Government weighs shifting OPEKEPE’s responsibilities to tax authority amid EU fraud probe
The Greek government is “seriously considering” transferring the responsibilities of OPEKEPE – the agency managing EU subsidies, including farming subsidies – to the Independent Authority for Public Revenue (AADE), Deputy Prime Minister Kostis Hatzidakis has told local media outlet SKAI.
Ex-minister faces ND investigation request over Tempe railway disaster
The ruling New Democracy party is expected to submit a parliamentary investigation request within days targeting only former transport minister Kostas Karamanlis over the deadly Tempe train crash, government sources said Monday.
Androulakis: Turkiye should not participate in European defence
“What relation could Turkiye, which threatens Greece with a casus belli even though it is a member-state of NATO and given the impossibility of a just solution to the Cyprus problem on the basis of UN resolutions, a Turkiye that is a destabilising factor in the wider region, have with European defence?” main opposition PASOK-Movement for Change leader Nikos Androulakis said to REAL FM on Monday. Androulakis clearly distanced himself from Prime Minister Kyriakos Mitsotakis’ proposal that Turkiye lift the casus belli in exchange for participation in European defence programmes, arguing that the threat of war may return.
https://www.amna.gr/en/article/906595/Androulakis-Turkiye-should-not-participate-in-European-defence
Attica-Crete power link launched on trial basis
The operation of the Attica-Crete electrical interconnection, with the transfer of direct current electricity, was successfully launched on Saturday, the Independent Power Transmission Operator (ADMIE) announced on Monday.
https://www.ekathimerini.com/economy/energy/1270865/attica-crete-power-link-launched-on-trial-basis
ATHEX: Recovery for stocks amid volatility
Global market volatility persisted for another day on Monday, fed by the backtracking of Washington regarding increased reciprocal tariffs on European Union imports, which have been postponed until at least July 9. The continent’s bourses greeted the news with enthusiasm and the Greek stock market rebounded, offsetting all losses from the two previous sessions. Notably, the day’s turnover was quite respectable despite the holiday in the US and the UK.
https://www.ekathimerini.com/economy/1270879/athex-recovery-for-stocks-amid-volatility
KATHIMERINI: Carrot and stick” for owners and renters
TA NEA: Tax-incentives for bank depositors
EFIMERIDA TON SYNTAKTON: EU: Cannons inbstead of housing
RIZOSPASTIS: People’s astonishing voice: With Palestine until its freedom
KONTRA NEWS: Greece’s VETO in the EU “sinks“
DIMOKRATIA: Government mockery regarding Turkey’s casus belli
NAFTEMPORIKI: “Detectives” will expose rich debtors
DRIVING THE DAY: POINT OF PRIDE
HAS ORBÁN FINALLY GONE TOO FAR WITH PRIDE BAN? Not exactly.
But today’s gathering of foreign and EU ministers in Brussels — known as the General Affairs Council — is likely to show just how close EU capitals are to the breaking point amid the Hungarian government’s plan to ban LGBTQ+ Pride celebrations in Budapest.
The majority want action: Sixteen countries backed a statement calling on the Commission to “make full use of the rule of law toolbox at its disposal” to make Budapest relent on its Pride ban. The statement, first reported by Euractiv, was coordinated by the Dutch foreign ministry.
France and Germany, crucially, also support the statement, a diplomat tells Playbook’s own Nick Vinocur.
HITTING BACK AGAINST “THE BRUSSELS OLIGARCHY”: “The democratically elected Hungarian Government has every right to uphold the nation’s moral norms, regardless [of] whether or not they are antithetical to those of the Brussels oligarchy,” said John O’Brien, head of comms at Orbán-backed think tank MCC Brussels. He argued that while Pride used to be about “gay and lesbian political rights,” the celebration is now about the “self-conscious promotion of transgression” of social norms.
Messaging win either way: Amid a growing threat from conservative opposition leader Péter Magyar ahead of the April 2026 election, the Fidesz party of Hungarian PM Viktor Orbán is trying to show that protecting children is its priority. Blocking Budapest Pride reinforces that message, said Zoltán Kiszelly, director of political analysis at Századvég, a Fidesz-aligned think tank, to Hungarian outlet Mandiner. And if Pride defies Orbán’s efforts and goes ahead? Then Fidesz can keep campaigning on the issue.
MOVING TOWARD THE “NUCLEAR OPTION”: Today’s GAC agenda also includes the eighth hearing in Hungary’s Article 7 procedure, in which countries consider whether to strip Budapest of its EU voting rights over various rule of law breaches.
Current tally: At least 19 countries support moving forward with Article 7 proceedings — which is three short of the number needed to proceed to the next stage. “After seven years and seven hearings, we are at a crossroads,” Swedish Europe Minister Jessica Rosencrantz told POLITICO.
