Europe News Digest (16-31 January, 2025)

Economic Corridor Vision from India, Middle East, Europe can now Become Reality: Biden on Gaza Ceasefire

US President Joe Biden on January 16 said that his vision of an economic corridor connecting India, the Middle East, and Europe--a vision first presented at the G-20 summit in Delhi in September 2023--can now become a reality following the Israel-Hamas ceasefire and hostage deal. Biden further acknowledged that while the ceasefire deal was developed under his administration, its implementation will largely fall to the next administration, which will be under President-elect Donald Trump. Biden also highlighted the emerging opportunities for peace and stability in the Middle East, including the potential for a future free from the influence of Hezbollah and Assad. Click here to read... [2]

EU Pledges €120 Million in Aid for Gaza as Israel Truce Appears Near

Brussels has had a limited role in brokering a fragile Middle East peace deal – but hopes are high it can help improve Gaza’s grim humanitarian situation. The EU has warmly welcomed the prospect of a truce in the Israel-Gaza war that has raged for 15 months – and today pledged €120 million in aid as the region faces up to its terrible legacy. The EU aid package pledged includes assistance for food, healthcare and sanitation, and brings the total support to the region since 2023 to €450 million, with 3,800 tonnes of aid delivered by air. News of the ceasefire has been welcomed by EU leaders, with top diplomat Kaja Kallas describing it as a “major, positive breakthrough,” while European Council President Antonio Costa reiterated the EU’s commitment to a two-state solution – a long-term plan for peace that many fear the war has left in tatters. Iratxe García Pérez, who leads the European Parliament’s centre-left socialist grouping, called for the release of all remaining Israeli hostages held by Hamas, and pledged to travel to the region soon. Click here to read... [3]

Poland to Push for FTA Between India and Europe

Strengthening cooperation between India and the European Union (EU) will be the priority of Poland, which took over the presidency of the top European body this month, said Polish Charge d' affaires to India, Sebastian Domzalski. He stressed that India is Poland's strategic partner in Asia and said Prime Minister Narendra Modi's visit to the European nation last year contributed to the bilateral relations and regional cooperation between the two nations. "Given the difficult geopolitical environment in Europe and all around the globe, our priority will be security...Here in India, we are looking forward to continue contributing to the EU-India relationship," Domzalski said. Elaborating on Poland's India strategy, he said, "We hope to be working very closely with India. Economic development and economic progress will be higher on our agenda. We are hoping to bring India and the EU closer with a discussion on the free trade agreement. We also hope to have the EU India summit early this year." Click here to read... [4]

Trump’s Tariff Threats Push Europe to Gear Up for Trade Fight

President-elect Donald Trump’s tariff warnings are forcing Europe to confront an unwanted trade-off: Keep its own tariffs low and shoulder the economic costs, or throw up new barriers in a bid to protect vulnerable industries. The European Union has long ardently defended the rules-based system for free trade, and last month announced a breakthrough on a giant trade deal with four South American countries. At the same time, the bloc is preparing a combination of carrots and sticks to respond to Trump’s plan to use tariffs to achieve domestic and foreign policy objectives. Europe wants to avoid an all-out trade war. The U.S. is the EU’s biggest trading partner, with total two-way trade and foreign affiliate sales between the two economies valued at roughly $8.7 trillion, according to the American Chamber of Commerce to the EU. Any U.S. move to impose global tariffs of up to 20%, as Trump has threatened, would damage Europe’s already ailing economy and weigh on the bloc’s exports to the U.S. Higher U.S. tariffs on China could redirect cheap products to Europe in a double whammy for the bloc’s domestic manufacturers. Click here to read... [5]

