BRUSSELS — The European Union is under pressure to keep Ukrainian troops fully
online after Elon Musk’s Starlink was restricted amid volatile U.S. support for
Kyiv.
“It was a very dangerous and unpleasant surprise,” Ukrainian President Volodymyr
Zelenskyy told reporters after EU leaders met in Brussels, referring to Starlink
speed limitations experienced by military troops in recent days. “We were using
Starlink to intercept jet-powered Shaheds [combat drones] that are attacking our
civilian infrastructure and killing our families … When the speed limits were
lowered, we became incapable of shooting [them] down.”
Ukraine has long relied critically on Musk’s satellite constellation for wartime
efforts. Reuters reported Friday that the order to slow Ukraine’s military-grade
Starshield service came from the White House, days after Washington pressed Kyiv
to halt strikes on Russian refineries, amid soaring energy prices and ahead of
November’s midterm elections.
“It is unacceptable for Ukraine’s defense — and therefore Europe’s security — to
depend on the goodwill of a single American billionaire or on Donald Trump’s
decisions,” French centrist Member of the European Parliament Christophe Grudler
told POLITICO.
Ahead of Thursday’s high-level meeting, European lawmakers had been calling on
the EU executive to fast-track Kyiv’s access to satellite capabilities already
pooled under the bloc’s Govsatcom program — which gives participating
governments secure communications capabilities.
Negotiations between the EU executive and Ukraine over this access have been
ongoing since March, with no breakthrough. Norway and Iceland secured such an
agreement earlier this year.
“What I don’t understand is why the European Commission and the Member States
have not done everything possible to quickly reach an agreement that would allow
Ukraine to benefit from it,” added Christophe Grudler, who wrote to EU leaders.
He also called on them to speed up work on IRIS² — the EU’s in-house, planned
satellite network and full-fledged match to Starlink, which is only expected to
come online in 2030.
Commission spokesperson Thomas Regnier confirmed in a statement that it is
“currently in talks with Ukraine to fully associate” the country with the EU’s
Govsatcom program. “The war in Ukraine shows that our security also depends on
space. And the EU has been doing quite a lot. We are ready to support Ukraine
where we can support Ukraine,” he added.
Calls to crack down on dependence on foreign providers and boost alternatives to
Starlink also come at a time when legislators are negotiating a series of laws
that could tame Musk’s ambitions in Europe.
“Ukraine’s dependence on Starlink highlights the vulnerability of European
defence systems that rely on U.S. technology, Another reminder that Europe must
reduce its dangerous technological dependencies — ASAP,” center-right Finnish
lawmaker Aura Salla said on social media.
Policymakers across Europe have been joining forces to curb Starlink’s dominance
in low-Earth orbit, where satellites fly close to Earth to deliver faster
connections.
“As legislators, we must ensure that European operators are well positioned in
the market and limit the dominance of foreign players,” German center-left
lawmaker Matthias Ecke said. In Brussels, lawmakers, including Ecke, are backing
European telcos gunning for prized satellite frequencies, currently licensed to
U.S. operators until next year and eyed by Starlink.
Meanwhile, Zelenskyy said Ukraine was working bilaterally with EU countries to
secure more capabilities, citing France. He also expressed hopes that Starlink
restrictions could be lifted. “My partners told me there were signals from the
White House that they would return these capabilities.”
SpaceX — Starlink’s parent company — didn’t respond to POLITICO’s request for
comment.
Tag - Mobility
BRUSSELS — France and Germany said Friday they had struck a deal to favor
European-made cars under a landmark EU industry bill in exchange for weakening a
2035 vehicle emissions target, ending months of wrangling between the bloc’s two
biggest economies.
Under the agreement, Germany would accept stricter “Made in Europe” — or local
content — requirements for the automotive industry in the proposed Industrial
Accelerator Act, a longstanding French demand, while France would back Berlin’s
push to relax the EU’s plan to phase out new combustion-engine cars.
The EU’s current target is for companies to reduce emissions from new vehicles
by 100% from 2021 levels by 2035, with the possibility to “earn” 10% of
emissions leeway through initiatives like offsets and investments.
