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House bill for State Department funding guts climate programs

House bill for State Department funding guts climate programs

E&E News14-07-2025
The House Republican bill to fund the State Department targets climate programs and includes a deep cut to a key environmental treaty.
The fiscal 2026 appropriations bill, released Monday, would zero out all funding to implement the Montreal Protocol, the major international treaty protecting the ozone layer.
The United States is not expected to withdraw from the agreement, which was ratified in 1987 by 197 countries. But the State Department's contributions in the past decades have provided significant funding to help enforce the ozone pollution standards domestically and in poorer countries.
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The new House bill has no funding for the international organizations and programs division, which includes the Montreal Protocol and other multilateral assistance programs.
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Europe reacts with mix of relief and concern to US trade deal
Europe reacts with mix of relief and concern to US trade deal

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time8 minutes ago

  • Yahoo

Europe reacts with mix of relief and concern to US trade deal

By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio

Dollar stablecoins threaten Europe's monetary autonomy, ECB blog argues
Dollar stablecoins threaten Europe's monetary autonomy, ECB blog argues

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Dollar stablecoins threaten Europe's monetary autonomy, ECB blog argues

FRANKFURT (Reuters) -The dollar's early dominance of stablecoins gives the U.S. an advantage that could ultimately push up borrowing costs for Europe, reduce the ECB's autonomy and increase geopolitical dependency on the U.S., an ECB blog post argued on Monday. Stablecoins, crypto assets pegged to a currency such as the dollar, have gained popularity in recent years and got a big boost earlier this month when U.S. President Donald Trump signed a law to create a regulatory regime, aimed at cementing the dollar's status as the global reserve currency. "Such dominance of the U.S. dollar would provide the United States with strategic and economic advantages, allowing it to finance its debt more cheaply while exerting global influence," ECB adviser Jürgen Schaaf said in a post that does not necessarily reflect the ECB's own views. "For Europe, this would mean higher financing costs relative to the United States, reduced monetary policy autonomy and geopolitical dependency," he added. If dollar-based stablecoins become widely used in the euro area, for payments, savings or settlement, the ECB's control over monetary conditions could be weakened, Schaaf argued. Dollar-pegged stablecoins issued by Tether and Circle have dominated the global market and the share of euro-denominated stablecoins remains marginal, with market capitalisation of less than 350 million euros, the blog post said. Europe should thus act quickly, creating the digital version of its euro currency, a project, that is being held up by legislative delays, and should foster the creation of more euro-based stablecoins. The EU should also foster the use of distributed ledger technology to speed up cheap cross-border payments, the blog argued. "Finally, stronger global coordination on stablecoin regulation is pivotal," the blog said. "If we forgo a common approach, we risk fuelling instability, regulatory arbitrage and global U.S. dollar dominance." Sign in to access your portfolio

Newsom responds to Trump's gutter politics
Newsom responds to Trump's gutter politics

Los Angeles Times

time10 minutes ago

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Newsom responds to Trump's gutter politics

