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GOOD MORNING and welcome back to work everyone! For those of you who totally logged off, let’s start with the big news: Spain’s PM Pedro Sánchez has called for snap national elections in July — yes, just when Spain takes over the presidency of the Council of the EU. I’ll have more analysis on that below.
This morning, ministers in charge of EU affairs will meet in Brussels to discuss long-standing headaches such as the rule of law and prepare for a leaders’ summit later in June.
In a more secretive meeting, ministers met for dinner last night at the Sofitel in Brussels, at the invitation of France’s Laurence Boone and her German counterpart, Anna Lührmann, attendees told Playbook. During the dinner, say two participants, ministers exchanged views on EU reform. Playbook’s mole tells me a French and a German expert shared their assessment on “the institutional reforms needed” before Ukraine and more countries can join the Union.
The cold shower: The EU would have to amend its institutional layout to make sure it could still take decisions after accepting more countries into the Union. Many countries also believe the EU would have to change the size and distribution of its budget — particularly its massive agricultural subsidies, of which Ukraine would otherwise absorb an estimated 25 percent due to its extensive farmland.
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SPAIN’S ELECTION BOMBSHELL 
SÁNCHEZ SNAP ELECTIONS CALL. WINNERS AND LOSERS: Spain’s Prime Minister Pedro Sánchez on Monday called a snap general election after his party took a beating during Sunday’s municipal and regional elections.
The decision took even his allies and ministers by surprise — Spain’s Foreign Minister José Manuel Albares had to dine and dash to get quickly to Madrid and participate in an extraordinary meeting of the cabinet.
Sánchez is now betting it all on July 23. In good-old Playbook fashion, here’s a quick take on the winners and losers of Sánchez’s bombshell decision.
WINNER 1: PEDRO SÁNCHEZ: The embattled prime minister, who was severely weakened by Sunday’s poor electoral showing, lives to fight another day. In a move right out of the political gambler’s handbook, he has prevented six months of further attrition and turned the snap election into a chance to rally the left.
WINNER 2: DEMOCRACY: After his party’s major defeat in local and regional elections that were partly seen as a referendum on his leadership, months of limbo ahead of the national election beckoned. “Even though [Sunday’s] elections had a municipal and regional scope, the results send a message that goes beyond that,” Sánchez said Monday.
In other words: Voters clearly were sending a message to Madrid, so they should be allowed to have a say on who sits in the Palace of Moncloa, the PM’s official office.
LOSER 1: THE EU: There’s no sugarcoating this, the rotating EU presidency — which Spain takes over from Sweden in July — was an afterthought in Sánchez’s decision. “Logistically and politically, having a national election just at the beginning of a presidency is a recipe for chaos,” said a senior diplomat from another EU country.
Switch unlikely: A spokesperson for Sánchez told Playbook that Madrid will carry on with the presidency as planned, refuting suggestions that Spain could switch turns with Belgium (which is next in line to take over the presidency).
Bear in mind: During the presidency, a country is not as much in the EU spotlight as holding the spotlight. Starting July, Spanish ministers will chair all Council formations, from agriculture to defense, while their bureaucrats will be in charge of writing drafts of EU laws and seeking compromises with their EU colleagues before deciding when to put the laws to a vote.
A change in government during those crucial six months of the presidency — which countries spend years preparing for — isn’t unprecedented, but is dreaded by the officials in charge of those preparations.
What those officials dread even more? A situation following the July election where the parties fail to form a government, leading to political standstill.
LOSER 2: THE RIGHT: The center-right Popular Party (PP) of Alberto Feijóo and the far-right Vox were banking on their victory Sunday to launch a campaign against the government’s political legitimacy.
Fear of far-right in government: Polls show that a majority of Spaniards loathe extremes and want to prevent a coalition government between the right and the far-right. Watching the PP form coalitions or governing pacts with Vox in city halls across the country in the coming weeks is likely to mobilize centrists and left-wingers.
In other words, Sánchez may achieve the holy grail (in election campaigning terms) of “asymmetrical mobilization” by getting out the vote among supporters across the center and left.
