Tag - Employment

Merz und das Auswärtsspiel um die Rente
Listen on * Spotify * Apple Music * Amazon Music Kaum zurück aus Afrika, muss Kanzler Friedrich Merz in Berlin in den Ring: Beim Arbeitgebertag trifft er auf seinen aktuell lautesten Kritiker, JU-Chef Johannes Winkel. Es geht um die Zukunft der Rente. Rasmus Buchsteiner analysiert, ob ein neues Rentenpaket den Aufstand der Jungen stoppen kann und warum Merz heute jedes Wort auf die Goldwaage legen muss. Im 200-Sekunden-Interview: Philipp Türmer. Der Juso-Vorsitzende hält dagegen. Er nennt die Pläne der Jungen Union „langweilig“, fordert eine Einbeziehung von Selbstständigen, Beamten und Politikern in die Rentenkasse und erklärt, warum die Koalition trotz des Streits nicht platzen wird. Außerdem: In Washington tobt ein Machtkampf um die Ukraine-Politik. Jonathan Martin berichtet über den Riss bei den Republikanern zwischen den „Traditionalisten“ um Marco Rubio und dem Trump-Lager um J.D. Vance. 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. Legal Notice (Belgium) POLITICO SRL Forme sociale: Société à Responsabilité Limitée Siège social: Rue De La Loi 62, 1040 Bruxelles Numéro d’entreprise: 0526.900.436 RPM Bruxelles info@politico.eu www.politico.eu
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Merz tells Zelenskyy Ukrainian men should stay home and fight
BERLIN — German Chancellor Friedrich Merz urged Ukrainian President Volodymyr Zelenskyy to curb the flow of young Ukrainian men to Germany and ensure they stay to defend their country. “In a lengthy telephone conversation today, I asked the Ukrainian president to ensure that young men in particular from Ukraine do not come to Germany in large numbers — in increasing numbers — but that they serve their country,” Merz said Thursday. “They are needed there.” His comments come amid growing concerns in Germany — particularly within Merz’s conservative ranks — that public support for the Ukrainian cause could wane if young male Ukrainians are seen to be avoiding military service by coming to Germany. Following the relaxation of Ukrainian exit rules over the summer, the number of young Ukrainian men aged 18 to 22 entering Germany rose from 19 per week in mid-August to between 1,400 and 1,800 per week in October, according to German media reports citing the German interior ministry.   Markus Söder, Bavaria’s conservative premier and an ally of Merz, proposed restrictions on the EU’s so-called Temporary Protection Directive if Kyiv doesn’t voluntarily reduce arrivals. The rules provide Ukrainians with an automatic protected status.       Germany is one of Ukraine’s staunchest allies within the EU. The country has hosted over 1.2 million Ukrainian refugees since Russia’s full-scale invasion in 2022 and is its biggest donor in military aid after the U.S. in absolute numbers. Members of Merz’s ruling coalition fear that the growing presence of young Ukrainian men in Germany will be turned into a political flash point by members of the far-right Alternative for Germany (AfD) party, who criticize the government’s ongoing support for Kyiv. The ascending AfD, now polling first, has long demanded a stop to welfare payments to Ukrainians. Around 490,000 Ukrainian citizens of working age receive long-term unemployment benefits in Germany, according to data from the country’s employment agency. Merz’s coalition — which is under increasing fiscal pressure and generally wants to reduce welfare spending — is working on a draft law that would cut the right to such benefits for Ukrainians and encourage work. “In Germany, the transfer payments for these refugees will be such that the incentives to work are greater than the incentives in the transfer system,” Merz said Thursday. In the same phone conversation, Merz also urged Zelenskyy to sort out the country’s corruption problems as Kyiv faces the fallout of a massive scandal involving kickbacks — another development that German officials fear could undermine public support for the embattled country.
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Six in 10 unemployed in Belgium have non-Belgian background
About six in 10 jobless people in Belgium have a non-Belgian background, new figures show, as the right-wing government moves to tighten rules for migrants and the unemployed.  Employment Minister David Clarinval, who released the statistics Wednesday in response to a question from Socialist MP Sophie Thémont, called them “rather astonishing.”  “We know … [migrants] have a much lower command of the national languages,” he said. “They may have difficulty understanding the institutional system. So, we clearly need to focus on these people and pay particular attention to them.”  He added, “The main message is that everyone must work, including people of foreign origin.”   The figures classify individuals as having a non-Belgian background if they were born with another nationality or if at least one parent holds another nationality, even if they now hold Belgian citizenship. About 41.5 percent of Belgium’s unemployed are Belgian, while nearly 13 percent have North African roots, followed by migrants from southern EU countries.   Belgian Prime Minister Bart De Wever, a Flemish right-winger who took office in February, has called Belgium’s immigration policy the “source of all misery” and has introduced strict new rules, including mandating higher income requirements and longer waiting periods for family reunification visas.   De Wever’s government is also moving forward with a plan to cut off unemployment benefits for those who have been jobless for more than 20 years starting next year. In the future, claimants will only be allowed to receive benefits for up to two years. The changes mean 180,000 Belgians are set to lose their unemployment benefits next year, saving the state just under €2 billion.
