Latest news with #ReArmEuropePlan
CNBC
22-05-2025
- Business
- CNBC
U.S. tariffs pose a 'real challenge' to Europe, Barclays CEO says
Washington's protectionist trade policies are posing a "real challenge" to European nations as they seek to raise their security contributions, according to Barclays CEO C. S. Venkatakrishnan. "I think Europe has a real challenge in adjusting to tariffs. It's got to find space, fiscal space, to increase defense spending, and it's got to look at consolidation in financial institutions, in within its market," the executive told CNBC's Steve Sedgwick on Thursday. The European Union currently faces a 25% U.S. import tariff on its steel, aluminum and cars and was in April struck with an additional 20% "reciprocal" levy under the White House's fresh wide-spanning trade policies. The latter duty has been temporarily reduced to 10% during a 90-day reprieve that expires in July, paving the way for Washington and the 27-member European bloc to join the negotiations table for a more favorable trade agreement. A deal has yet to be struck, with markets mired in uncertainty and with concerns mounting over the EU's economic growth outlook and potential inflationary and recessionary risks in the world's largest economy. The trade developments affecting the two historically allied nations have cast a shadow on the EU's efforts to overhaul its fiscal policies and galvanize defense spending under the bloc's "ReArm Europe Plan." The volatility has encumbered companies that seek to understand the impact of tariffs and regulation on their business model, Barclays' Venkatakrishnan said. "You can look at the companies that have withdrawn earnings guidance over the year, and those are the industries that are more deeply affected. And there, they might decide — not now, but over time — that there needs to be further consolidation or further rewiring of their business models," he said. "And then activity will increase, and we can help them. And then there are others who are ... taking advantage of the relative calm to continue to expand their businesses." British bank Barclays has had a notable presence stateside since absorbing the investment banking and capital markets businesses of collapsed Wall Street titan Lehman Brothers for $1.75 billion. The lender is navigating calmer seas at home, after Trump unveiled the broad outline of a U.S.-U.K. trade deal earlier this month and Britain scored another major win earlier this week through an agreement to reset its relationship with the EU after departing the bloc in 2020. Still, U.K. Prime Minister Keir Starmer's Labour administration must battle the dragon of surging inflation and public skepticism over Finance Minister Rachel Reeves' planned tax increases. A vocal Reeves supporter, Venkatakrishnan on Thursday said the current government remains "absolutely" on track with its economic steps and outlined the hurdles before the British economy: "We're not seeing consumer distress. We're in fact, seeing conduit continued consumer strength, but it's coming because of people managing their balances and their finances prudently. So economizing. The job market is still strong," he said. "But, as you see, even in the last couple of days, people are worried about inflation. People are worried about cost, whether it's winter fuel bills or whether it's more generalized inflation from tariffs, and the only real answer to that is growth."
Global News
21-05-2025
- Business
- Global News
U.S. Golden Dome among ‘options' for Canada's defence, Carney says
Prime Minister Mark Carney said Wednesday that Canada is reversing the trend of 'deep integration' with the U.S. and exploring all options for strengthening its national defence — which include U.S. President Donald Trump's 'Golden Dome' missile defence concept. The Prime Minister's Office confirmed Tuesday that the federal government's talks with the U.S. about a new economic and security partnership 'naturally include strengthening NORAD and related initiatives such as the Golden Dome,' after Trump unveiled plans for the proposed system. That's despite Carney repeatedly warning of the 'threat' the U.S. poses to Canada's economy and sovereignty under Trump, which the prime minister told reporters Wednesday is still true today. 'We had for almost half a century, we as Canada, a relationship with the Americans which was a steady process of deepening integration' on security and between the two nations' economies, Carney said after a cabinet planning forum in Chelsea, Que. Story continues below advertisement 'That process of deepening integration is over. We are in a position now where we co-operate when necessary, but not necessarily co-operate.' Carney cited talks with European allies on becoming a full partner in the ReArm Europe Plan for continental defence, as well as the ongoing review of the F-35 contract, as examples of Canada looking beyond the U.S. for 'other options.' Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'You will see a very different set of partnerships, security and economic going forward,' he said. 'But to be absolutely clear: when it is in Canada's interests, (its) first best interest to co-operate with the Americans, to strike deals with Americans relations, and particularly in examples like ballistic missile defence, that may be the best option. And if so, we will pursue that.' 1:26 China slams Trump's 'Golden Dome', says it risks an arms race Canada doesn't have a ballistic missile defence program, after declining to join a U.S. system two decades ago. It monitors other missile and aerial threats alongside the U.S. through NORAD, but does not have shootdown authority for more complex threats like ballistic or intercontinental ballistic missiles. Story continues below advertisement Defence policy experts and military officials told parliamentarians in 2023 that the threats posed by Russia and China have evolved past ballistic missiles, and require new integrated air and missile defence systems to counter. Last year's defence policy update committed to an investment in integrated air and missile defence. Before the federal election, Carney committed $6 billion to acquiring over-the-horizon radar systems from Australia to detect threats in the Arctic. The systems will be part of Canada's $40-billion NORAD modernization project, which has been ongoing for years. Carney said missile defence is just one example 'where it can make sense' for Canada to continue partnering with the U.S., along with the auto sector. Intergovernmental Affairs Minister Dominic LeBlanc, who also serves as minister responsible for Canada-U.S. trade, is currently in Washington meeting with American counterparts on strengthening those and other relationships. 'But not all elements of our economic relationship or security relationships does it make sense, and we are actively and aggressively pursuing alternatives,' he said. Carney said both next week's Speech from the Throne, to be delivered by King Charles III, and his government's first budget to be tabled this fall will lay out Canada's plan for reinvesting in national defence. That will include steps to meet Canada's commitments to NATO, which asks its members to spend at least two per cent of GDP on defence. Carney has said he plans to hit that target by 2030.
