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      Joe Biden’s foreign foray is all about shoring up democracy – in the US | Henry Farrell

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      During his first trip abroad as US president last week, Joe Biden kept telling Europe that “the US is back”. Before the G7 meeting, Biden signed a new Atlantic charter with Boris Johnson that agreed to protect democracy and open societies. After Cornwall, he went on to more meetings in Brussels with the European Union, as well as a Nato summit and a head to head with Vladimir Putin in Geneva. Past presidents have viewed the EU as an irrelevant bureaucracy or a sinister threat. Biden described it as an “incredibly strong and vibrant entity”. In his press conference with Emmanuel Macron, Biden seemed to promise that the US was returning to its normal role in international politics. After Donald Trump, some nostalgic politicians might even hope for a reinvigoration of the so-called rules-based liberal order which has purportedly prevailed since the second world war.Anyone with such hopes is bound to be disappointed. Despite his rhetoric, Biden isn’t really interested in a return to the status quo, or in reuniting the old band of transatlanticists to tour their greatest hits. The old transatlantic relationship reflected America’s needs after the 1939-45 war. The US didn’t create Nato or shovel money at shattered European economies out of disinterested generosity, but because it wanted to strengthen allies to better face shared threats.Now, the US’s needs have changed, and so will its actions. Biden genuinely and openly fears that American democracy is in danger. Threats come from outside, because China offers an attractive alternative model, with authoritarianism able to provide reasonable prosperity to its population. But more perniciously, American democracy is under threat from inside. Trump did not accept his election defeat in November and egged on his supporters to attack the US Capitol on 6 January to overturn the result. At the same time, Republicans are using their control of state legislatures to bring through a plethora of laws aimed at making it harder to vote and so cement their own rule.Biden is rather less keen to discuss the fact that he is relatively powerless to address those internal threats. Thin Democratic majorities in both the Senate and House of Representatives, combined with united Republican opposition and the presence of the Senate filibuster, make it nearly impossible to get any legislation passed.On external matters though, one of the few major areas of bipartisan agreement is distrust of China. This is why the administration and its allies have been able to pass legislation aimed at boosting American research projects, which they can justify as helping the US to compete with China. This shared outlook allows Biden more elbow room for a robust approach to China – and besides, it is much easier for him to act abroad unilaterally than to work on domestic matters through Congress. US presidents have very wide leeway to make foreign policy so long as they don’t try to sign binding treaties.The result is an approach that combines competition with China, efforts to protect global democracy and measures ultimately intended to shore up some of the gaping vulnerabilities in US domestic politics. Other presidents wanted to spread democracy around the world, whether through free-trade liberalism or through force. The new administration wants to bring democracy back home.This focus will remake the transatlantic relationship. The guiding mantra of his international team is that they are making “foreign policy for the middle class”. This phrase isn’t nearly as bland as it seems. It implies that the traditional approach to American foreign policy of years past – pressing for free-trade agreements to spread international liberalism – actually hurt ordinary Americans and made them more likely to vote for Trump, with all the dangers for democracy that entailed.The Biden administration is likely to be far less interested in free-trade agreements than its pre-Trump predecessors, especially when they are costly for American industry. It’s notable that the new Atlantic charter with Britain doesn’t have any reference to the World Trade Organization, and that it talks about “open and fair trade” rather than simply “open trade”. Meanwhile, the president wants to use economic measures such as rebuilding supply chains to minimise dependence on autocracies and prevent China’s access to key technologies. But those efforts are likely to sit awkwardly with WTO rules.Despite Biden’s outward friendliness this poses a big challenge to the EU, which has in some ways been more committed to rules-based multilateral trade than the US. It may also present difficulties for Johnson’s post-Brexit Britain. A world of existing, stable multilateral rules is much more comfortable for a mid-sized power than a new free-for-all. Economies such as Germany, which have depended heavily on the Chinese market, are also going to face some difficult choices.Biden’s new enthusiasm for more strict global tax rules also provides some problems for international partners. Again, the reasons are largely domestic: the policy echoes Bernie Sanders’ argument, leading from the left of the Democratic party, that tax havens and easy, anonymous money-flows damage democracy by enabling corruption and kleptocracy. That then becomes awkward for the UK, which has long turned a blind eye to inflows of dirty money and whose overseas territories are among the world’s leading tax havens. It’s also a problem for EU tax havens such as the Republic of Ireland and the Netherlands, and for islands like Cyprus and Malta with banking systems that cater for Russian and Eurasian oligarchs.While Biden proclaims that America is back on the world stage, truly he is looking homewards, preoccupied with a broken domestic political system and how to fix it. By tackling those vexed international issues of China, trade and tax, Biden hopes in turn to help US democracy to find its way again. If they really want to remake the transatlantic relationship, the UK and Europe are going to have to work together with an administration with a very different understanding of American interests than its predecessors. More

