Connect with us

Europe

The German economy: Is Europe’s economic flagship falling apart?

Published

on

Germany’s Green Economy Minister Robert Habeck issued an unusual warning last month. If Ukraine’s gas transit agreement with Russia was not extended after it expires at the end of next year, Germany would be forced to reduce or even shut down its industrial capacity.

Also deputy chancellor, Habeck delivered the stark warning at an economic conference in eastern Germany. The venue was significant: The Alternative for Germany (AfD) seemed to be in the lead among eastern voters, and one of the main things that attracted voters to the party was the fact that the ‘German economic miracle’ had not really worked there. According to Habeck, policymakers should avoid ‘making the same mistake again’ by assuming that the economy would not be affected without measures to secure energy supplies.

Growth data: Alarm bells ring in the manufacturing sector

It is widely accepted that Germany, Europe’s number one economically, is in a difficult situation due to the war in Ukraine, sanctions against Russia, the energy crisis and ‘protectionist’ policies in the US.

For example, the German economy has technically been in recession for two quarters consecutively. According to data released today (July 24), the German Composite PMI Manufacturing Index declined for the third consecutive month, falling to 48.3 from 50.6 in June. The index entered the contraction zone below 50 for the first time since January. Manufacturing production levels fell at the fastest pace since May 2020 as demand for goods fell sharply.

The service sector also lost momentum, with growth hitting a five-month low. Across the sector, new business declined again, leading to the sharpest drop in total new business inflows in more than three years. Customer hesitancy, destocking, high inflation and rising interest rates are cited as factors contributing to the decline in demand for both goods and services.

The pace of job growth across the private sector in Germany slowed significantly in July and the overall rate of job creation was the weakest in almost two and a half years. Hiring slowed in the service sector, while payrolls in the manufacturing sector fell marginally.

The unemployment rate is likely to continue to rise as manufacturing employment declined and the service sector reduced hiring. Moreover, the service sector experienced an increase in input and output prices in July, postponing hopes for a rapid slowdown in inflation until next spring. The manufacturing sector, on the other hand, saw a moderation in the increase in input costs.

Industry lobby pessimistic

It is clear that German industrialists are making the most noise in the debate on ‘deindustrialization’ in Germany.

The Federation of German Industries (BDI), for example, says that not only large companies but also SMEs are planning to move some of their operations outside Germany.

“Many businesses headquartered in Germany are doing well globally, but they are struggling with operations at home,” BDI President Siegfried Russwurm told CNBC, citing “bureaucracy and slow management” as additional pressures companies face in the current climate. Russwurm said that the German economy will also be flat in 2023, with his country ‘lagging behind’ if global GDP grows by 2.3 percent.

Automotive sector shrinks

Things are not going well in the automotive sector, perhaps Germany’s most important industry.

The sector has shrunk significantly compared to the pre-COVID-19 period. According to data cited by Handelsblatt, Volkswagen, Audi, BMW and Mercedes-Benz alone produced half a million fewer passenger cars on their continent between January and May 2023 compared to the same period in 2019. This corresponds to a decline of almost 20 percent.

COVID-19 lockdowns and a shortage of semiconductors and wiring harnesses had slowed car production between 2020 and 2022. At that time, demand exceeded supply, and manufacturers were able to charge high prices and compensate for production losses with the help of short-term pandemic allowances.

After the pandemic, supply chains were now considered to be largely intact. The industry therefore expected a strong rebound in production for 2023. However, the latest data suggests that this expectation was too optimistic.

Chinese competition throws Germans off balance

The rapid entry of China, the new player in the automotive sector, into the European market is also worrying Germany. Last October, a deal made by the German car rental company Sixt worried the Germans: Sixt signed a deal not with a European or German company, but with the Chinese carmaker BYD to buy 100,000 electric cars in the coming years.

News that Chinese carmakers such as BYD and NIO have started selling their vehicles in European markets has raised questions about the future of German manufacturers. Last May, for example, Germany’s largest tabloid, BILD, headlined “Chinese cars flood Europe,” referring to the rapidly growing market shares of the new suppliers.

