PM Mitsotakis to attend signing of the peace agreement between Israel and Hamas in Sharm El Sheikh on Monday
Prime Minister Kyriakos Mitsotakis, in his Sunday social media post, referred to the Israel-Hamas agreement on the first phase of the Middle East peace plan. He underlined that he would be in Sharm El Sheikh, Egypt, on Monday for the signing of the agreement. “ The agreement represents a historic moment, as, for the first time, a realistic prospect of peace in the region is being created. This diplomatic success is credited as an initiative of President Trump, who has brought all actors in the region to a common framework of agreement,” he said.
Tomb of the Unknown Soldier placed under Defense Ministry oversight
Prime Minister Kyriakos Mitsotakis announced on Sunday that the Ministry of National Defense will assume exclusive oversight of the Tomb of the Unknown Soldier located in front of Parliament. The decision follows a public debate over the use of the monument, which arose after Panos Ruci, the father of a Tempe train crash victim, held a hunger strike for more than 20 days near the site, beside a makeshift memorial for the victims. The area subsequently became a gathering place for mourners and supporters.
Key progress toward Greece-Cyprus power linkup
After a delay of almost two years, the Cyprus Energy Regulatory Authority (CERA) has finally proceeded with the transfer of the “owner” and “operator” licenses of the Cyprus-Greece electricity interconnection (the Great Sea Interconnector, or GSI) to Greece’s Independent Power Transmission Operator (ADMIE), it was announced last Friday. This was one of the pending issues related to the progress of the project, which were discussed at the meeting of the energy ministers of Greece and Cyprus last week and which will be the subject of a new video conference this week of the parties involved under the auspices of the European Commission, and with the participation of the competent commissioner.
https://www.ekathimerini.com/economy/energy/1283580/key-progress-toward-greece-cyprus-power-linkup
Greece’s public debt to return to pre-crisis levels
Public debt will be reduced to 2009 levels, that is, before the 10-year crisis, by 2026. According to the new draft budget, it will amount to 359 billion euros next year, or 137.6% of GDP (a reduction of 7.8 percentage points of GDP compared to 2025), down from 147.8% of GDP in 2010, when Greece received its first bailout package.
https://www.amna.gr/en/article/940037/Greeces-public-debt-to-return-to-pre-crisis-levelsrn
ATHEX: Momentum preserved at Athinon Ave
The growth momentum was preserved for one more day at the Greek bourse on Friday, only this time it was mid-caps that outperformed. The market’s benchmark climbed to a seven-week high on satisfactory turnover, while the banks index recorded yet another 10-year high, even if it appeared to lose steam toward the end of the session. This was yet another week of growth for the main index, the third in a row.
https://www.ekathimerini.com/economy/1283502/athex-momentum-preserved-at-athinon-ave
SUNDAY PAPERS
KATHIMERINI: Political parties inside the reactor
TO VIMA: Pax Trumpiana
REAL NEWS: Farmers and retailers: Block for “middle-men” ahead
PROTO THEMA: The next day for the Middle East: Trump’s son-in-law, the consultant and the Emir
MONDAY PAPERS:
TA NEA: Our national monument, the army and the Greek police
EFIMERIDA TON SYNTAKTON: Unknow Soldier Monument – Constitution Square to become PM Mitsotakis’ military camp
KONTRA NEWS: The government follows the far-right line of Latinopolou regarding the Unknown Soldier monument
DIMOKRATIA: Surveillance bugs at the service of the PM’s associate Mylonakis
NAFTEMPORIKI: Record-high of automated tax declarations expected in 2026
DRIVING THE DAY: TRUMP’S EGYPT SUMMIT
TOP EU OFFICIAL PRAISES TRUMP AHEAD OF GAZA PEACE SUMMIT: Hats off to POTUS. That’s the message from European Council President António Costa as he boarded a plane Sunday evening for Egypt, where he joins Trump and other world leaders today for a summit geared at ending the war between Israel and Hamas. POLITICO is running a live blog here.
Three cheers: Costa warmly complemented Trump’s “leadership” as well as the “tireless work of all mediators,” which meant that “for the first time in a long time, there is real hope” for peace. His comments were shared exclusively with Playbook as he went to join German Chancellor Friedrich Merz, French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni in the resort town of Sharm el-Sheikh.
