Tensions rise over Great Sea Interconnector project
On Sunday, a new dispute emerged over the long-delayed GSI project, intended to link the electrical grids of Greece, Cyprus, and potentially Israel.
Foreign Ministry: Greeks who participated in the “Flotilla” will return to Greece on Monday on a special flight
The 27 Greek citizens who participated in the “Global Sumud Flotilla” were visited at the detention center where they are being held by a delegation from the Embassy of Greece in Tel Aviv, led by the Ambassador of Greece to Israel. The Greek citizens will return to Greece tomorrow on a special flight.
Opinion polls bear bad news for all parties
The early autumn opinion polls show more of the same: deep suspicion of the government and no confidence in the opposition, which appears hopelessly fragmented. In other words, an impasse, which may manifest itself in no viable government after what shapes up to be at least two, if not more, successive elections in the spring of 2027.
https://www.ekathimerini.com/politics/1282873/opinion-polls-bear-bad-news-for-all-parties
Electricity prices return to pre-crisis levels
Retail and wholesale electricity prices have returned to pre-crisis levels, following the large increases that occurred in previous years due to the international energy crisis, despite the fact that the price of natural gas and carbon dioxide (CO2) emission rights is currently significantly higher than in the first half of 2021.
https://www.amna.gr/en/article/938149/Electricity-prices-return-to-pre-crisis-levels
ATHEX: Benchmark advances to 6-week high
The Athens Exchange (ATHEX) general index closed at 2,076.71 points, a six-week high, adding 0.95% to Thursday’s 2,057.26 points. On a weekly basis it advanced 2.21%. The large-cap FTSE-25 index expanded 1.05%, ending at 5,255.17 points, though mid-caps contracted 0.15%.
https://www.ekathimerini.com/economy/1282819/athex-benchmark-advances-to-6-week-high
SUNDAY PAPERS
KATHIMERINI: Air traffic controllers: Air-battle for 220 mln euro
TO VIMA: Geopolitical game between Athens-Washington-Ankara regarding LNG supply
REAL NEWS: Personalized regulation of debts owed to social security funds
PROTO THEMA: Criminals are stealing VAT worth 1,5 billion from the state every year
MONDAY PAPERS:
TA NEA: 7 truths and myths regarding the 13-hour labor day
EFIMERIDA TON SYNTAKTON: Gaza: negotiations at gun-point
KONTRA NEWS: The President of Cyprus complains about extortions
DIMOKRATIA: National rupture between Greece and Cyprus due to the Kassos power cable project
NAFTEMPORIKI: The 4 assumptions of the state budget for 2026
DRIVING THE DAY: VDL FACES CRITICS — AGAIN
VDL ENTERS THE ARENA: For the second time in under three months, Ursula von der Leyen is back in the European Parliament to defend herself against no-confidence motions brought by opposition lawmakers who accuse her of a range of ills, from lacking transparency to fumbling a transatlantic trade deal.
When to reach for the popcorn: The action kicks off at 5 p.m. Brussels time with a speech by Patriots for Europe President Jordan Bardella, who is expected to take von der Leyen to task over her trade policy, namely the EU’s Mercosur trade deal and the EU-U.S. trade deal signed by the Commission in August.
The Gaza angle: This will be followed by a statement from the Left’s Manon Aubry, who in addition to criticizing trade policy will also accuse von der Leyen of “complicity in genocide” in Gaza, per comments she’s made in the run-up to today’s action.
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Madam president speaks: Von der Leyen will then have a chance to answer her critics before leaders of the main political groups in Parliament take the floor for their own speeches.
Optics: Von der Leyen is once again relying on strength in numbers, bringing her entire College of Commissioners into the hemicycle to stand behind her as she responds to the speeches by Bardella and the Left, which are each bringing separate censure motions.
NB: There will be no vote on the motions today. That happens Thursday and is expected to result in both motions being roundly rejected as the parties in von der Leyen’s coalition — the European People’s Party (EPP), Socialists and Democrats (S&D) and Renew Europe — plus the Greens, rally behind the German politician. (We crunched the numbers.)
Why it matters: While the motions have little chance of passing, they show a Commission president grappling with increasingly bold opposition not just on the far right and left, but also from members of her own centrist coalition.
