BRUSSELS — U. S. Vice President JD Vance has hit out at the EU’s digital rules enforcement, saying the EU should not be “attacking American companies over garbage.” “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage,” Vance wrote on X overnight. X owner Elon Musk immediately thanked the U.S. official, commenting, “Much appreciated.”  The European Commission opened formal proceedings against X under its Digital Services Act in December 2023, roughly a year after Musk bought Twitter and rebranded it as X. But the EU has yet to finalize its probe, after accusing X of breaching its obligations around transparency and blue checkmarks in preliminary findings in July 2024. A decision could come as early as Friday, according to media reports Thursday. Under the EU rules, companies can be fined up to 6 percent of their annual global turnover. French President Emmanuel Macron last week voiced concerns about the slow pace of Brussels’ probes into American tech giants, adding to a growing chorus of criticism that the bloc has been too slow to enforce its flagship Digital Services Act amid U.S. pressure. Washington has repeatedly asked the EU to roll back its digital rule book as part of trade negotiations, and last week U.S. Secretary of Commerce Howard Lutnick put this on the table again as an explicit exchange for scrapping tariffs on steel and aluminum in ongoing talks. Asked earlier Thursday how she feels about a looming diplomatic showdown if she slaps a fine on a U.S. tech giant, Commission digital chief Henna Virkkunen told POLITICO: “I’m quite calm in different situations. I’m not surprised about anything. I’m protecting our laws. But at the same time we are going to make Europe faster and simpler and easier for businesses.” Asked if she’s afraid of the U.S.’s reaction to a fine under the DSA, Virkkunen responded with a single word: “No.”

LONDON — Britain’s man in Geneva is quietly trying to fix the global trading system — without angering President Donald Trump. As World Trade Organization (WTO) members stumble toward a long-anticipated reform effort, U.K. Ambassador Kumar Iyer is working to modernize the organization’s rulebook. Iyer’s vision for WTO reform ahead of its big biennial conference in March centers on shaking up the way the 30-year-old U.N. body enforces the rules of global trade. Speaking to POLITICO earlier this month, Iyer said he wants to have a system “where not everything is always held back by consensus and not everything requires everyone to agree […] and it’s not negatively impacting a range of countries.” Brussels has flirted with building an alternative “rules-based” trade order that would bring together the EU and the Indo-Pacific trade bloc that the U.K. joined last year — an alliance that sidelines Washington, long accused of paralyzing the WTO’s dispute system. Ministers representing the two trade blocs are meeting in Melbourne, Australia, this week for their first official joint dialogue. Kumar Iyer’s vision for WTO reform ahead of its big biennial conference in March centers on shaking up the way the 30-year-old U.N. body enforces the rules of global trade. | Martial Trezzini/EPA But Iyer is keen to downplay talk of an anti-Trump alliance. “We’re really comfortable with other countries having those [agreements],” he said. “But they’re not an alternative to the multilateral system.” ‘BUSINESSES’ FOCUS IS NOW ELSEWHERE’ Iyer’s frustration over attitudes towards the WTO is clear — especially with what he sees as corporate indifference toward the organization, leading to its deprioritization in global politics. “CEOs and corporate leaders have stopped looking towards the WTO as being on the forefront of global trade policy,” he said. “They’ll look at CPTPP […] — that’s where the board-level focus has gone, and that’s very understandable.” EU Commission President Ursula von der Leyen first floated the idea of a wider alliance with CPTPP members in June during EU trade talks with the U.S. She argued that the bloc could “show to the world that free trade with a large number of countries is possible on a rules-based foundation.”  Still, Iyer insists that no new alliances can replace the WTO — or its role as the foundation of the global trade system.  “No FTA is even possible without the WTO,” he said. “The WTO is the operating system, and FTAs are essentially the applications that sit on it. Saying you only need CPTPP is like saying I’ve got Microsoft Word and Excel, so I don’t need Windows.” With the WTO’s next ministerial conference fast approaching, officials are steeling themselves for bruising negotiations on several issues, ranging from e-commerce to agriculture and fisheries.  Washington, however, remains the main obstacle. The U.S. has for years blocked the appointment of new judges to the WTO’s top appeals court, effectively paralyzing one of its core functions in trade dispute settlement.  “This isn’t about coming out with a big bang change immediately,” Iyer said of the coming reform talks. “It’s about getting that political engagement around it and showing a real, genuine willingness.”

