EIB president visits Ukraine, bearing gifts – POLITICO

EUROPEAN OFFICIALS IN UKRAINE       

EXCLUSIVE — EIB PRESIDENT IN KYIV: European Investment Bank President Werner Hoyer visits Kyiv today for his first trip to Ukraine since Russia’s war started — he’s set to announce a new package of financing, Playbook can report.

On the agenda: Hoyer will meet President Volodymyr Zelenskyy, Prime Minister Denys Shmyhal and other officials, according to an official close to Hoyer.

New package announced: Hoyer and the EIB’s Vice President Teresa Czerwińska will today announce a host of new reconstruction projects that will be financed by the bank’s special EU for Ukraine fund, which is backed by contributions from EU countries and the Commission.

‘Unwavering support’: “This visit, amid Russia’s ongoing invasion and attacks against Ukraine, its infrastructure, and its citizens, is a reminder of our unwavering support … the EU bank stands steadfast at Ukraine’s side,” Hoyer told Playbook in a written statement.

**A message from Equinor: Carbon Capture and Storage (CCS) is one of the solutions needed to achieve our global climate goals according to the IEA and the UN International Panel on Climate Change (IPCC).**

Regional hub: Hoyer will also inaugurate a new regional hub for the bank that will be housed in the office of the EU delegation in Kyiv. “After the 10th anniversary of the Euromaidan protests, today’s inauguration … will allow to further help with the country’s reconstruction and to accompany it on its European path,” the statement said.

ALSO IN KYIV — VP JOUROVÁ: Commission Vice President Věra Jourová is also in Kyiv today, an official close to Jourová told Playbook. Her visit, meant to show Brussels’ continued political support for the country, comes as the EU’s Ukraine policy risks being derailed by Hungary’s leader Viktor Orbán.

Background: With less than three weeks to go before the next European Council meeting, where leaders will want to give their backing to opening EU accession talks with Ukraine, Orbán has thrown a spanner in the works by threatening to block any decision on EU enlargement. Orbán is also standing in the way of a key €50 billion fund meant to guarantee EU aid for Kyiv for years to come.

Keeping course on EU accession: The official said Jourová will hold talks on “enlargement” today with Ukrainian counterparts, but she will also meet Ukrainian anti-corruption officials — as the fight against corruption is one of Brussels’ key pre-conditions to opening accession talks.

Making Russia pay: Jourová will also speak about efforts to confiscate Russian assets to force Moscow to pay for at least some of the country’s reconstruction costs.

On Western support for Kyiv: “Rather than counting on Ukraine to regain most or all its territory through military means, focus must shift to securing Ukraine’s future in the West,” Ivo Daalder, former U.S. ambassador to NATO, writes in an opinion article for POLITICO. “Washington and key European allies should therefore consider providing Ukraine — or at least the territory it now controls — with an immediate and binding bilateral security guarantee,” he argues.

EU BUDGET BUST-UP       

COUNTRIES CLASH OVER EU BUDGET REVIEW: The Spanish presidency has the tricky task of leading the review of the EU budget — which is sorely needed to provide cash for Ukraine. Last Thursday, Spain circulated an initial draft, seen by POLITICO. And … everyone hated it.

Muscle flexing: Not surprisingly, both the frugal and the spendthrift member countries criticized the proposal. Capitals on both sides of the divide are flexing their muscles as the clock ticks. Countries need to strike a deal before next March to continue funneling aid to Ukraine — which risks going bankrupt without the extra EU cash.

Recap: The Commission asked for €66 billion in additional funds from EU capitals to cover, among other things, its continued support to Ukraine, higher interest rates on post-pandemic cash, and fresh money for migration deals with foreign countries. 

The usual divide: While all EU countries (except Hungary) agree on the need to continue supporting Ukraine, several national capitals are less keen on handing extra money to Brussels for everything else. There is a divide between Northern and some Eastern European countries, led by Germany, who want the EU executive to finance its new priorities by saving cash from other areas of the budget, and Southerners who would like to stick to the Commission’s proposal. 

