All posts tagged: Energy prices

Meloni presses von der Leyen for energy carveout in EU spending rules – POLITICO

Meloni presses von der Leyen for energy carveout in EU spending rules – POLITICO

Published by Sam Flores

Italy’s premier argued that in the same way that the stability agreement exempts defense expenditures from its calculation, energy-related costs should similarly not be taken into account. “We must have the political courage to recognize that today energy security is also a European strategic priority,” she insisted. Meloni added Rome would struggle to justify participation in the EU’s SAFE defense financing program if Brussels refuses similar flexibility for energy spending. Italy wants the bloc’s existing “national safeguard clause” — currently tied to defense investment — temporarily expanded to cover emergency energy measures as well. The Italian prime minister’s appeal comes at a fiscally fraught moment for Meloni. Last month the EU’s statistical body confirmed Rome’s 2025 budget deficit breached Brussels’ fiscal rules. The news came on the back of a major defeat for Meloni in a justice referendum, and will likely oblige the Italian government to limit expenditures ahead of a delicate election year, with her center-right coalition polling neck and neck with its center-left rivals. Since the Iran war erupted on Feb. 28 following …

Germany’s Merz booed at major trade union congress – POLITICO

Germany’s Merz booed at major trade union congress – POLITICO

Published by Sam Flores

Looking ahead, Merz called pension reform the “toughest nut to crack.” “None of this is malice on my part or on the part of the federal government,” he insisted. “It is demography and mathematics.” That line drew another wave of boos and whistles from the audience. The hostile reception comes as Merz’s popularity continues to crater. According to the latest monthly DeutschlandTrend survey published on May 7, just 13 percent of Germans say they are satisfied with the work of the coalition between Merz’s conservatives and the Social Democrats. The far-right Alternative for Germany (AfD) has meanwhile surged past Merz’s conservatives in several national polls, capitalizing on frustration over economic stagnation, soaring energy prices and unpopular reforms. The fallout from the Iran conflict and U.S. President Donald Trump’s tariff threats has only deepened Germany’s economic troubles, forcing the government to slash its economic forecasts. The pressure is expected to intensify ahead of key state elections in Eastern Germany in September that the AfD is projected to win. Merz nevertheless urged unions to work with his …

Eurozone growth limps on as Iran war fuels stagflation fears – POLITICO

Eurozone growth limps on as Iran war fuels stagflation fears – POLITICO

Published by Sam Flores

The number incorporated weaker than expected figures from France, where GDP was flat from the fourth quarter. But the region’s largest economy Germany performed better than feared, growing 0.3 percent, while growth in Italy and Spain slowed by less than forecast. The war — and the resulting surge in oil and gas prices — has sharply changed the economy’s trajectory. The German government has halved its growth forecast for this year to only 0.5 percent. The International Monetary Fund earlier this month downgraded its 2026 growth forecast for the eurozone to 1.1 percent, from a prior estimate of 1.3 percent. It warned that rising prices and weaker activity are pushing the region toward a more stagflationary environment. Inflation, by contrast, is on the way up, due to the surge in energy costs. The headline inflation rate jumped to 3.0 percent in April, Eurostat said in a separate release. Core inflation, which strips out volatile oil and food prices and is seen as a bellwether for underlying trends, eased to 2.1 percent from 2.2 previously, but …

Merz lashes out at Trump and Brussels as Germany’s economy falters – POLITICO

Merz lashes out at Trump and Brussels as Germany’s economy falters – POLITICO

Published by Sam Flores

Merz’s attacks on Brussels are part of a bid to placate German industry leaders, who blame excessive EU regulation for a loss of competitiveness. Four in five German firms complain that bureaucracy has increased over the past three years, according to a survey of 1,000 companies by the German Economic Institute. More than 90 percent want EU rules scaled back. “Only as a strong economic hub can we be a strong international player,” Stefan Berger, a German conservative MEP focused on the economy, told POLITICO. “In this situation, it makes sense to look to Brussels, scrutinize some existing regulations and cut through unnecessary red tape so that European companies can focus more on production and less on paperwork.” Merz’s attempts to pin the blame abroad have a great deal to do with his limited domestic options and sinking popularity. The chancellor this week, for the first time, fell to last place in polling firm INSA’s popularity ranking of Germany’s 20 most prominent politicians. Meanwhile, only 15 percent of Germans said they are satisfied with Merz’s …

Blame Berlin and Paris for red tape, not us  – POLITICO

Blame Berlin and Paris for red tape, not us  – POLITICO

Published by Sam Flores

Since the start of Ursula von der Leyen’s second mandate as Commission president, the EU executive has put forward 10 so-called omnibus proposals that reopen existing laws to get rid of anything deemed overly burdensome.   “We are determined to bring about change so that in Europe and in the member states we can more quickly and effectively create an environment where companies can grow and develop the global competitiveness they need,” von der Leyen said during a meeting with leading conservative politicians in Berlin on Monday. So far, EU decision-makers have agreed to reduce environmental disclosure obligations for companies, make it easier for small-scale farms to access EU money, and delay new requirements forcing companies to track and disclose where they source their raw materials. More omnibus proposals are expected later this year, including on energy and taxation. But the Commission also wants to rethink the lawmaking process itself, including by reducing the length of impact assessments and public consultation periods.   The plan to speed up lawmaking has alarmed civil society groups, trade unions, academics, …

