Tone deaf to dangers of the world and demands of the United States,” he wrote on X.

“Such a weak commitment to our security and nation puts us all at risk.”

Politics

Solana’s Loopscale pauses lending after $5.8M hack

Published

6 hours ago

April 26, 2025

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<div>Solana's Loopscale pauses lending after .8M hack</div>

Solana decentralized finance (DeFi) protocol Loopscale has temporarily halted its lending markets after suffering an approximately $5.8 million exploit.

On April 26, a hacker siphoned approximately 5.7 million USDC (USDC) and 1200 Solana (SOL) from the lending protocol after taking out a “series of undercollateralized loans”, Loopscale co-founder Mary Gooneratne said in an X post.

The exploit only impacted Loopscale’s USDC and SOL vaults and the losses represent around 12% of Loopscale’s total value locked (TVL), Gooneratne added.

Loopscale is “working to resume repayment functionality as soon as possible to mitigate unforeseen liquidations,” its said in an X post.

“Our team is fully mobilized to investigate, recover funds, and ensure users are protected,” Gooneratne said.

Solana's Loopscale pauses lending after $5.8M hack — *Loopscale’s ‘Genesis’ lending vaults. Source: Loopscale*

In the first quarter of 2025, hackers stole more than $1.6 billion worth of crypto from exchanges and on-chain smart contracts, blockchain security firm PeckShield said in an April report.

More than 90% of those losses are attributable to a $1.5 billion attack on ByBit, a centralized cryptocurrency exchange, by North Korean hacking outfit Lazarus Group.

Unique DeFi lending model

Launched on April 10 after a six-month closed beta, Loopscale is a DeFi lending protocol designed to enhance capital efficiency by directly matching lenders and borrowers.

It also supports specialized lending markets, such as “structured credit, receivables financing, and undercollateralized lending,” Loopscale said in an April announcement shared with Cointelegraph.

Loopscale’s order book model distinguishes it from DeFi lending peers such as Aave that aggregate cryptocurrency deposits into liquidity pools.

Loopscale’s main USDC and SOL vaults yield APRs exceeding 5% and 10%, respectively. It also supports lending markets for tokens such as JitoSOL and BONK (BONK) and looping strategies for upwards of 40 different token pairs.

The DeFi protocol has approximately $40 million in TVL and has attracted upwards of 7,000 lenders, according to researcher OurNetwork.

Magazine: Ripple says SEC lawsuit ‘over,’ Trump at DAS, and more: Hodler’s Digest, March 16 – 22

Politics

US Senator calls for Trump impeachment, cites memecoin dinner

Published

9 hours ago

April 26, 2025

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US Senator calls for Trump impeachment, cites memecoin dinner

United States Senator Jon Ossoff expressed support for impeaching President Donald Trump during an April 25 town hall, citing the President’s plan to host a private dinner for top Official Trump memecoin holders.

“I mean, I saw just 48 hours ago, he is granting audiences to people who buy his meme coin,” said Ossoff, a Democrat, according to a report by NBC News.

“When the sitting president of the United States is selling access for what are effectively payments directly to him. There is no question that that rises to the level of an impeachable offense.”

Senator Ossoff said he “strongly” supports impeachment proceedings during a town hall in the state of Georgia, where he is running for reelection to the Senate.

The Senator added that an impeachment is unlikely unless the Democratic Party gains control of Congress during the US midterm elections in 2026. Trump’s own Republican Party currently has a majority in both the House of Representatives and the Senate.

Conflicts of interest

On April 23, the Official Trump (TRUMP) memecoin’s website announced plans for Trump to host an exclusive dinner at his Washington, DC golf club with the top 220 TRUMP holders.

The website subsequently posted a leaderboard tracking top TRUMP wallets and a link to register for the event. The TRUMP token’s price has gained more than 50% since the announcement, according to data from CoinMarketCap.

