Czech Prime Minister Andrej Babiš has rejected calls to reconsider his government’s direction after a crushing Senate election defeat, as the opposition strengthens its position and fresh disputes over Russia, European funding and domestic reforms add to his difficulties.

Czech Prime Minister Andrej Babiš has ruled out changing his government’s policies despite a humiliating defeat in the Senate elections, in which his ANO movement failed to win a single seat. The result has strengthened the parliamentary opposition and intensified questions over the political direction of his coalition, less than a year after it took office.

Speaking after a cabinet meeting on Monday, 19 October, Babiš insisted that the election results would have no effect on the functioning of his government or its alliance with the far-right Freedom and Direct Democracy (SPD) party and the Motorists movement. His administration would continue implementing its programme, including controversial changes to public broadcasting and proposed legislation regulating the financing of non-governmental organisations.

The prime minister’s refusal to reconsider his government’s agenda has drawn criticism from Senate president Miloš Vystrčil, who accused Babiš of transferring responsibility for the defeat to regional party organisations rather than accepting personal accountability.

A defeat with consequences beyond the Senate

The elections, held on 9–10 and 16–17 October, concerned 27 of the Senate’s 81 seats. ANO entered 13 candidates in the second-round contests, but every one of them lost. The party’s representation consequently fell to 14 senators.

Babiš called the outcome “catastrophic”, acknowledging a result that was particularly damaging given ANO’s success in the 2024 Senate elections and its subsequent victory in the October 2025 parliamentary contest.

The opposition Mayors and Independents movement (STAN) emerged as the strongest performer, with ten successful candidates or endorsed contenders. The centre-right Civic Democratic Party (ODS) secured seven seats, maintaining its position at the head of the Senate’s largest parliamentary group alongside TOP 09.

In an interview published on 20 October, Vystrčil said the results demonstrated that Babiš’s personal electoral appeal did not translate into successful Senate campaigns. He also criticised the prime minister’s response to the defeat, describing his attempts to blame regional organisations as an evasion of leadership responsibility.

The vote followed municipal elections in which ANO lost ground in several important urban centres, while SPD also suffered substantial losses.

Opposition leadership becomes the next political contest

STAN leader Vít Rakušan has interpreted the result as evidence that his movement can become ANO’s principal national challenger.

The party’s Senate performance followed a strong showing in municipal elections, including victory in Prague, where its leading candidate Petr Hlaváček is seeking to form the next city administration.

The movement’s growing appeal is supported by recent opinion polling. A Median electoral model published on 17 October, based on September interviews, placed ANO at 29.5 per cent, STAN at 17 per cent and ODS at 12.5 per cent.

Yet STAN’s ambitions face competition from within the opposition. ODS retains substantial institutional influence through the Senate, while the Christian Democrats’ new leader, Jan Grolich, is increasingly discussed as another possible contender for national opposition leadership.

The opposition’s unity is also less straightforward at municipal level. In Ostrava, ANO has negotiated a local governing agreement with Starostové pro Ostravu and the Ostravak movement, illustrating the flexibility of local political alliances.

Russia policy brings fresh controversy

The electoral setback coincides with renewed controversy over the Czech government’s approach to Russia.

On 19 October, Foreign Minister Petr Macinka, leader of the Motorists, defended his decision not to support a Finnish initiative calling for tighter European Union restrictions on entry visas for Russian citizens.

The proposal, promoted by Finnish Foreign Minister Elina Valtonen, sought stronger EU-wide restrictions on non-essential travel by Russian nationals, including tourists, against a background of growing concerns over Russian sabotage and hybrid operations.

According to details of the diplomatic disagreement, senior Czech foreign ministry officials had recommended supporting the initiative.

Macinka argued that Prague already maintained extensive national restrictions and had previously endorsed a comparable Estonian proposal. He questioned the effectiveness of the Finnish initiative, which attracted limited support from other EU governments.

The disagreement comes as Czech security policy remains under scrutiny. On Tuesday, 20 October, the National Security Council discussed the country’s security outlook, military development plans and changes to NATO’s air and missile defence implementation arrangements.

The issue exposes a continuing area of contention between Babiš’s coalition and opposition parties favouring closer coordination with Ukraine’s European supporters.

Brussels presents another challenge

Meanwhile, Babiš faces unresolved questions concerning his former business conglomerate Agrofert and access to European Union funding.

The European Commission has maintained restrictions on certain EU reimbursements after concluding that the trust arrangement involving Babiš’s business interests does not sufficiently address the potential conflict of interest.

The measures affect particular cohesion-fund expenditure and rural development reimbursements, rather than all EU agricultural payments. Babiš has maintained that the arrangements governing his business interests comply with the law.

The dispute carries particular significance as Prague participates in negotiations over the EU’s next long-term budget, covering 2028–2034.

At the European Council summit on 15–16 October, Babiš argued for protecting national allocations of EU funds, revisiting aspects of the emissions trading system and addressing high industrial energy costs. These negotiations will continue while the Commission’s concerns about his business arrangements remain unresolved.

Government retains power despite opposition gains

The Senate defeat does not threaten Babiš’s parliamentary majority. The lower chamber can override most Senate objections to ordinary legislation, and the governing parties continue to command sufficient support to pursue their programme.

The September Median model projected that ANO, SPD and the Motorists would retain 107 seats in the 200-member Chamber of Deputies, only slightly below their current combined strength.

Nevertheless, the elections have given the opposition a stronger platform for challenging the government over public broadcasting, European relations, defence policy and constitutional legislation, where the Senate possesses more substantial powers.

The immediate political contest is therefore not over the survival of Babiš’s government, but over whether STAN can convert its regional and Senate successes into a credible national alternative before the next parliamentary elections. For Babiš, whose party remains the largest in the country, the more pressing difficulty is its inability to defeat opposition candidates when elections are decided beyond ANO’s established electoral base.

The European Commission is checking whether laws Ukraine’s parliament passed last week earn it a €3.7 billion ($4.3 billion) EU payment, spokesperson Balázs Ujvári told reporters in Brussels on 19 October. He also said Ukraine’s 2027 funding gap stands at about €70 billion, and that the EU “cannot do this all alone.” How Ukraine pays for Russia’s war next year now depends on reforms in Kyiv and on money from Europe and beyond.