There are no German companies among the top 10 companies dominating the electric car market in China. The share of German companies in the world’s largest automotive market is still 19 percent, but when it comes to electric vehicles, it is around 5 percent.

In fact, a survey conducted by the Association of German Engineers (VDI) and published on May 25 revealed that 55% of Germans do not think that “the best cars will still come out of Germany in 10 or 15 years”.

Only 12% said they thought this was definitely the case, while 33% said they believed it was likely but not certain.

The gap between inward and outward investment is widening

A decline in manufacturing, slowing consumer spending and weak export growth, combined with high inflation and rising borrowing costs, have caused the German economy to shrink in the last two quarters.

Added to this are investment problems. Citing OECD data, the Cologne-based German Economic Institute said the gap between German companies’ outward investment and inward business investment in 2022 will be the largest on record.

Germany’s ability to attract business investment fell sharply last year. More than 135 billion euros in foreign direct investment (FDI) went abroad, while only 10.5 billion euros came into the country.

The institute’s report says that 70 percent of German companies’ outward investments went to other European countries, making “the collapse of investment in European neighbors particularly worrying. According to the Institute, many of Germany’s problems are related to its own internal failures: high corporate taxes, excessive bureaucracy and poor infrastructure. We note for the moment that these findings are perfectly in line with the criticisms coming from Europe’s ‘libertarian’ right-wing movements.

US ‘declaration of war’

The warnings of a politician belonging to the Greens, one of the most prominent defenders of American interests in Germany, may seem strange, but Habeck’s warnings did not stop with his words at the beginning of this article.

“[Americans] want to own semiconductors, they want the solar industry, they want the hydrogen industry, they want electrolyzers,” he told a conference in June, and said of the government subsidies the Biden administration has introduced under the Inflation Reduction Act (IRA), “It’s like a declaration of war.”

If the Financial Times (FT) is to be believed, calls for retaliation against the US are growing in Germany. A senior German official told the FT, “People came to the WTO. So I said: we are in the middle of a war. Now is not the time to fight with our biggest ally,” he told the FT.

‘Deindustrialization’ or ‘recalibration’?

When it comes to ‘green transformation’ and ‘independence from China and Russia’, it is inevitable that the Euro-Atlantic world, led by the US, will make a political move.

There is a major restructuring going hand in hand with monopolization: The unity of state-economy is being reinforced and the lines between capital and the state are blurring.

German Green Minister Habeck made this point very clearly at the BDI Industry Day conference: “In my view, Germany is an attractive location for both new and existing companies. Of course, the materials industries are under pressure as a result of high energy prices, but there are political decisions to be made.”

At this point in the world capitalist system, we are once again entering a period of intensified ‘political economy’. Statements by US National Security Advisor Jake Sullivan and European Central Bank President Christine Lagarde have signaled that a global economic policy dependent on ‘geopolitical’ goals is on the horizon.

Germany is part of this world and the implementer of a series of political decisions ranging from ‘green transformation’ to ‘de-risking’. Indeed, initial anger at the US IRA has given way to ‘keeping up’. The EU, Japan and South Korea have introduced subsidies for the technology and clean energy sectors to attract new investment or prevent more companies from moving to the US. “If we don’t keep up, they will have [key sectors] and we won’t,” Habeck said. That’s the bitter truth,” Habeck said, suggesting that even an acceptance is accompanied by ambition. Both German monopolies and foreign companies with manufacturing investments in Germany are warning Berlin and Brussels to create an alternative to the IRA. The new stage of monopoly-state integration does not necessarily entail ‘deindustrialization’: ‘traditional’ industries are declining, while ‘new-green’ industries are growing with state subsidies. Gunter Erfurt, CEO of Meyer Burger, a Swiss solar technology company with three factories in eastern Germany, praised the IRA and its subsidies for clean technology companies, saying: “Unlike us Europeans, Americans have realized that solar technology is not just a commodity that you can buy from a random supplier at the best price, it risks becoming a plaything of geopolitics. Everyone needs it for the energy transition.”

