You are reading the Reporter on Friday, June 12. This is it Nikoletta Iontawith Eddy Wax in Brussels.
Need to know:
🢢 Exclusive: Kallas compared Israel’s behavior to apartheid
🢢 Wealthy capital cities revolt over budget plans
🢢 The EU migration master plan comes into force
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From the capital
The EU’s diplomatic arm suffered what can only be described as a near-death experience on Thursday – at least according to media reports – swinging from imminent disintegration to possible strengthening within a single news cycle.
Kaja Kallas, head of the EEAS, quickly continued to PROTECTIONissuing calls for unity after reports that French officials were exploring ways to overhaul the way the bloc’s outer wing is structured and operates.
Kallas has already had a politically charged tenure at the helm of the EU’s foreign service, navigating tensions with Ursula von der Leyen over visibility, taking an ultra-hawkish line on Russia and taking thanks for the comments perceived as out of step with her fellow commissioners and key EU positions.
The rapporteur may reveal further comments from Kallas that are likely to intensify scrutiny of her leadership at a time of heightened institutional sensitivity.
Kallas compared Israel’s treatment of Palestinians to apartheid-era South Africa during high-level talks in Mexico City, according to officials and diplomats who spoke to my colleagues Sarantis Michalopoulos and Magnus Lund Nielsen.
The remarks would mark a departure from the official EU foreign policy line.
“The EU is critical of Israel and supports a two-state solution. The comparison with apartheid is unacceptable and not EU policy. It is a big problem if she makes these kinds of statements while officially representing the EU on the world stage,” an EU diplomat said.
It also comes as Kallas tries to secure Council support for further measures against Israel – from restricting trade with illegal West Bank settlements to sanctioning Minister of National Security Itamar Ben-Gvir.
Kalla’s office was reached for comment Monday but declined to confirm or deny the account. Read the full story.
Budget hawks take out their knives
Fresh expenditure figures for the EU’s 2028-2034 budget have prompted an immediate backlash from net contributing countries, which argue that they are being asked to fund an ever-growing wish list.
The Dutch finance minister dismissed the proposal as a “forbidden box”, while Sweden’s EU affairs minister said she had expected the Cypriot presidency’s plan to be “more in line with reality”. A diplomat from a net contributing country said it was “not the basis for an agreement”.
The draft framework envisages a “moderate” cut of 2% – about €33 billion – on the Commission’s €1.76 trillion proposal from last summer, reports my colleague Victoria Becker.
EU ambassadors will receive the figures on Sunday, followed by European affairs ministers on Tuesday, before leaders confront the issue at next week’s European Council summit. Read the full story.
The first stress test for the EU migration pact
The EU’s flagship migration pact comes into force today, but doubts remain over whether some national governments are ready.
Some EU countries are struggling to meet its comprehensive legal and technical requirements, with Hungary among the countries lagging behind. This has raised questions about whether Brussels will have to crack down on non-compliant capitals.
Asked whether the Commission would use “sticks” to bring Hungary into line, Migration Commissioner Magnus Brunner told the Reporter on Wednesday that the pact already contains incentives and penalties. “There are sticks and carrots in the pact. So you get funding, you get money, only if you implement the pact,” he said.
Péter Magyar, Hungary’s prime minister, once staunchly opposed to the EU’s migration pact, is now keeping his options open. Pushed by the opposition Fidesz to rule out enforcement, he sidestepped the question, saying only that “there will be no illegal immigrants in Hungary” under a Tisza government.
Brunner, however, signaled confidence in Hungary’s new leadership. “I think the new government is very constructive,” he said. “Our task is to explain the advantages for Hungary and make them visible on a political level.”
Bardella’s vision for the EU
Jordan Bardella used an appearance in Brussels on Thursday to outline his nationalist vision for Europe, arguing that the bloc needs a political reset rather than incremental reform.
The National Rally leader called for von der Leyen to step down, accusing her of being responsible for “the decline in which European nations are today”. He also suggested that a future French government led by Marine Le Pen or himself would seek to reshape the EU from within.
Bardella further argued that France’s status as one of the bloc’s biggest budget contributors should translate into greater influence in EU decision-making. Read Eddy’s full story.
A storm of (fiscal) criticism
Several EU finance ministers criticized Brussels’ proposal to ease the bloc’s fiscal rules during last night’s Eurogroup meeting.
