BRUSSELS — If you ordered Christmas presents from a Chinese web shop, they are likely to be toxic, unsafe or undervalued. Or all of the above. The EU is trying to do something about the flood but is tripping over itself 27 times to get there. “It’s absolutely crazy…” sighs one EU official. The official, granted anonymity to discuss preparations to tackle the problem, said that at some airport freight hubs, an estimated 80 percent of such inbound packages don’t comply with EU safety rules. The numbers are dizzying. In 2024, 4.6 billion small packages with contents worth less than €150 entered the EU. That all-time record was broken in September of this year. Because these individual air-mail packages replace whole containers shipping the same product, the workload for customs officials has increased exponentially over recent years. Non-compliant, cheaply-made products — such as dangerous toys or kitchen items — bring health risks. And a growing pile of garbage. It’s a problem for everyone along the chain. Customs officers can’t keep up; buyers end up with useless products; children are put at risk; and EU makers of similar items are undercut by unfair and untaxed competition. With the situation on the ground becoming unmanageable, the EU agreed this month to charge a €3 fixed fee on all such packages. This will effectively remove a tax-free exemption on packages worth €150 — but only from July of next year. It’s a crude, and temporary, fix because existing customs IT systems can’t yet tax items according to their actual value. ALL I WANT … Which is why all European lawmaker Anna Cavazzini wants for next year’s holiday season is “better rules.” Cavazzini is a key player in a push to harmonize the EU’s 27 national customs regimes. A proposed reform, now being discussed by the EU institutions, would create a central data hub and an EU Customs Agency, or EUCA, with oversight powers. As is so often the case in the EU, though, the customs reform is only progressing slowly. The EUCA will be operational only from late 2026. And the data hub probably won’t be up and running until the next decade. “We need a fundamental discussion on the Europeanization of customs,” Cavazzini told POLITICO. As chair of the European Parliament’s Internal Market and Consumer Protection Committee (IMCO), the lawmaker from the German Greens has been pushing the Council, the EU’s intergovernmental branch, to allow the customs reform to make the bloc’s single market more of a unified reality. European lawmaker Anna Cavazzini. | Martin Bertrand and Hans Lucas/AFP via Getty Images EU capitals worry — as always — about handing over too much power to the eurocrats in Brussels. But the main outstanding issue where negotiators disagree is more prosaic: it’s about whether the law should include an explicit list of offences, such making false declarations to customs officers. While the last round of negotiations in early December brought some progress on other areas, the unsolved penalties question has kicked the reform into 2026. With the millions of boxes, packages and parcels inbound, regardless, individual countries are also considering handling fees, beside the €3 tax that all have agreed on. France has already proposed a solo fee with revenues flowing into its national budget, and Belgium and the Netherlands will probably follow suit. RACE TO THE BOTTOM Customs reform is what’s needed, not another round of fragmented fees and a race to the bottom, said Dirk Gotink, the European Parliament’s lead negotiator on the customs reform. “Right now, the ideas launched by France and others are not meant to stem the flow of packages. They are just meant to earn money,” the Dutch center-right lawmaker told a recent briefing. To inspect the myriad ways in which they are a risk, Gotink’s team bought a few items from dubious-looking web shops. “With this one, the eyes are coming off right away,” he warned before handing a plush toy to a reporter. The reporter almost succeeded in separating the head from the creature’s body without too much effort. And thin, plastic eyes trailed the toy as it was passed around the room. “On the box it says it’s meant for people over 15 years old…” one reporter commented. But the cute creature is clearly targeted at far younger audiences. Adding to the craze, K-pop stars excitedly unbox new characters in online promotional videos. The troubles aren’t limited to toys. A jar of cosmetics showed by Gotink had inscriptions on its label that didn’t resemble any known alphabet. Individual products aside, the deluge of cheap merchandise also creates unfair competition, said Cavazzini: “A lot of European companies of course also fulfill the environmental obligations and the imports don’t,” she said. “This is also creating a huge unlevel playing field.” After the holidays, Gotink and Cavazzini will pick up negotiations on the customs reform with Cyprus, which from Jan. 1 takes over the rotating presidency of the Council of the EU from Denmark. “This file will be a priority during our presidency,” a Cypriot official told POLITICO, adding that Denmark had completed most of the technical work. “We aim to conclude this important file, hoping to reach a deal with the Parliament during the first months of the Cyprus Presidency.” Despite the delays, an EU diplomat working on customs policy told POLITICO that the current speed of the policy process is unprecedented: “This huge ecommerce pressure has really made all the difference. A year ago, this would have been unimaginable.”

Brussels’ battle over whether plant-based foods can be sold as “veggie burgers” and “vegan sausages” ended the year in stalemate on Wednesday, after talks between EU countries and the European Parliament collapsed without a deal. French centre-right lawmaker Céline Imart, a grain farmer from southern France and the architect of the naming ban, arrived determined to lock in tough restrictions on plant-based labels, according to three people involved. Her proposal, dismissed as “unnecessary” inside her own political family, was tucked inside a largely unrelated reform of the EU’s farm-market rulebook. It slipped through weeks of talks untouched and unmentioned, only reemerging in the final stretch — by which point even Paul McCartney had asked Brussels to let veggie burgers be. The Wednesday meeting quickly veered off course. Officials said Imart moved to reopen elements of the text that negotiators believed had already wrapped up, including sensitive rules for powerful farm cooperatives. She then sketched out several possible fallbacks on dairy contracts — a politically charged issue for many countries — but without settling on a clear line the rest of the Parliament team could rally behind. “And then she introduced new terms out of nowhere,” one Parliament official said, after Imart proposed adding “liver” and “ham” to the list of protected meat names for the first time. “It was very messy,” another Parliament official said. EU countries, led in the talks by Denmark, said they simply had no mandate to move — not on the naming rules and not on dairy contracts. With neither side giving ground, the discussions ground to a halt. “We did not succeed in reaching an agreement,” Danish Agriculture Minister Jacob Jensen said. Imart insisted that the gap could still be bridged. Dairy contracts and meat-related names “still call for further clarification,” she said in a written statement, arguing that “tangible progress” had been made and that “the prospect of an agreement remains close,” with negotiations due to resume under Cyprus in January. “We did not succeed in reaching an agreement,” Danish Agriculture Minister Jacob Jensen said. | Thierry Monasse/Getty Images) Dutch Green lawmaker Anna Strolenberg, who was in the room, said she was relieved: “It’s frustrating that we keep losing time on a veggie burger ban — but at least it wasn’t traded for weaker contracts [for dairy farmers].” For now, that means veggie burgers, vegan nuggets and other alternative-protein products will keep their familiar names — at least until Cyprus picks up the file in the New Year and Brussels’ oddest food fight resumes.

