Diplomacy
EU leaders push for deregulation to boost competitiveness and appease the US
Reducing bureaucracy is one of the few policy areas where there is broad consensus among EU countries.
According to draft conclusions obtained by POLITICO, European leaders meeting in Brussels this week will instruct the European Commission to accelerate its work on “all files with a simplification and competitiveness dimension as a matter of the highest priority.”
To emphasize this message, 19 EU leaders, including Germany’s Friedrich Merz, France’s Emmanuel Macron, Italy’s Giorgia Meloni, and Poland’s Donald Tusk, called for a “systematic review of all EU regulations to identify unnecessary, excessive, or unbalanced rules” ahead of the summit.
In a letter obtained by POLITICO, they urged Brussels to repeal old rules, demanded a “continuous flow” of simplification measures, and called for restraint on new legislation.
Nevertheless, the simplification effort is being presented as a way to address Washington’s concerns that Brussels is over-regulating.
“Since Trump is ready to swallow a number of jokes… if we can tell him, ‘Donald, thank you very much, thanks to you we’ve tidied things up a bit,’ why not?” asked Pascal Lamy, former EU trade commissioner and head of the World Trade Organization.
To pull the struggling European industry back from the brink, Commission President Ursula von der Leyen has made deregulation (or “simplification”) a central goal of her second term.
In less than 12 months, the Commission has drafted plans to dismantle many of the bureaucratic hurdles created during her first term, covering nearly all areas of EU law, from defense and agriculture to digital rules and the environment.
Initially, the logic was simple: fewer rules would be good for European companies trying to maintain their competitiveness against US and Chinese rivals.
Now, the simplification effort is seen as a diplomatic gesture to smooth relations with Washington, after Trump made it clear that US companies should not have to adhere to European rules he claims are discriminatory.
Under the trade deal von der Leyen signed at Trump’s Scottish golf resort in July, the Commission had pledged that its green rules would “not impose excessive restrictions on transatlantic trade.”
The list agreed upon by the two sides included Europe’s rules on supply chain due diligence, sustainability reporting, its carbon border tax, and rules to prevent the import of goods produced on deforested land.
All of these have been targeted by the simplification measures initiated by the Commission.
In an interview with POLITICO, Danish Foreign Minister Lars Løkke Rasmussen compared this strategy to a “Kinder Surprise Egg,” the Italian-made children’s confection with a chocolate exterior and a toy inside.
Rasmussen, whose country holds the presidency of the Council, the bloc’s intergovernmental arm, stressed that reducing bureaucracy serves Europe’s “own interests” but also serves the interests of others.
Others say the situation is not so clear. “We cannot say on the one hand that we are ready to pay for America’s strategic protection in terms of tariffs, and on the other hand that we will not change our regulations for it. Not on data, not on the DMA, not on the DSA, nor on anything else that the Americans see as over-regulation,” said Lamy.
The Commission stated that although Washington and Brussels have decided to look for ways to reduce bureaucracy, “This will not lead to a lowering of EU standards or legislation.”
“The EU is determined to defend our fundamental principle; our legislative framework and regulatory autonomy are not up for negotiation,” added Commission spokesperson for trade, Olof Gill.
The letter from the 19 EU leaders intensifies the pressure from the bloc’s leading economies, particularly Macron and Merz, on the EU executive to pursue deregulation.
With the backing of their largest companies, the two leaders have joined the US call for the EU to abandon its supply chain due diligence directive.
But the debate in Europe seems to have convinced the new US ambassador to Brussels, Andrew Puzder, that the EU’s effort to reduce bureaucracy is in its own best interest.
“Germany’s Friedrich Merz and President Macron have said this directive should be repealed… not because it is in America’s interest. They are saying it is in the interest of Germany and France,” Puzder said at an event in Brussels, referring to the supply chain rules.
National calls for a significant reduction in EU rules have also drawn criticism from EU decision-makers who do not want trade negotiations or corporate interests to derail the bloc’s green agenda.
“Let no one be mistaken, we will not lower these standards because there is no competitiveness in a race to the bottom,” said Teresa Ribera, Spain’s Minister for the Ecological Transition.