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Trump appeals his criminal conviction in New York hush money case
NEW YORK — President Donald Trump on Monday asked a New York appeals court to overturn his criminal conviction in the Manhattan hush money case that made him a felon as he plotted a path back to the White House last year. In a 96-page filing, Trump’s lawyers relied on many of the same arguments that Trump previously made before, during and immediately following the 2024 trial, including that the conviction should be thrown out in light of the Supreme Court’s ruling on presidential immunity and that the judge who oversaw the trial should have recused himself because he made political contributions. “This case should never have seen the inside of a courtroom, let alone resulted in a conviction,” his lawyers, a six-person team of Sullivan & Cromwell attorneys, wrote. The appeal is just one of Trump’s attempts to overturn his conviction last May of 34 counts of business fraud for his effort to conceal a hush money payment to porn star Stormy Daniels. He has separately asked a federal appeals court to transfer his state criminal case to federal court. Such a move would pave the way for Trump to eventually ask the Supreme Court to erase his criminal record by tossing his conviction on presidential immunity grounds. Though Trump has suffered few consequences as a result of the conviction — he won reelection in November and was subsequently sentenced to no punishment in January — he’ll still carry the title of felon unless an appellate court overturns the case. Trump’s lawyers argued in the filing Monday that the Supreme Court’s decision on presidential immunity, issued more than a month after a New York jury convicted Trump in the hush money case, meant prosecutors from the Manhattan district attorney’s office should have been precluded from using evidence connected to Trump’s “official acts” as president during his first term. That evidence, his lawyers wrote, included testimony about conversations between Trump and Hope Hicks, who was then the White House communications director, as well as Trump’s social media posts. Late last year, the trial judge, Justice Juan Merchan, rejected the notion that the immunity ruling applied to the evidence used in the case, finding that evidence at issue related not to Trump’s official acts, but instead to his private conduct — specifically, his effort to conceal a hush money payment to Daniels. Trump’s lawyers also took aim at Merchan himself, as they did numerous times during the course of the prosecution, writing that “his impartiality was reasonably in doubt” because of small-dollar political contributions he made to Democratic candidates or causes in 2020. They also cited his daughter’s work for a digital agency whose clients include a number of Democratic officials. When Trump’s lawyers made the same arguments in 2023, asking Merchan to recuse himself, the judge disclosed that he had sought guidance earlier that year from the New York State Advisory Committee on Judicial Ethics about several issues Trump subsequently raised. The judge said the committee had issued an advisory opinion regarding his daughter’s employment that concluded: “We see nothing in the inquiry to suggest that the outcome of the case could have any effect on the judge’s relative, the relative’s business, or any of their interests.”
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Why we must work together for a balanced drinking culture
Alcohol has been enjoyed in societies for thousands of years, playing a role in celebrations and gatherings across the world. While misuse continues to cause harm, it’s encouraging to see that, according to World Health Organization data, trends are moving in the right direction. Consumers are better informed and increasingly aware of the benefits of moderation.   While Diageo is only relatively young — founded in 1997 — our roots run deep. Many of our brands date back centuries, some as far back as the 1600s. From iconic names such as Guinness and Johnnie Walker to modern innovations like Tanqueray 0.0, we are proud to continue that legacy by building and sustaining exceptional brands that resonate across generations and geographies. We want to be one of the best performing, most trusted and respected consumer products companies in the world — grounded in a strong sense of responsibility.  That means being transparent about the challenges, proactive in promoting responsible drinking, and collaborative in shaping the future of alcohol policy. We are proud of the progress made, but we know there is more to do. Lasting change requires a whole-of-society approach, bringing together governments, health experts, civil society and the private sector.   