Look closer: Costa is getting time in the limelight as the EU’s sole representative at the gathering, to which he was invited by Egyptian President Abdel Fattah El-Sisi.
PEC-ing order: The invitation comes down to protocol, as the European Council president outranks both the European Commission chief and high representative when it comes to external representation. (Point of EU geekery: the Council president has “head of state” status in third countries while the Commission chief has “head of government” status, i.e. president versus prime minister).
Personal touch: But by praising Trump personally, Costa sounded more like a head of state himself than an EU official. Von der Leyen and top EU diplomat Kaja Kallas have issued more cautious statements — welcoming Trump’s plan as a “breakthrough,” but without the personal nod to the president.
Not above it: That may seem like a hairline distinction, but it’s one that may not be lost on the famously praise-obsessed Trump.
Another reason why it’s awkward: EU leaders have spent countless hours in Council discussing Gaza. The European Parliament has voted one resolution after another. Von der Leyen belatedly proposed sanctions against Israel last month. None of these efforts had any real impact on the war.
Giving it up: Trump’s squeeze on Israeli Prime Minister Benjamin Netanyahu, by contrast, did. It’s hard for leaders to deny that, especially if the ceasefire lasts.
For now, it’s fragile. Fighting erupted in Gaza City between Hamas militants and members of a prominent clan after the ceasefire started over the weekend, killing 27, per the BBC. Meanwhile, Hamas has not agreed to disarm or leave power, and Netanyahu’s ministers continue to call for the militant group’s “eradication.”
Slowly does it: Costa nodded to those obstacles, speaking of a “long path to peace,” and that “our collective work is just beginning.” Meanwhile the EU’s role would focus on implementation of Trump’s 20-point plan, whose principles the EU “fully supports.”
EU EYES POST-WAR ROLE IN GAZA: So what exactly can Europe do to facilitate peace in post-conflict Gaza? In a nutshell, keep acting as the world’s foremost financial supporter of the Palestinian Authority (€500 million pledged since 2023) and ramp up aid via the newly established Palestine donor group. These efforts, combined with pressure on the PA to reform, should help reconstruct Gaza and strengthen the authority enough to act as guardian of a Palestinian state, the EU thinking goes.
There’s more: The EU stands ready to redeploy its civilian Rafah border crossing assistance mission (EUBAM) to facilitate the entry of aid and other supplies into Gaza, as well as the craftily named EUPOL COPPS — which helps to train the Palestinian Civil Police and other judicial institutions.
The only issue? Brussels is betting a lot of chips on the Palestinian Authority, which only makes a cameo appearance in Trump’s 20-point peace plan as potentially handling funds for Gaza redevelopment once as it has “completed its reform program.” Until then, it would be run day-to-day by a technocratic Palestinian committee overseen by an international “Board of Peace.”
Who’s in: Key actors in a post-conflict Gaza would be Trump himself, as head of that Board of Peace, along with former U.K. Prime Minister Tony Blair — who got a nod from the Palestinian Authority on Sunday to be part of Gaza’s reconstruction, per a report in the Guardian. Regional players Qatar, Egypt and Jordan, which all played a major role in mediation, are also seen as being heavily involved in a postwar Gaza.
Who’s out? Europe, for now. The bloc isn’t mentioned once in Trump’s plan. This doesn’t exclude a role, especially as key benefactors of the PA, but does seem to rule out high-profile EU appointments to the Board of Peace (more on this just below).
PLAYBOOK INTERVIEW: ISRAELI AMBASSADOR
TIME FOR A RESET: For much of 2025, relations between the EU and Israel have been at boiling point. But with the Trump-inspired peace initiative now underway, is there now a chance to lower the temperature?
Welcome to town: With nice timing, Israel’s new ambassador to the EU, Avi Nir-Feldklein, presented his credentials to Costa and Commission President Ursula von der Leyen on Sept. 30, a day after Trump announced his peace plan.
In his first interview in the role, Nir-Feldklein told POLITICO’s Tim Ross that the EU could have a role in shaping the peace and what comes next in Gaza. But first he said the Commission needs to drop the sticks with which it has been beating Israel since the summer and reset the relationship.