Three options: On Thursday, Spain proposed three cuts of different proportions to the Commission’s current budget that would save, respectively €5 billion, €10 billion and €20 billion, according to a document seen by POLITICO’s Gregorio Sorgi. But much to the disappointment of the frugals, the Spanish plan excluded cuts to the EU’s agriculture program and cohesion funding — two major chunks of its budget.   

Less is more: According to the frugals, the Spanish proposal does not go far enough. “[The Commission and Presidency] now exclude 2/3 of the budget a priori by saying that cohesion funds and CAP are untouchable,” said an EU diplomat. “If we really need to save money, we can’t exclude 2/3 of the MFF budget from the scope.”

In the other camp: Countries such as Italy are calling on national capitals to set priorities within the EU’s current budget before identifying potential cuts. EU ambassadors are expected to continue haggling on the matter right up until the European Council meeting in mid-December.

BRAZIL IN BERLIN       

LULA TO VIST BERLIN: Brazilian President Luiz Inácio Lula da Silva is coming to the German capital next Monday, along with around 10 of his ministers, for the second German-Brazilian government consultations, Hans von der Burchard writes in to report from Berlin.

Bem-vindo: The meeting comes after Chancellor Olaf Scholz pushed to revive the bilateral cabinet meeting which took place for the first and only time in 2015, under former Chancellor Angela Merkel. Brazil has become a much more appealing partner for Germany after former right-wing populist President Jair Bolsonaro was voted out of office last year. 

Mercosur hopes: Berlin is pushing to swiftly finalize the EU’s trade and political agreement with the South American Mercosur bloc, ideally before Argentina’s new right-wing libertarian president Javier Milei comes into office and threatens to blow up the talks.

Still, it isn’t easy: But Brazil’s Lula hasn’t always proven to be the close and reliable ally that the Germans and Europeans want him to be. Back in January, Scholz and the Brazilian leader traded barbs over who’s to blame for the war in Ukraine. Lula also isn’t planning to visit Brussels.

FOCUS ON GREECE       

SCOOP — GREEK GOVERNMENT AVERTS FINE IN SPYWARE SCANDAL: In the latest twist in Greece’s spyware scandal, the country’s privacy watchdog, the Authority for Communication Security and Privacy (ADAE), voted against imposing a fine against the state spy service, Nektaria Stamouli reports.

How to end an uncomfortable investigation: The decision comes after the government abruptly installed new board members of the “independent” authority, shifting the watchdog’s composition to effectively put an end to ADAE President Christos Rammos’ efforts to shed light on the spying scandal.

Spy service wins: Under a proposal from Rammos, ADAE would have imposed a €100,000 fine against Greece’s spy service for withholding crucial evidence in the case. However, ADAE board members rejected Rammos’ proposal.

Background: The spy service, which reports to Prime Minister Kyriakos Mitsotakis, was accused of spying on opposition politicians and journalists. Last week, the European Parliament slammed the EU’s “insufficient” response on curbing spyware abuses in the Union and criticized the Commission’s failure to follow-up on proposals put forward by MEPs.  

ELGIN MARBLES: Meanwhile, Mitsotakis will raise the issue of the return of the Parthenon Marbles to Greece during his meeting with his British counterpart Rishi Sunak in London on Tuesday.

Thinking ahead: Mitsotakis will also discuss the issue with U.K. Labour Party leader Keir Starmer on Monday who, according to the Financial Times, says that he wouldn’t block a potential agreement that would see parts of the sculptures loaned to Greece should he become prime minister. The ancient sculptures were taken from the Parthenon to Britain in the 19th century and are currently displayed at the British Museum.

No progress yet: “We have not made as much progress as I would like in the negotiations,” Mitsotakis told the BBC on Sunday. “I’m a patient man, and we’ve waited for hundreds of years, and I will persist in these discussions,” he added. In March, Sunak ruled out any change to current legislation that stops the British Museum handing the marbles back to Greece permanently. The legislation does not prohibit a loan.

