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The Guardian - UK
The Guardian - UK
World
Lili Bayer in Brussels

Ursula von der Leyen, Nicolas Schmit, Anders Vistisen and Sandro Gozi debate economy – as it happened

Ursula von der Leyen, Nicolas Schmidt and Sandro Gozi participate in the EU leadership debate.
Ursula von der Leyen, Nicolas Schmidt and Sandro Gozi participate in the EU leadership debate. Photograph: Virginia Mayo/AP

Summary of the day

  • Senior European politicians debated economic policy in Brussels, ahead of the June European elections.

  • Ursula von der Leyen, the current European Commission president and lead candidate for the centre-right European People’s party, called for completing the capital markets union and said issues such as defence, security and competitiveness must be among the priorities for the EU’s next long-term budget.

  • Nicolas Schmit, for the Party of European Socialists, argued competitiveness includes investing in health, housing, education and infrastructure. He also called for a debate with citizens on real challenges.

  • Sandro Gozi, debating for Renew Europe Now, called for eliminating obstacles within the EU’s single market and called for Europe to focus more on industry.

  • Anders Vistisen, from the far-right Identity and Democracy Party, said the European economy is fundamentally broken and called for the EU to cut costs.

  • Spain said it is permanently withdrawing its ambassador from Argentina as a result of a growing diplomatic feud with the South American country’s radical rightwing president, Javier Milei.

  • A “foreign agents” law that has brought hundreds of thousands of people on to the streets of Georgia’s capital of Tbilisi could be dropped in return for a package of economic and security support from Washington, the ruling party has hinted.

  • Emmanuel Macron, the French president, will travel to New Caledonia, a spokesperson announced.

  • The move comes after deadly violence has paralysed the French overseas territory after lawmakers in Paris approved a constitutional amendment to allow recent arrivals to the territory to vote in provincial elections.

  • Groups of tourists were evacuated from New Caledonia to Australia and New Zealand.

  • Karl Nehammer, the Austrian chancellor, hosted the British prime minister, Rishi Sunak. The two leaders discussed migration.

  • Finland’s government proposed emergency legislation today to block asylum seekers entering from its border with Russia.

The debate has ended.

Anders Vistisen, for the far-right Identity and Democracy party, said in his concluding remarks that the next five years will be crucial, arguing there’s been an EU power grab.

Nicolas Schmit, for the Party of European Socialists, said Europe must be bold, innovative, courageous. We need a strong debate with our citizens on the real challenges, he argued.

Sandro Gozi said Europe must become a military and industrial power.

He also stressed there’s a need for one market – and dismantle all remaining obstacles. And he talked about reform.

In her closing remarks, Ursula von der Leyen, the European People’s party lead candidate, said the core task is to create good jobs and to ensure the social market economy prevails.

She said she wants Europe to lead on cutting-edge technologies.

Von der Leyen also said geopolitics is playing a role, but that the single market should be strengthened.

Anders Vistisen, for the far-right Identity and Democracy party, said Europe is living beyond its means.

Sandro Gozi for Renew Europe Now listed his priorities as security, digital, green transition and focusing more on investment with cross-border dimension.

Nicolas Schmit, for the Party of European Socialists, said competitiveness includes investing in health, housing, education, infrastructure.

Updated

Asked about the priorities for the next EU budget, Ursula von der Leyen said defence, security, competitiveness, decarbonisation, digitalisation are among the priorities but that a discussion is needed with leaders. Topics like agriculture and cohesion will play a role, she noted.

We can have a more efficient budget, she argued.

Updated

Ursula von der Leyen avoided giving a concrete answer on the question of whether to have a new round of EU joint debt.

Ursula von der Leyen pointed to the growth rate in countries that joined the EU 2-0 years ago.

Nicolas Schmit argued the EU budget is not enormous. Defence is not for free, security is not for free, he said.

We have to have the right instruments, he said. We have to be more flexible, he added.

We need more own resources, he said, referring to income for the budget that does not come from national coffers’ contributions.

Updated

Sandro Gozi called for a more demanding mechanism linking the EU budget to respect for fundamental freedoms.

Ursula von der Leyen made three points:

There is no one EU budget, in her view. Besides the seven-year Multiannual Financial Framework (MFF), she pointed to several instruments negotiated over the past years.

There’s a need to define priorities for the next MFF, she stressed.

She also argued there’s a need for more simplicity.

If I want to cut, I want to cut on time and complexity, she said.

Updated

Anders Vistisen, for the far-right Identity and Democracy Party, said the EU already has a sufficient budget and that half the EU agencies should be abolished. The EU is already too big and too bureaucratic, he argued.

Updated

The debate has moved to the issue of the EU budget.

