Global Public Affairs Newswire – 25 July 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, Germany, Australia, the United Kingdom, India, Colombia, France, Brazil, Ireland, Spain and Malaysia. 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
Trump Touts New Trade Deals, Speaker Johnson Hits ‘Escape’
- New agreements with Indonesia and the Philippines establish rates for exports to the U.S. at 19%. Indonesia agreed to buy $3.2 billion of U.S. aircraft, $4.5 billion of agricultural products and $15 billion of U.S. energy, including LNG. Indonesia will pursue exemptions for exports of palm oil and nickel as negotiations on certain details continue.Japan will avoid tariff rate hikes scheduled for August 1. Instead, a new 15% rate will be applied to Japanese exports – including autos and auto parts. Japan is pledging $550 billion in U.S. investments and new purchases of American agriculture products.
- Japan will avoid tariff rate hikes scheduled for August 1. Instead, a new 15% rate will be applied to Japanese exports – including autos and auto parts. Japan is pledging $550 million in U.S. investments and new purchases of American agriculture products.
- The U.S. House adjourned abruptly on Tuesdayas a bloc of Republicans demanded the Trump administration release files related to disgraced financier Jeffrey Epstein. President Trump’s efforts to put a lid on the issue have created a rift with his political base that could pose broader challenges for a fall legislative session that includes a September government funding cliff.
“Treasury Secretary Scott Bessent argued for ‘extra time’ with the freeze on reciprocal tariffs to close a series of emerging deals, and he’s delivered. The agreement with Japan, America’s 5th largest trading partner, gives both parties something to sell as a win. With wind at his back, President Trump is likely to take a more aggressive posture as higher rates for many countries go into effect August 1. But favorable conditions may be fleeting, as earnings, inflation and a fractious Congress suggest choppy waters ahead.”
Cory Fritz
Senior Managing Director, Washington D.C.
For more information about FTI’s Public Affairs services in the Americas, please contact [email protected].
EU-China Summit yields limited results amid persistent tensions
- EU and Chinese leaders held the 25th EU-China Summit on 24 July in Beijing, covering trade, geopolitical, and climate issues. The Summit marked the first in-person meeting between European Commission President von der Leyen and Chinese President Xi Jinping under the Commission’s new mandate.
- The Summit produced no substantive deals on major bilateral trade and investment issues, leaving key disputes unresolved, including the EU’s trade deficit with China and EU anti-subsidy duties on Chinese EVs. The main agreement was a joint statement on climate cooperation, reaffirming both sides’ existing commitment to address climate change, alongside a new ‘export supply mechanism’ to ease EU concerns about Chinese export controls on rare earths.
Significant geopolitical disagreements remain, particularly regarding China’s stance on the Russia-Ukraine conflict. The EU openly urged China to address its economic and industrial ties with Russia, following the 18th sanctions package that included measures against Chinese entities. Overall, the lack of major outcomes underlines unresolved trade and political frictions, with bilateral tensions likely to persist.
“European Commission President von der Leyen’s warning that EU-China relations were at “an inflection point” signals that the EU may be willing to take a more assertive stance on China if solutions are not found for the EU’s long-standing complaints.”
Samuel Wejchert
Consultant
For more information about FTI’s Public Affairs services in the EU, please contact [email protected]
China-U.S. engagement adjusted amid persistent frictions
- China’s exports of rare earth magnets to the U.S. surged in June after months of subdued flows. Beijing has framed recent adjustments as steps toward transparency and regulatory normalization, while the rebound is widely viewed as part of broader efforts to stabilize trade in strategically sensitive sectors. A third round of bilateral talks, scheduled for next week in Stockholm, is reportedly to focus on extending the current tariff truce and expanding discussions to include sanctions compliance and industrial policy.
- The U.S. has approved renewed exports of Nvidia’s H20 AI chips to China, reversing an earlier ban. Framed as part of a broader trade understanding, the decision reflects selective openness in high-tech commerce. Nvidia CEO Jensen Huang’s recent visit to Beijing highlighted mutual commercial interests amid tightening regulatory oversight.