Indeed, in May, Swedish battery maker Northvolt committed to building its next factory in Germany after Berlin pledged to pour hundreds of millions of euros into the project. The US and the IRA almost won this race. But Berlin managed to hold on to the Swedish giant with the Temporary Crisis and Transition Framework (TCTF), which turned out to be not so temporary after all. The TCTF framework is now also being used to help solar companies. At the end of June, Habeck’s ministry asked for declarations of intent for a new subsidy program for companies planning to manufacture solar modules or components or process the critical raw materials needed to make them.

Also in May, the German government announced plans to set aside about 4 billion euros ($4.4 billion) each year to subsidize electricity prices for energy-intensive industries in an effort to protect some businesses from high costs. Habeck says they want to keep industry in Germany, and the electricity subsidies are aimed at that.

German companies can profit from ‘green transformation’

German central bank governor Joachim Nagel also said on April 13 that Germany’s energy crisis was ‘more or less solved’ and that the country had the ‘inner strength’ to recover from the double shock of the pandemic and the war in Ukraine.

“German industry has a good capacity to deal with the situation … and I believe they will overcome it and get back to the levels we saw before the pandemic,” Nagel said.

What’s more, Europe’s ‘green tech’ exports, while still behind China, are still ahead of the US. Germany, too, appears to be on its way to catching up with the US (its global export market share of ‘low carbon technologies’ is around 12 percent, compared to around 14 percent in the US). It should also be noted that German companies entering the US market stand to gain.

We should especially note the comfort of machine builders and equipment manufacturers. New factories are being built all over the US thanks to IRA subsidies. It is very difficult to build a factory in North America without European equipment and especially German machinery.

One of the beneficiaries is ebm-papst, a manufacturer of motors and ventilation systems based in Mulfingen in southwest Germany. The IRA has boosted demand for the company’s cooling fans for electric vehicle chargers and megapack battery storage systems.

“The IRA is an opportunity for everyone,” says Mark Shiring, CEO of the Americas for ebm-papst’s Air Technology Division. His company is poised to benefit from the planned rollout of high-speed electric vehicle chargers across the US.

German financial power ready for incentives

Germany and Europe are lagging behind the United States in this regard, but the expansion of subsidy schemes and the loosening of bureaucracy are likely, especially in a country as financially strong and export-dependent as Germany. US chip giant Intel has announced plans to invest 17 billion euros in two new factories in the eastern German city of Magdeburg. The German government had promised to subsidize the project to the tune of €6.8 billion. Intel then asked for more, citing high energy costs. And it got what it asked for: The government agreed to increase the subsidy level to 9.9 billion euros, and Intel announced that it was increasing its investment volume from 17 billion euros to 30 billion euros.

Before the 2000s, Germany was already being called the ‘sick man of Europe’ because of low growth rates and high unemployment. It is clear that part of the clamor for ‘deindustrialization’ or ‘economic decline’ comes from the ‘left-behind’ sectors of capital. Moreover, with the war in Ukraine, the German defense sector has received a significant infusion of blood. Both arms companies and their related industries have been enjoying unprecedented share rallies since February 2022. The EU’s efforts to reorganize its economy according to the war will also accelerate the integration of some monopolies into the state and show that for them ‘deindustrialization’ is not a reality at all.

Those who can be dismissed

For example, Ingeborg Neumann, President of the German Textile Industry Association, said in his speech at the BDI event, “Energy costs, labor shortages, bureaucracy; it is no longer attractive for us to produce in Germany.” First, the share of textiles in the German economy has been declining since 1998. While the sector is still an important source of employment, it could be discarded or outsourced to other nearby countries, for example in Central and Eastern Europe. Second, the problems listed by the sector representative can somehow be solved or mitigated: Re-establishing ties with Russia; attracting migrant labor; restructuring the state to make it easier for capital; new incentives for export markets… Moreover, the fact that export-oriented manufacturers are struggling should not prevent us from seeing the bigger picture: while the German economy has struggled recently, the Dax index, the country’s 40 largest listed companies, has risen by 20% in the past year to an all-time high. The German economy is still dominated by the services sector and this divergence between services and manufacturing is expected to continue.