MERZ PROMISES “CLEARER WORDS” TOWARD ORBÁN: France and Germany’s support will be crucial to moving ahead on Article 7 for Hungary, so German Chancellor Friedrich Merz’s remarks at the Re:publica conference in Berlin Monday will certainly echo.
“We will not be able to avoid a conflict with Hungary and Slovakia” if these two countries stick to their current course on matters like holding up sanctions against Russia, Merz said.
Budget leverage: Upcoming EU budget negotiations could offer some pressure points, Merz suggested: “There could well be somewhat clearer words, perhaps even tougher conflicts.”
PARLÈM EN CATALÀ?
THE EU MIGHT BE ABOUT TO GET 3 NEW LANGUAGES: Hungary won’t be the only country at the center of a culture war at today’s GAC meeting: Spain’s proposal to have Catalan, Basque and Galician recognized as official EU languages is up for a vote. As Aitor Hernández-Morales writes in to report, there’s a possibility Madrid’s bid, which looked doomed just days ago, might actually get the green light.
Refresher — from domestic deal to EU issue: When Prime Minister Pedro Sánchez promised to push for Spain’s co-official languages to be recognized at the EU level back in 2023, most in Brussels shrugged it off as a symbolic gesture: He needed Catalan separatists to back his bid to stay in office. But those Catalans proved to be deadly serious, and Sánchez’s minority government still needs their support — especially if he’s going to pass a budget during his current term.
That’s been the crux of Sánchez’s pitch to other capitals. Spain is under pressure to allocate more public cash to comply with NATO’s demands for increased defense spending. An EU diplomat said Madrid claimed that the recognition of the languages was necessary to get the Catalan lawmakers to support a budget with more cash allocated for defense spending.
Them’s fightin’ words: Foreign Minister José Manuel Albares has argued the move could have a positive impact on the bloc’s security and defense. However, reports that Madrid attempted to pressure Baltic states by threatening to pull its troops out of the region if they voted against the proposal were categorically rejected by a Spanish official familiar with the negotiations. Spain has fewer than 1,000 soldiers deployed in the region; all of them are there on NATO missions.
SLIPPERY LINGUISTIC SLOPE: The recognition bid seemed destined to fail at a meeting of the bloc’s ambassadors last week, during which at least seven countries expressed doubts about the proposal. Making Spain’s co-official languages official at the EU level would cost millions of euros in additional translation and interpretation fees, and potentially promote the recognition of minority languages in other parts of Europe.
Spanish solutions: A draft regulation seen by Aitor ahead of today’s meeting explicitly commits Spain to bear all resulting costs. It also preempts worries about potential copycat bids to acknowledge Breton in France or Russian in the Baltic States by emphasizing its bid involves co-official languages enshrined in the country’s constitution.
ANOTHER IMPROBABLE SÁNCHEZ WIN? On the eve of the vote, a previously skeptical EU diplomat said Spain might actually obtain the unanimous support it requires. No EU leader is keen to get into a confrontation with Sánchez over an internal matter — especially one that will take years to enact and theoretically cost the rest of the EU nothing.
Then again, given Spain’s proposal to pay its own way is unprecedented, doubts linger. National representatives could reject the proposal, or push to postpone the vote.
SPEAKING OF TONGUES …
META’S AI IS ABOUT TO GET LESS ANGLO-CENTRIC: As of today, Meta will start training its artificial intelligence models with European user data, including the treasure trove of public posts and comments from Facebook and Instagram users, after alleviating concerns by a key privacy regulator last week. More details for Pro subscribers in Morning Tech.
Why do they need European data anyway? When Meta announced it would feed its AI European data, it said the models needed to understand the “diverse nuances and complexities that make up European communities,” referring to dialects, “hyper-local knowledge,” and a different use of humor and sarcasm. Playbook dreads the moment when the bots start offering help writing our “non-paper.”
TRADING BLOWS
U.S.-EU IN “CONSTANT CONTACT”: That was the refrain from European officials in the wake of U.S. President Donald Trump’s move to delay 50 percent tariffs on EU imports to July 9, following Sunday’s call with Commission President Ursula von der Leyen.
“The @EU_Commission remains fully committed to constructive and focused efforts at pace towards an [EU, U.S.] deal,” Maroš Šefčovič wrote on X after calls with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer late Monday. “We continue to stay in constant contact.” Gregory Svirnovskiy has the latest.
THE PINHO TAUTOLOGY: “The secret of the negotiations is precisely in its discretion,” the Commission’s chief spokesperson Paula Pinho told reporters curious to know what von der Leyen whispered in Trump’s ear on Sunday to convince him to delay the tariffs.
Playbook thought bubble: Perhaps Pinho, a lawyer by training, should have made this argument about von der Leyen’s vaccine negotiations at the European court’s Pfizergate hearing.
Another reason to keep it a secret: Asked about his own phone calls with Trump, Friedrich Merz said they’re confidential but “anyone who sees Trump on TV [can imagine] how they might go. And there’s not much difference.”
