Global Public Affairs Newswire – 24 January 2025
Welcome to the latest instalment of FTI Consulting’s fortnightly Global Public Affairs Newswire.
This week, we bring you updates from FTI Public Affairs teams across the world’s major markets, including the United States, the European Union, China, the United Kingdom, India, France, Brazil, Germany, Hong Kong, Colombia, Ireland, South Africa, and Spain. This week’s update also brings readers market insights from FTI Public Affairs experts from around the world, explaining what these updates mean for your business.
Market updates
After a sweeping victory last November, with majorities in the U.S. Senate and the U.S. House secure, and overwhelming support from prolific leaders in the business community, President Trump used his inaugural address to announce “A Golden Age of America”. Trump has begun his second term with a frenetic burst of activity, including dozens of executive orders designed to immediately advance major themes of his 2024 campaign, potentially reshaping the U.S. economy and international relations.
These executive orders included:
- Energy & Natural Resources: President Trump announced a “National Energy Emergency” which could allow his administration to accelerate energy permits for exploration and for powerline and pipeline construction; he also rescinded the LNG export pause and lifted bans on onshore and offshore drilling permits.
- Technology: President Trump rescinded former President Biden’s 2023 directive requiring certain safety and collaboration protocols around AI development. The order was largely cheered by industry and investors and was made within hours of an announcement by industry leaders to invest US$300m in private sector funds to spur further AI infrastructure.
- Healthcare: President Trump announced the U.S.’s withdrawal from the World Health Organization, and paused ongoing negotiations on prescription drug prices for government-sponsored health plans.
- Financial Services: Outside escalating cryptocurrency as a national priority, executive orders directly impacting the financial services industry have been light thus far. President Trump has however directed the Securities and Exchange Commission to establish a task force on crypto to further clarify regulations.
- Industrials: In addition to his commitment to ending electric vehicle subsidies on day one, President Trump announced orders signaling a commitment to domestic manufacturing, including immediate studies of the impact of tariffs on the U.S. economy. Eventual tariff schemes will also have a significant impact on supply chains for the Retail & Consumer Goods industry.
Cabinet confirmations continue: President Trump’s nominations for his cabinet are expected to be confirmed in the next weeks. Agency nominees with national security responsibilities continue to receive the most political scrutiny, including President Trump’s choices for Director of National Intelligence and for Secretary of Defense. Marco Rubio was confirmed as the new Secretary of State.
Democrats in the wilderness: As former President Joe Biden leaves office with low approval ratings, the Democratic Party is beginning its time in the political wilderness. However, Democrats will still have an important role in the U.S. Senate, and potentially a critical role in the U.S. House, where Speaker Johnson’s majority is razor thin. Meanwhile, Democrats in the nation’s capital will likely remain in a mostly reactionary position, hoping the Trump team misjudges their mandate and overreach, providing an opportunity for re-engagement in the national debate.
President Jimmy Carter (1924 – 2024): Flags remain at half-staff around the country as the nation remembers former President Jimmy Carter. A former governor of Georgia, one-term president, and Nobel Peace Prize recipient, Jimmy Carter served as U.S. President from 1977 – 1981. He is remembered for his work in securing the Camp David Accords, as well as his post-presidency work at the Carter Center, including his international work in health and housing.
The European Commission has announced a legislative proposal (Omnibus) to amend the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy, to consolidate and simplify the legal framework. Recently, the negotiations around the Omnibus have intensified and it appears increasingly accepted that a legislative proposal will effectively be tabled. The overall understanding is that this would be the first proposal of a broader roadmap of simplification proposals that will affect other sectoral legislation in the future.
This comes despite the mounting opposition of large businesses, who want legal certainty, as well as NGOs who defend the level of ambition necessary to achieve climate targets. Despite the intent to simplify, concerns exist that the legislative process could lead to discussions on more fundamental changes, such as reporting content, timelines, and the scope of companies covered, creating uncertainty among stakeholders.
The Commissioner for Industry, Stephane Sejourné, surprised several stakeholders by declaring on French media that the Omnibus would be a “massive” simplification and that it would entail the “abolition of reporting”. His office quickly tried to reassure stakeholders by clarifying that the Commissioner meant that some elements would be removed but the CSRD would not be suppressed.
The proposal is scheduled for publication on 26 February 2025.