**What will the future of Europe’s connectivity look like? Join us this week at POLITICO Live’s event “Connectivity for all: EU’s vision for a competitive sector” and hear our panel speakers discuss the Digital Decade 2030 targets. Register today to watch online!**

GULF STATE INFLUENCE       

TAKING BACK CONTROL? UK CONSERVATIVES FACE PROSPECT OF MOUNTING GULF INFLUENCE: Rishi Sunak’s government is fighting off calls to stop the sale of Britain’s Daily Telegraph and the Spectator — two publications cherished by his party’s supporters — to an investment group backed by Abu Dhabi’s ruling family.

In a bind: The proposed takeover of the titles by Redbird IMI, an investment vehicle controlled by Abu Dhabi’s sovereign wealth fund, has sparked fierce resistance from some Conservative MPs, with many pointing to the UAE’s poor domestic record on press freedom. But the potential deal comes just as Sunak’s government seeks to attract more investment from Gulf states.

Abu Dhabi-upon-Thames: Britain’s Investment Minister Dominic Johnson told POLITICO the U.K. needs to remain an “open economy” and argued people should not get “sentimental” about the sale of the publications. But Sunak’s Culture Secretary Lucy Frazer last week said that she was “minded” to launch an official review into the deal.

Gotta love autocracies if you want their cash: Johnson, who will welcome senior figures from the UAE and other Gulf states at today’s Global Investment Summit in London, said “the UAE is a first class and extremely well run country” and that he had “always been immensely impressed by the caliber of leadership there.” My colleague Stefan Boscia has more.

INSIDE SAUDI ARABIA’S CAMPAIGN TO HOST THE 2030 EXPO: Delegates from 182 countries are meeting in Paris on Tuesday to decide which city will host the glitzy 2030 World Exhibition. For Saudi Arabia, which is competing against Italy and South Korea, the campaign to host the Expo has turned into one of its biggest diplomatic offensives, with lavish parties in Paris, infrastructure deals in Africa and billions of dollars of investments.

Behind the billboards: In the Expo race, the vote of the Cook Islands or Lesotho has same weight as the U.S. or China, meaning that candidate countries have been carrying out a worldwide charm offensive — a poker game in which Saudi Arabia has gone all-in. My colleagues Giorgio Leali and Paul de Villepin have a fascinating read on how Saudi Arabia’s Crown Prince Mohammed bin Salman has turned the bid into a major attempt to rebrand his country.

**Last chance to register! POLITICO Live’s event “The housing crisis: The evolving landscape” is happening next week on Tuesday to discuss where the U.K. housing sector finds itself today and what needs to change. Register today to join us online!**

IN OTHER NEWS       

GERMANY CHOKES ON ITS OWN AUSTERITY MEDICINE: This month’s jaw-dropping Constitutional Court ruling against Germany’s use of “special funds” to prop up the country’s budget has effectively rendered the core of the German government’s legislative agenda null and void. And it has left the country in a collective shock, my colleague Matt Karnitschnig reports. A week after the decision, both the magnitude of the ruling and the reality that there’s no easy way out have become increasingly clear.

ISRAEL’S TRAUMA: “Benjamin Netanyahu is not a brave leader,” Tamir Pardo, a former director of the Mossad intelligence agency, tells my colleague Jamie Dettmer. “To make hard decisions for war or for peace, you have to be brave, and he isn’t, and he panics,” Pardo says. More than a month after the Hamas attacks, Pardo is still analyzing October 7 and drawing conclusions. Read more here.

LESSONS FROM LONDON: London Mayor Sadiq Khan has faced death threats since introducing an expanded clean air zone in the city, which charges highly polluting vehicles a fee to travel into central parts of the U.K. capital. As cities across Europe grapple with the question of how to stem emissions and pollution, POLITICO’s Karl Mathiesen spoke to Khan about what he learned when he took on London’s cars.

