logo
European Union: Brussels' budget proposal faces strong opposition

European Union: Brussels' budget proposal faces strong opposition

LeMonde4 days ago
The issue, as complex as it is crucial for the future of the European Union (EU), promised to spark heated debate within the Commission. The highly top-down leadership style of its president, Ursula von der Leyen, did not help matters. As a result, on Wednesday, July 16, budget commissioner Piotr Serafin presented the draft of the EU budget bill for the 2028-2034 period to members of the European Parliament almost four hours late.
Until Tuesday afternoon, von der Leyen had kept the legislative proposal to herself, sharing only piecemeal information (always verbally) with other commissioners, never providing them with an overall view. When they finally had access to all the details, discussions were heated, and the Commission had to revise its draft at the last minute.
The stakes are indeed high; the EU's financial capacity rests upon this piece of legislation. It determines the total resources available for seven years, divides them among the 27 member states and directs funding to various policies – agriculture, cohesion, defense, security, competitiveness, research, Erasmus student exchanges and more – where Brussels has a say.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China rare earth exports to the US surge 660% after trade agreement
China rare earth exports to the US surge 660% after trade agreement

Euronews

time2 hours ago

  • Euronews

China rare earth exports to the US surge 660% after trade agreement

China exported more rare earth elements in June, with shipments to the US rising by 660% on a monthly basis, according to Beijing's General Administration of Customs. Total exports of the precious metals increased to 3,188 tons, up around 160% from 1,238 tons in May. Even so, June's total was still 38% lower than the same month in 2024. During the first half of 2025, exports of rare earth magnets also fell 18.9% on the year to 22,319 tons. Total shipments to the US, meanwhile, rose to 353 tons in June, a boost that came after Beijing and Washington managed to secure a trade framework last month. Building upon commitments made in May, when both nations agreed to reduce tariffs on each other for 90 days, the trade agreement involves a commitment from China to deliver more rare earths. These minerals are used in an array of high-tech products such as smartphones, jet engines, EVs, and wind turbines. In response to steep tariffs from the US administration, the Chinese government had imposed export restrictions on seven rare earth elements and magnets earlier this year. The move threatened to derail global supply chains, with more than 70% of rare earth production based in China. More than 90% of the processing also takes place in China. Despite their name, rare earths aren't actually scarce, although they are particularly difficult to mine and process. China's export curbs didn't just hit the US, but they also forced some auto part suppliers in Europe to halt production. Last month, EU trade chief Maros Sefcovic commented on the restrictions: 'I informed my Chinese counterpart about the alarming situation in the European car industry, but I would say industry as such because clearly rare earth and permanent magnets are absolutely essential for industrial production.' He noted that it was an EU 'priority' to address export curbs. In June, the US was the second-largest destination for China's rare-earth magnets, after Germany, and ahead of Vietnam, South Korea, and Thailand — in descending order. As tensions now cool between Washington and Beijing, the US has also started to ease restrictions on tech products sent to China, in response to cooperation on rare earths. US tech giant Nvidia said last week that it would start selling its H20 AI chip in China again after the Trump administration relaxed export controls. The White House gave assurances that it would grant licenses for the product in the Chinese market, after it banned sales of the chip to China in April.

Calm before EU-US trade storm as deadline approaches, Newsletter
Calm before EU-US trade storm as deadline approaches, Newsletter

