BRUSSELS — More than 80 percent of Europe’s companies will be freed from
environmental-reporting obligations after EU institutions reached a deal on a
proposal to cut green rules on Monday.
The deal is a major legislative victory for European Commission President Ursula
von der Leyen in her push cut red tape for business, one of the defining
missions of her second term in office.
However, that victory came at a political cost: The file pushed the coalition
that got her re-elected to the brink of collapse and led her own political
family, the center-right European People’s Party (EPP), to team up with the far
right to get the deal over the line.
The new law, the first of many so-called omnibus simplification bills,
will massively reduce the scope of corporate sustainability disclosure rules
introduced in the last political term. The aim of the red tape cuts is to boost
the competitiveness of European businesses and drive economic growth.
The deal concludes a year of intense
negotiations between EU decision-makers, investors, businesses and
civil society, who argued over how much to reduce reporting obligations for
companies on the environmental impacts of their business and supply chains — all
while the effects of climate change in Europe were getting worse.
“This is an important step towards our common goal to create a more favourable
business environment to help our companies grow and innovate,” said Marie
Bjerre, Danish minister for European affairs. Denmark, which holds the
presidency of the Council of the EU until the end of the year, led the
negotiations on behalf of EU governments.
Marie Bjerre, Den|mark’s Minister for European affairs, who said the agreement
was an important step for a more favourable business environment. | Philipp von
Ditfurth/picture alliance via Getty Images
Proposed by the Commission last February, the omnibus is designed to address
businesses’ concerns that the paperwork needed to comply with EU laws is costly
and unfair. Many companies have been blaming Europe’s overzealous green
lawmaking and the restrictions it places on doing business in the region for low
economic growth and job losses, preventing them from competing with U.S. and
Chinese rivals.
But Green and civil society groups — and some businesses too
— argued this backtracking would put environmental and human health at risk.
That disagreement reverberated through Brussels, disturbing the balance of power
in Parliament as the EPP broke the so-called cordon sanitaire — an unwritten
rule that forbids mainstream parties from collaborating with the far right — to
pass major cuts to green rules. It set a precedent for future lawmaking in
Europe as the bloc grapples with the at-times conflicting priorities of boosting
economic growth and advancing on its green transition.
The word “omnibus” has since become a mainstay of the Brussels bubble vernacular
with the Commission putting forward at least 10 more simplification bills on
topics like data protection, finance, chemical use, agriculture and defense.
LESS PAPERWORK
The deal struck by negotiators from the European Parliament, EU Council and the
Commission includes changes to two key pieces of legislation in the EU’s arsenal
of green rules: The Corporate Sustainability Reporting Directive (CSRD) and the
Corporate Sustainability Due Diligence Directive (CSDDD).
The rules originally required businesses large and small to collect and
publish data on their greenhouse gas emissions, how much water they use, the
impact of rising temperatures on working conditions, chemical leakages and
whether their suppliers — which are often spread across the globe — respect
human rights and labor laws.
Now the reporting rules will only apply to companies with more than 1,000
employees and €450 million in net turnover, while only the largest companies —
with 5,000 employees and at least €1.5 billion in net turnover — are covered by
supply chain due diligence obligations.
They also don’t have to adopt transition plans, with details on how they intend
to adapt their business model to reach targets for reducing greenhouse gas
emissions.
Importantly the decision-makers got rid of an EU-level legal framework that
allowed civilians to hold businesses accountable for the impact of their supply
chains on human rights or local ecosystems.
MEPs have another say on whether the deal goes through or not, with a final vote
on the file slated for Dec. 16. It means that lawmakers have a chance to reject
what the co-legislators have agreed to if they consider it to be too far from
their original position.
Tag - due diligence
The EU is adding Russia to its blacklist of countries at high risk of money
laundering and financing terrorism, according to two EU officials and a document
seen by POLITICO.
The global watchdog Financial Action Task Force (FATF) suspended Russia as a
member after the full-scale invasion of Ukraine, but failed to blacklist it,
despite evidence presented by the Ukrainian government, because of opposition
from countries in the BRICS group of emerging economies, which includes Brazil,
India, China, and South Africa.
EU lawmakers called on the Commission many times to do what FATF was not able
to. The Commission committed to complete a review by the end of 2025 to get
their support to remove the United Arab Emirates and Gibraltar from the list
earlier this year.
POLITICO saw a draft of the Russia decision, which will be an annex to the list.
In other internal documents, the Commission had said that the assessment was
complicated by the lack of information-sharing with Moscow.
The EU already has a wide range of sanctions heavily limiting access to EU
financial services for Russian firms. The blacklisting is landing as the EU
executive is trying to end Belgium’s resistance to using the revenues from
Moscow’s frozen assets to fund Ukraine.
The move will oblige financial institutions to strengthen due diligence on all
transactions and force banks that have not already acted to further de-risk.
The EU has usually aligned itself with FATF decisions, but from this year, it
has its own Anti-Money Laundering Authority. AMLA will contribute to drafting
the blacklist from July 2027.
Dutch top official Hennie Verbeek-Kusters, a former chair of the financial
intelligence cooperation body Egmont Group, is set to join the AMLA authority
executive board after a positive hearing with lawmakers held behind closed
doors, one of the EU officials said. A vote on the appointment is due on Dec.
15, said a third official.
