Newsflash

EU proposes 'most ambitious ever' budget of two trillion euros

The European Commission has unveiled an unprecedented €2 trillion ($2.3 trillion) budget proposal for the period 2028-2034, aiming to bolster Europe's competitiveness and security amidst global challenges and Russian aggression. This ambitious financial plan seeks to strengthen the continent's economic resilience and strategic autonomy. However, Germany, Europe's largest economy, has swiftly rejected the proposal, deeming it unacceptable. The budget is designed to address the pressing needs of the European Union in an increasingly complex geopolitical landscape, where external threats and economic rivalries demand significant investment in defense, innovation, and infrastructure. The proposed budget reflects the EU's commitment to enhancing its global standing and ensuring the security and prosperity of its member states. The rejection by Germany highlights the potential obstacles and negotiations that lie ahead for the EU as it seeks to secure approval for this substantial financial plan. 💰🇪🇺

EU Commission throws weight behind Crete-Cyprus power cable

The European Commission is strongly backing the Crete-Cyprus electricity interconnection project, known as the Great Sea Interconnector (GSI), deeming it of the highest strategic importance for Europe. Commissioner Dan Jorgensen, responsible for energy and housing, has pledged full support for the project, which aims to enhance electricity interconnections, lower energy prices, and reduce dependence on Russian gas. The EU is committed to phasing out Russian gas imports by 2027, a goal that aligns with broader efforts to strengthen energy security and competitiveness.

The GSI project is crucial for integrating more renewables into the energy system and ending Cyprus' energy isolation. The Commission has already allocated €657 million from the Connecting Europe Facility (CEF) for the Cyprus-Crete segment of the interconnector and is actively assisting project promoters to ensure its realization. Despite challenges, including potential obstructions from Turkey, the EU remains dedicated to seeing the project through.

In addition to energy initiatives, the Commission is addressing the housing crisis, with Jorgensen being the first commissioner directly responsible for housing. He plans to introduce the first-ever European Affordable Housing Plan next year, aiming to ensure all Europeans have access to decent, healthy, and affordable homes. The plan will involve public consultations and collaboration with authorities at all governance levels to implement practical measures that improve people's lives. The EU's approach includes fostering good practices, increasing investments, and addressing issues like short-term rentals and student housing. Despite skepticism about the Green agenda, Jorgensen emphasizes that decarbonization is essential for affordability, competitiveness, and environmental sustainability, citing significant savings and economic growth achieved through clean energy investments. The EU's leadership in clean technologies and the global shift towards green energy underscore the urgency and opportunity in staying the course on decarbonization. 🏠🌍

What’s getting more expensive in Austria as inflation rises again?

In Austria, inflation is accelerating once again, with consumer prices in June 2025 rising by 3.3% compared to the same month last year, marking the highest rate since May 2024. This uptick reverses the previous month's downward trend, where inflation was at 2.9%. Several factors are driving this resurgence in price increases, notably fuel and food prices.

Fuel prices are on the rise despite a decrease in oil prices since April. This discrepancy is pushing inflation higher, as the usual dampening effect of lower oil prices on fuel costs is absent. Additionally, food prices are climbing, with significant increases in coffee (up 27%), apples (up 22%), and various meats and dairy products. Beef prices, in particular, are soaring due to a supply shortage across Europe, leading to record-high prices and potential price increases for other meats as consumers switch their purchases.

Austria remains one of the most expensive countries in the eurozone, with an inflation rate significantly higher than the eurozone average of 2%. The end of the government's electricity price brake and rising service sector prices, particularly in restaurants, are contributing to this trend. Experts predict that Austria's inflation will stabilize at an average of 3.1% for 2025, necessitating adaptation to higher prices across various sectors. 💸🛢️🍳

WSJ details alleged “bawdy” Trump letter in Epstein gift album

The Wall Street Journal has published details of a controversial letter allegedly penned by former President Donald Trump. The "bawdy" letter, reportedly bearing Trump's name and signature, was included in a 2003 birthday album compiled by Ghislaine Maxwell for Jeffrey Epstein. The letter, part of a collection of messages from Epstein's associates, features a typewritten dialogue between "Donald" and "Jeffrey," framed within the outline of a naked woman. The message concludes with a suggestive note: "Happy Birthday — and may every day be another wonderful secret."