Nicolas Schmit, for the Party of European Socialists, said Europe has created a platform for legal migration, working with member states, and that there’s an acceptance that Europe needs migration.

Ursula von der Leyen said Europe is clear it will fulfil international obligations, but it is Europeans who decide who comes to Europe and under what circumstances, not the smugglers. Fight human smuggling and establish legal pathways, she argued.

Anders Vistisen, for the far-right Identity and Democracy Party, said he believes illegal migration is the biggest threat to European cohesion.

Legal migration can be beneficial if it’s well-regulated and tailored, and best decided on the national level, he argued.

Ursula von der Leyen also argued that when it comes to China, the EU has been very tough.

With the US, “we have a much more balanced relationship” and “we can speak with them,” she noted.

Updated

Asked if Europe is in a trade war with China, Nicolas Schmit, for the Party of European Socialists, said “you may call it a beginning of a war, or at least, there’s a risk for escalation – and again, this would harm the whole world economy.”

Ursula von der Leyen, for the EPP, said: “No, I don’t think that we’re in a trade war.”

“I think here it’s very clear we’re in the category of de-risking from China,” she added.

Updated

Ursula von der Leyen, the European Commission president and lead candidate for the centre-right, is using the debate to lay out her vision for Europe’s economic future.

Sandro Gozi for Renew Europe Now said it’s clear the world is changing and Europe must focus much more on industry, calling for a European sovereignty fund and a plan for the defence industry.

Ursula von der Leyen said that economic security means being competitive.

A lesson learned from the pandemic and Russia’s war in Ukraine is the need for access to raw materials, to energy, to technologies, to markets, she said, underscoring the importance of diverse supply chains.

We need to look at risks coming from outside the EU, she added.

The remedy is dialogue, von der Leyen said, noting she has spoken with China’s leadership. But she also said action matters and that the EU is willing to deploy its trade toolbox. Competition makes us better but must be fair, she argued.

Updated

Anders Vistisen, for the far-right Identity and Democracy Party, said the EU has turned into a socialist nightmare.

China needs to be pushed out of all critical infrastructure, he argued. He also called for a ban on TikTok.

Updated

Nicolas Schmit, for the Party of European Socialists, said we should not be protectionist – but we should not be naive.

Updated

The debate is now moving to the issue of economic security.

Updated

Ursula von der Leyen says competition policy must look at the global market. “Sometimes if we need champions to compete globally, that’s fine for me,” she said, emphasising the issue of fairness in the single market.

Updated

Nicolas Schmit said it’s important to harmonise regulations.

Ursula von der Leyen said cohesion is precious and we can learn lessons from this mandate. There’s a proposal for more incentives to go with coming investments, she said. We can always improve, she noted.

Sandro Gozi has pointed to obstacles within the single market.

The politicians are now debating state aid.

Nicolas Schmit calls for pragmatism, saying there’s a need to look at strategic sectors. We need more common financing and projects, he said.

Nicolas Schmit, for the Party of European Socialists, said that we must work hard to create the capital markets union and show its to everyone’s benefit.

Ursula von der Leyen, for the centre-right European People’s party, also called for moving ahead.

Sandro Gozi criticised the European People’s party, saying there’s a need to show real political will to move ahead. It has to be a real priority, he said, noting the differences in positions and saying there’s a need for a mediator.

Anders Vistisen, for the far-right Identity and Democracy Party, said simplification is the way to go.

Updated

Ursula von der Leyen, lead candidate for the centre-right European People’s party and the current European Commission president, listed the EU’s strengths but said it needs to do its homework.

The capital market union must be completed, she said. Von der Leyen also said energy costs must be reduced. She also called for better skills, and better reconciliation of work and family. We need a push on strategic technologies, the Commission president said, while calling to deepen the single market.

Anders Vistisen, for the far-right Identity and Democracy Party, said the European economy is fundamentally broken.

This era of mass regulation must come to an end, he said, calling for the abolition of some directives.

He also said the EU’s green deal should be abolished.

Updated

Nicolas Schmit, for the Party of European Socialists, said the single market is unfinished and needs to be adapted to new challenges. The new challenges are huge, he added. He also underscored the importance of social policies and including citizens, and building a consensus around the single market.

Sandro Gozi, on behalf of Renew Europe Now, said he wants more of the EU single market.

Updated

The first round of the debate will focus on competitiveness and the EU single market.

The FT’s Henry Foy, who is co-moderating today’s debate, is wearing a Free Evan badge.

Wall Street Journal reporter Evan Gershkovich was arrested over a year ago in Russia.

Today’s EU election debate – featuring Ursula von der Leyen, Nicolas Schmit, Anders Vistisen and Sandro Gozi – will focus on economic issues, including the EU single market, economic security and the future of the EU budget.

