Katherine Griffiths: Good News for a Stronger Europe

Our Readout lands in your inboxes today at yet another high-stakes moment. US President Donald Trump said he was embarking on a blockade of the key Strait of Hormuz while China warned earlier that the move would threaten global trade. Meanwhile, Prime Minister Keir Starmer said Britain would not take part in any action by the US.

Oil jumped on fears of fresh risks to energy supplies but overall markets were muted, with participants betting that nations want to avoid another escalation.

Against this fragile international backdrop, there has been good news for supporters of a stronger Europe. The most significant came yesterday evening in Hungary with Peter Magyar’s landslide election victory over Viktor Orban. And in the UK, as well as standing up to Trump, Starmer has signalled his government plans greater alignment with the European Union on rules such as for food and drink.

In Hungary, as Bloomberg’s Thomas Escritt, Zoltan Simon and Marton Kasnyik write, the feeling for many in Budapest was straightforward jubilation at the toppling of Orban’s 16-year rule, even if there remain many questions about Magyar’s agenda and how difficult it will be to bring about wide-ranging reform of Hungary’s institutions.

There was also joy in many other European countries due to hopes that Hungary’s vote could significantly strengthen the bloc. Orban repeatedly used a veto power to block EU collective decisions, particularly over financial aid for Ukraine. European Commission President Ursula von der Leyen moved swiftly today to say the union’s 27 members should “use the momentum now” to move to a system of deciding matters by majority, rather than allowing an individual nation to wield a veto.

Many would celebrate the chance that such a move – or even a serious discussion about it – might weaken Russian President Vladimir Putin’s resolve in his campaign against Ukraine. It would also, inevitably, stir conflict among EU members at the reduction in their national sovereignty.

There was also a boost for pro-Europeans from Starmer, who is planning to introduce a bill in next month’s King’s Speech to approve new EU regulations in some areas without having a parliamentary vote on the changes. The plan by Labour has been floating around for a few weeks. Starmer’s decision to firm it up sparked fire from Reform’s Nigel Farage as well as the Conservative shadow business secretary Andrew Griffith. Both argue the move would be deeply undemocratic.

Starmer – not usually known for his thought-out policies on business – is trying to frame the alignment as good for British firms. It’s an argument the vast majority of businesses will certainly welcome, though an interesting wrinkle could come from the UK’s financial services world, where any similar push for closer rules may not be as popular these days as once it would have been.
“There’s a sense, 10 years on from the Brexit referendum, that we’ve got to look forward now, not backwards,” Starmer said in an interview with the BBC this morning. Many would agree with that.

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