PM eyes major cabinet shake-up
A sweeping government reshuffle appears imminent, with Prime Minister Kyriakos Mitsotakis finalizing key appointments. Sources indicate that changes could occur within hours as the prime minister seeks to recalibrate his administration.
https://www.ekathimerini.com/politics/1263897/pm-eyes-major-cabinet-shake-up
Greece to spend more than 25 bln euros in arms procurements by 2036
Greece will spend more than 25 billion euros in arms procurements by 2036, including new submarines, drones, satellites and fighter jets, under a 12-year plan to be submitted to parliament in the coming weeks, three officials with knowledge of the plan told Reuters.
Tassoulas to be sworn in as President of the Hellenic Republic on Thursday at 11:00
Constantine Tassoulas is to be sworn in as President of the Hellenic Republic in a ceremony to be held on Thursday at 11:00. Tassoulas will succeed Katerina Sakellaropoulou, Greece’s first woman president and former Chief Justice of the Council of State.
Androulakis: We want a state that helps society, but ND wants to control it, not change it
The tragedy at Tempi “revealed that we need a state that inspires and mobilizes its citizens, a state that is reliable and effective,” PASOK-Movement for Change (KINAL) leader Nikos Androulakis said on Wednesday. Androulakis delivered the opening speech at a party event, ‘For a reliable and effective state’, charging that the government “is a system of rule that failed to manage 54 million euros in European funds to implement telemanagement – a system of rule responsible for the unmeritorious appointment of the station master, a system of rule that did not respect the victims of the tragedy themselves, resulting in the alteration and coverup of critical data, a fact which makes justice’s work tougher.”
ATHEX: More records fall at local stock market
The Greek stock market’s momentum continues strong, taking the benchmark to historic highs and bank stock prices to levels unseen in almost a decade. Wednesday’s performance at Athinon Avenue took the main index to its highest point since February 2011, with traders believing that the prospects of a truce in Ukraine and a possible upgrade of Greece’s credit rating on Friday night by Moody’s can fetch significant profits to those who buy early enough.
https://www.ekathimerini.com/economy/1263916/athex-more-records-fall-at-local-stock-market
KATHIMERINI: Crime ring was tampering fuel pumps via mobile phones
TA NEA: Tariff war between USA-EU: Which products are going to become super-expensive
EFIMERIDA TON SYNTAKTON: Tariffs on international trade: Everyone against everyone
RIZOSPASTIS: “NATO express”: the railway is being used for the transport of dangerous war material
KONTRA NEWS: The Archbishop of Athens and all Greece Ieronimos demands the ousting of Culture Minister Mendoni
DIMOKRATIA: Lethal mission in Libya which led to the death of 5 Greeks was ordered by Mitsotakis
NAFTEMPORIKI: The consequences of the tariff war
DRIVING THE DAY: RUTTE HEADS TO WASHINGTON
SAVING THE ALLIANCE: NATO chief Mark Rutte will meet U.S. President Donald Trump at the White House today, as the world’s largest military alliance faces its biggest internal crisis since it was established.
Treading carefully: Rutte has been putting his best foot forward on the recent head-spinning messaging from Washington, insisting the U.S. is on “the same page” as other NATO allies.
Prepping for peace: Today’s visit comes at a pivotal moment for the future of Ukraine and the European continent as Moscow mulls a proposed ceasefire backed by the U.S. and endorsed by Kyiv. The White House confirmed Trump’s envoy Steve Witkoff will be in Moscow this week.
The problem: Rutte’s visit comes as the former Dutch prime minister finds himself in the backseat, while France and the U.K., Poland, Germany and Italy form power blocs seeking to influence Washington, as my Defense colleagues Paul McLeary, Jack Detsch and Jacopo Barigazzi report. The subgroup meetings in Paris, which don’t include Rutte, are “almost as important as the preparatory meetings for the creation of NATO in 1949,” reckons French Foreign Minister Jean-Noël Barrot.
Exhibit A: Speaking after Wednesday’s meeting of the so-called E5 group of defense ministers in Paris, French Defense Minister Sébastien Lecornu said around 15 countries had shown an interest in options involving “security architecture” for Ukraine, with his British counterpart stating that the work on providing security guarantees was accelerating. More on that here.
Reality check: But the reality facing Europe as it tries to forge a role in any post-ceasefire scenario is more complex. European armies are in bad shape — as indicated in this week’s damning report on the state of the German military — and capacity issues could hinder their commitment to any peacekeeping operation in Ukraine. European allies are also adamant that they need some kind of security guarantees from the United States — an issue that’s likely to feature heavily in today’s Oval Office meeting between Rutte and Trump.
ART OF THE DEAL: POLITICO’s Tim Ross has a top story out this morning that takes you into the room as British PM Keir Starmer worked to save the ceasefire deal. Tim reports that Starmer and his top security adviser Jonathan Powell labored intensively to resuscitate the broken relationship between Kyiv and Washington, and worked on a draft of the ceasefire plan.