Updated

The Bruegel-Financial Times EU elections debate will start shortly. Stay tuned.

Updated

Spain permanently recalls ambassador from Argentina amid feud with Milei

Spain has said it is permanently withdrawing its ambassador from Argentina as a result of a growing diplomatic feud with the South American country’s radical rightwing president, Javier Milei.

Milei – a notoriously pugnacious ally of the fellow populists Donald Trump and Jair Bolsonaro – sparked the row last weekend by insinuating that Begoña Gómez, the wife of Spain’s prime minister, Pedro Sánchez, was “corrupt”.

The remarks to a summit of the global far right outraged Spain’s centre-left government, which denounced Milei’s “frontal attack” on its democracy and demanded a full public apology. But Milei doubled down on Monday, declaring that he had no intention of retracting them and was himself “the victim”.

Spain’s foreign minister, José Manuel Albares, responded on Tuesday by announcing that his top envoy to Buenos Aires, María Jesús Alonso Jiménez, would not be returning to her post, having been recalled the previous day.

Read the full story here, by Tom Phillips, Latin America correspondent, and Sam Jones in Madrid.

Georgia’s ‘foreign agents’ law could be dropped in return for US support bill

A “foreign agents” law that has brought hundreds of thousands of people on to the streets of Georgia’s capital of Tbilisi could be dropped in return for a package of economic and security support from Washington, the ruling party has hinted.

In response to a draft bill tabled in the US Congress that would open up talks on a trade deal in return for fresh commitments on civil rights, the governing Georgian Dream party said in a statement that it would need to see progress on such promises within a year.

The party’s ruling body, known as the political council, issued a statement on Tuesday in which it insisted that the government would not be blackmailed but also signalled that a way out of the crisis was possible if it saw swift progress on preferential trade terms and visa liberalisation.

“Our partners can significantly rearrange their relationships within a year maximum,” the party said. “If they realise this, the relations will be settled very quickly, but if they continue to act in the same approach towards Georgia, it will damage both Georgia and America’s interests.”

Read the full story here.

Who’s debating today?

This afternoon’s EU elections debate will feature the following politicians:

Ursula von der Leyen, for the centre-right European People’s party. Von der Leyen, a German politician, is the current European Commission president and wants a second term.

Nicolas Schmit, for the Party of European Socialists. Schmit, who is from Luxembourg, is now the European commissioner for jobs and social rights. While he is formally the Socialists’ lead candidate, politically he is not considered a contender for the top job of Commission president.

Anders Vistisen, for the far-right Identity and Democracy Party. He is a member of the European parliament from Denmark.

Sandro Gozi, on behalf of Renew Europe Now. Gozi is an Italian politician elected to the European parliament in the French constituency.

Homes evacuated in Italy after strongest quake in 40 years near supervolcano

Homes were evacuated and many people slept in their cars or on the street after the strongest earthquake in 40 years shook the area around the sprawling Campi Flegrei supervolcano close to Naples.

The 4.4-magnitude tremor in Pozzuoli, a densely populated port city, was followed by 150 quakes that were also strongly felt in Naples.

Local media reports said cracks had formed in buildings and chunks of masonry had collapsed. Schools were closed on Tuesday in Pozzuoli and a cluster of towns and districts of Naples.

“We left our home at midnight and went to our son’s in Vomero [Naples],” Mimmo Pignatelli, who lives in Solfatara, a town adjacent to one of Campi Flegrei’s 24 ancient volcanic craters, said.

“We are used to the quakes – but this one was very frightening as it was the strongest in 40 years. We could feel the ground move as we walked.”

Read the full story here.

Eyes on the debate

Senior European politicians will debate this afternoon at an event organised by Bruegel and the Financial Times. Stay tuned.

Here are more images from New Caledonia.

French authorities announced another 22 arrests today in New Caledonia, for a total number near 300, the Associated Press reported.

Updated

About a hundred tourists have returned home from New Caledonia.

More special evacuation flights are set to take place.

Spain recalls ambassador from Argentina

Madrid has permanently recalled its ambassador in Buenos Aires, Spain’s foreign minister, Jose Manuel Albares, said today, Reuters reported.

The move comes amid a row over derogatory comments made by Argentina’s president, Javier Milei.

Right-wing crimes in Germany up, ministry data shows

Crimes motivated by right-wing ideology rose by nearly a quarter in Germany last year, according to data from the country’s interior ministry, Reuters reported.

28,945 such crimes were recorded in the country last year, a rise of 23.21% compared to 2022.

Slovakia's parliament votes for resolution condemning politically motivated violence

Slovakia’s parliament voted unanimously today to condemn politically motivated violence, the Associated Press reported.

MPs endorsed a resolution that calls on political parties, civic organisations and media to respect the results of parliamentary elections and refrain from spreading hatred against the democratically elected government.