Musk Pushes Hard-Right 'Make Europe Great Again' Slogan Amid EU Inquiry

Elon Musk is continuing his campaign of support for Europe's hard-right parties, including AfD party candidates in the run up to German's federal election, with regular messages of support being posted on X. In the latest post on January 18, he stated: "From MAGA to MEGA: Make Europe Great Again." "Make America Great Again" has long been the rallying cry of Donald Trump, who is further to the right than any Republican president in the United States in living memory, according to political scientists. And it was also the slogan of Hungary's presidency of the EU in 2024 Prime Minister Viktor Orban, who is regarded as a hard-right populist by political scientists. In reply Musk says he is a champion of free speech and democracy and accuses European leaders and other critics of trying to limit them. Click here to read... [6]

Irregular Migration into EU Dropped Sharply in 2024: Border Agency

The number of people entering the European Union by irregular crossings dropped almost 40 percent in 2024, according to the bloc’s border agency Frontex. Preliminary data reveal a significant 38 percent drop in irregular border crossings into the EU in 2024, “reaching the lowest level since 2021, when migration was still affected by the COVID pandemic,” Frontex said in a statement. However, despite the fall in total numbers, the eastern end of the EU saw a rise in irregular crossings last year. Frontex said the drop to just over 239,000 irregular border crossings last year were thanks to intensified EU and partner cooperation against smuggling networks. The biggest fall was registered along the route through the Western Balkans, which saw a 78 percent drop that Frontex attributed to “strong efforts by regional countries to stem the flow”. The border agency added that irregular entries detected via the Central Mediterranean fell by 59 percent due to “fewer departures from Tunisia and Libya”. Click here to read... [7]

Ahead of Donald Trump Swearing in, French PM Issues ‘Europe will be Crushed’ Warning

French prime minister Francois Bayrou on January 20, warned against risks of France and Europe being “dominated, crushed and marginalised”. In this context, French President Emmanuel Macron called on Europe to “wake up” and spend more on defence in order to reduce its reliance on the United States for its security, in a speech to the French military as Donald Trump returns to power. “What will we do in Europe tomorrow if our American ally withdraws its warships from the Mediterranean? If they send their fighter jets from the Atlantic to the Pacific?” he asked. Trump has criticized the cost of the war in Ukraine for US taxpayers through major military aid packages and has made it clear that he wants to shift more of the fiscal burden onto Europe. Click here to read... [8]

EU and Mexico Revive Stalled Trade Deal as Trump Looms

The European Union and Mexico reignited a stalled upgrade to their free trade deal, just days before the return to office of US President-elect Donald Trump, who has threatened both sides with tariffs. The two parties are seeking to update their trade accord from 2000, which only covers industrial goods, by adding services, government procurement, investment and farm produce. EU and Mexican negotiators reached an initial deal in 2018, and agreed in 2020 to grant reciprocal market access to each other’s tenders for public contracts. Mexico, which wants to reduce its reliance on the United States, has said the deal would grant it better access for products including orange juice, tuna, asparagus, honey, egg white albumin, as well as “equitable access” for meat products. It is also set to recognise “geographical indications” for certain food and drink, a key EU demand such as specifying that only cheese from a particular part of Italy can be called Parmigiano Reggiano. Click here to read... [9]

India Joins Eurodrone Effort as Observer Nation

Europe’s Organisation for Joint Armament Cooperation (OCCAR) today welcomed India to the multinational Eurodrone aircraft program, becoming the second Asia-Pacific country behind Japan to receive observer status. The OCCAR-EA Director congratulated the Government of India on committing to commence this special relationship and expressed his hope that this first step will lead to a long, fruitful and mutually beneficial cooperation. OCCAR oversees a number of high-profile European defence projects including the A400M Atlas airlifter, Boxer armoured utility vehicle, Tiger attack helicopter and Horizon Mid-life Upgrade (MLU)/FREMM multirole frigates. India initially applied for Eurodrone observer status in August 2024 after Japan joined as an observer in November 2023. An observer nation typically receives access to technical information related to a given platform and can also place orders for it, but unlike full partners does not have a say over aircraft design, development or workshare decisions. Click here to read... [10]

Russian Strikes Target Multiple Ukrainian Cities as the Kremlin Intensifies Its Offensive

