European prosecutor brings charges against another 16 suspects over role in stalled railway contract
The European Public Prosecutor’s Office (EPPO) has brought additional charges against 16 individuals in connection with the long-delayed implementation of Contract 717, a €41 million EU-funded project for modernizing Greece’s railway network.
https://www.ekathimerini.com/news/1271115/eppo-prosecutes-16-over-role-in-stalled-railway-contract
Tsoukalas: ND appears to be trying to limit the scope of the investigation into Karamanlis
“It is as if New Democracy is trying from the outset to limit the scope of the investigation of criminal accountability for [former transport minister Kostas] Karamanlis,” main opposition PASOK-Movement for Change spokesperson Kostas Tsoukalas commented on Wednesday. He was speaking to the radio station REAL FM regarding the ruling party’s request for a preliminary Parliamentary investigation to examine a misdemeanor charge of breach of duty for the former minister.
Mitsotakis announces new authority to supervise retail markets
Prime Minister Kyriakos Mitsotakis announced plans to establish a new and strong national authority to supervise the market and protect consumers, in his presentation during a cabinet meeting on Wednesday.
https://www.amna.gr/en/article/907124/Mitsotakis-announces-new-authority-to-supervise-retail-markets
State of emergency declared in Serres communities over uranium levels in drinking water
A state of emergency was declared on Tuesday at three municipal communities in the Serres area, northern Greece, due to high concentrations of uranium found in drinking water a few days ago.
ATHEX: Index sees 2,000 points within reach
The investment of some 1 billion euros by UniCredit in Alpha Bank, buying the shares of Reggeborgh Invest, gave another push to the Greek stock market on Wednesday. All main indexes as well as the market’s turnover soared, also thanks to the oversubscribed bond that Eurobank issued, collecting €500 million. The benchmark has now risen to highs unseen since April 2010, and the major psychological landmark of 2,000 points – which until recently could only be considered as a distant target – suddenly appears within reach.
https://www.ekathimerini.com/economy/1271074/athex-index-sees-2000-points-within-reach
KATHIMERINI: Illegal migrants face jail time
TA NEA: Green light for the marine parks
EFIMERIDA TON SYNTAKTON: EU Commission exposes PM Mitsotakis regarding the scandal involving the Payment Authority of the Common Agricultural Policy (OPEKEPE)
RIZOSPASTIS: Communist unions and organizations will rally against the murderous state of Israel and its bloody business
KONTRA NEWS: European prosecutor launches inquiry into two ministers linked to the Payment Authority of the Common Agricultural Policy (OPEKEPE)
DIMOKRATIA: Cost of living in Greece exceeds that of London and Brussels
NAFTEMPORIKI: Greek shipowners add 14+4 bln to the Greek GDP
DRIVING THE DAY: TRADE WAR
WHILE YOU WERE SLEEPING: A U.S. federal court struck down most of President Donald Trump’s “Liberation Day” tariffs on dozens of countries, ruling that he overstepped his powers by implementing the measures without Congress’ approval. The ruling will apply to almost all of Trump’s tariffs on overseas goods — except the 25 percent levies on steel, aluminum and cars. The Justice Department has filed an appeal, our Stateside colleagues report.
Payback time: The court’s ruling means the U.S. may have to pay back duties it has already collected, per our colleagues. But before anyone gets too excited, it’s worth noting Trump could attempt to impose the same tariffs under other laws.
THE COSTA OF DOING BUSINESS: Meanwhile, in South America, European Council President António Costa closes a three-day visit to Brazil with a keynote speech to the first EU-Brazil Investment Forum in São Paulo. The meeting coincides with the signing of a “structured EU-Brazil Investment Dialogue” — which may be more of symbolic than economic value, but which at least signals that Brasília and Brussels are rowing in the same direction.
Sneak peek: Playbook got our hands on Costa’s speech, in which he will highlight the two partners’ roles as an “anchor of predictability in the international economic order.” Take the hint, Washington?
Rising again: Brazil has long been an important player, as the most populous country in Latin America and its largest economy. In 2023, bilateral trade in goods between the EU and Brazil was worth nearly €90 billion. But South America’s only Portuguese-speaking nation has gained renewed importance since the start of Trump’s trade war.
