Governing majority overrides opposition for asylum claims suspension
Parliament voted on Friday to suspend asylum applications for three months from individuals entering the country illegally by sea from North Africa, amid heightened political polarization.
Diplomatic sources: There will be an official response to the UN regarding Libya’s note verbale
The note verbale of the Government of National Unity of Libya to the UN on June 20, regarding Greece’s announcement on exploration blocks south of Crete, does not contribute any new elements to the arguments already expressed, diplomatic sources noted. They emphasized that an official response will be submitted to the UN on behalf of Greece.
Heron and Nrg merge into Greece’s third energy force
The GEK Terna and Motor Oil groups announced their strategic repositioning in the electricity market through a joint venture on Thursday, accelerating the pace of restructuring and concentration in the sector.
Primary surplus at record levels once again this year
The primary surplus of the state budget has exceeded the initial target by four times, reinforcing the estimates of the government’s economic staff that this year the fiscal performance of the economy will also move at record levels.
https://www.amna.gr/en/article/918415/Primary-surplus-at-record-levels-once-again-this-year
ATHEX: Small losses bring end to rising course
The Greek bourse ended its eight-session winning streak on Friday, though the losses for its benchmark were fairly small and declining stocks narrowly outnumbered rising ones. The market expects that the last stretch to the 2,000-point mark for the benchmark will be hard-fought, but the target should be met by the end of the month, when banks issue their first-half financial results.
https://www.ekathimerini.com/economy/1275117/athex-small-losses-bring-end-to-rising-course
SUNDAY PAPERS
KATHIMERINI: The flirt between Erdogan – Haftar and Athens’ concerns
TO VIMA: The “harsh stance” dominates in the government while Crete is being tested
REAL NEWS: Navy blockade in Tobruk
PROTO THEMA: Putting a stop to migrants’ boats with 5 measures
MONDAY PAPERS:
TA NEA: The secret dealings between Turkey and Libya: They are making deals, provoking and sending a message
EFIMERIDA TON SYNTAKTON: The OPEKEPE scandal diverts attention from farmers’ true problems
KONTRA NEWS: Scenery of extreme polarization and snap elections looming in
DIMOKRATIA: The time has come for Greece to extend its territorial sea to 12 nautical miles
NAFTEMPORIKI: “Heatwave” of deals for ATHEX-listed companies
DRIVING THE DAY: TRUMP’S NEW THREAT
FEAR AND DÉJÀ VU AS TRUMP ISSUES NEW TARIFF THREAT: Once more unto the breach. A bit more than three months after Trump declared “Liberation Day,” the EU is again staring at the prospect of sky-high tariffs unless it somehow meets his demands by Aug. 1.
Un pour tous, tous pour Ursula: The threat of 30 percent tariffs, delivered in the form of a letter posted on Truth Social on Saturday, triggered a flurry of diplomacy over the weekend: European Commission President Ursula von der Leyen conferred with the leaders of France and Germany (obtaining supportive social media posts from Emmanuel Macron, but not from Friedrich Merz), and EU diplomats sacrificed their Sunday to try to get a grip on the state of play before trade ministers gather in Brussels today.
Snafu: We’ll get to the options. But first: What went wrong?
Caught off guard: The EU’s negotiators — Trade Commissioner Maroš Šefčovič, DG Trade Director Sabine Weyand and von der Leyen’s chief of staff Bjoern Seibert — had been in talks for months with Team Trump, and seemed to think as recently as just a few days ago that an agreement was within reach. “I am a bit upset because we are now in a corridor for getting an agreement,” Bernd Lange, head of the Parliament’s trade committee, told Morning Trade’s Camille Gijs.
No deal: But Trump wasn’t interested in whatever deal U.S. trade negotiators Howard Lutnick and Jamieson Greer put before him. Nor was he willing to give the EU anything similar to what the U.K. got.
Time to change tactics? Ex-Commissioner Thierry Breton suggested in Playbook last week that the EU should change tack and try to send more senior political figures — namely, von der Leyen herself — into the talks to woo Trump. But that doesn’t seem to be in the cards, at least for now, as the Commission signaled to ambassadors on Sunday that a technical team, possibly including Šefčovič, would travel to Washington “in the short term,” according to two EU diplomats.
Indeed, a major theme of statements from leaders on Sunday was voicing support for the Commission and von der Leyen, amid growing concerns that the EU’s approach may need adjusting.
Europe, reloaded: As trade ministers gather in Brussels today, the Commission is expected to present a second package of retaliatory tariffs, Camille scooped for Pro subscribers on Sunday.