Chemical conglomerates like BASF are making losses and scaling back their German operations, that’s true. But the divergence itself does not necessarily mean that ‘the economy is doing badly’. For example, Maria Ferraro, Chief Financial Officer at Siemens Energy, said, “We are now seeing a revival in the market with real momentum. We have an overflowing order book,” she said. Spending on R&D is fourth in the world, behind the US, China and Japan. According to the World Patent Office, about a third of all European patents come from Germany. Much of the innovation power is embedded in large companies such as Siemens and Volkswagen and focused on well-established industries. The following sectors stand out in patent applications respectively: Transportation; Electrical machinery, equipment, energy; measurement; mechanical components; computer technology. Compared to other G7 partners, Germany is still a country where the manufacturing industry plays an important role. Bloomberg also points this out in an analysis and points out that the giant German banks still ‘dwarf’ those on Wall Street. The combined market capitalization of Deutsche Bank and Commerzbank is less than a tenth of that of JPMorgan!

The German problem and the AfD

Almost 20 years ago, Germany overcame its reputation as the ‘sick man of Europe’ with an ambitious package of ‘labor market reforms’ that ushered in a period of sustained prosperity, driven by strong demand for its machinery and automobiles, especially from China. Germany exported far more than it bought. Now, the ‘divergence’ from Russia and China signals a new situation. The rise of the AfD can also be explained by the difficulty of ‘exporting Germany’ in adapting to the new world. From the creation of new economic zones within the EU to the ‘controlled dismantling’ of the EU, there are a number of policy proposals to overcome the difficulties on the establishment front. SMEs, the Mittelstand, an important component of the German economy, are the biggest bearers of the cry of ‘deindustrialization’. We will analyze the AfD phenomenon from this perspective in the next article.

Europe

Hungary’s new PM Magyar vows absolute ban on illegal migration, challenging Brussels over fines

Published

on

Hungary’s newly elected Prime Minister Péter Magyar has pledged to block all illegal migration, reject European Union quotas, and challenge Brussels’ punitive fines, signaling a highly restrictive border policy even as he vows to restore ties with European partners.

In his first interview with the German newspaper Frankfurter Allgemeine Zeitung since taking office, Magyar outlined his administration’s strategic roadmap. He addressed the smear campaigns directed against him by the former government of Viktor Orbán, relations with the EU, migration policy, and the economic necessity of maintaining energy ties with Russia.

Reflecting on his transition to power, Magyar noted that the Orbán administration targeted him, his family, and his colleagues during a highly polarized campaign.

“I have known Viktor Orbán for a long time. What happened during the election campaign was no surprise to me, even if it might be difficult to imagine in other countries,” Magyar said. “The mudslinging campaign was not just directed at me personally, but also against my family, my colleagues, and my friends. However, those who faced each other were not Hungarians against Hungarians; it was Viktor Orbán and his vassals standing against the Hungarian nation. One of our most important campaign promises is that we will do everything we can to reunite the Hungarian nation.”

Despite running a pro-European campaign to secure victory, Magyar acknowledged fundamental disagreements with Brussels, particularly on migration. He argued that former Prime Minister Orbán’s hardline stance during the 2015 European migrant crisis was correct.

“My government will pursue an extremely strict and decisive policy regarding illegal migration,” Magyar said. “You can be as angry with Viktor Orbán as you want—and no one has criticized him more than I have—but when the migration crisis began in 2015, he was right. Many member states have now admitted they made wrong decisions at the time. In any case, we will protect our homeland, our country’s borders, and the external borders of Europe.”

“Hungary will not accept any illegal migrants”

Responding to whether Hungary would comply with newly implemented EU asylum rules, which mandate member states to conduct processing procedures at external borders, Magyar delivered a firm refusal regarding quotas and penalties.

“I can only say this: Hungary will not accept any illegal migrants. We will not pay any penalties for this either,” Magyar said. “However, we will help protect Europe’s external borders, whether in Greece, Malta, or Italy. The 2015 migration crisis must be a lesson for Europe. The most important duty of European politicians is to protect the safety of the people. I believe there are many ways to stop illegal migration without violating European Union rules. It is simply a matter of being able to negotiate.”

Magyar also dismissed the current relevance of a European Court of Justice ruling imposing a daily fine of 1 million euros on Hungary for failing to implement EU asylum procedures, arguing the decision is outdated.