We believe a more balanced, evidence-based dialogue is crucial; one that recognizes both the risks of harmful drinking and the opportunities to drive positive change. Our brands are woven into cultural and social traditions around the world, and the industry contributes significantly to employment, local economies and public revenues. Recognizing this broader context is essential to shaping effective, proportionate and collaborative alcohol policies. Public-private collaboration brings together the strengths of different sectors, and these partnerships help scale impactful programs.  > We believe a more balanced, evidence-based dialogue is crucial; one that > recognizes both the risks of harmful drinking and the opportunities to drive > positive change. Across markets, consumers are increasingly choosing to drink more mindfully. Moderation is a long-term trend — whether it’s choosing a non-alcoholic alternative, enjoying fewer drinks of higher quality, or exploring the choice ready-to-drink formats offer, people are drinking better, not more, something Diageo has long advocated. Moderation is not a limitation; it’s a mindset. One of the ways we’re leading in this space is through our expanding non-alcoholic portfolio, including the acquisition of Ritual Beverage Company in the US and our investment in Guinness 0.0. This growing diversity of options empowers individuals to choose what’s right for them, in the moment. Moderation is about choice, and spirits can also offer creative ways to moderate, such as mixing alcoholic and non-alcoholic ingredients to craft serves like the ‘lo-groni’, or opting for a smaller measure in your gin and tonic.  Governments are increasingly taking proportionate approaches to alcohol regulation, recognizing the value of collaboration and evidence-based policy. There’s growing interest in public-private partnerships and regulatory rationality, working together to achieve our shared goal to reduce the harmful use of alcohol. In the UK, underage drinking is at its lowest since records began, thanks in part to initiatives like Challenge 25, a successful public-private collaboration that demonstrates the impact of collective, targeted action.  > Moderation is not a limitation; it’s a mindset. Diageo has long championed responsible drinking through campaigns and programs that are measurable and scalable. Like our responsible drinking campaign, The Magic of Moderate Drinking, which is rolled out across Europe, and our programs such as Sober vs Drink Driving, and Wrong Side of the Road, which are designed to shift behaviors, not just raise awareness. In Ireland, we brought this commitment to life at the All Together Now music, art, food and wellness festival with the launch of the TO.0UCAN pub in 2024, the country’s first-ever non-alcoholic bar at a music festival. Serving Guinness 0.0 on draught, it reimagined the traditional Irish pub experience, offering a fresh and inclusive way for festival-goers to enjoy the full energy and atmosphere of the event without alcohol.  Another example comes from our initiative Smashed. This theatre-based education program, developed by Collingwood Learning and delivered by a network of non-government organizations, educates young people and helps them understand the dangers of underage drinking, while equipping them with the knowledge and confidence to resist peer pressure. Diageo sponsors and enables Smashed to reach millions of young people, teachers and parents across the globe, while ensuring that no  alcohol brands of any kind are mentioned. In 2008, we launched DRINKiQ, a first-of-its-kind platform to help people understand and be informed about alcohol, its effects, and how to enjoy it responsibly. Today, DRINKiQ is a dynamic, mobile-first platform, localized in over 40 markets. It remains a cornerstone of our strategy.  > Diageo has long championed responsible drinking through campaigns and programs > that are measurable and scalable. In the UK, our partnership with the Men’s Sheds Association supports older men’s wellbeing through DRINKiQ. Most recently, this collaboration expanded with Mission: Shoulder to Shoulder, a nationwide initiative where Shedders are building 100 buddy benches to spark over 200,000 conversations annually. The campaign promotes moderation and connection among older men, a cohort most likely to drink at increasing or higher risk levels. Across all our partnerships, we focus on the right message, in the right place, at the right time. They also reflect our belief that reducing harmful drinking requires collective action.  Our message is simple: Diageo is ready to be a proactive partner. Let’s build on the progress made and stay focused on the shared goal: reducing harm. With evidence-based policies, strong partnerships and public engagement, we can foster a drinking culture that is balanced, responsible and sustainable. Together, we can make real progress — for individuals, communities and society as a whole. 