Russian strikes continue to target Ukrainian cities at high intensity causing significant damage to property and infrastructure. Ukraine continues to suffer from Russia’s relentless bombardment campaign. On January 21, the Kremlin launched a wide-range campaign against Kyiv, targeting several cities with rockets, missiles and drones. In the central city of Cherkasy, debris from an Iranian-made Shahed drone launched by Moscow damaged the windows of five two-storey residential buildings, a school and a shop in the village of Zvenyhorodshchyna. The drone was destroyed in the middle of the settlement according to the head of the village council, Larysa Kyrychenko. The head of the regional military administration, Ihor Taburets, reported that Ukraine’s Air Defence Forces thwarted a Russian attack on the Cherkasy-Oblast region. Taburets says Kyiv intercepted and destroyed seven Russian army drones. The attack was neutralised promptly and there were no reports of injuries or casualties. Click here to read... [11]

Zelenskyy Excoriates Europe in Davos Speech

Ukrainian President Volodymyr Zelenskyy took aim at Europe in a fiery speech delivered at the World Economic Forum on January 21, saying the continent “needs to step up” and “learn how to take care of itself so the world can’t ignore it.” Speaking the day after Donald Trump was inaugurated as United States president, Zelenskyy contrasted the strength of Washington with what he called the weakness of the EU. Referring to last year’s IISS Shangri-La Dialogue, the annual inter-governmental security conference held in Singapore, Zelenskyy said the U.S. delegation had named the Asia-Pacific region as their top priority, followed by the Middle East and only then Europe — and that was under the Biden administration, which was broadly more committed to supporting America’s traditional European allies than the Trump administration promises to be. “Europe can’t afford to be second or third in line for its allies. If that happens, the world will start moving forward without Europe, and that’s a world that won’t be comfortable or beneficial for Europeans,” Zelenskyy said. Click here to read... [12]

Trump tells Putin to End 'Ridiculous War' in Ukraine or Face New Sanctions

Donald Trump has warned he will impose high tariffs and further sanctions on Russia if Vladimir Putin fails to end the war in Ukraine. Writing on his social media platform Truth Social, he said that by pushing to settle the war he was doing Russia and its president a "very big favour". Trump had previously said he would negotiate a settlement to Russia's full-scale invasion launched in February 2022, in a single day. Russia has not yet responded to the remarks, but senior officials have said in recent days that there is a small window of opportunity for Moscow to deal with the new US administration. Putin has said repeatedly that he is prepared to negotiate an end to the war, which first began in 2014, but that Ukraine would have to accept the reality of Russian territorial gains, which are currently about 20% of its land. He also refuses to allow Ukraine to join Nato. Kyiv does not want to give up its territory, although President Volodymyr Zelensky has conceded he may have to cede some currently occupied land temporarily. Click here to read... [13]

UK Warns Putin After Russian Spy Ship Seen Near British Waters

The Royal Navy has been monitoring a Russian spy ship after it was spotted around UK waters around January 20, the defence secretary has told MPs. The vessel, Yantar, was used for gathering intelligence and mapping the UK's critical underwater infrastructure and could be another example of growing Russian aggression. Russia describes Yantar as an oceanic research vessel and it is operated by the country's Ministry of Defence. Western nations have often tracked the ship operating in European waters and they suspect part of its mission has been to map undersea cables. They also believe Russia has been stepping up this activity since it launched its full-scale invasion of Ukraine. As well as surveillance equipment the ship can operate submersible drones capable of reaching the ocean floor. Undersea infrastructure is crucial for energy supply through power cables and pipelines, while more than 95% of internet traffic is also secured via undersea cables. Click here to read... [14]