Been there, done that: There’s no doubt von der Leyen is a more seasoned politician than she was when she first rose to power in Brussels in 2019. She’s ably parried accusers and critics alike during live TV debates as well as the first no-confidence motion in July, showing that the “Queen of Europe” can get down in the trenches with her critics and trade jab for jab.
But the problems she faces are … 1) These motions of no confidence are becoming almost routine as lawmakers realize how easy it is to rally 72 votes out of 720 total seats in their favor; and 2) that the criticism of von der Leyen is no longer coming just from fringe politicians who stand little chance of inflicting real political damage.
It’s coming from inside the house: Von der Leyen’s own allies in Parliament are now taking aim at the Commission chief, Max Griera and Gerardo Fortuna write in this must-read piece about why the criticism is likely to get louder.
One battle after another: Even if they won’t be backed by centrist parties, today’s no-confidence motions set the stage for disputes among von der Leyen’s coalition partners over key aspects of her legacy including on trade and the Commission’s first “simplification” package aimed at removing red tape, Max and Gerardo write.
In a sign of trouble to come, the two biggest political groups in Parliament signaled they are ready to topple the EU’s proposed long-term budget. “There are many other votes coming that will test her leadership,” said an EPP lawmaker who was granted anonymity to speak candidly about the party’s most senior figure in Brussels. And as Playbook reported last week, the S&D doesn’t exclude playing the censure card “if we see the need,” per a spokesperson.
THIERRY’S TAKE: Speaking to Playbook, former Commission Vice President Thierry Breton weighed in to argue that “we have a European Commission that is seriously weakened. It’s the first time in a very long time that the Commission has faced so many no confidence votes. You cannot say this is a case of bad luck.”
I come as a friend: Breton, who was originally slated to serve a second term in the Commission, left his post last year amid open disagreement with his boss von der Leyen. In his comments to Playbook he cast himself as a “friend of the Commission,” and stopped short of criticizing von der Leyen personally. But he lamented what he called “increasing weakness” in the Commission, which “opens a space for extremes” to “exploit.”
The problem, he said, is to do with leadership — and what he sees as a lack of it coming from the Berlaymont. “We are in a difficult, existential moment where the forces all around us are hostile to the European project, be it Vladimir Putin to the east or even, I regret having to say it, but also the United States.”
Zeroing in on EPP troubles: It was particularly concerning, he said, that the Commission didn’t have the full backing of its president’s own party — “which is meant to be its main supporter” — on the EU’s long-term budget.
CZECH ELECTION
BABIŠ WINS: The EU establishment was rattled over the weekend after right-wing populist Andrej Babiš and his ANO movement won the Czech parliamentary election by a large margin, threatening to add another anti-Ukraine voice to the European leaders’ table.
Cheers from the right, but Andrej says relax: Members of the far-right Patriots for Europe group — which includes Babiš’ ANO as well as Viktor Orbán’s Fidesz — loudly celebrated his victory. Babiš, meanwhile, was intent on reassuring those who fear he might become another constant opponent of the EU and NATO. He intends to be a “very reliable partner” for the EU, Babiš said after the election.
Not quite an Orbán: Before anyone cries “here comes another Orbán,” read this crucial primer by Ketrin Jochecová on what the Czech result means, starting with this key fact: Babiš failed to secure a majority in the lower house, so he’ll need to find parliamentary support — and could take months to form a government.
No quick fixes: The former PM, who left power in 2021 only to return four years later, said he wants to form a one-party government backed by other groups. But convincing them to come aboard won’t be easy.
What else: The hardcore anti-EU, anti-NATO parties in Czechia didn’t perform particularly well in the election, so Babiš won’t have to espouse their positions. “By not having to rely on them so much in forming a government, any resulting government might not be as radical in its stance,” Petr Kaniok, political scientist at Masaryk University in Brno, told Ketrin.
President Petr Pavel has considerable powers to determine the composition of the new government, including the prime minister. While it’s unlikely that Pavel will block Babiš from becoming PM, he is putting pressure on the election winner to resolve a conflict of interest arising from his agriculture empire, Agrofert. Babiš said during a debate he would resolve the conflict, without specifying how.