France and Germany now want to soften the 2035 target to 90% but without having
to offer investments in alternative fuels to compensate the remaining 10%, as
proposed by the European Commission.
“This balanced approach will enable the European Union to pursue its climate
objectives while strengthening the technological sovereignty, industrial base
and international competitiveness of its automotive industry,” the two countries
said in a joint statement.
The agreement, first reported by POLITICO in July, was due to have been
announced Thursday, during a meeting of EU leaders in Brussels. But it was held
up at the last minute by disagreements within Germany’s governing coalition.
“We hope that this Franco-German dynamic can swiftly lead to an agreement with
our partners, for our jobs and our industry,” French President Emmanuel Macron
said in a post on social media.
An Elysée official on Friday made clear that, under the Franco-German deal, the
scope of Made in Europe for automotive can be extended to the U.K. and
Switzerland under certain conditions. — addressing a key concern of Prime
Minister Andy Burnham’s government ahead of a Nov. 20 U.K.-EU summit in
Brussels.
The agreement was reached after the German Social Democratic Party, the junior
partner in Chancellor Friedrich Merz’s coalition government, dropped its
opposition.
“This is a modern realignment of German industrial policy that places
significantly greater emphasis on preserving jobs and production sites,” said
German Environment Minister Carsten Schneider, who is from the SPD.
“The clear expectation for German companies is that they will use these new
opportunities to make investments and guarantee jobs here in Germany,” he added.
CORRECTION: This article was updated on Oct. 16 after an earlier version
misrepresented the figures in the Franco-German proposal on the softening of
2035 targets.
BRUSSELS — The European Parliament’s top trade lawmakers failed on Wednesday to
reach a common position on the EU-U.S. trade deal, in a move that risks fueling
Washington’s impatience against the EU’s slow pace in finally implementing its
side of a bargain struck last summer.
Negotiations will continue until next week, two people who attended a meeting of
the lawmakers told POLITICO. One said that committee vote was penciled in for
Feb. 24 and a final plenary vote for March. Both were granted anonymity to
discuss the closed-door talks.
The meeting failed to clear remaining hurdles regarding the Parliament’s
position on the removal of tariffs on U.S. industrial goods and lobsters — a
precondition for Washington to reduce its own tariffs on European cars.
Lawmakers from the international trade committee disagreed on the length of a
sunset clause which would limit the proposals’ application to 18 to 36 months,
as well as whether the EU should withdraw any tariff concessions until a
solution is found between Brussels and Washington on the 50 percent tariff the
Trump administration has put on steel derivatives.
With the EU still processing the shock of Trump’s threats against the
territorial sovereignty of Greenland and the Kingdom of Denmark, the liberal
Renew group and the Socialists & Democrats are pushing to Trump-proof the deal
by inserting suspension clauses into enabling legislation in case the U.S.
president turns hostile again.
The center-right European People’s Party has pushed to sign off the deal
following calls from EU leaders to unfreeze the implementation of the deal.
Failure to reach an agreement on Wednesday throws into disarray the timeline for
parliamentary approval, and further delays the start of negotiations with EU
capitals and the European Commission.
German industrial giant Bosch on Friday confirmed plans to cut 20,000 jobs after
profits nearly halved last year, underlining the mounting strain on Germany’s
once-dominant manufacturing sector and increasing the pressure on politicians in
Berlin to find a solution.
Official data released Friday also showed Germany’s unemployment rate,
unadjusted for seasonal factors, rising to 6.6 percent — the highest level in
twelve years. The number of unemployed people surpassed three million in
January.
“Economic reality is also reflected in our results,” Bosch CEO Stefan Hartung
said, describing 2025 as “a difficult and, in some cases, painful year” for the
company, which is a leading supplier of parts for cars.
The move lands amid a deepening slump in the country’s automotive industry, long
the backbone of German manufacturing. The sector has been shedding jobs rapidly:
A 2025 study by EY found that more than 50,000 automotive positions were cut in
Germany last year alone.