Heidi Kingstone is a journalist and author covering human rights issues,
conflict and politics. Her most recent book is “Genocide: Personal Stories, Big
Questions.”
Slavery is alive and thriving, and it’s wrapped inside shiny chocolate bars that
promise to be “fair trade,” “child-labor free” and “sustainable.”
In West Africa, which produces more than 60 percent of the world’s cocoa, over
1.5 million children still work under hazardous conditions. Kids, some as young
as five, use machetes to crack pods open in their hands, carry loads that weigh
more than they do and spray toxic pesticides without protection.
Meanwhile, of the roughly 2 million metric tons of cocoa the Ivory Coast
produces each year, between 20 percent and 30 percent is grown illegally in
protected forests. And satellite data from Global Forest Watch shows an increase
in deforestation across key cocoa-growing regions as farmers, desperate for
income, push deeper into forest reserves.
The bitter truth is that despite decades of pledges, certification schemes and
packaging glowing with virtue — of forests saved, farmers empowered and
consciences soothed — most chocolate companies have failed to eradicate
exploitation from their supply chains.
Today, many cocoa farmers in the Ivory Coast and Ghana still earn less than a
dollar a day, well below the poverty line. According to a 2024 report by the
International Cocoa Initiative, the average farmer earns only 40 percent of a
living wage.
Put starkly, as the global chocolate market swells close to a $150 billion a
year in 2025, the average farmer now receives less than 6 percent of the value
of a single chocolate bar, whereas in the 1970s they received more than 50
percent.
Then there’s the use of child labor, which is essentially woven into the fabric
of this economy, where we have been sold the illusion of progress. From the 2001
Harkin-Engel Protocol — a voluntary agreement to end child labor by the world’s
chocolate giants — to today’s glossy environmental, social and governance (ESG)
reports, every initiative has promised progress and delivered delay.
In 2007, the industry quietly redefined “public certification,” shifting it from
a commitment to consumer labeling to a vague pledge to compile statistics on
labor conditions. It missed the original 2010 deadline to eliminate child labor,
as well as a new target to reduce it by 70 percent by 2020. And that year, a
study by the University of Chicago’s National Opinion Research Center found that
hazardous child labor in cocoa production increased from 2008 to 2019.
“We covered a story about a ship carrying trafficked children,” recalled
journalist Humphrey Hawksley, who first exposed the issue in the BBC documentary
called Slavery: A Global Investigation. “The chocolate companies refused to
comment and spoke as one industry. That was their rule. Even now, none of them
is slave-free,” he added.
As it stands, many of the more than 1.5 million West African children working in
cocoa production are trafficked from neighboring Burkina Faso and Mali.
Traffickers lure them with false promises or outright abduction, offering
children as young as 10 either bicycles or small sums to travel to the Ivory
Coast. There, they are sold to farmers for as little as $34 each.
And once on these farms, they are trapped. They work up to 14 hours a day, sleep
in windowless sheds with no clean water or toilets, and most never see the
inside of a classroom.
Last but not least, we come to deforestation: Since its independence, more than
90 percent of the Ivory Coast’s forests have disappeared due to cocoa farming.
In 2024, deforestation accelerated despite corporate commitments to halt it by
2025, as declining soil fertility and stagnant prices pushed farmers farther
into the forest to plant new cocoa trees.
But as Reuters Correspondent for West and Central Africa Ange Aboa described
them, such labels are “the biggest scam of the century!” | Lena Klimkeit/Picture
Alliance via Getty Images
Certification labels like “Rainforest Alliance” and “Fairtrade” are supposed to
prevent this. But as Reuters Correspondent for West and Central Africa Ange Aboa
described them, such labels are “the biggest scam of the century!”
Complicit in all of this are the financiers and investors who profit. For
example, Norway’s sovereign wealth fund is the world’s largest investor, and
Norges Bank Investment Management (NBIM) is a shareholder in 9,000 corporations,
including Nestlé, Mondelez, Hershey, Barry Callebaut and Lindt — all part of the
direct chocolate cluster. NBIM also has shares in McDonald’s, Starbucks,
Unilever, the Dunkin’ parent company and Tim Hortons — the indirect high-volume
buyer cluster.
“The richest families in cocoa — the Marses, the Ferreros, the Cargills, the
Jacobs — are billionaires thanks to the exploitation of the poorest children on
earth,” said journalist and human rights campaigner Fernando Morales-de la Cruz,
the founder of Cacao for Change. “And countries like Norway, which claim to be
ethical, profit from slavery and child labor.”
The problem is, few are asking who picks the cocoa. And though the EU’s
Corporate Sustainability Due Diligence Directive, which was adopted last year,
requires large companies to address human rights and environmental abuses in
their supply chains, critics say the directive’s weaknesses, loopholes, and
delayed enforcement will blunt its impact.
However, all of this could still be fixed. Currently, a metric ton of cocoa
sells for about $5,000 on world markets, but Morales-de la Cruz estimates that a
fair farm-gate price would be around $7,500 per metric ton. To that end, he
advocates for binding international trade standards that enforce living incomes
and transparent pricing, modeled on the World Trade Organization’s compliance
mechanisms. “Human rights should be as binding in trade as tariffs,” he
insisted.
The solution isn’t to buy more “ethical” bars but to demand accountability and
support legislation that makes exploitation unprofitable. “We can’t shop our way
to justice,” he said.