AGENDA       

— Foreign Affairs Council (Trade). Arrivals and doorsteps at 8:30 a.m. … press conference at 2:30 p.m. Watch.

— Employment, Social Policy, Health and Consumer Affairs Council. Arrivals and doorsteps at 8:30 a.m. … press conference at 5 p.m. Watch.

— High Representative Josep Borrell is in Barcelona, Spain; co-chairs the Regional Forum of the Union for the Mediterranean … delivers opening remarks at 9:30 a.m. … press conference with Spanish Minister for Foreign Affairs José Manuel Albares Bueno, Jordanian Deputy Prime Minister Ayman Safadi and Secretary-General of the Union for the Mediterranean Nasser Kamel at 1 p.m. Watch.

— The Committee on Economic and Monetary Affairs hosts a Monetary Dialogue with President of the European Central Bank Christine Lagarde from 3 p.m. Watch.

— Commission Vice President Maroš Šefčovič receives Slovakia’s Minister of Justice Boris Susko … also receives Branislav Ondruš, state secretary of the Ministry of Employment and Social Affairs of Slovakia.

— Commissioner for International Partnerships Jutta Urpilainen receives Colombian Minister of Foreign Affairs Álvaro Leyva Durán … also receives Finland’s Minister for Climate and Environment Kai Mykkänen.

— Commission Vice President Věra Jourová visits Kyiv.

BRUSSELS CORNER       

TODAY AT THE DUTCH EMBASSY: The Dutch Permanent Representation in Brussels today invites passers-by to stop in to support action on violence against women. “Drop by the Dutch Permanent Representation to sign an orange peace stone, because we think girls rock,” a spokesperson texted Playbook, asking to spread the word.

On brand: The peace stones are orange, matching the U.N.’s Orange the World campaign which seeks to end violence against women and girls — but of course it’s also the national color of the Netherlands. “For those braving the weather to join us around lunchtime, we will be serving a warm cup of soup,” the spox added.

March against gender-based violence: Around 2,600 people, according to police, marched in Brussels on Sunday to mark International Day for the Elimination of Violence Against Women, which was on Saturday. Brussels Times has the photos.

BRUSSELS VS. AIRBNBS: Areas in Brussels with a higher concentration of Airbnbs tend to have higher rental prices, a study has found. The findings by researchers from VUB suggest that for every Airbnb per 100 households, there is an average increase of 1.6 percent in the local rental market. More from Brussels Times.

SNOW WONDER: The Royal Meteorological Institute issued a yellow alert for snow and slippery conditions for parts of Liège and Namur, with up to 10 centimeters of snow expected on higher ground. More details here.

BIRTHDAYS: MEP Arba Kokalari; Former MEPs Rachida Dati and Werner Langen; Libération’s Jean Quatremer; Rud Pedersen’s Simon Taylor; Ismail Omar Guelleh, president of Djibouti.

THANKS to Gregorio Sorgi, Hans von der Burchard, Giorgio Leali, Nektaria Stamouli, Stefan Boscia, editor Jack Lahart and producer Seb Starcevic.

**A message from Equinor: Equinor has decades of experience safely storing CO2 in the Norwegian North Sea, and we are now pursuing new business models to make CCS commercially viable in the decarbonised Europe of the future. The Northern Lights project will start storing CO2 in 2024, and the new Smeaheia license has the potential to store 20 million tonnes of CO2 annually, which we would like to transport to Norway from Belgium and Germany through a new pipeline connection.**

SUBSCRIBE to the POLITICO newsletter family: Brussels Playbook | London Playbook | London Playbook PM | Playbook Paris | POLITICO Confidential | Sunday Crunch | EU Influence | London Influence | Digital Bridge | China Watcher | Berlin Bulletin | D.C. Playbook | D.C. Influence | All our POLITICO Pro policy morning newsletters