WILL EU-ISRAEL RELATIONS GET BETTER NOW? “Right now the Trump initiative has started in a very good way and I believe that the EU would like to be part of it. And if you want to be part of it you need, really, to clear the table of what is hanging above our relationship,” Nir-Feldklein said.
Reminder: In September, von der Leyen announced plans to restrict trade with Israel and impose sanctions on “extremist ministers” in Netanyahu’s administration. She also suspended Commission funding for support to Israel. That’s on top of proposals to suspend cooperation with Israel under parts of the Horizon Europe research program. Opposition from Germany, Italy and others meant these proposed measures have not been enacted.
Two things: First, the EU funding for cooperation with Israeli institutions that von der Leyen put on hold should be restored. “This is one topic that we hope will be off the table and those projects that were put on hold will be resumed,” Nir-Feldklein said. Second, the Commission needs to address the proposed suspension of parts of the EU-Israel association agreement on the Horizon Europe research program and preferential trade terms.
Board of Peace? Without these steps, Nir-Feldklein said, it’s unlikely that European powers will get their wish for the region to have a seat on Trump’s proposed Board of Peace, which is designed to oversee the administration of Gaza by a committee of Palestinian officials. Read Tim’s full write-up here.
THE OTHER SIDE: Palestinian officials do not believe it is the right moment for the EU to lift pressure on Israel, according to a person familiar with the matter. The situation on the ground — especially in the West Bank — is no better, even though the peace initiative is underway, the person said.
SPYING RING LATEST
HUNGARIAN COMMISSIONER DENIES KNOWLEDGE OF SPYING: Olivér Várhelyi, the commissioner at the center of media reports alleging that he oversaw a spying ring in Brussels, told Ursula von der Leyen he was “not aware” of efforts to recruit staff from the EU executive, a Commission spokesperson told Playbook.
Sunday meeting: Von der Leyen met with Várhelyi on Sunday prior to her trip to the Western Balkans, and two days after a report by several media outlets alleged the commissioner had overseen efforts to recruit European Commission staffers when he was in charge of Hungary’s permanent representation.
On Thursday, a Commission spokesperson said the Commission would set up a working group to investigate the claims. “The relevant colleagues in the Commission have started their work in this regard,” the spokesperson said.
CENTRIST GROUP LEADER URGES VDL TO ACT: Don’t expect Várhelyi’s denial to lower political pressure on the Commission. In comments to Playbook, Renew Europe President Valerie Hayer said von der Leyen had “both the responsibility and the power to act.”
Bad feeling: “From the very beginning, Renew Europe warned against Mr. Várhelyi’s nomination and his close ties to Viktor Orbán’s government,” Hayer said. “His record has consistently shown loyalty to pro-Orbán, not European interests.”
Investigate, now: “The latest findings only deepen the concerns … These allegations are extremely serious and must be fully investigated,” she continued. Spokespeople for EPP chief Manfred Weber and S&D boss Iratxe Garcia did not immediately respond to Playbook’s requests for comment.
Union calls for “speedy action”: Cristiano Sebastiani of the Renouveau & Démocratie internal staff union at the Commission said he expected leadership to “to do things properly and fast.” While Várhelyi should be fully presumed innocent, Sebastiani said it was imperative that the Commission act to lift any suspicion “as soon as possible” given the risk that EU citizens may think that Commission staff are acting on behalf of their home countries. “We cannot have this kind of suspicion.”
The legal angle: According to Alberto Alemanno, professor of law at HEC university, “the primary responsibility to oversee EU commissioners’ fitness falls to the EU Commission president … and to the EU Parliament — notably the Legal Affairs Committee and the ENVI/AGRI committees — which greenlighted the then-Commissioner-designate Várhelyi for the job.”
Options: The Council, by simple majority, or the Commission, could refer Várhelyi to the Court of Justice of the EU, which could force him into retirement or strip him of his right to a pension or other benefits, per Alemanno. The only precedent in this regard is ex-Commissioner Edith Cresson, who was not sanctioned despite being found in breach.
HOLD ON, WHAT HAPPENS IF YOU GET IN TROUBLE? The Commission did not comment on whether Várhelyi had been questioned by one of its internal security services (of which there are no fewer than 10) in addition to speaking with von der Leyen.