LOSER 3: SÁNCHEZ’S INTERNAL OPPONENTS: The knives were already out for Sánchez after Sunday’s major defeat. Rather than accepting an erosion of his party leadership, he is forcing his comrades to rally around him.
Preventing a split of the left: Podemos, the socialists’ far-left coalition partner, suffered a major defeat last Sunday and leaders already were toying with bringing down the government to distance themselves more from Sánchez’s center-left policies. Sumar, a new left-wing party led by labor minister Yolanda Díaz, also risked siphoning votes from Sánchez’s PSOE.
Now, Sumar and Podemos face a deadline of 10 days to decide whether to form an alliance for the upcoming election.
DISINFORMATION VS MEDIA FREEDOM
MODERATION VS CENSORSHIP: COUNTRIES NEGOTIATE MEDIA RULES: National envoys meet today in Brussels to agree a joint position on an EU law designed to guarantee media freedom, the EU Media Freedom Act.
Say RT without saying RT: The Media Freedom Act, in its current draft, contains a clause that protects all media from obligations for platforms to moderate or censor content. But there’s a caveat for state actors using bespoke media outlets to share disinformation.
Background: Platforms such as YouTube, Twitter and Facebook are obliged to remove factually wrong or unlawful content. Those obligations are enshrined in the EU’s Digital Services Act, the obligations of which come into effect in March 2024.
But the media clause, which Germany endorses, would mean that those platforms cannot restrict content from media outlets without consulting the affected media outlet first.
Disinformation loophole? “The main beneficiary of such a media exemption would be the Kremlin with its disinformation army, whose bread and butter it is to deceptively pose as media outlets on online platforms,” Felix Kartte with NGO Reset.Tech told Playbook. If the media exemption were adopted, Kartte argued, “tech companies would be forced to leave networks of disinformation outlets” on their platforms, “even if they push election related conspiracies, health misinformation or hate” speech.
Hang on: Social media platforms are leading distributors of election, health and conspiracy misinformation already, no?
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IN OTHER NEWS
POSTPONING HUNGARY’S PRESIDENCY: Momentum is growing to try and prevent Hungary from taking over the presidency of the Council of the EU as scheduled in July 2024. Parliamentarians and diplomats who oppose a Hungarian presidency cite PM Viktor Orbán’s attacks on individual freedoms and the rule of law, penchant for blocking EU legislation to secure concessions on unrelated files, and reports of corruption with EU funds.
Nascent discussions: EU affairs ministers will discuss options to postpone Hungary’s presidency on the sidelines of today’s general affairs council meeting, two officials told Playbook. The discussions are at a very early stage and ministers want to sound out how inclined their colleagues are to take such action against Budapest, one official added.
EPP spokesman backs action against Budapest: “During these unprecedented times, it is crucial that the Council is led by a country capable of upholding the strong collaboration among member states in decision-making, especially on issues such as sanctions against Russia or support for Ukraine,” Petri Sarvamaa, EPP group spokesman on budgetary control and issues related to rule of law, told Playbook.
“I have significant concerns regarding Hungary’s ability to fulfill this role, especially given that Hungary at the moment is in incompliance with EU law regarding the rule of law.”
UKRAINE FOOD CRISIS IN FOCUS: Ukraine’s agricultural minister Mykola Solskyi will attend today’s Agri Council in Brussels where controversy over the influx of Ukrainian agri imports will be high on the agenda.
Reminder: The European Commission reached a compromise with five eastern European countries after uproar from farmers over what they saw as a flooding of the EU market. But as part of the deal reached on April 28 to get the easterners on board, restrictions remained on four products — wheat, maize, rapeseed and sunflower seed.
Next steps: Solskyi is expected to argue strongly against the continued restrictions today, instead making the case for “sustainable solutions” in consultations where Ukraine has a seat at the table. He’s not the only one unhappy with the compromise. As previously reported by Playbook, 12 EU countries raised “serious concerns” in a strongly-worded letter to the Commission earlier this month.
