
Brussels aims to turbocharge Europe's power grid with budget hike
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Euractiv
5 hours ago
- Euractiv
FIREPOWER: Trump sparks NATO surveillance aircraft rethink
Take a free trial of Euractiv Pro to get FIREPOWER in your inbox. Good afternoon and welcome back to Firepower, This week, we look at a very concrete example of how US defence policy impacts European security. A Pentagon rethink of its planned purchase of surveillance aircraft is forcing NATO to reconsider its own options. We also dig into how much SAFE money EU countries are seeking - spoiler alert: more than is available. There's also a debrief on what we know (and don't know) about the EU-US trade deal's implications for the defence sector, and Germany's record €108 billion annual defence budget proposal. Plus, updates on the first EU country to ban arms trade with Israel. Exclusive: NATO taking another look at surveillance aircraft pick NATO is rethinking its choice to buy a fleet of Boeing E-7 surveillance aircraft by 2035 to be the alliance's eyes in the sky in Europe and replace the ageing AWACS, Firepower has learned. That comes after the Pentagon announced plans to cancel US orders for the E-7, citing high production costs and concerns about the jet's future survivability. As a result, a spokesperson for NATO's procurement agency, the NSPA, told Firepower that the plan as 'as a whole is being assessed'. The Pentagon's rejection of the E-7 for the US military raises questions about whether the Trump administration will still agree to contribute financially toward purchasing 14 of the aircraft for NATO – or if the bill will be left to the seven participating European allies . Lower total E-7 orders thanks to American cancellations would also likely drive up the price per aircraft for the remaining customers, including NATO. The NSPA plans to give an update 'towards the end of September' that will 'include the division of cost across the participating nations'. The spokesperson said that NATO and participating countries are 'evaluat[ing] the available options'. Buy local instead? The current scramble to figure out the E-7's future shows just how much Europe's security policy still hinges on political decisions in Washington. It remains unclear at this stage if the remaining NATO countries might be interested in picking a European aircraft instead of the E-7. Saab, which previously pitched its GlobalEye to the military alliance, told Firepower they remained confident their aircraft remains an 'excellent' option. Douglas Barrie, an aerospace analyst at the IISS think tank, told Firepower that other options include sticking with the existing AWACS for now and following the US in their future choice sometime in the mid-2030s, going for a new 'clean-sheet design' or taking a 'wait-and-see' approach, since the potential E-7 cancellation hasn't passed the US Congress yet. On your radar: EU countries want almost €200 billion from SAFE; UK still sidelined This week, 18 EU countries have put in initial requests for SAFE funds by Tuesday's initial soft deadline . Firepower dug into what capitals are asking for, and some initial ideas of how to spend it. According to our sources and estimates, the club of 18 actually asked for a good bit more than the €150 billion total available for loans, when considering the top end of the requests they sent in. Gone are the days where the Commission was not sure they'll spend the whole pot. The Commission put the total requested at € 127 billion on Wednesday. But submissions included a minimum and maximum range, and Euractiv understands that the Commission's figure was based on the low end of their requests. The EU executive is not stopping there, though. It is sending out a letter to nudge the club of countries which have not given in their request to do so fast. The SAFE programme is also making waves across the pond, with EU Defence Commissioner Kubilius telling Firepower that he saw 'strong interest among American industry' during his recent US visit. Canada has reportedly shown interest in participating . However, the process is not that easy, as the UK's efforts to negotiate access demonstrate. The Commission could send a proposal next week to the EU countries as a basis to start negotiations with the UK, but don't expect those to start in peak holiday season, we're told. Israel-EU tensions rise Slovenia became the first EU country to impose a full ban on weapons trade on Israel on Thursday. The ban also prohibits the transit of any weapons through Slovenia on their way between Israel and elsewhere. Meanwhile on the European level, Israel's potential exclusion from key parts of the EU Horizon Europe research fund now hinges in large part on Germany and Italy. Neither have taken a position on the Commission's proposal, which would cut funding to Israel for dual-use technologies that have potential military applications. Israeli state-owned arms maker Rafael notably attracted attention by posting a video on X where a drone killed a person in Gaza. As the EU Observer highlighted , that could cause Israel to get kicked out of the EU programme. Germany, Europe's largest arms exporter to Israel and the buyer of Israeli-made air defence systems, wants more time to consider its position. A decision to back the Commission would move the needle towards a qualified majority – but that's unlikely to come before Foreign Minister Johann Wadephul returns from a visit to Israel later today. A decision on whether to partially exclude Israel from Horizon Europe could be taken later this summer, one diplomat said.