“The court’s decision was made at a very different time and under a different legal framework,” Magyar said. “Today, we are in a completely different situation. This decision no longer reflects today’s reality. Today, there are many countries acting just like Hungary, yet this European Court of Justice decision does not apply to them. I find this incredibly unfair. In order to protect our borders and avoid having to pay the daily fine of 1 million euros, we will hold talks with our European partners and find a common solution.”

While acknowledging that the judicial ruling is final and cannot be appealed, Magyar described the financial burden on Hungarian citizens as unjust.

“The decision cannot be appealed. We are looking for new rules and opportunities to avoid paying the fine,” he said. “It is unfair and disproportionate that the people of Hungary must pay a fine of 1 million euros every day. Similarly, it is a great injustice that while other member states receive these funds, Hungary has been provided with no financial resources for the wire fence it constructed to protect the external border of the European Union.”

“Exclusion only makes the far-right stronger”

Magyar strongly opposed pushback from member states—particularly pressure from Germany—to transition EU foreign policy decision-making from unanimity to qualified majority voting, defending the preservation of national sovereignty.

While rejecting the confrontational rhetoric favored by Orbán toward Brussels, Magyar emphasized the importance of compromise among sovereign states.

“I served as a diplomat within the European Union for a long time, and I know very well how difficult it is to reach a consensus among 27 countries. Yet, most of the time, this is achieved,” Magyar said. “Orbán always said, ‘We must defeat Brussels.’ I do not think that is the point. The point is to understand each other, to persuade, and not to try to defeat one another. People do not want a United States of Europe; they want a European Union based on strong member states. For this reason, I do not support transitioning to a majority voting system in many areas instead of the unanimity rule at this stage. We will negotiate and find a middle ground.”

Addressing the political rise of far-right parties across Europe, particularly in France and Germany, Magyar criticized traditional political elites for being disconnected from public anxieties and relying on political moralizing.

He warned that isolating these populist movements is counterproductive.

“I do not like labels like far-right or far-left. I do not like ideological wars,” Magyar said. “People deserve more than politically correct speeches where ideological labels are slapped on one another. I have no intention of interfering in the internal affairs of other member states, and I will not do so; on this point, I differ from Orbán. However, I observe that some countries make mistakes in combating extremist parties. In many countries, politicians do not act honestly. They do not understand people’s fears and expectations, and they do not dare to talk openly about problems and face them. They use the language of political correctness and, at the end of the day, fail to grasp reality itself. These are precisely the mistakes that certain groups exploit. Excluding these people and these parties, building a wall of isolation around them, is not a solution on its own. Exclusion only makes these forces stronger. In many countries, these mistakes have been recognized, but not yet everywhere.”

Asked if this critique applied to Germany, Magyar maintained his criticism of governing establishments.

“In many countries, the political, media, and economic elites protect their own positions and do not always address the real fears and problems of the people. But the public does not forget this. That is why what we need is honesty, honesty, and once again, honesty,” he said.

On the debate over whether conservative factions in the European Parliament should cooperate with the Alternative for Germany (AfD) party, Magyar shared his perspective on the future strategy of the European People’s Party (EPP), which includes his own party, Tisza.

“In the European Parliament, political forces must always seek a majority, and grand coalitions between the center-left and center-right can function. Germany and Austria are good examples of this,” Magyar said. “However, this does not always work, and that is why the CDU/CSU and the European People’s Party, which includes my party Tisza, may have to make a decision one day. In my view, the European Conservatives and Reformists (ECR) are the natural allies of the European People’s Party. Whether they want to cooperate with the AfD is not my decision to make. However, I believe that talking to one another and listening to the other’s arguments never causes harm. What we accept from each other’s proposals is an entirely separate matter.”

“Europe will partially return to Russian energy after the war”

Defending Hungary’s decision to continue importing crude oil and natural gas from Russia despite the war in Ukraine, Magyar emphasized the country’s landlocked geography and economic constraints.

