​​Business drives Musk’s EU obsession

Good morning from Brussels.

It’s now crystal clear that politics is not Elon Musk’s forte, as proven in yesterday’s fiasco interview on X with Germany’s far-right AfD leader.

However, he knows how to do business, which may explain his obsession with the Old Continent.

Euractiv’s Editor-in-Chief, Matthew Karnitschnig, wrote that Europe represents a key market for Musk’s businesses, from X and SpaceX to Tesla. If things do not go Musk’s way, he uses the Trump card: political blackmail.

This was the case with the threat to withdraw Washington’s NATO support if the EU reined Musk in over his stewardship of X.

In Brussels, several EU diplomats fear the US will try to divide the EU by approaching member states bilaterally. A first test could already be the Starlink case.

Although the past suggests fertile ground in the EU for such a strategy, the Europeans will soon realise that Trump's US only understands the language of power and that the run-and-hide approach cannot last long.

The possibility of a US withdrawal from the WHO under President-elect Donald Trump looks very real, potentially leaving a significant funding gap that the EU would struggle to fill, writes Catherine Feore.

Meanwhile, pressure is mounting on Brussels to enforce the European Digital Services Act (DSA) against Meta and X.

The political temperature is rising ahead of Trump’s return to the White House. The actual temperature is also rising, as 2024 was the warmest year on record since 1850.

PARIS

The EU's top court ruled on Thursday that requiring rail passengers to declare a gender when buying a ticket is in breach of the EU's General Data Protection Regulation (GDPR). Read more.

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BERLIN

Germans may finally get cheap electric cars in 2025. High prices and a lack of state support have prevented electric vehicles from becoming the preferred car model in Germany, but moves by policymakers and the automotive industry suggest that will change this year. Read more.

German plans to review refugee status of Syrians likely to come at a price. Germany is grappling with the future of Syrian refugees as talks on the hot-button issue of migration intensify ahead of the general elections, but proposals to reassess their refugee status could stumble over major logistical and economic roadblocks. Read more.

German authorities must decide who goes thirsty during droughts. A new report says that German authorities must be prepared to make tough decisions on who receives water during potential shortages. Read more.

ROME

Meloni expects EU support for migrant centres. Italian Prime Minister Giorgia Meloni is confident that Europe will back her plan to open migrant centres in Albania, calling it “perfectly in line” with the EU Migration and Asylum Pact. With the European Court of Justice set to review the case in February, Meloni on Thursday said that “based on her discussions with European counterparts”, most member states "will support Italy’s position before the Court".

The main issue remains the designation of “safe countries” of origin, with Meloni saying that Italy’s High Court supports the government’s position - a claim that Euractiv has since debunked.

Another boat of migrants is expected to arrive in Albania around 11 January, but those working in the reception centre in Shengjin say they have been given no information, and only a skeleton staff of Italian employees remains. (Alessia Peretti | Euractiv.it)

Europe space chief says cooperation intact despite Italy moves. The head of the European Space Agency dismissed concerns on Thursday that cooperation in Europe is dwindling as Italy charts its own course on rocket operations and weighs a potential agreement with Elon Musk's Starlink on satellites. Read more.

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MADRID

Sánchez to seek urgent fix for Canary Islands migration crisis. Spanish Prime Minister Pedro Sánchez’s government (PSOE/S&D) has set a 10-day deadline to find a temporary solution to the overcrowding in migrant reception centres for unaccompanied minors in the Canary Islands. Read more.

LONDON

EU, UK push ahead with gene-edited plant rules. Poland has proposed a text to break the EU deadlock over legislation on new genomic techniques (NGTs), just before the UK announced it would fully implement a similar law easing rules on gene-edited crops. Read more.

WARSAW

The Polish government adopted a resolution on Thursday to ensure the free and safe participation of Israeli leaders, including ICC, indicted Prime Minister Benjamin Netanyahu at the 80th anniversary of the liberation of Auschwitz ceremony on 27 January. Read more.

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BRATISLAVA

Slovak opposition seeks meeting with president over Fico’s foreign policy. Leaders of Slovakia's three main pro-Western opposition parties have expressed concern over the increasingly pro-Russian foreign policy of Robert Fico's government, saying that firm alignment with the EU and NATO is the only way to ensure the country’s freedom, security and prosperity. Read more.

Slovakia's Fico doubles down on Ukraine threats over halted gas transit. Slovakia may halt humanitarian aid and emergency electricity supplies to Ukraine and leverage its veto power in EU matters should Kyiv not resume gas flows through its territory, Prime Minister Robert Fico said in Brussels today. Read more.

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PRAGUE

Most Czechs believe EU Green Deal will lead to increase in energy prices. The Green Deal is contributing to disproportionate increases in energy costs, according to 71% of Czechs surveyed for a new study published on Thursday. Read more.

BELGRADE

Serbia has cancelled contracts for Russian weapons that have supplied its army since Soviet times, Serbia's Chief of General Staff Milan Mojsilović said, without specifying whether the country was cutting ties with Russia. Read more.

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SOFIA

Economic forecasts optimistic as Bulgaria moves closer to joining eurozone. Bulgarian exports are expected to grow by 5.8% annually after the country joins the eurozone, according to an analysis released on Wednesday by trade credit insurer Allianz Trade. Read more.

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BUCHAREST

Romania continuing to allow banned bee-killing pesticide. Romania is the sole country in the EU that still wants to permit the emergency use of a banned neonicotinoid pesticide, despite a 2023 ruling by the EU's top court that such derogations are illegal. Read more.

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BUCHAREST | VIENNA

Romania on its way to become EU’s largest gas producer. The agreement between Austria's OMV and Germany's Uniper to supply gas from the latter's Black Sea project in Romania's economic zone has put the spotlight on the country's significant gas supply potential. Read more.

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