So, as the trees in the Ivory Coast’s forests fall, the profits in Europe and
North America continue to soar. And two decades after the industry vowed to end
child labor, the cocoa supply chain remains one of the world’s most exploitative
and least accountable.
Moreover, the European Parliament’s vote on the Omnibus simplification package
last month laid bare the corporate control and moral blindness still present in
EU policymaking, all behind talk of “cutting red tape.” “Yet Europe’s media and
EU-funded NGOs stay silent, talking of competitiveness and green transitions,
while ignoring the children who harvest its cocoa, coffee and cotton,” said
Morales-de la Cruz.
“Europe cannot claim to defend human rights while profiting from exploitation.”
However, until the industry pays a fair price and governments enforce real
accountability, every bar of chocolate remains an unpaid moral debt.
LONDON — Senior British government officials on Monday defended the ill-fated
hiring of Peter Mandelson as Britain’s ambassador to Washington despite his
relationship with the late pedophile Jeffrey Epstein.
Mandelson was ousted from his role as Britain’s man in Washington earlier this
year after emails were published which showed him telling the financier he
“thinks the world” of him and was “furious” at his 2008 conviction for
soliciting sex from a minor.
In a grilling by the MPs on the Foreign Affairs Committee Monday afternoon,
Foreign Office Permanent Under-Secretary Oliver Robbins and Cabinet Secretary
Chris Wormald — Britain’s top civil servant — insisted that the government had
not been aware of this specific information at the time of the appointment.
Wormald, who is the head of the civil service, confirmed that there was “no
panel interview” when Mandelson was being considered for the role because the
post was filled through a direct ministerial appointment by Prime Minister Keir
Starmer.
A panel interview would normally be used to ask a candidate if there was
anything in their history that would bring the government into disrepute,
Wormald explained, but Mandelson did not go through this process, and therefore
the question was not directly posed.
Mandelson’s relationship with Epstein did come up during due diligence checks,
Robbins said. But Wormald said the information that ultimately saw Mandelson
ousted from his role was “not available to us at the time that the due diligence
was done.”
Quizzing the pair, Labour MP and committee member Uma Kumaran argued that it
ought to have been foreseen that a “well-publicized friendship with the world’s
most notorious pedophile might be a problem to the government,” while
Conservative MP Aphra Brandreth read out a list of publicly available
information on Mandelson, saying he “kept a notoriously close relationship” with
the pedophile and stayed in his Manhattan townhouse after Epstein had pleaded
guilty.
Brandreth asked: “At what point were questions raised about whether that was
appropriate, and why does it seem that suddenly a small additional bit of
information would tip the balance on that being, at one point deemed appropriate
to then not appropriate?”
Speaking in the House of Commons in September after the sacking, Starmer said
the Mandelson-Epstein relationship was “far different to what I’d understood to
be the position at the point of appointment,” and “had I known then what I know
now, I’d have never appointed him.”
Under questioning by the committee, Robinson confirmed that Mandelson — who has
said he feels “utterly awful about my association with Epstein twenty years ago
and the plight of his victims” — is no longer on the government payroll, but
refused to say if the former ambassador received any settlement following his
exit.
The pair said there had been a “number” of changes to the direct ministerial
appointment system since Mandelson was appointed. Wormald said these reforms
would “effectively replicate what would normally happen in a panel interview,”
introducing a higher degree of scrutiny.
The Trump administration is ramping up the pressure on the European Union to
repeal or overhaul a regulation on corporations’ greenhouse gas pollution — in
the latest example of the United States’ willingness to wield its economic might
against an international climate initiative.
It comes less than a week after the U.S. scored a surprising victory over a
proposed United Nations climate fee on shipping, in what one Trump Cabinet
member described Wednesday as an “all hands on deck” lobbying blitz.
In its newest effort, the Energy Department joined the government of Qatar in
warning the EU that it’s risking higher prices for “critical energy supplies”
unless it alters or deletes its Corporate Sustainability Due Diligence
Directive.
“It is our genuine belief, as allies and friends of the EU, that the CSDDD will
cause considerable harm to the EU and its citizens, as it will lead to higher
energy and other commodity prices, and have a chilling effect on investment and
trade,” the department and the Qataris said in an open letter Wednesday to
European heads of state and EU members.
During a press conference later in the day, European Commission spokesperson
Markus Lammert declined to discuss the European Parliament’s negotiations over
the climate directive.
The new pressure on the EU comes after months of attempts by President Donald
Trump and his appointees to blunt climate regulations at home and abroad that
threaten to impinge on U.S. “dominance” in fossil fuels. And lately he’s
succeeded in drawing some countries to the United States’ side.
‘WIN FOR THE WORLD’
On Friday, U.S. pressure succeeded in thwarting a proposal by U.N.’s
International Maritime Organization to impose the first worldwide tax on climate
pollution from shipping. The maritime body had been widely expected to adopt the
shipping fee at a meeting in London, but instead it postponed the initiative for
at least a year.
Fellow petro-giants Russia and Saudi Arabia lobbied for the pause, and EU
members Greece and Cyprus helped that effort by abstaining from the final vote.
The aftermath of that vote continued to affect European climate diplomacy this
week, temporarily upending internal EU discussions about the bloc’s negotiating
position for next month’s COP30 summit in Brazil.