“The Hungarian people elected me as the Prime Minister of Hungary. My government’s duties include ensuring energy security, security of supply, and the lowest possible energy prices,” Magyar said. “In recent years, Hungary has become one of the poorest and most corrupt countries in the European Union. Three million people live below the poverty line. Our neighbors in the European Union must understand that Hungary is a landlocked country. We are still dependent on Russian oil, and we cannot change this overnight. We have not seen economic growth for years, and we need cheap energy to grow. Of course, we are doing everything we can to diversify our energy resources, but we cannot afford to see our companies’ competitiveness decrease further and Hungarian families’ energy poverty increase. I think Europe will partially turn back to Russian energy resources and lift sanctions when the war ends, because the competitiveness of all of Europe is at stake here. In a future state of peace, no one has an interest in maintaining a new economic and political Cold War. For this, of course, the war must first end.”

While Orbán maintained close ties with American conservative movements and received explicit support from Donald Trump, Magyar indicated that the change in leadership in Budapest would not damage relations with Washington.

“The US is Hungary’s natural ally in NATO and a highly important economic partner. What happened during the election campaign will not change this. We will maintain good relations with every American administration,” Magyar said.

Magyar criticized Orbán’s personal relationship with Russian President Vladimir Putin, arguing instead for a pragmatic, non-ideological approach to Moscow in the post-war era.

“I know the role of Russia in Hungarian history very well. I have not forgotten the years 1849 and 1956. In both periods, Russian troops bloodily suppressed the Hungarian freedom movement,” Magyar said. “But on the other hand, the reality is that geography does not change. We must accept this as it is. Therefore, we must develop pragmatic relations with Russia once the war against Ukraine ends. Nonetheless, it is extremely clear that Russia currently poses a security risk to all of Europe. It is unacceptable that people in Europe must live in fear of Russian sabotage or a Russian attack. That is why this war must end, and we must provide international security guarantees to Ukraine. However, Europe can only develop when normalcy returns, and Russia cannot have an interest in a new Cold War becoming permanent on the continent.”

“We can turn a new page with Ukraine”

Magyar pledged to end the hostile state-sponsored propaganda directed at Ukraine by the previous administration, emphasizing his respect for Ukraine’s territorial integrity and his personal involvement in humanitarian efforts.

“We want to build good relations with all our neighbors, not least because a Hungarian minority lives in each of them. This also applies to Ukraine,” Magyar said. “We have always stated that Ukraine is the victim in the Russia-Ukraine war and that Ukraine has the right to its territorial integrity. When the Russians bombed the largest children’s hospital in Kyiv in the summer of 2024, I immediately went to Kyiv with our volunteers and personally delivered the humanitarian aid of the Hungarian people. Right after the attack, we set off in a 30-year-old Ford Transit and reached Kyiv within 20 hours under air raids and missile bombardments. I did not see any other European politician at that bombed hospital. We are currently holding talks with Ukraine at a technical level, and we are working to reach an agreement within a few days to restore and guarantee the language, education, and cultural rights of the 100,000 Hungarians living in Ukraine. Today, we need to clarify certain matters with Ukraine regarding our minority in that country, and I hope we will achieve this in the coming days. Ethnic Hungarians there currently do not have the opportunity to use their mother tongue in their relations with official authorities. However, if we resolve these issues on the basis of mutual interest, we can turn a new page.”

Magyar cautioned that future security guarantees for Ukraine must be concrete and enforceable, unlike previous international agreements.

“In 1994, the famous Budapest Memorandum was signed, in which the US and other major powers guaranteed Ukraine’s independence and integrity. However, these promises were not kept, because empty slogans are of little use,” Magyar said. “Right now, everything is at stake in Ukraine. A large number of people are dying, and it is possible that this country will lose part of its territory. Therefore, Ukraine needs real, enforceable international guarantees.”

However, the Prime Minister reiterated that Hungary would remain militarily uninvolved in the conflict, stating that arms shipments do not constitute a genuine security guarantee.

“I do not believe that weapons are a security guarantee. Security guarantees can only be provided by the international community,” the Hungarian leader concluded. “Hungary cannot play a decisive role here; this is the work of the major powers. We can provide diplomatic and humanitarian aid, and Hungary can also provide a suitable ground for negotiations.”

