Heat-wave politics

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Europe's blistering summer is raising awkward questions for global politics.

The temperature started rising earlier than normal this year. Ocean waters hit fresh records, rainfall disappeared, and drought settled in from the UK to Greece.

A blast of heat waves has baked the continent, disrupting life for businesses and workers in areas from transportation and power grids to schools, hospitals and other public services.

The heat forced officials to close the top of the Eiffel Tower and shut down the Acropolis. Thousands of tourists have been evacuated from wildfires that imperil Europe's $2 trillion travel industry. In some regions, it's been too hot to work, too uncomfortable to ride the subway and too steamy to sleep.

At the same time, the geopolitics of climate have changed and many governments and businesses are easing off their green ambitions, taking a cue from President Donald Trump's lead.

For the second time, Trump is withdrawing the world's largest historical emitter from the landmark Paris Agreement on climate change.

The leaders of France, Italy and Poland have meanwhile pushed back on the European Union's 2040 climate plan, citing a need to balance decarbonization with competitiveness. German Chancellor Friedrich Merz criticized proposed EU electric-vehicle mandates.

Faced with far-right pressure, businesses are backing away from transition ambitions, while voters seem more animated by spiraling costs and concerns that green bureaucracy is smothering the economy.

It all presages a tricky COP 30 climate summit in November, when the Brazilian organizers will try to convince global leaders — and the public — their economic futures will rise and fall with the green transition.

Even in a time of climate emergency, that's a tough sell for politicians led by President Luiz Inácio Lula da Silva, currently engaged in a deepening standoff with Trump.

The forecast, for Europe and elsewhere, looks increasingly grim. — Joe Wertz

A still life of pedestrians during a heatwave. Photographer: Tonje Thilesen/Bloomberg

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Pro-government supporters march during an International Workers' Day event in Caracas on May 1. Photographer: Ivan McGregor/Anadolu/Getty Images

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The UK and India plan to sign their long-awaited free-trade agreement today, marking the biggest trade pact secured by a British government since Brexit five years ago.

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On this episode of Trumponomics, we discuss whether the Fed's Powell has overestimated the risk of inflation stemming from the US trade war. Listen on Apple, Spotify, or wherever you get your podcasts.

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Chart of the Day

South Korea's economy returned to growth last quarter after a modest contraction in the previous period, signaling resilience even as trade tensions simmer and domestic financial risks deepen. Sentiment got a boost after a prolonged period of political turmoil following Yoon Suk Yeol's impeachment was largely put to rest with Lee Jae Myung's election as president in early June.

And Finally

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