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EU Diplomat Says Iran’s Actions Risk Its Own Downfall

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European Union foreign policy chief Kaja Kallas said Iran’s government is undermining its own future by launching indiscriminate attacks across the region. Speaking to reporters, she accused Tehran of pursuing a strategy aimed at spreading instability and escalating conflict in the Middle East, warning that such actions could ultimately backfire on the Iranian leadership.

Tensions escalated further after Turkey reported that NATO air defence systems intercepted an Iranian ballistic missile heading toward Turkish airspace. Radosław Sikorski, Poland’s foreign minister, criticised Iran’s actions, saying the country was widening the conflict by targeting nations that were not directly involved in the war.

Kallas also warned that the growing Middle East crisis risks diverting international attention away from the war in Ukraine. While she noted that the conflict could weaken Russia by costing it a regional ally, she cautioned that Moscow might still benefit from rising global oil prices triggered by the escalating tensions.

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EU ‘Made in Europe’ Auto Plan Risks Trade Tensions

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The European Union is preparing to introduce stricter “Made in EU” requirements for automakers as part of a proposed Industrial Accelerator Act aimed at reviving domestic manufacturing. Under draft rules, electric vehicles would need at least 70% of their parts’ value — excluding the battery — produced within the bloc to qualify for subsidies, alongside minimum EU-based battery content. The move is designed to counter mounting pressure from cheaper Chinese electric vehicle imports and prevent further industrial decline.

However, the plan has exposed divisions within the EU. France has pushed for stronger protection of local suppliers, warning of further factory closures and job losses without firm local-content mandates. Germany, whose carmakers depend heavily on exports to China, fears that stricter rules could trigger retaliatory trade measures. Industry groups caution that global auto supply chains are deeply integrated, making compliance complex and raising the risk of disrupting production networks.

Non-EU countries such as Britain and Turkey, key manufacturing hubs for European brands, are lobbying to be included in the framework. Automakers warn that excluding these partners could weaken EU production itself, while including them may create loopholes for Chinese firms to benefit indirectly. With billions of euros in subsidies and thousands of jobs at stake, policymakers are walking a tightrope between strengthening European industry and avoiding backlash from global trading partners.

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Italy Misses 2025 Deficit Target, Pressure on PM Meloni

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Italy’s 2025 budget deficit came in at 3.1% of GDP, slightly above the European Union’s 3% ceiling, according to ISTAT. While lower than 2024’s 3.4%, the miss casts doubt on Rome’s plan to exit the EU’s Excessive Deficit Procedure early, which could have eased spending constraints ahead of the 2027 elections.

The eurozone’s third-largest economy grew by 0.5% in 2025, matching the government’s revised forecasts, though growth remains below 1% for the fourth consecutive year despite EU recovery funds. The 2026 deficit is targeted at 2.8%, with the government hoping for modest improvement amid lingering fiscal challenges.

Italy’s public debt also exceeded expectations, rising to 137.1% of GDP from 134.7% in 2024, above the government’s 136.2% target. With debt levels remaining the second-highest in the eurozone after Greece, the Meloni administration faces mounting pressure to control spending while promoting economic growth.

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EU Urges Restraint and Respect for International Law in Iran Conflict

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The European Union’s 27 member states have called for “maximum restraint” and full adherence to international law amid escalating hostilities involving Iran. In a statement issued after an emergency meeting of foreign ministers, EU foreign policy chief Kaja Kallas stressed the need to protect civilians and uphold the principles of the UN Charter and international humanitarian law. The appeal followed U.S. and Israeli strikes on Iran and Tehran’s retaliatory attacks on Israel, U.S. forces and Gulf countries, which the EU described as inexcusable violations of sovereignty.

The bloc also voiced concern about the broader regional and economic fallout of the conflict, warning against escalation that could destabilize the Middle East and beyond. It highlighted the importance of keeping critical waterways such as the Strait of Hormuz open, citing risks to global energy supplies and supply chains. Disruptions to oil flows could have significant economic consequences for Europe, which is already grappling with geopolitical uncertainty.