Indeed: Babiš is still awaiting a verdict from the Prague District Court over whether he defrauded the EU out of €2 million so that Agrofert could receive subsidies intended for medium-sized businesses. Unless new evidence is found, the court is obliged to take its lead from Prague’s High Court, which in June overturned an earlier ruling that had originally acquitted Babiš of wrongdoing, Ketrin writes.
The Ukraine question: Even so, it’s likely that as prime minister Babiš would diminish his country’s contributions to Ukraine, as he has campaigned on cutting aid for Kyiv as well as on opposing the country’s bid to join the EU.
The bottom line: Babiš may not be an Orbán copycat, but his stance on Ukraine’s EU prospects isn’t reassuring for Kyiv. Unlike Orbán’s other pal, Slovakian Prime Minister Robert Fico, Babiš is part of the same political group as Orbán and could follow his lead in the Council. This could push EU countries to make some quick decisions on big issues like EU membership rules and the Ukraine reconstruction loan at the next European Council meeting in October.
DEPT. OF HUMAN RESOURCES
WORKING HARD, OR HARDLY WORKING? A European Commission committee has asked DGs to fill out a survey on home and hybrid working to check on the results of a policy implemented in 2022, per a letter to the DGs and the survey itself, both of which were seen by POLITICO.
What it’s about: The Commission unveiled a new hybrid working policy in March 2022 which allowed staff to work remotely for 20 percent of their working time, and up to 60 percent upon agreement with their manager. They were also granted 10 days of work from abroad. The flexibility came in the wake of the Covid-19 pandemic and as the Commission was offloading a number of its buildings.
So far so good, except: In practice, this translates to about two days of mandatory office working time, according to a staffer directly aware of Commission working practices. This lags the broader return-to-office trend elsewhere and means Commission offices tend to be quite empty on Mondays, Wednesdays and Fridays.
This is now: The questions in the survey are rather benign: “Does your Directorate-General foresee a higher than 40% of physical presence per week?” But there is concern about the level of office presence among senior Commission officials — the letter itself appears to have been sent at the suggestion of the Secretary-General’s office. A Commission spokesperson contacted on Sunday declined to comment immediately.
IT’S RAINING AMBASSADORS, HALLELUJAH: Austria has a new Coreper II ambassador, with Gregor Schusterschitz filling the spot left empty by former envoy Thomas Oberreiter (who stepped down following a controversy over a sexually explicit blog). Schusterschitz is a Brussels veteran who previously held the role of Coreper I ambassador.
Sweden gets a new ambassador: Åsa Webber joins Sweden’s perm rep as Coreper I ambassador, bringing to bear her experience as former head of cabinet for Swedish ex-Home Affairs Commissioner Ylva Johansson and decades in the service of her foreign ministry. Anna Strandbacke-Muhler, the acting Coreper I ambassador, returns to her role as Mertens. Daniel Holmberg moves from being acting Mertens to being full-time Coreper I spokesperson. Webber will represent Sweden at the next Coreper I meeting on Wednesday.
And over at the Slovak perm rep: Deputy Permanent Representative Monika Sopkovičová and Ivan Kováč, representative of Slovakia to the Political and Security Committee, have taken up their roles, per an email from their office.
RUSSIAN WAR
EU COUNTRIES OPPOSE PUSH TO COMPENSATE AUSTRIAN BANK: Representatives from 13 EU countries took the floor during a Coreper meeting last week to oppose a push by Austria to have Brussels compensate Raiffeisen Bank for losses linked to a Russian asset seizure, per an EU diplomat.
Rewind: Austria wants Raiffeisen to be compensated after the bank saw €2.1 billion seized from its assets in Russia. The seizure followed a Russian court decision stating that Raiffeisen needed to compensate oligarch Oleg Deripaska, whose assets are frozen in Austria. The €2.1 billion was seized from Raiffeisen’s outstanding assets in Russia.
Don’t go there: But diplomats opposed a Commission proposal to compensate the bank, first reported by the Financial Times, arguing it could open a Pandora’s box, the diplomat said.
Other stumbling blocks include plans to restrict travel for Russian diplomats in the EU as well as the Commission’s proposal for a reconstruction loan to Ukraine using Russia’s frozen assets, the same diplomat said. Stay tuned.
