PM Mitsotakis welcomes von der Leyen proposal for budget exemption of defence expenditures
Greece welcomes European Commission President Ursula von der Leyen’s proposal to activate the escape clause for defence investments, Prime Minister Kyriakos Mitsotakis said on Friday.
Doubting institutions leads to a social ‘jungle’
In an extensive interview with Kathimerini, Greek Prime Minister Kyriakos Mitsotakis attempts to respond to what he calls the “operation to weaponize” the 2023 Tempe rail disaster. He accuses the opposition of engaging in “blind protest that hides a lack of political positions” and a “dangerous attack on institutions.” He also explains his reasoning for choosing newly elected Konstantinos Tasoulas, a former house speaker and New Democracy MP, for president (voted February 12), talks about the government’s foreign policy, specifically toward Turkey, and comments on floating scenarios of a possible cabinet reshuffle.
Androulakis: ‘The time of illusions and delays is over for Europe…humanity is entering uncharted waters’
“It is now clear, after the statements of the vice president of the United States and the other representatives of the new American administration in Munich that the time of illusions and delays is over for Europe and that humanity is entering uncharted waters,” main opposition PASOK-Movement for Change leader Nikos Androulakis said in a social media post on Sunday, under the headline “‘Security Conference’ or confirmation of Insecurity?”.
Meeting on earthquake activity near Santorini says current precautions must continue
Current precautions and advice for protection against earthquakes will continue to apply for the islands around the Anydros fault, which lies between Amorgos and Santorini, according to a meeting of expert scientists held on Sunday to discuss the latest available data, during a joint session of the Permanent Scientific Committee for Seismic Risk Assessment and Reducing Seismic Danger and the Permanent Scientific Committee for Monitoring the Greek Volcanic Arc of the Earthquake Planning and Protection Organisation (OASP).
ATHEX: Bourse gains another 3% this week
Athinon Avenue has just completed eight consecutive weeks of growth for its benchmark, which on Friday climbed to yet another 14-year high thanks to small daily gains. This session bore little resemblance to the historic one observed of Thursday, with turnover cut in half and buyers only gaining the upper hand at the end of the day. This was largely thanks to the rise of certain blue chips that had not seen much in the way of gains in recent days.
https://www.ekathimerini.com/economy/1261753/athex-bourse-gains-another-3-this-week
SUNDAY PAPERS
KATHIMERINI: Mitsotakis: “Some want to turn us into a jungle”
TO VIMA: Meteor missiles and the armaments game
REAL NEWS: Santorini: the fears of seismologists
PROTO THEMA: Trump is re-designing the world
MONDAY PAPERS:
TA NEA: East of Kassos island: Athens is mulling a major move
EFIMERIDA TON SYNTAKTON: Extreme-right faction involved in the wiretappings scandal
KONTRA NEWS: Mitsotakis has been cut off by Trump and is an enemy of Putin
DIMOKRATIA: Stop here! Annul the traitorous Prespa Agreement!
NAFTEMPORIKI: Young freelancers “want” poverty pensions
DRIIVING THE DAY: UKRAINE HUDDLE IN PARIS
EU LEADERS SCRAMBLE TO RESPOND TO U.S. PRESSURE ON UKRAINE: EU leaders are grappling with existential questions today about the price they’re willing to pay for a seat at future Ukraine peace talks — including whether they will put boots on the ground to deter further attacks from Russia.
Starmer ramps up the pressure: U.K. Prime Minister Keir Starmer ratcheted up the stakes, writing in the Telegraph on Sunday night that he is ready to send troops to enforce a peace deal. Read his op-ed here.
Box-ticking: At the heart of the Paris talks, which kick off this afternoon, is a questionnaire addressed to EU leaders by Washington, first reported by the FT. The form asks them to spell out what security guarantees they will provide to Ukraine, whether they will send troops, what they need from the U.S., and how they would respond to a Russian attack.
Punch-drunk: Despite months of wrangling over Ukraine, these questions — and the way they are being presented — rattled EU officials. Many were shocked at the Munich Security Conference by U.S. Vice President JD Vance’s broadside against European democracy and POLITICO’s revelation that they would not be invited to initial talks between Washington and Moscow in Riyadh, Saudi Arabia. (Axios reports the meeting will take place Tuesday.)
Costa hits out: “If Trump really wants that the Europeans assume greater responsibility for their own security, then of course the Europeans need to be the key actor in designing the new security architecture,” Council President António Costa told the FT. “The negotiations … need to take into account that Russia is a global threat.”
U.S. Secretary of State Marco Rubio sought to downplay concerns, saying in an interview with CBS News that Ukraine and Europe would be part of any “real negotiations” to end the war, before adding that “we’re just not there yet.” Meanwhile, NBC News reported that two U.S. officials had confirmed Kyiv was not invited to the Saudi talks, but said the intention is for the Americans to hold a bilat with Russia, then one with Ukraine, and then talks with all three together.
