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ECB’s digital euro plan faces strong resistance from European banks

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The European Central Bank’s (ECB) plan to launch a digital euro by 2029 has encountered strong opposition from EU lawmakers and the European banking sector.

Ahead of a key European Parliament session on the project on Wednesday, 14 lenders, including Deutsche Bank, BNP Paribas, and ING, warned that the digital euro could undermine private sector payment systems.

The 14 banks have collaborated to create a private sector entity that will compete with US payment companies like Mastercard, Visa, and PayPal. The service, named Wero, was launched last year.

“The current design of a retail digital euro addresses largely the same use cases as private solutions, without offering clear added value to consumers,” the banks stated ahead of Wednesday’s session.

Fernando Navarrete, a Spanish conservative lawmaker appointed by the European Parliament to evaluate the digital euro, is also advocating for a significantly scaled-down version of the project.

The ECB began evaluating a digital central bank currency in 2020. Last week, its governing council decided to take the necessary steps to launch the first digital euros “in 2029,” with a pilot program in 2027.

The legislation underpinning the project was proposed by the European Commission in 2023. The project can only proceed if EU governments and the bloc’s parliament give it the green light, as current laws only authorize the ECB to issue physical cash, not digital tokens.

ECB executive board member Piero Cipollone argued in September that the digital euro is needed to protect “our freedom, our autonomy, and our security” due to the dramatic decline in cash usage and the dominance of US payment providers.

The share of cash used in stores fell from 72% to 52% in the five years leading up to 2024. The digital euro has gained impetus from the rapid development of US-backed stablecoins, which many in Europe believe could threaten the role of the euro.

Last month, the 20 finance ministers of the eurozone member states supported the ECB’s digital euro plans, welcoming the “recent progress in advancing the digital euro project” and urging lawmakers in Brussels to swiftly enact the necessary legal changes.

In a report published last week, Navarrete argued that the digital euro should only be used as a substitute for coins and banknotes in payments without an internet or mobile connection, but not as a real-time digital payment tool for other transactions, including online, as envisioned by the ECB.

Navarrete warns in his report that online payment functions could create a “parallel payment ecosystem that prevents private solutions from reaching a pan-European scale.”

He advocates for the online version of the digital euro to be launched only if European private sector competitors to US payment providers fail.

Navarrete told the Financial Times that the private sector is “closer than ever” to creating a competitive payment system, adding that “a responsible policymaker’s approach should be to set a framework to maximize the chances of this happening,” while also being “ready with a fallback option.”

It is unclear whether Navarrete’s views are shared by a majority in the parliament, as social democrats, liberals, and greens, as well as members of his own conservative group, support the digital euro.

His assessment was welcomed on Tuesday by the German Banking Industry Committee, the country’s largest banking lobby group.

The committee described the current plans as “too complex” and “too expensive,” stating that they offer “no tangible benefit for consumers.”

In a study commissioned by European banks, PwC estimated that the launch of the digital euro could cost the financial sector €30 billion.

The ECB rejected this estimate, stating the cost would be just under €6 billion.

“Twenty-five years after the introduction of the euro, there is still no pan-European competitive payment solution,” said a senior central bank official, adding that even the successful establishment of a domestic private sector entity to rival Visa and Mastercard would not be a permanent solution to the problems, as its ownership could change.

“Visa Europe used to be European, but it was eventually sold,” the central bank official said.

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Greek billionaire’s shipping empire stalls EU’s 21st Russian sanctions package over LNG transit ban

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The European Union’s proposed 21st sanctions package against Russia has stalled due to objections from Greece over planned restrictions on liquefied natural gas (LNG) transport, diplomatic sources familiar with the matter told the Financial Times.

According to the report, Athens opposed a provision in the sanctions draft that would ban the transshipment of Russian LNG to third countries.

Sources indicated that the diplomatic intervention by Greece is aimed at protecting Dynagas, a shipping company owned by Greek shipowner George Prokopiou. During a meeting on Wednesday, the Greek Permanent Representative to the EU told counterparts that the proposed sanctions would ruin the company.