Russia keeps striking Ukraine’s power grid and cities, and Kyiv already faces a hole in next year’s war budget before any new military spending. Foreign money keeps salaries, pensions, and repairs flowing while Ukraine spends its own revenue on defense. So each delayed payment is felt at home while Russia hits the energy system again.

Brussels reads Kyiv’s new laws before paying

The payment is the second tranche of the EU’s macro-financial assistance to Ukraine, and each one depends on reforms, Ujvári said at the Commission’s midday briefing.

“We saw that last week some important laws were adopted in the Rada, and we are in the process of analyzing these laws and we will formulate our assessment thereafter,” he said.

On its third attempt, parliament passed a law on 15 October ending the VAT exemption for foreign parcels worth up to €150 from 1 July 2027, and making online marketplaces collect the tax. The Commission had warned the law was one of 12 conditions for the tranche. Fewer than 1% of the 75 million parcels Ukrainians receive each year were taxed, and lawmakers had rejected the measure twice despite IMF pressure.

About €30 billion is in the pipeline for Ukraine this year, mostly under the EU’s €90 billion support loan, if reforms continue, Ujvári said.

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EU announced funding shortfall for Ukraine in 2027

A €70 billion gap for 2027

Current pledges leave a gap of about €70 billion for 2027, Ujvári said, even counting the €45 billion ($52 billion) the EU has set aside for next year and some partners’ commitments.

“We cannot do this all alone. Therefore, our partners in general must step up,” he said. “They have to come forward with pledges, and they have to deliver on those commitments.”

On 16 October, Ukrainian President Volodymyr Zelenskyy asked EU leaders for at least €70 billion more for 2027. They tasked the Commission with a proposal but set no deadline. Asked whether it would revisit using frozen Russian assets, Ujvári said it was “a little bit early” to discuss options in that detail. New EU borrowing has also grown costlier: 10-year rates rose from 3.2% to just above 4% in six months, he said.

The €90 billion loan was designed on the assumption that the war would end in 2026. Slovak Prime Minister Robert Fico said Slovakia and Hungary would opt out of new aid but would not block others.

The European Commission has selected 77 industrial and technology projects across 23 European Economic Area countries to receive €3.4 billion in funding, as Brussels attempts to strengthen the continent’s manufacturing capacity and reduce dependence on imported energy and critical materials.

The funding, announced on Monday, 19 October, will come from the EU Innovation Fund, which uses revenues generated by the Emissions Trading System to support investment in technologies intended to reduce greenhouse gas emissions.

The selected projects include manufacturing facilities, renewable energy installations, advanced energy storage, critical raw materials processing and industrial carbon management. For the first time, the programme also includes a small modular nuclear reactor project and a direct air carbon capture and storage initiative.

The announcement comes amid growing concern over Europe’s industrial competitiveness, particularly as manufacturers face high energy costs, increasing competition from China and difficulties securing investment for major industrial projects.

Funding for industrial production

According to the Commission’s announcement, the 77 selected projects span energy-intensive industries, clean technology manufacturing, alternative fuels, transport and several other sectors.

Six projects concern critical raw materials, an area in which the EU has been seeking to reduce its exposure to foreign suppliers.

These investments are intended to strengthen European supply chains for technologies including batteries, renewable energy equipment and permanent magnets, which are essential components in electric motors and other industrial applications.

The funding follows renewed political pressure to expand the processing and production of strategically important materials inside Europe.

As EU Today recently reported, the European Parliament has been pressing for stronger measures to reduce dependence on China for critical raw materials used by European manufacturers.

China occupies a dominant position in several international processing and refining markets, leaving European companies exposed to supply interruptions and trade restrictions.

The Commission is seeking to support alternative production capacity through financial assistance, industrial regulation and measures designed to attract private capital.

However, the selection of projects for EU funding does not automatically mean that the proposed facilities will be built. Their implementation will still depend on financing agreements, regulatory approvals and commercial decisions.

Nuclear technology enters funding programme

The inclusion of a small modular nuclear reactor project represents a new development in the Innovation Fund’s portfolio.

Small modular reactors are designed to produce electricity or industrial heat using nuclear technology on a smaller scale than conventional nuclear power stations.

Supporters argue that modular construction could reduce certain project risks and provide stable electricity supplies for energy-intensive industries.

However, the technology faces substantial challenges involving construction costs, regulatory approval, supply chains and the transition from demonstration projects to commercial production.

The Commission published a European strategy for small modular reactors in March, outlining plans to accelerate their development and support the first operational facilities in the early 2030s.

The latest funding decision gives the technology access to a financial instrument principally associated with industrial decarbonisation and clean energy investment.

Another newly represented technology is direct air carbon capture and storage, which involves extracting carbon dioxide from the atmosphere and storing it.

Both technologies remain at comparatively early stages of commercial deployment in Europe, making their eventual costs and performance important considerations.

Emissions trading revenue finances investment

The Innovation Fund is financed through revenues from the EU Emissions Trading System, under which companies operating in covered sectors must obtain allowances for their greenhouse gas emissions.

Part of the revenue generated from auctioning allowances is reinvested into projects designed to introduce lower-emission technologies into industrial production.

The Commission estimates that the 77 newly selected projects could avoid approximately 290 million tonnes of greenhouse gas emissions during their first ten years of operation.

That figure is a projection based on the projects’ anticipated performance, rather than an achieved reduction. Actual results will depend on construction, commissioning and subsequent commercial operation.

The funding announcement also follows the publication of the EU’s broader industrial policy initiatives, which seek to increase domestic production of clean technologies and improve investment conditions for European manufacturers.

The Commission announced a separate allocation of more than €390 million to 135 environmental and climate projects under the LIFE programme on the same day. That funding is distinct from the €3.4 billion Innovation Fund selection.

Funding agreements still to be concluded

The companies and organisations behind the selected Innovation Fund projects must now complete the procedures necessary to obtain their grants.

During the Commission’s 19 October press briefing, officials indicated that project-specific grant amounts would become available when the agreements are signed, currently envisaged for the first quarter of 2027.

The final allocations and implementation conditions therefore remain subject to the grant preparation process.

For industrial companies, the principal test will be whether the European funding attracts sufficient additional investment to bring the selected technologies into commercial operation.

The results will also provide an indication of how effectively Brussels can translate its industrial policy objectives into additional European manufacturing capacity, particularly in sectors where supply chains remain concentrated outside the Union.