Paul McCartney has joined forces with U.K. MPs who are urging Brussels to scrap any plans to ban the use of meat-related names such as “burger” and “sausage” for plant-based products. The proposed EU ban, if passed into law, would prohibit food producers from using designations such as “veggie burger” or “vegan sausage” for plant-based and lab-grown dishes. “To stipulate that burgers and sausages are ‘plant-based,’ ‘vegetarian’ or ‘vegan’ should be enough for sensible people to understand what they are eating,” the former Beatles star, who became a vegetarian in 1975, told The Times of London. “This also encourages attitudes essential to our health and that of the planet.” The proposed EU ban “could increase confusion” and “undermine economic growth, sustainability goals, and the EU’s own simplification agenda,” eight British MPs, including Jeremy Corbyn, wrote in a letter to Brussels. The Times reported the contents of the letter Saturday evening. The missive includes the support of the McCartney family, which owns a business selling vegetarian food and recipes. The looming ban stems from an amendment that French center-right MEP Céline Imart introduced into legislation that aims to reform EU farming rules. These proposed reforms include how farmers sign contracts with buyers alongside other technical provisions. The bill is now subject to legislative negotiations with the Council of the EU, which represents EU governments.  The proposed rules will become law if and when MEPs and the Council agree on a final version of the legislation to become EU law. MPs in the U.K. fear that the ban, if it survives, would also impact British supermarkets, as markets and companies across the continent are so closely intertwined. Imart’s burger-busting tweaks were supposed to be a gesture of respect toward the French farmers that she represents — but they have divided MEPs within her own European People’s Party. “A steak is not just a shape,” Imart told POLITICO in an interview last month. “People have eaten meat since the Neolithic. These names carry heritage. They belong to farmers.” Limiting labels for vegetarian producers will also help shoppers understand the difference between a real burger and a plant-based patty, according to Imart, despite years of EU surveys showing consumers largely understand the difference. U.K. MPs also cite research in their letter, stating that European shoppers “overwhelmingly understand and support current naming conventions” such as “veggie burger.”

The Netherlands should veto fewer decisions in Brussels and boost European Union integration, Dutch prime minister hopeful Rob Jetten said. “We want to stop saying ‘no’ by default, and start saying ‘yes’ to doing more together,” he told POLITICO in an interview via messaging app after the final electoral debate Tuesday night. “I cannot stress enough how dire Europe’s situation will be if we do not integrate further,” he continued. “The Netherlands is one of the founding countries of the European Union,” Jetten pointed out ahead of election day, Wednesday. “We are proud of that history, and now we want to be a leading voice in shaping its future.” Jetten’s Democrats 66 has seen a doubling in popularity, from 11 seats projected at the end of September to reaching the same level as giants far-right Party for Freedom (PVV) and GreenLeft-Labor this past Tuesday night, at 23 seats each — and ahead of the Christian Democrats, who are trailing at 19 seats. The Netherlands has traditionally maintained a conservative stance on treaty reform and has opposed dropping unanimity among countries as a requirement for some key decisions, such as letting new members into the bloc. The Dutch, who are known to punch above their weight in shaping debates, have also been traditionally frugal, and generally oppose joint EU borrowing. Especially in the last year, when its government included a tinge of the Euroskeptic far right, the Netherlands has kept Brussels at arm’s length, including by asking for an opt-out on the bloc’s migration policy — though it has remained in sync on other topics, such as sanctions for Israel and military support to Ukraine. “I want a return of the Netherlands to the role of kingmaker in Europe,” Jetten said. “We used to play that role. And when we did, it was for the better,” he added. Europe must transform itself into a serious “democratic global power,” Jetten continued. “That means giving the EU the power and the resources to do what citizens all across Europe are asking it to do: defend our territory against Putin’s aggression, grow the economy, protect the climate.” LAST GOVERNMENT’S ANTITHESIS Observers credit Jetten’s optimism in an otherwise gloomy campaign, focused on quarrels between the left and right, as key to his last-minute success. His participation in the popular Dutch TV contest “The Smartest Person,” where he managed to end up third, also helped make Jetten a more visible personality. If he succeeds, Jetten would be the Netherlands’ youngest and first openly gay prime minister — standing in stark contrast to Dick Schoof, the 68-year-old ex-civil servant appointed by Wilders to lead the previous (right-wing) government. But Jetten dismisses any focus on identity politics. “I’m not the gay candidate, nor the young candidate,” he said. “Much more relevant is that voters are rejecting a failed experiment with the far right. We lost time, our public finances worsened and nothing gets done.” “My party wants to infuse a renewed optimism into Dutch politics,” he confirmed.   The Netherlands was long dominated by Mark Rutte’s People’s Party for Freedom and Democracy (VVD) — the fiscally conservative force now led by Dilan Yeşilgöz. But if projections hold, D66 and Rob Jetten could overtake the VVD, claiming the mantle of the country’s leading liberal party.  Asked about the possibility of becoming prime minister, Jetten responded: “I stand ready to lead if I’m given the chance. It would be a privilege to have the support and cooperation of other parties. It is our political tradition.” When it comes to potential coalition partners, Jetten brushed off traditional political labels. “The whole left-right discussion is outdated,” he said. He would seek to form a pro-European government that invests in education, builds homes for everyone and ramps up climate action. “We are ready to work with all those democratic forces who want to make that happen.”  Despite his party’s positive trajectory, Dutch polls are known to be unpredictable, with many voters not deciding until the last minute. Gerardo Fortuna contributed reporting.