- Despite trade gestures, core tensions remain. The U.S. continues to press for restrictions on Chinese technology in undersea telecom infrastructure, citing national security concerns. Meanwhile, reports of exit bans involving foreign nationals in China have triggered renewed concerns over travel risks and operational uncertainty, complicating business engagement and people-to-people ties.
“While recent trade moves suggest a tactical willingness by both sides to avoid escalation, the underlying logic of strategic competition remains in place. The Stockholm talks may reflect a shared interest in managing friction, but they do not yet signal a structural reset. Beijing continues to frame cooperation around mutual benefit and market openness, while Washington remains focused on national security and technology edge. The current moment reflects a fragile equilibrium – transactional progress coexisting with structural distrust. The real test lies ahead: whether both sides can institutionalize guardrails and selectively compartmentalize disputes, or slide back into cycles of reactive friction driven by politics and geopolitics.”
Rachel Hsueh
Head of Strategic Communications, China
For more information about FTI’s Public Affairs services in China, please contact [email protected]
Chancellor Merz hosts 61 CEOs at the Federal Chancellery to mark the launch of a new “Made for Germany” initiative
- The summit brought together top executives from Germany’s largest companies, including Siemens, Deutsche Bank, SAP, Volkswagen, and BASF , who collectively pledged €631 billion in investments by 2028. Although a significant share of these funds had already been budgeted, a “three-digit billion euro” portion was confirmed as new capital for investments in Germany. The initiative is designed to revitalize the German economy, which remains stuck in prolonged stagnation.
- “Made for Germany” aims to send a global signal of renewed confidence in Germany as an investment location. The group, representing nearly one-third of German GDP, called for less regulation and faster decision-making from the government. Chancellor Merz welcomed the initiative as a “powerful sign that Germany is back”, while Finance Minister Lars Klingbeil (SPD) highlighted it as a reward for the coalition’s pro-growth agenda. However, critics from the opposition and labor unions questioned the initiative’s actual impact and warned against using it as a pretext for broad tax cuts. Moreover, small and medium-sized enterprises, often described as the backbone of the German economy, were not actively included in the launch event, raising questions about the broader inclusiveness of the strategy.
- While international analysts largely view the announcement as a positive signal to markets, the stakes for Merz’ government are high. After years of economic stagnation and deteriorating infrastructure, public expectations are mounting. The success of “Made for Germany” will serve as a litmus test for the new coalition’s ability to turn pro-business rhetoric into measurable growth. Failure to convert investment pledges into tangible improvements could quickly erode the fragile optimism that now surrounds the initiative.
“The ‘Made for Germany’ initiative marks a shift in the tone between business and politics. But the federal government must now prove that this optimism is justified by accelerating regulatory reforms and ensuring the promised investments translate into real, long-term growth, not just short-lived effects or headlines. Involving SMEs and even international capital will be crucial to long-term credibility.” (Dr. Konstantin Zech, Senior Director Public and Government Affairs Berlin)."
Dr. Konstantin Zech
Senior Director, Public and Government Affairs Berlin
For more information about FTI Consulting’s Public Affairs services in Germany, please contact [email protected]
Australia’s 48th Parliament kicks off
- The 48th Australian Parliament has commenced this week, with the traditional pomp and ceremony to mark the occasion. The Labor government, which was re-elected with an increased majority in May, has outlined its legislative agenda, including key policies such as climate change action, cheaper childcare, aged care reforms, housing affordability and economic reform.
- The Government’s priorities in the first fortnight of sitting include securing a 20 per cent student debt cut and strengthening childcare safety laws after recent revelations of the poor standards of industry. Meanwhile, the Coalition Opposition has a hard road ahead in the current Parliament. With only 43 out of 150 lower house Members and 27 out of 76 Senators, its focus is firmly on rebuilding and holding the Government to account.
- In search of new thinking and in response to criticism and concerns of Australia’s declining productivity, the Government has announced an economic reform roundtable, comprising Government, business and experts to cover economic resilience, skills, new technologies, healthcare reform and clean energy. The roundtable will be held in mid-August and will seek to address key issues of living standards including productivity, resilience and budget sustainability.