Whittling the list: While the proposal initially aimed to hit U.S. exports worth €100 billion, the list has been watered down after pushback from EU capitals and is now expected to target exports worth €72 billion, two diplomats told Camille (in addition to the €20 billion in retaliatory tariffs on steel and aluminum which have been delayed).
Key detail: If today plays out like a trade ministerial in April, the Commission may wait until after the meeting to present its detailed proposal. In any case the Commission will need a vote from EU capitals to approve implementing tariffs, which would happen at a later stage, diplomats said.
At the same time, Trump’s letter seems to have hardened the EU’s resolve to reach out to other countries facing similar tariffs, like Canada, after Brussels initially rejected entering into formal coordination.
Indeed, just in time: The EU and Indonesia reached an agreement Sunday to move ahead on a trade deal, marking a win for the EU’s strategy of striking deals with countries that are not the United States.
EU-US TRADE, CONT’D
MACRON URGES EU TO DEPLOY TRADE BAZOOKA: EU leaders now need to calibrate their response to Trump’s tariffs, with two clear camps: those who want to get tough, and those pleading caution. The French president was the first to raise the specter of activating the EU’s Anti-Coercion Instrument (ACI) — aka trade bazooka — in response to Trump’s threats. Spain is also among the countries pushing for a more forceful response.
What he said: “With European unity, it is more than ever up to the Commission to assert the Union’s determination to resolutely defend European interests,” Macron wrote on X. “In particular, this implies speeding up the preparation of credible countermeasures, by mobilising all the instruments at its disposal, including anti-coercion, if no agreement is reached by August 1st.”
Hold your horses, Manu: “The ACI is created for extraordinary situations — we are not there yet,” von der Leyen told reporters on Sunday.
Hitting Germany: Meanwhile, Friedrich Merz said Sunday that Trump’s 30 percent tariff would strike the German export industry “to the core.”
Keep trying: Asked whether he shared Macron’s view of the need to move faster on the EU’s response, the chancellor said: “Yes, but not before Aug 1. I discussed this intensively with [Macron and von der Leyen] over the weekend and with the U.S. president on Friday. We want to use this time, these two and a half weeks, until Aug. 1 to find a solution — and I am working hard to achieve this.”
Welcome to Camp Hope! Some leaders still seem to hold out hope for a U.K.-style deal. Italian Prime Minister Giorgia Meloni posted on X Sunday that an “internal trade war within the West would make us all weaker,” while Austrian Chancellor Christian Stocker said in a statement that “a trade war must be avoided at all costs.” Both leaders voiced support for the Commission, but put the emphasis on avoiding a war.
What does he want? A big question for ministers is whether they’re willing to contemplate further concessions to Trump. The problem is that he hasn’t spelled out specific requests, only that the U.S. must obtain “complete, open Market Access” to Europe.
What more can we do? Indeed, the sense among many ambassadors on Sunday, per two diplomats, was that the EU has already offered plenty in the way of concessions, and that going further — by gutting EU digital rules, for instance — would sacrifice Europe’s sovereignty and expose von der Leyen to too much internal blowback.
Too big to accept: Another point of consensus is that 30 percent tariffs would be so damaging to big European economies (Italy and Germany, among others) that the EU has no choice but to hit back if they go into effect.
The Canada route: For a scenario that seems all too likely, look no further than the let’s-keep-talking-despite-your-letter position that Canadian Prime Minister Mark Carney finds himself in with Trump. Our ace Ottawa colleagues have more in Canada Playbook.
ALSO ON THE AGENDA: Today’s FAC is not only about the U.S. trade relations, but also will touch upon the China-EU summit later this month and other ongoing trade negotiations. Last week, Beijing-Brussels vibes were not great, with von der Leyen noting how little China has done to acknowledge European irritants. And China went ahead and retaliated against EU medical device makers.
FOREIGN AFFAIRS
NEW OBSTACLE EMERGES ON 18TH SANCTIONS PACKAGE: Slovakian Prime Minister Robert Fico raised hopes that he may finally back a new package of EU sanctions against Russia as early as Tuesday, when EU foreign ministers gather in Brussels, if the EU can cushion the effect of a proposed ban on Russian gas, Karl Mathiesen reported.
Getting there: “We want to resolve this by Tuesday because tensions are rising on all sides,” Fico added, according to Bloomberg.
