Government in dire straits over farm subsidies
Prime Minister Kyriakos Mitsotakis faces two challenges regarding evidence that officials colluded to award farm subsidies to undeserving recipients. He must move swiftly and forcefully to punish those responsible and return the subsidies to the European Union without spreading the cost among all taxpayers, as previous governments had done when faced with EU fines. And he must tread carefully in dealing with the most prominent conservative politician under a cloud, former minister Makis Voridis.
https://www.ekathimerini.com/politics/1273917/government-in-dire-straits-over-farm-subsidies
Androulakis on OPEKEPE issue: PASOK to propose preliminary investigation committee
The leader of PASOK – Movement for Change Nikos Androulakis, in an interview with Mega Live News referring to the OPEKEPE issue, said that “ this network was not set up by itself. It had political cover and central guidance. No one can know which agricultural plots or pastures are vacant to declare them unless the system itself indicates it to them.” Regarding PASOK’s parliamentary initiatives, Androulakis said that “the data will be evaluated, and PASOK will submit a proposal for a preliminary investigation committee for the political persons involved. When we are ready, we will clearly announce exactly what our initiatives will be.”
Government announces 8 billion euros in new European funds
European programmes aimed at reducing energy costs, protecting the environment, assisting vulnerable households and micro-enterprises, addressing the housing crisis, and enhancing transport were announced on Monday afternoon during an inter-ministerial press conference. These programmes are totalling 8 billion euros, to be implemented between 2026 and 2032, as part of three new European funds: the Social Climate Fund, the Modernisation Fund, and the Island Resilience Fund.
https://www.amna.gr/en/article/915346/Government-announces-8-billion-euros-in-new-European-funds
Dendias says Greece to start discussing acquisition of new submarines
Greece will begin discussing a plan to acquire next-generation submarines to replace the Hellenic Navy’s aging vessels, Defense Minister Nikos Dendias said on Monday.
ATHEX: Bourse posts gains of 27% in Jan-June
The Greek stock market has just completed eight consecutive months of growth – a first for this century at least – with the first half of the year offering the benchmark of Athinon Avenue growth of 27.1%. The banks index fared even better, rising just over 50% since the start of the year. All this was despite the moderate losses a slight majority of stocks suffered on Monday, though mid-caps enjoyed an increase.
https://www.ekathimerini.com/economy/1273927/athex-bourse-posts-gains-of-27-in-jan-june
KATHIMERINI: OPEKEPE scandal: the incredible tricks that secured subsidies
TA NEA: OPEKEPE scandal: some are going to jail
EFIMERIDA TON SYNTAKTON: OPEKEPE scandal: Proof that the government is guilty
RIZOSPASTIS: EU CAP makes the ground fertile for corruption
KONTRA NEWS: More resignations ante portas due to the OPEKEPE scandal
DIMOKRATIA: The PM is a mere actor
NAFTEMPORIKI: ATHEX capitalization jumps 23 bln
DRIVING THE DAY: CHANGING OF THE COUNCIL GUARD
DANES ARE IN: The sun is rising over the unassuming office block, just down from Place du Luxembourg, that houses Denmark’s permanent representation to the EU. For the rest of the year, the drab building will be the center of Brussels’ legislative process as the country takes over the influential rotating presidency of the Council, giving it control of the agenda and the responsibility to strike compromises between the European Parliament, capitals and the Commission.
Charting a course: In an exclusive interview with Playbook, Marie Bjerre, Denmark’s European affairs minister, said Copenhagen’s time in the hot seat would be a “huge task” and “a great responsibility,” promising “we will be very ambitious and use this presidency to set a clear direction for Europe.”
“A strong Europe in a changing world” is the presidency’s slogan, and Bjerre warns Brussels won’t be able to navigate troubled waters without “upgrading our ability to act” on defense, security and foreign policy.
Tough words: “We have great economic power. We are the world’s greatest trade bloc. But we do not have military power and political power when we’re talking about these international agendas — our voice is not big,” Bjerre said. “This is something we first and foremost have to focus on, otherwise our opinions on what is happening in the Middle East or anywhere else just doesn’t matter.”