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      The Guardian view on an Atlantic charter: new rules for new threats | Editorial

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      Before the second world war, states acted as they wished in international affairs, limited only by their resources and power. These circumstances began to change in August 1941, before America joined the allied cause. On a battleship off the coast of Newfoundland, the US president Franklin Roosevelt and the British prime minister Winston Churchill issued the Atlantic charter at a time when Nazi Germany appeared to be decisively winning the European war. A few months later, America, Britain, the Soviet Union and 23 other governments declared in the name of “United Nations” an intention to regulate the postwar world based on three revolutionary principles: free trade, non-aggression and democracy.Eighty years later, Joe Biden and Boris Johnson have signed a new Atlantic charter, to reflect a world of different threats and one in which the UK is a much diminished power. Mr Biden looks out and sees an increasingly dangerous world. In some ways the vista resembles the 1930s – with populists, nationalists and demagogues on the rise, European powers divided, and democracy vulnerable to foreign manipulation. There’s no mention of China in the 604-word charter, but it is the undeclared target of many of the policies regarding debt transparency, freedom of navigation and protecting the west’s “innovative edge”.There is much to agree with in the text, especially the focus on the climate crisis and promoting sustainable global development. It also calls for both countries to adhere to “the rules-based international order”, a welcome snub to the Trumpian idea that this was a threat to US power. However, the 2021 text is a pale imitation of its 1941 forerunner. There’s nothing remotely as bold as a new international law on governing relations between states.The original document’s genius was the realisation that the time to think and plan is not at the end of a crisis, but as it unfolds. For the past 15 months, Covid-19 shut down large swathes of the planet amid what was initially a chaotic me-first approach. The pandemic has accelerated trends already in progress and will usher in a new geopolitical era. As the grip of the pathogen loosens, the world will need new principles to address the deeper issues that led to a decline in international cooperation, creeping illiberalism, and a shift in the balance of power away from democracies.Mr Biden is looking for allies in his mission to ensure that the world remains conducive to a liberal, democratic way of life. Mr Johnson is looking for a role for Britain outside of the EU, and London almost always dances to Washington’s tune. But Mr Johnson’s inability to stick to the Northern Ireland protocol of the Brexit deal he negotiated saw the US issue a reprimand this week. Washington bluntly told Mr Johnson to come to a “negotiated settlement” with Brussels and accept, if needed, “unpopular compromises” – even if that means London temporarily aligning with EU rules on agriculture and slowing progress on a future UK-US trade deal. Mr Biden understands that allies will not begin to forge a better future by falling out with one another.Nations need international agreements to promote and protect their own interests. Cooperation between states requires rules. Attempts to abandon the idea of international restraint and go it alone usually end badly. There’s nothing in the new charter that other members of the G7, or the EU, could not sign up to. The world does not govern itself, and leading powers cannot abdicate their role in shaping international institutions – and mobilising others to defend them. If the world’s democracies were to turn away, then either others would step in or the world risks a descent into chaos as it did in the 1930s. More

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      Joe Biden’s mission at the G7 summit: to recruit allies for the next cold war | Rafael Behr