Tough love from Helsinki: Finnish President Alexander Stubb told reporters in Munich: “I see a lot of people here who are upset and who are not happy with the situation. But my question is, ‘OK, what are you going to do about it?’”
For Ukraine, the answer is clear. European leaders must be “very precise” in their commitments “since Ukraine is a structural part of European security,” President Volodymyr Zelenskyy’s diplomatic adviser Ihor Zhovkva told Brussels Playbook.
Tick tock: “If after this meeting there is nothing practical, then time is not on our side,” said Zhovkva, who had just arrived from Munich for meetings with senior EU officials in Brussels. “It does not only boil down to this questionnaire … European leaders should take a much more bold stance as far as practical actions are concerned.”
Smorgasbord: Quizzed on what could come out of the Paris talks, three EU diplomats listed sanctions, a possible new aid package for Ukraine, reopening the subject of using frozen Russian assets and potential troop deployments — or nothing.
Heart of the matter: Despite demands from Trump’s administration, the EU is still slow-walking its decision on troops. “If you’re asking us to put our men and women in harm’s way, we’re going to have to have a conversation about what that means, and what the backup to the guarantees is,” said a second diplomat, who like others cited here was granted anonymity to discuss the Paris talks. “We need to be involved in that conversation. This is the leverage they are trying to use” to ensure a seat at the table in peace talks.
U.S. not excluded: Indeed, Ukrainian and European officials insist that the U.S. must be part of the security guarantees. They don’t rule out American troops participating in a peacekeeping mission. “I don’t think it’s excluded,” added the second diplomat.
Berlin balks: German Chancellor Olaf Scholz took aim at the Trump administration’s unilateral announcements about Ukraine peace talks, saying European countries would not be providing security guarantees “that we have not developed and accepted ourselves.” Speaking during last night’s televised debate, Scholz also said: “Ukraine must be a democratic, sovereign nation over whose heads no decisions are made.”
Not just Ukraine: An EU official said the talks in Paris would focus mainly on Ukraine and security guarantees, but also touch upon “increased defense spending, financing options and acceleration of joint defense projects.”
Get ready for more: The leaders of France, Germany, the U.K., Poland, Italy, Spain, the Netherlands and Denmark plus NATO Secretary-General Mark Rutte and the presidents of the European Commission and Council will attend today’s talks in Paris. Other meetings with more players are likely to follow, the EU official said.
In his op-ed last night, Starmer wrote: “While European nations must step up in this moment — and we will — U.S. support will remain critical and a U.S. security guarantee is essential for a lasting peace, because only the U.S. can deter Putin from attacking again.” He said he’d meet with Trump “in the coming days.”
SCOOP — EPP LEADERS HUDDLE TUESDAY: Indeed, leaders from the conservative European People’s Party will gather at 9 a.m. Tuesday via video conference for an “extraordinary informal EPP Summit” focused on “geopolitical developments,” an EPP official writes to Playbook. The gathering will be about “safeguarding Europe’s security and speaking out with one voice in the world,” the party’s President Manfred Weber said in a statement.
NOW READ THIS — WHO WILL SPEAK FOR EUROPE? As EU leaders jostle for a seat at the Ukraine peace talks, a search is underway for a leader who can represent Europe. My U.S. colleagues Jack Detsch, Joe Gould and Paul McLeary have the full story from Munich here.
The bottom line: Europe has faced many decisive moments on Ukraine. This may be the most decisive one yet. What it decides in the coming days and weeks will define not just Ukraine’s future, but the bloc’s status as a power on the world stage. No pressure!
DEFENSE FINANCING
THE OTHER BIG CHALLENGE: As European leaders gather in Paris, finance ministers from 27 EU countries will lock horns over how to fund the bloc’s defense splurge amid rising concerns that the U.S. will leave Ukraine in the lurch.
SO WHAT? Donald Trump’s sudden move to end the war in Ukraine put pressure on EU capitals to increase defense spending immediately. Finance ministers will discuss how to free up more space for military expenditure over dinner today, according to the invite by Polish Finance Minister Andrzej Domański seen by Gregorio Sorgi on Morning Financial Services.
The backdrop: There is growing momentum for radical solutions. Commission President Ursula von der Leyen on Friday suggested triggering an emergency clause that would de-facto exempt defense spending from the EU’s budget deficit limits. The announcement was welcomed by highly indebted countries such as Italy and Greece.
What’s the divide: Everyone agrees with the need to amp up defense spending — but opinions differ on how to do that. Gregorio walks us through the options.