Trump has vehemently denied writing the letter, calling it a fake and threatening legal action against the Wall Street Journal, News Corp, and Rupert Murdoch. He claimed that both he and White House Press Secretary Karoline Leavitt had informed the Journal's editor, Emma Tucker, about the letter's authenticity, and that Murdoch had promised to prevent its publication but lacked the power to do so. Trump accused the outlet of publishing "fake news" and vowed to sue.

The letter's emergence follows Trump's recent dismissive comments about renewed public interest in Epstein's case, which he described as "pretty boring stuff." The Justice Department has since acknowledged that Epstein did not maintain a "client list" and will not release further files from the sex trafficking investigation. Epstein, a convicted sex offender and financier, died in federal custody in 2019, while his associate, Ghislaine Maxwell, is serving a 20-year prison sentence for her role in the crimes. 📜📰👀

Latvia's largest state companies will not go on exchange anytime soon

The Latvian government has committed to promoting state and local government companies on the capital market, as outlined in the Government Declaration. This initiative aims to bolster Latvia's underdeveloped capital market, which currently stands at approximately €500 million, or 1.4% of the country's GDP. Finance Minister Ašeradens emphasized that decisions regarding which companies should participate in the stock market will be made on a case-by-case basis, considering political compromises and business plans.

Potential candidates for stock market listing include telecommunications companies LMT and Tet, which might eventually merge and list on the exchange. However, the most likely candidate is Rīgas ūdens, the Riga water supplier, due to its strong performance and market readiness. The minister acknowledged that political decisions are crucial for advancing this agenda.

Economist Andris Strazds from the Bank of Latvia highlighted the dire state of Latvia's capital market, stressing the need for significant growth to attract global investors. He suggested that the market size should increase nearly tenfold to become noticeable on the international stage. This growth is essential for fostering the development of private companies and startups, providing them with opportunities for initial public offerings (IPOs) and further expansion. The Finance Minister concurred, identifying the development of the capital market as a key priority for the coming years. 📈🏛️

Ryanair's exit leaves two Spanish airports in the doldrums

Ryanair's decision to withdraw from two smaller regional Spanish airports, Jerez and Valladolid, has significantly impacted passenger numbers and regional connectivity. The budget airline cited high airport fees from operator Aena as the primary reason for its withdrawal, which included the cancellation of 12 routes and 800,000 seats across Spain. This move has led to a drastic decrease in passengers at both airports, with Valladolid seeing a 56,000 passenger drop and Jerez experiencing an 11.6% decline in the first half of 2025 compared to the previous year.

The airline's withdrawal has exacerbated travel inequality in Spain, as it has added 1.5 million seats to larger airports like Madrid, Málaga, and Alicante, further concentrating tourism in urban areas. This trend contrasts with the Spanish government's recent campaign to promote inland tourism, highlighting the lack of international flights to smaller airports. Despite the cuts, Ryanair remains the dominant carrier in Spain, transporting 32.64 million passengers in the first half of 2025, a 6.6% increase from the previous year.

The dispute between Ryanair and Aena over airport fees continues, with Ryanair criticizing Aena's planned investments and fee hikes. Aena's upcoming fee structure and investment program, set to run from 2027 to 2031, aims to expand Barcelona El Prat and Madrid’s Barajas airports, primarily funded through increased airline fees. Ryanair's CEO, Michael O'Leary, has expressed concerns that Aena's investments may not align with airlines' needs, potentially leading to further route cuts at smaller airports. 🛬️💸

Immigrants in Denmark have ‘poor access’ to high-paying sectors

A comprehensive international study has revealed significant wage disparities between immigrants and native-born workers across nine countries, including Denmark, Canada, France, Germany, the Netherlands, Norway, Spain, Sweden, and the United States. Analyzing data from 13.5 million employees and employers, the study found that immigrants, on average, earn 17.9% less than their native-born counterparts. The primary factor contributing to this wage gap is the concentration of immigrants in low-paying sectors and companies, with only a 4.6% difference attributed to lower pay for the same work.

Denmark, with a wage disparity of 9.2% between foreign nationals and Danes, performs better than the average but still faces a notable wage gap. The study highlights that immigrants, particularly those from sub-Saharan Africa, experience the largest wage gaps, while immigrants from Europe, North America, and other Western countries face smaller disparities. For second-generation immigrants in six of the studied countries, including Denmark, the wage gap is reduced to an average of 5.7%, but it remains significant for those with African and Middle Eastern backgrounds.