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The shutdown layoffs at health agencies followed a familiar, DOGE pattern
The mastermind of President Donald Trump’s effort to downsize the federal workforce, Russ Vought, promised to use the government shutdown to advance his goal of “shuttering the bureaucracy.” Presented with a layoff plan that would have moved in that direction, officials at the Department of Health and Human Services scaled it way back, POLITICO has learned. It was another example, like several during the layoffs led by Elon Musk’s Department of Government Efficiency this spring, in which Trump’s agency heads have pushed back successfully against top-down cuts they viewed as reckless. POLITICO obtained an HHS document from late September, the shutdown’s eve, that said the department wanted to cut nearly 8,000 jobs, based on guidance from Vought’s budget office. On Oct. 10, HHS only went ahead with 1,760. In the two weeks since, the number has dwindled to 954, as the department has rescinded nearly half of the total, blaming a coding error. The disorganized handling of the layoffs is reminiscent of Musk’s DOGE effort, in which employees were rehired after being fired, sometimes on court orders, sometimes because agency officials objected. In each case, the layoffs rattled agency managers and traumatized employees, as Vought wanted, but haven’t gone nearly as far in downsizing the government as forecast. While the nearly 8,000-person layoff plan this month was largely scuttled by top agency officials who intervened before the cuts could be made, the whiplash manner in which it was proposed and then scaled back shows that the administration is still following the DOGE playbook. “These appear to be leftovers from DOGE. I don’t know anyone — including in the White House — who supports such cuts,” a senior administration official told POLITICO in explaining the pullback from the promised mass layoffs. The official, granted anonymity to discuss confidential matters, pointed to the involvement of a staffer who was part of the DOGE effort in producing the administration document. That document came to its initial tally of 7,885 layoffs at HHS by adding employees who would be furloughed during the shutdown, as well as workers in divisions that would be shuttered if Congress passed Trump’s fiscal 2026 budget proposal. Trump’s May budget plan called for a 25 percent cut to HHS, but lawmakers have rejected it in the appropriations bills now in process. HHS spokesperson Emily Hilliard told POLITICO in a statement that HHS made its layoff list “based upon positions designated as non-essential prior to the Democrat-led government shutdown.” She added: “Due to a recent court order, HHS is not currently taking actions to implement or administer the reduction-in-force notices.” According to the document reviewed by POLITICO, the National Institutes of Health was to take the hardest hit among HHS agencies, 4,545 layoffs, or roughly a quarter of its workforce. It ended up firing no one. A federal judge in San Francisco blocked the firing of 362 of the 954 HHS employees who did receive the October layoff notices. More will be shielded after additional federal employee unions joined the lawsuit on Wednesday. In congressional testimony earlier this year, Health Secretary Robert F. Kennedy Jr. said he had downsized his department’s staff to 62,000 from 82,000 when he took office. He’s nowhere close. An HHS contingency plan produced in advance of the shutdown said the department still employed 79,717. Employees who took a Sept. 30 buyout offer from Musk would bring that lower, though the number who did is unknown because the White House has not released agency-by-agency totals and has stopped publishing agency employment updates. It’s unclear who within the Trump administration came up with the initial plan for the shutdown layoffs. Hilliard did not respond to POLITICO’s question about who within HHS was responsible. Thomas Nagy, the HHS deputy assistant secretary for human resources, has been the one updating the judge, Susan Illston of the U.S. District Court for the Northern District of California, about the layoffs. The experience of the fired 954, whose last work day is scheduled for early December, mirrors the chaos of DOGE’s spring layoffs, in which employees were left wondering whether they still had jobs amidst lawsuits and officials were forced to backtrack and rehire fired workers. In one such instance, Kennedy told a House panel in June that he had appealed directly to Vought to make sure Head Start funding was protected after the early education and health care program was left out of the president’s budget proposal. In another case, HHS fired and then rehired an award-winning Parkinson’s researcher. Kennedy also told senators that he brought back hundreds of staffers at the National Institute for Occupational Safety and Health. That came after West Virginia Republican Sen. Shelley Moore Capito and others protested. Now many HHS employees are having déjà vu. The situation is reminiscent of the experience some former employees of the U.S. Agency for International Development had during the Trump administration dismantling of the foreign aid agency early this year. Some furloughed employees at HHS, for example, didn’t have access to their work emails to receive notices informing them they were laid off this month. “There were individuals who didn’t even know if they were in RIF status until they got the hard copy packet in the mail two days ago,” a laid-off employee at the Centers for Disease Control and Prevention said, using the acronym for “reduction-in-force.” A similar situation played out at HHS’ Office of Population Affairs, where nearly all of the roughly 50 employees were laid off two weeks ago, according to one person with knowledge of the situation speaking anonymously for fear of retribution. The office, which is congressionally mandated, manages hundreds of millions of dollars in funding for family planning and teen pregnancy prevention programs. Three fired employees from the Substance Abuse and Mental Health Services Administration — granted anonymity to provide details about the firings without fear of retribution — said that many of the roughly 170 employees cut from the agency earlier this month are getting physical copies of their termination notices mailed to them because they’re shut out of their email accounts. “DOGE never really left, it just looks different now,” one of the SAMHSA employees said. Amanda Friedman and Sophie Gardner contributed reporting. Tim Röhn is a global reporter at Axel Springer and head of investigations for WELT, POLITICO Germany and Business Insider Germany.