U.S. Energy Secretary Chris Wright and Agriculture Secretary Brooke Rollins were
exultant Wednesday in outlining the pressure they had brought to bear to block
the maritime fee. Wright said he phoned 20 countries while Rollins handled
nations such as Antigua and Jamaica in what she characterized as an “all hands
on deck” effort. The effort also included Commerce Secretary Howard Lutnick and
Secretary of State Marco Rubio, Wright said.
Wright added that he had personally written a Truth Social message that Trump
posted the night before the vote, in which the president warned that the “United
States will NOT stand for this Global Green New Scam Tax on Shipping.” (Trump
changed “three or four words on it,” the secretary said.)
“We’re going to come back to realistic views on energy,” Wright said at an event
hosted by America First Policy Institute. “That’s a win not just for America,
that’s a win for the world.”
EUROPEAN CLIMATE PRESSURE
The EU has already said it will not scrap its corporate climate directive,
though it may dismantle a civil liability provision in a bid to simplify the
law. But revising the directive has been a challenge for Europe because
lawmakers are divided on how far to roll back sustainability reporting
obligations for companies.
The rule, which the EU put into force last year but still needs to be adopted by
member states, would require companies to identify and address adverse human
rights and environmental impacts of their actions inside and outside Europe.
Europe’s move to wean itself off Russian energy supplies since Moscow’s invasion
of Ukraine in 2022 has forced the continent to increase its reliance on U.S.
liquefied natural gas imports. But U.S. gas producers have warned that the
climate directive will increase the cost of doing business with customers in the
EU.
In the letter, DOE and Qatar said the climate directive “poses a significant
risk to the affordability and reliability of critical energy supplies for
households and businesses across Europe and an existential threat to the future
growth, competitiveness, and resilience of the EU’s industrial economy.”
The governments also advise the EU to repeal the directive or, barring that,
rewrite key provisions dealing with the penalties and civil liabilities for
companies that don’t comply with the regulation. The U.S. and Qatar also want
the Europeans to change language requiring companies to provide transition plans
for climate change mitigation.
Marianne Gros contributed to this report from Brussels.
PARIS — France’s Emmanuel Macron will arrive in Brussels for a key European
Council meeting Thursday with his reputation as the continent’s idea man long
gone and replaced by a new one: chief party pooper.
As European Union leaders gather to game-plan in the face of existential crises
ranging from combatting the rise of the far right to preventing a bad
Trump-Putin deal on Ukraine, they can no longer rely on Macron’s grandiose
ideas.
Conversations with 10 diplomats and officials from across the European Union,
all of whom were granted anonymity to candidly discuss the French president’s
political fortunes, suggest the 47-year-old centrist’s domestic troubles and
focus on his legacy have made him an obstacle to progress rather than a motor of
it.
Commission President Ursula von der Leyen’s proposed “drone wall” to protect
European skies from Russia’s increasingly invasive unmanned aerial vehicles?
Unrealistic, per Macron.
European Council President António Costa’s idea to streamline the EU accession
process by eliminating the need for unanimity?
Nah. France isn’t giving up its veto power.
Making our planet great again?
Maybe one day. But now is not the time for the due diligence directive requiring
companies to monitor their global suppliers for human rights and environmental
abuses. Or for 2040 climate targets, for that matter.
Macron in recent months has become more cautious, balking at proposals that risk
generating a backlash in France, and more prickly with regard to proposals he
doesn’t control. France has instead poured its energy into slashing red tape.
In recent weeks the French leader has been pushing for more controls on
migration and for red tape to be slashed, while lobbying for new rules to keep
children off social media and bidding to create carveouts for automakers on
green targets. Hardly the stuff of European dreams.
“This Macron has been consumed by domestic troubles,” said an EU diplomat. “He
is no longer the European champion we once knew.”
Macron in recent months has become more cautious, balking at proposals that risk
generating a backlash in France. | Ludovic Marin/AFP via Getty Images
NOT THE SAME MAN(U)
When it comes to the changes the European Union has seen in the last decade,
it’s hard to understate Macron’s influence and foresight. Speaking at the
Sorbonne University in 2017, he argued forcefully for a more muscular Europe
that wasn’t so dependent on partners overseas, either for manufactured goods or
for its own defense.
His call fell on deaf ears at the time. Today, however, the European Commission
and leaders across the bloc preach Macron’s gospel of “strategic autonomy” as
they try to diversify away from China and beef up the continent’s military
capacities in the face of Russian aggression and American military retrenchment.
Macron earned the nickname of the EU’s “think-tanker in chief,” and his blizzard
of initiatives and ideas for reforming Europe defined his early tenure as a
leader on the world stage.
Fast-forward to October 2025, though, and it’s become clear that politics and
legacy loom large in Macron’s calculus.
Just look at enlargement.
Macron was long seen as a supporter of bringing new members into the European
Union to increase the bloc’s economic and geopolitical heft. He spearheaded the
European Political Community as a sort of waiting room for wannabe EU members in
2022, and a year later pledged to bring aspiring candidate countries into the
bloc as “fast as possible.”
Little wonder, then, that Macron’s allies had trouble understanding France’s
decision to oppose Costa’s proposal to lift the veto power of Hungary’s Viktor
Orbán on parts of the accession process. A heavyweight from Macron’s Renew group
in the European Parliament said the move was “in total contradiction” with
Macron’s previous commitments.
“It’s a fundamental error,” the individual said.
According to a top Macron ally, the French president simply doesn’t have the
political capital to back some of his own ambitions, especially those that
provide fodder to Euroskeptics and Marine Le Pen’s far-right National Rally.