For more information about FTI’s Financial Services Public Affairs support in Brussels, please contact [email protected]
On 20 January, Chinese President Xi Jinping presided over the January Politburo Meeting that puts an emphasis on the protection of Yellow River Basin’s ecological environment, urging high-quality development in the region. The meeting said that the relationship between water, population, food and energy must be balanced to accelerate the country’s transition to a model of green development, drawing a connection to the “great rejuvenation and sustainable development of the Chinese nation”.
The Yellow River Protection Law, which took effect on 1 April 2023, shall be fully implemented, according to the meeting readout.
The development of Yellow River Basin has long been attached to the sustainable development of China in food, energy and ecological security. The meeting stressed that water conservation capacity in the upper reaches of the river shall be enhanced, water and soil erosion in the middle reaches shall be controlled, and wetland as well as ecological environment protection in the lower reaches shall be prioritized.
The top leadership of the Communist Party of China also called for efforts to preserve cultural heritage, and to tap into the integrated development of culture and tourism in the Yellow River Basin, which is a new growth point boosting domestic consumption that the State Council identified in a recent document.
For more information about FTI’s Public Affairs services in China, please contact [email protected]
Ahead of President Trump’s inauguration on Monday, the UK’s Prime Minister, Keir Starmer issued a statement welcoming the new administration, emphasising the importance of the ‘Special Relationship’ between the UK and the US. While Starmer awaits an invitation to Washington to meet with the President in the coming weeks, reporting indicates that the Prime Minister has formed a ‘mini-Cabinet’ seeking to boost relations with Trump’s team and work towards a trade deal with the new administration. Appetite for this, however, will depend on the immediate strategic priorities of the new administration and the likely need for alignment on anticipated red lines on areas such as food standards and drug pricing. This comes as speculation mounts regarding potential for the President to reject the UK’s choice of Lord Peter Mandelson to replace Dame Karen Pierce as its ambassador to the US. If the choice was rejected, it would mark the first time a British ambassador in Washington has been refused in such a manner.
Elsewhere this week, the Chancellor of the Exchequer, Rachel Reeves attended the annual World Economic Forum in Davos, Switzerland. Joined by Business Secretary, Jonathan Reynolds and Investment Minister, Poppy Gustafsson, Reeves made the case to industry that the UK is open to investment, stating that the government is prioritising economic stability and championing a pro-business approach. In affirming that “the time to invest in Britain is now”, the Chancellor also announced an agreement ahead of the visit that will allow certain UK-qualified professionals to work more easily in Switzerland, replacing a similar agreement in place while the UK was departing the EU.
For more information about FTI’s Public Affairs services in the United Kingdom, please contact [email protected]
President Trump’s second term will impact trade, immigration, and geopolitics for India, though the jury is out on the net impact on India-US relations.
Indian foreign minister Subrahmanyam Jaishankar sat in the front row at Trump’s inauguration, and later met Secretary of State Marco Rubio (the latter’s first bilateral engagement under Trump), highlighting India’s importance as both nations navigate geopolitics shaped by tensions with China.
Trade: Trump has promised higher tariffs, which add over $14 billion in duties for India and hit export sectors that rely heavily on the US market. This may complicate trade negotiations: Trump has called India a ‘tariff king’. He has also threatened BRICS (which includes India) nations with 100% tariffs if they move to non-dollar trade.
Immigration: Trump ended birthright citizenship on his first day, affecting thousands of Indians on H1B and other visas. Visa, particularly H-1Bs crucial for Indian IT professionals, will likely get more restricted, increasing costs for Indian tech firms and limiting talent mobility. India has agreed to take back 18,000 illegal migrants from the US.
Geopolitics: With India’s growing defence capabilities and strategic value in the Indo-Pacific region, the relationship will likely head for deeper collaboration. Defence cooperation will strengthen as both nations seek a counterbalance to China. However, India may well be impacted by the US withdrawal from the Paris agreement and from the WHO.
Trump wants his government to investigate and fix trade deficits. USTR data showed USD 192 billion of trade with India in 2022, with over USD 45 billion trade deficit for the US. The US was India’s largest trading partner in fiscal 2023-24.
