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      Draghi’s Fall Reverberates Beyond Italy

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      The downfall of Italy’s prime minister has raised concerns across Europe about the power of populist movements and whether they will erode unity against Russian aggression.ROME — Just over a month ago, Prime Minister Mario Draghi of Italy boarded an overnight train with the leaders of France and Germany bound for Kyiv. During the 10-hour trip, they joked about how the French president had the nicest accommodations. But, more important, they asserted their resolute support for Ukraine in the face of Russian aggression. The pictures of the men tucked in a cabin around a wooden conference table evoked a clubby style of crisis management reminiscent of World War II.The mere fact that Mr. Draghi had a seat at that table reflected how, by the force of his stature and credibility, he had made his country — one saddled by debt and persistent political instability — an equal partner with Europe’s most important powers. Critical to that success was not only his economic bona fides as the former president of the European Central Bank but also his unflinching recognition that Russia’s war presented as an existential challenge to Europe and its values.All of that has now been thrown into jeopardy since a multi-flanked populist rebellion, motivated by an opportunistic power grab, stunningly torpedoed Mr. Draghi’s government this week. Snap elections have been called for September, with polls showing that an alliance dominated by hard-right nationalists and populists is heavily favored to run Italy come the fall.Mr. Draghi’s downfall already amounts to the toppling of the establishment that populist forces across Europe dream of. It has now raised concerns, far transcending Italy, of just how much resilience the movements retain on the continent, and of what damage an Italian government more sympathetic to Russia and less committed to the European Union could do to the cohesion of the West as it faces perhaps its greatest combination of security and economic challenges since the Cold War.“Draghi’s departure is a real problem for Europe, a tough blow,” said Gianfranco Pasquino, professor emeritus of political science at Bologna University. “Draghi had a clear position against the Russian aggression in Ukraine. Europe will lose in compactness because the next prime minister will almost certainly be less convinced that the responsibility for the war lies with Russia.”If there was any question of where the sympathies of European leaders lie in Italy’s power struggle, before his downfall Mr. Draghi received offerings of support from the White House, President Emmanuel Macron of France, Chancellor Olaf Scholz of Germany and others.Mario Draghi, left, and French President Emmanuel Macron examining debris as they visited Irpin, outside Kyiv, Ukraine, last month.Pool photo by Ludovic MarinPrime Minister Pedro Sanchez of Spain wrote “Europe needs leaders like Mario.” When Mr. Draghi made his last-ditch appeal to Italy’s fractious parties to stick with him on Wednesday, Prime Minister Antonio Costa of Portugal wrote him to thank him for reconsidering his resignation, according to a person close to Mr. Draghi.But now, with Mr. Macron lamenting the loss of a “Great Italian statesman,” anxiety has spread around the continent about what will come next.Mr. Draghi’s rebalancing of Italy’s position on Russia is all the more remarkable considering where it started. Italy has among Western Europe’s strongest bonds with Russia. During the Cold War, it was the home of the largest Communist Party in the West, and Italy depended on Russia for more than 40 percent of its gas.Mr. Draghi made it his mission to break that pattern. He leveraged his strong relationship with the U.S. treasury secretary, Janet Yellen, to spearhead the sanctions on the Russian Central Bank.By the example of his public speeches, he pressured his allies, including Mr. Macron, to agree that Ukraine should eventually be a member of the European Union.In the days before the fatal vote in the Senate that brought down his government, Mr. Draghi visited Algeria to announce a gas deal by which that country will supplant Russia as Italy’s biggest gas supplier.Those achievements are now at risk after what started last week as a rebellion within his coalition by the Five Star Movement, an ailing anti-establishment party, ended in a grab for power by conservatives, hard-right populists and nationalists who sensed a clear electoral opportunity, and went for the kill.They abandoned Mr. Draghi in a confidence vote. Now, if Italian voters do not punish them for ending a government that was broadly considered the country’s most capable and competent in years, they may come out on top in elections.Prime Minister Draghi speaking to ministers and Senators on Wednesday, the day his national unity coalition collapsed. Andreas Solaro/Agence France-Presse, via Getty ImagesThe maneuvering by the alliance seemed far from spontaneous.Ahead of the vote, Matteo Salvini, the leader of the hard-right League party, huddled with former prime minister Silvio Berlusconi over a long sweaty lunch at the mogul’s villa on the Appian Way and discussed what to do.Giorgia Meloni, the leader of the Brothers of Italy, a party with post-fascist roots who has incessantly called for elections from the opposition, said she spoke with Mr. Berlusconi a few days earlier and that he had invited her to the meeting as well, but that she demurred, saying it was better they meet after the vote. She said she spoke on the phone with Mr. Salvini only after Mr. Draghi’s speech in parliament.“I didn’t want them to be forced to do what they did,” she said, referring to Mr. Salvini and Mr. Berlusconi, who abandoned Mr. Draghi and collapsed the government. “I knew it would only work if they were sure about leaving that government.”Each has something to be gained in their alliance. Mr. Salvini, the hard right leader of the League party, not long ago the most popular politician in the country, had seen his standing eroded as part of Mr. Draghi’s government, while Ms. Meloni had gobbled up angry support from the opposition, supplanting him now as Italy’s rising political star. Mr. Berlusconi, nearly a political has-been at age 85, was useful and necessary to both, but also could use their coattails to ride back to power.Together, polls show, they have the support of more than 45 percent of voters. That is worrying to many critics of Russia. Mr. Salvini wore shirts with Mr. Putin’s face on them in Moscow’s Red Square and in the European Parliament, his party signed a cooperation deal with Mr. Putin’s Russia United party in 2017.Ms. Meloni, in what some analysts see as a cunning move to distinguish herself from Mr. Salvini and make herself a more acceptable candidate for prime minister, has emerged as a strong supporter of Ukraine.League leader Matteo Salvini and Brothers of Italy leader Giorgia Meloni meeting with with Silvio Berlusconi, right, in October 2021.Guglielmo Mangiapane/ReutersMr. Berlusconi used to host Mr. Putin’s daughters at his Sardinian villa and was long Mr. Putin’s closest ally in Western Europe. But now, some of Mr. Berlusconi’s longtime backers say, he has forgotten his European values and crossed the Rubicon to the nationalist and Putin-enabling side.Renato Brunetta, Italy’s Minister for Public Administration, and a long time member of former Prime Minister Silvio Berlusconi’s Forza Italia, quit the party after it joined with the populist League party in withdrawing support from Mr. Draghi and destroying the government.He said he left because Mr. Berlusconi’s decision to abandon the government was irresponsible and antithetical to the values of the party over the last 30 years. Asked whether he believed Mr. Berlusconi, sometimes shaky, was actually lucid enough to make the decision, he said “it would be even more grave” if he was.Italy, long a laboratory for European politics, has also been the incubator for the continent’s populism and transformation of hard-right movements into mainstream forces.When Mr. Berlusconi entered politics, largely to protect his business interests in the 1990s, he cast himself as a pro-business, and moderate, conservative. But in order to cobble together a winning coalition, he had brought in the League and a post-fascist party that would become Ms. Meloni’s.Now the situation has inverted. Ms. Meloni and Mr. Salvini need Mr. Berlusconi’s small electoral support in order to win elections and form a government. They are in charge.“It is a coalition of the right, because it is not center-right anymore,” said Mr. Brunetta. “It’s a right-right coalition with sovereigntist tendencies, extremist and Putin-phile.”Supporters of Mr. Draghi take some solace in the fact that he will stick around in a limited caretaker capacity until the next government is seated, with control over issues related to the pandemic, international affairs — including Ukraine policy — and the billions of euros in recovery funds from Europe. That money is delivered in tranches, and strict requirements need to be met before the funds are released.Supporters of Mr. Draghi acknowledged that major new overhauls on major problems such as pensions were now off the table, but they argued that the recovery funds were more or less safe because no government, not even a hard-right populist one, would walk away from all that money, and so would follow through on Mr. Draghi’s vision for modernization funded by those euros.But if the last week has shown anything, it is that political calculations sometimes outweigh the national interest.Supporters of Prime Minister Draghi demonstrating in Milan on Monday.Mourad Balti Touati/EPA, via ShutterstockThe government’s achievements are already “at risk” over the next months of Mr. Draghi’s limited powers, said Mr. Brunetta, but if the nationalist front won, he said, “obviously it will be even worse.”Mr. Brunetta said Mr. Draghi arrived on the political scene in the first place because there was a “crisis of the traditional parties” in Italy. He said that the 17 months in government, and the support it garnered in the public, showed that there was “a Draghian constituency,” which wanted moderate, pragmatic and value-based governance.The problem, he said, was there were “no political parties, or especially a coalition, to represent them” and he hoped one could be born before the election but “there was little time.”And in the meantime, he said, some things were for sure. Italy had lost influence in Europe and the continent would suffer, too, for the loss of Mr. Draghi.“Europe,” he said, “is weakened.”Gaia Pianigiani More