“It’s not the right moment, we have the far right breathing down our necks,” the
ally said.
“Any talk about Albania, Montenegro entering the Union is a gift for … Le Pen,”
he said, noting that French farmers would be the first to take to the streets to
protest the entry of agricultural giant Ukraine.
WANING INFLUENCE
Influence in Brussels has been a casualty of France’s chaos at home. Macron has
cycled through five prime ministers in less than two years and was nearly forced
to hunt for a sixth after his current pick, Sébastien Lecornu, resigned after
his first government lasted just 14 hours. The French president eventually
reappointed Lecornu and the crisis abated, at least temporarily.
Macron was long seen as a supporter of bringing new members into the European
Union to increase the bloc’s economic and geopolitical heft. | Jure Makovec/AFP
via Getty Images
While successive French governments have shared similar views on EU affairs,
their successive collapse has left France increasingly less influential in
Brussels.
“If you have a non-functioning government for one-and-a-half years, that gives
you a little bit less influence on decisions,” an EU diplomat from outside
France said.
The churn makes it harder in the room when ministers meet, the diplomat added.
It also makes it difficult for the French government to craft and circulate the
ever-important policy papers ahead of ministerial meetings that drive the agenda
and represent national priorities.
As Macron approaches the twilight of his presidency, he might yet sketch out
some grand designs for Europe, but his ability to turn dreams into reality has
been largely eclipsed.
Even if the French president somehow pulls off yet another great escape and
manages to find a way through the political mire with a government that lasts
and a budget that passes, the crushing truth for those working in the
institutions and embassies of Brussels is that Macron’s influence is seriously
weakened. And that his own grand pro-European project is finished.
Diplomats from outside France are already speaking of Macron in the past tense
and talking about his “legacy,” even though he’s not due to leave office until
2027.
“He was something special,” one told POLITICO.
Victor Goury-Laffont contributed reporting.
LUXEMBOURG — The European Commission has dropped a plan to delay its flagship
anti-deforestation law, just a month after announcing it wanted to pause it for
another year.
However, the EU executive has proposed a number of changes to the law to reduce
paperwork, Environment Commissioner Roswall announced on Tuesday during the
Environment Council meeting in Luxembourg.
Only the company that first places a product onto the market will have to submit
a due diligence statement for example, she said, with the aim of reducing
paperwork and reducing the load on the IT system.
The announcement follows a string of unexpected developments regarding the EU
Deforestation-free Regulation(EUDR), which was enacted in 2023 and is designed
to ensure products such as coffee, beef, cocoa and palm oil imported to the EU
do not come from deforested land. It was already delayed by 12 months last year.
Under the new proposal, micro- and small businesses will still be given an extra
year to comply.
The EUDR will come into force on December 30 this year as planned, however
companies that can’t comply immediately have a six-month grace period until June
30.
The European Parliament and Council of the EU must approve the Commission’s
proposal.
PARIS — Some signatories of a joint appeal by French and German business bosses
to loosen merger rules and scrap environmental laws to promote European
industrial “champions” have distanced themselves from the letter, saying they
were encouraged to write it by their national governments.
The letter to French President Emmanuel Macron and German Chancellor Friedrich
Merz, first reported by POLITICO a week ago, quickly drew rebukes from green
NGOs and competition regulators, with France’s Benoît Cœuré challenging the
notion that the bloc’s merger rules had prevented the creation of leading
European businesses.
Co-authored by TotalEnergies CEOs Patrick Pouyanné and Roland Busch of Siemens,
the letter was written “in the name of” 46 chief executives who met with the two
heads of state during a high-level, closed-door meeting between industry and the
governments in Evian, France, in early September.
But since the letter came to light, some of the French companies it claims to
speak on behalf of are backtracking.
The letter is a good summary of the discussion held at
Evian, said BPIFrance, the French public investment bank. But its CEO, Nicolas
Dufourcq, doesn’t consider himself bound by it, he told POLITICO in a written
statement.
Dufourcq said the letter was “not a big effort.” Although he was in Evian,
he did not see it before it was published, and therefore doesn’t consider that
he signed it.
The letter complained that the current European competition rules “often hinder
the formation of European champions” and urged that, by the end of this year,
the mandate of the European Commission’s Competition Directorate be widened to
consider strategic mergers in the context of the global market. It also demands
that EU leaders get rid of EU rules on supply chain transparency.
‘A LITTLE STRONG’
A representative from a second French company among the signatories said that
the origin of the letter was “a little nebulous” and that they were not informed
of the wording ahead of time. Granted anonymity to discuss the sensitive matter,
they said that they did not disagree with the letter, but “the wording is a
little strong.”
Even TotalEnergies, one of the two top signatories, has sought to clarify how
the letter came about. Shortly after POLITICO reported on it, the company
reached out directly to provide “more context.”
“The CEO of Siemens and TotalEnergies were the co-chairmen of the Evian
Franco-German meeting gathering 46 CEOs,” a spokesperson said. “They welcomed
Chancellor Merz and President Macron during a special session, and they were
encouraged by both leaders to express their priorities as CEOs to develop
Europe’s competitiveness.”
The letter, he added, “summarizes the 5 top priorities and call for actions in
the short term which resulted from the debates between the CEOs.”
Siemens declined to comment in response to TotalEnergies’ assertions.