Berlin turns up the heat – POLITICO

Berlin turns up the heat – POLITICO

Published by Sam Flores

Europe is staring down a familiar and unwelcome set of circumstances: rising energy prices, slowing growth and growing political pressure. As the fallout from the U.S.-Israeli war with Iran ripples through global markets, EU governments are scrambling to cushion the blow — with far fewer tools than they had when the full-scale Russian invasion of Ukraine triggered the last energy crisis. Zoya Sheftalovich is joined by Nick Vinocur to unpack what this new economic shock could mean — not just for households, but for Europe’s political center. Also on the pod: German conservatives turn up the heat on Ursula von der Leyen — and Belgium looks to keep the lights on in its shops a little longer. Got a question or a comment? Contact us on WhatsApp here or at +32 491 05 06 29. Source link

Trump’s Iran showdown is becoming Europe’s political nightmare – POLITICO

Trump’s Iran showdown is becoming Europe’s political nightmare – POLITICO

Published by Sam Flores

“Energy costs are cascading into food, transport and housing, hitting lower- and middle-income households hardest,” Seamus Boland, president of the European Economic and Social Committee, which brings together trade unions from across Europe and advises the European Commission on economic and labor policy, told POLITICO. “Politically, that creates space for distrust — not just of national governments, but of European institutions’ ability to shield citizens from external shocks. It risks accelerating support for more protectionist or inward-looking approaches.” France is the biggest prize. But it is not the signal in Europe that the center is crumbling. In Bulgaria, the April 20 victory of Kremlin-friendly ex-president Rumen Radev has set incumbents around Europe on edge. In Romania, a coalition crisis could soon sweep pro-EU Prime Minister Ilie Bolojan from power. In Germany, the far-right Alternative for Germany is eyeing gains in September’s Saxony-Anhalt state election, having already broken into parts of western Germany far from its traditional eastern power base. The Iran war will be in focus on Monday as deputy finance ministers from the EU’s …

29 leaders gathered in Cyprus. As usual, the summit was about one who didn’t. – POLITICO

29 leaders gathered in Cyprus. As usual, the summit was about one who didn’t. – POLITICO

Published by Sam Flores

Over dinner, leaders talked about how to make the EU’s barely used mutual defense clause — Article 42.7 — work in practice, while avoiding any suggestion it could replace NATO’s Article 5 security guarantee. That discussion comes at a sensitive moment for European capitals, which are trying to respond to growing uncertainty over Washington’s commitment to European security without sending the signal — either to the U.S. or to Russia — that they are undermining NATO themselves. Polish Prime Minister Donald Tusk was among those who came out strongly in favor of making Article 42.7 operational, according to a senior EU official, who added that Cypriot President Nikos Christodoulides presented ideas on the subject to the other leaders over dinner. On Friday, leaders turned to the bloc’s next seven-year budget. The debate has been sharpened by the economic pressure of the war and by calls for the EU to become more ambitious — and more independent from Washington. The EU budget amounts to around 1 percent of the bloc’s wealth, with capitals like Berlin opposing …

EU must stop being ‘distant observer’ in Middle East, Cyprus warns – POLITICO

EU must stop being ‘distant observer’ in Middle East, Cyprus warns – POLITICO

Published by Sam Flores

With oil and gas tankers stranded in the Strait of Hormuz and energy prices skyrocketing, European leaders have so far failed to find an agreement on how to help secure the strategic waterway. While Germany has indicated it could be ready to accept U.S. President Donald Trump’s demand for a maritime operation to reopen the strait, France insists that would only be acceptable in the context of a peace deal. “There are efforts to have the negotiations between the Iranian side, the Americans and so on — there are various efforts of mediation taking place in various conflicts. We want and we advocate for the EU to be a lot more present and a lot more visible,” Kombos said. Cyprus — which holds the six-month rotating presidency of the Council of the EU — convened talks Friday afternoon between the bloc’s leaders and those from Egypt, Lebanon, Syria, Jordan and the Gulf nations, the most significant multilateral summit since the start of the Iran war. However, relations with regional counterparts have been strained by their …

5 things to watch out for at EU’s crisis summit – POLITICO

5 things to watch out for at EU’s crisis summit – POLITICO

Published by Sam Flores

“The longer things go on, the less bold any changes to the budget will be,” said an EU diplomat, granted anonymity to speak frankly. “The clock is ticking.” If a leaders reach a deal on that timetable, it would be unusually fast by EU standards. Any breakthrough will depend on how much governments are willing to compromise. Talks on the budget are always tortuous, with wealthier governments in Northern Europe reluctant to pay more into the budget and skeptical about handing the European Commission more powers to impose taxes. Countries in Southern and Eastern Europe, by contrast, tend to back a bigger budget and broadly oppose cuts to farm subsidies and regional funding, traditionally the two biggest sections of the cash pot. To complicate matters further, the EU is due to start repaying €25 billion a year from 2028 on the joint debt it issued to cushion the economic fallout from the Covid pandemic. And there’s increasing pressure to connect the budget to geopolitics, with the Iran war potentially limiting how much the bloc will have …