{"id":32517,"date":"2025-06-25T05:07:45","date_gmt":"2025-06-25T05:07:45","guid":{"rendered":"https:\/\/financialrush.com\/?p=32517"},"modified":"2025-06-25T05:07:45","modified_gmt":"2025-06-25T05:07:45","slug":"why-nato-fears-the-worst-as-trump-decides-on-us-support-for-europe","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=32517","title":{"rendered":"Why Nato fears the worst as Trump decides on US support for Europe"},"content":{"rendered":"

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This article is an on-site version of our Europe Express newsletter. Premium subscribers can sign up here<\/a> to get the newsletter delivered every weekday and fortnightly on Saturday morning. Standard subscribers can upgrade to Premium here<\/a>, or explore<\/a> all FT newsletters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Good morning. A scoop to start: European governments should buy equity in clean tech companies instead of handing out subsidies, the EU\u2019s competition chief Teresa Ribera has told the Financial Times<\/a>, while rejecting the \u201cbuy European\u201d narrative pushed by some of her fellow commissioners.<\/p>\n

Today, I explain why Nato allies are petrified about what Donald Trump might decide today on the US\u2019s long-term promise to defend Europe, while my colleagues have more from Ribera warning about the watering down of the EU\u2019s green ambitions.<\/p>\n

Judgment day<\/h3>\n

For five months, European Nato allies have bent over backwards<\/a> to give US President Donald Trump what he wants in order to secure continued US commitment to the continent\u2019s defence. Today they will find out if it worked<\/a>.<\/p>\n

Context: Trump has demanded Nato allies spend 5 per cent of GDP on defence or risk losing US security protections. Nato\u2019s Article 5 clause mandates that an attack on one member is an attack on all.<\/p>\n

Nato leaders gather in The Hague today, with many fearing Trump could tear up<\/a> eight decades of US protection for Europe at a time when many countries feel threatened by Russia.<\/p>\n

The US commander-in-chief yesterday said there were \u201cnumerous definitions\u201d of the promise to defend an ally in case of an attack. \u201cI\u2019m going to give you an exact definition when I get there,\u201d Trump added.<\/p>\n

Trump has long railed against European Nato allies not spending enough on defence and \u201cfreeloading\u201d on US military might. In response to that, today\u2019s summit is focused on pledging that this will change: a promise that all allies will spend 5 per cent of GDP on defence by 2035.<\/p>\n

Notwithstanding Spain\u2019s refusal to sign up to that pledge<\/a>, Europe has delivered what Trump asked<\/a>. Hence the deep fear that regardless of what they do, he will hang European capitals out to dry.<\/p>\n

\u201cPresident Trump\u2019s comments calling into question the very definition of Nato\u2019s Article 5 collective defence guarantee is a bad signal to our adversaries, and an even worse one to our allies,\u201d said Torrey Taussig, former director of European affairs at the White House National Security Council.<\/p>\n

One European official was more blunt: \u201cWe gave him what he wanted, and now he\u2019s screwing us anyway.\u201d<\/p>\n

Chart du jour: Home from home<\/h2>\n
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Ukrainians fleeing the war with Russia have found jobs more easily than other refugees<\/a>, thanks to their \u201ctemporary protection\u201d status in the EU, coupled with many countries desperately seeking workers.<\/p>\n

Green gripes<\/h3>\n

The EU cannot keep watering down its climate ambitions, EU climate and competition chief Teresa Ribera tells <\/strong><\/em>Barbara Moens<\/strong><\/em><\/a> and <\/strong><\/em>Alice Hancock<\/strong><\/em><\/a>.<\/strong><\/em><\/p>\n

Context: The bloc will present legislation next week setting out how the EU can cut emissions by 90 per cent until 2040, compared with 1990 levels. The European Commission first committed to that target last year in a very different context, but did not set out how to actually reach it.<\/p>\n

Almost 18 months later, the 90 per cent goal has become politically toxic as some EU governments \u2014 and the commission itself<\/a> \u2014 have become less keen on climate policy amid the bloc\u2019s economic woes.<\/p>\n

Many capitals are pushing to make the target more flexible, for instance allowing countries to count the negative emissions of carbon capture, or international carbon credits, which let companies pay for their emissions. Some also want to let faster-moving sectors account for more emissions reductions, and let struggling sectors decarbonise more slowly.<\/p>\n

In an interview with the FT, Ribera said that flexibilities were fine \u201cto the extent that this does not undermine or water down what we need to do\u201d.<\/p>\n

She said the key was to be \u201cconsistent, comprehensive and not watered down to the extent that we cannot recognise a clear pathway\u201d.<\/p>\n

Including international carbon credits \u2014 something the EU\u2019s scientific advisory board has explicitly advised against<\/a> \u2014 was \u201cintellectually sound and politically sound,\u201d Ribera said. She added that using such credits for 3 per cent of the target, a figure endorsed by the German government, is \u201ca huge number\u201d.<\/p>\n

\u201cThe pathway to become fully decarbonised by 2050 cannot be: we remain in our comfort zone and then we send to our children the huge effort to fully reduce their emissions between 2045 and 2050. It has to be consistent,\u201d Ribera said.<\/p>\n

What to watch today <\/h2>\n
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    Nato leaders\u2019 summit<\/a> in The Hague.<\/p>\n<\/li>\n

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    Ukraine\u2019s President Volodymyr Zelenskyy to sign an agreement with the Council of Europe to set up a special tribunal for the crime of aggression against Ukraine<\/a> in Strasbourg.<\/p>\n<\/li>\n

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    Gavi vaccine alliance holds pledging summit<\/a> in Brussels.<\/p>\n<\/li>\n<\/ol>\n

    Now read these<\/h2>\n
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    Recommended newsletters for you <\/h3>\n
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    The State of Britain<\/strong> \u2014 Peter Foster\u2019s guide to the UK\u2019s economy, trade and investment in a changing world. Sign up here<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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