Germany’s automotive downturn has become a wider political test for the
government in Berlin and Europe more widely. Once the economy’s crown jewel, the
industry is now being challenged by current policy on electric vehicles, energy
costs and aggressive competition from Chinese manufacturers.
As suppliers weaken, the risk is shifting from lower profits to a lasting loss
of competitiveness. With layoffs rising and investment decisions being delayed,
Chancellor Friedrich Merz’s government is coming under growing pressure from
workers, unions and industry leaders to rethink Germany’s industrial strategy —
as doubts spread domestically and across Europe about the country’s ability to
remain an economic powerhouse.
BRUSSELS — Senior European Commission officials hardly ever get the sack. On
Thursday, one did.
That was the twist in a tale that up until that moment had been classically
Brussels. The protagonist: A little-known bureaucrat who had spent two decades
working in the EU civil service. The allegations: Taking expensive gifts that
aroused suspicions over conflicts of interest.
“After nearly 22 years at the Commission, I am obviously disappointed,” Henrik
Hololei told POLITICO only hours after he was informed of the decision. “But I’m
happy that this long process has finally come to a conclusion.”
While commissioners, the EU’s 27 political appointees, have been known to fall
on their swords, there are few precedents for the dismissal of such a
high-ranking civil servant, two senior officials familiar with the inner
workings of the Commission said. Neither of the officials, who have several
decades of EU experience between them, could remember any previous examples.
Like other people interviewed for this article, they were granted anonymity so
they could speak freely about Hololei and his downfall.
The “long process” Hololei described totaled three years. It was in 2023 that
POLITICO first revealed that the Estonian, who was then the EU’s top transport
official, had accepted free flights from Qatar at the same time as negotiating a
transport deal with the Gulf state that was beneficial to the country’s
airline.
It couldn’t have come at a more inauspicious time. The initial reports emerged
just a few months after the so-called Qatargate corruption scandal in the
European Parliament, named after one of the countries linked to allegedly
offering cash and gifts in return for favors. Hololei was not involved in that
affair, but it added fuel to the argument from politicians and transparency
campaigners that the EU needed to clean up its act.
He resigned from his job within a month but didn’t leave the Commission. Soon
after, he became special adviser in its international partnership division.
The following year, French newspaper Libération reported additional allegations,
including that he exchanged confidential details of the Qatar aviation deal in
return for gifts for himself and others, including stays in a five-star hotel in
Doha. This led to a probe by the EU’s Anti-Fraud Office (OLAF), which in turn
led to the Commission’s investigation.
On Thursday, the Commission announced that a senior official had breached the EU
institution’s rules. These concerned conflicts of interest, gift acceptance and
disclosures, according to three officials with knowledge of the investigation.
They later confirmed the person in question was Hololei.
‘A LEGEND’
By his own admission, Hololei is a colorful character. Belying the clichéd image
of a faceless bureaucrat, he’s known to do business over a drink or two. Michael
O’Leary, the outspoken CEO of Irish airline Ryanair, who shared the occasional
tipple with him, told POLITICO in 2023 that Hololei was “terrific.”
His colleagues are just as glowing. On Thursday, a lower-ranking official who
worked with him at the Commission described him as a “legend,” while a former
transport lobbyist recalled seeing selfies of him holding up beers with industry
representatives.
“The feeling is they’re making an example of him,” said a person who works in
the aviation field and met him during the course of his work. “He was
undoubtedly passionate and determined to make EU transport better. He was a guy
who just enjoyed the position he had. He was a people person.”
Hololei talks to Czech Transport Minister Martin Kupka at the European Transport
Ministerial Meeting in Prague in 2022. Colleagues and industry figures might
mourn the departure of a gregarious, engaging figure, | Martin Divisek/EPA
What ultimately led to his dismissal was an investigation by IDOC, the
Commission’s internal disciplinary body, the result of which is not public.
IDOC’s conclusions were shared with a disciplinary committee made up of staffers
who have equal or superior rank to Hololei — a relatively small pool given his
seniority. Following a series of interviews with Hololei, the committee sent its
recommendation to the College of Commissioners for a final vote. That decision
was taken in the past few days.