Image Credit: © European Union, 2024 / CC BY 4.0

The European Parliament has demanded €225 billion for the European Union’s foreign policy and development programmes between 2028 and 2034, challenging proposals by member states to reduce spending under the bloc’s next long-term budget.

The Parliament’s Foreign Affairs and Development committees approved their negotiating position on the Global Europe Instrument on Monday, 19 October, by 63 votes to 27, with five abstentions. The proposed allocation represents an increase of €25 billion over the European Commission’s original €200 billion proposal.

The decision comes as negotiations over the wider 2028–2034 EU budget have become increasingly contentious, with Germany and several other net contributors opposing higher expenditure while Brussels faces mounting demands for defence, industrial investment, enlargement and support for Ukraine.

Parliament rejects proposed reductions

Under the position adopted by the parliamentary committees, at least €25 billion would be reserved for humanitarian assistance. MEPs also want dedicated funding for reconstruction in Gaza and financial support for countries seeking EU membership.

The committees are proposing that 20 per cent of official development assistance should be directed towards human development, alongside stronger provisions covering democracy, human rights and the rule of law.

Global Europe is intended to consolidate several existing financing instruments into a single framework governing much of the Union’s external expenditure. The programme would finance activities ranging from development cooperation and humanitarian assistance to economic partnerships and support for countries preparing to join the EU.

The Commission introduced the original €200 billion proposal in July 2025. However, subsequent negotiations among member states have raised the prospect of substantial reductions.

Germany, the Netherlands and several Nordic countries have argued that the next budget must reflect the financial constraints facing national governments. Their objections have complicated efforts to accommodate additional spending on European security and economic competitiveness.

The European Parliament has taken a different position, maintaining that reducing external expenditure would restrict the Union’s ability to operate internationally when European security and economic interests increasingly depend on developments beyond its borders.

Ukraine and enlargement funding

The parliamentary proposal would preserve support for Ukraine while seeking to prevent assistance connected with Russia’s invasion from reducing resources available to other partner countries.

Ukraine’s reconstruction, institutional reforms and integration with European markets will require substantial financing over the coming years. However, the precise allocation will depend on negotiations over the wider budget and the financing arrangements eventually approved.

For candidate countries, MEPs want clearer incentives linking EU assistance to progress on political and economic reforms. The proposed framework would also provide Brussels with greater powers to suspend funding where democratic standards, human rights or judicial independence deteriorate.

A separate provision would permit the Commission to suspend payments where partner countries seriously fail to meet obligations concerning the readmission of their nationals.

That measure reflects the growing connection between the EU’s development policy and its migration objectives. Brussels has increasingly sought cooperation on returns and border management as part of agreements with countries receiving European assistance.

The committees have also called for stronger parliamentary supervision of Global Europe, including more detailed reporting by the Commission and regular discussions with the commissioners responsible for implementation.

Difficult negotiations ahead

The financial disagreement extends well beyond external policy. The overall seven-year budget remains contested, particularly over agricultural subsidies, regional development funds, defence investment and repayment of borrowing undertaken during the coronavirus pandemic.

As EU Today previously reported, a group of 17 member states has opposed reductions in agricultural and cohesion spending, adding further pressure to negotiations.

The Parliament’s proposed €225 billion allocation has not been agreed by governments and does not constitute an approved spending commitment.

The committees also approved a mandate for negotiations with the Council, although their position still requires endorsement by the full Parliament, provisionally expected in November.

Meanwhile, member states must settle their own negotiating position, including the financial ceilings governing the programme.

The eventual settlement will determine how much Brussels can spend on development cooperation, humanitarian operations and international partnerships after 2027, and how those commitments can be reconciled with the EU’s expanding domestic financial obligations.

European Union ministers have adopted a new recommendation calling for stronger measures to prevent homelessness and housing exclusion, as governments face increasing pressure over housing shortages and the cost of accommodation.

The recommendation was approved at a meeting of employment and social affairs ministers in Luxembourg on Monday, 19 October, and forms part of the European Commission’s wider efforts to address Europe’s housing crisis.

It proposes measures ranging from early intervention for households facing eviction to increased investment in affordable housing, improved access to social services and more coordinated support for people without permanent accommodation.

However, the recommendation is not legally binding. Member States will retain responsibility for deciding which measures to introduce, how they should be financed and the extent to which existing national housing policies should be changed.

More than one million people affected

According to the Council’s announcement, more than one million people are estimated to experience homelessness across the European Union.

The problem extends beyond people sleeping on streets or using emergency shelters.

The term housing exclusion also encompasses households living in inadequate accommodation, people facing imminent eviction and those unable to secure stable housing because of financial or personal circumstances.

The Council identifies poverty, unemployment, domestic violence, disability, poor health and insufficient affordable housing among the factors contributing to the problem.

Housing costs have also risen considerably faster than incomes in several European countries.

Between 2013 and 2024, nominal house prices increased by more than 60 per cent across the EU. In some Member States, average increases exceeded 220 per cent during the same period.

These developments have placed additional pressure on households with lower incomes, particularly in cities where rental accommodation is increasingly expensive and social housing is limited.

The shortage affects not only unemployed people but also individuals in paid employment whose earnings are insufficient to cover market rents.

Prevention before eviction

A central element of the new recommendation is the introduction or strengthening of national strategies intended to prevent homelessness before people lose their accommodation.

The Council encourages Member States to establish early-warning mechanisms capable of identifying households experiencing serious financial or housing difficulties.

Proposed interventions include debt counselling, emergency rental assistance, mediation between landlords and tenants, and appropriate safeguards against forced eviction.

The emphasis on prevention reflects the potentially substantial social and financial consequences of losing stable accommodation.

Once a person becomes homeless, obtaining employment, maintaining healthcare arrangements and securing permanent accommodation can become considerably more difficult.

The Council also calls for particular attention to children, young people leaving care and people facing domestic abuse.

Member States are encouraged to ensure that children have access to adequate housing and that young people leaving institutional or foster care are not placed at risk of homelessness because appropriate support arrangements are unavailable.

Greater emphasis on permanent housing

The recommendation promotes a housing-led approach, under which securing suitable and stable accommodation becomes a central element of the response to homelessness.

This differs from policies relying primarily on emergency shelters or temporary accommodation, although such facilities remain necessary for people facing immediate housing difficulties.

