PM highlights Middle East crisis, Euro-Turkish relations at European Council Summit
Prime Minister Kyriakos Mitsotakis emphasized the importance of addressing the crisis in the Middle East during his participation in the Special European Council taking place in Brussels from Wednesday to Thursday.
Fourth RRF payment request is submitted
Alternate Minister of National Economy and Finance Nikos Papathanasis submitted the fourth payment request, amounting to 2.3 billion euros, for the loan part of the Recovery and Resilience Facility (RRF) to the European Commission on Wednesday.
https://www.ekathimerini.com/economy/energy/1236693/fourth-rrf-payment-request-is-submitted
Dendias: The creation of an anti-aircraft and anti-drone canopy is within our planning and our long-term programme
“The creation of an anti-aircraft and anti-drone canopy is within our planning and our long-term programme”, Defence Minister Nikos Dendias said in an interview with SKAI TV on Wednesday.
IMF: Reduction of Greek public debt to 158.8% of GDP in 2024—Primary surplus of 2.1%
The International Monetary Fund (IMF) forecasts for Greece a primary surplus of 2.1 per cent of GDP this year and a decrease in public debt by 10 percentage points to 158.8% of the GDP in its report on fiscal developments (Fiscal Monitor).
ATHEX: Index sees small recovery after losses
After four sessions of decline for its benchmark, adding up to 4.44%, the Greek stock market rebounded on Wednesday, though not in the fashion that would have offset a significant part of recent losses. The losing streak may have been snapped, but it will take more convincing for traders to revert to the rising course of the month’s first half.
https://www.ekathimerini.com/economy/1236699/athex-index-sees-small-recovery-after-losses
KATHIMERINI: Netanyahu is determined to deal blow to Iran
TA NEA: Retroactive payments: the first conclusions after the hearing at the Supreme Court
EFIMERIDA TON SYNTAKTON: Citizens don’t believe the government’s success story
AVGI: The Mitsotakis government is guilty and incompetent, operating a state full of holes
RIZOSPASTIS: Thousands hit the streets to protest
KONTRA NEWS: Profiteers target the Easter table
DIMOKRATIA: Greek MPs “stabbed” national interests
NAFTEMPORIKI: Strict wealth income declaration for those who appeal objective criteria
EUCO DAY 2: ECONOMY
SHOW ME THE MONEY: The European Union’s 27 leaders gather again in Brussels this morning “with tall dreams and short pockets,” as my colleagues Karl Mathiesen and Barbara Moens put it.
Countering the IRA: They’ll agree on a lofty “New European Competitiveness Deal” that aims to counter the much-feared exodus of EU industries to greener pastures of lavish tax cuts and subsidies in the United States and China.
But there’s much skepticism over what medicine to prescribe, how to finance it and even whether the EU economy is as sick as generally proclaimed.
First, do no harm: Leaders should heed that age-old maxim before tinkering with the EU’s competition rules, goes the thinking of skeptics. The draft conclusions contain some rather worrying language on the “state aid and competition framework,” arguing that “Europe needs an urgent paradigm shift.”
Back to basics: Coincidence or not, EU competition chief Margrethe Vestager this week gave a speech to industrialists that read like a warning ahead of today’s EUCO.
“Unlike what we may hear, Europe does not need to reinvent itself, it needs to get back to basics: remove barriers, enforce existing rules. … Rather than betting on taxpayers’ money to subsidize our economy,” she told them. “Europe can never outspend the U.S. and China. We’re not good at being American. Even worse at being Chinese.”
Mixed signals on Green Deal: Another fear expressed by some diplomats and officials is that by stressing the need for cheap energy and for EU policy to focus more on industry, today’s summit of EU leaders could send mixed signals to markets about how serious they really are on climate and biodiversity commitments.
Another problem no one really has an answer to: How to raise the trillions EU leaders would need to compete on subsidies in the U.S. and China, build a green economy, military deterrence and tightening the EU’s fiscal rules to cut debt.
Much ado about nothing? As often when EU leaders don’t really agree on a way forward, the risk is that they’ll come up with some lofty promises that say everything and nothing. Much of today’s draft conclusions read like Freudian free association.
Dear Santa: The EU, read the draft leaders’ conclusions, wants to be a leader on “5G and 6G … AI, blockchain, quantum computing and immersive reality technology,” it wants “abundant, affordable and clean energy,” a “circular economy,” well-paid jobs, export markets and “a true level playing field.”
That’s what EU negotiators like to call a “Christmas tree” — where everyone adds their little desired decoration.
The most tangible results could come on the capital markets union, where leaders want one set of EU-wide rules instead of 27 different rule books to simplify cross-border investment at scale.