But tanks and planes cost money … so “we have to do more on competitiveness — in order to strengthen our economy you have to be more attractive for investment,” Bjerre said. Meanwhile, the “omnibus” proposals designed to cut EU red tape are “of essence for us to deliver on because we need to have real burden reductions for our companies.”
New arrivals: One key area of potential tension is migration, where Copenhagen has long wanted extra powers to limit the number of people entering the EU and to remove those entering illegally. “This is important for us,” said Bjerre, “it’s important for the stability of Europe. It’s important for the security of Europe — so this is something we really aim to deliver progress on.” That, she said, includes pushing through proposals defining “safe third countries” so that Europe can “send irregular migrants back,” while also securing a legal basis for receiving centers and return hubs.
Euro-files: From driving the negotiations on the EU’s long-term budget to reforming pharmaceutical company rules, regulating genomic engineering and a growing brouhaha over climate targets, Danish diplomats will have their work cut out for them. POLITICO has this rundown of the key files in play and an essential primer for the next six months.
Sanx for the memories: Another of the first thorny issues is the passage of the 18th sanctions package targeting Russia, which Slovakia’s Robert Fico is holding ransom over fears it could cost the country gas transit profits. Now, a senior diplomat told POLITICO, the Commission will fly a crack team of bureaucrats to Bratislava on Thursday to try to hash out a deal. Watch for white smoke in the coming days …
Down to the wire: There’s also pressure to get all EU countries to sign up to a deal to avoid a trade war with the U.S. Without an agreement, Donald Trump’s tariffs could kick in on July 9. Trade Commissioner Maroš Šefčovič will travel to the U.S. capital on Wednesday and Thursday and debrief the EU’s governments on Friday.
Reading the runes: The FT reports this morning that Trump’s top trade officials are scaling back their ambitions for comprehensive deals with countries hit by the president’s tariffs and are targeting narrower agreements instead. Meanwhile, Bloomberg writes that the EU is willing to accept Trump’s 10 percent universal tariff on many of its exports — but wants exemptions for pharmaceuticals, alcohol, semiconductors and commercial aircraft. (That potential outcome was very much on the mind of German Chancellor Friedrich Merz at last week’s EU leaders’ summit.)
POLISH EXIT INTERVIEW
DO WIDZENIA: Playbook sat down with Polish Ambassador Agnieszka Bartol to get her final reflections on the past six months of Warsaw’s presidency, which included highlights such as securing a major defense funding overhaul and a string of dumpling- and vodka-fueled public events.
Day in the life: “I was usually leaving home at 7:15 a.m., coming back around 10 p.m., and then texting with my staff till late,” Bartol said (adding that she started her days reading this very newsletter). “Our average sleep was probably around five hours. We were working on Sundays — usually meeting around 1 and finishing around 8; all the briefings, the preparation for the week. I can guarantee you that each of us has seen each other more than their families.”
What she’s most proud of: “If there is one thing that was crucial for us, it’s to change gear and make the EU and all member states realize that what counts now is to make life easier, more secure, and safer. From the beginning, we knew our priority had to be ‘Security, Europe!’ because the situation demanded it.” Bartol also lauded the simplification agenda Warsaw kicked off: “I think for the first time we have a clear message coming from leaders and a very strong determination in both the Commission and Council to go for it.”
Biggest regrets: The Poles had hoped to push through the 18th package of Russia sanctions. But, thanks to Slovakia’s populist Prime Minister Robert Fico, who is pushing for financial compensation for lost Russian gas profits, they didn’t get there. “More would have been great,” Bartol lamented.
Top tip for the Danes: “Don’t surprise people. When you know there are sensitivities for member states, warn them in advance of the direction you are taking,” Bartol said. “Everything has to be based on trust, independently of the politics. You need to be able to trust your partner and the partners need to trust you, so you may have difficult messages to pass, but you cannot take anybody by surprise. Coreper is a very peculiar and particular place.”
INSTA-HANDOVER: Coreper I spokespeople Stine Kromann Dragsted from Denmark and Kasia Novak of Poland posted a Gen Z-friendly video passing the baton in the press rooms of Brussels.