Tech tycoon Elon Musk on Wednesday threw a jab at European democracy — and the president of the European Commission. “If democracy is the foundation of freedom, surely your position as leader of the EU should be elected directly by the people?” Musk wrote in a post on social media platform X, which he owns, to Ursula von der Leyen. In another post, the Tesla and SpaceX chief added that the “leader of the EU” should be “elected by the people” of the bloc, “not appointed by a committee.” Musk was reacting to von der Leyen’s unveiling of the European Democracy Shield, a new strategy to step up the fight against foreign interference online, including in elections. “Democracy is the foundation of our freedom. Democracy is the foundation of our prosperity. Democracy is the foundation of our security,” von der Leyen wrote on social media. The German politician had pitched the Democracy Shield idea in a campaign speech at the Copenhagen Democracy Summit last year as she sought another term as Commission president ahead of the 2024 European election. The Commission president — head of the EU’s executive, though not literally the “leader of the EU” — is proposed and voted on by the European Council, comprising the EU’s 27 heads of state and government, for a five-year term. The proposed candidate also has to win a vote among members of the European Parliament. After getting the required backing last year, von der Leyen survived three motions of no confidence by factions in the Parliament in July and October this year. The centerpiece of the Democracy Shield strategy is the European Centre for Democratic Resilience, which draws on expertise across current and aspiring EU member countries to counter disinformation. Other elements include guidance on how to use AI in elections or on using influencers to help people understand EU rules, such as regulations on online content or political advertising. Musk, who played a brief but prominent role earlier this year as U.S. President Donald Trump’s adviser after supporting him vigorously throughout the 2024 election campaign, has often used his platform to amplify controversial views on democracy, free speech and political leadership around the world.

ATHENS — EU fraud investigators on Monday raided the offices of the Greek agency in charge of distributing EU farm funds that is at the center of a massive fraud scandal. The inspection by agents from the EU’s OLAF fraud team lasted eight hours at the offices of OPEKEPE, the state paying agency. It is expected to continue on Tuesday, with the investigators requesting documents concerning the agency’s organizational structure and contracts, according to two Greek officials granted anonymity to discuss the sensitive matter. An OLAF spokesperson declined to comment on the raid, citing the confidential investigation and possible ensuing judicial proceedings. A massive scam to defraud the EU has convulsed Athens this year, after many Greeks improperly received farm subsidies for pastureland they did not own, or for farm work they did not do. POLITICO first reported on the scheme in February. Several ministers and deputy ministers resigned over their alleged involvement in the scandal, which is also under investigation by the European Public Prosecutor’s Office. The EU has already fined Athens €400 million after finding evidence of systemic failings in the handling of farm subsidies from 2016 through to 2023. EPPO had already raided OPEKEPE headquarters in May, meeting physical resistance to its inquiries. This was followed by a raid by Greek police in July. Greece risks losing its EU farm subsidies unless it provides an improved action plan on how it will stop funds being siphoned off into corruption. The original deadline was Oct. 2, but this has now been pushed back to Nov. 4. “The Commission has not received the revised action plans from the Greek authorities,” a European Commission spokesperson said in response to a POLITICO inquiry. “The Commission is awaiting the submission of the revised action plan and in the meantime, it continues to be in contact with the Greek authorities.” Meanwhile, the Greek government announced last week it canceled subsidies for organic farming retroactively for 2024, after being inundated with fake applications. The Organic Farming and Animal Husbandry Program was set to run from June 2024 to June 2027 and had a budget of €287.5 million. More than 60,000 farmers had applied for subsidies under the program and it is not clear yet whether subsidies for 2025 will be paid. The Commission has yet to be notified of the government’s decision to pull the plug on the payments. “The Commission expects to be informed by the Greek authorities whenever EU agricultural funds are withheld, rerouted, or intended to be. As of Oct. 13, the Commission has received no such notification,” the spokesperson said.