NO GERMAN COMPLAINTS
No criticism has emerged from German companies, which appeared to be aligned
with the message. “The letter emerged from the group discussion, so [Deutsche
Börse Group CEO] Stephan Leithner, who was among the participants, was involved,
and we support the contents of the letter,” a spokesperson for Deutsche Börse
told POLITICO.
A spokesperson for Bosch — whose CEO is also listed among the participants
— called the initiative one “spearheaded by companies from Europe’s two largest
economies.” They added that a central pillar of the demands is “aimed at
securing and strengthening the competitiveness of European industry.”
Neither the Elysée nor the German representation in Brussels responded to
requests for comment.
Francesca Micheletti and Marianne Gros reported from Brussels, Alexandre
Léchenet reported from Paris. Jordyn Dahl contributed reporting from Brussels,
and Tom Schmidtgen from Berlin.
LONDON — Prime Minister Keir Starmer insisted Monday he would have “never
appointed” Peter Mandelson as Britain’s ambassador to the U.S. if he had been
aware of the full scale of Mandelson’s connections to disgraced financier
Jeffrey Epstein.
In his latest show of contrition, Starmer expressed regret for handing the
Labour grandee such a plum job. Mandelson was sacked last week after leaked
emails exposed the extent of his friendship with Epstein, even after the latter
was charged with sex offenses.
“Peter Mandelson, before he was appointed, went through a due diligence
process,” said Starmer to broadcasters. “That’s the propriety and ethics team.
He went through a process, and therefore I knew of his association with
Epstein.”
The PM added: “But had I known then what I know now, I’d have never appointed
him, because what emerged last week were emails, Bloomberg emails, which showed
that the nature and extent of the relationship that Peter Mandelson had with
Epstein was far different to what I had understood to be the position when I
appointed him.”
Leaked emails to Bloomberg showed Mandelson wrote to Epstein “I think the world
of you and I feel hopeless and furious about what has happened,” the day before
Epstein begin serving time for soliciting sex from a minor in June 2008.
Mandelson said he should “fight for early release” and told Epstein “your
friends stay with you and love you.”
The PM said this “went and cut across the whole approach that I’ve taken on
violence against women and girls for many years,” and Mandelson’s responses to
questions from government officials were not “at all satisfying.”
Just 24 hours before Mandelson’s sacking, Starmer said at prime minister’s
questions that “full due process was followed” during Mandelson’s selection last
year and he had confidence in him.
CHIATURA, Georgia — Giorgi Neparidze, a middle-aged man from near the town of
Chiatura in western Georgia, still has marks on his lips from where he sewed his
mouth shut during a hunger strike last year.
He says Georgian Manganese, a mining company with close links to the government,
has wrought environmental devastation around his home and has ignored the rights
of its workers. He is seeking compensation.
Europe, which imports Georgia’s manganese, is partly to blame for the black
rivers and collapsing houses in Chiatura district, Neparidze says. The former
miner-turned-environmental and civil rights activist claims that in one village,
Shukruti, toxic dust from the pits is making people unwell. Filthy black water,
laced with heavy metals, periodically spurts out of pumps there. Houses are
collapsing as the tunnels underneath them cave in.
Manganese, a black metal traditionally used to reinforce steel, is crucial for
Europe’s green energy transition as it is used in both wind turbines and
electric car batteries. The metal is also vital for military gear like armor and
guns. In 2022, the European Union bought 20,000 metric tons of manganese alloys
from Georgia — almost 3 percent of its total supply. A year later the bloc added
manganese to its list of critical minerals.
But Chiaturans say their lives are being ruined so that Western Europeans can
breathe cleaner air. “We are sacrificed so that others can have better lives,”
Neparidze says. “There are only 40,000 people in Chiatura. They might feel ill
or live in bad conditions but they are sacrificed so that millions of Europeans
can have a cleaner environment.” Neparidze says cancer rates in the region are
unusually high. Doctors at a hospital in Chiatura back up the observation, but
no official study has linked the illnesses to the mines.
An aerial view of Chiatura with the polluted Kvirila River running through the
town | Olivia Acland
Hope that things will improve appears dim. European companies often don’t know
where their manganese is sourced from. As ANEV, Italy’s wind energy association,
confirms: “There is no specific obligation to trace all metals used in steel
production.”
Last year the EU enacted a law that was meant to change that. The Corporate
Sustainability Due Diligence Directive obliges companies to run closer checks on
their supply chains and clamp down on any human rights violations, poor working
conditions and environmental damage.
But barely a year after it took effect, the European Commission proposed a major
weakening of the law in a move to reduce red tape for the bloc’s sluggish
industry. EU member countries, motivated by this deregulation agenda, are now
pushing for even deeper cuts, while French President Emmanuel Macron and German
Chancellor Friedrich Merz want to get rid of the law altogether.
Meanwhile, Europe’s appetite for mined raw materials like manganese, lithium,
rare earths, copper and nickel is expected to skyrocket to meet the needs of the
clean energy transition and rearmament. Many of these resources are in poorly
regulated and often politically repressive jurisdictions, from the Democratic
Republic of Congo to Indonesia and Georgia. Weakening the EU supply chain law
will have consequences for communities like Neparidze’s.
“Only an empty shell of the directive remains,” says Anna Cavazzini, a member of
the European Parliament’s Green Party, adding that the legislature caved to
pressure from businesses seeking to reduce their costs. “Now is not the time to
abandon the defense of human rights and give corporations a free hand,” she
says.
