Fiscal room backs new measures worth up to €6 billion
Government officials are preparing a four-year support package worth up to €6 billion, ahead of the Thessaloniki International Fair, with measures designed to fit within fiscal rules and reach all social groups. The plan would draw on multiple sources of fiscal space. Officials have already agreed with the European Commission that about €1.3 billion can be made available in 2027, without affecting targets for net spending.
https://www.ekathimerini.com/economy/1310651/fiscal-room-backs-new-measures-worth-up-to-e6-billion
Effort to revise Constitution is postponed to next parliamentary term
The discussion of the revision of the Constitution will be postponed to the next, revisionist, Parliament term, as the vote on amending the constitution on Monday confirmed the refusal of opposition parties to provide any consensus in the current parliamentary term. Ruling New Democracy’s revision proposals did not collect the required 180 votes. Most received between 158 and 161 votes, which does not allow the leading party of the next parliamentary term to formulate on its own the final content of the provisions to be revised.
Three arrested over deadly explosion and fire at vinegar factory in Corinth
Three people have been arrested in connection with the explosion and fire at a vinegar production and packaging factory in Examilia, Corinth, which claimed the life of one worker. According to the Fire Service, the three men were arrested under the flagrant offence procedure by investigators from the Corinth Fire Investigation Unit. They are the 47-year-old owner of the business, the 46-year-old safety officer, and the 46-year-old operations supervisor. They are being held responsible for the conditions that led to the explosion and subsequent fire.
State Budget: Primary surplus of 4.49 billion euros in H1 2026
The state budget recorded a primary surplus of 4.491 billion euros in the January-June 2026 period, exceeding the target by 2.538 billion euros, driven mainly by stronger-than-expected tax revenues from VAT, property taxes and direct income taxes. In June alone, tax revenues amounted to 5.793 billion euros, significantly surpassing the monthly target.
https://www.amna.gr/en/article/1011776/State-Budget-Primary-surplus-of-449-billion-euros-in-H1-2026
ATHEX: Banks index reaches new decade-high
The new cease fire in the Persian Gulf that led to a drop in oil rates, and the credit expansion recorded in the local banking sector last month (by €3.5 billion) led the banks index at ATHEX to highs unseen since late 2015 and the benchmark back above the 2,500-point mark, on the back of the growth recorded on Friday. This new week, of central bank rate decisions and of Greek lender financial results, is likely going to take the market index even higher.
https://www.ekathimerini.com/economy/1310759/athex-banks-index-reaches-new-decade-high
KATHIMERINI: Trump insists on the sale of F-35 jetfighters to Turkey
TA NEA: Real estate assets: wave of transfers
EFIMERIDA TON SYNTAKTON: Deliberation for the handling of water excludes competent institutions
RIZOSPASTIS: Working spaces are death arenas
KONTRA NEWS: Rage outburst against METRO and AVAX
DIMOKRATIA: The debts of New Democracy and PASOK amount to 1,1 bln euro – How is it possible that these parties still operate?
NAFTEMPORIKI: VAT accounts for 43% of tax-revenue
DRIVING THE DAY
EXCLUSIVE — AFTER THE FIRES: The European Commission will consider whether the wildfires causing so much devastation in southern Europe mean it needs to bring in extra measures to tackle such crises.
It won’t have a big rethink just yet — first comes the literal firefighting. “Our immediate priority is supporting efforts to save lives and bring the fires under control as quickly as possible,” Crisis Management Commissioner Hadja Lahbib told Playbook.
But once the emergency phase ends, “as we always do, we will carefully assess our overall response to this crisis,” Lahbib said. The Commission will draw lessons from this summer and consider whether “further measures or initiatives are needed.” She added: “Our policies evolve continuously based on experience.”
What can Brussels do? The EU executive doesn’t have many powers in this area — firefighting remains a national responsibility. The Commission steps in when capitals request help through the Union Civil Protection Mechanism and its strategic reserve tool, rescEU, which is coming under pressure as several countries ask for aircraft at the same time.
