Russian drone crashes into Romanian apartment building, injuring two

Hello readers. Angela Skujins here ringing out the week with your Friday newsletter.

Before we dive in, news broke early this morning that a Russian drone crashed into an apartment building in eastern Romania, injuring two people.

“These are not mistakes – these are provocations,” Polish Undersecretary of State at the Ministry of Economic Development and Technology Michał Baranowskijust told EU News’ Europe Today programme.

“We are no longer in peace,” he added, referring to the drone incursions in his country last year, as well as the others rocking the Baltics in recent weeks. Watch.

The big stories driving Brussels’ agenda today is how the bloc decides to speak to Beijing over thorny trade disputes, and the closely watched – and now confirmed – meeting between Hungarian Prime Minister Péter Magyar’s European Commission President Ursula von der Leyen.

The Brussels-Beijing trade beef. The EU’s 27 Commissioners will meet today for a debate on EU-China trade relations. “You know what the approach is to China,” European Commission Chief Spokesperson Paula Pinho told reporters on Thursday about the talks. “We diversify our relationship. We de-risk. We do not decouple.”

The meeting comes days after several of the EU’s largest economies – France, Spain, Italy, the Netherlands, as well as Lithuania – issued a non-paper urging the EU to crack down on Chinese overcapacity and unfair trade practices.

Germany, on the other hand, as reported by Peggy Corlin and Franziska Müller, is attempting to court the superpower – and wants the bloc to pump the brakes on a potential tougher stance.

A diplomatic source speaking to EU News said the meeting is expected to result in some takeaways but there should be no expectations. Each Commissioner will be asked to bring a contribution from their field, with a possibility for the dialogue to continue at next month’s European Council meeting in the Belgian capital.

The responses discussed are expected to include cutting the EU’s dependence on Chinese components to triggering the EU’s trade bazooka, also known as the anti-coercion instrument.

Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné didn’t mince words on Thursday speaking about how China became a market leader. China’s “industrial domination” is no accident, he said at a Competition Council in Brussels.

“It is the outcome of decades of state subsidies and non-reciprocal market access. China now produces more than 50% of steel globally, 50% of batteries (and) over 90% of PV (photovoltaic) solar energy used in the EU,” he said.

Europe is under pressure because Europe’s competitors are “no longer bound by rules of the game”, Séjourné warned.

The VDL-Magyar meet-up. “We have arrived in Brussels for the most important talks of recent years,” Hungarian Prime Minister Péter Magyar posted on social media platform X on Thursday.

The recently-minted prime minister will meet the head of the EU executive, European Commission President Ursula von der Leyen, at around 1pm to discuss how to release €10 billion in EU recovery funds before a firm August deadline.

The Fidesz politician swept to power at an April parliamentary election, making releasing the cash a key pillar of his election campaign. These funds, and others, were frozen due to rule of law concerns from 16-years of Viktor Orbán’s rule.

As Sándor Zsíros reports, Budapest has made some progress regarding the cash envelope. This includes conditions relating to the governance of public-interest foundations and extending the mandate of Hungary’s anti-corruption body, the Integrity Authority.

But Magyar has asked the Commission to show flexibility on issues involving constitutional questions.

As a side note, NATO Secretary-General Mark Rutte posted a photograph on social media of the duo smiling and shaking hands following a meeting on Wednesday. While the exact content of the conversation is under wraps, and a press conference between the pair cancelled, Rutte said Hungary has made a valuable contribution to the military alliance for over 27 years.

The press were thrown some kind of bone, though, as zany social media posts from Magyar meeting with Belgian Prime Minister Bart de Wever spotlight the Belgian leader’s grey cat, Maximus.

Five arrested as Portuguese police investigate alleged corruption within Socialist Party

Portugal’s judicial police (PJ) on Thursday carried out raids targeting an alleged corruption “network” working within the Socialist Party’s (PS) local government power base.

A source in the PJ confirmed the operation to EU News and later stated in a press release that five arrests had been made and 37 individuals named as suspects, Barbara Cruz reports.

“The Judicial Police, through the National Anti-Corruption Unit, is conducting a police operation to execute 60 search warrants for residences and 32 search warrants for non-residential premises in the areas of Lisbon, Mafra, Oeiras, and Coimbra, investigating the crimes of malfeasance and economic participation in business, involving the awarding of various contracts by municipal councils and parish councils,” the PJ’s statement reads.

“At issue are direct award procedures or prior consultation processes, in clear violation of applicable legal norms and with evident harm to the public treasury,” it added.

Read more.

EU regional funds can be used to address energy crisis, Commissioner Fitto says

The EU’s cohesion funds, the bloc’s financial instrument for reducing territorial disparities in its poorest regions, could be deployed to mitigate the impact of soaring energy prices, European Cohesion Commissioner Raffaele Fitto said in a letter to ministers on Thursday.

“It is critical to ensure these readily available EU funds are fully deployed in time to benefit the regions and communities that need them most, particularly in the context of the current energy price developments,” reads the letter, seen by EU News.

As reported by Luca Bertuzzi, Fitto’s letter comes as several EU countries, including his own Italy, have been grappling with the economic fallout from the War in Iran, which has driven up energy costs across Europe and beyond by disrupting Gulf supply routes.

The letter specifically notes that member states and regions can already direct funding toward energy-related investments, “for instance, by scaling up existing measures to support families and businesses, reducing energy consumption.”

Fitto’s argument echoes Italian Prime Minister Giorgia Meloni, who last week sent a letter to European Commission President Ursula von der Leyen calling for energy security to be treated as a European strategic priority, and for the same fiscal flexibility recently extended to defence spending to apply to energy.

The Commission’s Executive Vice-President for Cohesion and Reforms belongs to Meloni’s ruling party, the right-wing Brothers of Italy.

As part of the mid-term review of EU cohesion policy, Fitto drove through amendments enabling member states and regions to redirect funds toward emerging challenges such as defence, decarbonisation and affordable housing.

Read more.

More from our newsrooms

Artists pull out of Trump-backed concert for America’s 250th birthday

While a cage fighting ring is being built on the White House lawn, a new event celebrating the 250 years of the US is set to take place at the National Mall in Washington, DC. The line-up has been called “a parody”, and some acts have already pulled out. David Mouriquand has the details.

El Niño may stretch into 2028

Temperatures will likely surpass what is considered internationally safe in the next five years, according to new United Nations climate projections. Liam Gilliver has more information on the forecast.

Machu Picchu over tourism: A bucket list ‘dream’ is turning into a ‘nightmare’ for visitors

A global heritage foundation has offered to work with Peruvian authorities to improve conditions at Machu Picchu as tourists face overcrowding, long queues and transport problems. Michael Starling takes a closer look at the Incan conundrum.

We’re also keeping an eye on

• European Commissioners hold an “orientation debate” on the bloc’s response to Chinese industrial over-capacity and assertive trade policies.
• EU ministers in charge of the economy, the internal market and industry gather for a Competitiveness Council in Brussels.