Diplomacy
South Korea pulls part of embassy staff from Ukraine amid POW dispute
The South Korean government has decided to withdraw part of its embassy staff from Ukraine.
According to the Yonhap news agency, Foreign Ministry spokesman Park Doo-sun cited the Kyiv administration’s failure to take “positive steps” in the dispute that began with the leak of information concerning the handover of North Korean prisoners of war as the justification for the move.
The spokesman also listed the ongoing threat of air strikes, which complicates the safety of diplomats, among the reasons.
Following the withdrawal of part of the personnel, essential diplomatic contacts will continue under the leadership of the charge d’affaires ad interim to Ukraine. All consular staff tasked with protecting South Korean citizens will remain in Ukraine.
Prior to this move, the Seoul administration decided on 8 October to withdraw its ambassador. The Foreign Ministry stated at the time that it was ready to continue consultations with Kyiv to resolve the emerging issues constructively.
Tensions between the two countries began with a speech delivered by Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in September.
Zelenskyy announced that two captured soldiers from the North Korean army had been handed over to South Korea.
South Korean President Lee Jae-myung, meanwhile, accused Kyiv of breaching a confidentiality agreement.
Lee said the disclosure of this information endangered the prisoners’ families and stability on the Korean Peninsula.
Seoul expects a public apology
Dmytro Lytvyn, an adviser to the Ukrainian president, denied the existence of a confidentiality agreement.
The South Korean Foreign Ministry summoned Ukrainian Charge d’Affaires Andriy Veshkin on 28 September and issued a note of protest against Lytvyn’s remarks.
President Lee Jae-myung warned in a statement on 2 October that they would take additional measures against Kyiv if Ukrainian authorities did not acknowledge the agreement and make a public apology. Lee stated that Ukraine itself had initially requested that the transfer of the prisoners be kept confidential.
Ukrainian Foreign Ministry spokesman Heorhii Tykhyi said the dispute stemmed from differing interpretations of the confidentiality regime.
Tykhyi noted that Seoul, based on its constitution which recognises the entire Korean Peninsula as its own territory, requested that the prisoners be handed over “like its own citizens”.
Describing the handover as a “gesture of goodwill”, Tykhyi stated that they were conducting closed-door negotiations to resolve differences of opinion.
Ambassador Park Ki-chang returned to Seoul on 10 October. According to a report by The Korea Times newspaper citing the ministry, recalling the ambassador served as a diplomatic protest against the leak of information regarding the prisoners.
The newspaper wrote that South Korea had last taken a similar step in 2008 by withdrawing its ambassador to Japan.
Moscow warned foreign diplomats
On 3 October, the Russian Foreign Ministry reiterated its warning to foreign nationals, including diplomatic mission staff, against remaining in Ukraine.
The ministry recalled its advice to leave Kyiv, citing ongoing strikes against military targets.
The ministry noted that those who failed to heed the warnings would bear responsibility for the potential consequences.
Kremlin spokesman Dmitry Peskov said in a statement on 24 September that they had no information regarding Kyiv handing over two North Korean prisoners of war to Seoul.
Peskov, noting that prisoner matters fall under the authority of the Defence Ministry and intelligence services, said, “Contacts through the special services are continuing.”
Diplomacy
Ex-BND head Hanning tied to former Mossad chief amid spy inquiry
August Hanning, who led Germany’s Federal Intelligence Service (BND) between 1998 and 2005, was arrested on 6 October on allegations that he obtained roughly 2,000 classified agency documents and used them during contacts with intelligence officers from a foreign state.
Accused of high treason and espionage on behalf of a foreign intelligence agency, the former spy chief is alleged to have procured the documents from former BND employee Manfred D.
Prosecutors stated that the leaked records included internal briefing notes presented to senior German officials, though the Berlin government has not yet publicly disclosed which country received the classified data.
According to an exclusive report by Jake Green for The Cradle, seized email exchanges revealed extensive ties between the arrested Hanning and former Mossad director Danny Yatom.
The correspondence shows that the two former intelligence directors built an ongoing network of contacts following their public service, combining commercial ventures, efforts to secure political influence, and intelligence links.
This dynamic has triggered debate that using personal connections and official access for private gain has left Germany’s intelligence apparatus vulnerable.