Firing the starting gun on eurobonds debate: The message from a host of European bigwigs this week, including former ECB chief Mario Draghi, International Energy Agency boss Fatih Birol and former Italian prime minister Enrico Letta — who presents his report on EU competitiveness to the leaders today — has been that public money must play a role. The debate on how to raise those public funds will only intensify over the coming months, diplomats warned.
Read more here.
UKRAINE
BREAKTHROUGH IN AMERICA? U.S. Congress could soon reach a deal to provide new defense aid to Ukraine, as part of a trio of bills pitched by Republican House Speaker Mike Johnson. That includes $60.8 billion for Ukraine, $26.4 billion for Israel and U.S. operations in the Middle East, and a further $8.1 billion for efforts to counter China and bolster U.S. partners in the Pacific region.
More from our U.S. colleagues here on how the plan to unlock the aid will work in practice.
GERMANY’S AIR DEFENSE ALLIANCE GROWS: The alliance started by Germany to organize air defense systems for Ukraine, and scooped by Playbook, got the backing of NATO Secretary-General Jens Stoltenberg on Wednesday.
“If allies face a choice between meeting NATO capability targets and providing more aid to Ukraine, my message is clear: Send more to Ukraine,” he said.
Countries joining: Dutch Prime Minister Mark Rutte, who is widely expected to succeed Stoltenberg later this year, said during the same press conference that the Netherlands, Denmark and the Czech Republic “will consider … in what ways we can [give] support to this German initiative.”
EUCO plea: Arriving at the summit of EU leaders on Wednesday evening, German Chancellor Olaf Scholz said the issue was front and center of talks on support for Kyiv. “Everyone must take a look at their inventories to see whether they can spare additional air defense systems, especially Patriot systems, because they are urgently needed,” Scholz said.
Looking at you, France, Spain, Italy and Greece: The Mediterranean countries, such big supporters of EU solidarity, have been lackluster when it comes to helping defend Ukraine. All of them, as well as Sweden, have a number of air defense batteries, such as Patriots or the Franco-Italian SAMP/T.
Side effect: A further ramification of the initiative that Germany’s government is sure to welcome is that after months, the public focus is shifting away from Scholz’s opposition to sending Taurus cruise missiles to Ukraine.
FIRST IN PLAYBOOK: The European Investment Bank will commit a further €560 million to Ukraine to help the war-torn country rebuild on the sidelines of the IMF-World Bank spring meetings in Washington. EIB president Nadia Calviño told POLITICO that the memorandum, to will be signed later today by Ukrainian President Denys Shmyhal, will allow for further collaboration on essential energy infrastructure, roads, railways, hospitals and civil protection initiatives. “Ukraine remains a crucial priority for the EIB,” she said.
MIDDLE EAST
IRAN SANCTIONS SHOWDOWN: Israel and Washington are ramping up pressure on the EU to take a tougher line on Iran after the country launched a wave of drones and missiles at Israel last weekend in retaliation for the bombing of its Damascus consulate.
What the EU has in mind: As Playbook first reported Tuesday, the EU is planning to sanction Iran’s missile and drone production — a largely symbolic act given Iran’s adeptness at circumventing sanctions.
More on the cards: Western allies are worried about intelligence reports that Iran is supplying Russia with ballistic missiles and that both countries could establish a partnership on missile technology — hence the discussions on wider-reaching sanctions.
Oil sanctions: Washington is floating new restrictions on Iranian oil — despite the high cost of targeting that industry. “Clearly, Iran is continuing to export some oil,” U.S. Treasury Secretary Janet Yellen said Wednesday. “That remains in focus as a possible area that we could address.”
Little appetite for oil sanctions: Taking aim at Iran’s crude could prove complex, Gabriel Gavin and Barbara Moens report. EU diplomats said they were currently not considering oil sanctions.
Sanctioning Iran Air: Instead, the EU and G7 allies are now looking at sanctioning Iran’s flagship carrier IranAir, according to diplomats, which would cripple the airline once it no longer gets spare parts for its Boeing and Airbus jets.
NOW HEAR THIS: On POLITICO’s Power Play, host Anne McElvoy talks to Kim Darroch, the former British ambassador to Washington and former United Kingdom national security adviser, about scenarios facing United States President Joe Biden around the Israel-Iran conflict, and what Donald Trump might do if he returns to office.
EU JOBS
TOP JOBS — COURT DEALS BLOW TO COSTA INVESTIGATION: Lisbon’s Court of Appeal on Wednesday upheld the decision to lift judicial control measures against the primary suspects in the influence-peddling probe that precipitated the downfall of former Portuguese Prime Minister Antonio Costa.
