Why Italy will struggle to meet Nato’s higher defence spending target

Europe faces a new crisis as Israel conducts air strikes on Iranian military sites, aiming to halt its nuclear program. Meanwhile, the EU's competition arm is resisting calls to subsidize clean energy tech, as tensions rise within the Schengen area, now facing renewed border checks, prompting EU justice ministers to advocate for preserving free movement and addressing internal security concerns. More Context

The European Commission is resisting calls to exempt clean energy technology producers from strict state-aid rules, creating tension between officials focused on competition and those advocating for industry support amid global competition. While some EU lawmakers and industry leaders push for production subsidies to bolster the bloc's manufacturing capabilities, Competition Commissioner Teresa Ribera argues such measures could undermine competitive incentives and be deemed protectionist. More Context

The UK has reached an agreement with Spain to allow Spanish customs to check goods entering Gibraltar, facilitating the removal of border controls for people traveling between the two territories. The deal includes raising Gibraltar's sales tax to align with Spain's VAT, permitting certain exemptions for specific goods, and is seen as crucial for improving UK-EU relations post-Brexit. More Context

This month, as G7, NATO, and EU leaders meet, a crucial focus emerges on the US's shifting defense commitments to Europe, necessitating the EU's proactive stance on its own security and investment in defense. With increased European defense spending and a commitment to collective security, the transatlantic alliance aims to support Ukraine and maintain economic strength amidst global tensions. More Context

Donald Trump is set to finalize a US-UK trade deal that will lower tariffs on British car exports in exchange for increased access for US beef and ethanol, following an agreement made with Sir Keir Starmer. While UK officials expect the deal to be signed soon, there are ongoing negotiations regarding zero-tariff access for UK steelmakers, amid concerns from the bioethanol industry about competition from US imports. More Context

The EU is preparing sanctions against two Chinese banks for allegedly facilitating banned trade with Russia, marking its first attempt to target a third-country lender involved in supporting Russia's invasion of Ukraine. These sanctions, included in the European Commission's latest measures, require unanimous approval from EU member states and aim to close loopholes that enable Moscow's military supply chains. The decision comes amid heightened tensions, as trade between Russia and China has surged, and as...