The findings underscore the structural barriers preventing immigrants and their children from accessing high-paying sectors and companies, despite Denmark's relatively high employment rates among immigrants. To address these issues, experts recommend focusing integration policies on removing barriers through upskilling, language training, job search support, recognition of foreign qualifications, and combating discrimination in hiring and promotion. This approach aims to foster a more inclusive labor market and promote equal opportunities for all. 🌍💼

US lawmakers launch bipartisan effort to block Turkey’s return to F-35 program

A bipartisan coalition in the U.S. Congress is actively working to prevent Turkey from rejoining the F-35 fighter jet program and lifting CAATSA sanctions. Led by Representatives Chris Pappas, Gus Bilirakis, Nicole Malliotakis, and Dina Titus, the initiative seeks to garner broad support before addressing Secretary of State Marco Rubio. The effort is backed by a diverse group of influential organizations, including the American Jewish Committee, Armenian National Committee of America, and Hellenic American Leadership Council, among others.

The push comes in response to Turkish President Recep Tayyip Erdogan's recent confirmation that technical talks with the U.S. to re-enter the F-35 program have commenced. The lawmakers' letter emphasizes Turkey's ongoing violations of U.S. law and national security policy, particularly its acquisition of the Russian S-400 missile system, which triggered CAATSA sanctions. While the White House has the authority to lift these sanctions, Turkey's case is further complicated by Section 1245 of the 2020 National Defense Authorization Act. This provision explicitly prohibits F-35 transfers to Turkey unless there is a significant change in its status regarding the S-400 system, making any reversal a complex and contentious process.

Why are Italy's left-wing parties struggling to win support?

In Italy, nearly three years after Giorgia Meloni's far-right Brothers of Italy party secured a historic election victory, it remains the most popular political force, with a 29% approval rating—higher than its 26% in the 2022 vote. Prime Minister Meloni herself enjoys a 45% approval rating, leading the pack among party leaders. Meanwhile, the traditional left is struggling, with populist and far-right parties gaining ground across Europe, including Italy.

The opposition in Italy is primarily composed of the centre-left Democratic Party (PD), polling at around 22%, and the Five Star Movement, with about 13%. Both parties have faced criticism for failing to address social issues and disappointing voters during their time in government. The PD, under new leader Elly Schlein, has shifted further left, advocating for a national minimum wage and increased spending on education and healthcare. The Five Star Movement, led by former premier Giuseppe Conte, is also pushing for a minimum wage and basic income for the vulnerable.

Both the PD and Five Star have attempted to mobilize public concern over rising defense budgets and Israel's offensive in Gaza, but internal divisions and strategic missteps have weakened their opposition to Meloni's government. Despite their differences, the PD and Five Star have collaborated in regional elections and referendums, with Schlein insisting that the PD is making progress and winning elections.

Analysts and activists alike point to a disconnect between the left and the masses, with the left seen as "broken" and "disconnected from the masses" in a country grappling with stagnant salaries and high poverty rates. Some activists argue that the big unions and left-wing parties have abandoned their roles, leaving room for grassroots efforts to improve workers' conditions. The political landscape in Italy remains dynamic, with the far-right maintaining a stronghold while the left seeks to regroup and reconnect with voters. 🇮🇹📉

Finnish police uncover criminal drug smuggling operation

Finnish authorities have uncovered a sophisticated criminal network responsible for smuggling significant quantities of cocaine into the country, including one operation where a vehicle carrying a child under three was used. The investigation, which began with arrests in March, has led to the seizure of at least 15 kilograms of cocaine, around 30 kilograms of marijuana, and over 100,000 euros in counterfeit cash. The group, active since at least August 2024, operated out of a rented apartment in Helsinki's Lauttasaari district and involved suspects from multiple European countries, including Finland, Kosovo, Albania, and Estonia.

