Resignation fails to calm ELTA crisis
The resignation of Hellenic Post (ELTA) CEO Grigoris Sklikas, tendered under pressure from the Prime Minister’s Office, has not quelled tensions within ruling New Democracy over the closure of 204 postal branches, according to party lawmakers.
https://www.ekathimerini.com/economy/1285726/resignation-fails-to-calm-elta-crisis
Polls show elusive majority
Greece’s next election is shaping up as one of the hardest contests in decades for any party to secure a parliamentary majority or even form a coalition government. Under the current electoral law, the leading party receives a seat bonus only if it surpasses 25% of the vote, a threshold ruling New Democracy has struggled to meet in recent polls. Surveys by Alco and Pulse show the party at 23.3% and 24% respectively, raising the risk of political deadlock if the system effectively turns into proportional representation.
https://www.ekathimerini.com/politics/1285762/recent-polls-show-elusive-majority
Greece emerges as a key energy ally for Washington
The leadership of the United States’ National Energy Dominance Council is due in Athens on Thursday and Friday, signaling the strong strategic partnership between Athens and Washington. The council was established by President Donald Trump on February 14 and installed in the White House to signal the change in US energy policy, which he also links to national security, geopolitical power and strategic autonomy.
IOBE: Slight improvement of economic sentiment in October
The economic sentiment index improved slightly in October, reaching 107.5 points from 106.2 points in September. According to the economic outlook survey by IOBE released on Tuesday, this improvement stems from stronger expectations in the business sectors and several subsectors, with the exception of a marginal weakening in industry. The downward trend in consumer confidence has returned, as consumers’ relatively pessimistic forecasts for the financial situation of households have intensified.
https://www.amna.gr/en/article/945915/IOBE-Slight-improvement-of-economic-sentiment-in-October
ATHEX: Energy event might change bourse’s course
The signs of more trade friction between Washington and Beijing inflicted losses on most stock markets, including Athinon Avenue, which on Tuesday lost some of the ground earned on Monday. Observers point to the upcoming energy summit in Athens this week, with the participation of foreign officials and the sector’s top companies, offering a potential boost, not only for energy stocks but also for the local market in general in the short term.
https://www.ekathimerini.com/economy/1285756/athex-energy-event-might-change-bourses-course
KATHIMERINI: Tensions remain despite the resignation of Hellenic Post’s CEO
TA NEA: The backstage of the shutdown of Hellenic Post’s branches: Private interests are behind the shutdown
EFIMERIDA TON SYNTAKTON: Deputy Prime Minister and Minister of State Hatzidakis knew all about the shutdown of Hellenic Post’s branches
RIZOSPASTIS: Upheaval in schools and universities due to tomorrow’s rallies
KONTRA NEWS: The revolt of New Democracy’s MPs brings about a government reshuffle
DIMOKRATIA: Those who were supposed to restructure the state were eating with golden spoons
NAFTEMPORIKI: VAT revenues spike
DRIVING THE DAY: MONEY TALKS
CENTER-RIGHT CIVIL WAR: For months, European Commission President Ursula von der Leyen’s fragile governing coalition has been fraying, with centrists and socialists alike complaining they’ve been sidelined. But that crisis has hit a new low as a fracture in her own European People’s Party (EPP) threatens to engulf budget talks today.
Cash critics: The Commission is holding discussions with MEPs after leading political groups warned they would not support the €2 trillion multi-year budget it has presented, known as the MFF, due to start in 2028. Lawmakers are furious about planned changes to regional cohesion and agricultural payments, and want the Berlaymont to back down.
Weber weighs in: Speaking to my colleague Max Griera, EPP President Manfred Weber — a key von der Leyen ally — said his group was objecting to ensure the budget “serves the needs of Europeans” and the threat to reject it outright was needed “to set the tone at an early stage so that our key demands are heard in constructive talks with the Commission.”
Trio of headaches: The Commission, Weber said, would have to find a solution to address three main priorities: “One, a strong role for our regions. Two, a Common Agricultural Policy that shows we have listened to our farmers. Three, the safeguards of the European Parliament’s role and powers. With a constructive approach from all ends, including with the support of the Council presidency, I am confident we can have the right basis to start the negotiations.”
