Good morning from Berlin.

After a majority of German Bundestag lawmakers voted against Chancellor Olaf Scholz in a scheduled vote of confidence, Germany will hold early elections on 23 February.

Although the revival of a grand coalition between the centre-left Social Democrats and centre-right Christian Democrats after the elections is likely, their draft manifestos, as seen by Euractiv’s Nick Alipour, show divergent approaches in several fields. 

As the country faces the second year of recession, the focus is on the economy and restoring growth, with voters choosing between public spending and deregulation.

Divergence in approaches is also visible in the green transition and migration. 

They agree on defence, as they both aim to reach NATO’s 2% spending target but shy away from issuing joint EU debt to spend on setting up a European ‘defence union’. They also agree on close coordination with Weimar Triangle allies France and Poland, and both show cautiousness in handling Ukraine.

Slovakia and Hungary blocked sanctions against Georgian police officials at a meeting on Monday with the Slovak foreign affairs minister accusing the EU Parliament of “interference” in Georgia’s election results. 

Another proposal to suspend visa-free travel for Georgian diplomats will move forward as it needs a qualified majority. The EU’s new top diplomat Kaja Kallas commented, “It's my first Hungarian veto, but I can guarantee it's not the last”. 

In the economic field, ECB chief Christine Lagarde warned on Monday that increasing US protectionism could inflict “new dents” on EU consumer confidence, further hampering the eurozone’s weak growth rate. 

“If the United States – our largest export market – takes a protectionist turn, growth in the euro area is likely to take a hit”, she said.

In tech, the Commission sent official warnings on Monday against five EU member states for failing to comply with the Digital Services Act. 

In addition, a high-level group of national and EU experts suggested using CAP funds to solve the wine crisis.

BERLIN | STOCKHOLM

Germany should split its electricity price zone and allow for EU funds to go towards nuclear power plants, Sweden's Energy Minister Ebba Busch said on Monday, adding fuel to a long-standing policy clash with Berlin. Read more.

PARIS

Pharmaceutical leaders convene in Paris to unveil vaccine strategies. The main vaccine manufacturers will present their vaccine strategy to the Technical Committee for Vaccinations (CTV) at the offices of the French national health authority HAS in Paris on Tuesday. Read more.

MADRID

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ROME

Last-minute budget changes, €7,300 minister pay rise, causes uproar in Italy. Last-minute amendments to the budget law, including one giving unelected ministers a monthly pay rise of over €7,300 each, have caused a stir in parliament. Read more.

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LISBON

Portugal in trouble with Brussels over residents' free museum entry. The European Commission launched infringement proceedings against Portugal on Monday over "discriminatory rules" allowing only residents free access to museums, monuments and palaces 52 days a year. Read more.

WARSAW 

The MFE-MediaForEurope group, owned by Silvio Berlusconi's family, has secured €3.4 billion in funding for potential acquisitions across Europe, with rumours of a possible sale of top private broadcaster TVN in Poland. Read more.

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PRAGUE

Czechia wants to delay ETS 2 until at least 2028. Czechia will seek to delay the EU’s new carbon pricing scheme for road and heating fuels known as ETS2 until at least 2028, Prime Minister Petr Fiala said on Monday. Read more.

SOFIA

Borissov starts government talks with EPP partners, pro-Russian and populist parties. Former Bulgarian prime minister Boyko Borissov and his party GERB (EPP) announced on Monday that they would begin talks in Sofia to form a government to pull the country out of the long-running political crisis. Read more.

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BUCHAREST

Bucharest mayor announces presidential candidacy. The mayor of Bucharest, Nicușor Dan, announced on Monday night that he would run as an independent candidate in Romania's presidential elections, scheduled for spring 2025. Read more.

• EU: Environment Council convenes to discuss plastic pellet losses, end-of-life vehicles, 2040 climate target, and more;
• General Affairs Council expected to continue preparations for next European Council meeting;
• Third Accession Conference with Albania held in Brussels to open negotiations on Cluster 6: External relations;
• Commission President Ursula von der Leyen meets with President of Turkiye Recep Tayyip Erdoğan, in Ankara;
• Parliament plenary debates toppling of the Syrian regime; Votes on Ombudsman election, date of application for Deforestation Regulation, and more;
• Parliament President Roberta Metsola presides over the Sakharov Prize for Freedom of Thought Award Ceremony;

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