Housing-led programmes can include permanent accommodation accompanied by individual support services, depending on the person’s circumstances.

The Council also proposes simplifying access to social and healthcare services through integrated arrangements that allow people to obtain assistance without repeatedly approaching different public authorities.

One suggested model involves providing access to relevant services through a single contact point, with support from social workers, healthcare professionals and other organisations.

However, access to permanent housing ultimately depends on the availability of suitable properties.

The recommendation therefore calls for increased public and private investment in affordable and social housing, renovation of existing accommodation and support for non-profit housing models.

Questions over implementation and funding

The non-binding character of the recommendation remains one of its principal limitations.

European institutions can coordinate policies, provide guidance and support investment, but national governments and local authorities retain substantial responsibility for housing provision and social welfare arrangements.

The recommendation does not automatically establish a new EU housing entitlement or provide dedicated funding to every Member State.

Its effectiveness will depend on whether governments introduce measures capable of increasing housing supply and reducing the number of people entering homelessness.

The European Federation of National Organisations Working with the Homeless, known as FEANTSA, previously welcomed the Commission’s proposal while identifying shortcomings.

In its assessment of the original proposal, the organisation argued that EU policy should place greater emphasis on permanently ending homelessness rather than primarily managing housing exclusion.

It also questioned the adequacy of funding arrangements and the proposed five-year interval for national progress reporting.

Five-year assessment planned

Under the adopted recommendation, Member States are encouraged to provide the European Commission with information on the effectiveness of their national strategies every five years.

The Commission is expected to evaluate national progress and report to the Council five years after the recommendation’s adoption.

The policy follows the European Affordable Housing Plan, presented in December 2025, and the EU’s Anti-Poverty Strategy, introduced in May 2026.

Together, these initiatives seek to expand the Union’s role in coordinating housing policy without transferring national housing responsibilities to Brussels.

The first indication of whether the recommendation will produce measurable results will come from national decisions on social housing investment, eviction prevention and access to permanent accommodation. Without changes to those practical arrangements, the Council’s commitments will remain principally a framework for voluntary cooperation.

Belgium’s three regions have reached an agreement with the European Commission to strengthen measures against water pollution, improve wastewater treatment and increase protection against floods and droughts.

The joint statement, signed in Leuven on Monday, 19th October, sets out commitments for Flanders, Wallonia and the Brussels-Capital Region, including action on industrial pollution, pesticides and persistent chemicals such as per- and polyfluoroalkyl substances, commonly known as PFAS.

The agreement was signed by European Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall, Flemish Environment Minister Jo Brouns, Walloon Environment Minister Yves Coppieters and Brussels State Secretary Ans Persoons.

According to the European Commission’s announcement, the agreement follows a detailed examination of Belgium’s implementation of European water legislation and identifies measures requiring greater attention from regional authorities.

European Commission seeks faster implementation

Belgium is the second EU Member State to complete a structured dialogue under a Commission initiative launched in November 2025.

The process is intended to improve implementation of existing environmental requirements rather than establish an entirely new legislative framework.

European water legislation already obliges Member States to assess the condition of their rivers and groundwater, control pollution and prepare management plans intended to improve water quality.

However, achieving the objectives of the EU’s Water Framework Directive remains difficult in several countries, particularly where pollution, agricultural activity and urban development place competing demands on water resources.

Belgium presents additional administrative complications because responsibility for environmental policy and water management is divided principally between three regional governments.

Watercourses also cross regional and international boundaries, requiring cooperation with neighbouring countries.

The Commission’s review examined Belgium’s third generation of river basin management plans and its second generation of flood risk management plans.

Technical discussions identified areas where implementation could be accelerated, particularly regarding pollution controls, water efficiency and coordination between public authorities.

Flanders to address industrial pollution

Under the agreement, Flanders will prioritise investment in water resilience and stronger action against industrial pollution.

The region intends to use its IMPULSE programme to support improvements in water management and pollution reduction.

Industrial discharges are among the issues specifically identified for closer scrutiny.

The joint statement calls for more systematic reviews of permits governing water abstraction and industrial wastewater discharges, particularly where existing activities place pressure on rivers and groundwater.

The agreement also highlights the need to tackle persistent chemical pollution.

PFAS have become a significant environmental concern because many of these substances degrade extremely slowly and can accumulate in water, soil and living organisms.

Certain PFAS compounds have been associated with adverse health effects, although the risks depend on the individual chemical, exposure level and duration.

The Commission’s commitments include stronger action on PFAS and pesticides, alongside improvements in monitoring and pollution prevention.

Agricultural pollution is another area requiring attention.

Fertilisers and pesticides can enter rivers and groundwater through runoff or infiltration, creating difficulties for water treatment and contributing to the deterioration of aquatic ecosystems.

The three regions have agreed to strengthen cooperation with farmers, retailers and researchers to support more sustainable agricultural practices, including expanding markets for organic products.

€300 million for river restoration in Wallonia

Wallonia has committed to continuing investment in river restoration and improved water resilience, with particular attention to the Vesdre basin.

The region intends to use a €300 million loan secured from the European Investment Bank in 2025 to support restoration work.

The Vesdre basin experienced severe flooding in July 2021, when widespread destruction across eastern Belgium exposed weaknesses in flood protection and the management of vulnerable river valleys.

Restoration measures can include improving river channels, reconnecting floodplains and using natural systems to retain water during periods of heavy rainfall.

The regional authorities also intend to support industrial companies investing in water-efficient production technologies and environmental innovation.

These measures are intended to reduce pressure on water resources while helping businesses adapt to changing environmental requirements.

Wallonia has additionally committed to supporting cleaner agricultural practices, consistent with the wider national objective of reducing pollution from fertilisers and pesticides.

Brussels focuses on wastewater treatment

The Brussels-Capital Region will concentrate on improving water governance and wastewater treatment.

Urban wastewater infrastructure is particularly important in densely populated areas, where drainage networks and treatment facilities must accommodate domestic sewage, commercial activity and rainfall.

Heavy precipitation can place additional pressure on combined sewer systems, potentially increasing the risk of untreated or insufficiently treated wastewater entering natural watercourses.

Improving treatment capacity and water management requires investment in infrastructure, monitoring and coordination between the authorities responsible for sanitation and environmental protection.

