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The hard-line conservative House Freedom Caucus has released its own proposal to enact President Donald Trump’s agenda via the budget reconciliation process.

The plan would pair a debt ceiling increase and increased border security funding with deep spending cuts through welfare work requirements and rollbacks on progressive Biden administration initiatives.

It’s a sign that House GOP leaders have still not found consensus within the conference on a path forward, despite ambitious plans to get a bill through the chamber at the end of the month.

House and Senate Republicans are aiming to use their congressional majorities to pass a massive conservative policy overhaul via the budget reconciliation process.

By reducing the Senate’s threshold for passage from one-third to a simple majority, where the House already operates, Republicans will be able to enact Trump’s plans while entirely skirting Democratic opposition, provided the items included relate to budgetary and other fiscal matters.

GOP lawmakers want to include a wide swath of Trump priorities from more funding for border security to eliminating taxes on tipped and overtime wages.

But fiscal hawks have also demanded the package be deficit-neutral or deficit-reducing. Congressional leaders can afford little dissent with their razor-thin majorities and guaranteed lack of Democratic support.

The Freedom Caucus’s plan would follow through on conservatives’ pleas for deep spending cuts, pairing $200 billion in annual new spending for the border and national defense with $486 billion in spending cuts for the same 10-year period.

It would also include a $4 trillion increase in the debt ceiling, something Trump demanded be part of Republicans’ fiscal negotiations.

Spending cuts would be found in codifying rollbacks to the Biden administration’s electric vehicle mandates and imposing Clinton administration-era work requirements for certain federal benefits, among other measures.

The legislation leaves out one critical component of Trump’s reconciliation goals – the extension of his 2017-era Tax Cuts and Jobs Act.

House GOP leaders and Republicans on the Ways & Means Committee had pushed for them to be included alongside border security, debt ceiling, defense and energy measures in one massive reconciliation bill. 

They argued that leaving them for a second bill, which the House Freedom Caucus plan would do, will allow Trump’s tax cuts to expire at the end of this year before Congress has time to act.

The two-track approach is also favored by Senate Republicans, who are moving forward with their own plan this week.

Conservatives on the House Budget Committee pushed back against GOP leaders’ initial proposals for baseline spending cuts to offset new spending in the reconciliation plan, forcing the House to punt on plans to advance a resolution through the House Budget Committee last week.

Senate Budget Committee Chair Lindsey Graham, R-S.C., later announced plans to advance his own proposal through his committee by Thursday.

”The biggest loser this weekend wasn’t at the Super Bowl, but rather the American people,’ Rep. Andy Ogles, R-Tenn., told Fox News Digital. ‘The clock is ticking, and we are no closer to a budget deal, which is why the House Freedom Caucus released our Emergency Border Control Resolution Budget to secure our border and address Trump’s America First Agenda.’

House Freedom Caucus Chair Andy Harris, R-Md., said in a statement, ‘Given the current delay in the House on moving a comprehensive reconciliation bill, moving a smaller targeted bill now makes the most sense to deliver a win for the President and the American people.’

Rep. Michael Cloud, R-Texas, said, ‘The American people voted for Donald Trump to see action – not for Congress to sit on its hands while our short window to pass his America-First agenda closes.’

Supporters of the two-bill approach have said it would secure early wins on issues Republicans agree most on while leaving more complex matters like tax cuts for the latter half of the year.

This post appeared first on FOX NEWS

President Donald Trump’s suggestion that Palestinians should leave Gaza to rebuild their lives after months of war has triggered a wave of reactions, exposing deep divisions within the enclave and across the Arab world.

Speaking alongside Israeli Prime Minister Benjamin Netanyahu at the White House last week, Trump outlined his vision for Gaza’s future, describing it as ‘the Riviera of the Middle East.’ His proposal to relocate 1.8 million Palestinians sparked outrage among Palestinian leaders and drew mixed reactions from Gazans.

While some Gazans have rejected emigration, others see it as their only hope.

‘I’m asking Donald Trump himself to relocate us as he suggested. And I’ll be the first one to go,’ one young man told the Center for Peace Communications team in Gaza during a camera interview. The man described his bleak reality, saying, ‘I want to leave because there’s no life left here. Life here is gone. I mean, just look around you.’

Another Gazan called on neighboring Arab countries to provide an escape route. ‘To our brotherly Egyptian and Jordanian people and King Abdullah—we hope they open the crossing for the youth who are leaving, for the wounded, for the sick, and the elderly who need treatment.’

Jordan’s King Abdullah is set to meet with President Trump on Tuesday, having rejected his plan for annexing Gaza and displacing Palestinians, Reuters reported.

