Espionage case rattles military
A senior Air Force officer was arrested Thursday on espionage charges, accused of transmitting highly classified military information to China using specialized encrypted software, according to government and security sources.
https://www.ekathimerini.com/politics/foreign-policy/1294525/espionage-case-rattles-military
Mitsotakis-Erdogan meeting on February 11 in Ankara
During a visit to Ankara on February 11 for the Greece-Turkiye High-level Cooperation Council (HLCC) and a meeting with the Turkish president Recep Tayyip Erdogan, Prime Minister Kyriakos Mitsotakis will strive to preserve and further enhance channels of communication and to establish a stable and functional relationship with Turkiye during a time of global instability and uncertainty, government sources said on Thursday.
https://www.amna.gr/en/article/968157/Mitsotakis-Erdogan-meeting-on-February-11-in-Ankara
Supreme Court ruling brings relief to borrowers, trouble for banks
Banks and funds will have to reprice the loans protected by the so-called Katseli Law, to comply with the Supreme Court decision that defines the monthly installment of the loan as the basis for calculating the interest rate and not the total principal.
https://www.ekathimerini.com/economy/1294530/shock-decision-for-creditors
Top unionist under investigation for embezzlement
Greece’s Anti-Money Laundering Authority has frozen the assets of Yiannis Panagopoulos, the longtime president of the country’s largest private-sector labor union, amid a sweeping probe into the alleged embezzlement of tens of millions of euros in state and European Union funds. Panagopoulos, who leads the General Confederation of Greek Workers (GSEE), is accused of being part of a scheme to siphon off funds intended for vocational training and education programs. The authority’s report, now in the hands of a public prosecutor, also implicates six other individuals and six companies. Officials have ordered the freezing of all corporate accounts involved and the seizure of two properties.
https://www.ekathimerini.com/news/1294455/top-unionist-under-investigation-for-embezzlement
ATHEX: Supreme Court decision sends banks lower
The Supreme Court verdict on the calculation of interest on bad loans being based on the monthly tranche and not the entire debts was not only bad news for banks and the consistent borrowers, but also for stock prices on Thursday, resulting in a significant decline for the Greek bourse. The benchmark came off Wednesday’s 16-year highs to lose more than 40 points, while turnover was the lowest of the last eight sessions.
https://www.ekathimerini.com/economy/1294524/athex-supreme-court-decision-sends-banks-lower
KATHIMERINI: The clues that gave away the military air force official involved in espionage
TA NEA: Espionage on behalf of China
EFIMERIDA TON SYNTAKTON: The government is “drowning” the revelations regarding the lethal shipwreck with migrants
RIZOSPASTIS: Strike at Piraeus and Thriassio: No sacrifice for profits – No involvement in war
KONTRA NEWS: The government attempts to counterbalance the OPEKEPE scandal with the scandal of the General Confederation of Greek Workers (GSEE)
DIMOKRATIA: Breathing space for 350,000 loan holders – 1 billion euro gift to funds!
NAFTEMPORIKI: What the decision of the Supreme Court means for loan holders
DRIVING THE DAY
TALKING TURKEY: The European Union is pushing for a thaw with Ankara, seeking stronger trade, energy and transport ties with the strategically important regional power to counter Russia and reduce its reliance on trade with the U.S.
EU Enlargement Commissioner Marta Kos arrives in the Turkish capital today toting a multimillion-euro package of European Investment Bank loans earmarked for the green transition. Kos will also discuss how to smooth the flow of goods into and out of the bloc.
Bigger than Mercosur: The commissioner told Playbook the value of the trade relationship was almost double that of the EU’s commercial interactions with South American countries and “just below the combined trade volumes with Mercosur countries and India.” The EU “cannot ignore this economic reality while we are in search of diversification and anchors of economic stability,” she said.
Strategic friendship: As the EU sets about finding its niche in an increasingly uncertain world, Ankara is being seen as a key ally to have on side. “Peace in Ukraine will change the realities in Europe, especially in the Black Sea region, [so] Türkiye will be a very important partner for us,” said Kos.