Triangulation: “It’s a hugely significant partner in the context of the EU’s relationship with the U.S. and China,”said Peter Chase, a former U.S. diplomat and a senior fellow of the German Marshall Fund. As a major exporter of agricultural commodities such as soybeans, it can help replace American farm exports, while its wealth of raw materials does the same for Chinese exports. “For the EU, the relationship with Brazil becomes even more important, because the EU will need to work with a lot of other middle power countries to push back on both the U.S. and China,” Chase added.
Merco-sure thing: Then there’s the ever-present Mercosur trade deal lurking in the background — which awaits a final vote in the Council but faces continued resistance from Paris. Hosuk Lee-Makiyama, director of the European Centre for International Political Economy (ECIPE), said the visit is meant to reassure partners of the EU’s commitment to Mercosur.“Effectively, the purpose of the Costa trip is to show: ‘Look, we are ready to do the deal,’” he told Playbook.
Keeping it real: Brazil also has a lot at stake in successfully concluding the deal. POLITICO Pro trade colleagues write that the world’s largest meat producer, Brazilian giant JBS, is primed (pun intended) to gain “€1.7 billion in extra profits before tax and €1.2 billion after tax by 2040 if the EU-Mercosur deal is adopted,” per the latest report from Dutch research institute Profundo, published by Greenpeace (the environmental NGO highlights environmental concerns linked to cattle farming).
Ambassador extraordinaire: In theory, it’s the Commission that takes the lead in these discussions, so Costa’s role should be seen as an ambassadorial one. But he’s a helpful person to have as an ambassador. He and Brazil’s President Luiz Inácio Lula da Silva share a language, cultural bonds and political colors. And they know each other from when Costa was Portuguese prime minister.
Bad timing: As luck would have it, a planned meeting in Brasília couldn’t take place because Lula fell sick. But Costa did meet with Foreign Minister Mauro Vieira, where he highlighted their shared commitment to Mercosur, climate action (Brazil will host the next COP) and Ukraine — a trickier topic.
Getting to the meat of the discussion: Even if a trade deal is passed, that’s no guarantee of actual access to the market, as hosts of non-tariff hurdles remain. Just on Tuesday, a lobby group representing Brazil’s cattle farmers filed a complaint with the European Commission claiming that four French supermarkets, including Carrefour, broke EU law by slandering their meat. Their CEOs had criticized the trade agreement, writes trade colleague Jacob Parry in an upcoming article.
MEANWHILE, IN PORTUGAL: Far-right Chega overtook Costa’s Socialists to become the second-biggest party in Portugal’s parliament, and therefore the country’s official opposition, according to official results published on Wednesday.
PEACE DELEGATION
MEPs IN WASHINGTON: Nearly 8,000 kilometers north of São Paulo again, another group of EU representatives is busy talking trade in the U.S. capital. Eight MEPs from the Parliament’s Committee on International Trade (INTA) are finishing their mission to D.C. by meeting with officials from the Trump administration, including Bryant Trick, assistant trade representative for Europe, and Michelle Bekkering, deputy under secretary for trade at the Department of Agriculture.
Cautious optimism: Playbook caught up with center-left MEP Brando Benifei, who said there was “cautious optimism” in the air. The Italian, who also serves as chair of the Parliament’s delegation for relations with the U.S., said the mood around tariff talks had improved since he was last in Washington a month and a half ago (this was of course before last night’s bombshell court throwing out Trump’s Liberation Day tariffs).
Sticking points: Areas on which the two sides were finding agreement included European commitments to purchase more American energy and invest more in the U.S. “That gives Trump the possibility to make big announcements,” Benifei said. But issues such as U.S. opposition to European regulations — think here of the Digital Services Act — and Trump’s insistence on a 10 percent base global tariff remain sticking points.
Eye to eye: Perhaps the biggest leap, Benifei said, is Washington’s recognition of the European Commission — and officials like Trade Commissioner Maroš Šefčovič — as valid interlocutors.“We’ve taken a step forward in terms of actually structuring the negotiations,” he said. “Previously, it looked like it was all just in Trump’s head, that it depended on whatever he wanted to do.”
