Newsflash

EU halts retaliatory tariffs on US goods after deal with Washington

The European Union has temporarily suspended €93 billion in retaliatory tariffs on U.S. goods, following a last-minute agreement with Washington. This move prevents an escalating trade dispute between the two economic powerhouses. The EU had planned to impose these tariffs on a wide range of U.S. exports, including soybeans, aircraft, cars, and whisky, in response to potential trade tensions. The suspension comes after EU Commission President Ursula von der Leyen and U.S. President Donald Trump reached a framework accord on July 27, just days before a critical August 1 deadline for imposing steep tariffs.

Under the agreement, EU exports will face a 15% tariff starting August 8, which is higher than pre-Trump administration levels but significantly lower than the previously threatened 30%. Both sides are now working to finalize the details of the leaders' agreement, with the EU official expressing optimism about providing more specifics soon. However, the EU has made it clear that it can reinstate the suspended tariffs if negotiations falter or if unforeseen issues arise. This strategic pause in tariffs aims to foster a more stable trade environment while both parties continue to negotiate the finer points of their agreement. 🇪🇺🇺🇸

German far-right MEP's former aide goes on trial over China spy charges

In Dresden, a high-profile trial began involving two individuals accused of spying for China, including Jian Guo, a former aide to far-right German MEP Maximilian Krah. Guo, a German national, is alleged to have worked for Chinese intelligence since 2002, passing over 500 documents to Beijing, some highly sensitive, while employed in Krah's Brussels office between 2019 and 2024. The charges also include gathering intelligence on leading AfD politicians and spying on Chinese dissidents in Germany. Guo allegedly posed as a critic of the Chinese government on social media to infiltrate opposition circles. The second defendant, Yaqi X., a Chinese national, is accused of spying on German defense companies, particularly targeting arms giant Rheinmetall. Prosecutors described the case as unprecedented in terms of Chinese espionage activity in Germany, highlighting extensive interests in political, military, and economic matters. If convicted, Guo faces up to 10 years in jail, while Yaqi X. could be imprisoned for up to five years. The trial, expected to last until late September, could further embarrass the AfD if details of Guo's alleged spying on the party become public. Krah, who initially faced controversy for comments downplaying Nazi atrocities, has been called to testify and is also under investigation for money laundering and corruption. 🇩🇪🕵️‍♂️🇨🇳

'Food shortage is coming' — experts warn Russia's war on inflation risks Soviet-style economy collapse

Russia is grappling with soaring inflation and is preparing to implement price caps on essential food items, a move that economists warn could lead to Soviet-style economic collapse. The Agriculture and Industry and Trade Ministries are drafting amendments to regulate prices on vegetables, dairy, and poultry, with the law expected to take effect in March 2026. While this measure aims to curb inflation, experts caution that it may result in food shortages, long queues, and public discontent, reminiscent of the Soviet era's central planning failures.

Under the proposed regulations, 80-90% of food production would be sold through long-term contracts at fixed prices or within government-mandated ranges. However, some producers are already seeking ways to circumvent these controls, signaling potential resistance. The move comes as food prices continue to rise, with inflation becoming a politically sensitive issue. A recent poll indicated that 58% of Russians are most concerned about rising prices, overshadowing worries about the war in Ukraine.

Economists argue that this shift towards a command economy marks a significant departure from market mechanisms, making food production particularly vulnerable due to its dependence on seasonal changes and volatile input costs. The return to price planning could recreate the notorious problems of the Soviet economy, including shortages and state control over essential goods. This situation poses serious risks to regime stability, as dysfunction in essential services like food distribution can fuel social unrest.