Euronews

time2 hours ago

  • Euronews

Calm before EU-US trade storm as deadline approaches, Newsletter

Key diary dates In spotlight MEPs will be in their constituencies for the Parliament's last full business week before the summer this week, apart from a few who are heading to the US on missions. Delegations from the committees for budgets and foreign affairs will both visit Washington DC, and the visits come at a sensitive moment. US President Donald Trump has told European Commission President Ursula von der Leyen he intends to raise tariffs on European products to 30% starting 1 August – the end of next week – while the Commission claims to remain ready to work on an agreement before that date. "We of course remain fully and deeply engaged in the negotiations, and technical work continues to reach a mutually beneficial agreement by 1 August," said a Commission spokesperson. The budget committee delegation will meet officials from the US Departments of Treasury and State and members of the Congress and Senate. They have a range of issues on the table relating to the finance, EU and US defence funding, Ukraine reconstruction plans and the impact of the USAID funding termination. The Parliament Vice-President leading the delegation, Romanian socialist Victor Negrescu, said that the mission 'comes at a crucial moment for reinforcing the transatlantic partnership through a budgetary lens', and is looking forward to 'discussions with our American counterparts on shared challenges - be it strengthening our industrial base, developing a Transatlantic Erasmus, securing our supply chains, or ensuring a fair digital transition.' Meanwhile the delegation from the Committee on Foreign Affairs will also be in Washington DC this week as part of its first official visit to the US since last year's Parliament elections and Donald Trump's return to the White House, where they will hold meetings in Congress and the US State Department on EU-US political relations. Neither the US Congress or Senate or the European parliament has any direct heft in the ongoing trade negotiations however, and the it seems likely that the dispute will simply hover ominously in the background of any discussions. Everything they are discussing depends on any outcome to the trade negotiations, however. How much the EU and US are prepared to cooperate on 'shared challenges' and EU-US political relations will depend wholly on whether the outcome is stable or destructive. By the end of next week the two sides will either resolve on normalisation of trade relations, albeit with tariffs playing a fundamental role, or descend into an ugly high-tariff retaliatory stand off that seems destined to harm both sides, and render any dialogue between EU and US lawmakers redundant. Policy newsmakers Drive for child protection online The European Commission offered online platforms further guidance last week on how to protect minors, addressing issues such as addictive design, cyber bullying and harmful content in a bid to ensure that children enjoy high levels of privacy, safety and security. The largest online platforms should not have any issues implementing looming age verification solutions, Denmark's digital minister told Euronews later in the week in response to heavy lobbying around online child protection measures by the tech industry. 'They are the biggest companies in the world, with a bigger economy than most of our countries could ever dream of. I think they will manage to find a solution,' said Caroline Stage Olsen. Policy Poll Will the EU and US reach a trade deal before August 1st? Yes No Vote

ECB expected to hold rates as Trump tariff uncertainty lingers
ECB expected to hold rates as Trump tariff uncertainty lingers

France 24

time6 hours ago

  • France 24

ECB expected to hold rates as Trump tariff uncertainty lingers

The 26 members of the ECB's governing council will meet just over a week before an August 1 deadline set by US President Donald Trump for the imposition of his government's punitive tariffs. Trump has threatened to triple a basic tariff on imports from the EU to 30 percent if Brussels does not cut a deal by the end of the month, casting uncertainty over the future of transatlantic trade. But the ECB was expected to hold tight on rates instead of preempting the outcome of negotiations, pausing a series of cuts that goes back to September. The central bank has reduced its benchmark rate a total of eight times since June last year and at each of its last seven meetings, bringing it down to two percent. The rapid reduction in rates has come as eurozone inflation has fallen back towards the ECB's two-percent target from the double-digit highs seen in 2022. In June, eurozone inflation sat exactly on the ECB's target and was forecast by officials at the central bank to even out at two percent for the year. 'More clarity' The ECB would "almost certainly leave interest rates unchanged" at the conclusion of its monetary policy meeting on Thursday, analysts from Italian bank UniCredit said in a note. "The central bank will now want to have more clarity on the trade outlook before it considers adjusting its policy further," they said. Despite the murky outlook, the ECB was in a "good place" to deal with what comes next, executive board member Isabel Schnabel told financial news service Econostream Media this month. And with the euro area economy showing some signs of life despite Trump's threats on tariffs, "the bar for another rate cut is very high", she said. Euro area factory output has grown four months in a row and the bloc's manufacturing PMI -- a survey-based measure of manufacturer's overall health -- rose in June to its highest level since August 2022. The improving picture painted by recent indicators could, however, be shattered were Trump to follow through with additional tariffs on top of steep existing levies on auto manufacturers, steel and aluminium. Euro strength The sabre-rattling from the Oval Office over trade -- and Trump's repeated attacks on the US Federal Reserve's independence -- have otherwise had the impact of weakening the dollar against the euro. Were the euro to rise much further it would make matters "much more complicated", ECB Vice President Luis de Guindos told Bloomberg TV this month. A stronger single currency brought with it the risk of undershooting the ECB's inflation target by making imports cheaper and cooling the economy, while making European exports more expensive. Already, the ECB's forecasts published last month predict inflation to fall to 1.6 percent in 2026, before recovering to two percent the following year. A strong euro meant rate cuts later in the year were a matter of "when and by how much and not if", ING bank analyst Carsten Brzeski said. The question would get "more attention" at forthcoming ECB gatherings, Brzeski said, but the uncertainty over US tariffs argued in favour a "wait-and-see approach". Trump had upped the threatened level of tariffs on EU exports to the United States since the ECB's last meeting but where they would land after August 1 was uncertain. With the EU locked in talks with Washington to avoid higher tariffs, the necessary "clarity is unlikely to emerge by next Thursday", UniCredit analysts said. A pause was likely before another cut later in the year, perhaps already in September, the first meeting after the summer, they said. © 2025 AFP

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store