- Following Prime Minister Anthony Albanese’s visit to China last week, in conjunction with Trump’s tariffs remaining a major concern for Australian industry, the strategic balance of US/China relations will be watched closely by Australian voters and some in the media.
“As the 48th Parliament gets underway, Australian voters are after financial security, higher quality of social services, an inclusive housing market and greater self-sufficiency. The re-elected Labor Government needs to respond to these calls while remaining firmly focussed on the geopolitical issues that continue to reverberate around the region and the world.”
Ben Hamilton
Senior Managing Director, Australia
For more information about FTI’s Financial Services Public Affairs support in Australia, please contact [email protected].
Chancellor of the Exchequer to prioritise reducing the UK’s long-term borrowing costs
- The Chancellor of the Exchequer, Rachel Reeves, has refused to rule out introducing a ‘wealth tax’ to generate revenue for the Government and address the growing debt burden. Reeves has found herself in an increasingly difficult fiscal and political position- UK economic growth is sluggish, the most recent inflation figures are higher than the Government had hoped, and fundraising plans set out in last year’s Budget have fallen short. Political pressure from Government’s own backbench MPs also forced the scaling down of planned welfare cuts and a major policy U-turn on winter fuel payments.
- Reeves reiterated in her Mansion House speech on 15 July that she will be sticking to the fiscal rules set out last October in this year’s Autumn Budget as she seeks to bring down the UK’s deficit. Further, Reeves told the House of Lords Economic Affairs Committee that the Government was prioritising economic growth as the best way to reduce the UK’s debt burden, and that there was nothing “progressive” about high borrowing.
- However, with this year’s Budget quickly approaching, sticking to these rules will be challenging without tax rises. Reeves has modified lines on tax increases to only rule out taxes that ‘hit the average worker’, further intensified rumours of wealth taxes, a pensions tax, and other ‘stealth’ taxes. Reeves and the Government will be hoping for better news and economic stability in remaining months before the Budget.
“The ability of the Chancellor to stick to her fiscal rules is looking unattainable without tax rises in the next Budget. But she should be wary of wealth taxes. They are likely to impact a highly mobile population and have a knock-on impact on the government’s goals of UK growth and global competitiveness. She should equally be wary of changes to pensions tax at a time when the government is looking at pensions adequacy and wanting pension funds to invest more in the UK.”
Nirmalee Wanduragala
Managing Director, United Kingdom
For more information about FTI’s Public Affairs services in the United Kingdom, please contact [email protected].
India's Market Watchdog Faces Heat as Jane Street Resumes Trading
- New York-based trading giant Jane Street has re-entered Indian markets after India’s market regulator SEBI barred it for alleged “intra-day index manipulation,” resulting in $4.3 billion in unlawful gains. The firm, denying wrongdoing, called it index arbitrage and deposited $567 million in escrow. The lifting of curbs follows SEBI’s 105-page interim order this month, which deemed Jane Street’s trading manipulative. The case pits the firm against regulators in the world’s largest equity derivatives market.
- The case has also intensified scrutiny of SEBI’s surveillance standards. Former SEBI Chair Madhabi Puri Buch’s tenure was marred by a court-ordered investigation and questions over potential conflicts of interest involving her foreign fund linkages.
- India now accounts for nearly 60% of global equity derivatives volumes. Jane Street’s exit hit Indian markets hard: options volumes fell 17%, and index futures dropped nearly 24%. The firm has resumed trading after assuring SEBI it would not trade in options. Amid concerns over passive investing, algorithmic trading, and institutional dominance in index construction, the case could be a milestone in India’s market regulation narrative.
“India’s equity market has reached global scale, but its credibility depends on transparent and predictable regulation. As scrutiny deepens, the focus must shift from reactive enforcement to institution-building, giving investors confidence that India is not just growing fast but governing well.”
Amrit Singh Deo
Senior Managing Director, India
For more information about FTI’s Public Affairs services in India, please contact [email protected].
