Can Europe stay competitive?
The best of POLITICO’s coverage selected by lead European editor Kate Day. Discover the most impactful stories in Europe and beyond.
By KATE DAY
Dear readers,
POLITICO’s Dasha Burns sat down with U.S. President Donald Trump (as we may have mentioned once or twice on our pages!) You can watch the full episode of Dasha’s show, The Conversation, here. Trump had scathing words for Europe, to which European Commission President Ursula von der Leyen offered a defense of Europe’s democratic sovereignty at our annual POLITICO 28 gala dinner.
At the same dinner, Trump’s top envoy to the EU, Andrew Puzder, put forward a response to Trump’s critique: “Wouldn’t it be great if this part of the world, instead of deciding it was going to be the world’s regulator, decided once again to be the world’s innovators?”
How Europe stays competitive is a key question animating many of our debates across our European newsroom teams as the year draws to a close. How far will Europe go to support Ukraine — or are European leaders all talk as Trump alleges?
How does the EU get to a budget — its catchily titled “Multiannual Financial Framework” — and what are the trade-offs? Does von der Leyen manage to successfully cut back regulation in a bid to make the continent more competitive? Or do her various “simplification” measures run into the political mud? Can the continent galvanize around policies intended to encourage the public sector to “buy European” or foster “tech sovereignty” to control its own digital infrastructure? And is 2026 the year the EU finally cracks a capital markets union?
The U.K. also faces a similar set of questions. Does it hug Europe closer in an attempt to reboot its stagnating economy or tack closer to Trump? With Nigel Farage riding high in the polls and Prime Minister Keir Starmer struggling to tackle a flat-lining economy, broken public services and a politically frustrated electorate, can his government assert itself or is it rendered weak and directionless?
Questions there are many. A handful of industry leaders had proposed answers at our POLITICO 28 dinner, accompanied by alarming statistics that paint a picture of market fragmented by complex regulation and a scarcity of talent. Who can navigate the complex politics required to seize any of them is less clear. We will be watching with interest.
Wishing you all an excellent weekend,
Kate Day
EDITOR’S CHOICE
Trump thrashes European leaders in wide-ranging interview: ‘I think they’re weak’
Exclusive: In an interview with POLITICO, the president offered no reassurance to America’s allies about Russia and vowed to reshape their politics. Read the story.
Don’t meddle in European democracy, von der Leyen tells Trump
Exclusive: Donald Trump should not get involved in European democracy, Ursula von der Leyen told our Brussels Executive Editor Carrie Budoff Brown on stage at this week’s POLITICO 28 gala dinner. Read the story.
POLITICO 28: The most powerful people shaping European politics and policy in the year ahead
Each year we debate the most powerful people shaping Europe. This year President Donald Trump’s influence was undeniable. Read the full list.
The POLITICO Poll: Trump dominates democracy in Europe
New: The POLITICO poll, conducted in partnership with Public First, across five countries, suggested voters found Trump’s election more significant than that of their own national leaders. Read the story.
EU heavyweight Italy joins Belgium in opposing Russian frozen assets plan
Exclusive: Italy is throwing its weight behind Belgium in opposing the EU’s plan to send €210 billion of Russia’s frozen state assets to Ukraine, according to an internal document seen by POLITICO. Read the story.
EU officials acted to aid tobacco giant abroad, documents show
Exclusive: The EU’s actions were a “great help” to Philip Morris International, a company representative wrote to European Commission staffers in an email. Read the story.
Britain’s Brexit point man says no to rejoining EU customs union
Exclusive: Nick Thomas-Symonds defended a decision to keep the U.K. out of the EU’s customs union — despite sounding bullish on a speedy reset of ties with the bloc in the first half of 2026. Read the story.
YOUR WEEKEND PLAYLIST
EU Confidential: Von der Leyen vs. Trump: Europe answers back
He’s not even European — yet Donald Trump has topped POLITICO’s annual P28 ranking of the most powerful people who will shape Europe in 2026.
EU Confidential host Sarah Wheaton takes you inside the gala in Brussels — packed with commissioners, MEPs, diplomats, lobbyists and journalists — where the mood felt unusually tense.
At the event, Ursula von der Leyen sat down with Carrie Budoff Brown, POLITICO’s executive editor, for an exclusive on-stage conversation — offering one of her first public reactions to Trump’s sharp criticism of EU leaders as “weak” and to Washington’s dramatic new security strategy, which seeks to undermine them.Be sure to check out the full 2026 ranking here.
Plus, we bring you: Sarah’s conversation with Balázs Orbán, the Hungarian prime minister’s political director; a taste of Anne McElvoy’s interview with Nick Thomas-Symonds, the U.K.’s minister for European relations. And, if you haven’t heard it yet, listen to the exclusive interview our colleague Dasha Burns did with Donald Trump on our sister podcast The Conversation.
Listen to the episode.
Westminster Insider: Spin, half-truth or deceit? How political lies really work
Lying in politics is nothing new, but after the budget, Rachel Reeves’ extraordinary pitch-rolling was viewed by some as an outright lie and others as justifiable spin. Inspired by this grey area, host Sascha O’Sullivan tries to find out the difference.
BBC Radio 4 Presenter Nick Robinson tells Sascha how he can spot when a politician is lying. Former Keir Starmer Political Director Luke Sullivan says Rachel Reeves was “absolutely not” lying in the run-up to the budget … and explains how Starmer made the most of Boris Johnson-era scandals and accusations of lies. Craig Oliver, David Cameron’s former director of communications, rehashes the fibs told during the Brexit referendum.
And Sascha speaks to Mark Harper, a minister who fessed up and resigned as immigration minister after discovering his cleaner did not have the right to work in the U.K. Harper lost his job, but was welcomed back months later.
Summing up, Full Fact Chief Executive Officer Chris Morris describes the difficulty in distinguishing between outright lies and spin in politics — when, so often, half-truths are wrapped in narrative. Listen to the episode.
DECLASSIFIED
Read this week’s Declassified column.
Caption competition
““Guys, we practiced this, it’s high-five, fist bump, jazz hands.”
Can you do better? Email us at [email protected] or get in touch on X @POLITICOEurope.
Last week, we gave you this photo:
Thanks for all the entries. Here’s the best from our postbag — there’s no prize except for the gift of laughter, which I think we can all agree is far more valuable than cash or booze.
“Look, if I were you I would take over Pakistan.“
by Albrecht Rothacher
SUBSCRIBE to the POLITICO newsletter family: Brussels Playbook | London Playbook | London Playbook PM | Playbook Paris | EU Election Playbook | Berlin Playbook | Global Playbook | POLITICO Confidential | Sunday Crunch | EU Influence | London Influence | Berlin Bulletin | Living Cities | D.C. Playbook | D.C. Influence | All our POLITICO Pro policy morning newsletters