BOHEMIAN RANSOMWARE
CODEWORD PŘEDSEDNICTVÍ: Communists, espionage, Prague. It’s got all the makings of a John le Carré novel. But rather than anonymous suitcases dropped off in dimly lit parks, it’s servers and encrypted files that are keeping the real-world George Smileys busy.
Czech officials accused Beijing on Wednesday of hacking the foreign ministry and exposing thousands of unclassified emails in 2022 — the year Czechia held the rotating EU Council presidency, writes our cybersecurity reporter Antoaneta Roussi.
Awkwaaard: The timing of the reveal is significant. EU officials are expected to meet their Chinese counterparts some time this summer, with July being floated as the likely date. Beijing even lifted sanctions on five current and former MEPs to unlock the trade talks. But the hacking claims — along with recent kerfuffle over Chinese tech company Huawei’s alleged lobbying practices — could cast a pall on the gathering.
No mincing words: Czech Foreign Minister Jan Lipavský didn’t beat around the bush in his public response on X: “China is interfering in our society — through manipulation, propaganda, and cyberattacks.”
We got your back: It’s a sign of just how seriously the matter is being taken that the EU’s top diplomat Kaja Kallas put out a statement with the backing of the “member states” naming and shaming China. Presumably, all 27 at least accepted the wording even if they’re not thrilled about it, given the commercial sensitivities at play.
Watch the polls: One theory for why Czechia might have decided to go public with the news now is that the country is heading toward an election scheduled for early October, said Ivana Karásková, project leader at MapInfluenCE, which tracks China’s influence in Central Europe. China has long been a topic of interest in Czechia, which has strong relations with Taiwan dating back to the 1990s and the leadership of Václav Havel.
Will there be repercussions from China? Karásková said that’s unlikely. Beijing has little to “hit us with” since the Czechs aren’t heavily dependent on exports to China and don’t rely diplomatically on Chinese support in multilateral forums. “There’s bigger awareness among EU member states, as well as the European Commission, that China is a problem, especially after 2022 with the full-scale invasion [by Russia of Ukraine] and the pro-Russian neutrality of China,” she added.
AACHEN FOR RECOGNITION
THE EMPRESS TAKES HER CROWN: Commission President Ursula von der Leyen will this morning travel to Aachen, the town that was once the capital of the Carolingian empire, to accept the Charlemagne Prize. The award is bestowed upon those judged to have made “a significant contribution to peace, unity and cooperation in Europe.” Previous recipients include the euro, Henry Kissinger, the European Commission and von der Leyen’s predecessor, Jean-Claude Juncker.
Fair enough? This year’s winner was picked on account of her “key role in keeping Europe united, resilient and capable of action.” Whether it’s the pandemic, Russia’s invasion of Ukraine, or the trade war, there’s no doubt the Commission chief has been busy. Rhetorically, at least, she’s always been a big booster of European values. But, coming fresh off a bruising court defeat that all but accused the Commission — and von der Leyen specifically — of covering up evidence in a multi-billion-euro vaccine deal, the award does seem a little ironic.
Pragmatic idealism: Catherine De Vries, a political scientist at Bocconi University, argues that von der Leyen tries to reconcile this tension by focusing on delivering. If Europe is meant to represent its citizens, and EU citizens want Brussels to act, then the Commission president will do what it takes, even if it means getting her hands a little dirty. “I think she sees herself as someone who wants to get stuff done,” said De Vries.
BLOWING THE WHISTLE
KEEP THE CHAMPIONS HERE: European football should stay in Europe. That was the message from the EU’s Sport Commissioner Glenn Micallef, who made no bones of his opposition to suggestions that competitions such as the Champions League could travel beyond the continent to attract new viewers in places like the U.S.
One for the fans: “These are European competitions and European competitions should be played in Europe, I think that’s quite clear. It’s the European Cup, come on,” said the Maltese commissioner in an interview with POLITICO. “You can say I’m emotional on this, but if you have a favorite local club and if that club manages to get to the final of a trophy, be it the national cup or another final, why shouldn’t you be able to afford to watch your team?”
A tough referee: Micallef also addressed calls to let Russian athletes back into global sporting events, saying he was opposed but that the decision wasn’t ultimately up to him. Read the full story by Ali Walker.