GERMAN FAR-RIGHT SURGE: The far-right Alternative for Germany (AfD) is on the rise and has overtaken the Greens as the third-biggest political group in polls, Hans von der Burchard writes in to report. The AfD now polls at 17 percent, up from 9 percent a year ago, while the Greens have fallen from 23 percent last summer to 14 percent, POLITICO’s Poll of Polls shows.
Green deal backlash: The rise of the far-right party, which is gaining on Chancellor Olaf Scholz’s Social Democrats, which polls at 19 percent, is attributed to migration, but also to the same reason as the Greens’ decline: A public backlash over costly climate protection policies.
THE POWER OF THE PARTIES: Unsure of whether a Spitzenkandidat is a Viennese delicacy or something vaguely related to politics? Dive into this report by the Jacques Delors Institute which covers everything you need to know about the state of EU democracy including the increasingly important role of European Parliament political groups in shaping the positions of heads of state during European Council meetings.
NATO SOLDIERS WOUNDED IN KOSOVO CLASHES: NATO on Monday condemned an attack that left around 25 troops wounded. Tensions are running high in the region. The U.S., France, Italy, Germany, and the U.K. issued a joint statement Friday saying they are “concerned by Serbia’s decision to raise the level of readiness of its Armed Forces at the border with Kosovo and call all parties for maximum restraint, avoiding inflammatory rhetoric.” Read more from Lili Bayer.
UBER BEST FRIENDS: Uber has appointed Emma O’Dwyer — who made a name for herself negotiating deals with drivers’ unions in the U.K. — to oversee “labor relations” for all of Europe, the Middle East and Africa, my colleague Pieter Haeck reports this morning.
O’Dwyer is one of the architects of a 2021 deal that allowed the U.K.-based union GMB to negotiate on behalf of 90,000 workers. In an interview with Pieter, O’Dwyer explained the new approach. She’s now on WhatsApp with the top driver representatives in London to gain daily feedback. Uber is keen to extend this model to other parts of Europe, she suggested. Pro Technology subscribers can read the full story by Pieter here.
TRANSATLANTIC RELATIONSHIP GOES SCANDI NOIR: The people of Luleå, Sweden won’t know what’s hit them. The small industrial town on the edge of the Arctic Circle will today serve as the venue for a two-day summit of the EU-U.S. Trade and Tech Council, the two-year effort to revamp the relationship between Brussels and Washington following the Donald Trump era.
Swedish Prime Minister Ulf Kristersson will host U.S. Secretary of State Antony Blinken, as well as Commission Executive Vice Presidents Valdis Dombrovskis and Margrethe Vestager. Also there will be Gina Raimondo and Katherine Tai, the U.S. secretary of commerce and U.S. trade representative, respectively.
What’s it all about? You don’t have to wait for the official communiqué tomorrow. POLITICO’s Mark Scott has a sneak peek: Expect announcements related to artificial intelligence, sustainable trade, and electric vehicles and telecommunications standards. There are wins for Washington (on Brussels adopting some of its AI tools), and for the European Union (on the U.S. backing some of its new rules targeting online platforms). But EU and U.S. officials talked down the prospect of any earth-shattering announcements.
RAIDS ON UKRAINE: For a third night running, Russia targeted Kyiv overnight. Ukrainian defense forces said they shot down more than 20 drones during the latest wave of air attacks. One person was reported killed.
CENTRAL BANKING BONANZA: The European Central Bank is turning 25 — and POLITICO is launching our brand new Central Banker Pro vertical! For those nostalgic for the past 25 years, Johanna Treeck looks back at the 25 most exciting moments at the ECB.