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      Amazon Acquires One Medical in Push Into Health Care

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      The internet giant acquired One Medical, a national chain of primary care clinics, for $3.9 billion.Twitter’s shares fell after the social media platform, which is locked in a legal battle with Elon Musk over its future ownership, reported that it lost $270 million in the second quarter. Alphabet, Apple, Meta and Microsoft will report their earnings next week, with many forecasters expecting more disappointing results. Now delivering diagnoses.Patrick T. Fallon/Agence France-Presse — Getty ImagesJassy’s big bet on health careYesterday, Amazon announced its first major acquisition during Andy Jassy’s tenure as C.E.O., with the $3.9 billion purchase of One Medical, a national chain of primary care clinics that is backed by the private equity firm the Carlyle Group.Amazon’s ambitions in health care go back more than two decades, writes The Times’s Karen Weise. But none of its forays into the sector have had notable success, or have been as big as the One Medical acquisition. Its previous bets in health care include:Investing in Drugstore.com in 1999. (Jeff Bezos served on the company’s board.)Teaming up with JPMorgan and Berkshire Hathaway in 2018 to start Haven, in an amorphous effort to explore new ways to deliver health care to their work forces. The venture formally ended last year.Buying the start-up PillPack, an online pharmacy that focuses on recurring monthly medications, in 2018 for $753 million. It later began Amazon Pharmacy, which, like PillPack, delivers medications, and it integrated discounts for customers with Prime memberships.Running its own primary and urgent care service, called Amazon Care, beginning in 2019, to treat its employees. Amazon Care has tried to get other employers to offer its service, with limited success.The One Medical deal gives Amazon access to more data. One Medical built its own electronic medical records system, and it has 15 years’ worth of medical and health-system data that Amazon could tap. Although individual patient records are generally protected under federal health privacy laws, the big data expertise that has fueled Amazon’s success can be powerful in health care — for predicting costs, targeting interventions and developing products and treatments.It could also test the new antitrust regime. Last night, Senator Amy Klobuchar said she was calling on the F.T.C. to “thoroughly investigate” the deal, citing Amazon’s previous investments in health care and its access to data. And while Amazon hardly dominates heath care, the Justice Department and the F.T.C. have sought to rewrite the rules for reviewing big mergers to broaden the scope for intervention. Lina Khan, who leads the F.T.C., has long contended that there is an antitrust argument against Amazon. She has not so far filed a suit against the company in her time as chair. Her agency reviewed and approved Amazon’s acquisition of the movie studio Metro-Goldwyn-Mayer, though that was before Democrats held a majority on the commission.When asked by The Washington Post last month about Amazon’s push into health care, Khan said, “Our current approach to thinking about mergers still has more work to do to fully understand what it means for these businesses to enter into all these other markets and industries.”HERE’S WHAT’S HAPPENING Turkey promises a deal to get grain out of Ukraine’s blocked ports. The Turkish presidency says that a signing ceremony will be held today for a deal between Ukraine and Russia aiming to allow millions of tons of Ukrainian grain to be exported, alleviating a global food shortage.President Biden has “very mild” Covid symptoms. Biden, 79, tested positive for the coronavirus yesterday. Karine Jean-Pierre, the White House press secretary, said he would “continue to carry out all of his duties fully” while isolating.Snap shares plunge after a disappointing quarterly report. The company, which runs the social media platform Snapchat, said it would “substantially reduce” hiring and that revenue growth in its current uncompleted quarter was approximately zero. Jessica Lessin, the editor of the tech-focused news site The Information, said, Snap’s results “raise questions about digital advertising in the current macroeconomic climate.”The U.S. government files its first criminal case about crypto insider trading. A former Coinbase employee and two other men were charged with buying and selling digital assets based on confidential information from the cryptocurrency exchange. The three men, one of whom has fled to India, are said to have made $1.5 million on 14 trades over a 10-month period.China will faces severe heat waves over the next 10 days. Regions could be hit by temperatures of 40 degrees Celsius (104 degrees Fahrenheit) or higher, forecasts suggest, and some cities in Zhejiang Province, which has many factories, issued red alerts today.Trump’s inaction in actionAs a mob of his supporters assaulted the Capitol on Jan. 6, Trump refused to stop them, according to former Trump administration officials, who testified yesterday to the House committee investigating the attack. Over 187 minutes, Trump sat in his dining room off the Oval Office, watching the violence on television, not just ignoring calls to respond, but repeatedly signaling that he did not want anything done.It was one of the most dramatic hearings of the inquiry, write The Times’s Luke Broadwater and Maggie Haberman. Still, the assertion that Mr. Trump was derelict in duty raised ethical, moral and legal questions, but it might not be the basis for a criminal charge, according to Representative Elaine Luria, Democrat of Virginia, who led much of last night’s proceedings. The media critic Brian Stelter, of CNN, called yesterday evening’s hearing “the most Fox-centric hearing yet — and none of it was shown live by Fox,” underscoring how divided the U.S. media landscape is.Here were the takeaways:Trump ignored a torrent of pleas from inside and outside the White House to call off his supporters. Members of Congress, aides and his own daughter, Ivanka, pleaded with Mr. Trump to call off the violence as it unfolded in front of him on television, The Times’s Michael S. Schmidt notes. Representative Adam Kinzinger, the Illinois Republican who helped lead the hearing, said that the president, after learning of the Capitol breach, resisted putting out a tweet saying, “Stay peaceful.”Even the next day, Trump was not fully willing to concede the race. Outtakes from a taped address of the president’s speech on Jan. 7 showed the president saying he didn’t want to say “the election is over.”Members of Pence’s Secret Service security detail feared for their lives as protesters drew nearer. “I don’t like talking about it, but there were calls to say goodbye to family members, so on and so forth,” one official, whom the committee declined to name, said.Gen. Mark A. Milley, the chairman of the Joint Chiefs of Staff, the nation’s highest-ranking military officer, told the panel: “You’re the commander in chief. You’ve got an assault going on on the Capitol of the United States of America, and there’s nothing? No call? Nothing? Zero?”More hearings are planned for September.YouTube’s policy on pulling abortion-related content has skeptics YouTube said on Twitter yesterday that it would be removing videos over the next few weeks that provided instructions for “unsafe abortion methods.” Citing its medical misinformation policies, it also said that it would be removing content that promoted “false claims about abortion safety” and that it would start including information from health authorities alongside abortion content.YouTube’s announcement was a step in the right direction, but it should have happened a long time ago, said Imran Ahmed, the C.E.O. and founder of the nonprofit organization the Center for Countering Digital Hate. “Even though we welcome any change in their rule, why on earth were home remedies for abortion ever permitted on their site?” he told DealBook, citing the medical risks associated with using dangerous methods. He recommended that YouTube provided a hotline to groups that offer accurate information on reproductive health care.Since the Supreme Court’s decision to overturn Roe v. Wade in June, abortion has been banned in at least eight states, and videos offering home remedies to induce abortions have spread on YouTube, TikTok and social media platforms. Experts have urged caution, saying these methods may be dangerous and there is no data on whether they work. A 2020 survey published in the