Russia is waging a campaign to “unsettle” citizens by flying drones into European airspace, European Commission President Ursula von der Leyen warned Wednesday. “Something new and dangerous is happening in our skies … This is not random harassment. It is a coherent and escalating campaign to unsettle our citizens, test our resolve, divide our Union, and weaken our support for Ukraine,” von der Leyen said in a speech at the European Parliament in Strasbourg. “And it is time to call it by its name. This is hybrid warfare.” There has been a surge in reports of unmanned aerial vehicles flying over Europe in the past month, including in Poland, Romania, Germany, Norway and Denmark. Some, such as war drones overflying Poland and Romania, have been identified as Russian, while the origin of others has been harder to determine. In response, Copenhagen last week temporarily banned drone flights, while NATO has launched an Eastern Sentry program to tackle gaps in the alliance’s air defenses. Meanwhile, von der Leyen has pitched building a drone wall to protect Europe against Russia, an idea that has drawn criticism over its feasibility and cost. But von der Leyen on Wednesday said protecting Europe’s eastern border is not enough, and a broader approach is needed. “Tackling Russia’s hybrid war is not only about traditional defense. It is about software for drones and spare parts for pipelines. It is rapid cyber-response teams and public information campaigns to spread awareness. This requires a new mindset for all of us,” she said. Europe needs to strengthen its defense industry and focus on the initiatives from member countries, such as the Prague-led ammunition initiative to deliver shells to Kyiv, von der Leyen said.

Listen on * Spotify * Apple Music * Amazon Music Wer regiert die Welt – und was treibt sie an? In unserem regelmäßigen Machthaber-Spezial geht es um die mächtigsten und umstrittensten Politikerinnen und Politiker unserer Zeit. Wir zeigen, wie sie denken, entscheiden – und was das für uns bedeutet. Eine Politikerin oder Politiker, alle zwei Wochen, ein Blick hinter die Kulissen der Macht. Die nächste Folge hört ihr am Samstag, 18.10.2025. Dann geht es um den belarussischen Machthaber und letzten Diktator Europas, Alexander Lukaschenko. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. ⁠Jetzt kostenlos abonnieren.⁠ Mehr von Host und POLITICO Executive Editor Gordon Repinski:Instagram: ⁠@gordon.repinski⁠ | X: ⁠@GordonRepinski⁠.

BERLIN — U.S. President Donald Trump’s peace plan for Gaza represents the best chance yet to end the Israel-Hamas war, German Chancellor Friedrich Merz said Tuesday. “After almost three years of bloodshed, this plan is the best chance, at least the best chance so far, for an end to the war,” Merz told reporters in Berlin. “The fact that Israel supports this plan is a significant step forward,” he said. “Now Hamas must agree and clear the way for peace. This is truly the last step that is necessary, and I expressly call on Hamas to agree to the plan.” Merz’s comments come after the U.S. president and Israeli Prime Minister Benjamin Netanyahu said at the White House on Monday that they’ve reached a tentative agreement on the Trump administration’s 20-point peace plan for Gaza. The proposal calls for Hamas to disarm, return all the hostages within 72 hours and relinquish power, according to an outline of the plan released by the White House. In return, Israeli forces would withdraw and release around 2,000 Gazans, prisoners and detainees, according to the proposal. Hamas has not yet agreed to the plan. Germany is prepared to assist with implementing the peace plan and rebuilding Gaza in the event a peace agreement is reached, Merz said. “Germany is ready to contribute to the implementation of the plan. This applies politically, it applies in a humanitarian sense, and it also applies, of course, to the reconstruction of the region,” the center-right politician said. “We see this as work towards a Middle East in which Israelis and Palestinians can one day live peacefully and securely in two states,” he added. Earlier Tuesday, Merz met the families of Israeli hostages in the chancellery. German Foreign Minister Johann Wadephul separately announced he will travel to the Middle East over the weekend, where he is expected to engage in talks with Israeli officials. Merz’s ideologically divergent coalition government — consisting of his conservative alliance and the center-left Social Democratic Party (SPD) — has struggled to agree on a common position on Israel and the war in Gaza, specifically regarding EU proposals to sanction Israel. While SPD politicians support the sanctions proposed by European Commission President Ursula von der Leyen, members of Merz’s conservative alliance oppose such a step. Merz earlier this month said he would announce his government’s unified position at a summit of European leaders in Copenhagen on Wednesday.  But one day ahead of that meeting, there is no sign his coalition has agreed on a common position.