President Petro calls for NATO break, marking foreign policy shift
- During the Gaza Summit held in Bogotá, President Petro proposed that Colombia reconsider its relationship with NATO and temporarily suspend coal exports to Israel, voicing strong criticism of the roles played by Europe and the United States in the conflict.
- The remarks drew both domestic and international reactions, as they signal a potential departure from Colombia’s traditional foreign and defense policy. Since 2017, Colombia has been NATO’s first global partner in Latin America, fostering cooperation on interoperability, defense modernization, and security training with allied nations.
- President Petro also expressed concern over the United States’ limited engagement with CELAC as a regional bloc, suggesting a preference for bilateral over multilateral dialogue. These statements point to growing diplomatic frictions and hint at a possible reorientation toward a South–South agenda, with Colombia exploring closer ties with Latin America and Africa over traditional Western partnerships.
“President Petro’s remarks signal an effort to reposition Colombia as a political voice in the Global South, using symbolic foreign policy gestures to redefine leadership and gain regional influence. His stance on Palestine and NATO reflects a broader use of diplomacy as domestic messaging. For international companies, the takeaway is precise: foreign policy decisions may increasingly shape market signals, affect the social perception of corporate presence, and influence access to government dialogue. In sectors like energy, infrastructure or defense, reading diplomatic shifts as part of the business environment is key to navigating influence and positioning with foresight”.
Julia Gomez
Head of Public Affairs, Colombia
For more information about FTI Consulting’s Public Affairs services in Colombia, please contact [email protected].
Bayrou’s 2026 Budget reveal: a strategic offensive ahead of a high-risk political season
- On 15 July, France’s Prime Minister François Bayrou launched a high-stakes fiscal adjustment plan to save €43.8 billion in response to rising debt and EU pressure. Framed as “Le moment de verité” (“the moment of truth”), the press conference marks the start of a tense political season, with far-right MPs threatening to submit a no-confidence motion over possible tax hikes.
- Bayrou unveiled a two-pillar plan: a strict spending cap from 2026 and a pro-growth agenda. Measures include scrapping two public holidays, freezing benefits, cutting civil service jobs, and introducing new “solidarity contributions”. Tax fraud efforts, SME support, and trade protection were also highlighted to stabilise debt by 2029. Bayrou’s predecessor, Michel Barnier, was voted out of office in late 2024 after presenting an austerity-minded budget.
- Opposition leaders condemned the plan as unjust and provocative. They criticised measures like holiday cuts and perceived favouritism toward the wealthy. Far-right MPs, whose abstention is necessary for government survival, threatened to take action and bring down the government if the presented measures were not changed. Despite outrage, Bayrou defended the necessity of his proposals, warning France faces a cliff-edge without decisive, shared sacrifice.
“By unveiling his fiscal roadmap in July, when Parliament is in recess, Bayrou has attempted to buy time and space to shape the narrative before real negotiations begin in the autumn. His plan is bold but tactically timed to avoid immediate parliamentary backlash despite almost unanimous opposition. One thing appears to be certain: if Bayrou doesn’t adjust his plan, the government might not survive through to 2026.”
Gregory Grellet
Senior Managing Director and Head of the Government Relations, Regulatory, and Public Affairs practice, Paris
For more information about FTI’s Public Affairs services in France, please contact [email protected]
Lula administration debates reciprocal trade measures against US
- After submitting a formal letter to the U.S. reiterating its interest in negotiations, and receiving no response from President Trump, Lula’s administration is debating possible reciprocal trade measures. For example, the suspension of patents — a move that could significantly impact American chemical and pharmaceutical companies with strong presence in Brazil. Lula’s administration has concluded that Trump is unresponsive to traditional international trade remedies, such as taking the dispute to the WTO and also litigations have been considered from both US and Brazilian companies questioning the legality of the tariffs and contracts. By targeting issues that are critical to U.S. industry, they believe Trump will be pressured and review his stance.