journal JAMA Network Open estimated that 7 percent of American women would attempt a self-managed abortion at some point in their lives.For YouTube, the challenge will be enforcement, said Katharine Trendacosta, an associate director of policy and activism at the Electronic Frontier Foundation, a nonprofit digital rights group. Trendacosta told DealBook that she questioned whether YouTube had the staffing and processes in place to pull this off. “I have trouble with these announcements because it doesn’t tell me if they’re going to hire enough people to implement it,” she said.THE SPEED READ DealsThe U.K. competition watchdog cleared a merger of the sports broadcasting businesses of BT Group and Warner Bros. Discovery. (Reuters)Malaysia’s AMMB, a financial services manager, is reportedly considering a sale of its asset-management unit. (Bloomberg)“Amazon Wants 100,000 Electric Vans. Can Rivian Deliver?” (NYT)The toymaker Mattel reported a 20 percent jump in sales. (NYT)PolicyRussia is keeping Germany guessing on gas shipments. (NYT)Truckers protesting a labor law have blocked roads that serve the Port of Oakland in California. (NYT)The E.C.B. has a new tool to keep bond markets in check. It doesn’t want to use it. (NYT)In good news for consumers, the economy and President Biden, gas prices are finally falling. (The Morning)Best of the restSwatch’s $260 MoonSwatch is helping to revive the brand. (Bloomberg Businessweek)A look at the PGA Tour’s lobbying effort against the Saudi-backed LIV golf league. (CNBC)A 35,000-acre forest fire in Spain was accidentally started by a Dutch carbon offset company. (Vice)Despite Putin’s efforts to destroy Ukraine’s economy, tech companies there are still thriving. (NYT)“Pro-Putin Biker Gang Rides Into E.U. Sanctions Roadblock” (FT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Twitter Takes Round 1

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      Judge Kathaleen McCormick granted the social media giant’s request for an expedited hearing. Now, the two sides are gearing up for a trial in October.Twitter: 1, Musk: 0.Jim Wilson/The New York TimesTwitter suit takes the fast laneTwitter won its effort to expedite its trial with Elon Musk yesterday, in its lawsuit to force Musk to close his $44 billion acquisition of the company. So many people tried to listen to the proceedings that the dial-in hit capacity — and we hear advisers across Wall Street were huddled around speakerphones.It’s a big win for Twitter. In granting an expedited hearing, Judge Kathaleen McCormick effectively repudiated the notion that the court needed to allow time for a deep dive into whether Twitter had accurately counted the number of bots on its platform. She cited the “cloud of uncertainty” that was hanging over the company the longer the case went undecided as the reason for her decision to fast-track the trial. And in what may be another good sign for Twitter, Judge McCormick said she was unsure that damages would be a sufficient remedy for the social media company, which wants Musk to buy it, not pay damages to walk away.Please see Page 5. A centerpiece of Musk’s claims is that Twitter’s disclosures about the percentage of active users on its platform that are bots are misleading, which would have a “material adverse effect” on the company’s value. But Musk has yet to tell the court what, exactly, in Twitter’s disclosures might be false. This became an issue when Musk’s lawyer at Quinn Emanuel, Andy Rossman, took aim at Page 5 of Twitter’s annual report, which explains its bot count. But Twitter’s lawyer at Wachtell, Bill Savitt, in his rebuttal, noted that Twitter fills that page with hedges and warnings that numbers might be off. (It reads, in part: “Our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”) Of Twitter’s disclosure, Savitt said: “This does not require a recreation of all things known to humanity.” Judge McCormick seemingly agreed.The two sides are gearing up for a trial in October. Over the next weeks, they have to agree on schedules for depositions and discovery. And Musk will have time to prepare for another hearing before Judge McCormick that month: a defense of his whopping Tesla pay package — money that could come in handy if she forces him to buy Twitter.HERE’S WHAT’S HAPPENING Netflix loses fewer subscribers than expected. The streaming service reported yesterday that it lost nearly 1 million subscribers in the second quarter, far fewer than it had forecast. What’s more, Netflix said some of its strategies to stem losses, like an ad-supported option for consumers and a crackdown on password sharing, would boost revenue as soon as next year.A heroic act in an Indiana mall shooting renews the debate over gun access. In the days since a 22-year-old armed bystander killed a gunman two minutes into a shooting spree, the U.S. is again debating the wisdom of easier access to guns. But an analysis of 433 active shooter attacks in the U.S. between 2000 and 2021 found just 22 had ended with a bystander shooting the attacker, according to the Advanced Law Enforcement Rapid Response Training Center at Texas State University.The CHIPS Act passes a procedural hurdle in the Senate with more than 60 votes. The legislation, stalled for more than a year, gives chip manufacturers what they say is help they need to build factories in the U.S. The Senate is expected today to officially vote to pass the bill, which has been slimmed down and still needs to return to the House before it can go to the president.Intelligence agencies say Russia remains a threat in elections. Top F.B.I. and National Security Agency officials warned yesterday that Russia could still seek to meddle or promote disinformation during the 2022 midterm races, even as it wages war in Ukraine. Iran and China also remained potent threats, the officials said.The House moves to protect same-sex marriage from Supreme Court reversal. New legislation, which garnered some Republican support, would recognize same-sex marriages at the federal level, but it faces an uncertain path in the Senate. The move was a direct answer to Justice Clarence Thomas’s concurring opinion in the ruling last month that overturned federal abortion rights.The loans that may haunt Silicon ValleyTech workers have taken out loans in recent years based on the value of their start-up stock. But as the start-up economy has deflated, that may come back to haunt them, writes The Times’s Erin Griffith.Start-up loans stem from the way workers are typically paid. As part of their compensation, most employees at privately held tech companies receive stock options. That’s where loans and other financing options come in. Start-up stock is used as a form of collateral for cash advances. The loans vary in structure, but most providers charge interest and take a percentage of the worker’s stock when the company sells or goes public. Some are structured as contracts or investments.This lending industry has boomed in recent years. Many of the providers were created in the mid-2010s as hot start-ups like Uber and Airbnb put off initial public offerings of stock as long as they could, hitting private market valuations in the tens of billions of dollars.Debate has ignited in Silicon Valley over the proliferation of loans backed by stakes in still-private start-ups. Proponents say the loans are necessary for employees to participate in tech’s wealth-creation engine. But critics say the loans create needless risk in an already-risky industry and are reminiscent of the dot-com era in the early 2000s, when many tech workers were badly burned by similar loans.As the start-up economy deflates, these loans can be risky. While most are structured to be forgiven if a start-up fails, employees could still face a tax bill because the loan forgiveness is treated as taxable income.“No one’s been thinking about what happens when things go down,” said Rick Heitzmann, an investor at FirstMark Capital. “Everyone’s only thinking about the upside.”“The thing I’ve always been taught by my parents is to be the first one in and last one out. But there’s no one else there.”— Alex Hyman, who pictured his internship at a Los Angeles entertainment agency this summer as being one part “Entourage” and one part “The Office,” but found it more like “Home Alone.” It’s a common experience in an age of remote-working bosses.Mooch’s crypto problemAnthony Scaramucci, who is famous for his 11-day stint as former President Donald Trump’s communications director, is facing a mass exodus of investors from his funds.Earlier this week, Bloomberg reported that Scaramucci’s firm SkyBridge Capital had halted withdrawals from one of its smaller funds, Legion Strategies, which contains just over $200 million. But Scaramucci is also struggling to hold onto investors in SkyBridge’s flagship fund, the SkyBridge Multi-Adviser Hedge Fund Portfolios, which managed as much as $2 billion at the end of March. Its investments lost nearly a quarter of their value in the second quarter.Investors in SkyBridge’s flagship fund are seeking to withdraw as much as $890 million, or about half of the money that it held as of the end of last month, Scaramucci told DealBook. But many of those investors will be stuck in the fund for a while. Under its rules, investors in the Multi-Adviser fund are only allowed to withdraw money during certain windows. Those used to occur four times a year, but SkyBridge cut them to twice a year in 2020, after big losses at the beginning of the pandemic. Earlier this month, SkyBridge told investors they would only collectively receive about 16 percent of the money they requested. The letter said it was issuing investors’ notes that would be paid no later than