Ukraine talks call for European speaker despite lack of continental consensus

Also in this newsletter: Retail investment reform gets killed

Good morning. Today, I explain the key outcome of yesterday's talks in Dublin, and our economy correspondent reports on a brutal reversal for a key Commission investments reform.

Have a terrific weekend.

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'Pay attention'

European capitals are under increased pressure to identify a representative to speak on their collective behalf in the next round of US-brokered peace negotiations to pause the war in Ukraine, even as leaders fail to agree on the simple necessity of talking to Vladimir Putin.

Context: Russia's President Putin invaded Ukraine in February 2022 seeking a rapid conquest. The EU and its members are by far the single biggest supporter of Kyiv. Close to 50 European leaders gathered in Dublin yesterday in search of answers.

"They will have a voice. This is important for us because the war is in Europe," said Volodymyr Zelenskyy, Ukraine's president, after a meeting with US peace envoys Steve Witkoff and Jared Kushner at an airfield outside of Dublin last night.

His comments were echoed by Kushner. "We cannot conclude this deal without the Europeans being at the table," said President Trump's negotiator, who is also his son-in-law.

Europe is divided on the issue. Some leaders reject the idea of any engagement with Putin, warning that his demand to discuss a new European 'security architecture' is a trap. Others believe that it's better to be invited than left outside.

Zelenskyy's advice was unequivocal: "Europe really needs to pay attention," he told fellow European leaders, citing "a lot of talk about security guarantees".

"When the Americans and Russians talk about these, it's not just about Ukraine; in fact, it's more about some kind of new security framework between Europe and Russia. And we find this approach a bit strange," he said.

EU leaders will discuss the idea of selecting people to represent them at a summit today in the Irish capital, with deep divisions between those who deeply resist any suggestion to talk with the Kremlin, and those who accept their fate.

Kushner and his collaborator Witkoff met with senior security officials from Ukraine, Germany, Italy, EU, France, Ireland and Poland during a refuelling stop yesterday evening on their journey home from Moscow to the US.

"No broader European security arrangements will be finalised without addressing Ukraine's security concerns," Kushner added.

Chart du jour: Putin's death toll

Russia has suffered more than 500,000 deaths from its full-scale invasion of Ukraine, according to an FT analysis of leaked Russian statistical records.

Retrograde

The European parliament has rejected a reform of rules regarding retail investments, in a surprising volte-face that deals a blow to Brussels' core agenda of bolstering its capital markets, writes Paola Tamma.

Context: The Retail Investment Strategy (RIS), a reform presented in 2023, was a key part of the European Commission's drive to increase retail investors' participation in capital markets.

In a deal struck last December, EU countries and the European parliament agreed to strengthen investor protection by requiring greater transparency on fees and ensuring investment products offer "value for money", obliging investment firms to demonstrate that product costs are justified and proportionate, or else won't be authorised for sale.

However, they stopped short of banning commissions paid to financial intermediaries -- a so-called "inducement ban" originally proposed by the Commission.

The compromise left everyone upset. Asset managers lamented the highly prescriptive rules would inevitably result in more costs and hurdles for retail investors, while consumer groups warned financial institutions would continue to offer products for which they receive kickbacks.

Given the pushback, the Commission itself had thought about withdrawing the proposal, according to people familiar with the matter.

But in the end, it was a majority of MEPs -- social democrats, the Left and the Greens, alongside most Polish members of the centre-right EPP and conservative ECR -- who killed it, with 300 votes against and 286 votes in favour.

A spokesperson for the Commission said it "deeply regrets the outcome of [Thursday's] vote. We believe this represents a missed opportunity to meaningfully improve the experience of retail investors across the EU."

What to watch today

* EU leaders meet in Dublin.

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