The operation was notable for the use of high-quality counterfeit euros, which initially went undetected by investigators. The group is suspected of laundering drug proceeds to countries like Kosovo and Belgium, transferring hundreds of thousands of euros abroad. The investigation has highlighted a concerning trend of increased cocaine trafficking and consumption in Finland, with street prices reaching up to 100 euros per gram. Thirteen individuals are suspected in the case, with five currently in pretrial detention. Many of the key suspects are reportedly related, indicating a tightly-knit criminal network. 🚔💰💨

French prosecutors demand Fiat face trial in diesel scandal

The Paris prosecutors' office has demanded a trial against Fiat, accusing the Italian automaker of aggravated fraud. This marks the fourth such case in France against major car manufacturers, following previous legal actions against Volkswagen, Peugeot-Citroen, and Renault. Fiat is alleged to have sold vehicles equipped with diesel engines that frequently exceeded regulatory limits for nitrogen oxide emissions, a substance highly dangerous to human health, between 2014 and 2017. This scandal has had far-reaching impacts on the global automotive industry since Volkswagen's admission in September 2015 of tampering with millions of diesel vehicles to pass pollution tests. A German court recently convicted and sentenced four former Volkswagen managers in connection with the scandal. The French case against Volkswagen revealed that nearly one million customers had to cover the costs of servicing and repairs due to the emissions breach. 🚘💨

US software giant Oracle to invest $2bn in Germany to meet AI demand

Oracle, a leading U.S. software company, has announced a substantial $2 billion investment in Germany over the next five years to cater to the surging demand for artificial intelligence (AI) applications and cloud infrastructure. The majority of this investment will be directed towards the Rhine-Main region, with Frankfurt serving as the focal point for expanding Oracle’s cloud infrastructure and enhancing AI capabilities.

Germany's Digital Minister, Karsten Wildberger, hailed this strategic investment as a testament to the country's appeal for digital innovation and investment. He emphasized that the growing need for cloud solutions indicates the successful progression of Germany's digital transformation. This investment is poised to bolster the nation's digital infrastructure, enabling businesses and public entities to leverage cutting-edge AI and cloud technologies. Wildberger expressed his commitment to advancing Germany's position as a premier digital hub in Europe, in collaboration with the business sector.

Thorsten Herrmann, senior vice president at Oracle Germany, highlighted the company's role in facilitating AI and cloud transformation for organizations across Germany. This initiative aligns with previous investments by major cloud providers like Amazon Web Services (AWS), Google, and Microsoft in German data centers. The Rhine-Main region's attractiveness is further amplified by Frankfurt's status as home to DE-CIX, one of the world's largest internet hubs, ensuring high-speed data transmission and minimal latency. This investment underscores Germany's growing importance in the global digital landscape. 🌐💻

'We owe a lot to them': Spain's PM highlights immigration benefits

Spanish Prime Minister Pedro Sánchez, during a joint press conference with Mauritania's President Mohamed Ould Cheikh El Ghazouani, emphasized the significant contributions of migrants to Spain's economic progress and development. He called for enhanced cooperation with countries like Mauritania to ensure safe, organized, and mutually beneficial migration. This statement comes amidst recent tensions in the Spanish town of Torre Pacheco, where migrants have faced violence, and far-right groups have advocated for deportations.

Sánchez's remarks underscore Spain's ongoing efforts to manage migration flows, particularly from West Africa, where thousands of migrants risk their lives attempting the perilous sea journey to Europe. In 2024 alone, nearly 10,500 people died at sea, and over 46,800 African migrants arrived in Spain's Canary Islands, although the numbers have since decreased. The Spanish leader has previously visited West African nations, including Mauritania, to promote "circular migration," aiming to attract trained workers essential for Spain's economy.

During the visit, Spanish and Mauritanian officials signed four agreements covering transport, infrastructure, welfare, cybersecurity, and national parks, reflecting the deepening cooperation between the two nations. This collaboration is crucial for addressing migration challenges and fostering economic development in both regions. 🌍🤝

Finns trust politicians less, survey finds

A recent survey by Norstat reveals a significant decline in trust among Finland's population towards politicians. Only 1% of respondents expressed "very high" trust in political leaders, while a mere 10% reported strong trust. Nearly half of the participants indicated little to no confidence in politicians. This sentiment is mirrored in neighboring Norway but contrasts with higher trust levels observed in Sweden and Denmark, where 22% of respondents described their trust in politicians as either high or very high. While Finland's trust levels are moderate compared to some other European countries, such as Latvia and Lithuania, where about half of citizens express no trust in politicians, the trend in Finland is concerning.