Two ideas: The Commission can trigger the so-called general escape clause which can be used “in case of major shocks to the euro area or the Union as a whole.” Otherwise, it can opt for the national escape clause “in the event of exceptional circumstances” that affect the public finances of individual countries. But some fear the latter might single out a country to financial markets and trigger mayhem.
Who has the power? EU countries don’t like being told what to do by the Commission — especially on sensitive matters such as defense. A group of states led by Poland prefer to tweak rules themselves — keeping the Commission’s role to a minimum.
What critics say: Government officials tinkering with the rules will hardly create the fiscal space needed for a defense splurge. Officials from highly indebted governments such as Italy and Spain tend to prefer von der Leyen’s idea.
What does Germany want? Over the weekend, Chancellor Scholz supported exempting defense spending that exceeds NATO’s 2 percent target — but stopped short of endorsing the emergency clause. His likely successor, Friedrich Merz, will have to make the big call.
The bottom line: The defense debate is all to play for.
MEANWHILE IN POLAND, FARMERS CHALLENGE UKRAINE SUPPORT POLICIES: Angry Polish farmers are protesting at the Ukraine border, challenging a once-strong alliance between the countries, Bartosz Brzeziński reports. They claim EU policies undermine their livelihoods and their message appears to have resonated, with 81 percent of Poles supporting their cause. The protests reflect deeper national debates ahead of a May 18 presidential election.
UNDOING THE GREEN DEAL
VDL SURPRISES WITH DEREGULATION DRIVE: Ursula von der Leyen has undertaken a rapid deregulation initiative since beginning her second term as European Commission president, surprising many in Brussels. Under pressure from right-wing governments, her agenda aims to simplify EU rules and boost industrial competitiveness — but that’s raising concerns about transparency and environmental standards, Kathryn Carlson reports.
MACRON’S ANTI-GREEN U-TURN SPARKS MUTINY: Emmanuel Macron’s battle against key chunks of the EU’s Green Deal is raising criticism within his own ranks, with allies of the French president complaining that yielding to pressure from businesses and the U.S. is against France’s and Europe’s long-term interests, Giorgio Leali reports.
Revolt: “My fear is disavowal, my fear is that we are naive enough to think for a minute that we’ll be able to confront the new American economy with the tools it uses itself,” said Olivia Grégoire, a Macronist member of parliament and former minister. Other Macronists like MEP Pascal Canfin and former Europe Minister Clément Beaune have similar qualms, Giorgio reports.
Deregulation push: As POLITICO revealed, France is asking Brussels to indefinitely delay the due diligence directive, which requires companies to check that their suppliers comply with environmental and forced labor rules, and to delay by two years the corporate sustainability reporting directive.
The Times They Are A-Changin’: Macron’s allies are in a difficult position, especially as they were defending the very same rules France is now proposing to delay back when Paris held the rotating presidency of the Council of the EU. Read Giorgio’s story here.
IN OTHER NEWS
TRADE MISSION TO WASHINGTON: EU trade boss Maroš Šefčovič will travel to Washington this week for high-level meetings as Europe braces for a potential trade war with the U.S., three officials told my colleague Suzanne Lynch.
COMMISSION RESHUFFLE: The Commission’s top civil servant, Ilze Juhansone, announced some personnel moves in the powerful secretariat-general in an internal memo to staff sent Friday and seen by Playbook’s Eddy Wax. From today, Stefano Grassi becomes acting director of external relations … Chris Becher takes over a unit on the EU’s multi-annual budget … and Stefan Fuehring takes over a unit covering digital, industry and the internal market.
Coming and going: They are joined by other Commission staff: Katharina von Schnurbein, who coordinates work combating antisemitism; Marion Lalisse, who works against anti-Muslim hatred; and Vincent Depaigne, who coordinates dialogue with churches. Part of the disbanded DG Reform also joined the sec-gen. Meanwhile, some are leaving in the reshuffle, including Michael Karnitschnig, who becomes a director covering the Gulf in the new DG MENA. Jean-Charles van Eeckhaute also joins DG MENA.
More changes are coming: A deeper shake-up of the sec-gen “is taking a bit longer than expected” Juhansone wrote.
AFD LEADER AND BEIJING: Bild reports that AfD leader Alice Weidel repeatedly met former Chinese Ambassador Wu Ken in his Berlin residence. Weidel also discusses her relationship with China, the U.S. and Russiain an interview with Bild.
HAMAS OFFER: The Sky News Arabic service reported overnight that Hamas has said it’s willing to hand the Gaza Strip over to the Palestinian Authority, as long as any Hamas government employees are “reabsorbed into the new administration” or retired with a “guarantee that their salaries will continue to be paid.” Per Sky, Hamas made the overture after pressure from Egypt. Israel is sending a delegation to Cairo today to hold talks on the hostage and cease-fire deal, the Jerusalem Post reports.