Costa another step closer to Brussels? The rejection of appeal smacked the investigation — and led Portugal’s president to suggest Costa, a socialist backed in the past by Spain and Germany, could get a top EU job after all. “I have the feeling that it is becoming more likely that there will be a Portuguese person at the European Council, next autumn, in Brussels,” Marcelo Rebelo de Sousa told journalists.
BALTIC AMBOS ON THE MOVE: According to Lithuanian press reports, Nerijus Aleksiejūnas — a former Antici who is familiar with Brussels and currently serving as ambassador in France — has been proposed as Lithuania’s representative to the EU.
Lithuania is set to hold the Council presidency in 2027, and the strict term limits of Lithuania’s diplomatic service do not allow the current EU ambassador, Arnoldas Pranckevičius, to remain in his position until then. Speculations abound that Pranckevičius may replace Aleksiejūnas in Paris; the final decision rests with Lithuanian President Gitanas Nausėda.
Another Baltic ambassador soon departing Brussels is Aivo Orav, Estonia’s EU ambassador, who has been officially nominated as EU head of office to Kosovo. Orav previously served as EU ambassador to Montenegro and North Macedonia (where he negotiated the Pržino agreement that paved the way to finalize the name deal with Greece). It remains unclear who will succeed him.
**Berlin Playbook, the newest addition to POLITICO’s Playbook family, launched! Täglich informieren wir Sie darüber, was am vor Ihnen liegenden Arbeitstag wirklich zählt. Die aktuellsten Ereignisse aus Kanzleramt, Bundestag und den politischen Zentren der Welt. Mit nur einem Klick anmelden.**
IN OTHER NEWS
CROATIA’S ELECTION: Croatian President Zoran Milanović, who gained international attention for his criticism of the EU and NATO, emerged as a significant force in the country’s general election on Wednesday and is now poised to play a key role in shaping the next government.
Though lacking an outright majority, his party’s second-place spot guarantees a consequential voice in remolding Zagreb’s political direction. Read more here.
COMMISSION WARNS SLOVAKIA: The European Commission has warned Slovakia’s government that it might lose remaining money — some €3.5 billion — from the recovery fund over its decision to abolish the special prosecutor’s office that dealt with serious corruption cases.
Corrupted control: “We note that the Commission services consider that both elements (the dissolution of the office of the special prosecutor’s office and changes to Slovak criminal law, in particular shortened sentences and limitation periods) have an impact on Slovakia’s system of internal control,” reads the letter from DG ECFIN, dated March 28 and seen by Slovak newspaper Denník N.
What’s next: Slovakia has until April 19 to respond.
MACRON IS ALL TALK, NO ACTION ON UKRAINE, SAYS GLUCKSMANN: French center-left lead candidate Raphaël Glucksmann slammed insufficient European support for Ukraine, arguing that leaders such as French President Emmanuel Macron were “taking pleasure in speaking, but showing weakness in actions.”
“We still haven’t put our production lines in order, we still haven’t done what needed to be done,” Glucksmann told POLITICO at an event in Paris on Wednesday.
As Macron veers right … Macron’s shift to the right, both on economic policy and social topics like migration, has opened up an opportunity for Glucksmann. His social democratic Place Publique party seeks to attract voters disaffected by Macron and by the left-wing, Euroskeptic France Unbowed movement of Jean-Luc Mélenchon.
… voters flock to Glucksmann: A poll released Wednesday by Harris Interactive showed Glucksmann receiving 14 percent of the projected vote — just 2 percentage points behind the pro-Macron list, with far-right candidate Jordan Bardella still leading the race with 30 percent.
NATCON CONFAB: The hard-right National Conservatism conference did take place despite three Brussels leaders attempting to shut it down — the resulting outcry has given Euroskeptic populists even greater ammunition. POLITICO’s Eddy Wax has the wrap. Plus, how Claudia Chiappa survived the “far-right buffet from hell.”
LAGARDE DOUBLES DOWN ON RUSSIAN ASSETS WARNING: “Moving from freezing the assets to confiscating the assets, disposing of them, is something that needs to be looked at very carefully,” Lagarde said at an event Wednesday, because it would “start breaking the international legal order that you want to protect, that you would want Russia and all countries around the world to respect.”
NESTLÉ UNDER FIRE, AGAIN, OVER BABY FORMULA: Swiss food conglomerate Nestlé is being assailed yet again after another media investigation questioned the health of its infant formula sold in Asia, Africa and Latin America. More in this report by Swiss outlet Public Eye.