- Vice President and Industry Minister Geraldo Alckmin is pursuing a diplomatic approach to U.S. trade tensions. After consulting with Brazil’s business sectors, he is prepared to offer tariff and non-tariff reductions for U.S. products in exchange for easing planned U.S. tariffs on Brazilian exports. While President Lula maintains a strong political stance, Alckmin has focused on pragmatic negotiations, aligning with the opposition’s view that Brazil should avoid retaliation. By keeping talks economic rather than political, he ensures any resulting benefits strengthen Lula’s administration rather than boosting rivals like São Paulo Governor Tarcísio de Freitas, Lula’s main challenger in 2026.
- Trump’s strategy has backfired: the Brazilian Supreme Court has taken precautionary measures against former President Bolsonaro, placing him under electronic monitoring, restricting his circulation in public and banning him from social media, his main political tool. Meanwhile, Lula has seized the opportunity to blame the Bolsonaro clan for provoking the U.S. tariffs, and to position himself as a defender of Brazilian sovereignty ahead of the 2026 presidential elections. The strategy has proven successful, with Lula’s popularity rising from 40% to 43% in the past weeks.
“It is important to note that possible litigations have little impact on Trump, who appears largely indifferent to international trade rules. In contrast, pressure from U.S. companies has historically been more effective in reversing protectionist measures imposed by his administration. However, if President Lula decides to suspend patents, the move could have long-term consequences—potentially discouraging foreign direct investment in Brazil. While the left is already looking ahead to the 2026 presidential race, the opposition remains fragmented and is struggling to distance itself from the Bolsonaro family, which continues to face mounting legal consequences for its past actions.”
Raquel Rocha
Head of Public Affairs, Brazil
For more information about FTI’s Public Affairs services in Brazil, please contact [email protected]
Ireland publishes its National Development Plan and Economic Statement
This week, Ireland published two key policy documents that will shape the country’s economic and social development in the coming years.
- The first, the National Development Plan, outlines a record investment of €275.4 billion over the period 2026-2035, with significant allocations for energy (€3.5 billion in equity), water (€12.2billion) and transport (€24.3 billion) projects. This is the largest ever capital investment plan in the history of the State, with sectoral capital allocations of €102.4 billion for the years 2026 to 2030.
- The second, the Summer Economic Statement, provides an update on the country’s economic outlook and fiscal strategy. The statement notes the ‘front-loading’ of sales to the US in advance of tariffs, the impact tariffs could have on the Irish economy and public finances and that Ireland’s budgetary surplus position being “almost entirely due to a handful of corporate taxpayers”. The government has announced a budgetary package of €9.4 billion for 2026, with a focus on investment in infrastructure and economic resilience.
“Ireland’s recent policy announcements suggest a growing recognition by the government of the country’s exposure to external factors, from global trade tensions to economic shifts and commercial decisions. The government is taking a twin-track approach, attempting to mitigate the risks associated with this exposure while also addressing the pressing domestic challenges that have been holding Ireland back, from infrastructure deficits to social and economic inequalities. By investing in strategic areas like energy, transport and housing, and prioritising fiscal sustainability, the government is aiming to build a more resilient economy and attractive environment for businesses.”
Sam Moore
Senior Director, Ireland
For more information about FTI Consulting’s Public Affairs services in Ireland, please contact [email protected].
Parliament rejects anti-blackout Decree despite industry support
- Despite initial provisional enforcement, Royal Decree-Law 7/2025 was rejected by Parliament on 22 July, annulling urgent measures introduced after the April blackout. The rejection halts reforms aimed at reinforcing grid stability, storage integration, and electrification, and forces the government to consider how and when to reintroduce key provisions.
- The rejection came despite a united front from leading energy and industrial trade associations, which urged Parliament to back the decree, citing risks to grid stability and national competitiveness. However, firm opposition from the main opposition party (People’s Party) and the defection of key former government allies ultimately blocked the government from securing the required majority.
- Key provisions now suspended include reduced transmission charges for electro-intensive industries, streamlined permitting for renewable projects, and new rules to support storage and demand aggregation. It also leaves unresolved several time-sensitive issues, including project delays linked to legal bottlenecks, pending grid access rights, and the urgent need to scale system flexibility.
