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Paying the Taliban

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Follow Us Politics is not for the squeamish. You need to make  trade-offs. The European Union, Tur

[Bloomberg]( Follow Us [Get the newsletter]( Politics is not for the squeamish. You need to make [unpleasant]( trade-offs. The European Union, Turkey, Iran, China, Russia, the U.S. and others have a common goal when it comes to Afghanistan — whatever happens there should stay within its borders. The last thing any of them want is a fresh [exodus]( of refugees or spreading militancy. For [containment]( purposes, as well as humanitarian reasons, these countries will need to work together to avoid Afghanistan’s economic collapse, [Marc Champion](, [Eric Martin]( and [Anthony Halpin]( write. Already a poor state, with a reliance on foreign aid, drug money and an informal workforce, a combination of price rises and vaporizing jobs could spur people to leave for good. Think of it as the Turkey solution. Europe has sought to stop refugees from Syria and elsewhere crossing over by paying the Turkish government billions to house them. That’s more straightforward than [handing]( money to the Taliban, a group whose historical repression of women and support for al-Qaeda make it unpalatable to many if not most governments. Countries are still dancing around even formally recognizing the Taliban government. And whether it’s lifting [sanctions](, unfreezing funds, or [plowing]( in fresh aid, a good amount of money would end up being [funneled]( through Taliban hands. But if European nations and others want to ward off an economic collapse that spreads rapidly outward, they will need to consider it. That’s the trade-off. — [Rosalind Mathieson]( An Afghan refugee camp at the U.S. military base in Ramstein, Germany, on Sept. 6. Photographer: Oliver Douliery/AFP/Getty Images Click [here]( to follow Bloomberg Politics on Twitter and tell us how we’re doing or what we’re missing at balancepower@bloomberg.net. Global Headlines Promise diluted | Joe Biden’s chances of fully delivering on his campaign vow to tackle America’s widening inequality are [waning]( as his Democratic allies in Congress water down proposals to tax the rich. [Nancy Cook]( and [Mike Dorning]( explain the changes are being made to assuage moderates whose votes are vital to ensure passage of the president’s economic program in the Senate. - Biden [urged]( California voters to keep Gavin Newsom as their governor in today’s recall election and reject a Republican he called a clone of former President Donald Trump. Crisis taskforce | Beijing is [assembling]( accounting and legal experts to examine the finances of China Evergrande Group, a potential precursor to a restructuring of the world’s most [indebted]( developer. Pressure is building on authorities as the company falls behind on commitments to suppliers, retail investors and home buyers, raising the specter of social unrest after protests at Evergrande offices across China. Seoul fined Google $177 million for hampering the development of rivals to its Android operating system, sustaining a campaign targeting the U.S. search giant’s [dominance]( in smartphone software. South Korea became the first country to pass a law forcing Apple and Google to open their app stores to outside payment systems, a potentially radical precedent for their lucrative operations everywhere from India to the U.S. Gloves off | The EU is harnessing powerful new budgetary tools to confront Poland and Hungary over their perceived violations of the bloc’s core democratic values. The [shock-and-awe]( approach seems to be having an effect, but EU unity will be tested in a standoff that could force member states accused of democratic backsliding to either toe the line or reconsider membership. Delta impact | From the U.S. to China and Germany, the latest economic data are flagging a slowdown as the delta variant hits spending just as supply-chain troubles threaten to keep inflation elevated. As [Simon Kennedy]( writes in this graphics [treatment]( using Bloomberg Economics’ GDP Nowcast data, Covid-19 isn’t done hobbling the global economy. - China’s economy likely [slowed]( further in August, with consumption, industrial output and investment data due tomorrow set to reveal the damage caused by delta. Best of Bloomberg Opinion - [Emmanuel Macron Is Dancing with Dictators: Bobby Ghosh]( - [Moderates Are the Real Health-Care Progressives: Ramesh Ponnuru]( - [Evergrande’s Endgame Is the Hunger Games: Shuli Ren]( Exposing bribes | Anthony Stimler left Glencore in 2019 with two big [secrets](: He’d paid millions in bribes to African officials and intermediaries for years and had started helping a U.S. Justice Department investigation into the global commodities trader and numerous former colleagues. [Christian Berthelsen](, [Javier Blas]( and [Bob Van Voris]( write that his confession makes clear that he knew what he’d been doing — and that he didn’t act alone. Bloomberg TV and Radio air Balance of Power with [David Westin]( weekdays from 12 to 1pm ET, with a second hour on Bloomberg Radio from 1 to 2pm ET. You can watch and listen on Bloomberg channels and online [here]( or check out prior episodes and guest clips [here](. What to Watch - Abortion-rights advocates told the U.S. Supreme Court that “chaos” will [reign]( if it overturns constitutional protections, saying women will have no way to legally end pregnancies in much of the country. - Norway’s opposition Labor Party will begin talks on [forming]( a coalition after winning an election dominated by disputes over the Nordic economy’s dependence on fossil fuel. - The record spike in energy prices mustn’t undermine the EU’s resolve to cut emissions and instead should [prompt]( the region to speed up its green transition, the bloc’s climate chief, Frans Timmermans, said today. - Russian President Vladimir Putin is [self-isolating]( after a Covid-19 infection among his entourage. - Syrian President Bashar al-Assad made a rare foreign trip to Moscow yesterday to [meet]( with Putin, a key ally in Syria’s decade-old conflict. And finally ... Progressive U.S. Democratic congresswoman Alexandria Ocasio-Cortez used the Met Gala — the buzziest event in the New York glitterati calendar — to make a political statement by wearing a white dress with the [message]( in bold, blood red on the back: TAX THE RICH. While the message itself wasn’t surprising for Ocasio-Cortez, the setting in which she chose to express it drew attention. Photographer: Kevin Mazur/MG21/Getty Images North America Photographer: Kevin Mazur/MG21/Getty Images North America  Like Balance of Power? [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022

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