The Palestinian Center for Policy and Survey Research poll conducted before the October 7 terror attacks found that 31% of Gazans were already considering emigration—44% among young people. The most popular countries were Turkey, followed by Germany, Canada, the United States and Qatar.

The poll’s authors said, ‘The main drivers seem economic, political, educational, security and concerns about corruption.’

Joseph Braude, founder and president of the Center for Peace Communications, told Fox News Digital that the number has grown significantly due to the ongoing devastation. ‘Through our daily contact with Gazans from all walks of life across the coastal strip, we have seen that proportion grow, amid the destruction of the present war, to a substantial majority of the population.’

Ayman Khaled, a Palestinian journalist, echoed similar sentiments, pointing to the grim prospects for rebuilding Gaza after months of relentless Israeli bombardment. ‘Gaza will need to go through a very long period of reconstruction. In that long period of time, where will the youth go? Where will the wounded go? We have more than 100,000 wounded. Even before the last war, a stream of people were leaving Gaza—workers, students, business people. That’s how it looked then. Now, those trends will double. There is no hope for the reconstruction of Gaza, not in a year nor 10 nor 15.’

He also warned that as long as Hamas remains in power, cycles of violence will continue, pushing more people to flee. ‘If Hamas remains on the scene, this will keep happening. Every day, we’ll have new killings. After every battle, they say they are victorious—but what is this victory? If we don’t seriously address the issue of Hamas leaving the political scene, we cannot talk about anything else. If Hamas remains, people will emigrate, whether willingly or unwillingly.’

Hamas described Trump’s plan as a ‘recipe for creating chaos and tension in the region,’ and for many Gazans, leaving is unthinkable. Speaking to The Associated Press, Mustafa al-Gazzar, a displaced Gazan, dismissed the idea of leaving. ‘You think you’ll expel me abroad and bring other people in my place? I would rather live in my tent, under rubble. I won’t leave. Put that in your brain.’

Amna Omar, 71, who has been sheltering in central Gaza, was equally defiant. ‘Gaza is our land, our home. We as Gazans… I don’t want to die in Egypt.’

Another woman in Deir al-Balah told Israeli news agency TPS-IL, ‘We clung to our destroyed homes and we clung to the soil of Palestine.’ While voluntary emigration has been quietly discussed for years, Trump’s endorsement has turned it into a divisive issue. Arab governments, wary of being seen as complicit in Palestinian displacement, have been quick to condemn it.

However, with Gaza in ruins and no reconstruction in sight, the debate over emigration is no longer theoretical. The question is not whether Gazans want to leave, but whether they will have the opportunity to do so.

A Gazan man interviewed on-camera by the Center for Peace Communications said ‘In the end, people will accept reality. They’ll emigrate because they want to live. They want to live in a country that protects and supports them. A country where you can hold your head up high. If our country isn’t looking out for us, where should we go?’

Reuters and The Associated Press contributed to this article.

This post appeared first on FOX NEWS

McDonald’s on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.

But shares of the company rose more than 4% in morning trading as executives predicted sales would improve in 2025.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates.

But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.

McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald’s U.S. same-store sales tick up in the third quarter.

However, analysts have warned that value meals only work if customers also add menu items that aren’t discounted to their orders. McDonald’s executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.

The biggest hit to McDonald’s U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

However, in the days following the news of the outbreak, traffic at McDonald’s U.S. restaurants fell steeply, particularly in the states affected.

U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.

McDonald’s expects its U.S. sales to recover by the beginning of the second quarter, executives said.

“I think right now what we’re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,” CEO Chris Kempczinski said on the company’s conference call. “So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.”

The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.

Outside the U.S., sales were stronger. Both of McDonald’s international divisions reported same-store sales increases, bolstering the company’s overall performance.

The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.

McDonald’s international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.

McDonald’s reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.

Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald’s earned $2.83 per share.

Looking to 2025, the first quarter is expected to be the low point for McDonald’s same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.

For the full year, McDonald’s plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company’s international developmental licensed markets, including about 1,000 new restaurants in China.

Including its investments in restaurant openings, McDonald’s plans to spend between $3 billion and $3.2 billion this year on capital expenditures.

The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.

This post appeared first on NBC NEWS

Shares of GameStop and MicroStrategy were on the rise Monday after Ryan Cohen, CEO of the video game retailer, posted a photo with Michael Saylor, co-founder and chairman of the largest corporate holder of bitcoin.