The survey, part of the Norstat Quarterly Data series, was conducted across 16 European countries, with responses from 1,016 Finnish residents and over 4,000 people across the Nordics. The data, weighted by gender, age, and region, reflects a notable decline in trust, particularly among those over 60. In 2023, 16% of Finns expressed very high trust in politicians, but this figure has since decreased significantly. This downward trend underscores growing disillusionment with political leadership in Finland. 📉🇫🇮

Polish Supreme Court chief accuses government of crime over publication of election resolution

Poland's political landscape is embroiled in a deepening rule-of-law crisis, as the current government and the Supreme Court, led by Chief Justice Małgorzata Manowska, clash over the legitimacy of the presidential election results. The Supreme Court's chamber of extraordinary oversight and public affairs, established under the former Law and Justice (PiS) administration, declared Karol Nawrocki, the PiS-supported candidate, the winner of the recent presidential election. However, the current government, led by Prime Minister Donald Tusk, disputes the chamber's legitimacy, citing European court rulings that question its legal standing.

In a significant escalation, the government added an annotation to the official publication of the election resolution, stating that the Supreme Court chamber is not recognized as a legitimate court. Manowska has now notified prosecutors of a suspected crime, arguing that this annotation constitutes unlawful interference by the executive branch and an attack on the Supreme Court's independence. The Supreme Court contends that the annotation violates the law governing the publication of such acts and amounts to a criminal abuse of power.

This development follows a request by Justice Minister Adam Bodnar to lift Manowska's legal immunity, allowing her to face charges of alleged abuse of power. Manowska, appointed by the former PiS-aligned President Andrzej Duda, has been a vocal critic of the new ruling coalition, accusing it of illegal actions against PiS lawmakers. The ongoing conflict highlights the deep divisions within Poland's political and judicial systems, with both sides accusing the other of undermining the rule of law. The situation underscores the urgent need for resolution to prevent further erosion of democratic institutions in Poland.

Danish police find cocaine in banana boxes at 12 different supermarkets

A significant drug trafficking operation involving banana shipments has been uncovered in Denmark, with cocaine discovered in 12 Coop supermarkets across North Zealand and Central and West Zealand. The Danish National Unit for Special Crime (NSK) is leading the investigation, which involves a "significant quantity" of cocaine, although the exact amount remains undisclosed. The NSK is collaborating with Europol to tackle this cross-border crime.

The implicated supermarkets are part of the Coop retail chain, which includes SuperBrugsen, Kvickly, Brugsen, and 365Discount. One of the affected stores is the Kvickly in Kalundborg. Additionally, a Coop employee was detained after one kilogram of cocaine was found in his car in Højby, though the connection to the broader case is yet to be confirmed. This incident highlights a recurring method of smuggling cocaine from South America to Europe, hidden among banana shipments. Similar discoveries have been made in Germany and Norway in recent years. 🍌🚔

Latvian state-owned companies to buy out Telia shares in Tet, LMT

Latvia's Cabinet of Ministers has authorized state-owned companies Latvenergo and the Latvian State Radio and Television Centre (LVRTC) to acquire the stakes held by Swedish telecommunications company Telia in Tet and Latvian Mobile Telephone (LMT). This decision follows negotiations led by the Economics Ministry, with the goal of enhancing the companies' export orientation and aligning their development strategies with national interests. The potential deal, valued at hundreds of millions of euros, aims to address differing visions between Latvia and Telia, with Latvia focusing on technology and exports, while Telia prioritized the domestic market.

The acquisition is expected to streamline the governance of Tet and LMT, which have been hindered by a complex ownership structure involving multiple shareholders. Latvenergo and LVRTC are well-positioned to drive this transformation, with LVRTC boasting a significant project portfolio and a strong team of specialists. The deal also aligns with Latvia's broader goals of advancing IT, communications services, infrastructure, data services, and innovation. While a merger between the two firms is not imminent, the acquisition sets the stage for potential future collaborations and a more unified approach to technological development in Latvia. The process is expected to move forward swiftly, with updates to be provided by Economics Minister Viktors Valainis in the near future. 📶💡

Today in Germany: A roundup of the latest news on Thursday

The European Union's proposed €2 trillion long-term budget, aimed at bolstering security and competitiveness, has faced immediate opposition from Germany, the bloc's largest member. The budget, spanning 2028-2034, includes significant allocations for defense, space, and Ukraine's reconstruction, but Germany argues that the increase is untenable given national budget consolidation efforts. Additionally, farm unions have criticized proposed reforms to agriculture subsidies. The budget also faces criticism from EU lawmakers who believe it lacks sufficient funding for climate adaptation and agriculture.