For more information about FTI’s Public Affairs services in India, please contact [email protected]
French Prime Minister François Bayrou, appointed in December after the collapse of his predecessor’s government, faces the formidable challenge of passing a budget in a fragmented Parliament amid a dire fiscal crisis. After forming his cabinet, which includes several figures from the previous administration, Bayrou immediately began negotiations with political factions in the National Assembly to avoid a similar collapse. Bayrou’s primary strategy has been to prevent the far-right National Rally from aligning with the left-wing New Popular Front (NFP) coalition. He has also sought to exploit divisions within the NFP by extending concessions to the Socialist Party. So far, his approach appears effective. Following his General Policy Speech on 14 January, the Socialist Party refrained from joining its left-wing allies in voting down the government, and the National Rally also abstained from opposition. Several factors explain this outcome. First, Bayrou has moderated the government’s stance on deficit reduction and offered significant concessions to the Socialists, particularly on key issues like pension reform. Second, dissatisfaction within the Socialist Party over perceived deference to its far-left allies has created internal tensions, making it more open to Bayrou’s overtures. However, this divergence may be short-lived, as the Socialists still rely heavily on far-left support in local and municipal elections. Third, Bayrou has expressed willingness to consider electoral reforms, including proportional representation, a longstanding demand of the National Rally. Finally, mounting pressure to pass a budget has dampened opposition from various factions. The budget proposal is currently under review in the upper house of Parliament, with a vote scheduled for 23 January. If approved, it will proceed to the National Assembly for further debate. Whether Bayrou can maintain his coalition’s fragile unity through this process remains to be seen.
For more information about FTI’s Public Affairs services in France, please contact [email protected]
The Brazilian government recently revoked a controversial Federal Revenue regulation requiring all financial institutions to report high-value transactions conducted via Pix—Brazil’s widely used instant payment system, which enables real-time transfers and has become a cornerstone of the country’s digital economy. The regulation mandated reporting of individual transactions exceeding R$5,000 and business transactions over R$15,000, sparking widespread misinformation and public outrage.
The backlash began with viral fake news falsely claiming the measure introduced a tax on Pix transactions. A video by Congressman Nikolas Ferreira, which received over 216 million views on social media, amplified confusion by suggesting the possibility of future Pix taxation, despite acknowledging the absence of current taxes. The capillarity of social media in Brazil is unforeseen and fraudsters exploited the situation, posing as Federal Revenue agents to demand fake fees and threatening ID number blocks for non-compliance.
Public criticism of the government’s handling of the crisis led President Lula to revoke the regulation on 15 January and call for better government coordination on sensitive policies. The Federal Revenue Service, which operates under Finance Minister Fernando Haddad’s jurisdiction, introduced the measure without prior consultation across key government offices. In a meeting with senior officials, Lula reprimanded Haddad and emphasized that policies impacting public trust must undergo prior review by the Civil House—a body akin to the US White House Chief of Staff’s office, responsible for coordinating and overseeing executive decisions across government ministries.
While the government and Central Bank have launched efforts to rebuild confidence—releasing statements and videos emphasizing that Pix remains “secure, confidential, and free”—the scandal underscores vulnerabilities in the administration, namely how ill prepared it is to deal with the outsized influence of misinformation in the digital age.
For more information about FTI’s Public Affairs services in Brazil, please contact [email protected]
“On 20th January, Donald Trump was inaugurated as the 47th U.S. President, once again commanding the world’s attention. With just five weeks until Germany’s Federal Election, his actions will significantly influence campaign dynamics. For Germany and Europe, this underscores the urgent need to strengthen competitiveness and reduce reliance on the U.S., particularly through robust financial policies. In this volume, we cover Germany’s financial policy visions, the EU’s role, tax debates in elections, contenders for the Finance Ministry, and Trump’s impact on banking stability. Let’s dive in and look ahead with optimism! Please read our full Germany Votes update here.”
During his inaugural address on 20 January, U.S. President Trump alleged that China is “operating the Panama Canal” – a neutral waterway controlled by the Panamanian Government – arguing that U.S. container ships were being “severely overcharged” when passing through the route connecting the Atlantic and Pacific oceans. China did not respond to Trump’s remarks, while the Panamanian maritime authority launched an audit to review the 25-year concession contract signed in 2023 with Hutchison Ports Panama, a subsidiary held by Hong Kong-headquartered CK Hutchison Holding.
Although U.S. officials have lodged complaints about CK Hutchison’s presence in Panama since 1997, Trump has increased scrutiny on the waterway through his claims that the Canal Treaty has enabled China to profit and take advantage of U.S. security guarantees, and reinforced perceptions that Hong Kong companies are in lockstep with Beijing.
On 10 January, prior to Trump’s inauguration, Republican lawmakers introduced legislation which opened avenues for the U.S. to take more assertive measures, including potentially initiating negotiations with the Panamanian Government with a view to assuming control of the Canal. For Hong Kong’s part, a potential termination of CK Hutchison’s capacity to operate parts of the distribution network within the Canal could affect the city’s ability to make large-scale infrastructure investments in areas perceived as geopolitically or economically strategic.