Data from the maritime database Equasis shows that Dynagas operates a fleet of 27 gas carriers. This fleet includes “Arc7” ice-class tankers, which are custom-built to operate safely in the freezing waters of the Arctic region where Russia’s Yamal LNG plant is located.

Prokopiou, a prominent businessman, owns the shipping companies Dynacom, Dynagas Holding, and Sea Traders. He also holds a 43% stake in the publicly traded Dynagas LNG Partners. According to Forbes, Prokopiou and his family have an estimated net worth of $4.7 billion.

European diplomats speaking to the Financial Times emphasized that other member states have sacrificed their own commercial interests for the sake of enforcing sanctions against Russia.

The new sanctions draft proposed by the EU also includes a provision to lower the price cap under which companies can purchase and transport Russian oil without facing the risk of secondary sanctions.

To buy time for negotiations, EU permanent representatives were forced to pass an emergency resolution extending the existing price cap of $44.1 per barrel for another week. The Financial Times noted that without this temporary extension, oil prices could have risen sharply due to ongoing tensions between the US and Iran.

Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy, expressed regret over the failure to reach a consensus on the sanctions package.

“Of course, member states have different reasons for objecting. Our goal is to reach an agreement. If an agreement cannot be reached, we will start working on Plan B,” Kallas said.

In a previous statement on July 13, Kallas had acknowledged that anti-Russian sanctions were causing harm to the European economy.

According to a report by Politico, talks have been postponed to July 22 after member states failed to reach an agreement on the new sanctions package for three consecutive days. The publication identified Greece and Austria as the primary countries blocking the measures.

Vienna is reportedly conditioning its approval on a compensation clause regarding the Austria-based Raiffeisen Bank. Austria is demanding the inclusion of a mechanism in the sanctions package to compensate the bank for €2.44 billion in losses resulting from precautionary measures taken against its subsidiary in Russia.

Meanwhile, Greece raised concerns regarding previously agreed EU restrictions on the Russian LNG trade dating from October 2025. Sources speaking to Politico indicated that these objections from Athens remain unresolved.

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Gibraltar and Spain to dismantle land border as UK signs post-Brexit treaty

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The decade of uncertainty following the United Kingdom’s decision to leave the European Union is set to end on Wednesday as the 118-year-old physical border between Gibraltar and Spain is dismantled.

Although the British Mediterranean territory voted by 95.9% to remain in the EU during the 2016 referendum, it was forced to leave the bloc as a consequence of the UK’s wider decision.

Following the departure, passport controls became more stringent and the transit of commercial goods grew increasingly complex for the thousands of people who cross the border daily, including 15,000 Spanish citizens who work in the territory.

In an effort to resolve these complications, administrations in Brussels, London, Gibraltar, and Madrid have spent ten years negotiating the removal of physical checks at the Spanish border.

Two-tier checks to be implemented at the airport

Under the terms of the agreement, Gibraltar will remain fully under British sovereignty and territory, but the land border will effectively become nothing more than a line on a map.

The technical details of the implementation mirror the procedures used for the Eurostar train line operating beneath the English Channel. Similar to the system at London’s St Pancras station, passengers arriving at Gibraltar Airport will clear both Gibraltar and EU passport controls in succession.

Passengers who receive clearance from both authorities will be permitted to travel freely within Gibraltar and the Schengen zone.

Through this mechanism, physical checks at the land border between Gibraltar and Spain will be completely eliminated.

Gibraltar will also align with specific aspects of the EU single market and customs regulations to facilitate the flow of goods, the supply of which had become difficult following Brexit.

While the Gibraltar administration emphasizes that it is not legally part of the Schengen zone and will retain the authority to determine its own visa policy, the arrangement will in practice offer a level of convenience similar to the Schengen regime, as there will be no passport control upon entering Spain.

Agreement to be formalized in Brussels

The UK Minister for Europe, Stephen Doughty, and the European Commission Executive Vice-President, Maroš Šefčovič, are formally signing the agreement in Brussels on Tuesday.

