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Starmer hails ‘real progress' made during White House summit on Ukraine war

Starmer hails ‘real progress' made during White House summit on Ukraine war

The Prime Minister was one of several European leaders, including Ukrainian President Volodymyr Zelensky, French President Emmanuel Macron and Nato secretary general Mark Rutte, in attendance for the discussions in Washington on Monday.
US President Donald Trump said he spoke directly with Vladimir Putin to begin planning a meeting between the Russian leader and Mr Zelensky, which will then be followed by a three-way meeting involving himself.
He also said Moscow will 'accept' multinational efforts to guarantee Ukraine's security.
Speaking after the event, Sir Keir described the talks as 'good and constructive', adding: 'There was a real sense of unity between the European leaders that were there, and president Trump and president Zelensky'.
The Prime Minister highlighted 'two material outcomes' from the talks, firstly that the coalition of the willing 'will now work with the US' on security guarantees.
'That's really important for security in Ukraine, for security in Europe, and for security in the UK,' Sir Keir said.
'The other material outcome was the agreement that there will now be a bilateral agreement between president Putin and president Zelensky, that was after a phone call between president Trump and president Putin during the course of this afternoon, followed by a trilateral which will then add in president Trump.
'That is a recognition of the principle that on some of these issues, whether it's territory or the exchange of prisoners, or the very serious issue of the return of children, that is something where Ukraine must be at the table.
'These were the two outcomes that were the most important coming out of today. They're positive outcomes, there was a real sense of unity. We've made real progress today.'
Posting on his Truth Social platform after the meeting, Mr Trump also described the talks as 'very good', adding: 'During the meeting we discussed security guarantees for Ukraine, which guarantees would be provided by the various European countries, with a coordination with the United States of America.
'Everyone is happy about the possibility of PEACE for Russia/Ukraine.
'At the conclusion of the meetings, I called president Putin and began arrangements for a meeting, at a location to be determined, between president Putin and president Zelensky.
'After the meeting takes place, we will have a trilat which would be the two presidents plus myself.'
Before the White House talks, the US president said he would 'probably' be able to find common ground with the leaders on a plan to ward off future attacks on Ukraine.
He previously met with Mr Putin in Anchorage, Alaska, on Friday, where he declared there was 'no deal until there's a deal' to end more than three years of fighting in eastern Europe.
'The Alaska summit reinforced my belief that while difficult, peace is within reach and I believe, in a very significant step, President Putin agreed that Russia would accept security guarantees for Ukraine,' Mr Trump said on Monday.
'And this is one of the key points that we need to consider.'
He later said: 'We also need to discuss the possible exchanges of territory taken into consideration the current line of contact.'
Mr Trump's envoy, Steve Witkoff, had suggested measures similar to Nato's article five mutual defence provision – that an attack on one member is an attack on the entire bloc – could be offered by the US without Kyiv joining the alliance.
'We were able to win the following concession: that the United States could offer article five-like protection, which is one of the real reasons why Ukraine wants to be in Nato,' Mr Witkoff told CNN over the weekend, as he spoke about the Alaska summit.
Future three-way talks 'have a good chance' of stopping the conflict, the US president claimed.
But the president appeared to share conflicting views on whether a ceasefire was necessary to stop the war.
'I don't think you need a ceasefire,' he had originally said, before later explaining that, 'all of us would obviously prefer an immediate ceasefire while we work on a lasting peace'.
During the discussions, Sir Keir welcomed plans for a security guarantee, after Mr Trump introduced him at the negotiating table as a 'friend' on Monday.
He said: 'Your indication of security guarantees, of some sort of article five-style guarantees, fits with what we've been doing with the coalition of the willing which we started some months ago, bringing countries together and showing that we were prepared to step up to the plate when it came to security.
'With you coming alongside, the US alongside, what we've already developed, I think we could take a really important step forward today – a historic step, actually, could come out of this meeting in terms of security for Ukraine and security in Europe.'
Sir Keir also described potential future trilateral talks as appearing to be a 'sensible next step' and continued: 'So, thank you for being prepared to take that forward, because I think if we can ensure that that is the progress out of this meeting – both security guarantees and some sort of progress on (a) trilateral meeting of some sort to bring some of the difficult issues to a head – then I think today will be seen as a very important day in recent years.'
The PA news agency understands the Prime Minister disrupted his holiday plans over the weekend to join calls, including with Mr Trump and Mr Zelensky, before he headed to Washington, as reported in The Times.
Following the talks, Mr Trump said he also discussed 'the massive worldwide problem of missing children' with European Commission President Ursula von der Leyen.
Responding on X, Mr Zelensky said: 'This issue lies at the heart of the war's humanitarian tragedy – our children, broken families, the pain of separation. At least 20,000 children were taken.