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ECB union sues bank over attempts to silence union reps
The European Central Bank’s staff union is taking the bank to court, accusing ECB management of trying to silence and intimidate its representatives in violation of the principles of European democracy. The case, lodged with the European Court of Justice on Oct. 13, marks the latest escalation in a battle between union representatives and management, where relations have deteriorated since Christine Lagarde took over as ECB president in 2019. The action contests a series of letters the bank addressed to the International and European Public Services Organization (IPSO) union and one of its senior representatives “restricting staff and union representatives from speaking publicly about workplace concerns, such as favoritism and the ‘culture of fear’ at the ECB,” the union said in a statement. These letters constitute “an unlawful interference” with basic freedoms guaranteed by the EU Charter of Fundamental Rights and the European Convention on Human Rights, the union said. “Freedom of expression and association are not privileges; they are the foundation of the European project.” An ECB spokesperson said the bank does not comment on court cases, but that it “is firmly committed to the freedom of expression and the rule of law, operating within a clear employment framework that is closely aligned with EU Staff Regulations and is subject to European Court of Justice scrutiny.” The first letter, signed by the ECB’s Chief Services Officer Myriam Moufakkir, came in response to an interview given by union spokesperson Carlos Bowles to Germany’s Boersen-Zeitung daily paper, published May 7. In it, Bowles had warned that a culture of fear may contribute to self-censorship, groupthink and poor policy decisions. The interview came at a time when the ECB’s failure to anticipate the worst bout of inflation in half a century had provoked widespread and public soul-searching by policymakers. It also followed a union survey in which around two-thirds of respondents said being in the good graces of powerful figures was the key to career advancement at the ECB, rather than job performance.   IPSO IS A FOUR-LETTER WORD According to the IPSO union, Moufakkir responded with a letter stressing that staff and union representatives must not make public claims of a “culture of fear” within the institution or its possible effects on ECB operations — including its forecasting work, which had come under especially intense scrutiny. It also accused Bowles of breaching his duty of loyalty under the ECB’s internal code of conduct, and instructed him to refrain from public statements that could “damage the ECB’s reputation.” A later letter by Moufakkir, addressed to IPSO dated Aug. 1 and seen by POLITICO, spells out the thinking. In it she stresses that the right of “staff representatives … to address the media without prior approval … applies exclusively to ‘matters falling within their mandate’. It does not apply to the ECB’s conduct of monetary policy, including its response to inflation.” In his interview, Bowles made no reference to current or future policy but rather to a work environment that he said fostered groupthink. Lagarde herself had warned against such risks, denouncing economists the previous year in Davos as a “tribal clique” and arguing that a diversity of views leads to better outcomes. Bowles had made similar statements to the media before, such as in an interview with the Handelsblatt daily paper published in January 2016, without eliciting any reaction from the bank’s management. Contacted by POLITICO for this story, the ECB said it had “stringent measures to ensure analytical work meets the highest standards of academic rigor and objectivity, which are essential to the ECB’s mandate of price stability and banking supervision.” Moufakkir suggested that Bowles’ comments undermine trust in the ECB and that this trust is crucial if the ECB is to deliver on its mandate. “Freedom of expression, which constitutes a fundamental right, does not override the duty of loyalty to which all ECB staff are bound,” she argued. Bowles rejected that framing, arguing in a letter to Moufakkir that he had a “professional obligation” to address such issues and their impact on the ECB’s capacity to fulfil its mission. PAPER TRAIL The trouble, according to the union, is that Moufakkir addressed the first two letters to an individual union representative (Bowles) who was speaking on its behalf, effectively undermining the union’s collective voice.  In her email, the union said, Moufakkir also “heavily misrepresented” Bowles’s comments and accused him of misconduct without affording him a hearing. In her letter from Aug. 1, Moufakkir maintained that her original letter to Bowles “was not a formal decision” to be recorded in his personal file, but rather a “reminder and clarification of applicable rules.”  “Its purpose was not to intimidate or silence Mr Bowles but to highlight to him the importance of prudence and external communications about ECB matters,” she wrote. The union said it sees this framing as an effort by the ECB to shield itself from judicial review: the letter addressed to Bowles was marked ECB-CONFIDENTIAL and Personal, conveying the impression of an official document. According to a person familiar with the matter, a special appeal launched by Bowles to the executive board to retract Moufakkir’s instruction has since been dismissed — without addressing its substance — because the letters had no binding legal effect and were therefore inadmissible. That has now prompted the union to turn to the ECJ; a response to a second appeal by Bowles remains outstanding. The union said that what it perceived as attempts by the ECB to silence union representatives have succeeded: Previously scheduled media interviews have been “cancelled due to fear of retaliation.” When contacted for comment, Bowles declined, citing the same reason. WHAT COMES NEXT? The ECB will have two months to submit its defense to the court. As an EU institution, the ECB is neither subject to German labor laws nor to similar rules in other EU member states and instead enjoys extensive scope to set and interpret its own rules. Out of 91 employment-related court cases since the bank’s inception, the ECB has won 71. Regardless of the legal implications, the union warned that the ECB’s approach undermines its institutional integrity and damages its credibility.  “Silencing staff representatives or whistleblowers prevents legitimate issues from being addressed and erodes trust in the institution,” it said. “Reputation cannot be protected by censorship — it must be earned through sound governance, transparency and open dialogue.” It sees the letter as part of a broader pattern in which the ECB has sought to restrict trade union activity and control staff representation, including planned changes to a representation framework that would limit the participation of union members in the ECB staff committee. IPSO is the sole trade union recognized by the ECB and holds seven out of the nine seats on the ECB’s staff committee, which is elected by all ECB staff. The ECB, for its part, has rejected much of the criticism emerging from survey organized by the union and the staff committee, which showed widespread distrust of leadership, surging burnout levels, and complaints about favoritism. The ECB has called the surveys methodologically flawed and unreliable.