October.Scaramucci’s losses come just over a year after SkyBridge’s pivot into crypto. SkyBridge’s flagship fund, which Scaramucci bought from Citigroup, has long specialized in buying and selling stakes of other hedge funds. For a time, that, along with strong performance in the years after the 2008 financial crisis, made Scaramucci one of the most powerful players in the hedge fund industry.Scaramucci says he is still a long-term believer in crypto. The fund manager says that about 22 percent of his flagship fund remained in crypto and related investments as of the end of last month. “I am not smart enough to time the market,” he told DealBook. “But we’ve done a tremendous amount of research and we think anyone who has will see that blockchain technology is good and is the future.”THE SPEED READ DealsPimco bought $1 billion worth of debt backing Apollo’s acquisition of a payments company at a steep discount. (Bloomberg)Start-ups are racing for share of the market for home chargers of electric vehicles, and several have already been acquired. (Reuters)“Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity” (Bloomberg Businessweek)PolicyDan Cox, a Trump loyalist, won the primary to be the Republican candidate for governor of Maryland. (NYT)Novavax’s Covid vaccine was cleared for use in the U.S. (NYT)The Secret Service said texts requested by the Jan. 6 commission were probably lost for good. (NYT)U.K. inflation has exceeded economists’ forecasts, hitting 9.4 percent (FT)President Vladimir Putin signaled that Russia would resume gas deliveries through a key pipeline but at a reduced level. (NYT)Best of the restLeaked salary data at Twitter showed a pay gap of as much as 225 percent for the same role in different countries. (Input)Soaring overdose rates in the pandemic reflect widening racial disparities. (NYT)How the pain of past economic crises is haunting Italy. (NYT)“Fighting a Brutal Regime With the Help of a Video Game” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Draghi Says He’ll Stay as Italy’s Prime Minister, if Parties Unite

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      Days after he tendered his resignation, the Italian leader offered a way out of political crisis. Now it depends on the parties to accept or reject it.ROME — Prime Minister Mario Draghi of Italy, who offered to resign last week after a rebellion in his broad national unity government, challenged the country’s fractious parties on Wednesday to stick together for the good of the country as a condition of him staying on.“The only way forward, if we want to stay together, is to rebuild from the top this pact, with courage, altruism and credibility,” Mr. Draghi said in a speech to the Italian Senate, throwing down a gauntlet ahead of confidence votes in the upper and lower chambers of Parliament on Wednesday and Thursday that will determine the fate of his government, along with the stability of Italy and much of Europe at an especially tenuous time.Mr. Draghi, speaking to long applause but also to some heckling, said that the public outcries for the government to continue were “impossible to ignore.”“Italy is strong when it knows how to be united,” he said, calling the period a “miracle” for Italy, but adding that political motivations had “unfortunately” led parties to seek to distinguish themselves, weakening “the desire to move forward together.”That politicking has left Italy teetering on the brink of instability once again after a period of relative calm, progress and expanding influence under Mr. Draghi’s leadership, which has made Italy an essential part of Europe’s united front against Russia in response to its war in Ukraine and its efforts to rebuild its economies amid the pandemic.Now, much will depend on whether Italy’s political parties take up Mr. Draghi’s offer, especially the Five Star Movement, which set off the current crisis by withholding its support last week in a key vote on the government’s spending priorities.That rebellion prompted the offer to resign by Mr. Draghi. Sergio Mattarella, Italy’s president, rejected the resignation and asked Mr. Draghi to address Parliament, where confidence votes will force all of the parties to take responsibility for their decisions.Mr. Draghi told the Parliament on Wednesday that Five Star’s revolt signified “the end” of the pact of trust that had fueled his government, and that it was unacceptable. If one party could do it, anyone “could repeat it,” he warned, adding that ransom demands on the government to suit narrow political interests could become the norm.He said that because he was appointed as a caretaker prime minister and not directly elected, his legitimacy was contingent on “as ample support as possible.”Giuseppe Conte, the leader of the Five Star Movement, this month in Rome. Mr. Draghi told the Parliament on Wednesday that Five Star’s revolt signified “the end” of the pact of trust that had fueled his government, and that it was unacceptable.Massimo Percossi/EPA, via Shutterstock“Are you ready to rebuild this pact?” Mr. Draghi repeated several times, concluding that the answer to this question was owed not to him, but to the Italian people.If Mr. Draghi does not receive the support he asked for on Wednesday, he will resign for good, and many analysts believe that Mr. Mattarella will call for early elections, as soon as September.Mr. Draghi’s speech was an effort to avoid the chaos that such a crisis would most likely bring.On the one hand, he tried to remind Parliament, and the country, all that Italy had been able to achieve since he took power in February 2021 in a government crisis caused by the forced removal of Prime Minister Giuseppe Conte, now the leader of Five Star, which stirred the insurrection against Mr. Draghi. He repeated that the efficacy of the government, its ability to move fast and make quick decisions was rooted in a national unity that “was the best guarantee for a legitimate democracy.”Mr. Draghi said that unity had allowed Italy to get out of the worst phase of the pandemic, funnel financial assistance quickly to those who needed it, cut “useless bureaucracy” that slowed the country, and aided the growth of the economy in a deeply challenging time.He listed key overhauls in a variety of sectors, including increased energy independence from Russia, which he called “essential for the modernization of Italy,” and noted that Italy had already received 45.9 billion euros (about $47 billion) from the European Commission in recovery funds, with €21 billion more on the way. “If we can’t show that we can spend this money well,” he said, Italy would not receive more.Mr. Draghi also attributed Italy’s greater footprint in Europe, and its strong position backing Ukraine with arms and condemning Russian aggression, to the period of political unity.“The merit of these accomplishments was yours,” he told Parliament, adding to long applause, “I have never been as proud to be an Italian as I have been in these moments.”But many analysts believe that they are actually creditable to Mr. Draghi and his reputation as a senior European statesman who saved the euro as the president of the European Central Bank. Without him, they say, the period of stability, and potentially Italy’s support for Ukraine and relevance in Europe, would be imperiled.The Italian government held a confidence vote on Wednesday in the Senate. If Mr. Draghi does not receive the support he asked for, he will resign for good, and many analysts believe that President Sergio Mattarella will call for early elections.Fabio Frustaci/EPA, via ShutterstockMr. Draghi’s willingness to step back, at least momentarily, from the breach overcame the day’s first hurdle for Italians hoping that the current government will continue. But the Senate had five hours of dramatic debate ahead of it, and no one was quite sure what any of the parties would do as they all weighed their personal interests.Five Star, riddled with warring factions, was in a particularly delicate situation, as a decision to back or bolt from the government both seemed likely to splinter the movement and cause defections.It was also unclear if Mr. Draghi would continue or resign without the support of Five Star if many of its members left to support him. Another confidence vote is scheduled for Thursday in the Lower House of Parliament, where more Five Star defections are likely.“What was supposed to be Conte’s vengeance against Draghi became the self-sinking of the former prime minister, whose political limitations have emerged,” wrote Stefano Folli, a political commentator with La Repubblica. “However it ends,” Mr. Folli added, “Five Star is doomed to a marginal role.”As the Senate began its debate on Wednesday, no one was sure what would happen.