‘LONG OVERDUE’
While colleagues and those in the industry might mourn the departure of a
gregarious, engaging figure, European propriety campaigners are less
sympathetic.
“It’s almost three years to the day since revelations of Mr. Hololei’s
impropriety broke,” said Shari Hinds, senior policy officer at Transparency
International, an accountability-focused NGO. “Though long overdue, it is
encouraging that the European Commission finally appears to be dealing out
consequences proportionate to the gravity of these ethics violations.”
Hololei, 55, who had taken a pay cut when he moved to the role of hors classe
adviser from DG MOVE, as the transport department is known, will receive his
pension from the Commission when he reaches retirement age.
He has three months to lodge a complaint against the decision with the
Commission.
“Good to see there is an actual reaction,” said Daniel Freund, a Green member of
the European Parliament, who campaigns on issues of accountability in the EU
institutions. “So far, so good.”
‘MUCH MISSED’
A decade in Estonian politics — where he largely focused on European affairs —
preceded his time at the Commission, starting in the cabinet of then-Estonian
Commissioner Siim Kallas, the father of current EU foreign policy chief, Kaja
Kallas, before moving into transport.
It was in that role he became a “very much-loved boss,” according to the person
who worked with him. “Even now he is still very much missed in DG MOVE. He was a
good person to be around.”
In the comments Hololei gave to POLITICO on Thursday afternoon, he was as
gracious as so often described by those who know him. But in the end, the
personality traits that endeared him to so many he worked with, in the
Commission and in industry, weren’t enough to save his job.
BRUSSELS — One of the European Commission’s senior officials, Henrik Hololei,
breached its rules, an internal investigation found, two officials told
POLITICO.
Hololei, an Estonian, was subject to an investigation over allegedly violating
rules on conflicts of interest, transparency, gift acceptance and document
disclosure, according to documents seen by POLITICO last year.
Hololei was previously a senior EU transport official in the Commission and
became Hors Classe Adviser at the Directorate-General for International
Partnerships. He was notified on March 21, 2025 that he faced an internal
disciplinary procedure by the Commission, according to the documents seen by
POLITICO.
“The European Commission has concluded a disciplinary procedure with regard to a
senior official,” Commission Executive Vice President Henna Virkkunen told
reporters on Thursday, without naming the official.
Two Commission officials with knowledge of the investigation confirmed to
POLITICO that Hololei was the official in question. They were granted anonymity
to speak openly about a confidential matter.
“This procedure established that the staff member concerned breached the
applicable rules,” Virkkunen said. The college of commissioners has “decided on
appropriate and commensurate measures to apply to this senior official.”
Hololei did not immediately respond to a request for comment.
This article will be updated.
MADRID — A train collision that killed 45 people in southern Spain this month is
piling even more political pressure on the struggling, Socialist-led government
of Pedro Sánchez.
Sánchez is already weaker than at any point during his eight years in power
thanks to a string of corruption and sexual harassment scandals that have rocked
his party over the past year. Sensing its moment to open another line of attack,
the opposition is now seizing on the rail tragedy of Jan. 18 to accuse the
government of neglecting vital public services.
“It’s a general symptom of the fact that essential public services that depend
on the government are not working,” said Alberto Núñez Feijóo, leader of the
conservative opposition People’s Party (PP). “It’s proof of their collapse. The
state of the railway track reflects the state of the country.”
The far-right Vox party also slammed the accident as “criminal incompetence” on
the part of the government.
Political analysts did not expect the political tussles over the rail disaster
would be an immediate breaking point for Sánchez’s government, but noted the
subject could harm the Socialists’ chances in regional elections in Aragón in
the northeast of Spain in February, and in Castilla y León in the northwest in
March.
RAILWAY FEARS
Trains are a major component of Spain’s logistical and economic infrastructure.
Its high-speed network is the second-largest in the world after China, and
carried some 40 million passengers over 2024, an increase of 22 percent compared
with the previous year. In all, Spain’s rail network carried 549 million
passengers in 2024.
