A roundup of the latest news on Wednesday

The owner of the UK's largest bioethanol plant, Vivergo, has given the government two weeks to propose a rescue package to address the impact of a new US-UK trade deal that threatens to flood the market with tariff-free ethanol. If no support is forthcoming, the plant may consider laying off its 160 workers, exacerbating local economic pressures amid ongoing discussions about regulatory changes and industry viability. More Context

Germany aims to prioritize defense spending in the upcoming EU budget while opposing increases to national contributions, as outlined in a position paper. The country advocates for funding joint procurement for arms, calls for reduced administrative costs to shift resources towards innovation, and emphasizes the need for fair burden sharing, while maintaining support for core programs like the Common Agricultural Policy and cohesion funding. More Context

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