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Here comes the EU’s first anti-far-right European Council
BRUSSELS ― Europe’s leaders are in the fight of their lives. For the first time, the summit they hold this week will zero in on topics aimed at reclaiming turf from the far right. Mainstream politicians ― center-right, center-left and liberal alike ― have been in power in Europe since World War II but are watching their control ebb away. They hope Thursday’s European Council will show that the EU cares about issues that have left voters feeling disaffected. In the bloc’s biggest capitals, from Paris to Rome, Amsterdam and Berlin, nationalist and even pro-Russia forces are either already in government or at the gates, having shown themselves adept at harnessing populist anger. “Defending the European project today means more than investing in our militaries — it also means delivering on the social promise that holds Europe together,” said Hannah Neumann, a Greens MEP who sits on the Parliament’s Security and Defense Committee. “One of Putin’s main tactics is to divide our societies.” The summit agenda is dominated by themes that leaders associate with a fundamental challenge: preventing a scenario in which four or five far-right leaders who may even reject the EU’s very existence are sitting around the European Council table a few years from now. It’s an outcome that would raise huge questions about the West’s military might and the future of the bloc itself. An early draft of the summit conclusions, seen by POLITICO, which national diplomats work on before submitting it to their leaders, reflects this underlying concern. Leaders will discuss housing, defense, competitiveness, the green and digital transitions and migration — all issues that officials from European governments see as critical to containing the far right. The gathering in Brussels this week is “a European Council that is looking for a new EU identity,” said an EU diplomat involved in the preparations who spoke on condition of anonymity because the deliberations are confidential. “There is a very difficult search, with a very painful internal process, to find answers to the questions that the EU has so far failed to grasp.” SOCIAL CRISIS In particular, putting housing on the agenda would have seemed unthinkable barely a few years ago. But the price of homes is now driving politics across the bloc — and propelling the far right to major wins. In the Netherlands, Geert Wilders and his far-right Party for Freedom won the 2023 national vote campaigning on a housing shortage he said was exacerbated by migrants and asylum seekers. Portugal’s Chega party surged to become the country’s leading opposition this year by railing against the failure of establishment parties to tackle soaring home prices.  The European Council is coming late to the issue. European Commission President Ursula von der Leyen has described the housing shortage as a social crisis for over a year and created a designated housing commissioner ― Denmark’s Dan Jørgensen ― who will present the bloc’s first-ever Affordable Housing Plan in December and has vowed to clamp down on short-term rentals in 2026. The European Parliament launched a special committee on the crisis at the beginning of this year. European Council President António Costa has long said the housing crisis is a challenge as pressing as Russia’s invasion of Ukraine. “The only way we strengthen citizens’ trust in the European project is by showing that we have the capacity to take on housing and the concrete problems that affect them personally,” he told POLITICO last year. Until now, house and rental prices haven’t been seen as a topic that the EU can tackle. While the housing crisis is a bloc-wide problem, there is no consensus on how to address it. National leaders are split along political lines and are likely to be at loggerheads when it comes to tackling real estate speculation, short-term rentals, or the expansion of public housing schemes. In particular, putting housing on the agenda would have seemed unthinkable barely a few years ago. But the price of homes is now driving politics across the bloc — and propelling the far right to major wins. | Koen Van Weel/ANP/AFP via Getty Images The divisions are evident in the draft summit conclusions, where leaders see the crisis as “pressing” but limit themselves to asking that the Commission present its plan as scheduled. ON THE RISE The march of the populists is already very real. Hungary’s Viktor Orbán and Slovakia’s Robert Fico sit at the European Council table, at times making it difficult or impossible to reach decisions by unanimity, which is often necessary. Czechia could soon join their camp, with right-wing populist Andrej Babiš having won elections earlier this month. In Slovenia, ultraconservative former Prime Minister Janez Janša’s party leads in the polls, according to POLITICO’s Poll of Polls. In the EU’s two biggest and most powerful countries, France and Germany, the far right is also ascendent. Opinion polls repeatedly show Jordan Bardella of the National Rally out in front for France’s presidential elections in 2027. The Alternative for Germany (AfD) came second in parliamentary elections last year. Defense is another topic on which the EU’s mainstream hopes to fight back. The EU’s defense commissioner estimates that when national defense budgets and EU funds are totted up, the bloc will plow in €2.4 trillion over four years — a staggering figure compared with previous investments. This defense boom could, in theory, replace Europe’s struggling