The joint statement reflected differing views within the EU over the U.S.-Israeli military action. While German Chancellor Friedrich Merz signaled caution against criticizing allies, Spanish Prime Minister Pedro Sánchez rejected the strikes as contributing to global instability. Diplomats acknowledged that Europe has limited leverage over the unfolding crisis, despite the potential for serious regional and economic repercussions.

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EU Clarifies Social Fund Can Support Cross-Border Access to Safe Abortions

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The European Commission has clarified that member states may use the European Social Fund to provide free abortion services to women traveling from EU countries with restrictive laws. The announcement followed the “My Voice, My Choice” citizens’ initiative, which gathered over one million signatures urging the bloc to ensure equal access to safe and legal abortion care. While the Commission stopped short of proposing a new funding tool, it confirmed that existing resources could be reallocated to support women, particularly those in vulnerable situations, seeking procedures abroad.

The move comes as countries such as Poland and Malta maintain near-total abortion bans, and access remains limited in nations including Italy and Croatia. Supporters argue that women across the 27-member bloc should have equal healthcare rights regardless of national restrictions. Campaign coordinator Nika Kovac welcomed the clarification, calling it the first clear confirmation that EU funds can be used to guarantee safe abortion access across borders.

However, critics — including conservative lawmakers and far-right groups — say the decision interferes with national sovereignty over health policy and undermines traditional values. Opponents argue that using EU social funds for abortion-related services effectively bypasses domestic laws. The clarification reflects broader tensions within Europe, where abortion access has expanded in countries such as France and the UK, even as far-right parties opposing abortion gain political ground.

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Hungary Threatens to Block EU Sanctions on Russia

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Hungary has vowed to block the European Union’s latest sanctions package against Russia and a proposed 90-billion-euro loan for Ukraine, escalating tensions ahead of the fourth anniversary of Moscow’s full-scale invasion. The dispute centres on the disruption of Russian oil supplies through the Druzhba pipeline, which Budapest and Slovakia say has undermined their energy security. Hungarian Prime Minister Viktor Orban has indicated that Hungary will withhold support for the measures until the issue is resolved.

EU foreign ministers meeting in Brussels urged Hungary to reconsider, warning that unity is crucial as the war drags on. Ukrainian President Volodymyr Zelenskiy, in an interview with the BBC, said Russian leader Vladimir Putin had “already started” World War Three and called for intensified global pressure on Moscow. Meanwhile, U.S.-led diplomatic efforts to broker peace have yet to yield a breakthrough, with recent talks in Geneva failing to produce progress.

The standoff comes as Russian drone strikes killed two people in Ukraine’s southern Odesa region, according to Ukrainian officials, while Kyiv claims it has regained control over parts of the southern frontline. Hungary and Slovakia have also warned they could halt emergency electricity exports to Ukraine if oil flows via Druzhba are not restored. The clash underscores deep divisions within the EU as it seeks to maintain pressure on Russia while managing internal political and energy challenges.

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Swiss Industry Warns of Chaos After Fresh U.S. Tariff Hike

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Switzerland’s leading industry body Swissmem has criticised the latest tariff move by Donald Trump, saying it adds to global uncertainty and dampens investment activity. Over the weekend, Trump raised a temporary U.S. import tariff to 15% from 10%, a decision Swissmem said is exacerbating market chaos and creating fresh challenges for exporters.

Switzerland had already faced some of the highest U.S. tariffs in Europe after Washington imposed a 39% duty on Swiss exports last August. In November, Switzerland secured a preliminary agreement reducing levies to 15%, in line with the European Union. Talks are ongoing to formalise that arrangement by the end of March, and Swissmem has urged the government to continue negotiations to ensure legal certainty for businesses.

Although the new 15% tariff may not be stacked on top of the previously agreed rate, Swissmem noted that when combined with a pre-existing 5% duty on industrial goods, Swiss exports could effectively face tariffs of around 20%. The group warned that this would significantly raise prices for American customers, though it acknowledged that similar tariffs on foreign competitors may offer limited relief. Switzerland, for its part, abolished its own industrial tariffs in 2024.