Ü-turn time: If it sticks, the rapprochement would end a decade of chilly relations. Formally an accession candidate, Turkey’s application to join the bloc has been frozen for years as a result of Ankara’s human-rights breaches and democratic backsliding, amid broader political tensions with the West. “I know Türkiye has a very long democratic tradition and also a strong civil society and this is what we need to see strengthened to build trust between the EU and Türkiye,” the commissioner said.
Oddly specific intervention: Jailed Istanbul Mayor Ekrem İmamoğlu wrote from his cell Thursday that the EU should push ahead with border liberalization, despite the impasse over political freedoms. “The Customs Union remains the only rules-based and normative framework underpinning Türkiye–EU relations,” the prominent opposition figure said in a social-media post.
“Yet today, it risks becoming unsustainable if it is not updated in line with global economic transformation and geopolitical realities,” İmamoğlu said.
Seize the moment: What’s new is that Turkey’s historic rivals inside the EU — notably Cyprus — have become cautiously supportive of warmer ties. Cyprus’ deputy Europe minister, Marilena Raouna, told POLITICO’s Zoya Sheftalovich that “the Cyprus Presidency can be an opportunity for EU-Türkiye relations.”
“Türkiye’s positive and constructive engagement on Cyprus-related EU obligations is an integral part of that,” Raouna said. The full story from Zoya and Nick Vinocur is worth a read.
Turkish delight: Ankara’s representative in Brussels, Yaprak Balkan, said the relationship between the two sides can become stronger by building on mutual interests. “Türkiye’s strategic objective continues to be accession to the European Union and this should be the guiding light in our relations,” Turkey’s College of Europe-educated ambassador to the EU said.
Realpolitik: A senior EU official, meanwhile, granted anonymity to speak outside of the usual channels, admitted relations with Turkey are being “shaped by geopolitical realities. From Syria’s transition to Black Sea security, counterterrorism and migration — none of these challenges can be addressed without Turkey.”
The case for dialogue: Those shared interests, the official went on, “don’t erase disagreements, for example over civil liberties, where Turkey is often on the wrong track, but they make engagement indispensable.”
Scoop: The European Commission will today publish a major analysis of how to scale up transport along the trans-Caspian corridor, a network of railways and ports that link Europe and Asia. To keep goods moving faster, the 75-page study, seen by POLITICO ahead of time, recommends smoother, more aligned border rules.
Because the investment requirements of the infrastructure “are too large for public budgets alone, it points to public-private partnerships as essential to modernizing infrastructure,” according to a press statement prepared for the study’s release.
EPSTEIN FALLOUT
MANDELSON MIASMA: The European Commission’s investigation into whether former Trade Commissioner Peter Mandelson breached its internal rules in his dealings with the deceased convicted sex offender Jeffrey Epstein is continuing. But for now, the bloc’s fraud and corruption office isn’t likely to become involved, two officials close to its internal review processes told Mari Eccles and me.
The Berlaymont’s focus will be on examining thousands of new documents as the circle of European politicians being pulled into the scandal widens. “Whenever there is any indication of a possible breach of the obligations under the … Code of Conduct, the Commission assesses possible breaches and takes action on that basis, if necessary,” a spokesperson told Playbook.
“As new documents were published in the past days, we are looking into these and assessing whether there is any breach of the obligations,” the spokesperson said.
Probe wars: Veteran British Euroskeptic and Reform UK Leader Nigel Farage on Wednesday called for the EU anti-fraud office OLAF to open an investigation into Mandelson, amid reports the then-commissioner may have given Epstein advance warning of the half-trillion-euro bailout for Greece. Mandelson served as the bloc’s trade chief from 2004-2008.
Ex post facto: According to one EU official, potentially sensitive communications seen so far mostly date to after Mandelson’s time in the Commission — “therefore, the Farages of the world may want to put it on Brussels but it’s not,” the spokesperson said.
Kiss emoji: With or without Mandelson, Epstein maintained contacts in the city. And, with the scale of his human trafficking and influence activities being pieced together through millions of new documents, the Belgian capital features frequently — from flirtatious messages to restaurant recommendations.