The Kremlin's decision to pursue price caps reflects anxiety over falling wages and stagnant growth, aiming to curb potential social discontent. However, experts believe that central planning will exacerbate economic issues rather than resolve them. The fundamental imbalance between Russia's population needs and its agricultural capacity to meet them will likely deepen the crisis if not addressed properly. Without adequate subsidies, producers may go bankrupt, leading to a collapse in production and an escalating food crisis. The long-term viability of this approach remains uncertain, but the immediate political payoff for the Kremlin is evident. 🍞💸

'Contradictions in objectives' of Chinese Studies Dept & what China would like UK schools to project

A recent report by UK-China Transparency (UKCT) has exposed significant issues within the UK's academic institutions, particularly in the field of Chinese Studies. The report highlights ongoing surveillance and intimidation tactics employed by the Chinese government, targeting professors and students. This pressure aims to suppress critical views of China and promote a favorable image of the country. The report suggests that these actions create an environment of self-censorship and conformity, stifling academic freedom and open discourse. The findings underscore the complex and often contradictory objectives faced by those involved in Chinese Studies, as they navigate between academic integrity and political pressures. 📚🔍

'No other choice' — Syrskyi says Ukraine must mobilize to counter growing Russian forces

Ukraine's top military commander, Oleksandr Syrskyi, has issued a stark warning about the escalating Russian military buildup. Syrskyi revealed that Russia is rapidly mobilizing, aiming to form 10 new military divisions by year's end, with two already established. Despite suffering significant losses—over 33,200 personnel in July alone and more than a million since the full-scale invasion began—Russia is adding approximately 9,000 troops monthly. In response, Syrskyi emphasized the urgent need for Ukraine to intensify its mobilization efforts, enhance combat training, and bolster its unmanned military capabilities. He also highlighted ongoing reforms within Ukraine's military to improve coordination and effectiveness on the battlefield. Syrskyi's message is clear: Ukraine must act decisively to counter the growing Russian threat and prevent further advances. 🇺🇦💥

Russia pounds important logistics hub in Kharkiv with drones

In a devastating assault, the Russian army targeted the city of Lozova in Ukraine's Kharkiv region, resulting in one fatality and multiple injuries, including two children. The local mayor, Serhii Zelenskiy, described the attack as the "most massive" since the war began. The strike damaged critical infrastructure, high-rise buildings, and private properties, highlighting the strategic importance of Lozova, which hosts a vital railway junction crucial for local and front-line supply routes to the Donbas region. Emergency services are actively responding to the aftermath, assessing the damage and aiding the injured. 🇺🇦💥🚊

Lithuania requests NATO help boost its air defenses after second drone crosses border

Lithuania is urgently seeking NATO's assistance to bolster its air defenses following an incident where a drone carrying 2 kilograms of explosives infiltrated the country from Belarus and crashed in a military training area. Defense Minister Dovilė Šakalienė and Foreign Minister Kęstutis Budrys have jointly written to NATO Secretary-General Mark Rutte, requesting the deployment of advanced, even experimental, air defense capabilities to counter such threats. The ministers emphasized that similar incidents are expected to persist as long as Russia's conflict with Ukraine continues, necessitating proactive measures to ensure Lithuania's security. 🛡️🇱🇹

US investors interested in Bulgaria gas storage site

American investors, backed by a former campaign manager of U.S. President Donald Trump, are exploring an opportunity to invest in Bulgaria's state-owned underground gas storage facility, primarily filled with Russian natural gas. The group, led by Florida financier Stephen P. Lynch and investor Fei Wang, is eyeing a multi-million-euro government initiative to double the capacity of Bulgaria’s sole underground gas storage site, Chiren. With the support of Brad Parscale, who worked on Trump’s 2016 and 2020 campaigns, the investors aim to leverage the expanded storage capacity to establish Bulgaria as a regional gas hub, serving parts of Eastern Europe.