“It’s all uncertain,” said Giovanni Orsina, a political scientist at Luiss Guido Carli, a university in Rome. “We’ll need to see whether the parties want to play along and still support him.”Mr. Draghi, left, visited Irpin, Ukraine, in June with other European leaders, like President Emmanuel Macron of France.Viacheslav Ratynskyi/ReutersMany of the parties were concerned about an upcoming budget bill, which Mr. Draghi also emphasized in his speech, but there were also excruciating political calculations for each of the individual parties.Five Star, which won 33 percent of the vote in 2018 and is, as a result, still the largest party in the government, has since cratered. It has dreaded elections for years, but as the country’s next scheduled elections approach in early 2023, the downside of early elections has decreased.Still, the party, which has lost about two-thirds of its national support, would stand to be decimated at the ballot box. Mr. Conte’s decision to take a stand last week was widely seen as an effort to regain some of the party’s long lost anti-establishment identity. Instead, it seems to have backfired.Mr. Draghi on Wednesday made it clear that his government would not cave in to Five Star’s demands. He held firm on military support for Ukraine, which Five Star opposes, and for the building of new gas facilities to give Italy energy independence from Russia as a matter of national security, something Five Star has also opposed.He said that Italy’s universal income benefit for its poorest citizens, Five Star’s trademark achievement, was a positive development, but that it needed to be improved so that it actually helped those who needed it and did not become an incentive not to work. For now, it is loathed by the business sector and considered by many to be a drag on employment.Matteo Salvini, center, the leader the League party, on Wednesday in the Senate. The right-wing coalition of which the League is part, with Forza Italia and the hard-right Brothers of Italy, is currently leading in polls.Fabio Frustaci/EPA, via ShutterstockThat hard line was met by heckling and disapproval from parts of the chamber.The center-left Democratic Party, which is most supportive of Mr. Draghi, was also in a difficult position because it was counting on an alliance with Five Star, or what is left of it, to bolster its own electoral fortunes in the next elections. But now an alliance with Five Star — the party that prematurely ended the Draghi era — was itself laden with danger, and fractures had emerged in the left over its wisdom.The right-wing coalition of the League party, led by the nationalist Matteo Salvini; Forza Italia, led by former Prime Minister Silvio Berlusconi; and the hard-right Brothers of Italy, led by Giorgia Meloni, was currently leading in polls, though it was not clear how eager they were to govern at such a delicate time.Mr. Salvini and Mr. Berlusconi have vowed to no longer sit in the same government with Five Star, but they also do not want to risk their credibility — especially with a business community that likes Mr. Draghi — by being seen as the ones who brought down the government. Italy’s political observers were paying especially close attention to what Mr. Salvini would do.In his speech, Mr. Draghi mentioned as part of his government’s program the priorities of powerful League governors in the country’s north who want the prime minister to stay on, potentially driving a wedge between them and Mr. Salvini were he to consider bolting.“Politically, Italians do not love the parties who rip up the government and lead them to elections,” Mr. Orsina said. But a main member of the alliance, Ms. Meloni has skyrocketed in the polls as she stayed in the opposition, and wants elections as soon as possible. More

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      Colombia Election: Angry, Mobilized and Voting for Gustavo Petro

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      A large and loud youth electorate hungry to transform one of Latin America’s most unequal societies could propel Gustavo Petro, a former rebel, to the presidency.May 26, 2022FUSAGASUGÁ, Colombia — The man onstage surrounded by a screaming, sweating, fawning crowd seemed like an odd choice for a youth icon. Gustavo Petro is gray-haired, 62, and, in his speeches, he’s more roaring preacher than conversational TikTok star.But after an improbable rise from clandestine rebel to Bogotá mayor and bullish face of the Colombian opposition, Mr. Petro could soon become the country’s first leftist president, a watershed moment for one of the most politically conservative societies in Latin America.And his ascent has, in no small part, been propelled by the biggest, loudest and possibly angriest youth electorate in Colombia’s history, demanding the transformation of a country long cleaved by deep social and racial inequality.There are now nearly nine million Colombian voters 28 or younger, the most in history, and a quarter of the electorate. They are restive, raised on promises of higher education and good jobs, disillusioned by current prospects, more digitally connected and arguably more empowered than any previous generation.“Petro is change,” said Camila Riveros, 30, wrapped in a Colombian flag at a campaign event this month outside Bogotá, the capital. “People are tired of eating dirt.”Gustavo Petro this month in Santa Marta. He has held a steady lead in most polls, though he may not have enough support to avoid a runoff. As Colombians prepare to vote on Sunday, Mr. Petro has promised to overhaul the country’s capitalist economic model and vastly expand social programs, pledging to introduce guaranteed work with a basic income, shift the country to a publicly controlled health system and increase access to higher education, in part by raising taxes on the rich.Mr. Petro has been ahead in the polls for months — though surveys suggest he will face a runoff in June — and his popularity reflects both leftist gains across Latin America and an anti-incumbent fervor that has intensified as the pandemic has battered the region.“We have a decision to make,” Mr. Petro said at another campaign event this month in the Caribbean city of Cartagena. “We maintain things the way they are, or we scream: Freedom!”But critics say Mr. Petro is ill-suited for office, arguing that his policies, which include a plan to halt all new oil exploration in a country where fuel is a critical export, would ruin the economy.He has also taken direct swings at the country’s major institutions — most notably the armed forces — escalating tensions with military leaders and leading to concerns about the stability of Colombia’s longstanding but vulnerable democracy.Mr. Petro’s main opponent, Federico Gutiérrez, 47, a former mayor of Medellín, the country’s second largest city, and the candidate of the conservative establishment, proposes a more modest path forward.“Of course we need to change many things,” he said in an interview, citing a plan that would ramp up fracking for oil, steer more money to local governments and create a special unit to fight urban crime. “But changes can never mean a leap into the void without a parachute.”A third candidate, Rodolfo Hernández, 77, a former mayor with a populist, anti-corruption platform has been climbing in the polls.Mr. Petro’s main opponent, Federico Gutiérrez, is a former mayor of Medellín, the country’s second largest city, and the candidate of the conservative establishment.The election comes at a difficult moment for the country. Polls show widespread dissatisfaction with the government of the current president, Iván Duque, who is backed by the same political coalition as Mr. Gutiérrez, and frustration over chronic poverty, a widening income gap and insecurity, all of which have worsened during the pandemic.Among those hurt the most by these problems are younger Colombians, who are likely to play a big role in determining whether the country takes a major lurch to the left.Young people led anti-government protests that filled the streets of Colombia last year, dominating the national conversation for weeks. At least 46 people died — many of them young, unarmed protesters and many at the hands of the police — in what became referred to as the “national strike.”Some analysts expect young people to vote in record numbers, energized not just by Mr. Petro, but by his running mate, Francia Márquez, 40, an environmental activist with a gender, race and class-conscious focus who would be the country’s first Black vice president.“The TikTok generation that is very connected to Francia, that is very connected to Petro, is going to be decisive,” said Fernando Posada, 30, a political analyst.Some analysts expect young people to vote in record numbers, energized not just by Mr. Petro but by his running mate, Francia Márquez, an environmental activist.Today’s younger generation is the most educated in Colombian history, but is also grappling with 10 percent annual inflation, a 20 percent youth unemployment rate and a 40 percent poverty rate. Many — both supporters and critics of Mr. Petro — say they feel betrayed by decades of leaders who have promised opportunity but delivered little.In a May poll by the firm Invamer, more than 53 percent of voters ages 18 to 24 and about 45 percent of voters ages 25 to 34 said they were planning to vote for Mr. Petro. In both age categories, less than half those numbers said they would vote for Mr. Gutierrez or Mr. Hernández.Natalia Arévalo, 30, a single mother of three, marched for days during protests last year, with her daughter, Lizeth, 10, wearing a placard around her neck that read: “What awaits us children?”“You have to choose between paying your debts and feeding your kids,” said Ms. Arévalo, who supports Mr. Petro.“You can’t eat eggs, you can’t eat meat, you can’t eat anything,” she added. “We have to give a 180-degree turn to all that we’ve had for the last 20 years.”José Fernando Mazo, a law student, waving in the crowd at a rally for Mr. Petro in Cartagena on May 14.To be sure, many young voters are skeptical of Mr. Petro’s ability to deliver on his promises.In Fusagasugá, Nina Cruz, 27, a cafe worker, said Mr. Petro would fail Colombia’s struggling families, and she was particularly repulsed by his past as a member of a leftist rebel group.The country has a long history of violent militias that claim to help the indigent — and end up terrorizing them.