And for those who just can’t get enough, we’re holding a Twitter Space to discuss how central banking has taken a political hammering in recent years. We’ll be joined by special guests including former Pimco boss Mohamed A. El-Erian, the Peterson Institute for International Economics’ Nicolas Véron, and global liquidity plumbing expert James Aitken. Our Editor-in-Chief Jamil Anderlini will give you the down-low on what’s to come from our new vertical, before our host, Senior Finance Editor Izabella Kaminska, takes the mic. Join us here at 3 p.m. CET
**POLITICO Pro Central Banker makes sense of the structural transformation of monetary policy in Europe. Start your free trial of Morning Central Banker, the daily newsletter of our brand-new policy coverage service, today! Click here.**
AGENDA
— General Affairs Council. Arrivals at 8:45 a.m. … session at 10 a.m. … press conference at 5 p.m. (approximately). Watch.
— Agriculture and Fisheries Council at 8:45 a.m. … session at 10 a.m. … press conference at 5:55 p.m. (approximately). Watch.
— Ceremony marking the 10th anniversary of the Emergency Response Coordination Centre (ERCC) and strengthened rescue firefighting aircraft. Press point with Commissioner Janez Lenarčič at 1 p.m. Watch.
— European Commission President Ursula von der Leyen receives Chairman of the World Economic Forum Klaus Schwab … receives MEP Daniel Caspary.
— European Council President Charles Michel meets Schwab at 10:45 a.m.
— European Parliament President Roberta Metsola will be in Bratislava, Slovakia to meet interim Prime Minster Ľudovít Ódor at 9:45 a.m. She’ll then return to Brussels to meet Deputy Prime Minister and Minister of Foreign Affairs of the Netherlands Wopke Hoekstra at 3 p.m., and Schwab at 3:30 p.m.
— HRVP Josep Borrell receives President of Montenegro Jakov Milatović … doorstep at 12:30 p.m. (Watch) … Receives Minister for Foreign Affairs of Indonesia Retno Marsudi … Receives Minister for Foreign Affairs of Malaysia Zambry Abd Kadir … participates in a conversation on ‘Global Digital Governance.’
— Commission Vice President Věra Jourová speaks via video conference at the Warsaw European Conversation conference, ‘Europe in times of non-peace: risks and trends.’
— Commission Vice President Margaritis Schinas participates in the Commission’s Sports & Innovation Summit in Brussels.
— Commissioner Jutta Urpilainen visits New York, to hold meetings with UN Secretary-General António Guterres and Deputy Secretary-General Amina Mohammed.
— Commissioner Virginijus Sinkevičius receives Spain’s Minister for Agriculture Luis Planas.
— Commissioner Mairead McGuinness meets with representatives of the National Farm Business Committee of the Irish Farmers’ Association (IFA).
BRUSSELS CORNER
BERLIN-BRUSSELS EXPRESS: The first new European Sleeper train between Brussels and Berlin departed last week — and POLITICO’s Cristina Gonzales and Joshua Posaner were among its passengers. Can we expect a revival of the overnight rail lines that once linked the Continent’s cities before the age of discount airlines? Read the full story from Hanne Cokelaere and Joshua here.
HOSPITAL STRIKE: Staff at the Brussels Iris Hospitals — a network of hospitals in Brussels — will strike today to demand better working conditions and more resources. They will gather at 7:30 a.m. to march to Place De Brouckère at 10 a.m. and continue to the office of city Health Minister Alain Maron. As a result, the affected hospitals — CHU Brugmann, CHU Saint-Pierre, Iris Hospitals South, child hospital HUDERF and Institut Jules Bordet — will be operating with reduced service.
NEW JOB: Theodore Pelagidis, deputy governor of the Bank of Greece, was appointed as minister of finance of Greece’s interim government until new national elections on June 25.
BIRTHDAYS: Slovakia’s Permanent Representative to the EU, Ambassador Petra Vargová; Finnish politician Timo Soini; MLex’s Fiona Maxwell; Journalist David Shukman; Former Chief Rabbi of France Gilles Bernheim; VeloNews’ AndrewHood; Scientist and writer Sheila Ali-Oston; Christian Skrivervik of the European Movement International.
THANKS to Suzanne Lynch, Mark Scott, Hans von der Burchard, Lili Bayer, Nicholas Vinocur, Playbook reporter Ketrin Jochecová and editor Joe Stanley-Smith.
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