DOING THE MATH …
The average tax hike on EU goods would go up to 30 percentage points, compared to 8 percentage points currently, according to a Bloomberg Economics analysis shared with Playbook. (It notes that about half of EU exports are still exempt from the reciprocal tariffs.)
Exports of those goods subject to extra duties would pretty much hit zero, according to the Bloomberg analysis.
Total exports to the U.S. would be cut in half. (Under the current 10 percent tariffs, the drop is more like 20 percent.)
DUE DILIGENCE
NATO PROCUREMENT CHIEF INVESTIGATED: Sarah Cummings, head of NATO’s Support and Procurement Agency (NSPA), is being investigated over fraud allegations. According to the French investigative newspaper La Lettre, NSPA’s HR director wrote a letter to NATO Secretary-General Mark Rutte accusing Cummings of manipulating investigations and participating in “irregular recruitment processes.”
EPPO VOWS TO PURSUE GREEK FARM SCAM: European Chief Prosecutor Laura Codruța Kövesi vowed to continue pursuing an investigation into a scam to defraud the EU farm budget in Greece, which was the subject of a POLITICO investigation earlier this year. “The EPPO will continue its work diligently and impartially to establish the truth, no matter the attacks and intimidation against its prosecutors,” Kövesi said. The latest by Nektaria Stamouli here.
REPORT — EU-FUNDED PROJECTS VIOLATE HUMAN RIGHTS: New research by the non-profit watchdog group Bridge EU reveals how over €1.1 billion in EU money is being used to support projects that violate fundamental rights. Based on data collected in six member countries — including Greece, Poland and Romania — the report shows EU funds backing initiatives that, for example, segregate Roma children in education, and detain migrants unlawfully, raising questions about the EU’s oversight of its own spending.
IN OTHER NEWS
BULGARIA ON TRACK TO JOIN EUROZONE: Next Wednesday, the EU is finally set to approve Bulgaria’s bid to join the euro, paving the way for the country to enter the club on Jan. 1, 2026, my colleagues over at Morning Financial Services report. It comes after years of attempts by Sofia to get inflation to the required level.
Caveat: While most Bulgarian political parties support euro accession, President Rumen Radev said he wanted to hold a national referendum on whether to adopt the single currency. The Bulgarian parliament rejected Radev’s request (though he is challenging that), and the country’s constitutional court already ruled a referendum out last year after a separate request. But with Bulgarian politics the way it is, you never know.
DEFENSE SPENDING — 5 PERCENT IS THE NEW 3 PERCENT: NATO allies are moving toward a new defense spending benchmark of 5 percent of GDP ahead of next month’s crucial leaders’ summit, Mark Rutte said on Monday. Chris Lunday has the write-up.
HOW POLAND PLANS TO DO IT: The European Commission is set to approve Poland’s request to shift almost €6 billion in EU post-Covid funding from green projects to defense, my colleague Gregorio Sorgi reveals.
MERZ TALKS TOUGH ON ISRAEL: Friedrich Merz criticized Israel’s offensive in the Gaza Strip on Monday in unusually strong terms for a German leader. “I no longer understand what the goal of the Israeli army in the Gaza Strip is,” Merz said in an interview aired on public television. “To harm the civilian population to such an extent, as has increasingly been the case in recent days, can no longer be justified as a fight against Hamas terrorism.” Nette Nöstlinger has a write-up.
MERZ UNSHACKLES KYIV: Germany and key allies have lifted range restrictions on weapons sent to Ukraine, allowing Kyiv to hit targets inside Russia with no external limits, Merz announced Monday. It paves the way for Berlin to deliver its powerful Taurus cruise missiles to Ukraine, Chris Lunday reports.
TRUMP’S TURNING ON PUTIN: Donald Trump is considering slapping sanctions on Moscow this week over frustrations with Vladimir Putin’s continuing attacks on Ukraine, the Wall Street Journal reports, citing people familiar with the U.S. president’s thinking.
Now read this: If Trump recognizes Crimea as Russian, he will risk destroying war crimes investigations, weakening the rule of law and setting a dangerous precedent for other aggressive powers, report Martina Sapio and Lily Hyde.
TRUMP IS NOT GOING TO LIKE THIS: If the U.S. and EU don’t speed up their investments in Greenland’s minerals, the territory may need to turn to China, Greenland’s Mineral Resources Minister Naaja Nathanielsen indicated. “We want to develop our business sector and diversify it, and that requires investments from outside,’’ Nathanielsen told the Financial Times.
Asked whether that meant turning to China, she responded: ‘‘We do want to partner up with European and American partners. But if they don’t show up I think we need to look elsewhere.” She added: “We are trying to figure out, what does the new world order look like? In those terms, Chinese investment is of course problematic, but so, to some extent, is American,” she said. “Because what are the purpose of [the U.S. investments]?”