Continue Reading

Europe

EU agrees new deportation rules allowing migrant return centers outside the bloc

Published

on

European Union lawmakers and member states have reached agreement on new legislation overhauling rules governing the deportation of asylum seekers.

According to Politico, the agreed text allows asylum applicants whose claims have been rejected to be sent to dedicated return centers established outside the EU.

As a key condition of the deal, measures to establish the return centers are set to be implemented immediately.

The move is said to be of particular importance to the Netherlands and Germany. Other provisions of the legislation are expected to take effect one year later.

The agreement must still receive final approval from both the EU Council and the European Parliament before it can formally enter into force.

European Commissioner for Migration Magnus Brunner said the agreement would help the EU regain control over both those arriving in the bloc and those required to leave it.

According to data from Eurostat, the proportion of migrants denied asylum in the European Union who ultimately leave the bloc remains at around 27%.

“We must give people the feeling again that we have everything under control,” Brunner said.

The new framework grants member states the authority to transfer individuals ordered to leave EU territory to return centers located outside the bloc.

Several member states are already examining the option, while human rights organizations have warned of risks of rights violations and abuse during the process.

The legislation also introduces stricter measures, including home searches, extended detention periods, entry bans, and penalties for individuals deemed security threats or those who refuse to cooperate.

French Member of the European Parliament François-Xavier Bellamy told the publication: “For years, Europe sent the worst possible message: even if you had no right to stay, there was a high likelihood that nothing would happen. That era is ending. If you do not have the right to remain in Europe, you must leave.”

The initiative, however, has faced opposition from lawmakers affiliated with liberal and left-wing groups.

Melissa Camara, a representative of the Greens group, described the agreement as “a legal arsenal serving a xenophobic ideology” and criticized both offshore centers and the detention of minors.

Marta Welander, head of the International Refugee Committee, said the new measures signaled “a troubling new era.”

Welander argued that the rules would normalize migrant raids and increase the risk of people being deported to countries where they could face persecution or torture.

According to available data, the number of migrants living within the European Union reached 64.2 million in 2025. During the same period, the foreign-born population arriving from outside the bloc increased by 2.1 million people annually.

In 2010, the European Union was home to approximately 40 million migrants.

As a result, the migrant population has increased by more than 60% over the past 15 years, while migrants’ share of the EU population has risen to 14.2%.

In December last year, US President Donald Trump said Europe faced the risk of destruction because of the migration policies pursued by European countries.

Trump had previously argued that the continent was facing a wave of migration and that, as a result, Europe was “no longer the Europe it once was.”

Continue Reading

Europe

Anthropic invites EU cybersecurity agency to access Mythos AI hacking model

Published

on

Anthropic has invited the European Union to access Mythos, its powerful AI-powered hacking tool, by sending an invitation to the bloc’s cybersecurity agency.

A European Commission official said the AI company issued the formal invitation following a meeting with the Commission in San Francisco last Thursday, adding that the EU must now establish a mechanism that would allow access to the model under appropriate security safeguards.

Bloomberg reported on Monday that ENISA, the EU’s cybersecurity agency based in Athens, would be granted access to Mythos.

European Commission spokesperson Thomas Regnier said the Commission had held “several productive meetings with Anthropic” and “welcomes the latest developments regarding potential future access.”

Anthropic unveiled Mythos in early April and warned that the model outperformed most humans in identifying and exploiting cybersecurity vulnerabilities.

The disclosure raised concerns that the model could be used to carry out large-scale attacks against critical and sensitive systems if it fell into the hands of cyber adversaries.

European officials were unable to access the cutting-edge cybersecurity AI technology for weeks, prompting urgent calls from European lawmakers and government officials to secure access.

Cybersecurity officials also urged Europe to develop its own version of the technology.

“This latest development is extremely important in helping us gain a clear understanding of the potential risks. We should not forget that Mythos is not an isolated case and that a new wave of powerful models is entering the market,” Regnier said.

An ENISA official said the agency does not currently have active access to the model but is working to make it operational.

The Commission is developing a formal action plan to respond to powerful AI hacking tools.

According to an industry official, the Commission has indicated that it wants to publish the plan before the summer break.

Continue Reading

MOST READ

Turkey