BRUSSELS — Heard the one about the 12-and-half-hour meeting of 27 national leaders that succeeded in agreeing very little apart from coming up with quite a lot of “let’s decide in a couple of months” or “let’s just all agree on language that means absolutely nothing but looks like we’re united” or “let’s at least celebrate that we got through this packed agenda without having to come back on Friday”? No? Well let us enlighten you. And if that makes you question how we’ve managed to squeeze 29 things out of this, well let’s just say one of these is about badly functioning vending machines… 1 . STRAIGHT OUT OF THE BOX WITH A QUICK WIN ON SANCTIONS … The day was off to a flying start when Slovak Prime Minister Robert Fico lifted his veto over the latest raft of Russia sanctions on the eve of the summit — allowing the package to get formally signed off at 8 a.m. before leaders even started talking. Fico rolled over after claiming to achieve what he set out to do: clinch support for Slovakia’s car industry. He found an unusual ally in German Chancellor Friedrich Merz who he met separately to discuss the impact of climate targets on their countries’ automotive sectors. 2. … BUT AGREEMENT ON FROZEN RUSSIAN ASSETS WAS LESS FORTHCOMING There was a moment earlier in the week where the EU looked to be on the cusp of a breakthrough on using Russian frozen assets to fund a €140 billion loan for Ukraine. Belgium, the main holdout, appeared to be warming to the European Commission’s daring idea to crack open the piggy bank. But Belgian Prime Minister Bart De Wever stuck by his guns , saying he feared taking the assets, which are held in a Brussels-based financial depository, could trigger Moscow to take legal action. 3. BELGIUM DIDN’T MOVE ON ITS BIG THREE BIG DEMANDS The Flemish right-winger’s prerequisites were threefold: the “full mutualization of the risk,” guarantees that if the money has to paid back, “every member state will chip in,” and for every other EU country that holds immobilized assets to also seize them. Leaders eventually agreed on that classic EU summit outcome: a fudge. They tasked the European Commission to “present options” at the next European Council — effectively deciding not to decide. “Political will is clear, and the process will move forward,” said one EU official. But it’s uncertain whether a deal can be brokered by the next summit, currently set for December. 4. DE WEVER REJECTS THE ‘BAD BOY’ LABEL After POLITICO ranked the Belgian leader among its list of “bad boys” likely to disrupt Thursday’s summit (rightfully, might we add), he protested the branding. “A bad boy! Me? … If you talk about the immobilized assets, we’re the very, very best,” he said. The day was off to a flying start when Slovak Prime Minister Robert Fico lifted his veto over the latest raft of Russia sanctions on the eve of the summit. | Olivier Hoslet/EPA 5. URSULA VON DER LEYEN ALSO CONCEDED THEY’RE NOT QUITE THERE YET The high-level talks “allowed us to identify points we need to clarify,” the Commission president said tactfully. “Nobody vetoed nothing today,” European Council President António Costa chimed in. “The technical and legal aspects of Europe’s support need to be worked upon.” Translation in case you didn’t understand the double negative: The EU needs to come up with a better plan to reassure Belgium — and fast. 6. UKRAINE: EVER THE OPTIMIST Ukrainian President Volodymyr Zelenskyy ― a guest of the summit ― told reporters Russia must pay the price for its invasion, calling on the EU to follow through with its frozen assets proposal, adding he thought the leaders were “close” to an agreement. “If Russia brought war to our land, they have to pay for this war,” he said. 7. AND ZELENSKYY IS STILL HOLDING OUT FOR TOMAHAWKS “We will see,” was Zelenskyy’s message on the topic of acquiring the long-range missiles from the U.S., which Donald Trump has so far ruled out selling to Kyiv. “Each day brings something … maybe tomorrow we will have Tomahawks,” Zelenskyy said. “I don’t know.” 8. UKRAINE WANTS GERMANY TO SEND MORE WEAPONS TOO Merz held a meeting with Zelenskyy about “the situation in Washington and the American plans that are now on the table,” a German official said, adding Zelenskyy made “specific requests” to the chancellor about helping Ukraine with its “defense capabilities.” After the summit, the German leader said Berlin would review a proposal on how German technologies could help to protect Ukrainian’s energy and water infrastructure. 9. THUMBS UP TO DEFENSE ROADMAP! EU leaders endorsed the Defense Readiness Roadmap 2030 presented last week by the Commission, which aims to prepare member countries for war by 2030. One of its main objectives is to fill EU capability gaps in nine areas: air and missile defense, enablers, military mobility, artillery systems, AI and cyber, missile and ammunition, drones and anti-drones, ground combat, and maritime. The plan also mentions areas like defense readiness and the role of Ukraine, which would be heavily armed and supported to become a “steel porcupine” able to deter Russian aggression. As leaders deliberated, a Russian fighter jet and a refueling aircraft briefly crossed into Lithuanian airspace from the Kaliningrad region, underscoring the need for the EU to protect its skies. 10. KYIV IS PROMISING TO BUY EUROPEAN — MOSTLY Ukraine will prioritize domestic and European industry when spending cash from the proposed reparation loan funded by Russia’s frozen assets, Zelenskyy told leaders at the summit — but wants to be able to go across the pond when necessary. 11. MUCH THE SAME FOR SPAIN Spanish leader Pedro Sánchez said the country had committed to contributing cash to a fund organized by NATO to buy weapons for Ukraine from the U.S. | Nicolas Tucat/Getty Images Spanish leader Pedro Sánchez said the country had committed to contributing cash to a fund organized by NATO to buy weapons for Ukraine from the U.S. “Today, most of the air defense components, such as Patriots or Tomahawks … which Ukraine clearly needs, are only manufactured in the United States,” he said. Madrid has been a thorn in Washington’s side over its lax defense spending. 