“What he is saying is: ‘I’m going to help the poor,’” she said. “That’s a total lie.”Mr. Petro, an economist, grew up outside Bogotá. As a teenager, he joined the M-19, a leftist urban militia that sought to seize power and claimed to promote social justice.The group was never as large or as violent as the country’s main guerrilla force, the Revolutionary Armed Forces of Colombia, or FARC. But in 1985, the M-19 occupied a national judicial building, sparking a battle with the police and the military that left 94 people dead.Mr. Petro, who did not participate in the takeover, ended up in prison for his involvement with the group.He eventually demobilized and ran for a senate seat, emerging as the combative face of the left, pushing open conversations about corruption and wrongdoing.Some critics have warned that Mr. Petro’s energy proposals would bankrupt the country. Oil represents 40 percent of Colombia’s exports and Juan Carlos Echeverry, a former finance minister, has said that halting oil exploration “would be economic suicide.’’Ballistic shields on stage during Mr. Petro’s appearance in Cartagena. He has been the recent target of death threats. Mr. Petro also has a reputation for an authoritarian streak. As mayor of Bogotá, he circumvented the City Council and often failed to listen to advisers, said Daniel Garcia-Peña, who worked with Mr. Petro for a decade before quitting in 2012. In his resignation letter Mr. Garcia-Peña called Mr. Petro “a despot.”The election comes as polls show growing distrust in the country’s democratic institutions, including the country’s national registrar, an election body that bungled the initial vote count in a congressional election in March.The error, which the registrar called procedural, has led to concerns that losing candidates will declare fraud, setting off a legitimacy crisis.The country is also being roiled by rising violence, threatening to undermine the democratic process. The Mission for Electoral Observation, a local group, called this pre-election period the most violent in 12 years.Candidates pushing change have been murdered on the campaign trail before.Both Mr. Petro and Ms. Márquez have received death threats, and at his campaign event in Cartagena, he took the stage flanked by men holding bulletproof shields.Young supporters of Mr. Petro at a rally in Cartagena on May 14. A recent poll found that Mr. Petro was the leading candidate among voters 18 to 34.Some voters held signs that read “Black children’s lives matter,” and “if it’s not Petro, we’re screwed.”There was excitement — but also trepidation.“What we want are opportunities for everyone,” said Lauren Jiménez, 21, a university student.But “if Petro can’t follow through, I know we will see the same thing that happened with the Duque government: a social explosion,” she warned. “Because we’re tired of staying quiet.”Sofía Villamil More

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      As Marine Le Pen Moves Closer to French Presidency, Putin Ties Persist

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      As elections approach Sunday, the far-right candidate is linked to the Russian president by a web of financial ties and a history of support that has hardly dimmed despite the war in Ukraine.PARIS — When Europe’s far-right leaders gathered in Madrid in January, they had no problem finding unity on the issues they hold dear, whether cracking down on immigrants or upholding “European Christian ideals.” But as Russian troops massed on the Ukrainian border, they were divided on one issue: the threat posed by President Vladimir V. Putin.Marine Le Pen, the extreme-right challenger for the French presidency, objected to a paragraph in the final statement calling for European solidarity to confront “Russian military actions on the eastern border of Europe.” Even in a gathering of illiberal nationalists, she was an outlier in her fealty to Mr. Putin.Now, on her campaign website, the leaders’ statement appears with that paragraph cut in an unacknowledged change to the text. This little subterfuge is consistent with an embrace of Mr. Putin so complete that even his ravaging of Ukraine has hardly diminished it.Over the past decade, Ms. Le Pen’s party, the National Rally, formerly the National Front, has borrowed millions from a Russian bank, and Ms. Le Pen has supported Mr. Putin’s annexation of Crimea in 2014, as well as his incendiary meddling that year in the Donbas region of eastern Ukraine, where just this week Russia redoubled its offensive.Her support for Mr. Putin is one thing in a time of peace and another in a time of war. Russia, a nuclear power, has invaded a European state, and Ms. Le Pen is closer than ever to her cherished goal of becoming president of France, having narrowed the gap with President Emmanuel Macron before the decisive round of the election on Sunday.Supporters of Ms. Le Pen at a campaign rally in Stiring-Wendel, France, on April 1. She has come closer to Mr. Macron in polls as a decisive election round nears.Andrea Mantovani for The New York TimesWith polls showing Ms. Le Pen gaining about 44.5 percent of the vote to Mr. Macron’s 55.5 percent, she is within range of the shocks that produced Brexit and Donald J. Trump’s victory in 2016. As in Britain and the United States, alienation and economic hardship have fed a French readiness to gamble on nationalist dreams.If Ms. Le Pen wins, which is not likely but possible, her victory will almost certainly fracture the allied unity engineered by President Biden in an attempt to defeat Mr. Putin. It would hand Mr. Putin by far his most important ally in Europe, one he could leverage in his aims to divide Europe from the United States and fracture Europe’s decades-old project of unity.France, a core member of the European Union and NATO, is suddenly the possible soft underbelly of the West.Julien Nocetti, a Russia expert at the French Institute of International Relations, said there was “a complete ideological alignment between Putin and Le Pen” — one that would be deeply worrying to France’s American and European allies.The Ukraine war has caused Ms. Le Pen to pivot a little by saying Mr. Putin crossed “a red line” with the invasion, but she still says her foreign-policy priority is a rapprochement with Russia once the fighting stops.Bodies being loaded onto a truck in Bucha, Ukraine, where evidence of Russian atrocities mounted. Ms. Le Pen said that Mr. Putin crossed “a red line” with the invasion but also that she will seek a rapprochement with Russia.Daniel Berehulak for The New York TimesSince Ms. Le Pen, 53, took over the leadership of her party in 2011, she has only deepened its Putin predilection, making four trips to Moscow and one to Crimea. She would support sanctions against Russia, she says, but not cutting off imports of Russian oil and gas, which she has equated with economic death for France.“We have to think of our people,” she said in a recent TV interview, a position consistent with the strong focus on pocketbook issues that has propelled her campaign. The majority of French people are more focused on getting to the end of the month than getting Russia out of Ukraine.Certainly, Ms. Le Pen vaunted her connection with Mr. Putin until he went to war on Feb. 24. She included a photo of herself shaking hands with him in her election brochure as evidence of her “international stature.” This handout disappeared abruptly from view after the Russian invasion.The photo was taken at the Kremlin on March 24, 2017. That was less than five weeks before the first round of the last presidential election, in which Mr. Macron defeated Ms. Le Pen by 66.1 percent to 33.9 percent. The National Rally leader said then that she would immediately review lifting “unjust” sanctions against Russia if elected.As for Mr. Putin, he said with a knowing smirk that Russia did “not want to influence events in any way.”Shopping at a supermarket in Livry-Gargan, Paris, in December. Most French voters are more concerned about the economy than the Ukraine war.Andrea Mantovani for The New York TimesJean-Maurice Ripert, the French ambassador in Moscow from 2013 to 2017, said in an interview that a fellow European ambassador, a close friend, had asked the Russian leader after the French election why he had backed Ms. Le Pen.“Because I had been told she was going to win,” Mr. Putin said.Certainly that is what he wanted. Ms. Le Pen, committed to “equidistance” between great powers and hostile to “America’s protectorate on European soil,” sees in Mr. Putin the defender of the nation-state, family and Christianity against border-eroding multilateralism and irreligious cultural decay.“It’s all about sovereignty,” said Marlène Laruelle, the French director of the Institute for European, Russian and Eurasian studies at George Washington University. “The sovereign state against international organizations; the sovereign traditional family against L.G.B.T.Q. rights.”Then there is the money. Unable to get a loan from French banks, Ms. Le Pen and several of her top aides scrambled for cash in Russia, accepting a 9.4 million euro loan, then $12.2 million, at a 6 percent interest rate, from the First Czech-Russian Bank in September 2014. It was supposed to be repaid by 2019.A branch of the First Czech-Russian Bank in Moscow, before it collapsed in 2016. Ms. Le Pen received millions in loans from the bank.Dmitry Serebryakov/TASS/Alamy Live NewsWallerand de Saint-Just, who was long the National Rally’s treasurer before leaving the position last year, negotiated the deal in Moscow. In a written answer to a question as to why French banks had refused any loan to the National Rally, he said “My experience with the six big French banking groups is that they obey orders from the political executive.”But given the lack of transparency and accountability in Russia’s financial sector — and Mr. Putin’s sway over it in his pay-to-play system — the sum has long raised hard questions of just how beholden Ms. Le Pen actually is to the Russian president, and whether some of her outspoken backing for him has been a consequence.I asked Ms. Le Pen this month at a news conference whether the outstanding loan did not create at least the impression of dependence on Russia, a liability for any future president?