This month’s crash, near the town of Adamuz, was the country’s worst since 2013.
A high-speed train derailed along a straight section of track and collided with
an oncoming train. Investigators are focusing on a crack in the welding between
an old section of track and a newer one as the potential cause of the
derailment, although their probe continues.
Crucially, the accident is being linked to broader fragility within the rail
system, for which Sánchez’s government has to take some responsibility.
Only two days after the Adamuz smash, a trainee driver died on a regional train
in Catalonia after a wall collapsed onto the line near Barcelona. Several days
of chaos ensued in the northeastern region as drivers demanded safety guarantees
before returning to work and technical faults caused further disruption.
Safety precautions have led to temporary speed reductions on a number of
high-speed routes across the country, including between Madrid and Barcelona
after a crack in the track was discovered. “The challenge is not just to ensure
reliable infrastructure, but also to restore Spaniards’ confidence” in the rail
system, said El País national daily.
POLITICAL IMPACT
The sheer number of Sánchez’s allies that have been afflicted by scandals has
sparked repeated speculation that his coalition, which no longer commands a
stable parliamentary majority, might be about to collapse.
In November, the attorney general, Álvaro García Ortiz, was removed from office
after being found guilty of leaking confidential information in a court case
involving the boyfriend of a prominent right-wing politician. A number of
Sánchez’s current and former allies are facing corruption probes, and some
senior Socialists have been the target of sexual impropriety allegations.
In November, the attorney general, Álvaro García Ortiz, was removed from office.
| Fernando Sanchez/Europa Press via Getty Images
Compounding all this, the rail crisis has now handed critics a different kind of
ammunition against the government.
“There is now a line of attack against the government which is not directly
linked to either its alliances with [Catalan and Basque] pro-independence
parties or corruption,” said Pablo Simón, a political scientist at Carlos III
University.
“It’s the idea that the government is not able to adequately manage public
services under its remit.”
The opposition zeroed in on that same weakness last year after an energy
blackout hit the country for several hours in April.
Much of the latest criticism has been aimed at Transport Minister Óscar Puente,
who has been the government’s frontman on the Adamuz crash. A divisive figure,
nicknamed “Sánchez’s Rottweiler,” he is a natural lightning rod for opposition
ire.
In the immediate aftermath of the accident, Puente insisted it hadn’t been
caused by poor maintenance, obsolete infrastructure or a lack of investment. But
the opposition is demanding his resignation, claiming he misled the public by
suggesting that the whole line on which the accident occurred had been replaced
recently, which was not the case.
Government spokesperson Elma Saiz said Puente “has been where he has to be and
is still there, giving explanations in search of the truth and always with
empathy and accompanying the relatives of victims.”
REGIONAL TENSIONS
Meanwhile, the rail chaos in Catalonia has revived a longstanding grievance of
nationalists there: that the Spanish state has chronically underinvested in
their regional network. The Catalan Republican Left (ERC), a parliamentary ally
of the government, has also called for Puente to step down.
The tensions of recent days bear some similarity to the fallout from the flash
floods that killed 237 people in eastern Spain in October 2024. The PP-led local
government’s apparent mishandling of that tragedy, under the leadership of
Carlos Mazón, then president of Valencia, is believed to have eroded support for
the conservatives in the region and hurt them on the national level.
Simón said it will only become apparent how damaging the railway problems are
for Sánchez when more details of the Adamuz crash investigation emerge. He added
he did not expect the prime minister to resign or call an election over it.
But with an election looming on Feb. 8 in Aragón, before Castilla y León the
following month, the rail system has been thrust onto the campaign trail.
Simón said the crisis “could have a negative impact on an electoral level” for
Sánchez’s Socialists.
“Above all because it’s clear [the central government] is responsible, and over
the last three years there have been frequent problems with trains in Spain, and
that affects a lot of people,” he said.
BRUSSELS — The European Parliament’s three largest political groups are
discussing new safeguards against the unpredictability of President Donald Trump
in a bid to break a deadlock over approving the EU–U.S. trade deal, according to
two lawmakers and three officials familiar with the talks.