The specific guest list is unclear, but the memecoin’s website states that applicants must pass a background check, “can not be from a [Know Your Customer] watchlist country,” and cannot bring any additional guests.

On April 25, the team behind TRUMP denied social media rumors that TRUMP holders need at least $300,000 to participate in an upcoming dinner with the president.

“People have been incorrectly quoting #220 on the block explorer as the cutoff. That’s wrong because it includes things like locked tokens, exchanges, market makers, and those who are not participating. Instead, you should only be going off the leaderboard,” they wrote.

Law, Politics, Senate, Donald Trump, trumpcoin, Memecoin — *The TRUMP token jumped on news of the private dinner plans. Source:* *CoinMarketCap*

Legal experts told Cointelegraph that Trump’s cryptocurrency ventures, including the TRUMP memecoin and Trump-affiliated decentralized finance (DeFi) protocol World Liberty Financial, raise significant concerns about potential conflicts of interest.

“Within just a couple of days of him taking office, he’s signed a number of executive orders that are significantly going to affect the way that our crypto and digital assets industry works,” Charlyn Ho of law firm Rikka told Cointelegraph in February.

“So if he has a personal pecuniary benefit arising from his own policies, that’s a conflict of interest.”

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

Politics

Crypto sentiment recovers, but weekend liquidity risks remain

Published

12 hours ago

April 26, 2025

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Crypto sentiment recovers, but weekend liquidity risks remain

Crypto investor sentiment has seen a significant recovery from global tariff concerns, but analysts warn that the market’s structural weaknesses may still result in downside momentum during periods of weekend illiquidity.

Risk appetite appeared to return among crypto investors this week after US President Donald Trump adopted a softer tone, saying that import tariffs on Chinese goods may “come down substantially.”

However, the improved investor sentiment “does not guarantee that Bitcoin will avoid volatility over the weekend,” analysts from Bitfinex exchange told Cointelegraph:

“Sentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity.”

“Historically, weekends remain vulnerable to sharp moves — especially when open interest is high and market depth is low,” the analysts said, adding that unexpected macroeconomic news can still increase volatility during low liquidity periods.

Bitcoin (BTC) staged a near 11% recovery during the past week, but its rally has previously been limited by Sunday liquidity dynamics.

Bitcoin fell below $75,000 on Sunday, April 6, despite initially decoupling from the US stock market’s $3.5 trillion drop on April 4 after US Federal Reserve Chair Jerome Powell warned that Trump’s tariffs may affect the economy and raise inflation.

The correction was exacerbated by the lack of weekend liquidity and the fact that Bitcoin was the only large liquid asset available for de-risking, industry watchers told Cointelegraph.

“While improved sentiment creates a more stable foundation, cryptocurrency markets are still susceptible to rapid movements during periods of reduced trading volume,” according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm.

“The sentiment recovery provides some cushioning, but traders should remain cautious as weekend liquidity constraints can still amplify price movements regardless of the current market mood,” he told Cointelegraph.

Crypto investors may have “maxed out on tariff-related fears”

Cryptocurrency markets may have priced in the full extent of tariff-related concerns, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.

“It feels like we’ve maxed out on tariff-related fear,” she told Cointelegraph, adding:

“While many remain uncertain about where things are headed over the next month or so, it also seems like markets were just waiting for the slightest signal that we’re back in the game.”

“Whether the rally is sustainable depends on whether we can break through previous resistance levels, at least in isolation. It could have legs, as markets now seem to believe there’s a ‘Trump put’ under equities, the US dollar and US Treasurys,” Barthere added, warning of more potential volatility amid the upcoming negotiations.

Nansen previously predicted a 70% chance that crypto markets will bottom and start a recovery by June, but highlighted that the timing will depend on the outcome of tariff negotiations.

The tariff negotiations may only be “posturing” for the US to reach a trade agreement with China, which may be the “big prize” for Trump’s administration, according to Raoul Pal, founder and CEO of Global Macro Investor.