car industry, which provides nearly 14 million jobs, or about 6 percent of EU employment. Defense is another topic on which the EU’s mainstream hopes to fight back. | Hristo Rusev/Getty Images  The topic is set to feature at the summit, with Slovakia’s Fico linking his support for new sanctions against Russia to aid for the car sector, given Slovakia’s status as the world’s top car producer per capita. “Defense is just key to preventing a far-right surge — it creates jobs,” said a second EU diplomat. Another front in the effort to stem the far-right tide is social media regulation. The EU finds itself in a battle with Washington over rules affecting U.S. tech giants like Meta and X — the latter owned by Elon Musk, who has used the platform to amplify far-right voices such as Germany’s AfD during the country’s last election. TikTok was blamed by the EU for playing a significant role in boosting far-right messaging during recent elections in Romania. “In the face of geopolitical shifts … it is crucial to advance Europe’s digital transformation, reinforce its sovereignty, and strengthen its open digital ecosystem,” reads the current draft of the leaders’ statement. Concrete solutions remain elusive, however. “What are we supposed to do — set up our own European social media platform to counter this malign influence?” a third diplomat asked. WATERING DOWN Europe’s diplomats can already feel the ground shifting beneath their feet. The green agenda, too, has been watered down under far-right pressure. | Thierry Monasse/Getty Images A discussion among EU ambassadors last week on “simplification” ― the current EU buzzword for slashing red tape ― turned into a broader push by some governments for U.S.-style deregulation. One ambassador intervened to clarify that deregulation should mean addressing bureaucratic bottlenecks rather than getting rid of EU rules altogether, according to two diplomats who were present. The green agenda, too, has been watered down under far-right pressure, with leaders set to discuss rolling back the bloc’s 2040 emissions targets. One of the clearest examples of the mainstream staking out far-right turf is migration. The once-taboo idea of processing asylum applications outside EU borders — in closed and “protected” centers — is now regularly debated, with even socialist leaders like Denmark’s  Mette Frederiksen pushing for it. In doing so she echoes calls from far-right Hungarian Prime Minister Viktor Orbán, who made it part of his so-called Schengen 2.0 plan back in 2016. In the end, some of these topics may get short shrift on Thursday. The agenda is packed, and the conversation will likely be dominated by more pressing geopolitical questions such as how to boost support for Ukraine. And then there are the deep divisions that remain between the center-right European People’s Party, which dominates the EU’s main institutions, and the Progressive Alliance of Socialists and Democrats. But it’s a start.
Defense
Media
Social Media
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Defense budgets
Who wants to be the next prime minister of France?
PARIS — If anyone’s looking for short-term employment, there’s a prestigious job open in Paris with perks and accommodation included. French President Emmanuel Macron’s office said he will choose a new prime minister by Friday evening. That lucky individual will replace Sébastien Lecornu, whose government resigned Monday after barely lasting 14 hours. Lecornu’s tenure as PM came in at 27 days. The next PM will be Macron’s sixth head of government since the French president won reelection in 2022. He or she will face an uphill battle trying to negotiate a budget that brings down the French deficit as fears swirl that the eurozone’s second largest economy has become ungovernable. Here are some profiles that are on the docket. A TEAM CAPTAIN Jean-Louis Borloo, a former minister who once owned the Valenciennes football club, has been floated as an option in Elysée circles in recent days. One of his biggest selling points: “He won’t be the man who has to ask the president permission to take a leak,” said a government adviser, granted anonymity to speak candidly. Borloo, like Macron, comes from France’s political center, but he doesn’t belong to the French president’s political team. He founded UDI, a small centrist party, and is seen as much more independent from Macron than other centrists. Borloo is someone who can “speak to the left” and won’t be seen as “so openly as a Macron lieutenant,” said a parliamentary adviser from Macron’s Renaissance party. As someone who has distanced himself from daily politics, he is not a threat to France’s (many) presidential hopefuls. Conservative leader Bruno Retailleau said he had spoken with Borloo on Thursday morning and described the 74-year-old as “disruptive” and neither left-wing nor close to Macron — his two key criteria for supporting a new premier. France, however, needs a prime minister who is battle-ready, and Borloo left frontline politics in 2014. And the center-left Socialist Party, who may hold the next government’s fate in their hands, are signaling that Borloo would be unacceptable. PM probability: 3.5/5 A WARRIOR MONK Sébastien Lecornu swears he is not interested. But there are rumblings that he’s vying for his former job. Lecornu resigned from his post as prime minister on Monday morning — setting off the current crisis — but was then tasked by Macron to find a way out of the mess in 48 hours. The 39-year-old then spent the next two days meeting with political factions across the spectrum