SACRAMENTO — In fighting President Trump, Gov. Gavin Newsom reminds me of actor Gene Hackman's hard-nosed character in the movie 'Mississippi Burning.' Hackman plays a take-no-prisoners FBI agent, Rupert Anderson, who is investigating the disappearance of three young civil rights workers in racially segregated 1964 Mississippi. His partner and boss is stick-by-the-rules agent Alan Ward, played by Willem Dafoe. The 1988 film is loosely based on a true story. The two agents eventually find the victims' murdered bodies and apprehend the Ku Klux Klan killers after Anderson persuades Ward to discard his high-road rule book in dealing with uncooperative local white folks. 'Don't drag me into your gutter, Mr. Anderson,' Ward sternly tells his underling initially. Anderson shouts back: 'These people are crawling out of the SEWER, MR. WARD! Maybe the gutter's where we oughta be.' And it's where they go. Only then do they solve the case. Newsom contends Trump is playing gutter politics by pressuring Texas Gov. Greg Abbott and the GOP-controlled Legislature to redraw the state's U.S. House seats in an effort to elect five additional Republicans in next year's midterm elections. House seats normally are redrawn only at the beginning of a decade after the decennial census. Democrats need to gain just three net seats to retake control of the House and end the GOP's one-party rule of the federal government. Trump is trying to prevent that by browbeating Texas and other red states into gerrymandering their Democrat-held House districts into GOP winners. Republicans currently hold 25 of Texas' 38 House seats. Democrats have 12. In California, it's just the opposite — even more so. Out of 52 seats, Democrats outnumber Republicans 43 to 9, with room to make it even more lopsided. 'We could make it so that only four Republicans are left,' says Sacramento-based redistricting guru Paul Mitchell, vice president of Political Data Inc. Mitchell already is crafting potential new maps in case Newsom follows through with his threat to retaliate against Texas by redrawing California's districts to help Democrats gain five seats, neutralizing Republican gains in the Lone Star State. Newsom and the Legislature would be seizing redistricting responsibility from an independent citizens' commission that voters created in 2010. They took the task away from lawmakers because the politicians were acting only in their own self-interest, effectively choosing their own voters. As they do in Texas and most states, particularly red ones. But the governor and Democrats would be ignoring California voters' will — at least as stated 15 years ago. And Newsom would be down in the political gutter with Trump on redistricting. But that doesn't seem to bother him. 'They're playing by a different set of rules,' Newsom recently told reporters, referring to Trump and Republicans. 'They can't win by the traditional game. So they want to change the game. We can act holier than thou. We could sit on the sidelines, talk about the way the world should be. Or we can recognize the existential nature that is the moment.' Newsom added that 'everything has changed' since California voters banned gerrymandering 15 years ago. That's indisputable given Trump's bullying tactics and his inhumane domestic policies. 'I'm not going to be the guy that said, 'I could have, would have, should have,'' Newsom continued. 'I'm not going to be passive at this moment. I'm not going to look at my kids in the eyes and say, 'I was a little timid.'' Newsom's own eyes, of course, are on the White House and a potential 2028 presidential bid. He sees a national opportunity now to attract frustrated Democratic voters who believe that party leaders aren't fighting hard enough against Trump. Newsom continued to echo Hackman's script Friday at a news conference in Sacramento with Texas Democratic legislators. Referring to Trump and Texas Republicans, Newsom asserted: 'They're not screwing around. We cannot afford to screw around. We have to fight fire with fire.' But yakking about redrawing California's congressional maps is easy. Actually doing it would be exceedingly difficult. 'Texas can pass a plan tomorrow. California cannot,' says Tony Quinn, a former Republican consultant on legislative redistricting. Unlike in California, there's no Texas law that forbids blatant gerrymandering. California's Constitution requires redistricting by the independent commission. Moreover, a 1980s state Supreme Court ruling allows only one redistricting each decade, Quinn says. Trying to gerrymander California congressional districts through legislation without first asking the voters' permission would be criminally stupid. Newsom would need to call a special election for November and persuade voters to temporarily suspend the Constitution, allowing the Legislature to redraw the districts. Or the Legislature could place a gerrymandered plan on the ballot and seek voter approval. But that would be risky. A specific plan could offer several targets for the opposition — the GOP and do-gooder groups. In either case, new maps would need to be drawn by the end of the year to fit the June 2026 primary elections. Mitchell says polling shows that the independent commission is very popular with voters. Still, he asserts, 'there's something in the water right now. There's potential that voters will not want to let Trump run ramshackle while we're being Pollyannish.' 'The reality is that a lot of Democrats would hit their own thumb with a hammer if they thought it would hurt Trump more.' Mitchell also says that California could out-gerrymander Texas by not only weakening current GOP seats but by strengthening competitive Democratic districts. Texas doesn't have that opportunity, he says, because its districts already have been heavily gerrymandered. Democratic consultant Steve Maviglio says Newsom is 'trying to put the toothpaste back in the tube' and doubts it will work. 'Unilaterally disarming was a mistake. 'But Newsom's not wrong. They play hardball. We don't.' Newsom and California Democrats should fight Trump and Texas Republicans in the MAGA gutter, using all weapons available. As Hackman's character also says: 'Don't mean s— to have a gun unless you (sic) ready to use it.' The must-read: Texas Republicans aim to redraw House districts at Trump's urging, but there's a risk The TK: The Age-Checked Internet Has Arrived The L.A. Times Special: Trump's top federal prosecutor in L.A. struggles to secure indictments in protest cases Until next week,George Skelton —Was this newsletter forwarded to you? Sign up here to get it in your inbox.

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