Updated

Violence erupted in New Caledonia over French plans to impose new voting rules.

AFP reported that French figures including a former prime minister, Manuel Valls, have called for delay to the change.

“You can’t make progress on the Caledonia file by issuing ultimatums,” Valls said Sunday.

Anti-independence representatives disagree.

Withdrawing “would prove the wreckers, the looters and the rioters right,” said Nicolas Metzdorf, a New Caledonia MP for Emmanuel Macron’s Renaissance party.

“Violence cannot replace the ballot box in a democracy,” he said.

The first transport with evacuees landed in Brisbane in eastern Australia around 7:00 pm (0900 GMT) today, AFP reported.

Charles Roger, director of New Caledonia’s Chamber of Commerce and Industry which operates Noumea’s larger La Tontouta international airport, told AFP there would be no commercial flights there until Saturday morning.

Updated

A week of unrest in New Caledonia – in pictures

Macron to visit New Caledonia

Emmanuel Macron, the French president, will travel to New Caledonia, the Associated Press reported.

A government spokesperson said “he will go there tonight.”

A state of emergency was declared by Paris last week. “The return to calm is starting to arrive,” the spokesperson said.

Fico 'conscious and communicative', hospital says

Slovakia’s government, together with the F.D. Roosevelt university hospital in Banská Bystrica, has issued an update this morning on the prime minister’s health.

As a result of the morning medical board meeting, the Prime Minister Robert Fico underwent a follow-up CT scan of the abdominal cavity. At the same time, further actions are being taken to improve his health condition. The patient remains conscious and communicative.

Karl Nehammer, the Austrian chancellor, hosted the British prime minister, Rishi Sunak.

“The leaders committed to implementing stronger frameworks to deal with migration, and that new innovative solutions are crucial to this end,” Nehammer said.

“Both think the answers lay with deeper partnerships with others, and increasing cooperation with countries involved in all stages of the migrant journey was essential to tackling this growing pan-European challenge,” he added.

Updated

British and Austrian leaders discuss security and illegal migration

The British prime minister, Rishi Sunak, has met with Austria’s chancellor, Karl Nehammer.

“Together, they reaffirmed their commitment to strengthening our security and tackling illegal migration,” Sunak’s office said.

Updated

Finnish government puts forward emergency border security legislation

Finland’s government proposed emergency legislation today to block asylum seekers entering from its border with Russia, Reuters reported.

Helsinki believes Moscow has been weaponising migration, and shut down the border last year.

“It is the government’s duty to ensure the security of the borders, Finland and Finns in all situations,” the Finnish prime minister, Petteri Orpo, said.

“Unfortunately the EU legislation does yet not provide us with effective tools to tackle the problem. I hope our work will pave the way for European level solutions,” he added.

Here are the latest images from New Caledonia.

French officials said over weekend that security forces had destroyed 76 roadblocks along the road from the capital Noumea to the international airport.

However, AFP journalists said many had quickly been rebuilt by Kanak militants.

Kanaks with scarfs over their faces, some armed with homemade catapults, were still manning a roadblock Tuesday on the road to the international airport, AFP reported.

Explainer: Why is there unrest in New Caledonia?

Deadly violence has paralysed New Caledonia, a French overseas territory in the South Pacific, for more than a week after lawmakers in Paris approved a constitutional amendment to allow recent arrivals to the territory to vote in provincial elections.

The amendment, which some local leaders fear will dilute the vote of the Indigenous Kanak people, is the latest flashpoint in a decades-long tussle over France’s role in the island.

At least six people have died in the protests, which has prompted authorities to shut the international airport and schools and impose a curfew in the capital, Nouméa, where businesses and vehicles have been set alight.

France has launched a major security operation in a bid to quell the violence, and this week Australia and New Zealand are sending government planes to evacuate their nationals.

The world’s No 3 nickel producer, New Caledonia lies at the heart of a geopolitically complex maritime region, where China and the US are jostling for power and influence in security and trade. Without naming China, the French president has previously said France’s drive to expand its influence in the Pacific was to ensure a “rules-based development”.

Read the full explainer from Reuters here.

Penny Wong, Australia’s foreign minister, has said that “we’ve received clearance for two Australian Government assisted-departure flights today for Australian and other tourists to depart New Caledonia.”

“Passengers are being prioritised based on need. We continue to work on further flights,” she added.

New Zealand evacuates citizens from New Caledonia

Winston Peters, New Zealand’s foreign minister, said a plane has left New Caledonia after picking up a first group of people.

Here’s the latest footage from New Caledonia.

Welcome to the blog

Good morning and welcome back to the Europe blog.

Send thoughts and tips to lili.bayer@theguardian.com.

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