The Brussels commitments therefore form part of the wider European effort to modernise urban wastewater systems and improve the ecological condition of rivers passing through major cities.

Cross-border water management

The agreement also identifies the need for closer cooperation in the Scheldt and Meuse river basins.

Both river systems cross national boundaries, making their management dependent on coordination between Belgium and neighbouring countries.

Regional governments have committed to supporting the restoration of floodplains and the removal of barriers affecting shared watercourses where appropriate.

The measures are intended to improve the condition of aquatic ecosystems while strengthening natural protection against floods and droughts.

The Commission will support Belgium through initiatives under the European Water Resilience Strategy, including research, digital technologies, technical expertise and assistance in mobilising public and private investment.

However, the joint statement signed in Leuven does not itself establish a new binding regulatory regime or guarantee that all the investments identified will be financed.

Its importance will depend on whether the three regional governments translate their commitments into funded projects, revised permits and measurable improvements in water quality.

For the European Commission, Belgium’s agreement is also part of a wider programme of structured discussions with Member States on compliance with EU water legislation. Further national dialogues are expected as Brussels seeks to improve implementation across the Union.

Registrations of fully electric cars across 17 European markets increased by 70.3 per cent in September, according to industry figures published on Monday, 19 October, as France and Germany seek to ease the European Union’s emissions requirements for new vehicles.

The data show that 300,202 battery-electric cars were registered during the month, accounting for 32.6 per cent of new passenger-car registrations in the markets surveyed.

The figures emerge three days after Paris and Berlin announced a joint position on the future of Europe’s automotive industry, proposing greater flexibility in the EU’s 2035 emissions regime while introducing measures intended to favour vehicles manufactured in Europe.

Electric vehicles gain market share

The latest figures, compiled by E-Mobility Europe, New Automotive and Fier Automotive, indicate that electric vehicle demand accelerated sharply during September.

According to the industry data published on 19 October, approximately 1.98 million battery-electric cars have been registered across the 17 markets during the first nine months of 2026, an increase of 38.1 per cent compared with the equivalent period last year.

Higher oil prices, government incentives and the introduction of more affordable electric models have all contributed to demand.

The figures represent a substantial change in the composition of European new-car sales, although they cover selected markets rather than constituting a complete statistical account of the EU’s 27 Member States.

France recorded 65,243 battery-electric registrations in September, representing 41.7 per cent of its new-car market. Germany registered 88,724 electric vehicles, giving the technology a market share of 34.6 per cent.

Both countries have substantial automotive manufacturing industries and are directly involved in negotiations over Europe’s future emissions legislation.

Significant differences between European markets

Despite the overall increase, electric vehicle adoption remains uneven across the continent.

Norway retained its position as Europe’s most electrified new-car market, with battery-electric vehicles accounting for 98.8 per cent of registrations in September.

Denmark followed with 88.8 per cent, while Finland recorded 62.7 per cent and Sweden 49 per cent.

Electric models also accounted for approximately half of new-car registrations in Belgium, the Netherlands, Ireland and Portugal.

At the other end of the market, battery-electric vehicles represented only 11.2 per cent of registrations in the Czech Republic, 7.6 per cent in Italy and 6.2 per cent in Poland.

These differences illustrate the difficulty of establishing a uniform European transition timetable.

Household incomes, purchase incentives, vehicle prices and charging infrastructure differ substantially between countries. The availability of affordable electric cars is particularly important in markets where buyers are more sensitive to the initial purchase price.

The varying national figures also complicate the EU’s industrial calculations, since manufacturers must operate across markets progressing at different rates.

France and Germany reach automotive compromise

On 16 October, French President Emmanuel Macron and German Chancellor Friedrich Merz agreed on a joint approach to changes in European automotive regulations.

Under the proposed compromise, car manufacturers would be required to reduce carbon dioxide emissions from new vehicles by 90 per cent by 2035 compared with the 2021 reference level.

The agreement would also remove a proposed requirement to compensate for the remaining emissions through measures such as the use of low-carbon steel.

The change would create additional opportunities for manufacturers to continue selling vehicles powered by combustion engines beyond 2035, subject to the final legislative framework.

In their joint declaration on the automotive industry’s future, the French and German governments argued that emissions reduction must be combined with industrial competitiveness, investment and European manufacturing capacity.

The agreement also envisages preferential treatment for vehicles produced in Europe under certain public procurement and subsidy arrangements.

Britain could potentially benefit from provisions allowing selected European partners to qualify under the proposed industrial framework.

The Franco-German understanding is not, however, a final EU legislative decision. Changes to the regulatory regime require agreement through the relevant European legislative procedures.

Automotive competitiveness enters the debate

The principal argument advanced by supporters of greater regulatory flexibility is that European manufacturers need additional time to adapt production, protect employment and compete with international rivals.

German manufacturers retain extensive investment in combustion-engine and hybrid technology, while French producers have placed considerable emphasis on electric vehicles and maintaining European supply chains.

The negotiations therefore concern more than emissions limits. They also involve battery production, access to raw materials, manufacturing costs and the ability of European companies to compete with producers in China and other markets.

Supporters of the existing transition timetable argue that weakening long-term requirements could discourage investment in electric manufacturing capacity just as consumer demand is increasing.

Manufacturers seeking greater flexibility maintain that regulatory targets must account for uneven market conditions and the cost of developing new technologies.

September’s sales figures provide evidence that electric vehicle adoption is accelerating, but they do not establish whether the same rate of growth will continue without existing incentives.

The debate now centres on whether regulatory relaxation will preserve Europe’s automotive industry during the transition or slow investment in the technology that is already capturing an increasing share of the market.

The European Parliament is preparing to vote on amendments to the as Brussels seeks to reduce its dependence on foreign suppliers of minerals essential for defence equipment, electric vehicles, advanced electronics and industrial production.

The proposals, scheduled for debate in Strasbourg on Monday, 19 October, and a vote on Tuesday, would strengthen coordination over strategic supplies and revise the responsibilities of European companies that depend on vulnerable international supply chains.

At the centre of the discussions is a proposal to establish a European Critical Raw Materials Centre, which would coordinate purchasing arrangements, assess supply risks and support the development of strategic reserves.

The initiative comes amid increasing concern over China’s dominant position in the processing and supply of several materials regarded as indispensable to European industry.