European Commission President Ursula von der Leyen failed to take notes during critical interviews with candidates to join her team of commissioners, POLITICO can reveal. The admission, made by the Commission in response to an access-to-documents request, was criticized by transparency advocates who said it fit a pattern of opaque and secretive administration by von der Leyen, who has led the EU executive since 2019. In September 2024, POLITICO requested records relating to interviews between von der Leyen and Spain’s commissioner-candidate Teresa Ribera, who went on to become executive vice-president. The Commission delayed its response for many months. Almost one year later, and after two complaints via the office of the European Ombudsman, Commission Secretary-General Ilze Juhansone admitted that “informal conversations with the selected candidates … took place orally and no documents were drawn up.” There is no suggestion any rules were broken. But Harvard democracy fellow Alberto Alemanno said it highlighted a pattern of casual disregard for best practices by von der Leyen and her Commission. In September 2024, POLITICO requested records relating to interviews between von der Leyen and Spain’s commissioner-candidate Teresa Ribera, who went on to become executive vice-president. | Olivier Hoslet/EPA “Once more the Commission nonchalantly departs from the basic principle of good administration,” he said. The Commission did not respond to a request for comment. RETAINING DOCUMENTATION Von der Leyen has been heavily criticized by campaigners and journalists for a perceived lack of transparency. The complaint was also at the heart of a failed no-confidence motion led by the far right against the Commission chief that roiled Brussels politics this past summer. The Commission president’s refusal to hand over text messages between her and the CEO of drug company Pfizer led to a court ruling that contained several recommendations for how to improve practices, including a requirement that European institutions “draw up and retain documentation relating to their activities.” “As the Pfizer judgment pointed out,” Alemanno said, “the EU Commission is under such principle [of good administration] bound to the duty of note-keeping, which apparently didn’t take place during the commissioners’ vetting process.” The Pfizer ruling came this past May, long after the interviews von der Leyen held with commissioner candidates in the summer of 2024. Alongside the records-keeping issues, the Ombudsman’s office told POLITICO that the yearlong wait for the Commission to respond to a basic request for documents raised further questions. The Ombudsman has previously voiced concerns about a widespread pattern of Commission delays in responding to such requests. In a statement, the office of Ombudsman Teresa Anjinho said: “It is very difficult for the public to understand why there are long delays in answering requests for access to documents, particularly when the reply at the end only acknowledges that no document could be found. This kind of situation can undermine citizen[] trust in the EU administration.”

CONSTRUCTION CHAOS AND DEEP DEBT PLUNGE EUROPEAN QUARTER REMAKE INTO CRISIS At its center is the Schuman roundabout revamp, now plagued by spiraling costs, bureaucratic spats and local frustration. By ELENA GIORDANO and SEB STARCEVIC in Brussels Photos by Arnau Busquets Guàrdia/POLITICO Exit the Berlaymont or Europa building and the dust stings your eyes, drilling pierces your ears and jackhammers rattle the glass facades as you weave through fenced-off detours, hemmed in by honking drivers trapped in perpetual traffic. Throughout the European Quarter of Brussels — where many of the European Union’s institutions are headquartered — the story is much the same, with tired office buildings torn down to make way for gleaming new developments, filling the streets with an incessant rumble of demolition and construction.   Even for a city used to reinventing itself, the European Quarter’s transformation is bold. But spiraling costs, bureaucratic spats and local frustration are beginning to overshadow what was meant to be a flagship renewal. At the center of it all is the Schuman roundabout, a traffic-choked junction now under full-scale redevelopment. By mid-2026, the concrete-heavy site is set to become a greened-up pedestrian promenade. Just down the road, a sprawling new European Commission conference center is rising at Rue de la Loi 93-97, replacing a long-abandoned office block and once-beloved mural. Another structure at Rue de l’Industrie 44 has been razed, although its future remains unclear. Around a dozen more sites around the quarter, from Rue de la Science to Avenue de Cortenbergh, are now in some state between demolition and reconstruction. Several streets, such as Rue Guimard, will be ripped up and have trees planted as part of an ambitious master plan to make the quarter greener. To that end, the Commission last year sold 23 of its office buildings to Belgium for €900 million to redevelop, in a bid to build a “modern, attractive and greener” district. Belgium bought 23 of the European Commission’s buildings, colored on the map above, to redevelop. | SFPI It’s a grand vision that taps into Brussels’ long history of chaotic redevelopment — captured in the deprecating term “Brusselization,” coined during the city’s notorious construction boom of the 1960s and 1970s. That era saw unchecked freedom to developers, razing much of the city’s Art Nouveau history and transforming the EU capital into a mishmash of architectural styles. But despite the buzz around the ambitious current makeover, not everyone is sold. With local businesses worried about the long-term impact on foot traffic, a paralyzed Brussels government, allegations of budgetary fraud and a city deep in debt, this redevelopment risks becoming the ultimate stress test for the capital of Belgium — and the EU.  