“The rejection of Royal Decree-Law 7/2025 highlights the government’s limited room to maneuver in an increasingly fragmented Parliament, even in the face of broad industrial support and pressing infrastructure needs. What was framed by business as a strategic and technical response to a national blackout has ultimately become a political casualty, at the cost of delaying critical upgrades to Spain’s energy system. The government faces pressure to repackage these core provisions, either as individual legislative proposals or in a revised decree, responding to opposition demands for a more consensual approach.”
Marina Cubedo Vicén
Senior Director and Public Affairs Energy Lead, Spain
For more information about FTI’s Public Affairs services in Spain, please contact [email protected].
Anwar announces cash handouts, various measures to address rising cost of living
- Prime Minister Anwar Ibrahim announced a MYR100 (USD24) cash handout for all Malaysians over 18 and promised a small drop in fuel prices. Prices for the widely used RON95 petrol will drop from MYR2.05 (USD0.48) to MYR1.99 (USD0.46) per litre for Malaysians, while foreigners will continue paying market rate. With the cash handout, the government will be spending MYR15 billion in cash aid in 2025, up from MYR13 billion. Economists say the move could support household spending but warn that without new revenue sources, it risks worsening fiscal pressures.
- Announcing the above measures, Anwar said, “I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far.” The Prime Minister is seeking to calm public anger ahead of a mass protest in Kuala Lumpur on 26 July, calling for his resignation over cost-of-living pressures. The protest is being led by former Prime Minister Mahathir Mohamad – a long-term critic of Anwar since the former sacked the latter as his deputy in 1998 – alongside various opposition leaders.
- The additional subsidies came as a surprise as a majority of Malaysians are eligible for it, even though Anwar had promised more targeted, refined subsidies to cut government spending. Fitch Ratings warned that delays or weak progress on subsidy rationalisation could threaten Malaysia’s goal of cutting its deficit to 3% by 2028, as government debt is projected to stay high at 76.5% of GDP in 2025.
“While Anwar has enjoyed popularity on the international stage for his efforts to advance ASEAN unity and elevate Malaysia’s role as a prominent Global South player, his administration is simultaneously grappling with significant public unrest due to the rising cost of living. The government is perceived to have not done enough to address the average household’s financial concerns and it remains to be seen whether the latest round of handouts and economic measures will buoy public confidence in the government. Putrajaya’s tendency to resort to cash handouts to address economic concerns has tended to backfire on the government, as it is associated with a failure to tackle root causes.”
Rachel Yeo
Director, Singapore
For more information about FTI’s Public Affairs services in Malaysia, please contact [email protected].
Expert Analysis |
Mansion House – Reeves banks on the City to power growth
At Mansion House yesterday evening, Rachel Reeves delivered a bold pitch to reset the UK’s financial services agenda — loosening regulation, boosting competitiveness, and courting the City as a cornerstone of Labour’s growth strategy. But with economic headwinds mounting and political pressure rising, can her reforms truly revive Britain’s global financial standing, or will it prove to be a damp squib?
How Boards Can Lead Through Fragmented Global Trade
New leadership of major global economies, among other shifting geopolitical trends, has redefined the global trade landscape, and the disruptions show no sign of slowing down.
Senior Managing Director, Cory Fritz, shares four expert recommendations for how companies and their boards can approach the current political and economic landscape.
Madrid Roundtable Event
Our Public Affairs experts in Spain hosted an insightful roundtable breakfast event with Juan Lobato, Member of the Senate of Spain, to explore the challenges and opportunities facing businesses across Spain and Europe.
Throughout the event, the group delved into current political dynamics and identified pathways for constructive collaboration between the public and private sectors.
The CSRD Delay Buys Time—Use It To Get Ahead
The Corporate Sustainability Reporting Directive (“CSRD”) delay offers a critical window to reflect and sharpen your sustainability strategy. Standing still isn’t neutral—it’s a missed opportunity. This pause begs the question: What should those companies do now as they wait?
Our experts outline three key recommendations for keeping your momentum going amidst this delay.
Upcoming Elections
- 17 August: General election (Bolivia)
- 08 September: Parliamentary elections (Norway)
- 14 September: State elections (Russia)
- 16 September: General election (Malawi)
- 27 September: General election (Seychelles)
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