MONEY FOR FREE (MFF)
DEADLINES (MISSED): Today’s the day — in theory — that the European Commission should be submitting its all-important budget. But officials are set to miss their self-imposed deadline for the Multiannual Financial Framework (MFF), which governs the bloc’s expenditure and allocates funds for everything from farmers to foreign aid.
Fault lines (opening up): As in previous negotiations, hawkish Northern European countries such as Sweden and the Netherlands want a smaller budget, whereas their southern counterparts want more. The Baltics support more defense spending, the French are keen on agricultural subsidies and the Poles are big on regional payments … You get the gist — each country has its own specific priorities.
Cash cows: Another showdown taking shape is whether to ringfence spending on regional cohesion and agriculture to protect communities, pushed by Italian Cohesion and Reforms Commissioner Raffaele Fitto and farming czar Christophe Hansen.
But Commission President Ursula von der Leyen is pulling in the other direction, my colleague Gregorio Sorgi writes in to report, with a bid to lump both funds into a national plan that would be linked to capitals making key reforms. That’s led to a dispute over money allocated to local areas and to farmers, which account for two-thirds of the current budget.
State of play: The Commission’s proposal is expected to land July 16, and governments will give their initial responses before the summer hiatus.
ERASMUS SHAKEUP: As part of the MFF process, the EU’s ultra-popular Erasmus+ program, supporting students to study at universities in different countries across the continent, is up for restructuring, potentially losing some of its funding to the new (and largely mysterious) competitiveness fund, my colleague Francesca Micheletti reports.
Just a little tweak … Officials and parliamentarians told POLITICO that money allocated for alliances between universities could be reallocated. Per one email sent by stakeholders and detailed in our competition newsletter Fair Play, the worry is that once in the competitiveness fund money pot, vocational institutions, NGOs and sports organizations for example, will face tough competition from rivals that offer projects better tailored to the “competitiveness” challenge.
Left unhappy: “What is being negotiated here in the background amounts to a gradual dismantling of the independent budgets for youth and solidarity,” Sabrina Repp, spokesperson for the committee on culture and education within the German S&D delegation in the European Parliament, said in a statement.
Academics are also worried. “There are reasons to be extremely cautious about this proposal,” wrote Jan Palmowski, secretary-general of the Guild of European Research-Intensive Universities.
KEEP IT CIVIL: Meanwhile, interest groups and NGOs are already pressing for the funding allocation to focus on their core issues. The Civil Liberties Union for Europe will this week publish a report — previewed by Playbook — that warns democracy will be undermined if the NGO-supporting Citizens, Equality, Rights and Values Program is defunded.
Give to charity: The €1.55 billion fund supports over 5,000 civil society groups and accounts for 0.13 percent of the budget. “The opponents of strong, open societies act with rapidity and flexibility — civil society needs to be able to do the same while planning for the long-term,” the paper argues, calling for a 0.5 percent spending target.
REGULATION RUMBLES
SEEING RED OVER GREEN: The Danish presidency also inherits the Green Claims Directive, designed to ensure those who say their products are environmentally friendly are telling the truth. EU countries, which support the proposal, will have to decide whether they can come back to the negotiating table after the Commission first unexpectedly announced it planned to withdraw it (before appearing to backtrack). Two diplomats told POLITICO the outgoing Polish presidency told a Coreper meeting last week that it would talk bilaterally with concerned countries and the Danes over how to handle the hot potato.
Ask the expert: Sustainability reporter Marianne Gros has had the inside scoop on the growing row for weeks, as it became a huge political embarrassment for von der Leyen. “For the last few days it seems like the dust has settled, and now it’s up to EU countries to decide if they want to resume negotiations or not. But it’s clear the story has had an impact on the political balance in Brussels because the groups that got von der Leyen elected have had enough of being constantly sidelined,” Marianne said. “We’ve heard at Coreper there was some frustration against the Commission, which denies there was some kind of issue with what they announced and what they actually meant.”
Industry anger: Meanwhile, a coalition of more than 150 firms, including Nokia, EDF, Allianz and IKEA’s parent company Ingka, signed an open letter out this morning that calls on the Commission not to gut sustainability rules. “Responsible businesses and investors need a clear and stable policy environment to contribute to the EU’s goals for a competitive and sustainable economy,” it reads.