Yahoo
12-05-2025
- Business
- Yahoo
Part of €800bn EU rearmament plan to be spent on procurement for Ukraine's forces
European Commissioner for Defence Andrius Kubilius has confirmed that under the €800 billion ReArm Europe Plan, part of the funds will be directed towards military support for Ukraine. Source: Kubilius in an interview with European Pravda Details: Kubilius explained that the ReArm Europe Plan consists of two major components: €650 billion in projected increases in defence spending by EU member states and €150 billion in loans allocated for defence procurement. Quote from Kubilius: "€150 billion is loans, which member states only can take, but they can use those loans for joint procurement with Ukraine. Even procuring from the Ukrainian industry for Ukrainian needs." Kubilius stressed that for the first time, Ukraine's industry "is treated equally with European defence industries". Quote from Kubilius: "And from those €650 billion for national defence spending, part of this money can also be spent on more weapons for Ukraine. It's up to the member states." Background: During the emergency EU defence summit on 6 March, all EU leaders, including Hungarian PM Viktor Orbán, unanimously approved the ReArm Europe Plan. Kubilius outlined the priorities of the EU's defence policy, including investing in its own defence capabilities and reducing dependence on the United States. Support Ukrainska Pravda on Patreon!
Russia Today
24-04-2025
- Politics
- Russia Today
Western aggression could trigger Russian nuclear response
Moscow reserves the right to launch a nuclear strike in response to Western military aggression, Sergey Shoigu, secretary of Russia's National Security Council, has warned, citing last year's amendments to the country's nuclear doctrine. The warning comes amid discussions in Western Europe about a possible deployment of troops to Ukraine as part of a potential peace deal, as well as militarization plans in the EU. According to the Russian security chief, Moscow 'is closely monitoring the military preparations of the EU countries.' Nuclear weapons may be used 'in the event of aggression' against Russia or Belarus, even in response to attacks with conventional weapons, Shoigu said an interview with TASS on Thursday. He also noted calls by France and the UK for troop deployments to Ukraine following a possible ceasefire. Moscow has repeatedly warned against such steps, saying that unauthorized military personnel in Ukraine would be regarded as legitimate targets. Shoigu reiterated to TASS that the presence of foreign troops in Ukraine could provoke a direct confrontation between Russia and NATO, potentially escalating into a nuclear war. Moscow updated its nuclear doctrine last November following deliberations by Ukraine's backers on whether to allow Kiev to use Western-supplied long-range missiles to strike targets deep inside Russia. Russian President Vladimir Putin expanded the list of conditions that could trigger a nuclear response. These include scenarios where aggression by a non-nuclear state or group of states, supported by a nuclear state, could be viewed as a 'joint attack.' Ukrainian forces have since conducted multiple long-range strikes deep into Russian territory using Western-supplied arms. The nuclear doctrine, however, describes nuclear weapons as 'an extreme and forced measure' and stresses Moscow's goal to prevent tensions. Despite the ongoing peace process in the Ukraine conflict mediated by US President Donald Trump, the EU has pledged to continue to provide weapons to Kiev and has taken steps to militarize itself, including by approving the €800 billion ($910 billion) 'ReArm Europe Plan'.
Yahoo
03-04-2025
- Business
- Yahoo
Poland wants to spend 5% of GDP on defence in 2026, minister says
WARSAW (Reuters) - Poland wants to spend 5% of gross domestic product (GDP) on defence in 2026, Defence Minister Wladyslaw Kosiniak-Kamysz said on Thursday after a European Union defence ministers meeting in Warsaw. Galvanised by Russia's invasion of neighbouring Ukraine three years ago, Poland now spends a higher proportion of GDP on defence than any other NATO member, including the United States. It plans for this year's spending to hit 4.7% of GDP. During the summit, ministers discussed a "White Paper for European Defence – Readiness 2030," aimed at providing a framework for the ReArm Europe Plan and to outline a new defence strategy. "All ministers... emphasized the importance of this document, the White Paper," Kosiniak-Kamysz told reporters. "We must be ready for the most difficult scenarios and we must be strong enough to prevent war from breaking out... This is an action to make us so strong that it would not be profitable for any country to attack the European Union or NATO."