MAKE OR BREAK ELECTIONS
POLAND — RULE OF LAW PUT TO THE VOTE: Warsaw’s return to the EU fold is only half-finished. Sunday’s presidential vote could change that. Prime Minister Donald Tusk’s 2023 electoral victory marked a turning point in the country’s relations with Brussels. But the center-right Civic Platform’s reform agenda continues to be stymied by incumbent President Andrzej Duda, loyal to the populist-nationalist Law and Justice (PiS) opposition party. The upcoming vote will pit liberal Warsaw Mayor Rafał Trzaskowski against PiS right-winger Karol Nawrocki. Wojciech Kość has the story.
WHEN TRUMP WANTS TO CALL ROMANIA: Donald Trump finally called Romania’s new leader Nicuşor Dan on Tuesday to congratulate him on his victory in the May 18 presidential election. The conversation lasted around 10 minutes and was “very cordial and warm,” a person with knowledge of the call told Playbook’s Tim Ross.
What they talked about: “The strengthening of our strategic partnership, which needs to be reinforced,” the person said. Trump and Dan also swapped invitations to visit each other’s countries (Dan posted a readout on Facebook).
What they didn’t talk about: All the times Elon Musk and JD Vance slammed Romanian authorities for canceling last year’s election and preventing ultranationalist Călin Georgescu from running. Or the MAGA movement’s newest Romanian darling, George Simion, and his failed attempt to beat Dan in the runoff. Or the U.S. government’s decision to halt visa-free travel for Romanians. Or Vladimir Putin’s likelihood of signing up to a peace deal for Ukraine.
Why the delay? Trump may have been waiting for the signal from Simion and Georgescu that they’d accept the result of the election. Georgescu earlier this week conceded the race was over and announced he’d be retiring from politics, since “this phase of the sovereigntist movement has ended.” The “stop the steal” narrative … stopped.
IN OTHER NEWS
EN LAGARDE: President of the European Central Bank Christine Lagarde is considering an early exit to replace Klaus Schwab as head of the World Economic Forum. That’s according to Schwab, at least, per an interview with the Financial Times. The ECB’s press handlers strenuously denied their boss is considering a move away from Frankfurt.
Reality check: Davos is lovely, but it’s hard to understand why Lagarde would want to abdicate a role of real power (interest rates are a big deal — just think of your mortgage!) to head up a talking shop, no matter how prestigious.
Speaking of Schwab: The World Economic Forum founder has launched a criminal complaint against the whistleblowers whose accusations led to his WEF ousting, he told the FT.
FOR BREXIT, CHERRY SEASON IS OVER: EU officials will no longer use the phrase “no cherry-picking”in their dealings with the U.K. Brussels reps say that at this point, the expression is passé, and the EU-U.K. relationship has moved beyond it, reports Jon Stone.
A LOBBYING ETHA-NO-NO: A far-right MEP’s inquiry addressed to the Commission was inspired by an ethanol lobbyist — as revealed in the document’s tracked changes. Jana Nagyová of the Patriots for Europe group wrote to other MEPs to ask for their support in signing her question, adding an attachment that revealed the comments of a vice president at ethanol producer Alcogroup. Mari Eccles and Max Griera have more.
“DON’T LET SPARKS FLY,” SAYS SWEDEN: Swedish Civil Defense Minister Carl-Oskar Bohlin and Justice Minister Gunnar Strömmer are taking aim at gangs and their explosives stashes. The two sent a letter to the Commission, seen by Playbook, in which they lament the surge in gang-related explosions and advocate for stricter EU regulations on pyrotechnics to curb the violence.
BERLIN ASKS COMMISSION TO TURN A BLIND EYE: Germany’s new Economy Minister Katherina Reiche is pleading with the European Commission to give state-aid approval for a plan to boost the country’s energy-intensive industries, the FT reports.
OVERNIGHT WASHINGTON WRAP: Elon Musk confirmed his time as a “special government employee” with DOGE is coming to an end … Secretary of State Marco Rubio said the U.S. will “aggressively revoke” visas for Chinese students … Trump gave Putin two weeks to get serious about ending the war in Ukraine.