Good morning from Brussels.

European Union industry ministers will meet today to consider simplifying EU business rules after re-elected European Commission President von der Leyen pledged to prioritise competitiveness during her second term.

After months of negotiations, the European Parliament has unsurprisingly confirmed the new European Commission von der Leyen 2.0, albeit with the narrowest majority on record for this vote with just 51% (370 votes in favour to 282 against).

In her address to the European Parliament, von der Leyen vowed that economic competitiveness will “frame [policymakers'] work for the rest of the term”.

She also pledged the "first major initiative" of her new Commission would be a "competitiveness compass" based on the Draghi report's "three pillars"' of innovation, decarbonisation, and security.

As those words still echo in the hemicycle of the European Parliament in Strasbourg, the ministers from the 27 EU countries will meet in Brussels today to discuss “better regulation", the impact of EU laws on smaller and medium-sized companies (SMEs), and the policy priorities of the upcoming Polish presidency of the Council.

Jonathan Packroff has the story. 

EU business leaders’ confidence in Europe's economic outlook sharply dropped in the second half of this year amid fears that global trade tensions could further damage Europe’s anaemic economy.

CEOs overwhelmingly agreed that accelerating economic and political fragmentation poses a major geopolitical threat to their businesses, with 84% regarding it as one of the top three dangers and 55% deeming it the main risk.

Thomas Moller-Nielsen analysed the data.

In defence, EU countries have proposed loosening eligibility criteria for the use of EU funds in defence production and purchasing, according to the latest state of negotiations, with EU ambassadors meeting to discuss the planned European Defence Industry Programme (EDIP)  on Wednesday.

However, on Wednesday night, EU ambassadors stopped talks on the proposed compromise defining what the EU defence programme could fund - including US-made products. 

Instead, they decided to reconvene next week after experts found better solutions for funding foreign equipment manufactured in the EU under license, limiting restrictions on use, and sharing foreign components.

PARIS

Le Pen’s lawyer slams ‘affront to democratic process’ as embezzlement trial ends. On the last day of the EU funds embezzlement trial of Marine Le Pen and 24 other Rassemblement National members, Le Pen's lawyer strongly criticised the prosecution’s demands and asked for an acquittal. Read more.

France believes Netanyahu has immunity from ICC arrest warrant. France said on Wednesday it believed Israeli Prime Minister Benjamin Netanyahu had immunity to actions by the International Criminal Court which is seeking his arrest for alleged war crimes in Gaza, given Israel has not signed up to the court statutes. Read more.

///

BERN

Swiss-EU talks 'well advanced': Bern. Swiss-EU negotiations towards a deal to recalibrate and "stabilise" their ties have made progress, with both sides aiming to conclude the talks this year, Bern said Wednesday after a highly anticipated meeting. Read more.

ROME

Italian opposition says government falling apart after split in European Parliament. Opposition parties in Italy accuse the country’s ruling coalition of being deeply divided after two key votes on Wednesday, one in the European Parliament and one in Italy. Read more.

///

MADRID

Spain's Sánchez, Ribera blame Partido Popular for siding with EU far-right. Spain’s Partido Popular (EPP) has sidelined the interests of the EU and teamed up with the far-right, Spanish Prime Minister Pedro Sánchez and new Spanish Commissioner Teresa Ribera said after the centre-right formation rejected Ursula von der Leyen's proposed commissioners. Read more.

STOCKHOLM

The prime ministers of the Baltic and Nordic countries and Poland agreed to increase aid to Ukraine at a regional summit in Sweden on Wednesday, in a clear show of unity ahead of Donald Trump's comeback to the White House. Read more.

Preparedness: EU must eliminate ‘weak links’, urges Swedish civil defence minister. Amid a growing threat of war and natural catastrophes, the EU must finally become crisis-proof, by leveraging additional spending and following the Niinistö Report, the Swedish minister for civil defence, Carl-Oskar Bohlin, told Euractiv. Read more.

BRATISLAVA

In a quick turn of events, Slovak Prime Minister Robert Fico (Smer-SD/NI) revealed his phone call with US President-elect Donald Trump on Ukraine and wasted no time announcing that he had also accepted Russian President Vladimir Putin’s invitation to Moscow. Read more.

///

WARSAW  

Brussels approves Poland's defence-focused deficit reduction plan. Poland has won the European Commission’s approval for its strategy to reduce its budget deficit, a plan that includes increased defence spending. Read more.

SOFIA

Bulgarian court issues EU arrest warrant for ex-state bank chief. A Bulgarian court has issued a European arrest warrant for Stoyan Mavrodiev, the former managing director of the state-owned Bulgarian Development Bank (BDB), who is wanted in connection with the embezzlement of €75 million. Read more.

///

BUCHAREST

Romanian NGOs urge Commission to investigate TikTok amid presidential elections. Several Romanian NGOs have urged the European Commission and the national telecoms regulator ANCOM to examine how major online platforms complied with the provisions of the EU's Digital Services Act (DSA) during the first round of the Romanian presidential elections. Read more.

Protests in Romania over far-right candidate's shock poll lead. Around 2,000 people protested in Romania's capital of Bucharest on Wednesday after the surprise win of a far-right candidate in the first round of the country's presidential elections. Read more.

///

TIRANA

Albanian opposition leader Berisha released from house arrest. Opposition leader Sali Berisha was released from house arrest following a ruling from an Albanian court on Wednesday, while he awaits trial on corruption charges, just as popular protests against his detainment intensified. Read more.

• EU: Competitiveness Council in internal market and industry composition convenes to discuss European competitiveness’ future, regulation in connection with Draghi report, and more;
• General Affairs Council in it cohesion composition expected to focus on funding management, demographic challenges, and more.

***

[Edited by Sarantis Michalopoulos, Daniel Eck, Alice Taylor-Braçe]