12. THERE WAS A MERCOSUR SURPRISE Merz stunned trade watchers when he announced the leaders had backed a controversial trade agreement with Latin American countries. “We voted on it today: The Mercosur agreement can be ratified,” the German chancellor told reporters, adding that he was “very happy” about that. “All 27 countries voted unanimously in favor,” Merz added on Mercosur. “It’s done.” The remark sparked confusion amongst delegations, as the European Council doesn’t usually vote on trade agreements — let alone one as controversial as the mammoth agreement with the countries of the Latin American bloc of Mercosur, which has been in negotiations for over 25 years. One EU diplomat clarified that it’s because European Council President António Costa sought confirmation from EU leaders that they would agree to take a stance on the deal by the end of this year — and no formal vote was taken yet. 13. CLIMATE TALKS PASSED WITHOUT A HITCH One of the hotter potatoes ahead of the summit passed surprisingly smoothly. Leaders ultimately refrained from bulldozing the EU’s climate targets, agreeing to a vaguely worded commitment to a green transition, though without committing to a 2040 goal, which proposes cutting emissions by 90 percent compared to 1990 levels. In the words of one diplomat: “Classic balance, everyone equally unhappy.” 14. AT LEAST ONE LEADER SEEMED PLEASED, THOUGH Polish Prime Minister Donald Tusk called the summit a “turning point” in Europe’s approach to green policy, adding he succeeded in inserting a “revision clause” into the EU’s plan to extend its carbon-trading system to heating and transport emissions that will give member countries the option to delay or adjust the rollout. “We’ve defused a threat to Polish families and drivers,” he declared, calling the change a signal that “Europe is finally speaking our language.” 15. BUT THE ISSUE WON’T STAY BURIED FOR LONG Ministers are set to reconvene and cast a vote on the 2040 goal on Nov. 4, described by one diplomat as “groundhog day.” 16. MEANWHILE, THERE WAS NOTHING ON MIGRATION … Polish Prime Minister Donald Tusk called the summit a “turning point” in Europe’s approach to green policy. | Thierry Monasse/Getty Images Aside from promising to make migration a “priority,” the EU’s leaders failed to make any kind of breakthrough on a stalled proposal for burden-sharing. Reminder: The EU missed a deadline last week to agree on a new way of deciding which member countries are under stress from receiving migrants and ways of sharing the responsibility more equally across the bloc. 17. … BUT THE ANTI-MIGRANT BREAKFAST CLUB LIVES ON Italy’s Giorgia Meloni, Denmark’s Mette Frederiksen and the Netherlands’ Dick Schoof have kept up their informal pre-summit “migration breakfasts” since last June, swapping innovative ideas on tougher border and asylum policies. They met again on Thursday with von der Leyen, who updated them on the EU’s latest plans for accelerating migrant returns, and the trio agreed an informal summit will take place next month in Rome. 18. NOR DID THE EU’S SOCIAL MEDIA BAN GET MUCH OF A LOOK IN As expected, the leaders endorsed a “possible” minimum age for kids to use social media, but failed to commit to a bloc-wide ban, with capitals divided on whether to make the age 15 or 16, as well as on the issue of parental consent. 19. THERE WAS A WHOLE LOT OF WAITING FOR NEWS… Journalists were frantically pressing their sources in the Council and national delegations to find out what was happening at the leaders’ table as the meeting dragged into the late hours. It eventually finished at 10.30 p.m. ― 12 and a half hours after it began. 20. … AND THE GREENS SEIZED THEIR MOMENT The EU Parliament’s Greens group co-chair Bas Eickhout wandered the hallways of the Justus Lipsius building ready to brief bored journalists about the wonders of the Green Deal — while leaders debated how to unravel it in the other room. 21. THE COMBUSTION ENGINE BAN FELL FLAT One of the pillars of the EU’s green transition, its 2035 de facto combustion engine ban, was set to play a major role in the competitiveness and climate discussions, with Merz and Fico spoiling for a fight over the proposal — yet it barely registered as a footnote. Slovakia used the climate talks to oppose the ban, and the Czech Republic chimed in to agree, but in the end the summit’s official conclusions welcomed the Commission’s proposed ban without mentioning how it should be watered down. 22. THE EUROPEAN COUNCIL’S VENDING MACHINES AREN’T VERY, ER, COMPETITIVE Officials and journalists alike found that the vending machines in the EU’s Justus Lipsius building, which incidentally is due for a €1 billion renovation, about as efficient as a roundtable of 27 national leaders lasting 12 and a half hours. 23. THE BLOC IS WORRIED ABOUT CHINA… Beijing’s export controls on rare earths came up in the talks on competitiveness, according to two EU officials, with some leaders expressing their concerns. 24. … BUT THEY’RE NOT READY TO GO NUCLEAR — YET One of the officials said the EU’s most powerful trade weapon, the Anti-Coercion Instrument, was mentioned, but didn’t garner much interest around the table. 25. HOUSING GETS 40 MINUTES — NOT BAD FOR A FIRST RUN Leaders spent a chunk of time discussing the continent’s housing crisis. A solid start for the topic, which made it onto the agenda for the first time at Costa’s behest. The EU executive “is ready to help,” von der Leyen said after the summit, announcing a European Affordable Housing Plan is in the pipeline and the first EU Housing Summit in 2026. | Dursun Aydemir/Getty Images During talks, Greek Prime Minister Kyriakos Mitsotakis called on the Commission to create a database tracking which housing policies work — and which don’t — across Europe. Most leaders agreed that, while housing remains a national competence, the EU still has a role to play. 26. AND THE COMMISSION WANTS TO ROLL UP ITS SLEEVES The EU executive “is ready to help,” von der Leyen said after the summit, announcing a European Affordable Housing Plan is in the pipeline and the first EU Housing Summit in 2026. 