The Capitals brings you the latest news from across Europe, through on-the-ground reporting by Euractiv’s media network. You can subscribe to the newsletter here.

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The European news you deserve to read. Welcome to The Capitals by Euractiv.

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In today’s news from the Capitals:

WARSAW

Poland’s PiS MEPs have turned down an offer from Hungarian Prime Minister Viktor Orbán to join his new Patriots of Europe group, deciding instead to accept Italian Prime Minister Giorgia Meloni’s offer to remain in her hard-right European Conservatives and Reformists Group (ECR). Read more.

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BERLIN

Berlin must find way to work with far-right French government, chancellor hopeful says. German conservative leader Friedrich Merz, the favourite to become chancellor next year, said his government would collaborate with a French cabinet led by the far-right Rassemblement national, which might materialise after this week’s French elections, taking heart from the RN’s harsh stance on the German AfD. Read more.

German pressure on EU-China trade outcomes piles up as Commission tariffs kick in. Pressure from Germany to reconsider trade tariffs on China-made electric cars is set to intensify in the coming weeks as member states start negotiating their official stance on the issue, after the Commission confirmed on Thursday that provisional duties kick in from Friday. Read more.

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PARIS

Legislative elections: The great fear of French Diplomats. With the Rassemblement national (RN) inching closer than ever towards taking power in France, many French diplomats fear what having to serve under a far-right government might bring. Read more.

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UK & IRELAND

UK Election: Labour has officially won a majority, helped by surging far-right. The UK Labour Party at 6am (CET) on 5 July passed the threshold of 326 seats, making them officially the winner of the 4 July General Election, bringing to an end 14 years of rule by the right-wing Conservative Party. Read more.

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EUROPE’S SOUTH

ROME

EU Left admits Italy’s M5S on probationary basis. Italy’s Five Star Movement (M5S) has officially joined the European left-wing group, but total acceptance in the group will depend on a six-month probation period of “mutual engagement”. Read more.

Three former prime ministers of Italy say Biden should drop re-election bid. US President Joe Biden must drop his re-election bid or Donald Trump is sure to return to the White House, former Italian prime minister Matteo Renzi said on Wednesday. His views were echoed by two other former Italian prime ministers. Read more.

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MADRID

Spain’s PP suggests deploying army to curb irregular migration. The Spanish government should curb the massive influx of illegal migrants with all the means at its disposal, including the deployment of the military and navy to better control its borders, Miguel Tellado, parliamentary spokesman for the main opposition force, the right-wing Partido Popular (PP/EPP) has said. Read more.

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LISBON

Portuguese government imposes 15% minimum tax on large multinationals. Portugal’s government is moving ahead with a minimum 15% taxation mechanism for multinational and national groups, according to the package of measures approved at Thursday’s cabinet meeting. Read more.

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ATHENS

Poll confirms Greece’s political system is in crisis. A new poll broadcast on Thursday evening showed that an all-time high abstention rate in the recent EU elections was not a coincidence, as Greek citizens feel increasingly disappointed or indifferent about the Mediterranean country’s political system. Read more.

Meanwhile, the EU top diplomat Chief Josep Borrell is going to Greece on Friday and he is expected to visit the EUNAVFOR headquarters in Larissa – the base for the European military operation in response to Houthi engagements with international shipping in the Red Sea.

Greek diplomatic sources said Borell will hold a meeting both with Foreign Affairs Minister Giorgos Gerapetritis, and Defernce Minister Nikos Dendias. On Saturday (6 July) Borell and Dendias are expected on board the Greek frigate “Psara”, which participates in the European Operation ASPIDES and is currently sailing in Djibouti.

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EASTERN EUROPE

BUDAPEST

Hungary’s Orbán travels to Moscow, days after Kyiv trip. Hungary’s Prime Minister Viktor Orbán travelled to Moscow on Thursday to meet Russian President Vladimir Putin, only a few days after his visit to Kyiv, on a trip that earned him stern rebukes from EU officials and diplomats. Read more.

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NEWS FROM THE BALKANS

SOFIA

Bulgaria pays €142 million to companies that jumped in after Gazprom cut-off. The Bulgarian government decided on Thursday to compensate natural gas traders who helped fill the state-owned Chiren gas storage facility with 278 million leva (€142 million) after the sudden cut-off of Russian gas supplies in late April 2022. Read more.

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BUCHAREST

Romanian presidential elections postponed until year’s end. Romania’s governing coalition concluded discussions on the electoral calendar for the upcoming presidential and parliamentary elections on Thursday, according to a press release from the Social Democrats and Liberals. Read more.

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AGENDA:

• EU: Energy Commissioner Kadri Simson meets with Foreign Minister of Argentina Diana Mondino, in Buenos Aires;
• High Representative for Foreign Affairs and Security Policy Josep Borrell visits the EUNAVFOR Operation Aspides (military operation in response to Houthi engagements with international shipping in the Red Sea) headquarters, in Larissa, Greece;

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[Edited by Sarantis Michalopoulos, Daniel Eck, Alice Taylor, Sofia Mandilara]

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