Center-left and liberal lawmakers are asking for a clause to be included in
enabling legislation that is now before the house, under which the deal would be
voided if Trump restarts his threats against the territorial sovereignty of
Greenland and the Kingdom of Denmark.
“We will need to have safeguards in place with a clear reference to territorial
sovereignty directed at Trump’s unpredictability,” said an official of the
Socialists & Democrats familiar with the discussions, granted anonymity to speak
about confidential deliberations.
There are already suspension clauses in the text, but lawmakers want to include
definitions — including threats to territorial sovereignty — to strengthen them.
Apart from the sovereignty clause, the definitions should specify that new
tariff threats would trigger an automatic suspension of the agreement, said an
official from the liberal Renew Europe group.
That could pave the way for a vote on the Parliament’s position to be scheduled
for the next meeting of its International Trade Committee on Feb. 23-24. For the
EU to implement its side of the bargain, the Parliament and Council of the EU,
representing the bloc’s 27 members, would still need to reach a final
compromise.
“This could be perhaps a date to vote,” Bernd Lange, the chair of the committee,
told POLITICO, referring to the Feb. 23-24 meeting. Lange added that outstanding
issues — including whether to schedule a vote on the deal at all — will be
discussed at a meeting of lead negotiators scheduled for Wednesday next week.
“The question of safeguard[s] is an important one and will be solved in the
proper way,” he added.
The Parliament froze ratification of the agreement, reached by Trump and
European Commission President Ursula von der Leyen last July, after the U.S.
president threatened tariffs on European allies backing Greenland, a
self-governing Danish protectorate.
The center-right European People’s Party has pushed to sign off on the deal
following calls from EU countries to unblock the implementation after Trump
walked back threats to seize Greenland. But S&D, Renew and the Greens have so
far balked, arguing further details are needed on the “framework” deal agreed by
Trump with NATO chief Mark Rutte.
An EPP official with knowledge of the discussions said the center-right group
was open to stricter suspension safeguards in case Trump turns hostile again.
“If he threatens [again] then the deal is off, but not the rest of our economic
cooperation,” the official said.
One of the S&D’s demands had been to officially ask the Commission to launch an
investigation into whether Washington is coercing Europe to give up Greenland,
which could lead to the launch of the EU’s Anti-Coercion Instrument. This trade
“bazooka” is the bloc’s most powerful trade retaliatory weapon — but the EPP
strongly opposes deploying it.
“Anti-coercion is a serious and nuclear weapon that should be last discussed
with strategic allies,” the EPP’s top trade lawmaker Željana Zovko told
POLITICO, adding that the tool is “not serious diplomacy, only for drama
queens.”
Lawmakers are also discussing adding a sunset clause that would require the
Commission to review the agreement after a set period, as well as excluding its
steel provisions from ratification until the U.S. withdraws its 50 percent
tariffs on European goods containing steel. MEPs say this violates the 15
percent all-inclusive rate agreed last summer.
NEW DELHI — The European Union and India locked arms against U.S. President
Donald Trump’s tariff offensive and China’s flood of cheaper goods to conclude
talks on a landmark trade pact on Tuesday.
Under the deal, India will lower tariffs on European cars and wine, while the EU
signaled it would assist Indian companies with decarbonization and negotiate
duty-free quotas for Indian steel.
“Two giants who choose partnership, in a true win-win fashion. A strong message
that cooperation is the best answer to global challenges,” said European
Commission President Ursula von der Leyen, standing next to Indian Prime
Minister Narendra Modi.
The announcement rounded off a year of intensive negotiations in which the EU
sought to lock down a trade deal with the world’s most populous nation. Von der
Leyen and European Council President António Costa were guests of honor at
India’s exuberant Republic Day celebrations on Monday.
Ties between India and the U.S. reached a low point last August, when Trump
imposed a 50 percent tariff on goods from the South Asian nation over its
purchases of Russian oil.
“Both know that they need each other like never before and in this fractured
world where trusted partnerships are very, very hard to come by,” said Garima
Mohan, who leads the German Marshall Fund’s work on India.
