Brussels – Europe and the Arabs

While national governments wrangle over the size of the European Union’s next seven-year budget, the European Commission is quietly working on another thorny piece of the puzzle: how to distribute funds to regions and farmers, and who will oversee the process. According to Gregorio Sorgi, writing for the *Brussels Playbook*—the European edition of the American outlet *Politico*—Declan Costello, a European Commission official, has been holding meetings with representatives from national and regional governments. The discussions focus on ensuring that funds can be disbursed as soon as the new "Multiannual Financial Framework" (MFF) takes effect on January 1, 2028. This information comes from four officials who spoke on condition of anonymity regarding these confidential talks. Costello heads "SG REFORM," a task force within the Commission’s Secretariat-General that reports directly to European Commission President Ursula von der Leyen.
A new structure: These meetings follow concerns explicitly raised by representatives of regions and cities regarding the Commission’s plan to merge local development funding—known as "cohesion policy"—with support for farmers (which together account for nearly half of the EU’s total expenditure) into a single financial pot managed by national governments. Transferring the responsibility for disbursing these funds to national governments also raises questions about the future role of the Commission department—headed by Executive Vice-President Raffaele Fitto—that has traditionally overseen regional funding.
Regions are particularly concerned about the Commission’s plan to link cohesion funding to the implementation of specific economic reforms, framed within a comprehensive program known as "national and regional partnership plans." Some have warned that funding could be lost if central governments fail to carry out the required measures.
To allay these concerns, Costello explained to representatives of the German states (*Länder*)—during a recent visit to Berlin—that the Commission would not bypass local leaders, nor would it impose reforms that could only be implemented at the national level, according to an official who attended the meeting.
Additional oversight: Meanwhile, Andrey Novakov, a Member of the European Parliament from the European People’s Party (EPP)—who is leading negotiations on this file—has called for stricter measures. He argues that the Commission should withhold funds from countries that cannot demonstrate that they have "involved regional and local authorities" in the drafting of their plans. In a negotiating document on the budget submitted earlier this month, Ireland has already sought to soften the "funding-for-reforms" model proposed by the European Commission. According to three diplomats familiar with the discussions, the European Commission—during a subsequent meeting of EU ambassadors—asserted that the amendments proposed by Dublin would sever the link between EU payments and national-level economic reforms.
Time is running short; meetings between Costello and representatives from national capitals and regions are expected to intensify in the coming months, as the Commission’s end-of-2027 deadline approaches. Commission spokesperson Maciej Berestecki explained to *Playbook* that draft plans—detailing how regions and farmers will receive their financial allocations—must be submitted by 2027 to "ensure that EU funding reaches beneficiaries without interruption, starting in January 2028."
Brief and significant European news:
Italian General Roberto Vannacci—a former paratrooper commander who is challenging Giorgia Meloni from the far right—is deliberately courting the "manosphere," aiming to transform himself into a politically influential force. A recurring nightmare for Merz in the East: The far-right "Alternative for Germany" (AfD) party is seeking to install one of its own as the state premier in Saxony-Anhalt. Members of the Christian Democratic Union (CDU) at the regional level might facilitate this, threatening to cause a major rift within Friedrich Merz’s party.
Who should negotiate with Putin? European governments realize they may soon need to designate an individual to engage with Russian President Vladimir Putin in peace negotiations regarding Ukraine; however, it remains unclear who would be the most suitable person for this task.
Meanwhile, the Kremlin announced yesterday—following a meeting in St. Petersburg between the Russian president and Steve Witkoff, Donald Trump’s special envoy—that Putin is "in principle" prepared to resume trilateral talks with Washington and Kyiv as soon as possible, potentially by next month. These negotiations could take place in Abu Dhabi.
In an interview with the Axel Springer global media network (which includes *Politico*), Czech President Petr Pavel stated that an agreement Trump reached with Russia concerning diesel fuel provided Moscow with "a chance to catch its breath" and hindered efforts toward achieving a ceasefire. Restoring Gas Supplies: During a press conference held yesterday in Strasbourg, Alice Weidel, co-leader of the "Alternative for Germany" (AfD) party, called for a swift resolution to peace talks in Ukraine and for enabling German industry to once again access cheap Russian gas. Max Grera attended the conference.
Confronting the Russians and Bureaucracy: Foreign volunteers who have joined the defense of Ukraine report facing obstacles due to bureaucracy—a situation that could jeopardize Kyiv’s efforts to sustain its resistance against Russia.