Euractiv
6 hours ago
- Euractiv
The Brief – 1 August 2025: The Good, the Bad, and the Ugly
Good Friday afternoon, and welcome to the penultimate GBU before Euractiv newsletters have a two-week summer break. Many dear readers will have already swapped desks for deck chairs; others might be en route , joining the throngs on Europe's busiest traffic weekend of the year. The month of mass transit gives many of us a chance to test the limits of free movement – whether impeded by border checks or infrastructure in need of upgrades. Transport Commissioner Apostolos Tzitzikostas warned this week that billions of euros must be spent to ensure the bloc's roads and rail are fit for defence forces. And whether for leisure or strategic purposes, the continent's grand rail vision is losing momentum, held up by a patchwork of regulatory standards, poor cross-border connections, and the high cost of laying new tracks. On top of which, passengers are lured away from the green transport mode by flights that are often much cheaper, and do away with the complicated business of changing between national networks. But for all the convenience it brings, boarding a plane weighs increasingly on our consciences, as our travel choices are one of the main contributors to personal carbon emissions. Those flying within the EU, however, needn't let the burden of climate guilt spoil their vacation: in fact the bloc's Emissions Trading System means that the CO2 cost is already factored into tickets, Niko Kurmayer explains. The system isn't perfect – other pollutants than CO2 are not yet covered – but it goes some way in accounting for a notoriously un-eco travel option. Deal or no deal? The hotly anticipated EU-US trade "deal" that President Trump and President von der Leyen agreed in Scotland last Sunday generated enormous commentary throughout the week. Panned by most EU pundits as capitulation of the highest order, the general revulsion at von der Leyen's bootlicking was widely seen as the abdication of European values, international trade laws, and an outrageous disregard for national sovereignty in matters of defence. Then again, others have pointed to the imperative of avoiding the crushing 30% tariffs that Trump was poised to launch. It could have been worse, they note, and many sectors let out a tentative sigh of relief. If ostentatious obeisance is what it takes to avoid a ruinous trade war, so be it. But the devil's in the lack of detail, and as Thomas Moller-Nielsen writes, it's hard to judge the "biggest trade deal ever' when so many aspects of the agreement remain unknown. Despite Trump's crowing celebrations as if all was done and dusted, this is really just the start of negotiations. And the stakes are high, with key sectors – such as steel and digital markets – the focus of hard-nosed bargaining. With so much still tba, Trump delayed the new tariffs by a week (now due 7 August, rather than today). Let's see where we are next week. Pendulum swings on Gaza Europe's attitude towards Israel grew notably cooler this week, as the blockade on aid deliveries has led to severe starvation in Gaza. Having been extremely hesitant to take action against Israel, the dial is now moving as European leaders face public outcry and more countries announce plans to recognise the Palestinian state. Within the Commission's ranks, executive vice-president Teresa Ribera has been most outspoken as she denounced the EU leadership's inaction over the "catastrophic humanitarian situation" in the Gaza Strip. Former foreign policy chief Josep Borrell went further on Friday, accusing EU leaders of being complicit in the "genocide of Palestinians". But despite expressing 'great concern over the catastrophic humanitarian situation in Gaza,' Germany's Chancellor Friedrich Merz has so far resisted pressure to suspend EU research ties with Israel. Meanwhile, France, Germany and Spain have started airlifting aid into Gaza – though this is far less effective than opening up secure land deliveries. European defence procurement 18 countries have applied for funds under the EU's SAFE programme, which aims to mobilise €150 billion in loans for defence procurement. After initial hesitation (partly because defence spending is a national competence that has historically been beyond the Commission's remit), a total of €127 billion was claimed – a figure that will likely rise once the United Kingdom and others are accounted for. Countries have until November to submit their proposals to Brussels, with breakdowns of what exactly they will do with the loans. Want to get The Good, the Bad, and the Ugly in your inbox? Subscribe to The Brief.


Euractiv
6 hours ago
- Euractiv
Brussels under pressure over wastewater costs for pharma and cosmetics
Thomas Mangin Euractiv Aug 1, 2025 16:01 3 min. read News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. Want to keep reading? Get a subscription on Euractiv Pro and elevate your political insight! Discover Euractiv Pro For corporations Already have an account? Log in