Parliament considers stronger European coordination

According to the European Parliament’s October plenary briefing, the proposed Critical Raw Materials Centre would operate as an EU body responsible for several functions currently distributed between European institutions and national authorities.

These would include identifying vulnerabilities in supply chains, conducting risk assessments, coordinating contingency stocks and supporting joint purchasing arrangements.

The objective is to give European governments and manufacturers greater capacity to respond to interruptions in supplies of minerals and processed materials that cannot easily be replaced.

The legislative report has been prepared by the Parliament’s Committee on Industry, Research and Energy, with Dutch Social Democrat MEP Mohammed Chahim serving as rapporteur.

The committee examined amendments to the existing legislation during 2026, with its revised report submitted for plenary consideration on 9th October.

Tuesday’s vote is intended to establish Parliament’s position for negotiations with the Council. It would not, by itself, constitute final adoption of the amended regulation.

China’s position creates supply risks

The European Union depends heavily on imported critical raw materials, particularly those required for batteries, permanent magnets, semiconductors and specialist industrial equipment.

China occupies a particularly important position in the refining and processing of rare earth elements, graphite and several other materials used in high-technology manufacturing.

The concentration of production creates vulnerabilities because disruption at a single stage of processing can affect manufacturers operating across multiple European countries.

According to the Council of the European Union’s assessment of strategic mineral supplies, China is the principal supplier to the EU for numerous materials, including gallium, germanium, magnesium and rare earth elements.

These substances are used in applications extending well beyond electric vehicles.

Permanent magnets are required for certain electric motors, wind turbines and defence systems, while other critical materials are used in radar, satellites, aircraft components and advanced electronic equipment.

Restrictions affecting their availability can therefore have consequences for European industrial output, defence procurement and the development of new technology.

The question for EU policymakers is not simply whether minerals can be obtained, but whether Europe has sufficient alternative sources and processing capacity to withstand restrictions imposed by a dominant supplier.

Existing targets remain difficult to achieve

The Critical Raw Materials Act entered into force in May 2024 and established benchmarks intended to strengthen European production and diversify imports by 2030.

Under the existing framework, the EU aims to develop extraction capacity equivalent to at least 10 per cent of its annual consumption of strategic raw materials, where geological reserves allow.

The corresponding benchmarks are 40 per cent for processing and 25 per cent for recycling.

The legislation also seeks to prevent any single non-EU country from supplying more than 65 per cent of the Union’s annual consumption of a particular strategic raw material at any relevant processing stage.

These are policy benchmarks rather than binding production quotas imposed on individual companies.

Their achievement depends on the development of mines, processing facilities and recycling operations, as well as the ability to attract investment.

New extraction projects frequently require lengthy environmental assessments, infrastructure development and extensive capital investment. Processing operations face additional challenges involving energy costs, technical expertise and commercial competitiveness.

Consequently, reducing import dependence involves more than identifying mineral deposits within European territory.

Greater obligations for manufacturers

The proposed amendments also address the responsibilities of major European companies using strategic raw materials.

Under provisions examined by the parliamentary committee, the European Commission would take a greater role in identifying large manufacturers whose operations depend on strategically important supplies.

These companies could face requirements to assess vulnerabilities in their supply chains, including the geographical location of extraction and processing operations and the ownership of relevant facilities.

The arrangements would be particularly significant for businesses producing batteries, aircraft, drones, satellites, advanced chips and other products considered strategically important.

Where significant risks are identified, companies could be expected to consider measures including diversification, improved material efficiency or maintaining stocks.

The proposals also seek to strengthen recycling and the recovery of valuable materials from existing products, reducing the quantity of newly extracted resources required by European industry.

Recycling alone cannot remove the need for imports, particularly where demand for new technologies is increasing, but it can provide an additional source of supply.

Supply security becomes an industrial priority

The legislation forms part of a wider effort to link European industrial policy with economic security.

Brussels has been seeking additional raw materials partnerships with third countries, while manufacturers remain concerned about the commercial cost of building alternative supply chains.

Recent EU discussions concerning cooperation with Vietnam illustrate the emphasis being placed on securing alternative access to minerals such as tungsten and rare earth elements.

However, diversifying supplies does not necessarily mean transferring extraction and processing to Europe. Partnerships with reliable external producers may remain essential, particularly for materials unavailable in sufficient quantities within the Union.

The proposed European centre would therefore have to balance internal production, international purchasing, strategic stocks and commercial demand.

The immediate legislative issue is whether the revised framework gives European institutions sufficient powers to coordinate these activities without placing disproportionate administrative obligations on businesses.

Tuesday’s parliamentary vote will determine the negotiating position MEPs take into discussions with EU governments over how those responsibilities should be distributed.

Latvia has called for a European Union-wide ban on tourist visas for Russian citizens, reopening a dispute between member states over border security, freedom of movement and the treatment of Russian nationals during Moscow’s continuing war against Ukraine.

Prime Minister Andris Kulbergs is pressing Brussels and other European capitals to adopt a common approach, arguing that continued visa issuance by some Schengen countries weakens restrictions imposed by states bordering Russia.

His intervention comes amid growing concerns over suspected Russian sabotage, espionage and other hostile activities across Europe. The Latvian government regards restrictions on non-essential travel as an additional measure to reduce potential security risks.

According to details of the Latvian proposal, Kulbergs has criticised the continued issuance of tourist visas by countries including France, Italy and Spain, maintaining that the consequences extend beyond the states granting entry.

The proposal would go considerably further than the restrictions already introduced by the EU since Russia launched its full-scale invasion of Ukraine in February 2022.

A divided European visa policy

The European Union suspended its visa facilitation agreement with Russia in September 2022, ending the preferential conditions previously available to Russian applicants.

The Council’s original decision introduced more demanding documentation requirements, higher application fees and stricter scrutiny, but it did not prohibit Russian citizens from obtaining short-stay visas.

National authorities therefore retained considerable discretion when assessing applications, subject to common Schengen rules.

In November 2025, the Commission introduced additional restrictions on multiple-entry visas, requiring Russian travellers covered by the new rules to apply again for subsequent visits.

The EU has also agreed a legal basis for restrictions targeting Russian military personnel and former combatants involved in the invasion of Ukraine, although implementation requires further measures.

Latvia argues that these steps remain insufficient because ordinary tourist visas continue to be available through some European consulates.