'We are working tirelessly to bring every child home. The same applies for our prisoners of war and civilians held in Russia for years, some since 2014, in very bad conditions. Thousands of people still need to be freed – and this is a part of making peace.
'We will work to negotiate all-for-all prisoners of war exchange, and we are grateful to have strong friends who help.'
Mr Zelensky, whom Mr Trump greeted at the door of the West Wing with a handshake earlier in the evening, wore a black shirt with buttons and a black blazer to the meeting at the White House.
His attire had appeared to become a point of irritation for Mr Trump during a previous meeting in February.
Early in the meeting, the Ukrainian described the talks as 'really good', saying they had been 'the best' so far.
Mr Zelensky said: 'We are very happy with the president that all the leaders are here and security in Ukraine depends on the United States and on you and on those leaders who are with us in our hearts.'
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Starmer hails ‘breakthrough' on security guarantees after Ukraine talks
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The Prime Minister was one of several European leaders, including French President Emmanuel Macron and Nato secretary general Mark Rutte, who travelled to Washington on Monday as Volodymyr Zelensky held talks with the US President. Sir Keir said work with the US on what the security guarantees would entail could start as soon as Tuesday. 'The two outcomes were a real significant breakthrough when it comes to security guarantees, because we're now going to be working with the US on those security guarantees,' he told the BBC. 'We've tasked our teams, some of them are even arriving tomorrow, to start the detailed work on that.' The Prime Minister will co-chair a call on Tuesday morning of the so-called 'coalition of the willing', a group of nations looking to help Ukraine that he has been leading with Mr Macron. Mr Trump said he had spoken directly with Vladimir Putin to begin planning a meeting between the Russian leader and Mr Zelensky, which will then be followed by a three-way meeting involving himself. The US president said Moscow will 'accept' multinational efforts to guarantee Ukraine's security. Mr Zelensky, meanwhile, said he was 'ready' for bilateral and trilateral meetings. But he told reporters following the White House meeting that if Russia does 'not demonstrate a will to meet, then we will ask the United States to act accordingly'. Nato Secretary General Mark Rutte said the US and Europe would 'do more' on tariffs and sanctions against Russia if the country 'is not playing ball' on direct talks with Ukraine, in comments to Fox News. Sir Keir described the talks as 'good and constructive' and said there was a 'real sense of unity' between the European leaders, Mr Trump and Mr Zelensky. He said Mr Trump's plans to arrange the bilateral and trilateral meetings showed a recognition that Ukraine must be involved in talks. 'That is a recognition of the principle that on some of these issues, whether it's territory or the exchange of prisoners, or the very serious issue of the return of children, that is something where Ukraine must be at the table.' Mr Trump called the talks 'very good'. 'During the meeting we discussed security guarantees for Ukraine, which guarantees would be provided by the various European countries, with a co-ordination with the United States of America,' he posted on his Truth Social platform. 'Everyone is happy about the possibility of PEACE for Russia/Ukraine. 'At the conclusion of the meetings, I called president Putin and began arrangements for a meeting, at a location to be determined, between president Putin and president Zelensky. 'After the meeting takes place, we will have a trilat which would be the two presidents plus myself.' The US president met with Mr Putin in Anchorage, Alaska, on Friday, where he declared there was 'no deal until there's a deal' to end more than three years of fighting in eastern Europe. 'The Alaska summit reinforced my belief that while difficult, peace is within reach and I believe, in a very significant step, President Putin agreed that Russia would accept security guarantees for Ukraine,' he said on Monday. 'And this is one of the key points that we need to consider.' He later said: 'We also need to discuss the possible exchanges of territory taken into consideration the current line of contact.' Future three-way talks 'have a good chance' of stopping the conflict, the US president said. But he appeared to share conflicting views on whether a ceasefire was necessary to stop the war. 'I don't think you need a ceasefire,' he originally said, before later explaining that, 'all of us would obviously prefer an immediate ceasefire while we work on a lasting peace'. Mr Trump's envoy, Steve Witkoff, had suggested over the weekend that measures similar to Nato's article five mutual defence provision – that an attack on one member is an attack on the entire bloc – could be offered by the US without Kyiv joining the alliance. Sir Keir welcomed plans for 'article five-style guarantees' during Monday's talks and said that they would fit with the work of his coalition of the willing group of countries. He said to Mr Trump: 'Your indication of security guarantees, of some sort of article five-style guarantees, fits with what we've been doing with the coalition of the willing, which we started some months ago, bringing countries together and showing that we were prepared to step up to the plate when it came to security. 'With you coming alongside, the US alongside, what we've already developed, I think we could take a really important step forward today – a historic step, actually, could come out of this meeting in terms of security for Ukraine and security in Europe.' Sir Keir also described potential future trilateral talks as a 'sensible next step'. The PA news agency understands the Prime Minister disrupted his holiday plans over the weekend to join calls, including with Mr Trump and Mr Zelensky, before he headed to Washington, as reported in The Times. Mr Zelensky, whom Mr Trump greeted at the door of the West Wing with a handshake earlier in the evening, wore a black shirt with buttons and a black blazer to the meeting at the White House. His attire had appeared to become a point of irritation for Mr Trump during a previous meeting in February. Early in the meeting, the Ukrainian described the talks as 'really good', saying they had been 'the best' so far. 