Under the deal, India will gradually slash tariffs on European cars, reducing
tariffs from 110 to 10 percent on 250,000 cars every year.
A range of agricultural goods will also see their tariffs drop, coming as a
reassurance for the European Parliament and the EU’s farmers who have been
heavily protesting in recent months over fears that they would be undercut by
cheap farm produce.
Tariffs on wine will be reduced from to 20 and 30 percent from 150 percent now,
depending on value. European olive oil will also enter duty free into India,
instead of facing a 45 percent tariff.
STEEL DEAL
The stickiest issues related to steel and the EU’s carbon border tax: New Delhi,
a major steel exporter, wanted to make sure that its metals wouldn’t be impacted
by an upcoming 50 percent EU tariff on steel, and the carbon levy that has just
entered force.
In response to those concerns, the EU plans to give India a significant share of
the 18.3 million metric tons of steel allowed to enter the bloc duty free —
Brussels will negotiate this with its partners as is required by global trade
rules.
“There will of course be a difference in how you treat this negotiation on
application of steel measures between FTA and non-FTA partners. Therefore I
think it was strategic from both sides that we have the agreement now and that
India will be treated as an FTA partner,” EU trade chief Maroš Šefčovič told
POLITICO.
On the carbon border tax, a new levy on carbon emissions that has irked
countries such as the United States and Brazil, Brussels will “help Indian
operators to have a smooth introduction of CBAM with all the technical
assistance and all the additional advice we can provide,” Šefčovič added,
stressing that the Commission would treat all its partners equally.
For India, the deal represents an opportunity to boost its exports of
pharmaceuticals, textiles and chemicals.
This story has been updated.
BRUSSELS — Powerful political allies helped automakers force the EU to water
down climate laws for cars — and now the aviation sector is borrowing those
tactics.
Their big target is getting the EU to dilute its mandate forcing airlines to use
increasing amounts of cleaner jet fuels, alternatives to kerosene that are also
much more expensive and harder to source.
Aviation is emerging as the next crucial stress test for the EU’s climate
agenda, as key leaders push to do whatever it takes to help struggling European
businesses. With industry and allied governments pressing for relief from costly
green rules, the fight will show how far Brussels is willing to go — and what it
is willing to give up — in pursuit of its climate goals.
“I will make a bet today that what happened to the car regulation will happen to
the SAF [Sustainable Aviation Fuels] regulation in Europe,” French energy giant
TotalEnergies CEO Patrick Pouyanné predicted at the World Economic Forum in
Davos earlier this month.
Carmakers provide a model on how to get the EU to backtrack. The bloc mandated
that no CO2-emitting cars could be sold from 2035, essentially killing the
combustion engine and replacing it with batteries (possibly with a minor role
for hydrogen).
But many carmakers — allied with countries like Germany, Italy and automaking
nations in Central Europe — pushed back, arguing that the 2035 mandate would
destroy the car sector just as it is battling U.S. President Donald Trump’s
tariffs, sluggish demand and a rising threat from Chinese competitors.
“I will make a bet today that what happened to the car regulation will happen to
the SAF [Sustainable Aviation Fuels] regulation in Europe,” Patrick Pouyanné
said. | Ludovic Marin/ AFP via Getty Images
In the end, the European Commission gave way and watered down the 2035 mandate,
which will now only aim to cut CO2 emissions by 90 percent.
AVIATION DEMANDS
The aviation sector has a similar list of issues with the EU. It is taking aim
at a host of other climate policies, such as including aviation in the bloc’s
cap-and-trade Emissions Trading System and intervening on non-CO2 impacts of
airplanes like contrails — the ice clouds produced by airplanes that have an
effect on global warming.
Brussels introduced several regulations over the last 15 years to address the
growing climate impact of air transport, which accounts for about 3 percent of
global CO2 emissions. Those policies include the obligation to use sustainable
aviation fuels, to put a price on carbon emissions and to take action on non-CO2
emissions.
Each of these green initiatives is now under attack.
