Opposition leaders criticize New Democracy over MPs absence in OPEKEPE vote
PASOK and SYRIZA leaders criticized New Democracy MPs for being absent during a parliamentary vote on launching a probe into ex-ministers Makis Voridis and Lefteris Avgenakis over the OPEKEPE case.
Venizelos accuses government of ‘degrading’ institutions
Former deputy prime minister Evangelos Venizelos accused the government of “degrading” the country’s institutions and fueling a “crisis of legitimacy” following this week’s events in Parliament and a vote on the House’s role in investigating the EU subsidy fraud scandal.
https://www.ekathimerini.com/politics/1276865/venizelos-accuses-government-of-degrading-institutions
PM Mitsotakis on Patras–Pyrgos motorway inauguration, highlights impact on Western Greece and Ionian islands
Prime Minister Kyriakos Mitsotakis inaugurated the new Patras-Pyrgos motorway section near Alpochori in Pyrgos on Thursday afternoon. The Greek Premier emphasised that the completion of the road addresses a long-standing injustice faced by Western Greece and the southern Ionian islands. He also mentioned that the project employed 6,000 individuals.
Bank of Greece: Interest rate margin on new loans capped at 4.27%
Lending rates fell in June, while deposit rates remained stable, resulting in a narrowing of the interest rate margin.
https://www.amna.gr/en/article/923053/Bank-of-Greece-Interest-rate-margin-on-new-loans-capped-at-427
ATHEX: Index gains near 6.8% in month of July
As expected, the announcement of the first-half results of domestic banks, plus the Euronext bid for Hellenic Exchanges, have now brought the main index of the Greek stock market within reach of the 2,000-point milestone. Thursday’s session offered more gains for stocks, led by banks, with July proving to be the ninth consecutive month of growth, amounting to 6.78% for the benchmark, which has now reached yet another 15-year high.
https://www.ekathimerini.com/economy/1276916/athex-index-gains-near-6-8-in-month-of-july
KATHIMERINI: The mysteries of Mount Sinai monastery
TA NEA: Ruling party’s games lead to the degradation of parliament
EFIMERIDA TON SYNTAKTON: Parliamentary coup d’ etat: The PM butchers the Constitution and parliamentary proceedings
RIZOSPASTIS: University students and unions: The fight continues – The bill regarding the ousting of university students must not be implemented
KONTRA NEWS: The government defies the Constitution and undermines democracy
DIMOKRATIA: New Democracy’s debt amounts to 541.866.905 euros
NAFTEMPORIKI: New chapter for Athens Stock Market
DRIVING THE DAY: (DEMI-)ANNUS HORRIBILIS
TOUGH AT THE TOP: It’s been a bumpy ride for Commission President Ursula von der Leyen since the start of her second term in December. The embattled German has faced a string of political crises, earlier this month surviving a no-confidence vote weaponized by hostile states to try to delegitimize the bloc; hit with a ruling from a top EU court that found her team broke the rules around hiring senior officials; and contending with a neverending scandal around her text messages to the CEO of Pfizer. And it’s starting to look like things might get worse …
Saved by the bell? The summer holidays — when virtually all politicians, officials and even some journalists down tools — will bring welcome relief. But the rentrée doesn’t look to be easier. The Commission president will have to appear again before the European Parliament on the morning of Sept. 10 to give a State of the European Union address (SOTEU), defending her work so far and setting out her priorities for the rest of the year.
Greens to the left of me, Patriots to the right: Here’s von der Leyen, stuck in the middle with the EU. And keeping together her fragile liberal coalition amid increasingly polarized politics will prove difficult, with rifts opening up on trade, competitiveness, climate policy and the way she and her inner circle command the bloc. I spoke to some of the parties she’ll have to convince at the SOTEU — spoiler alert, they’re not happy.
Marriage in trouble: Von der Leyen depended on the center-left Socialists and Democrats (S&D), the second-largest group in Parliament, to secure her reelection. But they’re getting frustrated with what they see as her refusal to uphold her side of the deal on housing, workers’ rights and social security.
“We already warned von der Leyen that we need clear signs of commitment, and the SOTEU will be a pivotal moment,” group leader Iratxe García told Playbook. A pro-EU liberal alliance of the European People’s Party, S&D and Greens, she said, is the only way to keep the far right from power. “For that, this needs to work for all parties involved, and this is not the case so far.”
“The first year of this Commission has [so far] not been a good one,” said Bas Eickhout, president of the Green/EFA group. He accused von der Leyen’s EPP of “openly collaborating with the destructive and anti-EU far right” and “capitulating to Trump’s trade demands.” While her first term was “visionary,” Eickhout said, “the first year of the second term has weakened that legacy.”
After the break, “we expect a change of course of the Commission: a course that gives clear direction to where Europe’s new economy is heading, in particular how the Clean Industrial Deal will work in practice.”
Angry centrists: At the same time, the Renew group has warned that the summer recess is “perhaps a relief — because the Commission keeps stacking up poor decisions. But come September, we need a real turning point,” said MEP Sandro Gozi. “Day after day, the von der Leyen Commission is moving away from the fair, bold and sovereign Europe we are determined to build.”