“Absolutely not,” she said. “I am totally independent of any link to any power.”In her current campaign, again unable to get a loan from a French bank, Ms. Le Pen turned to Hungary, where Viktor Orban, the anti-immigrant Hungarian prime minister, has been in power for 12 years. A Hungarian bank has now lent the National Rally another $11.4 million, so if she were to win she would be indebted to both Mr. Putin and Mr. Orban.Hungary’s prime minister, Viktor Orban, center, attending a meeting of far-right and conservative leaders in Madrid, in January.Oscar Del Pozo/Agence France-Presse — Getty ImagesAlready her backing of Mr. Putin has been borderline fawning. Ms. Le Pen visited Moscow and Crimea in June 2013; Moscow in April 2014; and Moscow again in May 2015. She was received by the president of the Duma, the lower chamber of Russia’s Parliament, during the first of these visits, and sprinkled her Russian sojourns with pro-Putin remarks.In 2013, she blamed the European Union for a new “Cold War on Russia.” In 2015, also while in Moscow, she criticized France’s pro-American stance and suggested this would change “in 2017 with Marine Le Pen as president.” In 2021, she recommended Russia’s uncertain Sputnik vaccine for the coronavirus, saying “our anti-Russian ideology should not ruin our capacity to vaccinate our fellow citizens.”The 2014 visit came at a particularly delicate moment, given the Crimea annexation. It was one of several demonstrations of support for Mr. Putin from prominent members of Ms. Le Pen’s party who visited Crimea that year, and the Donbas, the Ukrainian region where clashes kindled by Moscow had begun.Among them was Aymeric Chauprade, her former top diplomatic adviser, who went to Crimea to observe the dubious March 2014 referendum that massively backed the Russian annexation. A United Nations General Assembly resolution declared the vote invalid.“It was the West that began changing European borders with Kosovo’s independence in 2008,” Mr. Chauprade, who has since left the National Rally, said in an interview. “There was an openness to accepting invitations from Russia, a good atmosphere.”Russian troops guarded a Ukrainian marine base in Crimea as Mr. Putin moved to annex the peninsula in March 2014. Le Pen has visited Moscow and Crimea and made remarks that were supportive of Russia.Sergey Ponomarev for The New York TimesMediapart, a French investigative news website, was the first to expose the Russian loan to the National Rally in September 2014. In an earlier interview with Mediapart, Mr. Chauprade said visits to the Donbas that year and in 2015 by Jean-Luc Schaffhauser, a former National Rally member of the European Parliament, had been a “quid pro quo” for the loan.What to Know About France’s Presidential ElectionCard 1 of 4Heading to a runoff. More

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      US Braces for Potential French Election Shockwave

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      WASHINGTON — U.S. officials are anxiously watching the French presidential election, aware that the outcome of the vote on Sunday could scramble President Biden’s relations with Europe and reveal dangerous fissures in Western democracy.President Emmanuel Macron of France has been a crucial partner as Mr. Biden has rebuilt relations with Europe, promoted democracy and forged a coalition in response to Russia’s invasion of Ukraine. But Mr. Macron is in a tight contest with Marine Le Pen, a far-right challenger.Ms. Le Pen is a populist agitator who, in the style of former President Donald J. Trump, scorns European Union “globalists,” criticizes NATO and views President Vladimir V. Putin of Russia as an ally.Her victory could complicate Mr. Biden’s effort to isolate Russia and aid Ukraine. But the very real prospect of a nationalist leading France is also a reminder that the recent period of U.S.-European solidarity on political and security issues like Russia and democracy may be fragile. Poland and Hungary, both NATO members, have taken authoritarian turns. And Germany’s surprisingly strong response to Russia’s invasion of Ukraine is already drawing domestic criticism.“To have a right-wing government come to power in France would be a political earthquake,” said Charles A. Kupchan, a professor at Georgetown who was the Europe director of the National Security Council during the Obama administration. “It would send a troubling signal about the overall political health of the Western world.”He added: “This is a moment of quite remarkable European unity and resolve. But Le Pen’s election would certainly raise profound questions about the European project.”Mr. Macron was unable to command more than a small plurality of support against several opponents in the first round of voting on April 10. Ms. Le Pen, who finished second, is his opponent in the runoff election on Sunday. Polls show Mr. Macron with a clear lead, but analysts say a Le Pen victory is completely plausible.An immigration hard-liner and longtime leader of France’s populist right, Ms. Le Pen has campaigned mainly on domestic issues, including the rising cost of living. But her foreign policy views have unsettled U.S. officials. Last week, she renewed vows to scale back France’s leadership role in NATO and to pursue “a strategic rapprochement” with Russia after the war with Ukraine has concluded. Ms. Le Pen also expressed concern that sending arms to Ukraine risked drawing other nations into the war.Mr. Macron, right, has been a crucial partner as President Biden has rebuilt relations with Europe.Erin Schaff/The New York TimesIn a debate on Wednesday, Mr. Macron reminded voters that Ms. Le Pen’s party had taken a loan from a Russian bank. “You depend on Mr. Putin,” he told her.Ms. Le Pen insisted she was “an absolutely and totally free woman” and said she sought foreign cash after French banks refused to lend to her. She also sought to deflect charges that she was sympathetic to Russia’s war aims, declaring her “absolute solidarity” with the Ukrainian people.Ms. Le Pen has also pledged to curtail the influence of the European Union, which the Biden administration sees as a vital counterweight to Russia and China.One senior U.S. official noted that France has a recent history of right-wing candidates striking fear into the political establishment before falling short. That was the case five years ago, when Mr. Macron defeated Ms. Le Pen in a runoff.But recent elections in the West have been prone to upsets, and analysts warned against complacency in Washington, especially given the stakes for the United States.One sign of how much the Biden administration values its partnership with Mr. Macron was the minor sense of crisis after France withdrew its ambassador to Washington in September after the disclosure of a new initiative between the United States and Britain to supply Australia with nuclear submarines.Mr. Macron’s government blamed the Biden administration for the loss of a lucrative submarine contract it had with Australia and was especially angry to learn about the arrangement through a leak to the news media. Biden officials expressed profuse support for France in a flurry of meetings and phone calls, and Mr. Biden called the episode clumsy. France was an “extremely, extremely valued” U.S. partner, he said.If Ms. Le Pen were to win, Mr. Biden’s national security team would be forced to reassess that relationship.What to Know About France’s Presidential ElectionCard 1 of 4Heading to a runoff. More

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      Macron to Face Le Pen for President as French Gravitate Toward Extremes

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      President Emmanuel Macron and the hard-right leader Marine Le Pen will compete for a second time in a runoff on April 24.PARIS — President Emmanuel Macron will face Marine Le Pen, the French far-right leader, in the runoff of France’s presidential elections.With 92 percent of the ballots cast on Sunday counted, Mr. Macron, a centrist, was leading with about 27.4 percent of the vote to Ms. Le Pen’s 24.3 percent. Ms. Le Pen benefited from a late surge that reflected widespread disaffection over rising prices, security and immigration.With war raging in Ukraine and Western unity likely to be tested as the fighting continues, Ms. Le Pen’s strong performance demonstrated the enduring appeal of nationalist and xenophobic currents in Europe. Extreme parties of the right and left took some 51 percent of the vote, a clear sign of the extent of French anger and frustration.An anti-NATO and more pro-Russia France in the event of an ultimate Le Pen victory would cause deep concern in allied capitals, and could fracture the united trans-Atlantic response to the Russian invasion of Ukraine.But Mr. Macron, after a lackluster campaign, will go into the second round as the slight favorite, having fared a little better than the latest opinion polls suggested. Some had shown him leading Ms. Le Pen by just two points.Marine Le Pen speaking after the first-round results were announced on Sunday.Andrea Mantovani for The New York TimesThe principled French rejection of Ms. Le Pen’s brand of anti-immigrant nationalism has frayed as illiberal politics have spread in both Europe and the United States. She has successfully softened her packaging, if not her fierce conviction that French people must be privileged over foreigners and that the curtain must be drawn on France as a “land of immigration.”Ms. Le Pen’s ties to President Vladimir V. Putin of Russia are close, although she has scrambled in recent weeks to play them down. This month, she was quick to congratulate Viktor Orban, Hungary’s nationalist and anti-immigrant leader, on his fourth consecutive victory in parliamentary elections.