EU Must Spend More Than 1% of GDP to 'Prepare for the Worst', Kallas says

Russia is posing an existential threat to the European Union’s security and the only way to address that is to increase spending on defence, the European Union’s foreign policy chief Kaja Kallas said. While warning of a possible attack by Russia in the coming years, Kallas added that the EU had for too long offered Russia alternatives. In 2024, member states collectively spent an average of 1.9% of GDP on defence, while Russia was spending 9%. She said that the EU must boost its defence spending to "prepare for the worst" and be able to defend itself "alone if needed" against a belligerent Russia. She highlighted that Russia can, in three months, produce more weapons and ammunition than the 27-country bloc collectively can in 12 months. "President Trump is right to say that we don't spend enough." Over the next decade, the EU will need at least €500bn to remain competitive in defence, and so far, only around €13bn has been earmarked for defence and security in the EU's long-term budget from 2021 to 2027. Click here to read... [15]

‘Get Armed to Survive, Don't Save On Security Spending’: Poland Tells Europe

Poland’s Prime Minister Donald Tusk urged fellow EU countries on January 22 to significantly boost defence spending towards targets laid out by US President Donald Trump, saying the bloc’s survival depended on it. Addressing the European parliament, Tusk, whose government took up the EU’s rotating presidency this month, called for action in the face of an aggressive Russia. “This is a time when Europe cannot afford to save on security," Tusk told European lawmakers in Strasbourg. “If Europe is to survive, it needs to be armed". Russia’s war in Ukraine has jolted NATO to strengthen its eastern flank and ramp up investments on defence. Trump has demanded alliance members increase such expenditure to five percent of GDP, more than double the current minimum of two percent. Last year 23 of NATO’s 32 member countries were on course to hit the two-percent threshold — with Poland leading the pack on 4.12 percent. Click here to read... [16]

Belarus Election is Poised to Extend 30-Year Rule of ‘Europe’s Last Dictator’

The last time Belarus staged a presidential election in 2020, authoritarian leader Alexander Lukashenko was declared the winner with 80% of the vote. That triggered cries of fraud, months of protests and a harsh crackdown with thousands of arrests. Not wanting to risk such unrest again by those opposing his three decades of iron-fisted rule, Mr. Lukashenko advanced the timing of the 2025 election — from the warmth of August to frigid January, when demonstrators are less likely to fill the streets. With many of his political opponents either jailed or exiled abroad, the 70-year-old Lukashenko is back on the ballot, and is all but certain to add a seventh term as the only leader most people in post-Soviet Belarus have ever known. Mr. Lukashenko was dubbed “Europe’s last dictator” early in his tenure, and he has lived up to that nickname, harshly silencing dissent and extending his rule through elections that the West has called neither free nor fair. Click here to read... [17]

European Union Rejects Election in Belarus, Threatens New Sanctions

The European Union rejected the election in Belarus on Sunday as illegitimate and threatened new sanctions. Belarus held an orchestrated vote virtually guaranteed to give 70-year-old autocratic President Alexander Lukashenko yet another term on top of his three decades in power. The sham election in Belarus on January 26 has been neither free, nor fair, EU foreign policy chief Kaja Kallas and EU enlargement commissioner Marta Kos said in a joint statement. The relentless and unprecedented repression of human rights, restrictions to political participation and access to independent media in Belarus, have deprived the electoral process of any legitimacy," Kallas and Kos said. They urged the Belarusian government to release political prisoners, estimating their number at more than 1,000, including an employee of the EU delegation in Belarus' capital, Minsk. Click here to read... [18]

Turkey pushing to help EU replace Ukraine gas transit

Turkey is launching a diplomatic effort to restart energy negotiations with the European Union, eyeing the prospect of becoming a major supplier of natural gas, after previous discussions were derailed by tensions with Cyprus. Turkey's EU ambassador, Faruk Kaymakcı, said that energy cooperation would be put front and centre on its agenda, as part of a planned thawing of relations that will include trade talks and political cooperation on wars in Eastern Europe and the Middle East. The push comes as EU member countries like Hungary and Slovakia search for alternatives to Russian gas after a transit deal that allowed them to import supplies via Ukraine came to an end at the beginning of the year. Click here to read... [19]