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EU Not Ready to Set Ukraine Membership Date, Says Kaja Kallas

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European Union foreign policy chief Kaja Kallas said EU governments are not prepared to give Ukraine a concrete date for joining the bloc, despite Kyiv’s push for one as part of future security guarantees. Speaking at the Munich Security Conference, Kallas said member states believe significant work remains before any timeline can be set, underlining that EU accession is a merit-based and lengthy process.

Ukraine, led by President Volodymyr Zelenskiy, has been pressing for a 2027 membership target, with diplomats saying the date was floated in discussions involving the European Union, the United States, and Ukraine as part of a broader peace framework. However, many EU capitals view any fixed date as unrealistic while Ukraine is still aligning its laws and institutions with EU standards amid an ongoing war with Russia.

Latvian President Edgars Rinkevics echoed Kallas’ remarks, saying there was little appetite among EU leaders to commit to a date and expressing scepticism about the prospects of an imminent peace deal. He added that any special arrangement for Ukraine would also need to consider long-standing candidates such as Western Balkans states and Moldova, while noting that opposition from Hungary continues to slow the launch of detailed accession talks.

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EU Blacklists Iran’s Revolutionary Guards Over Protest Crackdown

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The European Union has added Iran’s Islamic Revolutionary Guard Corps (IRGC) to its list of terrorist organisations, citing the group’s central role in a deadly crackdown on anti-government protests. EU foreign policy chief Kaja Kallas said the move was a response to widespread repression, placing the IRGC alongside groups such as al-Qaeda and Islamic State. Iran condemned the decision, calling it a “strategic mistake”, while human rights groups say thousands of protesters were killed during unrest in December and January.

France, which had previously been cautious over the move due to concerns about severing diplomatic ties with Tehran, backed the decision this week, alongside Italy and other EU states. The bloc also imposed new sanctions on six Iranian entities and 15 senior officials accused of involvement in violent repression, including Iran’s interior minister and senior judicial figures. Those listed face travel bans and asset freezes under EU rules.

The decision comes amid rising tensions between Iran and the West, as the US increases its military presence in the region and pushes Tehran to negotiate over its nuclear programme. US President Donald Trump said he hoped to avoid military action but warned Iran to engage in talks, while Iranian officials said their forces were ready to respond to any aggression. Independent groups estimate the death toll from the protests could exceed 20,000, though Iran disputes those figures.

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Six European Economies Push to Advance Stalled EU Projects

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Ministers from six major European economies, including Germany, France, Poland, Spain, Italy, and the Netherlands, pledged to take the lead in advancing projects stalled by the EU’s slow decision-making processes. The virtual meeting followed criticism from the Trump administration over the EU’s lengthy deliberations, with leaders emphasizing the need to strengthen Europe’s competitiveness and defense capabilities amid geopolitical uncertainty. German Finance Minister Lars Klingbeil described the group as a flexible coalition, open to additional countries joining in the future.

While no concrete decisions were made, the ministers agreed to focus on key areas such as creating a capital markets union, enhancing the international role of the euro, coordinating defense investments, and securing critical minerals through joint purchasing and trade partnerships. The discussions underscored the growing emphasis on European sovereignty in light of global challenges from the U.S., Russia, and China. Officials stressed that the initiative would allow faster progress on crucial projects without requiring unanimous agreement from all 27 EU members.

The move reflects a broader push within Europe to adopt a “two-speed” approach, enabling smaller groups of countries to act independently on policy areas where consensus is difficult. German Chancellor Friedrich Merz and French leaders have long advocated for this strategy to accelerate economic and strategic initiatives, including trade deals and energy policies. Polish Finance Minister Andrzej Domański noted that Europe must act faster to respond to ongoing economic and geopolitical changes, signaling a shift toward more agile and pragmatic decision-making within the EU.

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