
Israel falls short of EU aid deal
Ukraine Zelenskyy says EU will play a major role in Ukraine's post-war construction
Regulation The US orders its embassies in EU to lobby against Digital Services Act
Security Germany to create National Security Council, centralising power under Merz
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This newsletter will go on holiday for a fortnight, resuming 25 August. Europe may slow for the summer, but the politicking rarely takes a holiday; in the meantime, Euractiv's website will keep you in the know. In the capital
On 10 July, Kaja Kallas, the EU's foreign policy chief, announced a deal with Israel to secure a "substantial increase of daily trucks' carrying aid to Gaza. A month later, the results are in, and it's not looking good .
Between 31 July and 4 August, an average of just 38 trucks entered Gaza daily, according to an EU report, seen by The Capitals – far below the 160 agreed with Israeli Foreign Minister Gideon Sa'ar.
Later, we got hold of a revised version of the document shared with diplomats, which stretched the counting period to between 29 July and 4 August, lifting the daily average to 70 trucks – still less than half of what was required by the deal.
Why two reports? EU officials said the revision reflected 'the triangulation of various sources,' and insisted that 'most reports go through iterations.' Still, the EU largely relies on the UN for data because it is barred by Israel from accessing Gaza and assessing the situation on the ground itself.
What was promised and what has been delivered is a sensitive point for Europe and Israel, given the deal is a non-binding 'understanding' with no enforcement mechanism.
It contains several demands from Brussels: open more crossings, make fuel reserves in Gaza accessible, ensure a safe working environment for aid workers and aid recipients, restore essential services, and obviously increase the amount of aid going in. Europe expects these measures to take effect immediately, though the deal carries no deadline.
Israel, which did not respond to a request for comment, denies there is starvation in Gaza. It provided the EU with the higher figures for the number of trucks going in, because – according to the reports – it also counts trucks bound for the Gaza Humanitarian Foundation (GHF). According to Israel, 900 trucks are awaiting pickup by distribution partners.
After ending a temporary ceasefire in March, PM Benjamin Netanyahu almost wholly halted aid into Gaza for 11 weeks. Once resumed, many aid distribution functions handled by UN agencies were shifted into the hands of the GHF, an organisation with significant US and Israeli influence.
Since 27 May, at least 1,373 Palestinians have been killed while seeking food, according to the EU's revised report, including 859 near the four GHF food sites.
Germany joins the grown-ups' table on security
The cabinet is poised to approve the creation of its first-ever National Security Council at the end of August, according to reports, delivering on Chancellor Friedrich Merz's pledge to sharpen foreign and security policy.
Unlike in Paris or Washington, Berlin's decision-making power is split between several ministries and coalition partners, leaving chancellors with limited oversight. Merz's solution is to centralise, The NSC will be chaired by him, will draw in senior ministers and security chiefs, and invite outside experts or NATO representatives if needed.
Nominally, the NSC will have three core jobs: long-term strategic planning; integrating intelligence into comprehensive situational awareness; and crisis and security exercises. Factually, Merz wants it to be 'the pivot for all key issues of foreign policy, security policy, development policy, and European policy.'
A new coordination office in the Chancellery, run by Merz's chef de cabinet, Jacob Schrot, will serve as the inter-ministerial glue. The previous government had failed to set up an NCS over competence haggling, but this time Germany appears determined to join the big leagues of security policymaking.
Carmakers eagerly await US tariff cut
Germany's leading automakers have expressed frustration over delays in implementing a key provision of the EU's trade deal with the US, saying the lack of progress is straining the industry. The pledge to lower levies on EU car exports from 27.5% to 15% has yet to materialise, said Hildegard Müller, president of the VDA lobby group, placing 'a considerable burden' on manufacturers.
The US is Germany's top auto export destination, with 450,000 vehicles valued at $24.8 billion (€21.3 billion) sent across the Atlantic last year, according to the US Commerce Department. Olof Gill, EU Commission spokesperson, said yesterday that Brussels wants the US to lower its car tariffs 'ASAP.'
The Commission was surprised when US President Donald Trump imposed tariffs on 7 August, a day earlier than they had anticipated. Japanese carmakers, facing similar uncertainty, are also desperately seeking clarity as conflicting interpretations of bilateral deals muddy the timeline.
Zelenskyy: Europe will drive Ukraine's rebirth
After a call with Commission President Ursula von der Leyen, Volodymyr Zelenskyy said the EU will play a 'major role in the reconstruction' of Ukraine after the war – a task he called 'one of the largest economic projects for the whole of Europe in decades.'