Swedish Prosecutors Launch Preliminary Probe after Baltic Sea Data Cable Damaged

An undersea fibre optic cable between Latvia and Sweden was damaged on January 26, probably as a result of external influence. Swedish prosecutors have announced a preliminary investigation into suspected aggravated "sabotage" and ordered the detention of a vessel in the Baltic Sea. According to data from Vesselfinder, the ship departed from the Russian port of Ust-Luga several days ago and was navigating between Gotland and Latvia at the time the damage is believed to have occurred. There have been previous incidents reported of ruptures of data cables running along the Baltic Sea bed, allegedly linked to Russia's shadow fleet, hundreds of aging tankers of uncertain ownership that are dodging sanctions and keeping oil revenue coming into the country. The most recent incident happened on Christmas Day when the Estlink-2 cable, which carries power from Finland to Estonia, was damaged. This has prompted NATO deploy frigates, patrol aircraft and naval drones in the Baltic Sea to help protect critical infrastructure and reserve the right to take action against ships suspected of posing a security threat. Earlier this month, NATO launched a mission dubbed Baltic Sentry which includes frigates, maritime patrol aircraft and a fleet of naval drones to provide "enhanced surveillance and deterrence" in the Baltic Sea which the transatlantic alliance says is to protect undersea cables and pipelines. Click here to read... [20]

Solar Power Surpasses Coal as EU Energy Source

According to a report released by climate think tank Ember, solar power has surpassed coal as a source of electricity in the EU for the first time in 2024. Solar energy has become EU’s fastest-growing power source, contributing 11% to its supply. Overall, strong growth in solar and wind has boosted the share of renewables to 47%, up from 34% in 2019. Only 10% of the bloc’s power is not generated with coal. The report also highlighted the continued decline in fossil fuel dependency, with gas generation falling for the fifth consecutive year and overall fossil-fuelled power dropping to a historic low of 29%. The European Green Deal, enacted in 2019, has been pivotal in accelerating the EU’s transition to clean energy. Soaring gas prices following Russia’s invasion of Ukraine also forced Europe to turn to renewable energy, seeking cheaper, cleaner alternatives. Click here to read... [21]

Hungary Backs Down from Veto Threat and Allows Renewal of EU Sanctions on Russia

Hungary has backed down from its veto threat and on January 27, allowed the renewal of EU sanctions against Russia for an additional six months, bringing to a close the short-lived political saga that had put Brussels on edge. The breakthrough was achieved during a meeting of foreign affairs ministers where a statement about "the integrity of the energy infrastructure" was put forward to placate Budapest's concerns, raised by several diplomats. The prolongation "will continue to deprive Moscow of revenues to finance its war. Russia needs to pay for the damage they are causing," said High Representative Kaja Kallas. The sectoral sanctions, which include sweeping bans on oil, coal, technology, finance, luxury goods, transport, and broadcasting, and the freezing of €210 billion in assets from Russia's Central Bank, were due to expire on 31 January unless unanimity was found. Click here to read... [22]

EU Agrees on 'Step-by-Step' Roadmap to Start Easing Sanctions on Syria

The European Union has taken the first step to ease its stringent, far-reaching sanctions against Syria after foreign affairs ministers endorsed on January 27, a roadmap for a temporary suspension contingent upon progress on the ground. The first restrictions likely to be eased concern the banking, energy, and transport sectors, noting the selection was tentative and could still change as negotiations continue in Brussels. The hand-picked sectors are considered essential to accelerate the war-torn country's reconstruction, strengthen stability and normalise financial relations with the bloc, which remains Syria's biggest international donor. The move is part of a "step-by-step approach" that will relax some sanctions while keeping others in place, said High Representative Kaja Kallas. Click here to read... [23]

Denmark to Inject Almost €2bn into Arctic Security amid Trump's Greenland Threats

