7 days ago
Merz and Macron's bromance loses momentum
Welcome to the Capitals by Eddy Wax, with Nicoletta Ionta. Feedback is welcome.
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In today's edition: Honeymoon meets hard reality
Zelenskyy's anti-corruption shake-up
Europe eyes the trade bazooka
Danish minister swipes at Merkel
Growing ties with Tokyo
Commission sued over AI law retreat
In the capital
Emmanuel Macron and Friedrich Merz will today make a big push to keep their honeymoon period humming along, our Berlin correspondent Nick Alipour writes. But with a growing pile of thorny issues up for discussion, the engine called 'Merzcron' is at risk of stalling.
In the French president's first official visit to Merz's Germany, the pair will meet for dinner at the 20th-century Villa Borsig on the outskirts of Berlin.
The mood is far less jovial than it was in May, when Merz took over as chancellor and the two leaders spoke grandiosely about jump starting the Franco-German motor – a reboot after Macron's rocky relationship with Olaf Scholz. It was mostly vibes and good intentions over substance, but Merz's supporters say that's half the battle.
Berlin and Paris remain poles apart when it comes to the most contentious files in Brussels – from transatlantic trade to the new EU budget, nuclear energy, and even futuristic fighter jets. Scholz may be gone, but his centre-left SPD is still in charge of various ministries, and unlike Merz's CDU, the Environment Minister Carsten Schneider isn't warming to France's pro-nuclear stance.
At today's meeting, 'all the European questions will be tackled,' according to an Élysée Palace source.
The long-troubled Franco-German Future Combat Air System has once again proven to be a buzzkill. Reports suggest Paris is seeking to take more leadership from Germany in their joint project to develop a next-generation fighter jet, prompting Merz to acknowledge that there had been "differences of opinion on the composition of the consortium' that had 'not yet been resolved.'
Trade is no smoother. The French remain critical of the EU's free-trade agreement with the Mercosur bloc, which still needs to be passed. Merz has claimed that Macron is coming around to Germany's export-friendly position – though the Commission is still putting the finishing touches on a compromise.
Meanwhile, with Washington's trade tariff looming, Macron would like to at least threaten use of the EU's anti-coercion mega retaliation tool – dubbed the 'trade bazooka' – which could limit access for American service industries to the bloc's markets. Merz, backed by the likes of Ireland and Italy, is urging restraint ahead of the 1 August deadline imposed by US President Donald Trump, who has said he wants to 'eliminate the Trade Deficit.'
Even on the EU's long-term budget, the two countries are divided. Germany outright rejects the Commission's draft proposal for a €2 trillion pot and its new taxes, and France is calling for greater budgetary ambition.
The French and German defence ministers will meet on Thursday. But the bigger test comes later this summer, when the two governments are set to convene in late August to make some news about defence cooperation.
Zelenskyy's anti-corruption shake-up
Volodymyr Zelenskyy has signed a bill that will place Ukraine's independent anti-corruption bodies under effective government control.
An earlier vote on Tuesday by the parliament brought protestors out into the streets of Kyiv and prompted a steely response from the EU and G7. Enlargement Commissioner Marta Kos spoke to Ukraine's new PM Yulia Svyrydenko and said the move is a "serious step back' for the country, which must meet certain criteria to join the bloc.
Ukraine's secret service has launched raids and arrests, accusing anti-corruption staffers of spying for Russia. The law places two anti-graft bodies under the control of the prosecutor general, Ruslan Kravchenko, who was appointed by Zelenskyy and is reportedly close to him. The media and opposition figures have accused Zelenskyy of cracking down on democracy at home, casting a shadow over today's talks with Russia, set to take place in Turkey.
Europe eyes trade bazooka
This afternoon, EU ambassadors will discuss what kinds of responses are needed for each possible Trump tariff (10%, 20%, 30%, etc.) – given the U.S. president's unpredictable policy moves.
Speaking to Euractiv, an EU diplomat did not rule out the possibility of another postponement of countermeasures to allow more time for talks. The vibe has shifted among EU countries since April, another EU diplomat said.
France, a longtime advocate for the bazooka, is no longer alone in this pursuit, Euractiv has learned. More member states are warming up to the idea of brandishing the EU's biggest trade gun, however long it might take and potentially hitting back on US service providers (think Meta, Google) operating in the EU.
On Thursday, EU ambassadors will travel as part of a Danish Presidency visit to Greenland, the Danish-dependent territory that Trump has threatened to take over.
INTERVIEW: Danish minister swipes at Merkel
'I don't think the 'wir schaffen das' mentality brought anything good to Europe,' Denmark's Immigration Minister Kaare Dybvad said, taking aim at Angela Merkel's iconic 2015 catchphrase – 'we can do it' – which came to define her open-door migration policy during the refugee crisis.
Speaking at a press conference during the informal EU Home Affairs Council in Copenhagen, which Denmark chaired, Dybvad distanced himself from the Merkel-era approach, signalling a shift in how Europe's centre-left is approaching migration.
In an interview with Euractiv, Dybvad said Europe's migration politics have undergone a 'gradual change,' and Denmark is no longer a lone centre-left voice pushing for tougher policies.
Germany's pivot has reshaped the debate, Dybvad said. There's "a big shift" in the balance between those who are for and against these new solutions and this change isn't limited to conservative or Eastern European governments. 'We're not alone anymore,' he added.
