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EU
The EU is revising the Tobacco Taxation Directive, proposing a 139 per cent increase in minimum excise duties on cigarettes. This overhaul also aims to establish EU-wide minimum taxes on vapes, heated tobacco products, and nicotine pouches, marking the most significant change in tobacco taxes in over a decade.
Wildfires are raging across Belgium, Germany, France, Croatia, Spain, and Greece amid extreme heat and dry conditions. In Belgium, a major blaze has consumed 3,000 hectares in the High Fens reserve, prompting the deployment of over 250 firefighters and international aid through the EU Civil Protection Mechanism.
Two Spanish F-18 fighter jets intercepted and destroyed an unidentified drone in Romanian airspace early on Sunday, 24 kilometres north of Galati. Defence Minister Miruta confirmed the incident, highlighting Romania’s role in the European Union’s defence and the importance of vigilance amid ongoing tensions with Russia and Ukraine.
The European Commission has downgraded its 2026 growth forecast for the EU economy to 1.1%, citing increased energy prices due to the Middle Eastern conflict. The eurozone outlook fell to 0.9%, reflecting risks from global energy market disruptions and escalating inflation, now expected to reach 3.1%.
EU STRATEGIES
This morning, Europe focuses on cooperation and resilience amid ongoing geopolitical tensions and economic challenges.
Key developments include trade negotiations and energy strategies.
Concerns about Europe’s security strategy intensify amid ongoing debates in the European Parliament over military spending. MEPs Lukas Mandl and Marc Botenga expressed starkly opposing views on investing billions in defence amidst geopolitical tensions, particularly Russia’s actions in Ukraine, highlighting Europe’s shifting military priorities.
Lithuania’s capital Vilnius was temporarily shut down due to a potential drone incursion on Wednesday, reflecting heightened tensions along NATO’s eastern flank amid ongoing conflicts. The incident prompted airport closures and evacuations of key government figures, as well as strong condemnations from European leaders regarding Russia’s actions.
The European Commission has retained its carbon border tax in a new plan for fertilisers, aimed at supporting farmers despite rising costs linked to carbon pricing. Commissioner Christophe Hansen stated the importance of maintaining competitiveness against cheaper imports while acknowledging the financial pressure on agriculture and food prices.
Former German Chancellor Angela Merkel received the European Order of Merit on Tuesday. In her acceptance speech, she emphasised that Europe can no longer assume peace and security, highlighting concerns over Russia’s invasion of Ukraine and shifting US security policies that indicate a loss of established certainties.
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