For more information about FTI’s Public Affairs services in Hong Kong, please contact [email protected]
The Colombian Ministry of Trade signed an interpretative note for Chapter 10 of the U.S.-Colombia Free Trade Agreement (FTA), in effect since 2012, making the U.S Colombia’s largest trading partner, accounting for 42% of Colombia’s foreign direct investment.
The adjusted section, Chapter 10, governs investments and disputes between companies and the state. The new note establishes that disputes will be resolved in local courts, removing international arbitration as an additional recourse impacting large arbitration scenarios such as the ICSID. It also grants each country the ability to enact public regulations, such as environmental policies, without violating the FTA or compromising investor protections. Furthermore, the note requires investors to provide concrete evidence in claims, preventing reliance on “unfounded expectations”. According to the Colombian government, this adjustment aims to enhance legal clarity and rule of law for businesses.
The Petro Administration emphasized that the adjustment does not constitute a renegotiation of the FTA. Also, it was noted that the measure aligns with the commercial policy of President Trump, safeguarding the agreement from future revisions.
Concerns have been raised within the business sector about the potential impact of these changes on foreign investors. The Colombo-American Chamber of Commerce (AMCHAM) warned that restricting access to international arbitration could limit investors’ rights to challenge local judicial decisions, undermining the principles of fair and equitable treatment. Additionally, the chamber highlighted that weakening protections against regulatory changes without compensation could deter foreign investment, which is crucial for Colombia’s economic growth.
For more information about FTI’s Public Affairs services in Colombia, please contact [email protected]
An unprecedented row over opposition speaking rights in the Dáil (Irish Parliament) caused an unexpected delay in appointing the new Taoiseach (Irish Prime Minister). Following weeks of negotiations post the November 2024 General Election, Fianna Fáil and Fine Gael agreed to once again form a government together. The Government will be supported by a group of regional independent TDs (Members of Parliament) to secure a comfortable majority. However, the incoming Government had a turbulent start as opposition members disrupted Dáil proceedings. After a lengthy delay, Fianna Fáil Leader, Micheál Martin, was finally appointed Ireland’s Taoiseach on Thursday, a day later than expected, winning the Dáil vote to become Taoiseach with the backing of his party and their coalition partners Fine Gael and Independent TDs. The vote was meant to take place on Wednesday but wasn’t able to go ahead as planned after a row erupted between opposition parties, the Government and the Ceann Comhairle (Speaker of the House) over opposition speaking rights. A decision by the Ceann Comhairle to allow a technical group, that includes a number of independent TDs backing the government, opposition speaking rights led to chaotic scenes in the Dáil on Wednesday. Opposition parties, presenting a united front, disrupted proceedings and triggered several suspensions leading to no vote on the Taoiseach taking place. Intense talks took place Wednesday night into Thursday morning before a solution was agreed, allowing the vote to take place on Thursday. This will be Martin’s second time in the role, having previously held the position from 2020-2022. Confirmation of the new coalition also marked the start of Fine Gael’s fourth consecutive time in government since the 2011 General Election, with Leader Simon Harris appointed Tánaiste (Deputy Prime Minister) and Minister for Foreign Affairs. Other Cabinet appointments included Paschal Donohoe returning to the role of Minister for Finance, Jack Chambers as Minister for Public Expenditure and Reform and Peter Burke retaining his position as Minister for Enterprise, Tourism and Employment.
For more information about FTI’s Public Affairs services in Ireland, please contact [email protected]
Speaking at the World Economic Forum, President Ramaphosa used the platform to outline South Africa’s priorities for its G20 Presidency and summit later in November. South Africa’s G20 Presidency is framed as a historic opportunity to promote solidarity, equality, and sustainable development on the global stage. The speech given by Ramaphosa not only emphasised Africa’s potential but also inspired hope, urging the G20 to work together with the African continent in driving Africa’s development agenda; through supporting initiatives such as the African Continental Free Trade Area (AfCFTA) and large-scale investments in infrastructure, skills development, and green industrialisation. Ramaphosa also used the platform to underscore a pressing priority for the Global South, which is the urgent need to secure sufficient support and financing for just energy transition (JET). He stressed that the South African government, through its G20 Presidency, will actively seek an agreement on increasing the quality and quantity of climate finance flows to developing economies, as agreed at various UN climate summits.