The process has been a cross-party effort in the UK, with former Foreign Secretary David Cameron also working extensively during his term to finalize the accord.

The agreement reached the signature stage in the spring of 2024, but the decision of then-British Prime Minister Rishi Sunak to call a snap general election, followed by the subsequent change of government, delayed the process by a year.

While Eurosceptics within the British Conservative Party argue that the agreement compromises Gibraltar’s sovereignty, the Gibraltar government supports the implementation of the plan.

Speaking to the Telegraph newspaper ahead of the removal of the border controls, Gibraltar’s Chief Minister, Fabian Picardo, strongly criticized Brexit.

“Brexit was the greatest self-inflicted wound the United Kingdom has delivered to itself since the Second World War,” Picardo said. “Brexit was sold to the British public on false promises. The United Kingdom should seriously re-evaluate its relationship with the European Union, including returning to membership or establishing a much closer partnership.”

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Mutual accusations of blackmail and assault overshadow AfD state election congress in Germany

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The Alternative for Germany (AfD) state congress in North Rhine-Westphalia ended in chaos on Sunday.

During the selection of the 22nd position on the candidate list for next year’s state elections, delegates aligned with the far-right Bundestag member Matthias Helferich proposed more than 100 candidates. This move was reportedly designed to block the vote in the town of Marl, halting progress on the list to force negotiations for subsequent positions.

Earlier in the candidate selection process, supporters of State Co-Chairman and lead candidate Martin Vincentz, who represents the moderate wing of the party, had prevailed. The defeat of Zacharias Schalley—a figure close to Helferich—by a candidate from the Vincentz camp triggered significant discontent within the radical wing of the party. Representing approximately 40% of the delegates, Helferich’s supporters reportedly demanded strong representation in the next state parliamentary group.

During the congress, Helferich claimed that Bundestag member Knuth Meyer-Soltau, a member of the Vincentz camp, physically assaulted him. Speaking to the newspaper WELT on Sunday, the 37-year-old Helferich described the incident:

“Meyer-Soltau was passing by the row where I was sitting. He was arguing with another member. When he turned back, while I was sitting in my chair, he shouldered me and shouted, ‘Shut up, you idiot!'”

Helferich added: “I do not know if he wanted to knock me out of my chair. However, because he insulted me in anger, I cannot rule out the possibility that this was a deliberate attack.”

An email exchange sent to the federal executive board and state management revealed that Helferich filed a criminal complaint on Monday.

“Meyer-Soltau hit my chair and my body, either intentionally or through negligence”

In the complaint filed by Helferich, he stated: “Meyer-Soltau hit my chair and my upper body hard, either intentionally or through negligence; I was only able to avoid falling by holding onto the edge of the table.” The complaint also named two witnesses.

In his letter to the party leadership, Helferich wrote: “Since numerous similar incidents of electoral law significance occurred at the state election congress, I believe the duty to maintain party order falls to the Federal Executive Board.”

Meyer-Soltau, a 61-year-old lawyer like Helferich, denied the allegations. Speaking to WELT on Sunday, the lawmaker said: “I reject the accusation being made.”

Meyer-Soltau suggested that Helferich viewed him as a powerful opponent because he had previously acted as the negotiator for the state executive board in the party’s expulsion proceedings against Helferich before the Federal Arbitration Court. The party court recently rejected the expulsion request.

“It is clear that this situation has not had a positive impact on our relationship,” Meyer-Soltau said. “Mr. Helferich, having suffered a heavy defeat at the nomination meeting, is clearly seeking satisfaction through other means. I will hand the matter over to my lawyer and take legal action.”

A letter sent to Helferich by Meyer-Soltau’s lawyer, which was leaked to the press, stated: “My client has never insulted you or physically assaulted you.” The letter demanded that Helferich cease repeating the claim and sign a cease-and-desist declaration carrying a contractual penalty.