APPLE BITES BACK: U.S. tech giant Apple will delay the rollout of a number of new features for customers in EU countries because of regulations apparently limiting their ability to process user data like geolocations, the Wall Street Journal reports. Apple railed against the bloc’s flagship Digital Markets Act (DMA), which it says creates hurdles for companies operating in the space.
Don’t Make us Angry: Last week, the ubiquitous iPhone manufacturer was forced to shake up its App Store to avoid incurring more EU fines, having already been handed a €500 million bill under the DMA. The fees the firm charges developers will be rejigged under the push.
FEELING HOT, HOT, HOT
KILLER HEAT: The heat wave currently smashing southern Europe — with temperatures reaching 46 degrees in parts of Spain — could cause more than 4,500 excess deaths between June 30 and July 3, according to an expert analysis shared with POLITICO. “The worst days will likely be [Tuesday] and Wednesday,” said Pierre Masselot, an environmental statistician at the London School of Hygiene and Tropical Medicine. The countries likely to experience the highest excess deaths are Italy, Croatia, Slovenia, and Luxembourg, he said.
The new abnormal: Lethal heat waves are Europe’s new reality thanks to fossil fuel-induced climate change, the World Health Organization says. “It’s no longer a question of if we will have a heat wave, but how many are we going to experience this year and how long will they last,” said Marisol Yglesias Gonzales, technical officer for climate change and health at the WHO in Bonn. Read Rory O’Neill’s story on the worrying consequences.
VIVE LE VENTILATION: Facing down a rapidly warming planet, Marine Le Pen has a simple answer — turn up the AC! In a statement, the French National Rally leader announced one of her flagship policies would be “a major air conditioning infrastructure plan,” accusing energy efficiency champions of denying people cooling.
Brace yourself: The veteran green-skeptic, who has called for the dismantling of wind farms, said the move was necessary because “heat waves will unfortunately become regular.” My colleague Giorgio Leali has the story.
SCIENTIFIC BREAKOUT: European universities are luring U.S. researchers who are facing a climate-skeptic, vaccine-questioning administration that is threatening to strip funding from scientific projects. Victor Goury-Laffont in our Paris bureau has a dispatch from Aix-Marseille University, which looks poised to poach eight American scholars through its “Safe Place for Science” program.
NOT-SO-FROZEN-NORTH: Spare a thought for the diplomats celebrating Canada Day at the residence of the country’s ambassador in Brussels this evening from 6 p.m. Organizers have been forced to downgrade the dress code amid sweltering weather, according to an invite seen by Playbook, telling attendees to turn up in smart casual instead of suits. Time to dig out the Maple Leaf shorts …
IN OTHER NEWS
THE STRAIN IN SPAIN: Alberto Núñez Feijóo might not be a big name in Brussels, but the leader of Spain’s Conservative People’s Party (PP) could be poised to oust crisis-hit Socialist Prime Minister Pedro Sánchez and take over his country’s top job. Speculation is growing that the government could call a snap election amid damaging corruption investigations and the arrest of Sánchez’s former aide. Meanwhile, Feijóo is expected to be crowned by his party as heir apparent this weekend. Guy Hedgecoe has a profile of the PP leader, and previews what his reign would mean for Brussels.
GREECE’S NEW MIGRATION HARDLINER: EU Commissioner for Migration Magnus Brunner is in Greece today, where he will appear alongside newly appointed Migration Minister Thanos Plevris at a conference in Athens, Nektaria Stamouli reports. A hardliner, Plevris has spoken of the need to make asylum seekers’ lives “hell” and claimed that “protecting the borders means dead people.” Greece has also recently deployed two warships to patrol international waters off Libya to avert migration flows.
VISA BAN: The U.S. government revoked the visas of U.K.-based punk duo Bob Vylan for a transatlantic tour after the pair used an appearance at Glastonbury festival to call for “death to the IDF.” More from Cheyanne M. Daniels.
TOP READ: Putin is invading more than Ukraine — last year, he invaded Romania with tweets, argue former U.S. Ambassadors to Romania Mark Gitenstein, Adrian Zuckerman and Jim Rosapepe in this op-ed for POLITICO.