The ReFuelEU regulation requires all airlines to use SAF for at least 2 percent
of their fuel mix starting this year. That mandate rises to 6 percent from 2030,
20 percent from 2035 and 70 percent by 2050.
“Today, all airline companies are fighting even the 6 percent … which is easy to
reach to be honest,” Pouyanné said, but then warned, “20 percent five years
after makes zero sense.”
He is echoed by CEOs like Ryanair’s combative Michael O’Leary, who called the
SAF mandate “nonsense.”
“It is all gradually dying a death, which is what it deserves to do,” O’Leary
said last year. “We have just about met our 2 percent mandate. There is no
possibility of meeting 6 percent by 2030; 10 percent, not a hope in hell. We’re
not going to get to net zero by 2050.”
Brussels-based airline lobbies are not calling for the SAF mandate to be killed,
rather they are demanding a book-and-claim system. Under such a scheme, airlines
could claim carbon credits for a certain amount of SAF, even if they don’t use
it in their own aircraft. They would buy it at an airport where it’s available
and then let other airlines use it.
That would make it easier for airlines to meet the SAF mandate even if the fuel
is not easily available. However, so far the Commission is opposed.
LOBBYING BATTLE
The car coalition only worked because industry allied with countries, and there
are signs of that happening with aviation.
The sector’s lobbying effort to slash the EU carbon pricing could find an ally
in the new Italo-German team-up to promote competitiveness.
The German government last year announced a plan to cut national aviation taxes
— with the call made during the COP30 global climate conference, something
that angered the German Greens.
Italian Prime Minister Giorgia Meloni and German Federal Chancellor Friedrich
Merz attend the Italy-Germany Intergovernmental Summit at Villa Doria Pamphilj.
| Vincenzo Nuzzolese/LightRocket via Getty Images
Italian Prime Minister Giorgia Meloni said Friday that she and German Chancellor
Friedrich Merz wanted to start “a decisive change of pace … in terms of the
competitiveness of our businesses.”
“A certain ideological vision of the green transition has ended up bringing our
industries to their knees, creating new dangerous strategic dependencies for
Europe without, however, having any real impact on the global protection of the
environment and nature,” she added.
Her far-right coalition ally, Italian Transport Minister Matteo Salvini, has
called the ETS and taxes on maritime transport and air transport “economic
suicide” that “must be dismantled piece by piece.”
COMMISSION SAYS NO
As with the 2035 policy for cars, the European Commission is strongly defending
its policy against those attacks.
Apostolos Tzitzikostas, the transport commissioner, stressed the EU’s “firm
commitment” to stick with aviation decarbonization policies.
“Investment decisions and construction must start by 2027, or we will miss the
2030 targets. It is as simple as that,” the commissioner said in November when
announcing the bloc’s new plans to boost investment into sustainable aviation
and maritime fuels.
Climate campaigners fought hard against the car sector’s efforts to gut 2035,
and now they’re gearing up for another battle over aviation targets.
“The airlines’ whining comes as no surprise — yet it is disappointing to see
airlines come after such a fundamental piece of EU legislation,” said Marte van
der Graaf, aviation policy officer at green NGO Transport & Environment.
She was incensed about efforts to dodge the high prices set by the EU’s ETS in
favor of the U.N.’s cheaper CORSIA emissions reduction scheme.
Airline lobbyA4E said its members paid €2.3 billion for ETS permits last
year. “By 2030, [the ETS cost] should rise up to €5 billion because the free
allowances are phased out,” said Monika Rybakowska, the lobby’s policy
director.
A recent study by the think tank InfluenceMap found that airlines are working to
increase their impact on policymakers by aligning their positions on ETS.
T&E also took aim at a recent position paper by A4E that asked the EU to
postpone measures to curb non-CO2 pollution — such as nitrogen oxides and soot
particles that, along with water vapor, contribute to contrails.
The A4E paper said that “the scientific foundation for regulating non-CO2
effects remains insufficient” and “introducing financial liability risks
misdirecting resources.”
This is “an outdated excuse,” responded T&E, noting that the climate impact of
contrails has been known for over 20 years.