Round 2? Meanwhile, Patriots for Europe, the far-right faction led by France’s Jordan Bardella that includes Hungarian Prime Minister Viktor Orbán’s Fidesz, is also looking to make hay of the crises. “After a bruising year for President von der Leyen marked by scandals, court rulings, and a growing democratic disconnect, we will not allow a summer break to whitewash the Commission’s failures,” said spokesperson Alonso de Mendoza Asensi. “If the Commission persists on its current path, another vote of no confidence is not out of the question.”
Sunshine is the best medicine: Civil society is also spotting a trend after Pfizergate and other upsets. “This string of events reveals that the second von der Leyen Commission has a serious transparency and accountability problem: in all these cases von der Leyen refuses to be held accountable,” said Olivier Hoedeman, a founder of the Corporate Europe Observatory. “The Commission has become more centralized than ever before, with VDL and her Cabinet running the Commission in the most top-down manner in EU history. Without strong transparency and accountability, this is a recipe for disaster.”
HOLIDAY FEVER
BURSTING OUT OF THE BUBBLE: With Parliament in recess and departments shutting down for the summer, many of the EU’s leaders are jetting off for some rest and relaxation. Even the local sandwich shops are shuttering for a few weeks. But pity the handful of commissioners who drew the short straw and ended up on the August roster, staying behind to be on duty should an emergency arise.
Who’s in charge anyway?: Playbook can reveal the unlucky crew helming the ship while everyone else is on vacation. First to take the wheel is Dubravka Šuica, the commissioner for the Mediterranean — maybe colleagues think she already spends enough time around sun, sea and sand in her day job?
Designated survivors: Šuica is in charge until Friday next week, when she hands over to Hungary’s Olivér Várhelyi. Never one to enjoy the effects of a warming planet, climate chief Wopke Hoekstra then takes over from Aug. 16 … and Defense Commissioner Andrius Kubilius will be on watch from the 23rd.
HOMEWARD BOUND: While officials and diplomats who spoke to Playbook in recent days were heading off to holiday hotspots in France, Italy and Spain, the current crop of commissioners are eager to show they haven’t forgotten where they come from. Fresh from negotiating a deal with Washington, trade czar Maroš Šefčovič is back in his native Slovakia, a spokesperson confirmed, “but is still working hard to advance EU-U.S. trade talks” remotely. Stéphane Séjourné, executive vice president for prosperity and industrial strategy, is also having a suitably patriotic staycation in the French Basque country.
Baltic break: Former Latvian PM and now Economy Commissioner Valdis Dombrovskis has the same idea. “My plan for this summer is first and foremost to enjoy the beautiful Latvian summer and the Baltic Sea, which offers a perfect temperature — not too warm, ideal for a refreshing cool swim,” he told POLITICO. On his reading pile is a volume of Latvian cultural tales, and Edward Fishman’s book “Chokepoints: How the Global Economy Became a Weapon of War.” Revealing …
Knokke Knokke, who’s there? Not Hadja Lahbib! The Belgian crisis management commissioner is eschewing the most touristy options to spend a “quiet vacation” between the Belgian coast and her home in Namur, “surrounded by family and her newborn granddaughter,” a spokesperson confirmed. She’ll be hiking in the countryside, listening to jazz and reading historical novels like Jaume Cabré’s “Confiteor.” However, she won’t be fully switching off, monitoring the humanitarian situation in Gaza and being “ready to return or travel at once” if needed.
Summer songs: Meanwhile, Youth and Culture Commissioner Glenn Micallef has put together an intergenerationally balanced playlist for the whole family, from classics like Johnny Nash and Leonard Cohen to questionable Gen-Z picks like Petit Biscuit. International partnerships chief Jozef Síkela is also on the DJ decks with his Instagram music tips, including one of my own favorite bands, Black Country, New Road.
TRADE WAR
DEAL? WHAT DEAL? Frustration is growing that since the EU announced it would accept 15 percent tariffs on exports to the U.S. on Sunday, key details on the agreement are still missing. Trump’s executive order issued last night did little to fill the gaps.
“The so-called deal — it’s not really a deal at the moment,” German MEP Bernd Lange, who chairs the Parliament’s trade committee, told Playbook. “We need clarity.”
Industry is also worried by the lack of info: “Today is August 1 and we’d have been expecting 30 percent tariffs had this agreement not been reached, so this is preferable to that,” said Ben Butters, CEO of Eurochambres, which represents national chambers of commerce and around 20 million businesses. “The Commission is not in touch with our members at all at the moment, so we’re still waiting for details. Our interpretation is that they’re still trying to clarify precisely what the headlines they agreed last Sunday mean in practice.”
Loose lips sink ships: But while some fear officials have gone to ground after the bombshell announcement, insiders insist that’s just part of the game.“The silence is strategic at this precise moment,” said one Commission official, granted anonymity to speak frankly. “We are working at full throttle behind the scenes to make sure the joint statement reflects our interests to the maximum degree.”
Art of the deal: The EU has also sought to play down criticism of its vague commitment to buy a colossal $750 billion in American energy under the agreement, a figure that has sparked concern from green groups and market analysts alike. Officials have published an explainer that insists the figure is “based on a thorough and robust assessment” that takes into account a shopping list of technology investments, nuclear reactors and services as well.