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      Joe Biden crosses the Atlantic this week on a tide of goodwill. After four years of Donald Trump, European leaders are grateful for the mere fact of a US president who believes in democracy and understands diplomacy.Trump had no concept of historical alliance, strategic partnership or mutual interest. He saw multilateral institutions as conspiracies against US power, which he could not distinguish from his own ego. He heard European talk of a rules-based international order as the contemptible bleating of weakling nations.Biden’s stated purpose is bolstering that order. In an article published in the Washington Post on the eve of his trip, the president talks about “renewed” and “unwavering” commitment to a transatlantic relationship based on “shared democratic values”.The itinerary starts in Cornwall with a gathering of G7 leaders. Then comes Brussels for a Nato summit, plus meetings with presidents of the European Council and Commission. Biden intends to orchestrate a surge of western solidarity as mood music ahead of a final stop in Geneva, where he sits down with Vladimir Putin. On that front, a stable chilling of relations will count as progress after the downright weirdness of Trump’s willing bamboozlement by the Kremlin strongman.A re-enactment of cold war choreography would suit Putin by flattering his pretence that Russia is still a superpower. In reality, Washington sees Moscow as a declining force that compensates for its shrunken influence by lashing out where it can, causing mischief and sowing discord. Putin is seen as an irritant, not a rival.That is in marked contrast to the view of China – an actual superpower and the eastern pole that Biden has in mind when he talks about reviving an alliance of western democracies. In that respect, the repudiation of Trumpian wrecking-ball rhetoric can be misleading. It sounds to European ears as if the new White House administration is hoping to set the clock back to a calmer, less combative epoch. In reality, Biden is coming to tell Europe to get its act together in the coming race for global supremacy with Beijing.By Europe, in this context, the president also means Britain. Boris Johnson might imagine himself a world leader of continental stature, but a US president is not required to indulge that fantasy.Biden takes a dim view of Brexit, seeing it as a pointless sabotage of European unity. The White House preferred Britain as a pro-US voice wielding influence inside the EU. Since that function is lost, Brexit’s only utility is in making it easier for the UK to embrace economic and strategic vassalage to the US. That means toeing a hawkish line on China.European nations should not really have to pause for long if the choice is alignment with Washington or Beijing. It is easy to muster resentment of US global swagger and point out hypocrisies in its claim to be a beacon of political freedom. But the alternative is an expansionist totalitarian state that militates against democracy and is currently engaged in a genocide against the Uyghurs.If China were a poorer country, Biden’s mission would be easier. But the economic gap between the established superpower and the challenger is closing. Per capita, Americans are still much better off, but China could overtake the US in gross domestic product by the end of this decade. With that heft comes world-leading technological capability with crossover military application that keeps the Pentagon up at night.During the cold war, the Kremlin maintained a credible military rivalry with the west but was not an economic competitor for long. The collapse of the Soviet model seemed to prove that political freedom and prosperity came as a package. There could be no enterprise without markets, no markets without fair rules, and no enforceable rules without democracy. The Chinese Communist party’s hybrid model of authoritarian capitalism appears to have disproved that theory.When the G7 was conceived in the 1970s, its combined membership – the US, Canada, Britain, France, Germany, Italy and Japan – comfortably represented a commanding share of global wealth. There was a natural association of liberal democratic institutions and economic success. Today, those seven nations’ combined GDP is down to 40% of the world total. The west is still rich, but it is no longer the world’s envied super league.Chinese money gives Europe commercial incentives that compete with its high-minded rhetoric on democratic values. China is Germany’s biggest export market. Smaller EU members have welcomed Chinese investment in infrastructure and businesses, although qualms are steadily growing about built-in political strings and security trapdoors. A huge Brussels-Beijing trade deal, signed last year (much to Washington’s dismay), is currently frozen as part of a tit-for-tat dispute over European criticism of Chinese human rights abuses.But EU governments simply don’t feel US levels of urgency to contain China. Geography is a factor – the US has a Pacific coast and strategic commitments to Taiwan, where Britain and France, for all their naval bravado, are little more than spectators. There is a conceptual difference too. As one diplomat puts it, Europe doesn’t like what China does, but the US doesn’t like what China is. The idea of the US being superseded as the paramount global power within the current century is existentially appalling for Washington.The Trump phenomenon compounds that anxiety for the current White House administration. It was a near-death experience for America’s constitutional order; an intimation of mortality for a political and economic model that looked insuperable at the dawn of the 21st century. The US president urges fellow western leaders to show strength in solidarity because the prospect of division, decline and the discrediting of democracy is more real than at any time in his five-decade Washington career.During that time, Biden has succeeded by patience, diplomacy and soft-spoken understatement. That style earns him a grateful audience in Europe, but the president’s manners should not be mistaken for mildness of purpose; the modest style is deployed in service of a tough message. He is not flying across the Atlantic to wallow in nostalgia for the alliances that won the first cold war. He is drumming up recruits for the second one. More