Once admitted to the Schengen area, a visitor can generally travel between participating countries without routine internal border checks. This creates difficulties for governments seeking to enforce stricter national entry policies.

Security concerns on the eastern border

Latvia shares borders with Russia and Belarus and has repeatedly warned that Moscow’s activities present risks extending beyond conventional military threats.

European governments have investigated incidents involving suspected sabotage, cyber operations, intelligence gathering and interference with transport infrastructure.

Such concerns have intensified following drone incursions and security alerts affecting NATO’s eastern members.

These concerns were also evident in EU Today’s reporting on suspected security breaches in Europe, although the circumstances of individual incidents must be investigated rather than assumed to involve foreign intelligence services.

The distinction is relevant to the Latvian proposal. European intelligence agencies have identified Russian-linked activities, but this does not establish that ordinary Russian tourists are collectively involved in intelligence operations.

Supporters of tighter visa restrictions argue that limiting discretionary entry could reduce opportunities for hostile activity and simplify security screening.

Opponents question whether a nationality-based prohibition would be proportionate or effective, particularly when intelligence operations may involve individuals travelling under other nationalities or using established residency arrangements.

Political and legal complications

A comprehensive tourist visa ban would require agreement on its precise scope, legal basis and implementation.

European governments would need to determine how the restrictions apply to Russian citizens with family members in the EU, people travelling for humanitarian purposes and individuals seeking protection from the Russian authorities.

The EU Visa Code already permits refusals where applicants present security risks, but a general prohibition based on nationality would involve a different policy decision.

Humanitarian exceptions would be particularly important for Russian dissidents, independent journalists and other individuals facing political persecution.

France has supported restrictions on entry by Russian combatants, while other member states are considering further measures. That does not necessarily mean they support Latvia’s broader proposal covering ordinary tourists.

Kulbergs is also seeking greater European financial assistance for countries facing the economic and security consequences of their proximity to Russia and Belarus.

Sanctions and Schengen controls

The renewed visa debate coincides with disagreements between Washington and Brussels over economic restrictions on Moscow.

EU leaders have maintained that sanctions should remain in place until Russia ends its aggression against Ukraine. Visa policy, however, requires separate legal and political consideration from economic sanctions.

Latvia’s proposal has not been adopted as an EU-wide rule. The immediate question is whether enough member states are prepared to move from tighter individual screening towards a general restriction on Russian leisure travel.

Until that agreement is reached, European countries will continue to apply different policies within a shared Schengen system, leaving the security concerns raised by Riga unresolved.

McClelland, who served in the Rudd government, named as boss of National Anti-Corruption Commission after Paul Brereton quit in May

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Former Labor attorney general and federal court judge Robert McClelland has been named as the new boss of the National Anti-Corruption Commission.

McClelland was the country’s top law officer in the Rudd government, serving from 2007 until 2011. After leaving parliament in 2013, he has served as the deputy chief justice of the federal circuit and family court of Australia since 2018, after being appointed to the court by the former Coalition government in 2015.

UK home secretary’s meeting comes after PM said he wanted to rejoin European law enforcement databases

The UK home secretary, Shabana Mahmood, will meet the EU’s home affairs commissioner on Monday for further talks just days after Andy Burnham said he wanted to rejoin European law enforcement databases from which the UK has been locked out of since Brexit.

According to the European Commission, they will discuss “migration, border management, law enforcement cooperation and counter-terrorism”, with the latest Frontex data published on Monday showing a 43% decline in small boats crossing the Channel.

UK home secretary’s meeting comes after PM said he wanted to rejoin European law enforcement databases

The UK home secretary, Shabana Mahmood, will meet the EU’s home affairs commissioner on Monday for further talks just days after Andy Burnham said he wanted to rejoin European law enforcement databases from which the UK has been locked out of since Brexit.

According to the European Commission, they will discuss “migration, border management, law enforcement cooperation and counter-terrorism”, with the latest Frontex data published on Monday showing a 43% decline in small boats crossing the Channel.

Someone tried to set fire overnight to a Lithuanian company that stores Starlink communication equipment, but tipped-off guards foiled the attempt, Lithuanian Prime Minister Mindaugas Sinkevičius said. He linked the attack to Russia’s hybrid war against Europe. It is the third suspected sabotage of Starlink infrastructure in Europe in under a month.

Russia keeps attacking Ukraine at the front and from the air while running a sabotage campaign behind the lines in Europe, which ISW has linked into one pattern. Starlink keeps Ukraine’s drone units and front-line troops connected, and Poland pays for much of that service.

Fuel canisters and a control unit

The attack came just after midnight, the prime minister wrote. Security services had warned the company about possible attacks, security was stepped up, and the attempt failed.

The company provides connectivity through nine Starlink satellite antennas used by Ukraine, Sinkevičius told Lithuanian public radio LRT. At almost 2 a.m., intruders tried to burn the antennas and their control unit, leaving behind incendiary liquid in canisters of 3 to 10 liters.

“It is obvious that this is part of Russia’s hybrid war with elements of sabotage,” he said, adding that the client was likely “the Russian side.”

He said he believes the people involved, and how many there were, are known, but gave no details, citing the investigation.

Police Commissioner General Arūnas Paulauskas said no suspects had been detained, any damage was minimal, and the company kept working. A pretrial investigation is under way.

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New Starlink restrictions disrupt Ukrainian drone missions. Kyiv adviser says move is tied to “political situation”

A drone the same morning

Hours later, an object that apparently entered from Poland crossed northern Lithuania, and NATO jets failed to identify it, Defense Minister Robertas Kaunas said. Possible fragments were found in the Pasvalys district near the Latvian border. Latvia’s military said the object may have blown itself up on a course toward Latvia.

Sinkevičius said the sabotage version had to be checked for the drone too. He called the National Security Commission for Monday, 19 October, to examine both incidents and consider giving services more powers to neutralize drones.

The third Starlink site

In September, a fire destroyed the distribution panel at a Starlink ground station in Wola Krobowska, Poland. Germany detained two Turkish nationals on 12 October, and Warsaw blamed Russian intelligence. In Bulgaria, masked intruders burned 11 of 17 Starlink antennas near Sofia.

Italy and five other member states have failed to secure a further postponement of the EU’s new carbon market for heating and transport fuels, although European leaders have ordered a fresh assessment of its impact on households and businesses.