Putin the pressure on: There are reports the ceasefire could come into force as soon as today — though with the ball now in Russia’s court, Reuters reports Moscow has presented the U.S. with a list of its own demands. Trump threatened more sanctions if Putin doesn’t play ball, saying: “I can do things financially that would be very bad for Russia.”
Channeling the Zelenskyy look: Putin — unusually dressed in military camouflage — last night visited Russian soldiers in the Kursk region and ordered them to quickly expel all Ukrainian forces from Russian territory. Seb Starcevic has more.
DUDA WANTS NUKES IN POLAND: Meanwhile, Polish President Andrzej Duda told the FT that the U.S. should move nuclear weapons to his country as a deterrent against Russia, saying “it would be safer if those weapons were already here.”
TURKEY’S ROLE: Polish Prime Minister Donald Tusk sought to lure Turkey into playing a more central role in the Ukraine negotiations during a visit to Ankara Wednesday, Dato Parulava reports.
Reminder: Turkey has the second-largest military in NATO after the U.S., while Poland boasts the alliance’s third-largest force. Tusk’s mention of further cooperation in the defense industry may unnerve countries like France, which is pushing for an EU-only approach to defense procurement.
EU’S HUNGARY PROBLEM: Closer to home, the EU is still grappling with its Hungary blockage. Ambassadors failed last night to reach a deal to roll over Russia sanctions amid Budapest’s opposition, with another meeting now scheduled for this morning.
Recap: EU sanctions on Russia, including penalties on specific individuals and entities, require unanimous backing from all countries before they expire en masse on Saturday.
PARLIAMENT BLASTS TRUMP, MOSCOW: Meanwhile in Strasbourg, MEPs accused the Trump administration of “blackmailing” Ukraine’s leadership into a forced ceasefire, in a resolution passed by lawmakers across the aisle, Max Griera reports. Putin, MEPs said, is being “rewarded” for Moscow’s ongoing three-year invasion of Ukraine.
Yes to ReArm: Separately, the Parliament welcomed the Commission’s rearmament plan and backed the idea of European defense bonds (a no-no for many countries). Among the proposals in the non-binding resolution is the creation of an “EU crisis response air fleet,” which would be available to member countries for the transport and deployment of troops and equipment.
Make peace not war: But not everyone is enthused by the von der Leyen plan. Former Italian Prime Minister Giuseppe Conte, now leader of the left-populist 5Star Movement, blasted the ReArm proposal as “unacceptable” and “foolish” during a visit to the European Parliament.
“It’s the paradox of security: instead of creating a future of dialogue and mediation, we are paving the way to peace with weapons … this project will contribute to create more tensions,” he told Max, warning that increasing debt for defense will also mean “cuts to social services, health care and education.”
NOW HEAR THIS: Kurt Volker, a former Trump envoy to Ukraine, told this week’s Power Play podcast it’s “critically important” to provide European security assurances for Ukraine. Listen to the full interview here.
TRADE TURMOIL
TARIFF TURBULENCE: The repercussions of Washington’s move to introduce tariffs on metals and Brussels’ swift reaction are continuing to ripple through the global economy, with Trump slamming the EU for its trade practices Wednesday and warning further tariffs are to come, including on cars.
Enemy No. 1: “The European Union treats us very badly,” Trump said in the Oval Office, speaking alongside Irish Taoiseach Micheál Martin Wednesday. He made his usual exaggerated claims that Europe exports “millions and millions of cars” into the American market and doesn’t accept U.S. farm products. “The EU was set up in order to take advantage of the United States,” he declared.
More to come: He flagged April 2 — the date his administration will ram through its next round of tariffs — as the day America would “take back what was stolen from it.” He also took aim at the EU’s regulatory action against American companies like Apple. “The European Union’s gone after our companies. They sue our companies and win massive amounts of money,” he said.
Pharma in focus: Still speaking alongside Martin, Trump pointed to America’s “massive deficit” with the Irish leader’s country, stating that “this beautiful island … of 5 million people has got the entire U.S. pharmaceutical industry in its grip.” The president said he didn’t blame Dublin, but rather previous U.S. administrations for allowing it to happen — before riffing on his experience having to get EU approval for development for his hotel on the west coast of Ireland.
Taking aim: Trump’s latest threats come as the European Commission unveiled more details of its planned counter-measures against the U.S., publishing a 99-page list of products the EU could hit with tariffs in mid-April, including everything from food to chewing gum and snowplows.
Not happy: The Commission launched a survey seeking the views of those affected by the U.S. tariffs, setting a March 26 deadline for submissions. But already industry lobbies are protesting. SpiritsEUROPE said it’s “extremely concerned” by the Commission’s decision to put tariffs on whiskey and other U.S. spirits, claiming the products had become “collateral damage.”
LUCK OF THE IRISH: With Micheál Martin successfully navigating Wednesday’s meeting in the Oval Office with Trump, the Commission has tapped another Irish asset to press some flesh in Washington: European Commissioner Michael McGrath.
Swapping out: POLITICO’s Pieter Haeck scooped that the justice commissioner will visit the U.S. capital today and Friday. It follows confirmation that a scheduled visit by the EU’s top tech official Henna Virkkunen was scrapped.