Additionally, Meyer-Soltau’s lawyer filed a criminal complaint with the Dortmund Prosecutor’s Office for defamation. The petition submitted to the prosecutor’s office stated: “The accusation of physical assault is highly defamatory, calculated to permanently damage my client’s public reputation, and socially discredit him.”

Allegations of blackmail made against delegates at the congress

Allegations of threats against delegates also emerged at the state congress in Marl. Helferich ran against Klaus Esser, a close associate of Vincentz, for the 13th position on the candidate list. Esser, who needed just one vote to be elected in the first round, only secured a majority in the second round of voting.

Following the announcement of the results, a delegate took the stage to claim that before the second round, a state executive board member from the Vincentz camp went to the rows of the Wuppertal district association and threatened that a state lawmaker from Wuppertal would be expelled from the parliamentary group if the necessary votes for Esser were not delivered. The delegate announced that a complaint would be filed regarding the matter.

A spokesperson for AfD Co-Leader Alice Weidel told the media outlet “The Pioneer”: “Weidel does not approve of this situation. Such things must not happen.”

Other allegations of threats were voiced through the hall microphones during the congress. One delegate claimed that a candidate had been threatened by a district councilor and a district chairman.

“He was told that if he did not withdraw his candidacy, he would have no future in this party. There are numerous witnesses who can confirm this,” the delegate asserted.

Another delegate reported that a young woman was pressured by a district chairman who asked whether she would “lend herself to this game and submit to blackmail,” warning her that the situation would have “consequences for her in the district association.”

Marco Vogt, the Deputy Chairman of the Düsseldorf AfD and an ally of Helferich, said during his candidacy speech that young members who participated in the list disruptions had been threatened by their employers present in the hall.

Another candidate, a municipal councilor from Würselen, stated that a district administrator from the Aachen region had issued an implicit threat, telling him he would make many enemies in his own association if he did not withdraw his candidacy.

Candidate Leon Biallawons directly targeted lawmaker Knuth Meyer-Soltau, saying: “I tell you clearly, dear Knuth, I will not allow myself to be threatened by you. Because, dear Knuth, it is not you but the grassroots who will decide who succeeds in this party, and the grassroots will assert their will in the long term.”

Meyer-Soltau declined to comment on these allegations, stating: “I do not wish to comment on such baseless claims.”

Other tactics were used to slow down the proceedings at Sunday’s congress. One delegate requested a 30-minute recess because “there is an ice cream truck outside,” though this request was rejected. The convention manager, Julian Flak, was heard calling out to a delegate: “Take that garden furniture outside immediately!”

A message shared on Saturday in a chat group close to Vincentz stated that the “self-proclaimed patriotic group” had threatened to completely block the congress. It was alleged that the core group led by Helferich planned to deliberately disrupt the flow of the congress to force their opponents to the negotiating table.

Weidel accused of undermining efforts in chat group

On Sunday, in the same chat group, it was written that the sabotage action was being coordinated by Federal Deputy Chairman Sven Tritschler and Helferich. The message claimed that Tritschler had discussed the move with “his boss Alice Merkel”—a reference to AfD leader Alice Weidel. “This is a clear operation of attrition. We will not bow to an Alice Merkel,” the message read.

By Monday night, the ballot for the 22nd list position contained the names of 81 candidates. Some individuals who announced their candidacies withdrew before speaking. The results are expected to be announced next weekend.

The North Rhine-Westphalia AfD association has allocated a total of four weekends for candidate selection meetings. With the party projected by public opinion polls to win between 30 and 40 seats in the state parliament, competition for the top spots on the list remains intense.

An article titled “AfD-NRW Grassroots Resist Cartel Partyization,” published Monday on a Telegram channel close to Helferich, described the events as a “heroic act” and an “impressive reaction of an alert, idealistic grassroots.” The mass candidacy process was characterized as a “combination of Carl Schmitt’s partisan theory with a democratic liberation move unprecedented in AfD history.”

The article argued that if lead candidate Vincentz wants to translate polling success into a strong election result, he must unify the party by granting Helferich’s supporters viable, electable positions on the list.

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