European Union leaders have resisted demands for another postponement of carbon pricing for road transport and building fuels, exposing deep disagreements over climate policy, industrial competitiveness and the burden of energy costs on European households.

At the European Council summit in Brussels on 15–16 October, the Visegrad countries — Poland, Hungary, Slovakia and the Czech Republic — pressed for the second European Emissions Trading System, known as ETS2, to be delayed until 2030. Italy and Greece joined calls for greater flexibility over carbon costs, although Rome also sought a national exemption from aspects of the energy-price regime rather than simply a uniform delay. No further postponement was agreed.

The European Council conclusions call on the European Commission to update its assessment of ETS2, particularly its design and safeguards. Leaders also demanded action to reduce volatility in the existing carbon market and limit the effect of carbon prices on electricity costs.

The outcome stops short of the further postponement sought by several governments, but demonstrates how far energy affordability has moved towards the centre of European climate negotiations.

The growing rebellion over ETS2

ETS2 is designed to extend the principle of carbon pricing to fuels used for heating buildings, road transport and certain smaller industrial activities. Unlike the existing Emissions Trading System, which covers large industrial installations and power generation, the new mechanism reaches sectors closely connected to everyday household expenditure.

Under the scheme, fuel suppliers must purchase allowances corresponding to the emissions associated with the fuels they sell. Households and motorists will not buy allowances themselves, but suppliers may pass those additional costs through to customers.

That distinction is fundamental. A policy designed to encourage investment in cleaner heating systems and vehicles may initially appear to consumers as an increase in petrol, diesel and domestic heating bills.

The current legislative timetable provides for ETS2 to become operational in 2028, following an earlier one-year postponement. The latest demands from several Central European governments would push that date back to 2030.

Their argument is that consumers and smaller businesses cannot reasonably be expected to absorb another source of energy-price pressure while European economies continue to contend with geopolitical uncertainty, expensive fuel and comparatively weak industrial competitiveness.

Czech Prime Minister Andrej Babiš has been particularly outspoken in his criticism, arguing that carbon pricing risks weakening Europe’s industrial base and making everyday life more expensive.

Italy has supported calls for greater flexibility, with Prime Minister Giorgia Meloni presenting the discussion as part of a wider attempt to restore competitiveness and make the transition more affordable.

Why other governments opposed another delay

The initiative encountered resistance from governments concerned that repeatedly postponing established climate legislation would weaken investment certainty and reduce confidence in European policy.

The Nordic member states have been particularly reluctant to reopen the timetable. Their position reflects a broader concern that businesses investing in clean technologies need credible long-term rules, rather than legislation liable to be revised whenever political opposition intensifies.

Carbon pricing is intended to change economic incentives gradually. Higher costs for carbon-intensive fuels are supposed to make alternatives such as better-insulated buildings, electric vehicles and cleaner heating more financially attractive.

Critics of further postponement argue that delaying implementation would also delay those incentives, potentially increasing the eventual cost of reaching the Union’s emissions-reduction targets.

Yet the opposition has exposed a weakness in that argument: consumers cannot always respond quickly to price signals. A household relying on an older heating system or a worker with no practical alternative to driving may face higher costs long before affordable low-carbon options become available.

That issue has been central to earlier discussions over ETS2. EU Today reported on stronger carbon-price safeguards in June, when European institutions moved to provide additional market intervention if allowance prices rose sharply.

Commission ordered to reassess the economic impact

Rather than endorsing a new delay, European leaders have asked the Commission to review ETS2’s economic impact and safeguards.

The summit also urged faster progress on adjustments to the Market Stability Reserve, the mechanism intended to help manage the supply of carbon allowances and prevent excessive price volatility.

Under the existing scheme, market interventions can increase or reduce allowance availability in response to defined conditions. For ETS2, safeguards are especially politically sensitive because the cost of carbon allowances may ultimately be reflected in household transport and heating expenditure.

The European Commission’s updated auction arrangements already envisage auctions of ETS2 allowances beginning in 2027, ahead of the system’s operational launch in 2028.

That timetable gives governments a relatively narrow window to settle the remaining political disputes and put protective measures into effect.

A central part of the response is the Social Climate Fund, intended to support vulnerable households, transport users and small businesses through investments in energy efficiency, cleaner heating, improved transport and temporary financial assistance.

EU Today previously examined the European Investment Bank’s €3 billion advance financing initiative, which aims to accelerate support for households before the new carbon market becomes fully operational.

The central practical question is whether such assistance reaches consumers quickly enough to offset rising costs, particularly in member states where incomes are lower and households remain heavily dependent on fossil fuels.

Climate commitments meet industrial reality

The ETS2 dispute is connected to a broader argument over Europe’s existing carbon market and its effects on energy-intensive industries.

Manufacturers already face substantial costs arising from electricity, fuel, regulatory requirements and international competition. Governments concerned about deindustrialisation argue that European climate policy must account more directly for these pressures.

The summit conclusions acknowledged those concerns by demanding a predictable carbon market that limits price volatility and protects industry against the relocation of production to jurisdictions with less demanding environmental rules.

At the same time, leaders reaffirmed the importance of maintaining carbon pricing as an incentive for investment and emissions reduction.

For the governments seeking a postponement, the Commission’s new assessment offers an opportunity to maintain pressure for further concessions. For governments defending the existing timetable, it provides an alternative to another politically damaging delay.

The immediate result is therefore a compromise over scrutiny rather than a change in law. ETS2 remains scheduled for 2028, while Brussels must demonstrate that its safeguards can withstand both market volatility and political opposition.

The next phase will be determined less by arguments about long-term emissions targets than by the ability of EU institutions and national governments to show households and businesses how the transition can be financed without placing disproportionate costs on those least able to adjust.

Brussels (Brussels Morning Newspaper) October 16, 2026 – The European Commission has unveiled a comprehensive new strategy aimed at strengthening the fight against human trafficking across the European Union, focusing on modern technology, private-sector cooperation, dismantling organized crime, … Read more

The Ukrainian president, Volodymyr Zelenskyy, told reporters on the second day of the European Council summit in Brussels that he was happy to have support from 'leaders, real leaders'. Zelenskyy's comment came after pressure from the White House to stop strikes on Russian oil facilities. His strained relationship with the US president, Donald Trump, was in evidence this week, with Trump stating: 'I’m not a big fan of Zelenskyy.'

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