Still waiting for the planes: For now, Europe’s firefighting fleet remains largely rented. This summer, rescEU has access to 22 firefighting aircraft and five helicopters, provided by member countries. The Commission is getting its own permanent fleet of 12 Canadairs and five helicopters — although deliveries will run until 2030 because manufacturers can’t build them fast enough, an EU official said.
What’s happening: France and Spain are battling what the EU describes as an “exceptionally severe” wildfire season. Authorities are in a race against time before temperatures rise again in the middle of the week. In the two countries more than 300,000 people have been evacuated.
Future plan: At the moment, the most concrete idea for tackling such emergencies is the Commission’s guidelines to national governments on integrated wildfire risk management — a non-binding roadmap on prevention, land management and coordination — along with a gradual strengthening of rescEU, Commission spokesperson Anna-Kaisa Itkonen told Playbook.
The budget hope: “The next MFF isn’t agreed yet, so there might be adjustments,” Itkonen pointed out. As part of a compromise text designed to get a deal on the EU’s next seven-year budget, Cyprus, which held the six-month presidency of the Council in the first half of this year, earmarked €9.73 billion for the Union Civil Protection Mechanism.
The European Parliament wants to go further: French liberal MEP Grégory Allione — a firefighter since the age of 17 — told Playbook the Parliament is pushing for €12 billion, arguing Europe needs not only more EU-made firefighting equipment, but also more people on the ground, including through an EU directive on citizen engagement.
The context: The EU’s permanent firefighting fleet currently under construction was funded with just €600 million.
Capacity isn’t everything: More planes alone won’t solve the problem, a second EU official said. “You can buy 24 Canadairs. You can buy 50. It will never be enough.”
READ MORE: The largest wildfire in Spanish history risks becoming a political liability for the center-right People’s Party ahead of next year’s general election, as its regional governments face accusations that they failed to prepare adequately for the disaster.
BIG AND BREAKING
EXTRADITION REQUEST: Poland has formally asked the U.S. to arrest and extradite former Justice Minister Zbigniew Ziobro over allegations ranging from abuse of power to spying on political opponents.
POLISH PIS PURGE: The leadership of Law and Justice (PiS) is set to decide the fate of party defectors after former Prime Minister Mateusz Morawiecki’s dramatic split on Friday, in which he reportedly walked out the door with 40 MPs and three MEPs. One option on the table: stripping the rebels of their party membership, Polish media report.
MIDDLE EAST LATEST: Donald Trump told reporters aboard Air Force One last night the U.S. is having “good talks” with Iran about ending their conflict, but will resume airstrikes if it doesn’t get a deal. The pause in fighting was put to the test on Monday, with Saudi Arabia, Jordan and Iraq reporting drone attacks, per Reuters.
THE 6G RACE IS ON: Washington is rallying more than 20 allies — including Germany, the U.K. and Japan — to coordinate the next generation of telecoms technology and keep China from dominating 6G.
FRIENDS IN HIGH PLACES: Romania’s Trump-aligned nationalist George Simion says Brussels is intent on destroying Europe’s economy … and that God is behind his Alliance for the Union of Romanians party.
MAGA AND UKRAINE
MR. ZELENSKYY GOES TO WASHINGTON: Volodymyr Zelenskyy is in the U.S. capital today to attend Lindsey Graham’s funeral and meet Donald Trump. His visit comes as some in the MAGA universe seem to be learning to love Kyiv, Zoya Sheftalovich reports.
Far-right activist Laura Loomer, who has in the past amplified Russian narratives, visited Kyiv last week, met Zelenskyy and said she had been “bamboozled by Russian propaganda.” Podcaster Tim Pool, another former critic of Ukraine, said this week that Kyiv was “fighting for its very existence against an evil dictator.”
Even Vice President JD Vance, among Zelenskyy’s top U.S. antagonists, earlier this month softened his tone, praising Ukraine’s defensive strategy and saying Russia’s offensive capabilities are “getting close to zero.”
“There is something happening there,” Trump’s former special representative for Ukraine negotiations Kurt Volker told Zoya. Trump’s declaration at this month’s NATO summit that he had a “good relationship” with Zelenskyy — alongside his backing for Ukrainian production of Patriot interceptors — was “a signal to the MAGA world that it’s OK to support Ukraine,” Volker said.
