The U.S. Supreme Court’s 5-4 decision to let President Trump keep $4 billion in congressionally-approved foreign-aid funds on ice tilts the separation-of-powers balance toward an ever-expansive executive. By blessing a “pocket rescission,” the Court effectively grants the White House a de-facto line-item veto Congress has repeatedly refused to legislate. (reuters.com)

History suggests this is no minor skirmish: when Richard Nixon froze domestic spending in 1973, Congress responded with the Impoundment Control Act; aid resumed. Today’s Court, however, signals that legislators who appropriate must also litigate—an onerous hurdle that jeopardizes programs from UN peace-keeping to AIDS prevention in 120 countries. The $4 billion lapse equals UNICEF’s entire annual budget.

Long-term, America risks ceding soft-power terrain to rivals that spend without procedural drama. If Washington can nullify its own appropriations at will, why should emerging partners trust U.S. commitments over Beijing’s Belt-and-Road cheques? As political scientist Francis Fukuyama warns, “A state that cannot act consistently cannot lead.” (ft.com)

— The Gist AI Editor

Presidential Power and Purse Strings

The US Supreme Court handed President Trump a significant victory, affirming his power to withhold $4B in foreign aid allocated by Congress (Politico). This ruling sharpens the ongoing struggle between the executive and legislative branches over control of federal spending. From our perspective, while fiscal restraint is welcome, concentrating such power in the executive risks undermining the constitutional authority of elected representatives. The decision introduces a new layer of uncertainty for international aid recipients and could complicate delicate diplomatic negotiations, making US commitments appear less reliable.

US-Colombia Diplomatic Spat

Trans-Atlantic tensions flared as the Trump administration revoked the US visa of Colombian President Gustavo Petro after he joined a pro-Palestine protest (Bloomberg). Petro’s dismissive public reaction signals a growing assertiveness among leaders in the Global South. This episode illustrates the personal and often unpredictable nature of modern diplomacy, where individual actions can have immediate geopolitical consequences. For advocates of open dialogue, such diplomatic ruptures are counterproductive, hindering cooperation on critical shared interests like trade and security.

Drone Threats Escalate in Denmark

Denmark reported more drone incursions over its military bases, including Skrydstrup Air Base, compounding a week of airspace disruptions (Politico.Eu). These repeated, mysterious sightings raise serious questions about the vulnerability of sensitive NATO military sites to surveillance or attack. The incidents underscore how low-cost, accessible technology can be deployed to create strategic ambiguity and test an adversary’s defenses. This evolving security landscape demands a rapid and innovative response from Western nations to protect critical infrastructure from asymmetric threats.

See you here for the next edition of The Gist—your edge in a shifting world.

Supreme Court clears way for Trump to withhold $4B in foreign aid approved by Congress
— Politico.Eu

US soyabean farmers squeezed as China blocks imports and stockpiles rise
— Financial Times

DSM-Firmenich Reinvites Apollo Into Auction as CVC Bid Hits Snag
— Bloomberg

Why the case against James Comey may end in humiliation for Trump’s DOJ
— Politico.Eu

Colombia’s President Petro Shrugs Off US Visa Cancellation
— Bloomberg

Iran faces reimposition of sanctions over its nuclear programme
— Financial Times

German Domestic Security Shift

Berlin is poised to expand the powers of its military, the Bundeswehr, allowing it to shoot down drones domestically. Interior Minister Alexander Dobrindt cited a “high” threat level following drone sightings over Schleswig-Holstein, arguing for a change to the Luftsicherheitsgesetz (Aviation Security Act) (ZDF). This move signals a significant pivot in Germany’s post-war security posture, blurring the lines between military and police competencies. While ostensibly for counter-terrorism and critical infrastructure protection, granting the military domestic policing powers is a step I view with considerable skepticism. It risks normalizing military intervention in civil matters, a path that history suggests warrants extreme caution. The ripple effect could see other EU nations re-evaluating their own domestic military roles.

Italian Coalition Clashes Over Bank Tax

Italy’s ruling coalition is fractured over a proposed tax on bank “windfall” profits. Matteo Salvini’s Lega party is pushing for a €5 billion contribution from major lenders to fund the budget, an idea inspired by similar levies elsewhere in Europe (ANSA, Reuters). However, their coalition partners, Forza Italia, are firmly opposed, with Antonio Tajani stating unequivocally, “Finché Forza Italia sarà al governo, non ci saranno mai tasse sugli extraprofitti” (As long as Forza Italia is in government, there will never be taxes on extra-profits) (ANSA). This is market interventionism clashing with fiscal prudence. Such taxes disincentivize investment and create uncertainty, punishing success rather than addressing root economic issues. The outcome of this internal struggle will be a key indicator of Rome’s economic direction.

Paralympic Committee Reintegrates Russia

In a controversial decision, the International Paralympic Committee (IPC) voted to lift all sanctions on Russia and Belarus, imposed after the 2022 invasion of Ukraine (DW). The vote, which took place on September 27, 2025, means Russian and Belarusian athletes can now compete under their own flags. This move starkly contrasts with continued diplomatic and economic isolation efforts by Western governments. While proponents may argue for separating sport and politics, such decisions carry immense symbolic weight. For Ukraine, it is seen as a betrayal of Olympic values (DW). For Russia, it is a significant propaganda victory on the international stage, potentially weakening the resolve for broader sanctions.

Catch the next Gist for the continent’s moving pieces.

Innenminister Dobrindt: Bedrohung durch Drohnen ist “hoch”
— ZDF

Lega, da banche 5 miliardi. Ma FI: ‘Mai tasse su extraprofitti
— Ansa

Paralympic body drops sanctions on Russia and Belarus
— Deutsche Welle

Aktuelles zum Krieg in der Ukraine
— ZDF

USA wollen Kolumbiens Präsidenten das Visum entziehen
— ZDF

Padre ragazzo rapito, trattato bene ma è stato un incubo
— Ansa