Denmark will inject 14.6 billion kroner (€1.95 billion) into boosting its military presence in the Arctic and North Atlantic region. The EU has said it is "not negotiating" with the US when it comes to Denmark's sovereignty, and that it stands behind the government's position. Copenhagen is also boosting its military spending and holding talks with European allies as Trump ramps up his expansionist rhetoric. Trump has repeatedly said he believes the US will gain control of the island, despite Fredericksen insisting the territory was not for sale in a fiery phone call with the US president last week. News of the phone call between Frederiksen and Trump has heightened fears in Denmark that Trump is increasingly serious about his threats and demands. Greenland is home to a large US space facility and is also located on the shortest route from North America to Europe. Trump first floated the idea of taking control of the territory during his first term, insisting US control of the island was a "necessity" for international security. He has ramped up efforts to claim control over Greenland since his return to the White House, refusing to rule out using military force to take control of the territory. Click here to read... [24]

EU Gives Denmark 'Full Support' Against Trump's Threats

European Council President António Costa said the territorial integrity of Denmark is an "essential issue" for the European Union. The European Union gives "full support" to Denmark against Donald Trump's threat to take control of Greenland and stands ready to defend the principles of national sovereignty and territorial integrity as it did when Russia launched the full-scale invasion of Ukraine. Ever since Trump refused to rule out using economic coercion and military force to seize Greenland, the bloc has been on edge, trying to figure out how serious the threat is. Over the weekend, the US president doubled down on his expansionist agenda. "I think we're going to have it," Trump told reporters. "I don't really know what claim Denmark has to it, but it would be a very unfriendly act if they didn't allow that to happen because it's for the protection of the free world." In reaction, Danish Prime Minister Mette Frederiksen embarked on a rapid mini-tour across Europe to shore up political unity for the unprecedented challenge. Frederiksen said she is open to deepening military ties with America but insists the semi-autonomous island, which is part of the Kingdom of Denmark, is not for sale. Click here to read... [25]

Bulgarian Government Tries to Calm Fears After Black Sea Oil Spill

In December, two Russian oil tankers collided in the Kerch Strait, leaking some 5,000 tonnes of oil into the sea. Earlier this week, the Russian Academy of Sciences announced that some fuel oil could reach the coasts of Georgia, Turkey, Romania, and Bulgaria. But the environment minister, Manol Genov, played down the news, saying there is no danger of it reaching Bulgarian Black Sea waters. Tourism Minister Miroslav Borshosh called the media reports "malicious" and said they were worrying the local tourism industry. Bulgarian tourism generates 7% of the country's GDP, but in the last two years, it has fallen on hard times due to concerns about the cleanliness of the water in the Black Sea. He added that the government was continuing efforts to maintain Bugaria's status as a safe destination, including nipping any speculation about the oil spill in the bud. Click here to read... [26]

Serbian PM Milos Vucevic Resigns After Months of Anti-Corruption Protests

Serbian Prime Minister Milos Vucevic announced on January 28 that he was resigning, following months of mass demonstrations over the fatal collapse of a train station roof in November. The Balkan country has been rocked by regular protests since a deadly disaster at a train station in the northern city of Novi Sad killed 15 people following extensive renovations at the facility. The incident ignited long-standing anger over corruption and the alleged lack of oversight on construction projects. The prime minister had been in office for less than a year. "My irrevocable decision is to resign from the position of prime minister," said Vucevic during a press conference in Belgrade. "So in order to avoid further complicating things, so we do not further raise tensions in society, I made this decision." Click here to read... [27]

Spain's Economy Outperforms Euro Zone in 2024 with 3.2% Growth

Spain's economy expanded by 3.2% in 2024, outstripping official forecasts and far outperforming its euro zone peers, according to preliminary data from the National Statistics Institute. The Spanish government expects to raise its forecast for this year from 2.4% following the stronger-than-expected performance, which was buoyed by a tourism boom as well as a strong output in agriculture and higher exports. Immigration, which has helped Spain plug skills gaps and reduce its unemployment rate in the fourth quarter to its lowest level in 16 years, also bolstered GDP. "Spain keeps leading the euro zone growth, with a GDP increase four times higher than the euro zone as a whole," Economy minister Carlos Cuerpo said in a statement. Click here to read... [28]