Tech trouble: Meanwhile, one of the emails released by the U.S. Department of Justice shows an account belonging to a cybersecurity researcher inviting Epstein to feed into a speech the researcher was due to give to the European Parliament on “the regulation of intrusion/surveillance software.” Epstein maintained an active interest in surveillance and traded emails about EU policies, including expressing concern over cryptocurrency regulation.
Now read this: Epstein used his network to get close to some of Europe’s most powerful people. My colleagues Marion Solletty, Paul de Villepin and Kathryn Carlson have the deep dive into exactly how he managed that.
Davos boss: The World Economic Forum has announced it has begun an independent review into its CEO, Børge Brende, who documents indicate dined with Epstein three times in 2018 and 2019, with the two exchanging texts and emails. Brende requested the probe, the organization told Kathryn.
Meanwhile, the U.K. government is concerned the release of the “real time” texts and emails of the notoriously colorful and direct Mandelson could harm the country’s relationship with the U.S. And Norway is probing the late sex offender’s links to Thorbjørn Jagland, a former prime minister, the FT reports.
RUSSIA RELATIONS
MACRON’S KREMLIN GAMBIT: France courted controversy among its allies by dispatching top diplomatic advisor Emmanuel Bonne to Moscow for talks Tuesday, with President Emmanuel Macron spearheading a push to ensure Europe is in the room on any future peace negotiations.
Try harder: For now, diplomats and politicians in Europe are reserving their judgement. Not so Russia’s Foreign Minister Sergey Lavrov, who described the move as “pathetic diplomacy.”
Criteria for success: “The German government was informed in advance of the talks,” said Adis Ahmetovic, a foreign-policy lawmaker from the center-left Social Democrats, part of Germany’s governing coalition. “Talks with the Russian side are effective if they take place in close coordination with European and Ukrainian partners and relate to the negotiation process.”
Macron has previously called for diplomatic channels to be opened and joined forces with Italy’s Giorgia Meloni to push for the appointment of a special representative for any future peace talks. Others, however, had worried that would legitimize dialog with a Russian regime that shows no signs of wanting peace.
The verdict is in: A European diplomat involved in debriefings, meanwhile, said there is a shared understanding in Brussels that the “context is quite different from 2022” and that the overtures were “well aligned” with other capitals. A second diplomat said the move would be supported as long as it doesn’t involve going behind Ukraine’s back.
IN OTHER NEWS
TIME TO UPDATE NUCLEAR TREATY: President Trump used his Truth Social platform Thursday to call for a new and “modernized” nuclear arms control treaty to replace the New Start agreement. Trump called the now-expired New Start a “badly negotiated deal by the United States that, aside from everything else, is being grossly violated.”
Outreach: The U.S. president also used the platform last night to endorse Viktor Orbán for reelection, praising the Hungarian prime minister’s “proven track record of delivering phenomenal results.” That came as the FT reported the U.S. State Department is set to fund MAGA-aligned think-tanks and charities across Europe to spread the Trump administration’s policy positions.
OMNIBUS OR OMNISHAMBLES? Planned simplification of EU rulemaking could harm democracy if it speeds up the process by cutting out impact assessments and public consultations. That’s according to NGOs, experts and trade unions as part of a call for feedback on the move, Leonie Cater and Marianne Gros report.
X-CISED: Spain’s Youth Minister Sira Rego floated the prospect of a countrywide ban on Elon Musk’s X on Wednesday for what she described as “flagrant violations of fundamental rights” on the platform.
GREEN AND PLEASANT LAND: A meeting of NATO defense ministers in Brussels next week will discuss plans to bolster the security of Greenland, U.K. Defence Secretary John Healey told Reuters.
IT’S ALL DOWNHILL FROM HERE: Paul Dallison looks at the controversies that could derail the Winter Olympics in this week’s Declassified column.
NOW LISTEN TO THIS: On this week’s episode of the EU Confidential podcast, Mateusz Morawiecki, the former Polish PM now leading the European Conservatives and Reformists, lays out his vision for an “economic NATO.” Host Sarah Wheaton is joined by Zoya Sheftalovich to analyze this tipping point moment in U.S.-EU relations — and to preview the new Brussels Playbook Podcast, which debuts next week. You can listen and subscribe to both EU Confidential and the Brussels Playbook Podcast here.