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NEW YORK, Aug 19 (Reuters) - As U.S. debt swells and the White House leans on the Federal Reserve to cut interest rates, investors are weighing the risk of "fiscal dominance," a scenario where keeping government financing cheap eclipses the fight against inflation. A budget bill passed last month by the Republican-controlled Congress is set to pile trillions onto the swelling U.S. debt load - raising the cost of servicing that debt. U.S. President Donald Trump has meanwhile made explicit calls for the Fed to cut rates, in part to lower the U.S. government's interest costs. The White House's pressure campaign has raised concerns that the administration wants the Fed to return to a bygone era when it kept rates low in order to allow for lower-cost borrowing. "(Fiscal dominance) is a concern ... There are risks on the horizon, both from the perspective of increasing debt loads and the probability for higher structural inflation, or at minimum, more volatility of inflation," said Nate Thooft, chief investment officer for equity and multi-asset solutions at Manulife Investment Management. "The reason why the Trump administration and politicians in general ... would like to see lower rates, is because it actually requires lower rates to be able to afford the debt levels that we have outstanding," he said. The U.S. experienced fiscal dominance during and shortly after World War Two, when the Fed was required to keep interest rates low for the war borrowing effort. The inflation spike that followed led to the 1951 Treasury-Fed accord that restored central bank independence. High long-term Treasury yields and a sliding dollar already reflect that economic setup, some analysts say, as investors require more compensation to hold U.S. assets that could lose value if inflation rises. 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Some investors argue fiscal dominance lies on an uncertain horizon, with rising debt yet to trigger unsustainable interest rates, while others see it already seeping into markets as long-term yields remain elevated even amid expectations of Fed rate cuts. White House spokesperson Kush Desai said the Trump administration respects the Fed's independence, but that, with inflation having come down significantly from its highs in recent years, Trump believes it's time to reduce rates. The U.S. central bank so far has resisted those demands, though it is expected to lower borrowing costs at its September 16-17 meeting. It declined to comment on this story. The dollar is down about 10% this year against a basket of major currencies while Treasury term premiums - the extra compensation investors demand for holding long-term debt - are high, even as yields have recently dipped amid slowing economic growth. "It's difficult to be bullish (on) long bonds in this environment," said Oliver Shale, an investment specialist at Ruffer, citing government spending that could keep inflation elevated and erode bond values. "If you have an economy that's running above its natural output, that's going to result in inflation or have important implications for inflation, interest rates, and probably the currency," he said. Thooft at Manulife said he was bearish on long-dated Treasuries as higher inflation would require higher term premiums. Despite years of economic growth, U.S. deficits have continued to balloon. Debt now stands at more than 120% of GDP, higher than after World War Two. The Fed normally manages inflation while Congress maintains fiscal discipline. That balance inverts under the fiscal dominance scenario, with inflation driven by fiscal policies and a Fed trying to manage the debt burden, said Eric Leeper, an economics professor at the University of Virginia. "The Fed cannot control inflation and keep interest payments on the debt low. Those are in conflict," Leeper said. One red flag for investors is the narrowing gap between interest rates and economic growth. Benchmark 10-year yields have hovered around 4.3% in recent weeks, while nominal GDP grew at an annual rate of 5.02% in the second quarter. When interest rates exceed the growth rate, debt as a percentage of gross domestic product typically rises even without new borrowing, making the debt increasingly unsustainable. "Risks to Fed independence stemming from fiscal dominance are high," Deutsche Bank analysts said in a recent note, citing high deficits and long-term rates close to nominal GDP growth. History offers cautionary tales. Extreme fiscal dominance triggered hyperinflation in Germany in the early 1920s and in Argentina in the late 1980s and early 2000s. More recently in Turkey, pressure on the central bank to keep interest rates low undermined policy credibility and fueled a currency crisis. A majority of economists polled by Reuters last month said they were worried the Fed's independence was under threat. Despite a barrage of criticism from Trump and administration officials, Powell has vowed to remain Fed chief until his term expires in May 2026. "It seems relatively clear that whoever is nominated for the seat, regardless of whatever views they've espoused in the past, is likely to articulate a dovish bias in order to be nominated," said Amar Reganti, a fixed income strategist at Hartford Funds and former Treasury official. Lower interest rates, however, might only be a temporary fix. The administration may be hoping to "juice nominal growth," despite the risk of creating higher inflation, to get to a place where real growth makes the debt trajectory sustainable, said Brij Khurana, a fixed income portfolio manager at Wellington. 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