What if: But, if Várhelyi were to be questioned, it would most likely be by a member of the Directorate-General for Human Resources and Security, (HR-DS) per a Commission insider. Such questioning is done on the premises in the Berlaymont, which means that if the person in question is elsewhere at that time, they’ll be escorted by car to the Commission’s main building. Depending on the evidence, HR-DS can decide to contact Belgian police or refer the issue to IDOC, the Commission’s internal disciplinary board. (To be clear: We have no evidence this has occurred.)
TRADE WOES
TRADE COUNCIL IN DENMARK: EU trade ministers are in Billund, Denmark today to take a bit of a breather: They’ll be visiting the Lego campus and hear from the company’s chief financial officer about geopolitics and value chains, Camille Gijs writes in to report.
One brick at a time: Their informal meeting starts in earnest Tuesday morning, amid renewed pressure from Washington over the EU’s green and digital rulebooks and after the U.S. trade representative sent a position paper requesting that Brussels loosen what the Trump administration considers to be non-tariff barriers to trade.
Drawing up a checklist: The EU executive is now coming up with a playbook to persuade the Trump administration that Europe is serious about cutting red tape for American companies, we reported Friday.
Flipping the narrative: Instead of bowing to Trump’s pressure, the EU executive is looking to frame its own deregulation push to show it’s playing ball on the trade agreement.
EUROPEAN DEFENSE
NO DEFENSE WITHOUT DEMOCRACY: Europe’s plans to rearm at a pace not seen since World War II could backfire if governments can be hijacked by hostile foreign powers interfering in elections, the secretary-general of the Council of Europe warned. Speaking to POLITICO’s Gabriel Gavin, Alain Berset said despite major investments in military capabilities, the continent will not be safe unless it defends its institutions as well.
Meddling fears: “We will have in five, 10, 15 years a much higher militarized continent than we have today,” Berset said. “And, in parallel, we are witnessing a strong backsliding in democracy … I would say everywhere. I see no exceptions, to be honest, including in countries with very high quality democracies. Who knows, an extremist group winning suddenly an election somewhere, maybe under manipulation. And what does it mean for security in Europe? … That could be dangerous.”
Plans in the works? Berset met with NATO Secretary-General Mark Rutte on the sidelines of the European Political Community summit in Copenhagen earlier this month, and told POLITICO the pair had agreed on the need for a democracy shield as countries boost spending. “It’s not easy because you need to use tools that we will probably see as maybe not legitimate in other contexts,” he said, pointing to bans on polling in the days prior to elections as one example of a restriction that could be expanded to limit potential interference.
MEANWHILE, IN UKRAINE: Russia lost 281,550 soldiers in Ukraine in the first eight months of this year while making very small frontline gains, according to a document that Ukrainian intelligence says contained leaked Russian data. Veronika Melkozerova has more.
Now for Ukraine? Trump told reporters he would consider arming Ukraine with long-range Tomahawk missiles after chatting to Ukrainian President Volodymyr Zelenskyy over the weekend. “I might have to speak to Russia, to be honest with you, about Tomahawks. Do they want to have Tomahawks going in their direction? I don’t think so,” Trump told reporters. POLITICO has a write-up.
Also speaking with Zelenskyy … EU High Representative Kaja Kallas and tech chief Henna Virkkunen, who are in Kyiv today.
IN OTHER NEWS
PORTUGUESE ELECTION LATEST: Far-right Chega failed to conquer any major cities in Sunday’s nationwide local elections in Portugal, with its leader André Ventura saying “this was a good night,” but admitting the party hadn’t achieved its objectives. Aitor Hernández-Morales has more.
FRANCE HAS A NEW GOVERNMENT … AGAIN: French Prime Minister Sébastien Lecornu unveiled his next government on Sunday night, just two days after he was reappointed as head of government. Among those staying on are Justice Minister Gérald Darmanin, Budget Minister Amélie de Montchalin and Foreign Minister Jean-Noël Barrot, centrists who have been in their posts since early this year. Roland Lescure, a Macron ally who had been named economy and finance minister in Lecornu’s aborted government, will also stay on. Giorgio Leali has the full take.
Big read: Our team in Paris has this wrap of the week that shook France.
What’s really wrong with French politics? In a nutshell, the Fifth Republic and its inability to accommodate compromise, Giorgio and I write in this stand-back on the political crisis.