“I will restore France to order in five years,” Ms. Le Pen declared to cheering supporters, appealing to all French people to join her in what she called “a choice of civilization” in which the “legitimate preponderance of French language and culture” would be guaranteed and full “sovereignty reestablished in all domains.”The choice confronting French people on April 24 was between “division, injustice and disorder” on the one hand, and the “rallying of French people around social justice and protection,” she said.Mr. Macron told flag-waving supporters: “I want a France in a strong Europe that maintains its alliances with the big democracies in order to defend itself, not a France that, outside Europe, would have as its only allies the populist and xenophobic International. That is not us.”He added: “Don’t deceive ourselves, nothing is decided, and the debate we will have in the next 15 days is decisive for our country and for Europe.”A polling station in Pontoise on Sunday.Andrea Mantovani for The New York TimesLast week, in an interview in the daily Le Parisien newspaper, Mr. Macron called Ms. Le Pen “a racist” of “great brutality.” Ms. Le Pen hit back, saying that the president’s remarks were “outrageous and aggressive.” She called favoring French people over foreigners “the only moral, legal and admissible policy.”The gloves will be off as they confront each other over the future of France, at a time when Britain’s exit from the European Union and the end of Angela Merkel’s long chancellorship in Germany have placed a particular onus on French leadership.Mr. Macron wants to transform Europe into a credible military power with “strategic autonomy.” Ms. Le Pen, whose party has received funding from a Russian and, more recently, a Hungarian bank, has other priorities.The runoff, on April 24, will be a repeat of the last election, in 2017, when Mr. Macron, then a relative newcomer to politics intent on shattering old divisions between left and right, trounced Ms. Le Pen with 66.9 percent of the vote to her 33.1 percent.The final result this time will almost certainly be much closer than five years ago. Polls taken before Sunday’s vote indicated Mr. Macron winning by just 52 percent to 48 percent against Ms. Le Pen in the second round. That could shift in the coming two weeks, when the candidates will debate for the first time in the campaign.Reflecting France’s drift to the right in recent years, no left-of-center candidate qualified for the runoff. The Socialist Party, long a pillar of postwar French politics, collapsed, leaving Jean-Luc Mélenchon, the far-left anti-NATO candidate with his France Unbowed movement, to take third place with about 21 percent.Supporters of Mr. Macron in Paris on Sunday.James Hill for The New York TimesMs. Le Pen, who leads the National Rally, formerly the National Front, was helped by the candidacy of Éric Zemmour, a fiercely xenophobic TV pundit turned politician, who became the go-to politician for anti-immigrant provocation, which made her look more mainstream and innocuous. In the end, Mr. Zemmour’s campaign faded, and he took about 7 percent of the vote.Mr. Zemmour immediately called on his supporters to back Ms. Le Pen in the second round. “Opposing Ms. Le Pen there is a man who allowed 2 million immigrants to enter France,” Mr. Zemmour declared.The threatening scenario for Mr. Macron is that Mr. Zemmour’s vote will go to Ms. Le Pen, and that she will be further bolstered by the wide section of the left that feels betrayed or just viscerally hostile toward the president, as well as by some center-right voters for whom immigration is the core issue.More than half of French people — supporters of Ms. Le Pen, Mr. Zemmour and Mr. Mélenchon — now appear to favor parties that are broadly anti-NATO, anti-American and hostile to the European Union. By contrast, the broad center — Mr. Macron’s La République en Marche party, the Socialist Party, the center right Republicans and the Green Party — took a combined total of about 40 percent.These were numbers that revealed the extent of anxiety in France, and perhaps also the extent of distrust of its democracy. They will be more comforting to Ms. Le Pen than to Mr. Macron, even if Mr. Mélenchon said his supporters should not give “a single vote” to Ms. Le Pen.He declined, however, to endorse Mr. Macron.At Ms. Le Pen’s headquarters, Frederic Sarmiento, an activist, said, “She will benefit from a big transfer of votes,” pointing to supporters of Mr. Zemmour, but also some on the left who, according to polls, will support Ms. Le Pen in the second round.Immigrant families awaiting emergency accommodation outside the Paris city hall last April.Andrea Mantovani for The New York Times“I am very worried, it will be a very close runoff,” said Nicolas Tenzer, an author who teaches political science at Sciences Po university. “Many on the left will abstain rather than vote Macron.”Mr. Macron gained the immediate support for the second round of the defeated Socialist, Communist, Green and center-right candidates, but between them they amounted to no more than 15 percent of the first-round vote. He may also benefit from a late surge in support of the Republic in a country with bitter wartime experience of extreme-right rule.In the end, the election on Sunday came down to Mr. Macron against the extreme right and left of the political spectrum, a sign of his effective dismantlement of the old political order. Now built essentially around a personality — the restless president — French democracy does not appear to have arrived at any sustainable alternative structure.If the two runoff qualifiers are the same as in 2017, they have been changed by circumstances. Where Mr. Macron represented reformist hope in 2017, he is now widely seen as a leader who drifted to the right and a top-down, highly personalized style of government. The sheen is off him.On the place of Islam in France, on immigration controls and on police powers, Mr. Macron has taken a hard line, judging that the election would be won or lost to his right.Addressing his supporters after the vote Sunday, he said he wants a France that “fights resolutely against Islamist separatism” — a term he uses to describe conservative or radical Muslims who reject French values like gender equality — but also a France that allows all believers to practice their faiths.A polling place at the Versailles town hall.Andrea Mantovani for The New York TimesHis rightward shift had a cost. The center-left, once the core of his support, felt betrayed. To what extent the left will vote for him in the second round will be a main source of concern, as already reflected in Mr. Macron’s abrupt recent catch-up paeans to “fraternity,” “solidarity” and equality of opportunity.Throughout the campaign, Mr. Macron appeared disengaged, taken up with countless telephone calls to Mr. Putin that proved ineffectual.A comfortable lead in polls disappeared in recent weeks as resentment grew over the president’s detachment. He had struggled during the five years of his presidency to overcome an image of aloofness, learning to reach out to more people, only to suffer an apparent relapse in the past several weeks.Still, Mr. Macron steered the country through the long coronavirus crisis, brought unemployment to its lowest level in a decade and lifted economic growth. Doing so, he has convinced many French people that he has what it takes to lead and to represent France with dignity on the world stage.Ms. Le Pen, who would be France’s first woman president, is also seen differently. Now in her third attempt to become president — Jacques Chirac won in 1995 after twice failing — she bowed to reason (and popular opinion) on two significant fronts: dropping her prior vows to take France out of the European Union and the eurozone. Still, many of her proposals — like barring E.U. citizens from some of the same social benefits as French citizens — would infringe fundamental European treaties.The leader of the National Rally, formerly the National Front, toned down her language to look more “presidential.” She smiled a lot, opening up about her personal struggles, and she gave the impression of being closer to the day-to-day concerns of French people, especially with regard to sharply rising gas prices and inflation.But many things did not change. Her program includes a plan to hold a referendum that would lead to a change in the Constitution that would ban any policies that lead to “the installation on national territory of a number of foreigners so large that it would change the composition and identity of the French people.”She also wants to bar Muslim women from wearing head scarves and fine them if they do.Polling booths in Trappes on Sunday. The first round of voting saw the highest abstention rate in decades.Andrea Mantovani for The New York TimesThe abstention rate Sunday, at between about 26 and 28 percent, was several points above the last election. Not since 2002 has it been so high.This appeared to reflect disillusionment with politics as a change agent, the ripple effect of the war in Ukraine and lost faith in democracy. It was part of the same anger that pushed so many French people toward political extremes.Aurelien Breeden More