Zelenskyy has recently expressed hope that a ceasefire could be near, crediting mounting international pressure on Moscow. Washington has stepped up efforts to broker peace, with Trump informing Kyiv and Brussels this week that he plans to meet Russian President Vladimir Putin, before holding a trilateral meeting that would include Zelenskyy. The capitals
BERLIN | Frauke Brosius-Gersdorf withdrew her nomination to Germany's top court after fierce right-wing attacks and squabbling laid bare rifts in the ruling coalition. Conservatives objected to the law professor's liberal views and seized on unproven plagiarism claims, threatening to block her appointment. Lars Klingbeil, leader of the Social Democrats who put her forward, called the hostility unacceptable.
PARIS | France's top court has blocked a planned reintroduction of the neonicotinoid pesticide acetamiprid, citing insufficient safeguard for bees. Most of the broader farming bill survived, including measures to ease livestock and irrigation projects. The move highlights tension between environmental safeguards and agricultural productivity in the EU's largest farming country.
THE HAGUE | A campaign image by far-right Dutch politician Geert Wilders has drawn over 2,500 complaints to a national anti-discrimination hotline, one of its highest-ever tallies. Depicting a choice between a blonde woman and a headscarf-wearing woman, the post was branded as divisive. Wilders responded by intensifying his anti-Islam message.
BERN | Trump's 39% tariff on Swiss exports has prompted lawmakers across the political spectrum here to question a $9.1 billion deal for American F-35 fighter jets. The row risks undermining Switzerland's largest defence purchase in decades and could steer procurement closer to Europe.
ROME | PM Giorgia Meloni renewed her attacks on Italy's judges, claiming bias in immigration cases and accusing opponents of appealing abroad. A Sudanese war crimes suspect's extradition to the ICC has deepened the rift between politics and the courts.
MADRID | Spain's migration minister said yesterday that the government will probe a 'racist motion' passed by a conservative local council in the southeastern city of Murcia. The Popular Party and Vox, which share power in the region, backed the ban on religious activities in a public sports facility mostly used by Muslims. The PP insists the measure is neutral, but the country's justice minister has denounced it as 'extremist.'
LISBON | Portugal extended its state of alert until 13 August as high temperatures and wildfires persist, keeping curbs on farming, recreation and forest activity in place. Authorities credited the measures with reducing fires and said they plan to spend €16 million on Air Force kits to strengthen firefighting capacity.
BRATISLAVA | U.S. Steel Košice in Slovakia is operating at about two-thirds capacity amid competition from cheap imports and weak demand. The firm warns that without stronger EU protections, Europe's steel output – down from 160 million tonnes in 2018 to 130 million in 2024 – could collapse permanently.
WARSAW | After a decade as Poland's president, Andrzej Duda is seeking a seat on the International Olympic Committee. Backed by the country's team, his nomination will be considered at the IOC's upcoming session. Also on Euractiv
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Good afternoon, wherever you may be (presumably, hopefully, not in Brussels). This will be our last newsletter before taking a two-week break. But don't worry, we might still peep into your mailbox if you're subscribed to the guerrilla missive for all the latest on politics, lobbying, and the media. Before we sign off, we'd like to send you off in style. And in true Euractiv form, we're making sure you have your cross-policy-related reading needs met, wherever you are. Politics Even as Brussels is now a ghost town, the criticism of the EU's response to Israel over Gaza has remained very much alive all week. Staffers still in the institutions have been contemplating strike action, accusing the EU of failing to pressure Israel to allow vital humanitarian aid into Gaza, despite an agreement struck back in July. Commission data, obtained by Euractiv on Wednesday, showed that fewer aid trucks are entering the Strip from Israel than the terms of the deal demand. 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Why the EU could stop Israel – but won't
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Moreover, the Kremlin's capacity to continue the war is overwhelmingly dependent on factors far beyond Brussels' control, Moscow's deepening ties with Beijing chief among them. In the case of Gaza, however, the main impediments are political. Many EU countries –especially those still wracked with guilt over their culpability for the Holocaust – are deeply averse to any measures that could significantly impede Israel's war effort. If this internal political resistance were to shift – and, with Germany's announcement earlier today that it would suspend some weapons shipments to Israel, there are signs that it already has – the EU could, in theory , inflict severe economic pain on the country. The EU is Israel's top trade partner, accounting for more than a third of its imports (which include strategically critical goods, like fuel and machinery) and a quarter of its exports. Unlike the bloc's pre-war relationship with Russia, this dependence is also strikingly asymmetric: Israel is the EU's 31st biggest trading partner, ranking behind Morocco and Algeria as the bloc's third-largest in the broader Mediterranean region. This reliance extends to the financial sphere. Europe is, by some distance, Israel's largest investment partner: the 27 EU member states held investments worth €72.1 billion in Israel in 2023 – almost double the US. Underscoring this financial dependence, roughly a quarter of the Bank of Israel's reserves are held in Europe. In principle, these could also be immobilised – much like Russia's central bank assets have been – and their 'unfreezing' made conditional on Israel's ending the war (or paying for Gaza's reconstruction). Finally, Europe's ability to inflict pain on Israel is further bolstered by the fact that the country's economy is already under deep strain. Almost two years of continuous war have caused Israel to suffer weak growth, labour shortages, a swollen budget deficit, and general geopolitical uncertainty – sparking warnings that the country's credit rating could soon be downgraded to 'junk' status. External obstacles Israel's profound vulnerability to EU sanctions is, in fact, widely recognised by analysts. 