Note of caution: The new mood music doesn’t amount to a full MAGA embrace of Kyiv and if Zelenskyy wants to get the anti-interventionist wing of the Republican Party on his side, he’ll have a lot more convincing to do during his time in the U.S. Some close to the White House also question the sincerity of Loomer’s about-face.
Sanctions test: MAGA’s apparent evolving stance will face an immediate test in the U.S. Senate, where lawmakers are considering Graham’s stalled Russia sanctions bill. Senate Majority Leader John Thune wants a vote before the August recess, but Trump’s push to include Iran measures has complicated negotiations.
Backing a winner: Ukrainian officials believe Trump is responding to results on the battlefield, where Russia is losing troops, money and momentum, and Ukraine looks increasingly like a winner. Volker appears to agree: “Trump sees that Putin is losing, and he sees that Zelenskyy has actually pulled this all together and is winning.”
DUBLIN, WE HAVE A PROBLEM
A MESSAGE FROM MERZ: German Chancellor Friedrich Merz is heading to Ireland today with a warning: If the Irish presidency of the EU Council doesn’t produce a substantially cheaper blueprint for the EU’s next seven-year budget, hopes of reaching a deal this year could be dashed.
Cut it down: Merz will use his three-hour visit with Irish Prime Minister Micheál Martin to press Ireland — which in the second half of 2026 chairs negotiations among EU governments — to make far deeper cuts to the European Commission’s nearly €2 trillion proposal, my Berlin Playbook colleague Hans von der Burchard reports. Cyprus, which held the presidency in the previous six months, made only modest changes.
Why Germany matters: As the EU’s largest net contributor, Berlin’s backing is essential. Merz believes that only a considerably smaller package can create a “landing zone” acceptable to Germany and other budget-conscious capitals, according to a European diplomat familiar with his position, granted anonymity to discuss the confidential plans.
The clock is ticking: Merz will warn that failure to strike an agreement this year could push the negotiations deep into 2027 — when elections in France, Italy, Spain and Poland risk further complicating talks.
No new-tax enthusiasm: The pair will also discuss proposals for new sources of EU revenue. Berlin doubts measures such as a digital levy are politically viable and remains hostile to the Commission’s proposed charge on large companies.
Why bother? Brussels is considering exempting loss-making and smaller firms, but the diplomat noted that would also reduce the money raised. “Is it worth the trouble?” the diplomat asked, echoing Merz’s argument that the levy would undermine European competitiveness.
7 MORE THINGS GETTING US TALKING
HUNGARIAN WHISTLEBLOWER FIGHTS BACK: Zombor Berezvai, the former chief economist at Hungary’s competition authority, accused Viktor Orbán’s government of political interference — and was promptly fired. Berezvai is now challenging his dismissal in court under the EU Whistleblowing Directive. More in Morning Fair Play (for subscribers).
ROMANIA’S EXHIBIT A: Bucharest summoned Russia’s ambassador to protest against violations of its airspace over the weekend — and showed him fragments of drones that were shot down in Romanian territory.
ALL ABOARD: Steffen Bilger is set to become Germany’s next transport minister, inheriting the task of dragging its aging infrastructure into the 21st century. More in Morning Mobility (for subscribers).
FOREIGN POLICY DEBUT: Britain’s new PM Andy Burnham welcomed Volodymyr Zelenskyy yesterday for his first meeting with a foreign leader, and promised a “close partnership” with Kyiv.
SCOOP — EU’S 2026 HEALTH SPENDING: What’s in the European Commission’s draft EU4Health work program? Read it in Morning Health (for subscribers).
THE AI ACT GETS SOME BITE: Sunday’s second anniversary of the AI Act is more than symbolic. It marks the moment Brussels’ AI Office gets sweeping new powers to scrutinize the world’s most advanced AI models — and fine companies that don’t play ball.
TURNBERRY MATH: The U.S. trade deficit with Europe narrowed in the first half of 2026, with exports to Europe growing faster than imports, led by energy and industrial goods. More in Morning Trade (for subscribers).