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      A global agreement on taxing corporations is in sight – let’s make sure it happens

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      For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
      Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

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      Queen to meet Joe Biden at Windsor Castle on 13 June

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      The Queen will meet Joe Biden when he visits the UK for the G7 summit later this month, Buckingham Palace has announced.The head of state will welcome the US president and the first lady, Jill Biden, to Windsor Castle on Sunday 13 June. Biden is due to attend the G7 gathering in Cornwall, which will be held in Carbis Bay from 11-13 June.The Queen met Biden’s predecessor, Donald Trump, when he made a state visit to the UK in June 2019, in the last days of Theresa May’s premiership.The president and first lady sent their condolences to the Queen after the death of the Duke of Edinburgh in April. The Bidens said they were keeping the royal family “in our hearts during this time”.Having taken up his post in the Oval Office, the coronavirus pandemic has limited opportunities for Biden to travel outside the US, so the G7 gathering will be his first foreign engagement in person.Buckingham Palace said in a short statement: “The Queen will meet the president of the United States of America and first lady Jill Biden at Windsor Castle on Sunday 13th June 2021.”There is speculation that the Prince of Wales and Duchess of Cornwall will also meet the couple at some point during their visit to the UK.There have been 14 US presidents during the Queen’s 69-year reign – from Harry S Truman to Biden. Biden will become the 13th American leader to meet the monarch – the only one the Queen did not meet was Lyndon B Johnson.After attending the G7 gathering, when world leaders are expected to discuss a range of issues from climate change to tackling the Covid-19 pandemic, Biden will head to Brussels to join a Nato summit.He is also scheduled to meet the Russian president, Vladimir Putin, in Switzerland on 16 June for talks on repairing relations between Washington and Moscow. More

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      in UK Politics

      Inside Politics: No 10 awaits ‘Dom bombs’ as Cummings set to spill secrets

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      Tributes have been paid to William Shakespeare, the man who made the headlines after becoming only the second person to get the Pfizer Covid vaccine. The “much-loved” 81-year-old has died of an unrelated illness. Covid, Shakespeare and octogenarians will be making the headlines for quite different reasons today. Dominic Cummings is ready to attack Boris Johnson and his government this morning, and is set to shed some light on whether the PM skipped crucial meetings to work on his Shakespeare book. He is also expected to tell MPs that Johnson claimed “Covid is only killing 80-year-olds”.Inside the bubblePolitical commentator Andrew Grice on what to look out for today: More

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      Inside Politics: Dominic Cummings ready to ‘napalm’ No 10, say allies

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      The Italians who won Eurovision have issued an outraged denial after video footage showed the band’s singer hovering a nostril over a table in the green room. “Please, guys – don’t say that,” the band said on drug claims. “We’re really shocked about what people are saying.” Boris Johnson’s government is outraged denial mode – ministers are really shocked about what Dominic Cummings is saying. The renegade’s allies say he’s ready to “napalm” No 10 this week with his claims on herd immunity and high-level incompetence. But does Cummings have anything really shocking to tell MPs?Inside the bubblePolicy correspondent Jon Stone on what to look out for today: More