LOCALS FEEL THE STRAIN Among business owners and employees around the Schuman roundabout POLITICO talked to, not everyone was convinced that the upheaval will be worth it. “It’s a mess,” said a staffer at Portuguese restaurant Puro, which borders the construction site, who like others in this story was granted anonymity to freely discuss the impact of the works. Lunchtime business has dropped, he said, though noted a slight uptick as work progresses. At nearby Papillon, a favorite spot for EU officials and diplomats, a manager called the noise “frustrating,” but said project managers had kept him informed. They’re still aiming to finish the work by April 2026, he added. A Commission employee, likewise granted anonymity, was more skeptical. “For a while, we have been receiving a lot of emails announcing the project,” she said. “I just hope there will actually be some green when the project is finished — so far it’s a lot of concrete.” Brussels has a reputation for never-ending, unsightly construction and bureaucratic paralysis — standing in stark contrast to cities in Asia or the Americas, where skyscrapers have been assembled and sinkholes filled in weeks or less. Making matters worse is the lack of coordination among various worksites in the EU capital. Brussels’ own Construction Coordination Commission is tasked with synchronizing infrastructure projects across a patchwork of institutions and municipalities. But in practice, that often falls short. “In Brussels, there’s a coordination problem,” admitted David Dubois, Cabinet chief of the Etterbeek municipality, which borders the Schuman site. “It’s not easy. It requires a lot of consultations, and there are many factors to take into consideration when working with different municipalities,” he added. CASH CRUNCH AND POLITICAL DISPUTES In early June, Brussels’ caretaker government asked EU institutions to contribute €3 million toward the Schuman redevelopment, warning that failing to do so before the end of the month could lead to “even further additional cost.” Commission spokesperson Paula Pinho confirmed the EU executive had received the request. “We will respond to the letter in due time,” she said, without giving away any details on if — or how much — the Commission would contribute. At the end of August, a spokesperson for the infrastructure agency Beliris told POLITICO they were not aware of any response from the Commission to the letter. The European Commission’s conference center is being built on Rue de la Loi. | Arnau Busquets Guàrdia/POLITICO Belgium’s Prime Minister Bart De Wever, however, slammed the region’s plea as a “true disgrace” and a “total humiliation,” urging EU institutions not to enable what he called the “failed state” politics of the capital. Dubois wasn’t surprised by the financial ask. “We know the reality that is going on with every construction site: With inflation and rising material costs, it’s difficult to finish the works and keep costs at the same level as they were defined a few weeks prior,” he said. “But this project — it’s symbolic, and we need to finish it. It’s important to create as quickly as possible an environment that is comfortable for citizens, so we have to move forward,” he added. Adding another twist, in late August Beliris announced that the revamp of the Schuman roundabout will be completed without its showpiece steel canopy — unless Brussels finds more money by mid-September. PARALYSIS AND DEBT The political situation isn’t helping. Brussels has been without a functioning regional government for more than 13 months, with coalition negotiations stalled since the June 2024 elections. Talks resumed in mid-July, with six parties sitting down for formal coalition talks — but hopes for a new government unraveled within a day. “Everyone knows the situation is difficult, financially and politically,” said Dubois. “We’ve had no government, no direction, since the last election,” he added. Meanwhile, the capital’s debt exceeds €14 billion, with another €1.6 billion expected to be added this year. A recent investigation by The Brussels Times reported that €250 million in EU infrastructure loans may have been diverted to cover general expenses instead of transportation projects, potentially violating EU rules. Following the investigation, the Flemish nationalist New Flemish Alliance party, led by De Wever, called for a parliamentary inquiry into possible budgetary fraud. For now, hard-hatted construction crews are plowing ahead, chiseling sidewalks, pouring fresh cement and weaving scaffolding ever higher, with pedestrians forced to pick their way through fenced-off detours. The Schuman roundabout is supposed to be completed by April of next year — but don’t expect the noise and detours to end for the European Quarter as Brusselization marches on.