GameStop, day traders’ favorite meme stock, climbed more than 7%, while MicroStrategy, which recently rebranded as “Strategy,” saw shares rising as much as 4%. Cohen uploaded the photo over the weekend on X, sparking speculation that GameStop is plotting another strategy around crypto. MicroStrategy shares last traded up 1%.

The video game company had expanded into digital services in recent years by offering crypto wallets that let users manage their crypto and nonfungible tokens. However, the firm shut the service down in 2023, citing “regulatory uncertainty.”

Cohen, co-founder of Chewy, bought shares in GameStop in 2020 and joined the board in 2021 as GameStop became one of the key stocks in the WallStreetBets meme trading mania.

His e-commerce experience fueled hopes that he could help modernize the brick-and-mortar retailer, but the company still struggles to adapt to changing spending habits by gamers. Trading in the stock remains highly volatile and speculative as meme stock personality “Roaring Kitty” continues to spur buying from retail investors.

Saylor’s Strategy also has a fan base of retail investors as the firm touted its aggressive bitcoin-buying strategy. In the past year, the firm has raised billions of dollars through the sale of stock or convertible bonds for the sole purpose of purchasing more bitcoin.

Last week, Strategy said it’s almost halfway to its ambitious capital-raising goal as it went on a buying spree throughout the postelection rally. As of Monday, Strategy holds roughly $47 billion worth of bitcoins on its balance sheet, about 2.5% of the total supply.

This post appeared first on NBC NEWS

McDonald’s on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.

But shares of the company rose more than 4% in morning trading as executives predicted sales would improve in 2025.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates.

But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.

McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald’s U.S. same-store sales tick up in the third quarter.

However, analysts have warned that value meals only work if customers also add menu items that aren’t discounted to their orders. McDonald’s executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.

The biggest hit to McDonald’s U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

However, in the days following the news of the outbreak, traffic at McDonald’s U.S. restaurants fell steeply, particularly in the states affected.

U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.

McDonald’s expects its U.S. sales to recover by the beginning of the second quarter, executives said.

“I think right now what we’re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,” CEO Chris Kempczinski said on the company’s conference call. “So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.”

The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.

Outside the U.S., sales were stronger. Both of McDonald’s international divisions reported same-store sales increases, bolstering the company’s overall performance.

The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.

McDonald’s international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.

McDonald’s reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.

Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald’s earned $2.83 per share.

Looking to 2025, the first quarter is expected to be the low point for McDonald’s same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.

For the full year, McDonald’s plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company’s international developmental licensed markets, including about 1,000 new restaurants in China.

Including its investments in restaurant openings, McDonald’s plans to spend between $3 billion and $3.2 billion this year on capital expenditures.

The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.

This post appeared first on NBC NEWS

Vilnius, Lithuania (REUTERS) – Estonia, Latvia and Lithuania said on Sunday they had successfully synchronized their electricity systems to the European continental power grid, one day after severing decades-old energy ties to Russia and Belarus

Planned for many years, the complex switch away from the grid of their former Soviet imperial overlord is designed to integrate the three Baltic nations more closely with the European Union and to boost the region’s energy security.

“We did it!,” Latvian President Edgars Rinkevics said in a post on social media X.

After disconnecting on Saturday from the IPS/UPS network, established by the Soviet Union in the 1950s and now run by Russia, the Baltic nations cut cross-border high-voltage transmission lines in eastern Latvia, some 100 meters (328 feet) from the Russian border, handing out pieces of chopped wire to enthusiastic bystanders as keepsakes.

EU foreign policy chief Kaja Kallas, herself an Estonian, earlier this week called the switch “a victory for freedom and European unity.”

The Baltic Sea region is on high alert after power cable, telecom links and gas pipeline outages between the Baltics and Sweden or Finland. All were believed to have been caused by ships dragging anchors along the seabed following Russia’s invasion of Ukraine. Russia has denied any involvement.

Poland and the Baltics deployed navy assets, elite police units and helicopters after an undersea power link from Finland to Estonia was damaged in December, while Lithuania’s military began drills to protect the overland connection to Poland.

Analysts say more damage to links could push power prices in the Baltics to levels not seen since the invasion of Ukraine, when energy prices soared.

The IPS/UPS grid was the final remaining link to Russia for the three countries, which re-emerged as independent nations in the early 1990s at the fall of the Soviet Union, and joined the European Union and NATO in 2004.

The three staunch supporters of Kyiv stopped purchases of power from Russia following Moscow’s invasion of Ukraine in 2022, but have relied on the Russian grid to control frequencies and stabilize networks to avoid outages.