But just how robust is it? Well, according to a senior White House official who spoke to reporters earlier this week, the agreement might have been the result of a bit more haggling than Brussels is letting on. “The numbers started at a reasonable number and then the president said ‘I think you should buy $1 trillion-worth during my term,’” the official said. “You might think that’s vast, but they ended up settling on $750 billion of energy purchases.”
CORRUPTION FEARS
UKRAINE LEGAL WRANGLES: Ukraine’s parliament on Thursday approved a new bill from President Volodymyr Zelenskyy handing back independence to anti-corruption investigators after they were initially stripped of autonomy by a controversial law passed last month. The move had triggered warnings from key allies in the EU who said it would be a step back on the rule of law reforms needed to unlock billions in financial support.
View from Kyiv: The new bill is an attempt by Zelenskyy’s government to fix their own mistake that could’ve cost Ukraine essential financial aid, says Veronika Melkozerova, POLITICO’s reporter in Kyiv. However, to really regain the trust of the public and Ukraine’s partners, the government needs to make another painful step and allow the appointment of a new director of the Economic Security Bureau, who has so far been blocked by Cabinet.
Now read: Veronika has a must-read piece out on the protests against Zelenskyy’s abandoned law.
VACUUM IN VILNIUS: Lithuanian Prime Minister Gintautas Paluckas resigned Thursday amid allegations of unethical dealings in his business career. There could now be a reshuffle of the ruling coalition and negotiations with other parties to form a new government. Giedrė Peseckytė has the story.
LIQUIDE POUR LES GARS … Jordan Bardella’s National Rally is having money problems of its own, facing allegations about its finances just as it needs to increase spending ahead of critical elections. From our Paris bureau, Victor Goury-Laffont has the inside story.
ON THE FRONT LINES
GAZA GAMBIT: Portugal is considering joining a growing chorus of EU countries recognizing Palestinian statehood, Prime MinisterLuís Montenegro said Thursday, following similar moves by France and the U.K. However, he said the move would be contingent on Hamas’ disarmament, the release of hostages and Palestinian recognition of Israel.
Trump is not impressed: After initially declining to wade into the fray on recognizing Palestine, the Trump administration is now coming out against the move, my Stateside colleagues report. “The president expressed his displeasure and his disagreement with the leaders of France, the United Kingdom and Canada,” White House press secretary Karoline Leavitt told reporters Thursday, referring to the plans to recognize Palestine. “He feels as though that’s rewarding Hamas at a time where Hamas is the true impediment to a ceasefire and to the release of all of the hostages.”
Rubio raps Starmer: “The U.K. is like, well, ‘if Israel doesn’t agree to a ceasefire by September, we’re going to recognize a Palestinian state,’” U.S. Secretary of State Marco Rubio said in a Fox News Radio interview on Thursday. “So if I’m Hamas, I say, ‘you know what, let’s not allow there to be a ceasefire.’ If Hamas refuses to agree to a ceasefire, it guarantees a Palestinian state will be recognized by all these countries in September.”
Berlin’s scouting mission update: German Foreign Minister Johann Wadephul did end up meeting with Israel’s Prime Minister Benjamin Netanyahu and President Isaac Herzog on Thursday, during his trip to the country. Today, per my Berlin Playbook colleagues, Wadephul will head to the West Bank, meeting among others Palestinian leader Mahmoud Abbas in Ramallah. You can listen to Berlin Playbook’s full interview with Wadephul ahead of his trip here (in German).
TRUMP HARDENS ON PUTIN: Russian President Vladimir Putin’s increasing barrage of Ukraine is “disgusting,” Trump told reporters in the Oval Office on Thursday. He said he planned to slap new sanctions on Moscow, but conceded: “I don’t know that sanctions bother him.” Trump also said his special envoy Steve Witkoff would again travel to Moscow for talks. Reuters write-up here.
IN OTHER NEWS
THAT’S ALL, SPOKES: One of the Commission’s most competent media performers, Belgian deputy chief spokesperson Stefan de Keersmaecker, is leaving the service after more than five years to become director for citizens communication in DG COMM, he confirmed to Playbook. “Best time ever of my career,” he told POLITICO of the job on the podium. “What you guys do is incredibly important. I will probably talk about these years at the [spokespersons’ service] to my grandchildren. Poor kids …”
COUNTING THE CASH: Who’s really in charge of the EU’s €1.8 trillion budget? In many ways it’s civil servant Stéphanie Riso — one of the most powerful people you’ve never heard of. My colleague Gregorio Sorgi has this superb profile to bring you up to speed.
SPLITTING L’ATOMO: The government of right-wing Italian Prime Minister Giorgia Meloni is putting all its bets on advanced new nuclear technologies in a bid to bring down prices and reassert competitiveness, Carlo Martuscelli writes.
ДОБРОДОШЛИ: Swedish diplomat Andreas von Beckerath starts a new role in Belgrade today as the EU’s ambassador to Serbia. He previously served as Stockholm’s ambassador to Poland.