27. LEADERS ENJOYED A FEAST OR TWO For lunch, langoustine with yuzu, celeriac and apple, fillet of veal with artichokes and crispy polenta, and a selection of fresh fruit. For dinner, cannelloni with herbs, courgette velouté, fillet of brill with chorizo and pepper, and fig meringue cake. Yum. 28. THOUGH A FEW COULDN’T MAKE IT Hungarian Prime Minister Viktor Orbán was the most notable absence, rocking up several hours late due to a national holiday in Budapest. Portugal and Slovenia’s leaders were also absent at one point. 29. AND COSTA KEPT HIS PROMISE … JUST The European Council president pledged to streamline summits under his watch, making them one-day affairs instead of two. And with just a couple hours to spare, he was successful. Okay, breathe. Did we miss anything? (Don’t answer that.) Gerardo Fortuna, Max Griera Andrieu, Jordyn Dahl, Gabriel Gavin, Hanne Cokelaere, Clea Caulcutt, Hans von der Burchard, Kathryn Carlson, Tim Ross, Jacopo Barigazzi, Gregorio Sorgi, Eliza Gkritsi, Carlo Martuscelli, Nicholas Vinocur, Saga Ringmar, Sarah Wheaton, Louise Guillot, Zia Weise, Camille Gijs, Bartosz Brzezinski and Giedre Peseckyte contributed to this report.

European countries bordering Russia should prepare for the possibility that Washington could draw down its troop numbers in the area by building up their own military capacity, the president of Estonia told POLITICO. Alar Karis said he had lobbied U.S. President Donald Trump on the importance of keeping troops in Eastern Europe when the two men sat next to each other for two hours during the April funeral of Pope Francis. “I explained everything,” the Estonian leader said at the country’s representation to the European Union. “The presence of U.S. troops in Estonia — not only in Estonia, in Europe — is crucial, and it’s important for the United States, not just Europe.” But while Karis has been reassured by some of Trump’s statements, namely his vow this week to keep U.S. troops in Poland, the Estonian leader underscored it was still “very difficult to predict” what Washington would do in the Baltics. Countries like Estonia “have to be prepared for any scenario,” while the risk of a drawdown from NATO’s largest member “means we should build up our own capacity,” added Karis. As president of Estonia, he is commander-in-chief of the country’s armed forces and represents it in international relations. The U.S. currently has some 2,000 soldiers stationed in the Baltic states (Estonia, Lithuania and Latvia) as part of a military buildup in the wake of Russia’s February 2022 full-scale invasion of Ukraine. The Pentagon is currently reviewing its global force posture and is expected to unveil the results at the end of this month. While the contents aren’t known, the review is being prepared under the direction of Under Secretary of Defense for Policy Elbridge Colby, an outspoken proponent of reducing the U.S. presence in Europe. ‘TRUMP’S TEMPER’ Karis’ visit to Brussels — where he met with NATO Secretary-General Mark Rutte — coincided with a gathering of EU leaders in the “coalition of the willing” that is working on security guarantees for Ukraine. The gathering prompted a spokesperson for Russia’s foreign ministry to say that Moscow won’t accept any foreign troops in Ukraine as part of a potential ceasefire. But Karis said Moscow should not have any say in the matter: “Russia started this aggression … The answer is definitely not.” The EU leaders were due to present the conclusions of their work on security guarantees to Trump on Thursday evening. Asked whether he expected Trump to raise the pressure on Putin, Karis — whose country has pledged troops to the initiative — said that “much is dependent on Trump’s temper.” Karis’ visit to Brussels — where he met with NATO Secretary-General Mark Rutte — coincided with a gathering of EU leaders in the “coalition of the willing.” | Olivier Hoslet/EPA “At this moment Estonia and many European countries support what Trump is doing,” Karis said. “He has been discussing with Putin so many times and nothing really happens … I think he is already losing his temper.” Karis arrived in Brussels just a few days after an EU delegation building in Kyiv was damaged by a Russian missile strike — an event he saw as no accident. “The only mistake Putin made was starting the war,” he said. He went on to warn that European countries “should not be naive” regarding the Kremlin’s intention to further test Western democracies in the coming months, such as by election meddling in the upcoming Oct. 3-4 Czech parliamentary election. But he pushed back on the idea that because Estonia and other Baltic states share a border with Russia, they should be more concerned by Moscow’s expansionism. “Modern missiles can start from Moscow and end up in The Hague and Brussels in just a few minutes,” he said. TALKING, CONVINCING As one of Ukraine’s staunchest supporters around the European Council table, Karis said he hoped Kyiv would be able to begin formal negotiations to join the bloc before the end of Denmark’s rotating presidency, which concludes Dec. 31. Asked how the bloc could overcome the opposition of Hungary, which is currently blocking Ukraine’s accession, he said: “We should work on this one country … Maybe we should talk more to [Hungarian Prime Minister Viktor Orbán], not just label him, to find a solution.” Another possibility: “Hungary leaves the room and we make a decision,” he said. The U.S. currently has some 2,000 soldiers stationed in the Baltic states (Estonia, Lithuania and Latvia) as part of a military buildup. | Valda Kalnina/EPA Karis took a similar line vis-à-vis Israel, with several European countries pushing to downgrade trade relations or remove European funding for Israeli research over human rights violations in Gaza. The Estonian leader — who met his Israeli counterpart Isaac Herzog in Estonia last month, and is a molecular geneticist by training — said he believed in “convincing” Israeli leaders to stop humanitarian violations in Gaza. Asked if he supported an initiative to cut off European research funding to Israel, he added: “Israeli scientists are extremely good. We cut off also something for ourselves if we start these kinds of things [cutting off Horizon funding for Israel as the European Commission has proposed]. “There are other solutions. Talking and convincing,” he said.