A resident of Chiatura standing on a collapsed house following a mining-related
landslide in Itkhvisi village. | Olivia Acland
As Georgia’s government pivots toward Russia and stifles dissent, life is
becoming increasingly dangerous for activists in Chiatura.
On April 29, four activists including Neparidze were arrested for allegedly
assaulting a mine executive. A statement put out by Chiatura Management Company,
the firm in charge of staffing Georgian Manganese’s underground operations, says
that Tengiz Koberidze, manager of the Shukruti mine, was “verbally abused and
pelted with stones.”
Supporters call it a staged provocation in which Koberidze tried to incite
violence, and say it’s part of a broader campaign to silence resistance. If
convicted they face up to six years behind bars. Koberidze did not respond to
requests for comment.
Chiatura residents are protesting over two overlapping issues. On one side,
miners are demanding safer working conditions underground, where tunnel
collapses have long been a risk, along with higher wages and paid sick leave.
When the mine was temporarily shut in October 2024, they were promised 60
percent of their salaries, but many say those payments never materialized.
Workers are also raising concerns about mining pollution in the region.
“The company doesn’t raise wages, doesn’t improve safety, and continues to
destroy the natural environment. Its profits come not just from extracting
resources, but from exploiting both workers and the land,” says one miner, David
Chinchaladze.
Georgian Manganese did not respond to interview requests or written questions.
Officials at Georgia’s Ministry of Mines and the government’s Environment
Protection and Natural Resources Department did not respond to requests for
comment.
A collapsing building in Shukruti. | Olivia Acland.
The second group of protesters comes from the village of Shukruti, which sits
directly above the mining tunnels. Their homes are cracking and sinking into the
ground. In 2020, Georgian Manganese pledged to pay between 700,000 and 1 million
Georgian lari ($252,000 to $360,000) annually in damages — a sum that was meant
to be distributed among residents.
But while the company insists the money has been paid, locals — backed by
watchdog NGO Social Justice — say otherwise. According to them, fewer than 5
percent of Shukruti’s residents have received any compensation.
Their protest has intensified in the last year, with workers now blocking the
roads and Shukruti residents barring entry to the mines. But the risks are
intensifying too.
Since suspending EU accession talks last year amid deteriorating relations with
the bloc, Georgia’s ruling party has shuttered independent media, arrested
protestors and amplified propaganda. The country’s democracy is “backsliding,”
says Irakli Kavtaradze, head of the foreign department of the largest opposition
political party, United National Movement. Their tactics “sound like they come
from a playbook that is written in the Kremlin,” he adds.
‘KREMLIN PLAYBOOK’
In the capital Tbilisi, around 200 kilometers east of Chiatura, protesters have
taken to the streets every night since April 2, 2024 when the government
unveiled a Kremlin-style “foreign agents” law aimed at muzzling civil society.
Many demonstrators wear sunglasses, scarfs and masks to shield their identities
from street cameras, wary of state retaliation.
A scene from the 336th day of protests in Tbilisi in April 2025. | Olivia
Acland.
Their protests swelled in October last year after the government announced it
would suspend talks to join the EU. For Georgians, the stakes are high: Russia
already occupies 20 percent of the country after its 2008 invasion, and people
fear that a more profound drift from the EU could open the door to further
aggression.
When POLITICO visited in April, a crowd strode down Rustaveli Avenue, the city’s
main artery. Some carried EU flags while others passed around a loudspeaker,
taking it in turns to voice defiant chants. “Fire to the oligarchy!” one young
woman yelled, the crowd echoing her call. “Power lies in unity with the EU!”
another shouted.
They also called out support for protestors in Chiatura, whose fight has become
something of a cause célèbre across the country: “Solidarity to Chiatura!
Natural resources belong to the people!”
The fight in Chiatura is a microcosm of the country’s broader struggle: The
activists are not just taking on a mining company but a corporate giant backed
by oligarchs and the ruling elites.
Georgian Manganese’s parent company, Georgian American Alloys, is registered in
Luxembourg and counts Ukrainian oligarch Ihor Kolomoisky as a shareholder. He is
in custody in Kyiv over allegations that he hired a gang to kill a lawyer who
threatened his business interests in 2003. Kolomoisky has also been sanctioned
by the United States for his alleged involvement in siphoning billions out of
PrivatBank, Ukraine’s largest bank.
Giorgi Kapanadze — a businessman closely connected with the ruling Georgian
Dream party of Bidzina Ivanishvili — is listed as general manager of Georgian
American Alloys.
Until recently, Kapanadze owned Rustavi TV, a channel notorious for airing
pro-government propaganda. The European Parliament has called on the EU to hit
Kapanadze with sanctions, accusing him of propping up the country’s repressive
regime.
Kolomoisky and Kapanadze did not respond to POLITICO’s requests for comment.
The government swooped in to help Georgian Manganese in 2016 when a Georgian
court fined it $82 million for environmental destruction in the region. The
state placed it under “special management” and wrote off the fine. A new
government-appointed manager was tasked, on paper, with cleaning up the mess. He
was supposed to oversee a cleanup of the rivers that flow past the mines, among
other promises.