The emphasis on mobilising finance for JET and addressing climate-induced challenges showcases a commitment to sustainable development and holding the Global North accountable for its commitment on financially supporting developing economies in addressing the impact of global warming. Additionally, South Africa’s advocacy for fair allocation of global financial resources, like Special Drawing Rights, underscores the call for reform in global financial institutions.
For more information about FTI’s Public Affairs services in South Africa, please contact [email protected]
The Spanish government has reaffirmed its resolute commitment to AI during this legislative term, as highlighted in the event HispanIA: How artificial intelligence will improve our future. This high-profile gathering, attended by top government officials and industry leaders, including President Pedro Sánchez, served as a platform to outline Spain’s ambitious roadmap for AI innovation and governance.
Sánchez underscored Spain’s readiness to lead in AI governance. He stressed that Spain is uniquely positioned to drive ethical AI development, leveraging its strategic advantages to become a global player in the debate on AI governance from a humanistic perspective. He presented a comprehensive vision focused on modernizing industries, enhancing public services, promoting environmental sustainability, and strengthening security systems. A centerpiece of this strategy is the launch of ALIA, the government’s AI model designed to foster research and technological solutions in Spanish and co-official languages, to advance AI development in the Spanish-speaking world and enhance its integration into various sectors, with immediate applications in public healthcare and taxation.
Despite AI’s potential to reshape economic competitiveness, social cohesion, and national security, Sánchez also recognized its current limitations, highlighting persistent shortcomings, biases, and the challenges of ensuring equitable and ethical application. He harshly criticized that the “Silicon Valley oligarchy” is trying to use its omnipotent power over social networks to control public debate and, therefore, government action.
For more information about FTI’s Public Affairs services in Spain, please contact [email protected]
Expert Analysis |
Europe’s Leading Public Affairs Consultancy
With market leading teams and senior practitioners in all of Europe’s major markets, and offices across capital cities around the globe, the FTI Consulting team is Europe’s leading public affairs consultancy.
Our expert Public Affairs leaders in Brussels, the UK, Germany, Spain and France reflect on their respective regions’ political landscape in the year that’s passed, and share their insights on what lies ahead in the coming months.
Policy Pulse podcast
In the wake of the 2024 elections, hundreds of newly elected officials have assumed their roles, and our colleagues in Brussels are ready to explore what this means for the EU.
We’re excited to launch The Policy Pulse, our new podcast that unpacks key policies and decisions shaping the EU, with insights from rotating hosts covering topics like tech, health, finance, energy, and law.
Tune in to our first episode to hear from our experts!
EU to reshape ESG reporting: What Business Leaders need to know
The European Commission’s upcoming revision of ESG reporting rules, with a legislative proposal set to be published on 26 February, marks a pivotal moment in sustainability regulation.
Read our comprehensive analysis below and get ahead of these changes.
FTI Consulting UK Public Affairs Snapshot: AI Opportunities Action Plan
Last week, Matt Clifford’s AI Opportunities Action Plan was published, which was immediately accompanied by the government’s response.
But will Britain become an “AI superpower” as intended, or will Clifford’s plan fall victim to a Treasury struggling to balance the books? In our latest snapshot, FTI Consulting explores what’s been put on the table, what’s at stake and whether the government can afford it.
Irish Government’s Turbulent Start as Taoiseach Appointment Delayed
An unprecedented row over opposition speaking rights in the Dáil (Irish Parliament) caused an unexpected delay in appointing the new Taoiseach (Irish Prime Minister).
FTI Consulting Ireland’s Public Affairs Team looks at the government formation, the new Irish Cabinet and key ministerial roles, and the key policy areas and priorities which will set the legislative agenda for this government over the coming years.
APRI launch event
Last week, our colleagues in Brussels hosted Asociación de Profesionales de las Relaciones Institucionales (APRI) in their office for the launch of the 2025 activities in Brussels!
The event was attended by their partners, as well as public and institutional representatives. Our Brussels-based Senior Advisor Pablo López-Alvarez opened the event with a welcome speech, followed with our Head of Public Affairs Spain Carlos Ochoa who highlighted Spain’s strong commitment to APRI and how APRI’s role in Brussels is crucial for shaping constructive dialogues.
Upcoming Conferences, Elections and Webinars
- 25 January: Presidential election (Greece)
- 26 January: Presidential Election (Belarus)
- 29 January: Senead election (Ireland)
- 09 February: Parliamentary election (Kosovo)
- 09 February: General election (Ecuador)
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