Poverty in old age will be the norm for a large chunk of Europe’s population unless current retirement policies undergo deep reform, the EU’s workplace pensions regulator has warned. “One in five Europeans is already at risk of living in poverty at old age,” said Petra Hielkema, chief of the Frankfurt-based European Insurance and Occupational Pensions Authority. “[That’s] a ridiculously high percentage, frankly. And if you then look at women, they have a 30 percent larger risk for that,” she told POLITICO in an interview. And it’s getting worse: Europe’s population is aging rapidly, and within 40 years there will be only 1.5 workers for every pensioner. That’s half the current ratio. “Some countries are already there. And that’s unsustainable,” Hielkema said. “Europe has a pension problem and countries that do not have strong supplementary pension systems are really at risk.” For decades, the standard European model has been to rely on a government state pension system to look after citizens in old age. But as people live longer and birth rates fall, the cost of funding these systems is soaring. Add to that the other costs of an aging population, such as health and aged care, and the taxpayer bill becomes eyewatering. One answer is to create complementary private or workplace pension systems to ensure people have a personal pot of pension savings they can draw on in retirement. Scandinavian countries are the best equipped to face the incoming crisis because they have a range of different sources for pensioners: a pay-as-you-go pension system, occupational pension funds — which means that when you work, you also save for your retirement — and further investments in pension products. But many countries, especially in Eastern and Southern Europe, rely mainly on state pensions and have smaller pension checks compared to salaries. In many cases, citizens aren’t really aware of their situations because public authorities and employers don’t provide them with a full overview of their pension entitlements. Brussels can do little more than make suggestions because the competence is at the national level. Still, Hielkema, a Dutch national who has run the occupational pension authority since 2021, is convinced there is “momentum” for a huge change, which will give EIOPA a bigger role. Poverty in old age will be the norm for a large chunk of Europe’s population unless current retirement policies undergo deep reform. | Georgi Licovski/EPA “One, we see the problem is getting bigger, and so do individual governments. And two, let’s be honest, why [are] pensions on the agenda? Because we need more investments, and one way to generate more investments is to move savings from bank accounts into investment products,” she said. WE HAVE A PLAN In the next few months the European Commission will issue recommendations on savings accounts and pensions to address the EU’s demographic and financial challenges. By the end of the year it will propose that governments set up digital accounts for the savings and investments available for each citizen, systems to track pensions, dashboards to communicate pension benefits, and tax incentives to make retirement saving more attractive. It will also review EU rules for workplace pension funds and pension investment products. The key measure in the package is a system to automatically enroll people in occupational pension funds, similar to what is already in place in the United Kingdom, Poland and Italy. “Automatically, you will be included in the pension funds if you work. If you don’t want that, you have to consciously opt out.” Currently, she said, people could opt into a workplace pension, but inertia means few do. “The assumption is that the inertia will also work the other way around,” EIOPA’s chief said, meaning few people would opt out. Where it is in place, the mechanism works and leads to more people saving through their jobs for their retirement, she said.  The idea is to have “something that is also available for people who are self-employed or who are gig workers, to ensure that also they can save for later,” she added. Ultimately national governments must launch such reforms, and the topic of pensions is politically explosive. François Bayrou’s French government lost the support of the Socialists when workers and employers failed to find an agreement on pension reforms. This summer, Germany’s Chancellor Friedrich Merz suggested that young people save for their retirement, triggering a backlash from trade unions in defense of the state pension system. How much is at stake? In Germany workplace pensions amount to €267 billion, whereas in Sweden — a country with one-eighth the population of Germany but where almost everyone has a pension fund — workplace pension savings amount to €516 billion, or 92 percent of GDP.