This post appeared first on cnn.com

Israel completed its withdrawal from the Netzarim Corridor on Sunday, a key road that splits Gaza in half, as part of its commitments under a ceasefire agreement with Hamas.

Palestinians have been filing through the area by foot, car and in some cases, by donkeys video footage showed, although those traveling must navigate a checkpoint and the destruction wrought by months of fighting in Gaza.

“I was displaced a long time ago. I have seen people arriving on this road, sometimes even sleeping on it while waiting for the Israeli army to withdraw,” said Osama Saleem, who was waiting for his vehicle to be inspected.

“I hope the Israeli army withdraws from all of Gaza and that life returns to normal,” he added.

Hamas said in a statement that Israeli forces had fully withdrawn from the corridor, a six-kilometer strip of land that separates the north of the strip from its south and stretches from the Israel-Gaza border to the Mediterranean Sea.

The Israel Defense Forces (IDF) had occupied the corridor since the early days of its war in Gaza.

“The withdrawal of the Zionist occupation army from the Netzarim axis is a victory for the will of our people,” a Hamas statement issued Sunday said.

Israel had used the corridor as a zone of occupation during its 15-month assault on the strip. Its troops began withdrawing from Netzarim Corridor two weeks ago as part of the ceasefire agreement with Hamas. Since then, hundreds of thousands of Palestinians displaced in the south have been able to cross Netzarim to return to their homes in the heavily bombarded north of Gaza.

Israel retains its presence along Gaza’s borders with Egypt and Israel.

A checkpoint run by Egyptian and Qatari officials – countries which play a mediator role between the warring sides – remains at Netzarim.

Israel’s complete withdrawal from Netzarim is part of its commitment to the fragile ceasefire and hostage agreement, which on Saturday saw the release of another three hostages – bringing the number released so far to 16 out of a total of 33 people promised to be released at staggered intervals during this stage.

Ohad Ben Ami, Eli Sharabi and Or Levy – all taken captive during the Hamas-led October 7 attack – were freed in return for 183 Palestinian prisoners, although their frail and gaunt appearances drew condemnation from Israel.

Negotiations on the agreement’s second and third phases are still in doubt.

Israeli Prime Minister Benjamin Netanyahu has been deeply wary of phase two of the deal, which would see the full withdrawal of Israeli troops from Gaza and the return of the remaining hostages there. His finance minister, Bezalel Smotrich, has pledged to quit the government if the ceasefire continues.

Khader Al-Za’anoun of Wafa, the official Palestinian news agency, contributed reporting.

This post appeared first on cnn.com

The Aga Khan IV was laid to rest on Sunday at a private ceremony in Aswan, Egypt.

The death of Prince Karim – the 49th hereditary imam of the Shiite Ismaili Muslims – was announced Tuesday by the Aga Khan Development Network and the Ismaili religious community. His son, 53-year-old Rahim Al-Hussaini, has been named as the Aga Khan V, the spiritual leader of the world’s millions of Ismaili Muslims, in according with his father’s will.

On Saturday, a private funeral service took place at the Ismaili community center in Lisbon attended by Canadian Prime Minister Justin Trudeau, Spain’s King Emeritus Juan Carlos and Portugal’s President Marcelo Rebelo de Sousa.

The Aga Khan is considered by his followers to be a direct descendant of the Prophet Muhammad and is treated as a head of state.

The governor of Aswan welcomed Prince Karim’s family at the southern Egyptian’s provinces airport on Saturday.

“When his will was opened, it was found that he had requested to be buried in Aswan near his grandfather, Sultan Muhammad Shah, and his grandmother, Om Habiba,” said Maj. Gen. Ismail Kamal.

Ismaili mourners marched as bells rang during the burial ceremony in the country’s southern Aswan province, as Prince Karim’s body was taken in a van.

They carried his body, draped in a white shroud, and placed it on a yacht on the Nile River.

Prince Karim, 88, was given the title of “His Highness” by Queen Elizabeth in July 1957, two weeks after his grandfather, the Aga Khan III, unexpectedly made him heir to the family’s 1,300-year dynasty as leader of the Ismaili Muslim sect.

The late Aga Khan evolved over decades into a business magnate and a philanthropist, moving between the spiritual and the worldly with ease.

He was a defender of Islamic culture and values, but also widely regarded as a builder of bridges between Muslim societies and the West.

The Aga Khan Development Network deals mainly with issues of health care, housing, education and rural economic development.

It says it works in over 30 countries and has an annual budget of about $1 billion for nonprofit development activities.

Ismailis lived for many generations in Iran, Syria and South Asia before also settling in east Africa, Central Asia and the Middle East, as well as Europe, North America and Australia more recently.