The strategic importance of storage sites in the gas industry cannot be overstated. They enable operators to manage seasonal demand fluctuations and capitalize on price variations by purchasing gas when prices are low and releasing it when prices rise. Regardless of U.S. investment, Chiren is poised to play a pivotal role in the region's energy dynamics. As countries like Greece, Serbia, Hungary, and others in Eastern Europe weigh their options between continuing Russian gas imports and diversifying their suppliers, including the United States, the Chiren storage site could become a linchpin in the evolving energy landscape. 💰💨

Ukraine: Several Dead in Strikes on Northeast Region and Railway Infrastructures

In a recent escalation of hostilities, Russian strikes overnight targeted the Kharkiv region in northeastern Ukraine, resulting in at least three fatalities and twelve injuries. Among the damaged sites were critical railway infrastructures, notably Lozova station. The attack claimed the life of a train driver and left four railway workers injured, as confirmed by the national rail company, Ukrzaliznytsia. The strikes underscore the ongoing conflict and the deliberate targeting of civilian and strategic infrastructure. 🚂💥

Turkish parliamentary committee begins work on PKK peace initiative

A newly formed parliamentary committee in Turkey has begun its work on a peace initiative with the Kurdistan Workers’ Party (PKK), marking a significant step toward ending a decades-long insurgency. The 51-member committee, representing most major parties, is tasked with proposing and overseeing legal and political reforms to advance the peace process. This initiative follows the PKK’s decision to disband and lay down its arms, with fighters beginning to disarm in a symbolic ceremony in northern Iraq last month.

Parliament Speaker Numan Kurtulmus hailed the committee’s launch as a "historic turning point," emphasizing the courage and will to strengthen social integration and repair the future. The committee is expected to decide on its official name and outline its procedures during its inaugural meeting. The PKK’s decision to renounce armed conflict came after its leader, Abdullah Ocalan, urged the group to disband and disarm. The conflict, which has claimed tens of thousands of lives, has been ongoing since 1984, with the PKK initially seeking a Kurdish state and later advocating for autonomy and rights within Turkey. Previous peace efforts have failed, most recently in 2015. The committee’s work is crucial for achieving a lasting resolution to the long-standing conflict. 🇹🇷🤝

Lithuania Seeks NATO Support After Russian Drone Breach

Lithuania's Foreign Minister, Kestutis Budrys, has called for urgent action from NATO to bolster the country's air defense capabilities following a recent drone incursion. The drone, which violated Lithuanian airspace on July 28, was spotted in Vilnius and later found at a military training facility on August 1. The device was equipped with an explosive charge, which Lithuanian army specialists successfully defused. While the drone's entry into Lithuanian territory is believed to have been unintentional, Budrys emphasized the growing threat, noting that this is the second such incident in less than a month. Similar airspace violations have been reported by other NATO allies.

Budrys holds Belarus accountable for preventing such incidents and warns that if Belarus fails to take adequate measures, Lithuania will respond with political and other countermeasures. The call for enhanced air defense comes amidst heightened tensions and a series of airspace violations, underscoring the need for robust security measures to safeguard Lithuania's sovereignty. 🛸💥

Over $1 billion secured for US weapons via NATO program, Zelensky says

In a significant boost to Ukraine’s defense capabilities, European NATO partners have pledged over $1 billion in just two days to purchase U.S.-made weapons for Ukraine. This funding is part of a new NATO initiative that enables member countries to finance high-priority U.S. weapons deliveries through NATO's Support and Procurement Agency (NSPA). The program, launched following the NATO Summit in July, aims to expedite arms procurement for Kyiv by sourcing equipment directly from the U.S. market.

Ukrainian President Volodymyr Zelenskyy highlighted the success of the initiative in a conversation with NATO Secretary-General Mark Rutte, noting that the swift mobilization of funds demonstrates the effectiveness of the NATO Security Assistance and Training for Ukraine (NSATU) program. The funding will support Ukraine’s defense against ongoing Russian attacks on cities like Kharkiv and bolster military and diplomatic support for the country. 🇺🇦💥

Key contributors include Sweden, Norway, and Denmark, which collectively pledged $500 million, and the Netherlands, which committed approximately $579 million. The initiative, announced by U.S. President Donald Trump, facilitates the acquisition of critical defense systems, missiles, and ammunition, ensuring Ukraine’s ability to defend itself and work towards a just and lasting peace. The swift allocation of funds underscores the urgency and importance of supporting Ukraine’s defense efforts.