Not so fast: But a new obstacle has since emerged: Malta. During a Coreper meeting on Sunday, it raised objections to the Commission’s proposal of setting a price cap for Russian energy exports of 15 percent of the market price (calculated using a three-month average), according to an EU diplomat.
ISRAELI AND PALESTINIAN MINISTERS IN SAME ROOM: Israeli and Palestinian foreign ministers will attend an EU-Southern Neighborhood ministerial today, per two diplomats, confirming a Euronews report. Mediterranean Commissioner Dubravka Šuica will be there and will hold meetings with the Palestinian, Egyptian and Moroccan ministers of foreign affairs at the meeting, per her office.
New Med pact: “The fact that all partners are represented reflects the importance of this new phase in our relations,” Šuica said in a written message to Playbook, adding that the EU was working toward a New Pact for the Mediterranean that could involve Gulf countries.
KALLAS DEAL ON THE ROCKS? European Commission officials touted a diplomatic breakthrough last week when foreign affairs chief Kaja Kallas announced an agreement with Israel to end the blockade on humanitarian supplies in Gaza and protect civilians seeking relief. But, even with Brussels expecting to see results within the “coming days,” reports of more deadly violence around Gaza’s aid centers has dampened the mood, Gabriel Gavin writes in to report.
Death toll: The Associated Press and Reuters, citing Gazan health officials, reported that dozens of Palestinians had been killed while trying to reach a food distribution point on Saturday after Israeli forces opened fire. The U.N. said as many as 800 people have died at aid centers in the past six weeks, with access to humanitarian organizations routinely blocked.
Doubling down: Commission officials, who had already been called in over the weekend to deal with Trump’s tariff announcement, issued a statement defending the deal. In comments to POLITICO, spokesperson Anitta Hipper condemned the bloodshed but insisted the deal brokered by Kallas “is a vital step forward” despite the fact “hostilities continue on the ground.” Read the full story from Gabriel.
Tabling action: Foreign ministers from across the bloc will meet Tuesday to discuss potentially scaling back relations with Israel. A leaked document, obtained by POLITICO last week, reveals Kallas’ department is advising that while tearing up the EU-Israel Association Agreement over human rights breaches would require full unanimity, targeted trade measures could be introduced by majority vote.
IN OTHER NEWS
EVERYTHING YOU NEED TO KNOW ABOUT THE BUDGET: As Europe teeters on the edge of a full-blown trade war with the U.S., the EU’s 27 commissioners will gather on Wednesday to settle one of the thorniest issues in Brussels: the bloc’s own finances. Commissioners are up in arms against von der Leyen’s attempts to trash their pet programs, governments are filling her inbox with angry messages ― and farmers are ready to take to the streets if their demands aren’t met. Here’s your (non-geek) guide to the budget negotiations, brought to you by Gregorio Sorgi.
PISTORIUS IN WASHINGTON: Germany’s Defense Minister Boris Pistorius is due to meet U.S. Secretary of Defense Hegseth in Washington today. Pistorius told the FT they’ll discuss a “road map” for American security support for Europe, and he’ll seek to convince Washington to let Germany buy two U.S. Patriot systems to send to Ukraine. “We only have six left in Germany,” Pistorius said, and “definitely can’t give any more” of them away.
Taurus disappointment: Pistorius also said Germany wouldn’t send Ukraine its long-range Taurus missiles.
MEANWHILE, ZELENSKYY VOWS TO BRING WAR TO RUSSIA: Ukrainian President Volodymyr Zelenskyy announced Kyiv would renew its efforts to strike deep behind enemy lines. Ukraine will “do everything possible to bring the war onto Russian territory. We are preparing our new long-range strikes,” Zelenskyy said.
LIBYA EXPLAINER: Italy and Greece are sounding the alarm over the severe threats to European security brewing in Libya. Jacopo Barigazzi, Nektaria Stamouli and Giorgio Leali analyze what’s going on here.
SAFE FOR UKRAINE: The Commission on Sunday urged member countries to use the €150 billion loans-for-weapons offer of the recently agreed Security Action for Europe (SAFE) regulation to help Kyiv. “We strongly invite you to consider how to involve Ukraine in your plans,” wrote Defense Commissioner Andrius Kubilius and Economy Commissioner Valdis Dombrovskis in a joint letter.
Macron promises billions more for defense: France will boost defense spending to €64 billion in 2027 instead of 2030 as initially planned, he announced Sunday. “We are living a pivotal moment,” Macron said in a speech to the armed forces on the eve of today’s national Bastille Day holiday.