They consider it a duty to donate up to 12.5% of their income to the Aga Khan as steward.

This post appeared first on cnn.com

Polls have closed and votes are now being counted in Ecuador’s general election, where 16 candidates are vying for the presidency, including incumbent Daniel Noboa and his main political rival Luisa González.

According to Ecuador’s Constitution, a candidate needs more than 50% of the vote to win the first round outright, or 40% with a margin of at least 10 percentage points over the next closest candidate.

If these conditions are not met, the two candidates with the most votes will face each other in a second round, which is provisionally scheduled for April 13.

Sunday’s vote will decide if the country will stick with Noboa’s tough crackdown on crime or seek an alternative voice in González.

Noboa, who won the 2023 snap election to finish the term of his predecessor Guillermo Lasso, has presided over a series of crises in his term.

He has declared numerous states of emergency, deployed military units to tackle gang activity in the country’s streets, and began construction on a new maximum-security prison after an infamous criminal leader escaped from custody last year.

González, who was the runner-up in the 2023 race, is a close confidante of former leftist President Rafael Correa, a dominant figure in Ecuador’s politics.

Running on a campaign to “Revive Ecuador,” González has pledged to tackle the drug trade just as vigorously as Noboa.

The main challenges the next government will face when it takes office in May are security, the economy, a nationwide energy crisis and international relations.

This post appeared first on cnn.com

For a man who’s spent his career battling to make France more pro-business, Europe’s prospects on artificial intelligence are worrying: an oversight that could cost the bloc dearly.

“We need an AI agenda,” he said, “because we have to bridge the gap with the United States and China on AI.” The French leader added that he fears Europe becoming merely an AI consumer, losing control over the future direction and development of the technology.

That’s part of the impetus behind this week’s AI summit in Paris — the latest effort by Macron to put France at the heart of the debate and decision-making on international questions of the day.

Macron regularly touts the prospects of Paris-based company Mistral, widely considered OpenAI’s European competitor, which launched a new app on Thursday.

The company boasts of its ability to rival its US competitors, by getting the same results with less computing power needed, although the surprise arrival of lower-cost Chinese competitor DeepSeek has put pressure on the French firm.

Europe ‘must do much better’ on financing

With its nuclear-heavy energy portfolio making France a net energy exporter, the country is in an enviable position for the creation of power-ravenous data centers.

France is set to unveil what its government boasts is Europe’s largest supercomputer by fall 2025, outside Paris.

The Mont Valerien site will be a military facility, bringing AI capabilities at scale to help solve design and engineering questions, like the architecture of France’s next aircraft carriers. AI will also be used to improve future military technologies and practices, like anti-drone jamming, according to the French Ministry of Defense.

That’s the exception. With Europe holding a mere 3-5% of global computing power, Macron said he hopes this surplus power will open doors to Europe’s AI future. He has his sights on building 20% of the world’s data centers.

But financing — especially from the United States and the Gulf Arab states — will be key, according to Macron.

It’s where Europe “must do much better,” Macron said.

Finding cash within the continent could be an unwitting boon if President Donald Trump’s tariff threats against European allies come to a head.

“From the standpoint of America, the EU treats us very, very unfairly, very badly,” Trump told the World Economic Forum in January, later threatening to levy tariffs against the bloc after slapping — and then rescinding — stiff import taxes on Canada and Mexico.

Trump’s 10% across-the-board tariffs on China still went into effect, and the president said he will announce new so-called reciprocal tariffs next week that could hit all corners of the world.

Trump has railed against the US trade deficit with the European Union, which increased by $26.9 billion to $235.6 billion in 2024, according to US government figures.

Macron pushed back against this, arguing the trade deficit ignores Europe’s significant spending on digital services, which is often excluded from such calculations.

In response to potential tariffs, Macron said Europe must look to protect producers against American and Chinese competition and, crucially, ease regulation on investments to stem the “leaking” of European savings to the United States. EU Commission President Ursula von der Leyen mirrored that resolute stance last week.

Staying in the race

“I will fight for AI,” he said, calling for a business environment that makes Europe more competitive. “I will fight for more defence and security answers as Europeans. And I will fight for the maximum level of ambition on all these issues.”

February and March will bring announcements and a roadmap of reforms around AI startup regulations, Macron said, in an effort to rival the United States and China’s AI agenda.

“We have to focus on killing some crazy regulations, simplification of the current environment,” Macron said. “Europe has to simplify its rules, make it much more business friendly and synchronize with the United States.”

He hopes, for AI at least, this week’s summit will be a “wake up call” for Europe.

This post appeared first on cnn.com