JOURNEY SOUTH
BROADENING HORIZONS: Ursula von der Leyen and European Council boss António Costa will get a welcome reprieve from the latest transatlantic drama as they touch down in Cape Town for today’s EU-South Africa summit.
The details: The two EU leaders will meet South African President Cyril Ramaphosa this afternoon, with a press conference expected around 5:30 p.m. The meeting comes ahead of a planned African Union-EU summit at some point this year.
On the agenda: The EU is expected to launch its first Clean Trade and Investment Partnership (CTIP) with South Africa — a tool first floated in von der Leyen’s blueprint for her second term, Camille Gijs reports. The proposal focuses on investments in clean technologies including hydrogen. In addition, von der Leyen and Costa are expected to announce fresh investment through the Commission’s Global Gateway program.
It’s complicated: The high-level EU visit comes at an awkward moment for South Africa diplomatically. As chair of the G20 group, it’s playing an outsized role in international affairs. But its pursuit of a genocide case against Israel at the International Criminal Court leaves it at odds with the U.S. — and the official EU position. A senior EU official said they expect the issue to be discussed during today’s meeting.
Stepping up: South Africa has also found itself a target of Trump’s wrath, with the U.S. president having the ear of prominent businessmen with links to the country, like Elon Musk and Peter Thiel. Trump’s administration paused virtually all aid to South Africa and has withdrawn from the Just Energy Transition Partnership, cutting off climate finance projects. A senior EU official said Brussels “cannot simply step into the void,” but will be “discussing with South Africa and others what the implications are and how we can best use our partnership.”
SPEAKING OF MUSK: POLITICO’s Sophia Cai and Adam Wren explain who is in his ear — and his DMs.
SPYING SCANDALS
HOW RUSSIA RECRUITS SPOOKS IN BELGIUM: Pro-Russian groups are recruiting people to conduct espionage and carry out cyberattacks in Belgium, an undercover investigation by VRT and other European broadcasters revealed.A VRT journalist infiltrated the group on Telegram, and received tasks including placing anti-NATO stickers in the EU quarter and collecting local journalists’ email addresses. Antoaneta Roussi and Laurens Cerulus have more.
HOW RUSSIA USES SPIES IN GERMANY: Back in 2023, CDU MP Christian Hirte hired Russian man Konstantin K. to work in his office, tasking him with maintaining contact with Russian opposition figures, including Mikhail Khodorkovsky. But it turned out K. had ties to the FSB, and was dismissed at the end of 2024, German newspaper FAZ reported Wednesday.
MEANWHILE, IN THE EUROPEAN PARLIAMENT: First it was the Pegasus spyware scandal which saw MEPs’ and journalists’ phones hacked as part of a wider surveillance operation back in 2021. Now, the European Parliament is shining a light on a new controversy involving the use of Paragon software in Italy. Bloomberg has the backstory.
Lessons not learned: Speaking ahead of an event in the European Parliament this morning at 9 a.m., German MEP Hannah Neumann told Playbook the Commission had failed to implement any of the conclusions of the Parliament’s report on the Pegasus scandal.
Time for change: “The spyware company Paragon promised ‘ethical’ surveillance for democracies — yet new revelations from Italy prove widespread abuse continues, showing that self-regulation does not work,” Neumann said, calling for “a complete overhaul of spyware use and regulation.”
IN OTHER NEWS
PARIS-BERLIN ACCORD: Bundesbank President Joachim Nagel and his French counterpart François Villeroy de Galhau meet in Paris today, POLITICO’s Morning Central Banker reports. Watch out for any comments on the evolving debate on how (or how not) to finance European rearmament.
Further reading: Giorgio Leali, Marion Solletty and Rasmus Buchsteiner analyze how Trump has reignited the Franco-German engine.
SPEND SENSIBLY: The EU’s aim to significantly boost its defense should not trigger a spending free-for-all. So warned Paschal Donohoe, the head of the eurozone club of finance ministers, in a letter to António Costa, Gregorio Sorgi reports in today’s Morning Financial Services newsletter. “We will actively contribute to discussions on significantly scaling up defense spending expenditure while upholding fiscal responsibility and debt sustainability,” Donohoe wrote.
TOP COURT ANNULS SAMEDO FINE: The EU’s General Court on Wednesday annulled the finding of harassment and the fine imposed by Parliament President Roberta Metsola on former Renew MEP Monica Semedo, ruling that her right to put up a defense had not been upheld. Write-up here.
SENTENCED: Georgia’s former President Mikheil Saakashvili was sentenced to nine years in prison after being found guilty in an embezzlement case, Ketrin Jochecová reports. Opposition figurehead Saakashvili was first charged in absentia in 2014 for abuse of power and has been in detention since October 2021 after he returned from Ukraine to his homeland — where the government has lurched toward Russia in recent years. He denies the charges, saying they are politically motivated.
GOING HUNGRY: Aid projects in crisis-hit countries have been suspended and staffing cut after Trump froze U.S. funding to the U.N. Food and Agriculture Organization, according to internal documents seen by POLITICO’s Bartosz Brzeziński and Hannah Roberts.