BERLIN 🇩🇪
Finance Minister Lars Klingbeil's (SPD) draft budget has drawn criticism from credit rating agencies over its reliance on borrowing. The government plans to take on €204 billion in new debt next year, with cumulative borrowing projected to exceed €1 trillion by 2030. Scope warned the borrowing could undermine growth and public finances if it substitutes for existing spending or if investment is delayed, while S&P said Germany risks a credit downgrade if the fiscal programme fails to lift economic growth. – Björn Stritzel
MADRID 🇪🇸
Spain is expected to come under renewed pressure at the NATO summit in Ankara over its refusal to commit to the alliance's 5% defence spending target, despite increasing military expenditure and meeting capability goals. Pedro Sánchez insists Spain can fulfil NATO commitments while spending about 2.1% of GDP on defence. The stance, alongside Madrid's refusal to allow US bases to be used for operations in Iran, risks friction with Washington. Read the full story. – Charles Cohen
BELGRADE 🇷🇸
Serbia’s parliament is expected to vote on multiple EU-linked reforms as reports suggest some EU states are pushing back against opening Cluster 3 in the country’s accession talks. Serbian EU Integration Minister Nemanja Starović said opening the cluster was long overdue and would help curb anti-EU sentiment. President Aleksandar Vučić questioned the bloc’s commitment to enlargement, while EU rapporteur Tonino Picula urged the European Commission to suspend Growth Plan funding, describing the situation in Serbia as “extremely bad.” – Bronwyn Jones
DUBLIN 🇮🇪
Ireland's lower house of parliament on Tuesday approved legislation to ban imports of goods from Israeli settlements in the occupied Palestinian territories, advancing one of Europe's most far-reaching trade measures over Israel's occupation. The bill, which now moves to the upper house, covers goods from settlements outside Israel's internationally recognised borders. The government said it was drafted in line with the International Court of Justice's 2024 advisory opinion. – Christina Zhao
TALLINN 🇪🇪
Estonia has signed a drone cooperation agreement with Ukraine, alongside similar deals with Denmark and the Netherlands, Volodymyr Zelenskyy announced at the NATO summit in Ankara. The agreements see Kyiv provide drone technology blueprints in exchange for royalties, investments and military hardware, as Ukraine expands defence partnerships built on its battlefield drone expertise. – David Mac Dougall
PRISTINA 🇽🇰
European Parliament rapporteur for Kosovo Riho Terras urged the country’s political leaders to form functioning institutions during a visit to Pristina, warning another “lost year” would undermine its EU ambitions. Terras told Euractiv that fully functional institutions are a prerequisite for Kosovo to advance towards candidate status and called on both the governing party and the opposition to “take steps towards each other.” – Bronwyn Jones
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