'The potential suspension or downgrading of EU-Israel trade ties would add significant pressure' on Israel, wrote Lize de Kruijf, a project assistant at the Atlantic Council, a US think tank. 'Given the scale and interdependence of EU-Israel trade, such a move could affect Israel's economic resilience and, by extension, its ability to sustain long-term military operations in Gaza,' she added. The Economist similarly noted last year that even EU export restrictions on military-related goods could 'hurt' Israel. 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EU officials have effectively admitted that the main reason for the massively asymmetric 'trade deal' with the US was their fear that Trump might abandon Ukraine. Any threat to withdraw US military support for Europe or Kyiv would almost certainly cause the bloc to rescind sanctions on Israel – and then apologise to Trump for the inconvenience. Strategic short-sightedness There is something of an irony here. On Tuesday, the EU effectively endorsed Trump's 'secondary sanctions' tariffs on India – which are, ostensibly, designed to force New Delhi to stop purchasing Russian oil and, thus, end the Ukraine war. 'We welcome any pressure, and in particular US pressure on Russia, to accept a ceasefire through any means necessary,' a Commission spokesperson said. Such statements are not only a strategic mistake, insofar as they likely hamper the EU's ability to mitigate the impact of Trump's tariffs through strengthened ties with India and other countries in the Global South. They also set a dangerous precedent: by endorsing Trump's use of tariffs for nakedly political ends, Brussels risks inadvertently legitimising their use against Europe. 'You can stop wars with tariffs,' Trump claims. Although the claim itself is debatable, the natural inference is that the US president also believes he can use tariffs to prevent others from stopping them. And, in Europe's case, he's probably right. Economy News Roundup The EU's promise to invest over a trillion dollars in US energy and infrastructure is 'in no way binding', Brussels says. 'The commitments… we have transmitted to the US administration [are] aggregate intentions as regards energy spending and as regards investment in the US economy by EU companies,' a European Commission spokesperson said on Thursday. The comments came two days after US President Donald Trump threatened to hit the EU with a 35% tariff if it fails to deliver on its commitment to invest $600 billion in US infrastructure over the next three and a half years. Read more. Brussels pushes back on German criticism of trade deal. A Commission spokesperson said on Tuesday that the EU executive was 'surprised' by German Finance Minister Lars Klingbeil's claim that the bloc is "too weak" on trade policy. "It is most surprising to us to hear that a minister from the member state in question has expressed that view given that nothing has happened here [...] without the clear signal received from our member states," the spokesperson said. Read more. EU could scrap digital laws to appease US. Bernd Lange, chair of the European Parliament's international trade committee, told Euractiv that 'there is a risk' that the EU's landmark Digital Services Act (DSA) and Digital Markets Act (DMA) could be jettisoned to finalise last month's preliminary trade deal with the US. The DSA, which targets harmful online content, has been repeatedly criticised by US officials for enabling 'digital censorship' and the 'silencing' of Brussels' political opponents. The DMA, meanwhile, has been central to the Commission's antitrust probes and fines targeting US tech giants like Google, Apple, and Meta, drawing backlash from Trump and Silicon Valley. The Commission has repeatedly claimed that the bloc's digital rulebook is not up for discussion during trade talks with Washington. Read more. EU and US agree on how to cut out China. Despite offering sharply conflicting official accounts of last month's trade deal, Brussels and Washington both strongly committed to bolstering their 'economic security' – a thinly veiled allusion to reducing their dependence on Beijing for strategic products and protecting their industries from increasingly fierce Chinese competition. Economic security has also been 'one of the easier issues' discussed by EU and US negotiators in recent months, a senior EU official said. Analysts noted that the near-identical language used by Brussels and Washington suggests that the EU, which is officially committed to 'de-risking but not decoupling' from China, is becoming increasingly sympathetic to America's tougher line. Read more. Brussels suspends US countermeasures despite lack of auto tariff relief. The Commission said on Monday that it will delay the imposition of retaliatory duties worth €93 billion on US goods despite Washington's failure to follow through on its pledge to slash auto levies from 27.5% to 15%. The reduction of US car duties is crucial for Europe's long-suffering auto industry, which is struggling to keep pace with increasingly fierce competition from Chinese electric vehicle manufacturers. The US accounts for more than a fifth of the EU's car exports, with €40 billion worth of autos shipped to America in 2024. Read more. The Economy Brief will be on pause for summer, returning from 29 August. (cp)