Intelligence notes for 10,000 euros and campaign proposals
According to the reviewed emails, Hanning told Yatom in a 2018 message that he could prepare an “overall assessment based on information obtained from senior German officials and intelligence agencies” concerning an unidentified candidate.
The former BND head committed to completing the report by 13 July in exchange for 10,000 euros.
Contacts between the two men subsequently expanded to cover domestic political processes in Germany. Ahead of the September 2021 federal election, Yatom asked Hanning to approach leading candidates.
Describing CIY Global as a “political campaign company”, the former Mossad chief noted that he aimed to introduce its capabilities to German politicians, and he mentioned his intention in the same exchange to transfer documents concerning a cybersecurity firm.
Cybersecurity partnership and surveillance operations across Europe
The partnership between Yatom and Hanning reached beyond political lobbying initiatives into the cybersecurity sector.
Hanning reportedly served as a consultant for World Health Energy Holdings, a cybersecurity company linked to Yatom.
Firms of this type, established or managed by former intelligence personnel, provide commercial platforms on the international market for Israeli-origin surveillance, cyber intelligence, and political influence capabilities.
The operational presence of private Israeli-based surveillance technologies across Europe has recently entered judicial records through scandals in Poland, Spain, and Greece.
Polish prosecutors announced on 12 October that data collected under the previous government via Pegasus spyware against political opponents had been transferred out of the country, adding that manufacturer NSO Group maintained access to the technical infrastructure.
In Spain, the 2022 CatalanGate investigation established that at least 65 people, including politicians, lawyers, and civil society representatives, were targeted using Pegasus or Candiru software, with Citizen Lab researchers publishing strong evidence linking the operation to Spanish authorities.
In Greece, the surveillance operation targeting journalist Thanasis Koukakis and Member of the European Parliament Nikos Androulakis was determined to have used Predator software, linked to Intellexa, a company founded by former Israeli intelligence officer Tal Dilian.
In the German espionage investigation, the traffic between Hanning and Yatom involving paid reporting, contacts with electoral candidates, and commercial partnerships does not yet provide conclusive legal evidence regarding the final destination of the roughly 2,000 classified documents.
Nevertheless, the disclosed correspondence gives German investigators a concrete line of inquiry to assess whether classified state secrets reached commercial networks tied to Israeli intelligence.
Diplomacy
Trump dismisses US envoy to Greece Kimberly Guilfoyle
US President Donald Trump has dismissed Kimberly Guilfoyle, the US ambassador in Athens, following serious press reports concerning her conduct.
White House Press Secretary Katie Zacharia told reporters during her first briefing that Guilfoyle had been asked to resign.
“She was doing a good job, but we didn’t like what we read in the press,” Trump said. “She was not a member of my family. I think she dated my son a long time ago.”
In a social media post, Guilfoyle stated: “These claims are unfounded, and I will resolutely defend my name, reputation, and integrity.” She added that she was particularly proud of the embassy’s work.
According to Kathimerini, her removal came as no surprise in Washington. Days of successive disclosures and vigorous exploitation of the matter by Democrats had been inflicting political damage on the White House ahead of the sensitive midterm elections.
The US State Department was instructed not to comment, with crisis management transferred entirely to the White House.
Reports indicate that most of the president’s team swiftly favoured Guilfoyle’s dismissal, while Secretary of State Marco Rubio was reportedly uneasy with the demonstratively warm public welcome she had staged for him.
Democrats on the House Foreign Affairs Committee have called for an investigation.
“Her resignation does not absolve her of responsibility,” the lawmakers wrote, adding: “While American families struggled to make ends meet, she used her position as a Trump administration official to enrich herself.”
Chargé d’Affaires Josh Huck will assume ambassadorial duties until a successor is chosen.
Meanwhile, Guilfoyle’s departure is expected to cause delays in agreements between Greece and the US.
These include the so-called “Rubio package”, comprising approximately $4 billion in arms deals finalised only days before the secretary of state’s arrival.
Several procedural steps still remain before the contracts can be signed.
In Athens, opposition parties are demanding answers. Dimitris Mantzos of PASOK called for a detailed briefing on the agreements reached during Rubio’s visit.
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