STILL OPERATING IN THE SHADOWS: Meanwhile, Russia-linked vessels are continuing to leak oil off Europe’s shores, despite Western sanctions, report Victor Jack, Costanza Gambarini and Louise Guillot.
MERKEL DEFLECTS: During a visit to Hungary, former German Chancellor Angela Merkel suggested Russia’s full-scale invasion of Ukraine was at least partly a consequence of eastern EU leaders refusing to allow direct talks between her, Vladimir Putin and French President Emmanuel Macron.
Rewind: At a European Council meeting in June 2021, Merkel and Macron had sprung the idea of direct negotiations on other leaders amid a buildup of Russian troops on Ukraine’s border. A coalition of eastern states including Poland balked at that idea, and their efforts saw tough language on Russia in the summit conclusions, Hans von der Burchard of Berlin Playbook reminds us.
Say what? Speaking to Hungarian opposition media Partizán during her visit on Friday, Merkel said: “In June 2021, I felt that Putin was no longer taking the Minsk Agreement seriously. And that’s why I wanted a new format where we, as the European Union, could talk directly with Putin.”
Self-serving finger pointing: “This was not supported by some. It was mainly the Baltic states, but Poland was also against it.” Merkel said these countries were “afraid” that “we would not have a common policy toward Russia … In any case, it didn’t happen. Then I left office, and then Putin’s aggression began.”
Reality check: The interview papers over the deep chasms in Merkel’s legacy when it comes to Putin’s Russia. Chief among them: her government’s decision in 2015 to greenlight the Nord Stream 2 pipeline from Russia to German, despite the Kremlin’s annexation of Crimea and stealth invasion of eastern Ukraine in 2014.
Coincidentally (or not), back in 2021, Donald Tusk, then the European Council president and now the Polish prime minister, called Merkel’s Nord Stream move her “biggest mistake.”
GAZA WAR LATEST
ISRAEL, HAMAS IN EGYPT FOR TALKS: Israeli and Hamas delegations meet with U.S. counterparts in Egypt today for talks about Donald Trump’s 20-point peace plan for Gaza, as the clock ticks down on the American president’s ultimatum for Hamas to release all remaining hostages. Details here.
POTUS warning: Trump said on Sunday he expected the first hostages would be released “very soon,” and warned that Hamas would be “totally obliterated” if it failed to follow through.
Catch up: Hamas said in a statement it had partly accepted Trump’s proposal but made no comment about its disarmament or the idea of leaving power entirely in Gaza. The Wall Street Journal reported over the weekend that the group was internally split over the plan, with militants inside Gaza resisting the disarmament plan.
SA’AR SPEAKS: In an interview with the Axel Springer Global Reporters Network, which includes POLITICO, Israeli Foreign Minister Gideon Sa’ar was asked what Israel would do if Hamas released hostages but did not accept other parts of Trump’s plan.
“In that case, we will not have to do the other parts. I mean, when you’re going to a deal, it’s not unilateral,” he said, without specifying which parts of the plan he meant. Trump’s plan includes Israel’s withdrawal from Gaza to a preset line as part of a phased pullout. “It’s not an Israeli plan. It’s President Trump’s plan, supported by a huge international consensus. And that includes the disarmament of Hamas, and that includes that Hamas should lay down its arms,” Sa’ar added.
How the deal was done: The FT has an insidery account of how Trump managed to corner Israeli Prime Minister Benjamin Netanyahu into signing up to his peace plan.
IN OTHER NEWS
THE NEW FRENCH GOVERNMENT … is pretty similar to the old one, apart from Bruno Le Maire being named the new armed forces minister and Roland Lescure the finance minister. Full details here.
AUSTRIAN EUROPE MINISTER TOURS WESTERN BALKANS: Austria’s Europe Minister Claudia Plakolm is touring Western Balkans countries as part of a push for EU enlargement and continued reforms in candidate countries, her office said. Plakolm is due to visit six countries in six days.
INTERESTING READ: Sardinian villages are hunting for new residents, writes Tommaso Lecca.
HOW CHINA DOES IT: The Wall Street Journal has this report on how China secretly pays Iran for oil and avoids U.S. sanctions.