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NATO and EU officials bicker over defense spending
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Spain’s Repsol wants to regain control of Venezuelan oil activities
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The Gulf states have raised $10 billion in wartime loans
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British investor builds $500 million stake in TikTok owner
We start with the EU and NATO, which are at odds over how to manage an additional $1 trillion a year rearmament drive prompted by Donald Trump’s threats to European security.
‘Peat War’: The US-led military alliance has long opposed Brussels’ takeover of defense powers. But the US president’s demands for allies to invest more in their own militaries have led to a review of arms production policy in the EU.
“There is a war going on over defense industrial policy,” one official said. “This is about who controls the production scale-up and what impact that will have on the weapons Europe will use in the future.”
Bottleneck: A key aspect of the debate is what role US weapons should play in rearmament, with NATO opposing the EU’s ‘Buy European’ approach in its wider industrial policy strategy.
Henry Foy has more from Brussels.
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Paying for defense: Security is the first duty of any government, but achieving it comes at the expense of society, writes Chris Giles.
Here’s what else we’re keeping an eye on today:
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UK: The February GDP figures are released. They will send an important signal about the consequences of rising energy prices as a result of the conflict in the Middle East and whether a recession is on the horizon. A Reuters poll points to an increase of 0.2 percent compared to January.
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Results: BNY, Netflix and Tesco announce profit figures.
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Five more top stories
1. Exclusive: Repsol is ready to take back operational control of its oil supplies in Venezuela and boosting production following an agreement with the government of Caracas. The Spanish energy group is expected to announce the deal today, which will include plans to triple production from its Venezuelan operations within three years.
2. The Gulf states have raised almost $10 billion in private bond sales this month, as part of their first international loans since the Iran war, delivered a major blow to their economies. Since early April, Abu Dhabi has sold $4.5 billion, Qatar $3 billion and Kuwait $2 billion in private placements of U.S. dollar bonds.
3. Exclusive: A London-based technology investor has amassed a stake in ByteDance worth more than $500 million, betting that the Chinese social media and AI group is undervalued compared to its Silicon Valley rivals.
4. Exclusive: Nissan has held talks with the Chinese Chery about building cars at the Japanese group’s Sunderland plant, the latest attempt by legacy carmakers to team up with rivals in their quest to secure the future of European and British factories.
5. The Norwegian sovereign wealth fundThe world’s largest, according to the Treasury Secretary, has no plans to divest US assets, despite concerns about the war in the Middle East and rising US debt. Jens Stoltenberg added that the US presence in the capital markets is so large that large funds will always have exposure to them.
News in depth
Regional tensions have long centered on Iran’s nuclear or missile programs. But for Tehran, the Strait of Hormuz has become the most important leverage point. Najmeh Bozorgmehr writes about how using the waterway as a weapon could influence the regime.
We are also reading. . .
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Patient data: Some NHS workers are against using Palantir, but there is no point in abandoning software that delivers results, argues John Gapper.
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Narrow window: Hungary and the EU have a fleeting opportunity to improve regional defense and correct the bloc’s dysfunction, writes Zselyke Csaky of the Center for European Reform.
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Art market: Sotheby’s posted a pretax profit of $53 million in 2025, ending years of losses at billionaire Patrick Drahi’s auction house.
Chart of the day
Pope Leo XIV has emerged as a fearless enemy of Trump. As he steps up his criticism of the war in Iran, the first U.S.-born pope’s attack on White House policies could have electoral consequences in the pope’s native country while also risking political danger for the president.
Take a break from the news. . .
The design for V&A East, London’s newest cultural venue, is inspired by a Balenciaga dress. To Edwin Heathcote, the resulting building looked strange. On the other hand, he found the galleries inside a real delight.