Shot across the bow: In an interview with Playbook, Siegfried Mureșan, the lead EPP negotiator on the budget, warned that “what we are now seeing with this draft proposal of the Commission is a weakening of the additional priorities of the Union: cohesion policy, which has evolved into the Union’s main investment tool, and agriculture, which accounts for millions of jobs in the rural areas, for rural development, for food security.” Officials will have to revise the text, he said, because warm words and political promises won’t be enough.
Peace offering: “We have been listening and we are aware that there are three areas of concern for the Parliament and on these, we will constructively engage with them,” a Commission official told Playbook. Privately though, several staffers have fumed at the Parliament’s tactics after a string of bruising moves for von der Leyen and fears that key plans will be derailed, or that they’ll end up having to court votes from the far right.
And they’re not alone … one diplomat granted anonymity to speak to POLITICO said colleagues have been increasingly complaining that MEPs are “blocking everything” and “risking leaving our countries without a clear plan for investment.”
The stage is set for a showdown. Von der Leyen’s budget chief, Polish Commissioner Piotr Serafin, will meet with top brass from the Parliament and the Commission to try to do a deal at 5 p.m. in the Parliament today. If they can’t compromise, the Parliament is likely to pass a resolution on Nov. 12 rejecting key parts of the MFF.
MEPs are not backing down: “Together with the other pro-European groups, we are ready to reject the national plans in the next MFF,” Iratxe García Pérez, leader of the the Socialists and Democrats group (the EPP’s coalition partners), told Max. Re-skilling of workers, protecting people from economic shocks and bringing down house prices all need to be addressed to win her support, she said.
What about us? The right-wing European Conservatives and Reformists (ECR) and far-right Patriots for Europe and Europe of Sovereign Nations groups say they’ve been excluded from overseeing committee files related to the MFF. “This matter goes to the heart of the credibility and integrity of the ITRE Committee’s work,” Daniel Obajtek, the ECR’s coordinator on the industry committee, fumed in an email chain seen by Playbook. He’s calling for a formal vote at the next ITRE meeting on Nov. 5 — though insiders admit it’ll be mostly symbolic.
PLAYBOOK INTERVIEW — FILIP TUREK
CZECH CHANGEOVER: Previously one of Ukraine’s staunchest allies, Czechia could be on course to dial down its support for Kyiv under the new government being formed by presumptive PM Andrej Babiš. That’s according to Filip Turek, the controversial former Patriots MEP who looks set to become Prague’s new foreign minister and spoke to Playbook in his first international interview.
Shifting sands: “The new government will maintain NATO commitments and adherence to international law,” said Turek, who hails from the far-right Motorists party seen as key to Babiš’ coalition plans. “But it will prioritize diplomatic efforts to end the war in Ukraine and mitigate risks of conflict in Europe, shifting from military aid funded by the national budget to humanitarian support and focusing on Czech security needs.”
A change in tone? When it comes to Prague’s stance on Russia, the former race car driver went on, no immediate changes are planned — but “the broader focus on sovereignty and non-intervention suggests a cautious, interest-based approach.” The priority, Turek said, will be on “avoiding escalation that could endanger Czechia’s energy security or economic stability.” That’s a similar line to the one championed by countries like Hungary, which has said it is looking to Prague for an ally in slowing support to Ukraine.
Green red tape: According to Turek, at the European Council, the new government will focus on “showing that real change requires Brussels to prioritize factory floors and family budgets over ideological agendas that only accelerate the offshoring of sophisticated European production to China, where less efficient plants and long-distance shipping generate higher global emissions, paradoxically contradicting the very climate objectives Brussels claims to pursue.”
Further reading: More on how green car rules have helped Europe’s populists from Jordyn Dahl today.
Tough crowd: Turek’s appointment has faced opposition after claims he posted racist, sexist and homophobic messages on Facebook. He denies the allegations and is taking legal action. The Motorists’ Petr Macinka has also had a rough ride since being tipped as Babiš’ environment minister, for having described humans’ role in climate change as “pure propaganda.”