Manganese mining pit in Chiatura region, Georgia. | Olivia Acland
But POLITICO’s own tests based on four samples taken in April 2025 from the
Kvirila River, which runs through Chiatura, as well as its tributary, the
Bogiristiskali, which were examined in a U.K. licensed laboratory, show the
manganese levels in both rivers are over 10 times the legal limit. Iron levels
are also higher than legally permitted. Locals use the polluted water to
irrigate their crops. Fishermen are also pulling in increasingly empty nets as
the heavy metals kill off aquatic life, according to local testimonies. The
water from the Kvirila River flows out into the Black Sea, home to endangered
dolphins, sturgeons, turtles and sharks.
A 2022 analysis by the Georgian NGO Green Policy found even worse results, with
manganese in the Kvirila River averaging 42 times the legal limit. The group
also detected excessive levels of iron and lead.
Chronic manganese exposure can lead to irreversible neurological damage — a
Parkinson’s-like condition known as manganism — as well as liver, kidney and
reproductive harm. Lead and iron are linked to organ failure, cancer and
cardiovascular disease.
On Georgian Manganese’s website, the company concedes that “pollution of the
Kvirila River” is one of the region’s “ecological challenges,” attributing it to
runoff from manganese processing. It claims to have installed German-standard
purification filters and claims that “neither polluted nor purified water”
currently enters the river.
Protesters like Neparidze aren’t convinced. They claim the filtration system is
turned on only when inspectors arrive and that for the rest of the time,
untreated wastewater is dumped straight into the rivers.
BLOCKING EXPORTS
Their protests having reaped few results, Chiaturans are taking increasingly
extreme measures to make their voices heard.
Gocha Kupatadze, a retired 67-year-old miner, spends his nights in a tarpaulin
shelter beside an underground mine, where he complains that rats crawl over him.
“This black gold became the black plague for us,” he says. “We have no choice
but to protest.”
Kupatadze’s job is to ensure that manganese does not leave the mine. Alongside
other protesters he has padlocked the gate to the generator that powers the
mine’s ventilation system, making it impossible for anyone to work there.
Kupatadze says he is only resorting to such drastic measures because conditions
in his village, Shukruti, have become unlivable. His family home, built in 1958,
is now crumbling, with cracks in the walls as the ground beneath it collapses
from years of mining. The vines that once sustained his family’s wine-making
traditions have long since withered and died.
Gocha Kupatadze, an activist sleeping in a tarpaulin tent outside a mine. |
Olivia Acland.
For over a year, protesters across the region have intermittently blocked mine
entrances as well as main roads, determined to stop the valuable ore from
leaving Chiatura. In some ways it has worked: Seven months ago, Chiatura
Management Company, the firm in charge of staffing Georgian Manganese’s
underground operations, announced it would pause production.
“Due to the financial crisis that arose from the radical protests by the people
of Shukruti village, the production process in Chiatura has been completely
halted,” it read.
Yet to the people of Chiatura, this feels more like a punishment than a
triumph.
Manganese has been extracted from the area since 1879 and many residents rely on
the mines for their livelihoods. The region bears all the hallmarks of a mining
town that thrived during the Soviet Union when conditions in the mines were much
better, according to residents. Today, rusted cable cars sway above concrete
buildings that house washing stations and aging machinery.
While locals had sought compensation for the damage to their homes, they now
just find themselves out of work.
Soviet-era buildings and mining infrastructure around Chiatura. | Olivia
Acland.
Making matters worse, Georgian Manganese, licensed to mine 16,430 hectares until
2046, is now sourcing much of its ore from open pits instead of underground
mines. These are more dangerous to the communities around them: Machines rip
open the hillsides to expose shallow craters, while families living next to the
pits say toxic dust drifts off them into their gardens and houses.
MORE PITS
The village of Zodi is perched on a plateau surrounded by gently undulating
hills, 10 kilometers from Chiatura. Many of its residents rely on farming, and
cows roam across its open fields. “It is a beautiful village with a unique
microclimate which is great for wine-making,” says Kote Abdushelishvili, a
36-year-old filmmaker from Zodi.
Mining officials say the village sits on manganese reserves. In 2023,
caterpillar trucks rolled into Zodi and began ripping up the earth. Villagers,
including Abdushelishvili, chased them out. “We stopped them,” he says, “We said
if you want to go on, you will have to kill us first.”
A padlocked gate to the mine’s ventilation system. | Olivia Acland
Abdushelishvili later went to Georgian Manganese’s Chiatura office to demand a
meeting with the state-appointed special manager. When he was turned away, he
shouted up to the window: “You can attack us, you can kill us, we will not
stop.”
Two days later, as Abdushelishvili strolled through a quiet neighborhood in
Tbilisi, masked men jumped out of a car, slammed him to the pavement and beat
him up.
Despite the fierce resistance in Chiatura, Georgian Manganese continues to send
its metal to European markets. In the first two months of 2025, the EU imported
6,000 metric tons of manganese from Georgia. With the bloc facing mounting
pressures — from the climate crisis to new defense demands — its hunger for
manganese is set to grow.
As the EU weakens its corporate accountability demands and Georgia drifts
further into authoritarianism, the voices of Chiatura’s people are growing even
fainter.
“We are not asking for something unreasonable,” says activist Tengiz Gvelesiani,
who was recently detained in Chiatura along with Neparidze, “We are asking for
healthy lives, a good working environment and fresh air.”
Georgian Manganese did not respond to requests for comment.
This article was developed with the support of Journalismfund Europe.