France’s EU influence at stake

Good morning from Paris.

Prime Minister Michel Barnier’s government collapsed late on Wednesday after a no-confidence vote garnered the necessary 288-seat absolute majority, with 331 votes in favour.

Euractiv's Laurent Geslin writes that this development opens a Pandora’s Box in French politics, and raises the question of whether French President Emmanuel Macron will resign.

Faced with a pressing budgetary deadlock, a new prime minister will need to be appointed quickly, and several options for forming a coalition are on the table.

But the equation to solve is tough, as far-left La France insoumise continues to push for Lucie Castets's appointment as prime minister.

Either way, the domestic crisis has compounded France's already ailing influence in EU affairs.

“We are not exactly credible in Brussels when we cannot handle our own finances,” a French diplomat, speaking under the condition of anonymity, told Euractiv’s Théo Bourgery-Gonse.

France’s introversion may also prevent Paris from taking the lead in key EU matters, such as continuing support for Ukraine or presenting a united front in light of Donald Trump’s return to the White House.

As foreign ministers of Europe's Organisation for Security and Cooperation in Europe (OSCE) meet in Malta on Thursday, Russia's Sergey Lavrov is set to make his first appearance on EU soil since 2021, Alexandra Brzozowski reports.

The host, Valletta, said it invited Lavrov to “keep some channels of communication open”, a request also made by Bratislava on Wednesday at a NATO meeting.

Meanwhile, in NATO, members are rethinking their hybrid attack strategy against the backdrop of an increased number of sabotage alerts and cyber-attacks across the military alliance. However, it’s not an easy task, writes Aurélie Pugnet.

In the economic field, ECB chief Christine Lagarde defended her ‘Buy American’ proposal for dealing with Donald Trump on Wednesday, arguing that her call to purchase more US gas and military equipment is consistent with boosting the EU’s domestic energy production and defence industry.

BERLIN

The German government has promoted the EU migration reform as a solution to irregular migration, but its plans to speed up implementation appear almost certain to fail, Euractiv has learned. Read more.

Germany’s Scholz urges opposition to agree on economic relief ahead of snap elections. Germany should adopt some key laws to relieve its struggling economy ahead of February’s snap elections, Chancellor Olaf Scholz said in the Bundestag on Wednesday, urging the conservative opposition to vote accordingly. Read more.

ROME

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MADRID

Investigation into irregular party funding widened against SALF's Pérez. The Spanish judiciary has widened its ongoing investigation into Alvise Pérez, leader of the far-right anti-establishment party SALF, over his party’s alleged illegal financing during the latest EU election campaign. Read more.

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LISBON

Portuguese mayors urge Spain to press ahead with high-speed rail works. Officials from northern Portugal, Oporto and the Galician regional government signed a manifesto on Wednesday calling on the Spanish government to speed up work on a high-speed rail link between Oporto and Vigo by 2030. Read more.

NORDICS & BALTICS

Russian warship fires on German helicopter as tensions in Baltic Sea rise. A Russian warship fired signal shots at a German army helicopter on a reconnaissance mission over the Baltic Sea amid rising tensions in the region on Wednesday. Read more.

BRATISLAVA

Slovakia does not believe there will be a military resolution to the Ukraine-Russia war, reiterating its plans to send only humanitarian and non-lethal support and calling for peace solutions through communication with Russia. Read more.
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WARSAW

Polish MEP Jarubas likely to become head of new health committee. EU lawmakers from the European People's Party (EPP) will lobby for the European Parliament's new standing committee on health, which requires a new chair to be the same as the one appointed for the health subcommittee headed by Polish MEP Adam Jarubas in July. Read more.

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PRAGUE

Czechs see Russian 'games' after Moscow halts oil supply. Oil deliveries from Russia to Czechia via the Druzhba pipeline have stopped without explanation, raising suspicions as Czech officials remain calm. Read more.

BUCHAREST

Sunday's presidential vote seen as referendum on Romania's European future. Romania could elect its first far-right president on Sunday in a key vote for the EU and NATO member bordering Ukraine. Read more.

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