and has appeared upbeat about the talks in his few media appearances. He said in a primetime interview Wednesday that he was working on a draft budget that could be a starting point for debates in parliament. If things are going so well, why would he go? That was the gist of the speculation, which peaked this week when his aides were forced to deny reporting by the daily Le Parisien that he was about to be reappointed as prime minister. The former Armed Forces minister tried himself to tamp down those rumors during his Wednesday evening interview, saying: “I’m a warrior monk, my mission is over.” There’s reason to believe him. Lecornu is seen as Macron’s minion, and appointing a PM so closely linked to the president — whose popularity hit a new low this week — would be like pouring gasoline on the current political conflagration. PM probability: 1.5/5 A CLASSMATE FROM THE OPPOSITION Will the left finally get their shot at running France? This week, there were murmurs the French president might be considering appointing a left-wing PM after the downfall of three consecutive center and center-right governments in the past year. Boris Vallaud, the leader of the Socialist Party group in the National Assembly, might fit the bill. He was one of Macron’s classmates at the elite Ecole National d’Administration, a sort of finishing school for French presidents, and the duo worked together under former President François Hollande at the Elysée before Macron spurned the Socialists to start his own centrist party. Vallaud himself said the Socialists have “expressed their availability to run the country, with a change of political direction.” And that’s part of the problem. Macron doesn’t want a PM who will break from his political agenda. The conservatives have also indicated they won’t be on board with a prime minister from the left, so a Socialist PM would require tacit support from the centrists and the hard-left France Unbowed. PM probability: 2/5 A DASH OF DRAGHI Another possible way forward for the French president would be to appoint a technocratic PM like Mario Draghi who would be able to forge a compromise and bring down the political temperature. Pierre Moscovici, the head of the France’s national audit body, might be the man for the job. A former Socialist, Moscovici has a gleaming resume: he’s been European commissioner and minister under Hollande, a Socialist, and Jacques Chirac, a conservative. As head of France’s Court of Auditors he has his finger on the economic pulse of the country and would know where to cut to bring down France’s deficit. An added asset? Moscovici might be available for employment, as he is due to leave his post by the end of the year. PM probability: 2/5 Sarah Paillou contributed to this report.
Missions
Politics
Budget
Negotiations
Parliament
German coalition agrees on urgent measures to revive economy
BERLIN — Germany’s coalition government agreed on measures to revamp the country’s ailing economy after hours-long negotiations that lasted into early Thursday. Chancellor Friedrich Merz’s conservative alliance and the center-left Social Democratic Party (SPD) have been under pressure to come up with a plan to deliver on the sweeping reforms and a rapid turnaround in the country’s economic mood that they promised since taking office in May. Following two straight years of economic contraction, the government expects growth of 0.2 percent in the current year and an acceleration to 1.3 percent next year. “The economy is under pressure, and everything we decided yesterday reflects this pressure,” Bärbel Bas, the SPD’s labor minister, told reporters in Berlin Thursday morning. “We now need solutions as a matter of urgency, and for our part, I would like to say that we have agreed that we stand by the employees and want to secure jobs in this country.” The total number of unemployed people reached 3.02 million in August — the highest figure in a decade. Manufacturing companies that once drove the postwar economic boom are shedding jobs. These include national champions such as engineering group Robert Bosch —which announced last month that it would cut a further 13,000 jobs by 2030 — automaker Volkswagen, and Germany’s second-largest bank, Commerzbank. Measures designed to stabilize the economy and secure jobs include financial incentives for retirees to continue working and stricter rules for beneficiaries of the long-term unemployment benefit system. Merz spoke of a “really great working atmosphere” between the negotiators and promised a quick implementation of the measures. The incentives for pensioners would be adopted in Cabinet next week, he said, while the the legislative process on the reform of the long-term unemployment system is “to be opened immediately.” The latter topic is especially sensitive for Merz’s coalition partner, the SPD, who are known to be staunch supporters of Germany’s strong welfare state and workers’ right. Under the agreement, long-term unemployment benefits will be reduced by 30 percent if a beneficiary misses two consecutive appointments at the employment office, ultimately losing all benefits if the person fails to show up for the third appointment. “If 100,000 more people are encouraged to leave the long-term unemployment system by incentives that make work more worthwhile than unemployment, the rule of thumb is that we will save around €1 billion. That is our goal,” said Bas, who is also the co-chair of the SPD. “Our common goal is to get people into work. Then we will make real savings,” she added.
Politics
Negotiations
German politics
Cars
Companies