Faced with a daunting new NATO spending target, Italian politicians are proposing that a long-discussed €13.5 billion bridge to Sicily should be defined as military expenditure. Rome is one of NATO’s lowest military spenders — only targeting 1.49 percent of gross domestic product on its military last year. That makes the new goal of 5 percent by 2035 seem out of reach. And that’s where the bridge could help. The government of Giorgia Meloni is keen to advance with the pharaonic scheme to span the Strait of Messina with what would be world’s longest suspension bridge — a project that has been the dream of the Romans, dictator Benito Mussolini and former Prime Minister Silvio Berlusconi. Both Foreign Minister Antonio Tajani and Infrastructure Minister Matteo Salvini, Meloni’s deputy prime ministers, are playing up the notion that the bridge has a strategic value to NATO rather than a purely economic role — a point that was also stressed in a government report in April. A government official stressed no formal decision had been made on the classification of the bridge as a security project, but said further talks would likely be held soon to “see how feasible this feels.” The idea could be politically useful for Meloni as she struggles to convince a war-wary public of the need for major defense outlays at a time when Italy is already inching toward austerity. There are some clear grounds on which Italy might be able to build a case for the bridge. Of the 5 percent of GDP NATO target, only 3.5 percent needs to be core defense spending, while 1.5 percent can be steered to broader strategic resilience such as infrastructure. An Italian Treasury official also suggested that branding the bridge as a military project would help the government overcome some of the economic and technical barriers that have stopped it being built in the past. For decades, efforts to build the bridge — with a estimated central span of 3.3 kilometers — have repeatedly run into problems of costs, the difficulties of operating in a seismic zone and the challenge of displacing people. The new designation would “override bureaucratic obstacles, litigation with local authorities that could challenge the government in court claiming that the bridge will damage disproportionately their land,” the Treasury official said. It would also “facilitate raising money, especially in the next year, for the bridge.” IMPERATIVE OR RIDICULOUS? In April, the Italian government adopted a document declaring the bridge should be built for “imperative reasons of overriding public interest.” In addition to its civilian use, “the bridge over the Strait of Messina also has strategic importance for national and international security, so much so that it will play a key role in defense and security, facilitating the movement of Italian armed forces and NATO allies,” the document added. Whether NATO — and more importantly U.S. President Donald Trump, who loves a big building project — will buy into that logic is another matter. | Remko de Waal/EPA Italy also requested that the project should be included in the EU’s financing plan for the mobility of military personnel, materiel and assets, as it “would fit perfectly into this strategy, providing key infrastructure for the transfer of NATO forces from Northern Europe to the Mediterranean,” the government report said. The bridge “represents an advantage for military mobility, enabling the rapid transport of heavy vehicles, troops, and resources both by road and rail,” the government added. Whether NATO — and more importantly U.S. President Donald Trump, who loves a big building project — will buy into that logic is another matter. Officially, the Strait of Messina lies outside Italy’s only designated NATO military mobility corridor — which begins at ports in the Puglia region on the heel of the Italian boot, crosses the Adriatic to Albania, and continues on to North Macedonia and Bulgaria. It is also unclear whether the strait features in the EU’s own military mobility network, whose corridors, according to people familiar with the discussions, are expected to align with NATO’s routes. The Americans aren’t showing their hand for now. When asked about the bridge at the NATO summit in The Hague in late June, U.S. aides chuckled, but offered no immediate response. BERLUSCONI BRIDGE Foreign Minister Tajani is a vocal advocate of the bridge. “We will make Italians understand that security is a broader concept than just tanks,” he said in a recent interview with business daily Milano Finanza. “To achieve this, we will focus on infrastructure that also has civilian uses, such as the bridge over the Strait [of Messina], which falls within the concept of defense given that Sicily is a NATO platform,” he added.  Infrastructure Minister Salvini, Meloni’s other deputy, sees the bridge as something that could transform his far-right League party — originally the secessionist Northern League — into a successful nationwide political movement that also commits to a big project in the south. “Of course,” he recently responded when asked by a reporter whether the bridge could help Italy reach its new NATO goal.“Infrastructure is also strategic from a security perspective in many ways, so if we invest more in security, some strategic infrastructure will also become part of this security plan.” Salvini has been pressing for the process to speed up, according to the Treasury official and a lawmaker familiar with internal government dynamics. “Matteo is pushing a lot to obtain some form of ‘approval’ of the project at technical and political level in order to show to the public opinion that something is moving,” the Treasury official said. Opposition parties disagree with both the need to build the bridge and its classification as military spending. Foreign Minister Tajani is a vocal advocate of the bridge. | Oliver Hoslet/EPA “This is a mockery of the citizens and of the commitments made at NATO. I doubt that this bluff by the government will be accepted,” said Giuseppe Antoci, a member of the European Parliament from the left-populist 5Star Movement. “The government should stop and avoid making an international fool of itself, which would cover Italy in ridicule,” he added. Another argument against the project is that it would connect two of Italy’s poorest regions, neither of which has an efficient transport system. Many believe that investing in local streets and railways is more urgent. “The population of Sicily and Calabria suffers from inadequate water infrastructure, snail-paced transport, potholed roads, and third-world hospitals. The bridge over the strait, therefore, cannot be a priority,” Antoci said. But the governing coalition is determined to move forward. On Tuesday, Salvini said the project’s final authorization is expected in July. In a somewhat inauspicious sign, Tajani has proposed naming the bridge after Berlusconi, a prime minister famed for his bunga bunga parties and interminable legal battles.

