| Commission’s finance chief Mairead McGuinness said EU leaders must do better at bolstering cross-border merger of banks, and warned recent amendments to draft deposit insurance rules risk weakening the very bases of the Banking Union. The Commissioner urged policymakers to overcome their residual “banking nationalism”, which she said remains a major obstacle to the further integration of Europe’s banking sector and impedes critical investments and economic growth. She noted that the same nationalistic tendencies were visible in the tweaks introduced by the Council to the crisis management and deposit insurance (CMDI) framework. These changes, she said, risk incentivising financial authorities “to continue to use national tools” outside of the EU resolution framework, including taxpayer-funded bailouts – and could make it harder for banks to access the Single Resolution Fund. Read more. EU Court ruling casts shadows on Europe’s largest steelmaking plant. The EU Court of Justice (ECJ) has ruled that operations at Italy’s Ilva plant in Taranto must be suspended if they continue to “present serious and significant dangers to the environment and human health”, as they would breach the bloc’s industrial emissions rules as well as its Charter of Fundamental Rights. The ruling could spell major trouble for a sector that has written the history of European industrialisation and mass employment – but that now faces severe uncertainty as to where to find the funds to tackle the social and operational costs of the transition towards more sustainable energy sources. While countries with deeper pockets like Germany and France have been able to redirect billions into greening their heavy industries through state aid others, including Italy, struggle to work out how to support energy-intensive sectors and their workers while funding a costly energy transition. Read more. Germany wants the upcoming European Commission to pursue ‘EU-only’ free trade agenda. Chancellor Olaf Scholz said the next Commission should clinch more free trade agreements (FTAs) with third countries. Speaking at a conference held by German industry organisation BDI on Monday (24 June), Scholz called for a more marked shift towards leaner trade agreements—known as “EU only”—that do not require ratification by all EU countries. Urging “the next Commission and also the other member states to get their act together and finally move forward,” Scholz said “EU only” deals could “prevent years of delays caused by the ratification processes” at national level. German Economy Minister Robert Habeck also presented a 7-point wishlist for the next Commission’s Economic Agenda, including a revision of the bloc’s strict rules for state aid. Read more. After two years of softening her own and her party’s posturing towards Brussels, the post-EU election accords among the three European Parliament centrist parties have prompted Italian PM Giorgia Meloni to return to her original Eurosceptic narrative. On top of leading the ECR, Meloni is first and foremost the head of Fratelli D’Italia, a party that used to consistently chastise the EU as a group of power-hungry and authoritarian elitists, far removed from the interests of those they rule over. For Meloni, bringing home results this time around means securing an “even better” representation for her country than in the outgoing legislature – where Paolo Gentiloni holds the economy portfolio in the Commission – she told the Italian Parliament. Government sources say she is eyeing a vice president’s role that would allow oversight “over two or three sectors” – attached to relevant portfolios such as “competition, trade, financial sector [or] industrial policy” – with Rome aiming to nominate Minister of European Affairs Raffaele Fitto for this role. Read more. Germany’s Scholz, Habeck pin their hopes on EU-China talks to avoid trade war. The German chancellor voiced hope on Monday (24 June) that EU and Chinese negotiators will reach a deal on electric vehicle (EV) tariffs before 4 July – the day European duties on Chinese carmakers are meant to come into effect. “There is still a little time left until 4 July,” Scholz said after the European Commission and the Chinese government held initial talks for negotiations over the weekend. “It is clear that we also need serious movement and progress from the Chinese side at this point”, Scholz added. The initial talks between Chinese Commerce Minister Wang Wentao and EU trade chief Valdis Dombrovskis happened during a visit of German Vice Chancellor Robert Habeck in Beijing, who highlighted the need to find a mutually agreed solution. Read more. Germany’s Lindner pushes back against industry association BDI’s call for debt-financed fund to pay for infrastructure, education, and additional industrial subsidies. BDI recently calculated that Germany will need an additional €400 billion in public investments over the next 10 years, arguing that the government should consider a new debt-financed fund after options to spend more effectively and reprioritise the budget spending have been exhausted. “Structural tasks, such as national and alliance defence, strengthening our infrastructure and guaranteeing economic competitiveness cannot be solved with special programmes,” Lindner said, pointing to the EU fiscal rules as well as the high interest burden. Read more. | 