Growing ties with Japan
EU and Japan are set to launch a new Competitiveness Alliance, centred on strategic joint procurement of critical raw materials and closer business ties, according to a draft summit communiqué seen by Euractiv's Alexandra Brzozowski.
The pact marks a major step up in cooperation on economic security, industrial policy, and supply chain resilience, and is expected to be unveiled at Wednesday's summit in Tokyo.
Hours before the announcement, Trump, in a post on Truth Social, claimed that he had just struck a deal with Japan in which he would lower his bulky tariff threat on Japanese goods to 15% in exchange for a $550 billion investment into the U.S.
Commission sued over AI law retreat
German Socialist MEP Tiemo Wölken is taking the Commission to court over its decision to drop proposed laws on AI liability and patents.
The Commission's 2025 work programme revealed plans to withdraw both files, blindsiding lawmakers who were already deep into drafting positions.
Wölken told Euractiv's Maximilian Henning that he has repeatedly asked for documents from a key Paris meeting between Commission President Ursula von der Leyen and US Vice President JD Vance, which took place shortly after Vance publicly slammed the EU's AI rules. He has yet to receive a response, and is now taking the matter to the European Court of Justice. Read more.
What is competitiveness?
The Regulatory Scrutiny Board (RSB), an independent body in the Commission that performs quality control for proposed legislation, is unimpressed with the executive's plan to move defence, green, space and digital funds under a single €410 billion Competitiveness Fund (ECF) from 2028.
The Commission failed to define competitiveness, failed to show that the ECF would contribute to competitiveness, failed to 'consistently build on evidence,' failed to specify what failures the ECF is supposed to address, what costs or benefits it would create, what governance it would have, how it would link with other parts of the budget or how its performance would be measured, according to the RSB. 'The proposed objectives are not S.M.A.R.T.' they wrote.
Around the bloc
PARIS | France is pressing the EU to adopt a tougher stance in negotiations with the Trump administration over its threat to impose 30% tariffs. Retaliatory measures "must" be triggered if no agreement is reached by 1 August, Industry Minister Marc Ferracci said on Tuesday, after he chaired a meeting of the National Industry Council.
ROME | Deputy Prime Minister Matteo Salvini received the Italy-Israel Award on Tuesday at the Chamber of Deputies, praised by organisers for his 'bold and disruptive positions.' The award drew criticism from the Parliamentary Intergroup for Peace between Israel and Palestine, which called it 'a disgrace, not an honour' given the current geopolitical climate.
MADRID | In a visit to Montevideo on Tuesday, Prime Minister Pedro Sánchez called Uruguay Spain's most 'reliable partner' and voiced his support for the stalled EU-Mercosur deal.
He also highlighted Spain's investment leadership and announced new cooperation on trade, green energy, infrastructure, and sustainability.
WARSAW | Poland's Justice Minister Adam Bodnar has asked the European Parliament to strip the immunity of PiS MEP Daniel Obajtek to face allegations during his time as CEO of state oil company Orlen.
Obajtek is accused of giving false testimony and restricting the sale of a left-wing magazine at Orlen-owned outlets. He denies wrongdoing, claiming that recordings cited as evidence against him were doctored and the magazine's removal was warranted as it offended religious sentiment.
PRAGUE | Six Czech industry groups have called on Prime Minister Petr Fiala to push back against EU climate rules, warning that the Green Deal poses an existential threat to key sectors. In a joint letter, they link soaring energy prices to stalled decarbonisation projects and demanded urgent relief, as well as transparency on national energy policy. Read more.
ATHENS | Greek authorities on Tuesday detained Moldovan oligarch Vladimir Plahotniuc and former lawmaker Constantin Tutu at Athens airport on an Interpol red notice. Plahotniuc, who once led the Democratic Party and fled Moldova in 2019, has been accused of bank fraud, money laundering, participating in a criminal organization and corruption. Tutu, an associate of Plahotniuc, has been accused by Russia of trafficking drugs illegally, police said.
Also on Euractiv
Reality TV: Germany sizzles as 'woke mob' takes on 'Scheiß AfD'
Germany's annual 'summer interview' with the country's far-right leader goes veers off course
For three decades, the German's public broadcasters have invited political leaders to sit al fresco under the (usually mild) summer sun for interviews during the parliamentary recess.
Typically a harmless holiday trandition, this year's episode took a turn when activists disrupted an open-air interview with the AfD's de facto leader, Alice Weidel, reinforcing the party's victim narrative and sparking a torrent of criticism against both the broadcaster and authorities for failing to bring the situation under control.
Agenda
Ursula von der Leyen and António Costa attend EU-Japan summit in Tokyo
Coreper I and II meetings in Brussels
Day two of informal justice ministers' meeting in Copenhag
Entre nous
Italian MEP Matteo Ricci, Socialist frontrunner in Marche's regional race, is under investigation over public funds awarded without tender to two associations. 'I received a notice of investigation, and I'm surprised,' Ricci said in a video on social media, adding that he is not involved in the events.
'I've always trusted my team. I'm disappointed."
Contributors: Nick Alipour, Sarantis Michalopoulos, Magnus Lund Nielsen, Maximilian Henning, Anupriya Datta, Alexandra Brzozowski, Jacob Wulff Wold, Elisa Braun, Laurent Geslin, Alessia Peretti, Inés Fernández-Pontes, Aleksandra Krzysztoszek, Aneta Zachová, Catalina Mihai.
Editors: Christina Zhao, Sofia Mandilara, Vince Chadwick