WASHINGTON — A firebrand State Department political appointee proposed using American taxpayer money to support French far-right leader Marine Le Pen as she appeals her embezzlement conviction, according to two State Department officials. U.S. President Donald Trump and his allies have joined far-right politicians in Europe in condemning Le Pen’s conviction in March as politically motivated. Le Pen, one of Europe’s most recognizable anti-immigrant euroskeptics, has turned her party into a mainstream political force over the past decade and was polling as the frontrunner for France’s 2027 presidential election before her guilty verdict. The two officials, who were granted anonymity because they are not authorized to speak publicly about internal State Department discussions and fear reprisals from department leadership, said a senior adviser within the State Department’s Bureau of Democracy, Human Rights and Labor named Samuel Samson made the initial funding recommendation this week after meeting with the leadership from Le Pen’s party, the National Rally, late last month. Reuters was first to report conversations between Samson and National Rally leadership. While no decision has been made on the recommendation, using funds allocated to promote human rights and combat authoritarian regimes to back the leader of an opposition party — especially one whose founders included Nazi collaborators — would be explosive, potentially undermining the nearly 250-year alliance between France and the United States. A senior State Department official who saw the final document where Samson outlined recommendations said the claims were “flat out false.” That official was granted anonymity because they are not authorized to speak publicly on behalf of the department. The National Rally did not immediately respond to POLITICO’s request for comment. In terms of her conviction, Le Pen and her party were accused of illicitly using money from the European Parliament to pay for party employees who did not work on EU-related business, and the prosecution put forward several pieces of damning evidence during hundreds of hours of court proceedings. Le Pen’s legal team did not dispute the substance of the charges, instead arguing that the distinction between a politician’s work as a lawmaker and as a party member was artificial. The controversy stems from the fact that the court gave Le Pen an immediate five-year ban on running for public office, which would knock her out of the 2027 presidential election barring a successful appeal. Typically in France, defendants can have their punishment temporarily lifted by appealing a verdict, when they return to being presumed innocent. But the court made the rare — though not unprecedented — decision that Le Pen’s crimes were so grave and the risk of recidivism so high that her ban should be handed down immediately. Her appeal is slated for 2026. Samson, a recent graduate of the University of Texas at Austin, according to his LinkedIn profile, is one of several young conservatives to join the ranks since Trump’s return to the White House in January. Earlier this year he wrote an article for the State Department Substack titled “The Need for Civilizational Allies in Europe” in which he waxed lyrical about natural law while calling on Europe to reclaim “Western heritage.” Samson, like Secretary of State Marco Rubio, criticized Germany’s decision to label the far-right Alternative for Germany party as an “extremist” organization and reiterated Trump administration diatribes accusing Europe of cracking down on free speech rights. He also slammed pushback on “Christian nations” such as Hungary. Samson’s efforts are reflective of the Trump administration’s efforts to support aligned political movements around the world and boost friendly governments. Trump administration officials have routinely chided Europe for overstepping in their efforts against the far right, while turning an eye to the human rights abuses of allies in El Salvador and Argentina. The office in which Samson works, the Bureau of Democracy, Human Rights and Labor was created to “advance American security by promoting respect for human rights, bolstering democratic institutions, empowering civil society, promoting and protecting freedom of expression and upholding internationally recognized worker rights.” The department is expected to face significant layoffs as part of Rubio’s plans to overhaul the department, should those plans receive the green light from the Supreme Court. Sarah Paillou in Paris and Clea Caulcutt in Brussels contributed to this report. 

The European Union is gearing up to relax the rules around what sort of cancer-causing chemicals are allowed in cosmetics, in a red-tape slashing exercise that consumer groups warn could put people’s health at risk. In a draft proposal and accompanying document obtained by POLITICO, the European Commission proposes simplifying a set of EU chemical laws spanning cosmetics, fertilizer and chemical classification regulations in a “chemicals omnibus” bill. Along with tweaking rules around carcinogens in cosmetics, it would also simplify laws on advertising and labeling hazardous chemicals, requiring producers to put less precise information in ads and on the front of certain packaging. The proposal, which aims to create a “more predictable and less burdensome regulatory landscape,” is part of the EU’s broader simplification drive aimed at reducing “undue burden” on companies to help Europe’s businesses and boost the economy. The draft bill includes tweaks to the Cosmetic Products Regulation (CPR), a law governing the safety of cosmetic products. Under the CPR, substances that are carcinogenic, mutagenic — i.e. capable of changing genetic material — or toxic for reproduction are broadly banned in cosmetics with some exceptions in specific circumstances. The proposed revision will keep to that principle and derogations from the ban will still have to be assessed and found safe by the Scientific Committee on Consumer Safety. But there are new caveats. If a substance only has those properties when inhaled or digested, for example — but not if it comes into contact with the human skin — it shouldn’t be automatically banned from use in cosmetics. Also, companies will no longer have to prove compliance with food safety requirements to receive a derogation for a substance. Food and cosmetics are “distinct products,” the Commission argues, and just because a product contains an inedible substance doesn’t mean that same chemical won’t be safe when used in a cosmetic formula to be applied on human skin. ‘A CONCERNING DIRECTION’ But the tweaks have not found favor among environmental and consumer groups. “The simplification proposal is taking a concerning direction for consumer protection by extending the use of cancer-causing chemicals in cosmetics,” said Pelle Moos, senior advisor for the European Consumer Organisation, in an emailed statement. “Not only does this clash with consumers’ legitimate expectations to use safe products but also with the Commission’s commitment to maintain high standards of protection.” He called on the Commission to “reconsider and safeguard public health and consumer safety.” Cosmetics Europe’s director general John Chave declined to comment on the leaked document specifically, but stressed that the CPR “remains the international regulatory benchmark for safety” and that his industry “needs to ensure that our products are safe” as a “sacrosanct” principle. Still, he added, the current process allowing companies to get exemptions for chemicals from the automatic CPR ban “does not always allow the industry to demonstrate safety, for example because of vague criteria, or unrealistic deadlines.” “This can stop us from using substances which have been scientifically assessed as perfectly safe for use in cosmetics.” The omnibus would also simplify rules on how to classify, label and package chemicals under the Classification, Labelling and Packaging Regulation — which only entered into force in December. As previously reported by POLITICO, the proposal suggests loosening formatting, labeling and advertising requirements for hazardous chemicals. Originally, for example, the rules stipulated that any advertisement for hazardous substances must indicate the necessary hazard symbols and statements, on top of the statement: “Always follow the information on the product label,” for adverts to the general public. That would all be replaced by a simple sentence for adverts to the general public: “Always read the label and product information before use.” ClientEarth legal expert Julian Schenten said the Commission’s plans to revise its chemical classification, labeling and packing rules put “business interests ahead of people’s health and environmental safety.” Part of the Commission’s justification for doing away with certain labeling rules lies in reducing paper use for environmental reasons, which Schenten described as “absurd.” “Let’s be clear: cutting paperwork does not make toxic products any safer,” he added. “The reduction of administrative burden on companies should lead to societal gains in terms of wealth creation, employment and innovation,” argues the Commission in the draft document. “At the same time, the proposal seeks to ensure a high level of protection of human health and of the environment.” The chemicals omnibus — alongside an “action plan” for Europe’s struggling chemicals industry — is now expected July 8.