GROWING PAINS
SCORES ON THE DOORS: EU candidate countries were cheering and commiserating at Tuesday’s annual enlargement report cards — but few were celebrating as much as the Moldovans, who hosted a triumphant event at the Brussels Bozar gallery to thank officials and politicians for their support.
Warm words: In a speech, Enlargement Commissioner Marta Kos praised Chișinău’s newly reelected government for having “made the biggest progress from all the candidate countries.” Pro-EU President Maia Sandu said her country had “kept democracy alive” despite a barrage of “hybrid attacks,” and strengthened industries like winemaking despite pressure and trade embargoes by Russia.
About that wine … Playbook hears Moldova’s prize export went down very smoothly with guests. The hosts served sparkling Cricova Brut and Purcari’s Freedom Blend, a dry red made with grapes from Moldova, Georgia and Ukraine — all countries facing Russian aggression — sold to raise money for the Ukrainian war effort. In attendance: Commissioners Andrius Kubilius and Henna Virkkunen, DG MENA boss Stefano Sannino and a phalanx of MEPs. Even famous Belgian beer-lover Charles Michel was in the crowd.
SOUR GRAPES: Georgia, where the ruling party has arrested opposition leaders and journalists after a widely disputed election, was hit with a sternly worded verdict. “The Commission considers Georgia a candidate country in name only,” the report found, warning of “serious democratic backsliding marked by a rapid erosion of the rule of law and severe restrictions on fundamental rights.”
Trying Moutai instead: With even its own ambassador admitting the scale of the setback, as soon as the assessment was published the ruling Georgian Dream party issued a statement declaring it is strengthening ties with China.
REFORM UNDER FIRE: Ukraine, meanwhile, welcomed the news that it is on track to deliver on key pledges and become a member of the bloc, all while defending its very existence. But Kos also called on Kyiv to push ahead with strengthening internal rules to “prevent any risk of backsliding, in particular on anti-corruption.” That comes after public rows over key roles and agencies fighting graft.
Ex-prez says: In an interview out today, Jamie Dettmer speaks to former Ukrainian President Petro Poroshenko, who is facing trial on charges of corruption and treason, about the future of the country’s democracy.
THE BLOCKER: All the discussion of enlargement, however, will come up against a Viktor Orbán-shaped hurdle. The populist Hungarian prime minister is blocking Ukraine’s (and therefore Moldova’s) path to the EU. “We have done our part — now the EU must respond with the same resolve so that Moldova can move forward in the accession process,” Moldova’s EU Ambassador Daniela Morari told Playbook.
Plan on the horizon? “We can see more clearly than ever before that the Commission and EU leaders are looking at ways to bypass the veto,” said CEPS enlargement expert Tinatin Akhvlediani. “Nobody is talking about what it means, but they are looking.”
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CLIMATE CHANGE
WHILE YOU WERE SLEEPING: European governments struck a provisional deal to agree on a significantly weakened 2040 climate target in the early hours of this morning. Ministers will reconvene from 7:45 a.m. to reach a formal agreement. Zia Weise has the details for Pro subscribers.
NO TO DEINDUSTRIALIZATION: EU industry chief Stéphane Séjourné hit out at defeatism over the Continent’s manufacturing sectors. In comments to me last night, the French commissioner blasted officials and outsiders privately suggesting the bloc should accept heavy industry might be on its way out and should concentrate on greener sectors instead.
Security issue: “At best it is nonsense — at worst it looks like a white flag of surrender,” raged the top ally of President Emmanuel Macron. “What are their solutions then? Just count on the niceness of our global competitors to continue to function? There is no happy vassalage. I don’t know any power in the world which does not have a steal or a chemical industry. By protecting our industry, we are protecting our prosperity but also our security.”
RUSSIAN THREATS
DRONE FEARS: Brussels Airport was forced to close Tuesday night over drone sightings. While details are not yet clear, it’s the latest in a spate of incidents suspected to be Russian hybrid attacks.
Pointing fingers: One senior diplomat told Playbook that if confirmed to be linked to Moscow, the timing is particularly worrying given Belgium is currently weighing whether to support the use of immobilized Russian assets to guarantee a loan to Ukraine. “Drone rattling is one of Russia’s attempts to impact Belgium’s decision — every time the EU chooses not to escalate, Russia strikes back.”