Lithuania urges NATO to boost air defences after Russian drone incident

Lithuania has urgently appealed to NATO for enhanced air defense support following a recent incident involving a Russian drone carrying explosives that infiltrated its airspace. The drone, discovered in a military training area near Vilnius, was successfully neutralized by Lithuanian forces. Foreign Minister Kestutis Budrys and Defense Minister Dovile Sakaliene jointly requested immediate measures from NATO to bolster Lithuania's air defense capabilities, citing the growing threat in the region.

The drone, believed to be a Russian-made Gerbera model, was spotted over Vilnius before being found in the military training area. Prosecutor-General Nida Grunskiene confirmed that the drone carried an explosive device, which was safely neutralized. While the primary theory suggests the drone may have accidentally entered Lithuanian airspace, other possibilities are under investigation. This incident marks the second such violation in less than a month, with similar reports from other NATO allies.

Lithuania has also called on neighboring Belarus, a close ally of Russia, to take action to prevent future incidents. The country has warned that if Belarus fails to mitigate potential threats, Lithuania will respond with political and other measures. The escalating tensions underscore the need for strengthened air defenses to protect against evolving security challenges. 🇱🇹✈️

Agriculture minister: Latvian produce will be costly as there is none

Latvia is facing significant agricultural challenges due to adverse weather conditions, which are driving up the cost of local produce and threatening crop yields. This year, strawberries were notably more expensive due to reduced availability and difficulties in harvesting. The situation is expected to worsen for other crops, including potatoes, as frosts, heavy rains, and floods have damaged or destroyed many agricultural products. Many farmers are likely to experience poor harvests, with some crops suitable only for animal feed.

Despite these setbacks, the Minister of Agriculture assured the public that food shortages are unlikely. Latvia's integration into the single market ensures that any gaps in local production will be filled by imports. However, consumers should brace for higher prices as the availability of local produce diminishes. The agricultural sector is grappling with the immediate impacts of climate-related disruptions, highlighting the need for resilience and adaptation strategies to mitigate future risks. 🍓🍠💰

Polish president vetoes two government bills on final day in office

In his final days as Poland's president, Andrzej Duda has vetoed two significant government bills and sent a third to the Constitutional Tribunal for review. The vetoed bills aimed to close two higher-education institutions and overhaul an academy for justice system officials, both established under the former national-conservative Law and Justice (PiS) government. Duda argued that these moves were attempts to undermine academic autonomy and represented a "power grab."

The third bill, which would allow individuals aged 13 and above to obtain psychological healthcare without parental consent, was referred to the Constitutional Tribunal. Duda expressed concerns about the potential infringement on parental rights and the safety of minors. This bill was proposed by the ruling centrist Civic Coalition (KO) in response to a reported mental health crisis among young Poles. The president's actions reflect his ongoing opposition to the current government, which he has frequently challenged since PiS lost power in December 2023.

Duda's term ends tomorrow, and he will be succeeded by Karol Nawrocki, who is expected to continue opposing much of the government's agenda. The outgoing president has been a divisive figure, often criticized for aligning closely with PiS and vetoing numerous laws proposed by the new liberal coalition led by Prime Minister Donald Tusk. 🇵🇱🏛️

Israel criticises Polish PM Tusk for “unacceptable” post on starving children in Gaza

Poland's Prime Minister Donald Tusk faced criticism from Israel after suggesting that Israeli politicians are contributing to the starvation of mothers and children in Gaza. Tusk's remarks, made on social media, emphasized Poland's support for Israel against Islamic terrorism but condemned actions leading to hunger and death. The Israeli Foreign Ministry deemed Tusk's comments "unacceptable," urging him to remember the lessons of the Holocaust and comparing Hamas to Nazis. The controversy follows similar statements from Poland's Deputy Prime Minister and Foreign Minister Radosław Sikorski, who called on Israel to respect international humanitarian law in its actions in Gaza and the West Bank. Meanwhile, Poland has increased its aid to Palestinians and advocates for Western countries to recognize Palestinian statehood, a position it has held for nearly 40 years. The Polish government has also expressed its inability to intervene in YouTube videos produced by Israel, which accuse the United Nations of hindering aid distribution in Gaza. 🇮🇱🇵🇱⚖️