Speaking afterwards in Luxembourg, Valdis Dombrovskis, the EU’s economy commissioner, said ministers warned that the proposed relief – designed to soften the economic fallout from the Iran conflict – could undermine fiscal sustainability and even “overrun” defense spending.
Germany, France, the Netherlands, Finland and Estonia were among those that raised concerns, officials told my colleague Thomas Moller Nielsen. Italy and Spain supported the measure.
IMF chief Kristalina Georgieva, who joined the meeting, echoed these concerns. Her message to heavily indebted governments: “Please, please, please… be very careful not to spend money you don’t have.”
The Swiss referendum threatens relations with the EU
Brussels will be watching closely as Swiss voters head to the polls this weekend for a referendum that could upend most deals with its European neighbours.
The initiative, framed by supporters as a push for sustainability, aims to curb immigration and limit Switzerland’s population to 10 million people. If passed, experts warn it could unravel parts of Bern’s wider package of deals with Brussels and affect around half a million Swiss citizens living in the EU.
Polls point to a close race, albeit with a slight tilt for the “No” camp. Read the full story of Magnus Lund Nielsen.
Here are three new stories from Euractiv:
Capitals
PARIS 🇫🇷
France’s 2027 presidential election faces “serious threats” from foreign interference, Prime Minister Sebastien Lecornu warned on Thursday, saying “any candidate and any party could be targeted”. The warning comes after several destabilizing campaigns linked to the recent local elections. Lecornu also noted the rise of “digital mercenarism” — cyber operations set up not only to influence politics but also to advance private or financial interests.
– Elisa Brown
BERLIN 🇩🇪
Germany’s parliament has again trimmed the wings of the defense ministry’s procurement plans, reducing the request for 900 fuel tanks after lawmakers objected to the price. The budget committee approved just 300 units, citing a sharp increase from a comparable contract five years ago. The opposition echoes concerns elsewhere in Europe, with Romania warning that some suppliers had raised prices by 30% following the launch of the EU’s SAFE defense loan scheme. Read the full story.
– Kjeld Neubert
London 🇬🇧
British Defense Secretary John Healey resigned on Thursday over a dispute over military spending, warning that Keir Starmer’s delayed defense investment plan risked leaving the country “less secure”. Armed Forces Minister Al Carns and Healey’s aide Pamela Nash also left. Dan Jarvis, a former army officer, was appointed defense secretary as the departures intensified pressure on Starmer ahead of a crucial second election.
– Christina Zhao
Rome 🇮🇹
Italy is preparing a comprehensive overhaul of its armed forces that would expand the number of personnel to 40,000 by 2033 and create a new multi-layered reserve system, according to a bill first seen by Euractiv. The reform would allow the rapid mobilization of reservists during major crises, as Rome seeks to bolster preparedness even as it is said to weigh reducing its request for SAFE loans. Read the full story.
– Pietro Guastamacchia
STOCKHOLM 🇸🇪
Sweden Democrat politician Stina Isaksson has been expelled from the far-right party after distributing multilingual leaflets urging migrant families to “stop social services from taking your children”. The campaign, published in Swedish, Arabic, Somali and Albanian, drew criticism for echoing the LVU 2021 disinformation campaign. Isaksson apologized for the “sloppy” leaflets but denied spreading misinformation. She will keep her regional and municipal mandate as an independent until the end of the year.
– Charles Szumski
Sofia 🇧🇬
President Rumen Radev said on Thursday that Bulgaria has “already given enough” military aid to Ukraine, confirming a ban on further donations of weapons and ammunition from army stockpiles. Defense Minister Dimitar Stojanov said that exports from the Bulgarian defense industry will continue. Since 2022, Sofia has approved 13 military support packages for Kiev, many reimbursed through the European Peace Fund. The move comes ahead of next week’s EU summit, where support for Ukraine is expected to be discussed.
– Konstantin Karadjov
NICOSIA 🇨🇾
The EU has signaled it is ready to take part in Cyprus reunification talks, defying calls from the Turkish-controlled north to keep Brussels out of the process. A European Commission spokesman said the bloc was ready to play an “active role”, reaffirming support for reunification under a bizonal, bicommunal federation, while UN-led diplomacy shows preliminary signs of revival. Read the full story.
– Sarantis Mikalopoulos
Contributors: Victoria Becker, Magnus Lund Nielsen, Sarantis Michalopoulos, Thomas Moller Nielsen, Mátyás Varga, Elisa Braun
The editors: Christina Zhao, Sofia Mandilara, Charles Szumski