Scoop: Two senior EU officials told my colleague Bjarke Smith-Meyer that Belgium, which hosts the bulk of the funds and is concerned about the risk of legal action, will hold talks with the Commission to try to resolve the issues on Friday.
CLOSE TO A CLIFF-EDGE: One of Russia’s most prominent dissidents, Mikhail Khodorkovsky, hosted a breakfast in Brussels on Tuesday and caught up with POLITICO’s Eva Hartog. The EU “thinks Ukraine can indefinitely act as a buffer between Russia and Europe. That’s not the case. If nothing changes, Ukraine will only be able to hold out until spring,” predicted the former Yukos oil magnate turned Putin critic.
Claiming sanctions have reached “the limit of their potential,” Khodorkovsky argued the only thing that can stop Vladimir Putin now is “his understanding that the West can pose a real military threat.” Khodorkovsky didn’t explicitly back the EU’s frozen assets plan, saying discussions have rightly been “careful” and the West has been “smart,” so far. “To show that the West does not respect private property rights is exactly what all dictators want,” he said.
MEDIA WATCH
PRESS ROOM DRAMA: Italian reporter Gabriele Nunziati was dismissed by news agency Agenzia Nova after asking the Commission whether Israel should pay for Gaza’s reconstruction — drawing a parallel with the EU’s calls for Russia to fund Ukraine’s recovery. The Oct. 13 exchange went viral on social media.
Difference of opinion: Nunziati told my colleague Max Griera he received “tense calls” from his superiors in the days following the briefing before being informed on Oct. 27 that his contract had been terminated. In a statement shared with my colleague Elena Giordano, Agenzia Nova said the question drew a false equivalence and demonstrated “a lack of understanding of the fundamental principles of international law.”
Press freedom concerns: The row comes amid growing questions over media freedom in Italy, which ranks 49th globally, according to Reporters Without Borders, the lowest in Western Europe. It comes on the heels of a journalist strike at Il Sole 24 Ore over editorial decisions and follows an attempted car bomb attack against investigative journalist Sigfrido Ranucci.
IN OTHER NEWS
WHAT BRUSSELS WILL BE TALKING ABOUT TODAY: Didier Reynders.
EU PARLIAMENT MOVES TO LET MOMS PROXY VOTE: The European Parliament’s Committee on Constitutional Affairs on Tuesday voted to allow lawmakers to delegate their vote to a colleague during and after pregnancy, as part of a push by President Roberta Metsola to improve conditions. Only one lawmaker voted against the measure: far-right Polish MEP Stanisław Tyszka, the co-chair of the Europe of Sovereign Nations group.
What’s next: The amendment to the European Electoral Act now needs to be approved unanimously by EU countries and ratified by national parliaments to go into effect.
GERMAN CENTER-RIGHT CHIEF IN EU PARLIAMENT ACCUSED OF FRAUD: Angelika Niebler, co-head of the powerful center-right German delegation in the European Parliament, is being investigated for misusing EU funds. She says the allegations by the European Public Prosecutor are “unfounded.” The legal affairs committee is studying whether to lift her immunity. Read more.
IT’S NOT A COIN, IT’S A LIFELINE: With Bulgaria set to adopt the euro from the end of the year, the EU is trying to reassure people that the shared currency means economic safety and security, rather than higher prices and inflation. Giovanna Faggionato has more.
TAKING THE SHEIN OFF: E-commerce giant Shein’s first brick-and-mortar store is set to open today in Paris, but the much-hyped opening is marred by backlash over the sale of childlike sex dolls on the platform, report Clea Caulcutt and Eliza Gkritsi.
BIG NIGHT FOR DEMS AS TRUMP BACKLASH BITES: Democratic socialist Zohran Mamdani is set to become New York City’s first Muslim mayor after winning the election overnight. Over in California, voters approved Gavin Newsom’s new congressional map that could give Democrats up to five more seats in next year’s midterms and up their chances of retaking the House. Alex Burns writes that the big takeaway of the night is that the Democrats are breaking with Bidenism and embracing disruption.