Trump’s NATO threats lose shock value

Trump taunts show NATO countries must spend more on defense [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. There was a familiar [sinking feeling across Europe]( when Donald Trump lobbed his latest grenade at NATO. Speaking at a campaign rally, the former US president said that when in office he’d told a European leader that he’d let Russia do “whatever the hell they want” to alliance members that didn’t meet their defense-spending pledges. NATO has long been a Trump target, but this was a statement [calculated to outrage further](, calling into question the alliance’s central tenet that all will come to the aid of one if it’s attacked, and the commitment of its strongest member, the US. WATCH: Trump saying that he once told a European leader he would abandon NATO members to a Russian invasion if they hadn’t met defense-spending commitments. Source: Bloomberg The timing was doubly offensive, coming as [Republicans stall President Joe Biden’s package]( to help Ukraine defend against Vladimir Putin’s aggression. Even putting aside the veracity of his assertion, European leaders might take solace in the reality that the NATO of today is a different beast to the alliance of 2016, when Trump won the presidency. Defense budgets across Europe and Canada have gone up for nine consecutive years, NATO chief Jens Stoltenberg said in November. While it’s true that some of the impetus can be attributed to Trump’s hectoring, Russia’s invasion of Ukraine and warnings that the Baltics could be next have cemented the shift. Take Germany, the continent’s dominant economic power whose military capabilities were neglected after the Cold War — it’s on course to exceed NATO targets this year. That includes €35 billion ($38 billion) on armaments, more than Italy’s entire defense budget last year. Chancellor Olaf Scholz is today opening a Rheinmetall munitions plant that will go some way to supplying Europe’s needs. Many charge that’s still not enough. Other European nations still fall short. Yet as Stoltenberg said, these are often unpopular decisions, and Europe is stepping up. Whether or not Trump returns to the presidency, Europe knows it has no choice but to do more to defend itself in future. — [Alan Crawford]( Russian President Vladimir Putin gifts Trump a football from the 2018 World Cup during a press conference in Helsinki. Photographer: Yuri Kadobnov/AFP/Getty Images Global Must Reads Israel launched air strikes today on the city of Rafah in southern Gaza, where more than 1 million people are seeking refuge from the war against Hamas. The attacks came amid [growing international condemnation]( over a potential ground assault in the area. The Israeli military said it freed two hostages overnight, while Palestinian media reported the deaths of about 60 people. A Palestinian is brought to a hospital following Israeli strikes today in Rafah. Photographer: Mohammed Abed/Getty Images The US presidential election in November has intensified pressure on both the presumed candidates — Biden and Trump — to turn up the heat on China. While the Republican frontrunner is pitching a 60% tariff on all Chinese imports, which would effectively shrink a $575 billion trade pipeline to practically nothing, his [rhetoric may prompt]( Biden to take harsher measures in the run-up to voting day. Whoever wins, China loses. The two main family-controlled parties in Pakistan are considering forming a coalition government to [thwart Imran Khan’s group]( after the jailed former cricket star’s candidates won the most seats in the country’s election. The scenario would be a closing of ranks by Pakistan’s old guard after Khan’s loyalists — running as independents — put in a strong performance in Thursday’s election, showing the public’s support for the former prime minister and disillusionment with the status quo. Alexander Stubb pledged to bring his nation to the core of NATO after he was elected president of newest alliance member Finland yesterday. The 55-year-old former prime minister [represents continuity]( in foreign and security policy, with a focus on supporting Ukraine and integrating Finland into NATO, which it joined in April. The political turmoil engulfing Senegal is yet another obstacle in its drawn-out effort to capitalize on large oil and gas finds. The West African nation joins others on the continent that have struggled to ride some of the world’s biggest discoveries in decades. As Paul Burkhardt and Katarina Hoije report, the finds [rarely live up to their promise](, often doing more harm than good. US Defense Secretary Lloyd Austin, 70, was admitted into critical care with an apparent bladder issue yesterday, [after being hospitalized]( for the second time in a month. A new political party backed by former South African President Jacob Zuma may help [end the dominance]( of the African National Congress, which has ruled the country since the end of apartheid, a Social Research Foundation poll showed. Sebastian Pinera’s sudden death deprives Chile’s right wing of a unifying force, leaving [a stark choice]( between pursuing the former president’s liberal, pragmatic view, or shifting to a new more populist agenda. Washington Dispatch Members of the US House Committee on the Chinese Communist Party today will join biotechnology executives at Harvard Kennedy School in Boston in what’s being billed as a science fair, where there will be presentations of products made by the companies. Panel member Jake Auchincloss, a Massachusetts Democrat, said in a statement “I’m excited to show the committee what the Bay State has built.” Unlike at most science fairs, there will be a discussion of “challenges posed by China’s biotech industry,” according to a committee press release. “The Chinese Communist Party is determined to dominate the future of biotechnology — and leverage cutting edge genetic science to enhance their military and surveillance state,” said panel chairman Mike Gallagher, a Wisconsin Republican. Gallagher, who announced over the weekend that [he wouldn’t seek reelection](, added that “genetically tailored weapons are already a trending topic” in the Chinese military, and that the US must prevent American technology and capital from being exploited by China. Back in Washington, a bipartisan group of House and Senate lawmakers introduced legislation that seeks to block some Chinese biotech companies — which they say are controlled by the Communist Party and present a national security risk — from accessing federal contracts. One thing to watch today: Biden hosts King Abdullah II of Jordan at the White House, where they plan to discuss the conflict in the Gaza Strip. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day The three parties in Germany’s unpopular ruling coalition suffered losses in yesterday’s partial repeat in Berlin of the 2021 federal election, [continuing a national trend]( that’s likely to be repeated in four key votes this year. Conservative Christian Democrats and the far-right Alternative for Germany gained. And Finally After opening a controversial temple in India where a mosque once stood, Prime Minister Narendra Modi is inaugurating another Hindu religious site this week — in the United Arab Emirates. The pink [sandstone temple]( in Abu Dhabi has been built on a plot granted on lease by President Sheikh Mohammed bin Zayed Al Nahyan for as long as “the sun shines.” Modi will also address more than 40,000 people in an Abu Dhabi stadium tomorrow. The UAE and India have historically enjoyed close ties, and a third of the Gulf country’s population hails from India. The BAPS Hindu Mandir temple during final preparations in Abu Dhabi. Photographer: Natalie Naccache/Bloomberg Thanks to the 47 people who answered the Friday quiz and congratulations to Paula Voos, who was the first to name South Korea as the country where a secretly recorded video purporting to show the first lady being gifted a luxury Dior handbag has eroded public support for the president before an election. 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