Commission’s Ribera blasts Israel’s potential full Gaza takeover

European Commission Vice President Teresa Ribera has strongly condemned Israeli Prime Minister Benjamin Netanyahu’s reported plans to seize full control of the Gaza Strip, labeling it an "unacceptable provocation." In a social media post, Ribera emphasized the urgent need for a ceasefire, the liberation of hostages, unrestricted humanitarian access, and respect for human rights. She also called for transparency and a condemnation of the use of violence and starvation tactics.

Netanyahu reportedly discussed expanding Israel’s military campaign to take over the entire Gaza Strip during a meeting with senior security officials, even if it puts the lives of hostages held by Hamas at risk. The meeting aimed to finalize a plan to present to the full cabinet later in the week. The escalating tensions highlight the dire humanitarian situation in Gaza and the urgent need for diplomatic solutions to prevent further loss of life. 🇮🇱🇪🇺💥

Polish parliament strips deputy opposition leader of legal immunity

In a significant political development, Poland's ruling coalition has voted to lift the legal immunity of Antoni Macierewicz, a prominent figure in the national-conservative opposition Law and Justice (PiS) party and former defense minister. This move allows prosecutors to pursue criminal charges against him for alleged crimes committed while leading a controversial commission tasked with reinvestigating the 2010 Smolensk air disaster, which claimed the lives of President Lech Kaczyński and 95 others.

Prosecutors accuse Macierewicz of disclosing classified information, a charge that carries potential prison sentences of up to five years. Macierewicz, who has long advocated the theory that the Smolensk crash was a deliberate attack to assassinate President Kaczyński, denies the accusations, asserting that they are politically motivated. He compared the current situation to the communist era, during which he was frequently detained for his opposition activities.

The decision to lift Macierewicz's immunity was supported by 240 MPs, primarily from the ruling coalition, while 178 MPs, mostly from PiS and its allies, voted against it. The far-right Confederation party's MPs largely abstained from the vote. The commission, established by PiS when it was in power, was criticized for spreading "lies" about the Smolensk crash and wasting public funds. A defense ministry report alleged that the commission was involved in over 40 suspected criminal acts, including abuse of power and document falsification. The new government, led by Donald Tusk, shut down the commission in 2023, marking a shift in the political narrative surrounding the tragic event. 🇵🇱🛬️

No end in sight for fiscal drag

Greece is among several European countries facing the challenge of "fiscal drag," where the tax burden increases faster than nominal income, exacerbating the impact of inflation on household budgets. This phenomenon occurs because tax brackets are not automatically adjusted for inflation, leading to higher effective tax rates as wages and pensions rise. The Tax Foundation highlights that Greece does not currently index its tax rates to inflation, which disproportionately affects middle-income earners and families with children.

While adjusting tax brackets to account for inflation could alleviate this burden, the fiscal cost of such a move is deemed too high for Greece's budget. As a result, families in Greece will continue to experience a steady increase in their income tax liability due to nominal wage and pension increases. This fiscal drag is expected to persist, as permanent indexation would commit significant fiscal resources indefinitely, making it an unattainable solution for the time being. 💸📉

Overtime pay up 81% after digital work card introduction

The introduction of digital work cards to monitor employee working hours has led to a significant increase in overtime pay across various sectors. According to data released by Labor and Social Security Minister Niki Kerameus, paid overtime in businesses mandated to adopt these digital cards surged by 81% in the first half of the year compared to the same period in 2024. This upward trend accelerated in June, with overtime pay rising by 110% compared to June 2024. The tourism sector experienced the most dramatic increase, with overtime pay skyrocketing by 855%. This sharp rise in overtime pay highlights the impact of digital monitoring on workforce management and compensation practices. 💼💸