Meanwhile, German Chancellor Friedrich Merz is set to visit London to sign a "friendship treaty" with Prime Minister Keir Starmer, strengthening post-Brexit ties and defense cooperation. The treaty includes a mutual defense pact, reflecting shared security concerns. This visit follows a state visit by French President Emmanuel Macron, signaling improved relations between Britain and its European neighbors.

In domestic news, Berlin has implemented a ban on knives and other weapons on public transport, aiming to reduce violent crime. The city's interior senator advocates for a nationwide extension of this ban. Additionally, the Bavarian state government has proposed abolishing its annual climate report, citing bureaucracy reduction, a move criticized by Green party members for neglecting climate protection efforts. In a separate development, German Finance Minister Lars Klingbeil has reaffirmed his support for an international minimum tax for large corporations, despite U.S. resistance and differing views within the German government. 🇪🇺🇩🇪🇬🇧

PM Orpo criticises proposal for massive EU budget increase

Finnish Prime Minister Petteri Orpo has expressed strong reservations about the European Commission's proposed €2 trillion EU budget for 2028–2034, deeming it excessively high. The current budget for 2021–2027 stands at approximately €1.2 trillion, making the new proposal a significant increase. Orpo emphasized that while the EU must support Ukraine and bolster defense, the budget should not compromise Finland's essential expenditures. He also opposed the proposed crisis instrument, which could provide loan-based support to member states during special crises, citing concerns about "job debt."

Orpo acknowledged that Finland's membership fees will likely rise but stressed the importance of directing funds towards defense and maintaining Finland's priorities. The EU Commission's proposal allocates €131 billion for defense and space programs, a fivefold increase from current levels, and includes a €100 billion fund to support Ukraine. While Orpo supports these initiatives, he insists that they should not overshadow Finland's own critical needs.

The EU budget, primarily funded by member states' contributions, has seen Finland as a net contributor since 2001. In 2023, Finland paid around €700 million to the EU, with most funds received supporting agriculture and rural development. However, the European Commission's plan to cut agricultural policy funding by up to 20% has drawn strong criticism from Finland's Central Union of Agricultural Producers and Forest Owners (MTK), which views the proposal as a betrayal of promises made during the strategic dialogue. The MTK board has urged the Finnish government to advocate for a revision of the funding model, highlighting the uncertainty faced by EU farmers. 🇫🇮💸

The EU Commission's proposal will now undergo scrutiny by member states and the European Parliament, requiring approval from all 27 EU member states and the European Parliament. Several Finnish MEPs have also criticized the proposal, expressing concerns about potential decreases in Finland's net returns and the need for a sustainable funding model.

Cypriots fear tariffs will hurt them

The European Union is preparing to impose tariffs on over $100 billion worth of American goods, including planes, cars, bourbon, and medical devices, if trade negotiations with the U.S. under President Donald Trump falter. While Brussels hopes for a diplomatic resolution, it is gearing up for a potential tariff confrontation. This situation is particularly concerning for Cyprus, as the tariffs could significantly impact the island nation's economy.

If the EU tariffs are implemented, Cypriot businesses may face higher costs for imported American machinery, technology, and medical supplies. Consumer goods like U.S. wine, chemicals, plastics, and electrical products could also become more expensive, affecting both local businesses and consumers. The increased costs and potential supply chain disruptions could lead to higher prices on store shelves and delays in obtaining necessary goods. Additionally, tourists visiting Cyprus may experience the economic ripple effects, further straining the local economy.

Cypriot importers, especially those specializing in U.S. goods, are closely monitoring the situation. A Limassol-based importer of American construction equipment expressed concern, stating that a tariff war would disproportionately affect small businesses. The importer emphasized that the potential tariffs are not just political maneuvers but have real, tangible impacts on their operations and financial stability. The uncertainty surrounding the trade talks has created a sense of unease among Cypriot businesses, as they brace for potential economic challenges ahead. 🇨🇾💼