Jonathan Derbyshire: The rules-based international order used to underwrite American global leadership. Not any longer. Donald Trump parades his disdain for it.
During Mr Trump’s presidency, the US has already abandoned the Paris climate change accord, given up on a two-state solution in Israel-Palestine and threatened a trade war with China. But, argues Philip Stephens in his column this week, the American withdrawal from the Iran nuclear deal is different. It is, Philip suggests, the biggest rupture in transatlantic relations since the end of the cold war.
How should the US’s European partners respond? While they should be realistic about the leverage they are able to wield, realism does not entail submission, Philip insists. France, Germany and the UK, all signatories to the original deal, should do what they can to hold together what remains of it. They should also indemnify European businesses trading with Iran against the threat of US sanctions and vow to oppose any military strikes against Tehran. Maybe then Washington will get the message that it now stands alone.
After the peso fell to historic lows, Argentine president Mauricio Macri asked the IMF for help. While this is obviously bad news for Argentina, writes Gillian Tett, it serves as a useful reminder of the challenges facing markets around the world. Policymakers need to be sure that the global financial safety net is robust enough to survive more widespread turmoil.
Britain’s contract between the generations is under unprecedented strain. Millennials, notes Chris Giles, are the first generation to have lower living standards than their predecessors at the same age. A new report from the Intergenerational Commission suggests some remedies — not all of them plausible. But the commission has at least reminded politicians that solutions are required. We can’t go on consuming the family silver indefinitely.
It emerged this week that geography students at Oxford university have forced the faculty to remove a portrait of Theresa May that had been surrounded by protest slogans. Robert Shrimsley imagines the unflattering slogans the prime minister’s cabinet colleagues, divided over two unworkable plans for Britain’s future customs relationship with the EU, might be tempted to deface her picture with.