Europe’s sleep of the just?

Good morning from Brussels.

As the world goes through a multi-level systemic shift, with Donald Trump trying to impose his political allies in Europe and Russia escalating in the east while simultaneously courting China, the Old Continent seems to be sleeping like a baby.

Euractiv’s Nicholas Wallace reports that several member states – including the heavyweights – lack functioning governments.

From the centre’s fragmentation in France and Germany to Austria’s barbarians standing at Europe’s gate, political fragility threatens to prevent Europeans from making choices that will define their “place in the world for the next 50 years”, as Ursula von der Leyen told EU lawmakers late last year.

Even Poland, which currently holds the EU Presidency and says Europe should feel “lucky” about this, faces mounting pressure from the right-wing opposition PiS, which on Monday criticised the government's decision to hold the informal EU leaders' summit in Brussels instead of Warsaw.

A planned meeting in Brussels between Bratislava and Kyiv on Monday evening to ease tensions over gas was cancelled after the Ukrainian delegation said they could not attend, Euractiv’s Nikolaus Kurmayer reported.

Energy supply is also causing headaches in Moldova, which hopes to use EU funds to keep its lights on after the shutdown of Russian gas supplies to its rogue region of Transnistria triggered price spikes and blackouts.

Meanwhile, Ukrainian business representatives have expressed their concern over delayed EU-Ukraine negotiations on a new framework for agricultural trade set to take effect in June 2025.

Lastly, the EU executive's chief spokeswoman said on Monday that von der Leyen is “keeping the business running” from her home in Hanover despite suffering from “severe” pneumonia. According to the plan, first Vice President Teresa Ribera will take over if the president is incapacitated.

COPENHAGEN

Donald Trump Jr travelled to Greenland on Monday amid his father’s renewed interest in “ownership” of the island and days after the leader of the autonomous territory of Denmark called for independence.
A source told Euractiv that a meeting between Trump Jr and the Greenlandic premier was possible. Read more.

Danish collective bargaining starts amid economic turbulence. Denmark’s critical labour negotiations officially began on Monday and are set to impact some 16% of the population amid demands for higher pay and fears of economic uncertainties. Read more.

BERLIN

The interview between far-right AfD leader Alice Weidel and Elon Musk set to be live-streamed on X is not illegal under EU content moderation rules, but it may impact the ongoing investigation into Musk's X, a Commission spokesperson said on Monday. Read more.
German inflation climbs even higher than forecast. Germany’s inflation rate rose by more than expected in December, preliminary data released on Monday showed, deepening the country’s economic crisis ahead of snap federal elections next month. Read more.

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PARIS

France unveils plans to boost domestic medicines production. On Monday, Catherine Vautrin, the French minister for health, and Marc Ferracci, the minister for industry, presented seven new projects to strengthen the production of essential medicines in France. Read more.

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VIENNA

Austria’s far-right set to form a government for the first time. Austrian President Alexander Van der Bellen has tasked the far-right Freedom Party (FPÖ) leader Herbert Kickl with leading the formation of a new government. Read more.

ROME

Italian opposition parties have challenged Prime Minister Giorgia Meloni’s alleged €1.5 billion security deal with Elon Musk’s SpaceX, demanding clarification in parliament. Read more.

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MADRID

Sánchez government deeply divided over shorter working week. A plan to reduce the working week by 1.5 hours while keeping wages the same is set to divide the Spanish government, bolstered by opposition from big employer organisations. Read more.

WARSAW

Bickering over Poland's holding of the six-month EU Council Presidency continues as the opposition PiS (ECR) party criticised the government's decision to hold the informal EU leaders' summit in Brussels instead of Warsaw. Read more.
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PRAGUE

Czechia reaches 2% GDP defence spending target for first time in 20 years. The Czech government has officially met its pledge to spend 2% of GDP on defence in line with NATO's minimum target, the Defence Ministry announced on Monday. Read more.

SOFIA

Bulgarian president slams Borissov for prolonging political crisis. Bulgarian President Rumen Radev has slammed the GERB party of long-serving former prime minister Boyko Borissov for suspending negotiations to form a permanent government in a country that has held seven general elections in the past four years. Read more.

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