The European Commission has inaugurated the EastInvest initiative, which aims to mobilize up to 28 billion euros for the development of regions bordering Russia, Belarus, and Ukraine. Simultaneously, a dispute over the Emissions Trading System (ETS) is escalating in Brussels. Italy and France are demanding a thorough reform, arguing that current mechanisms excessively burden industry. Meanwhile, the European Central Bank signals stabilization of inflation in the eurozone at 2% in the medium-term perspective.

EastInvest Fund for the East

The program worth 20-28 billion euros will support border regions of Poland, Finland, the Baltic countries, Slovakia, Hungary, Romania, and Bulgaria.

Italian Offensive Against ETS

Minister Adolfo Urso demands suspension of the EU Emissions Trading System, calling it a harmful tax.

ECB on Price Stabilization

Christine Lagarde forecasts a return of inflation to the 2% target in 2026 and announces she will remain in her position until the end of her term.

Exemptions from US Tariffs

Pharmaceutical, energy, and aviation products from the EU are to be exempt from the latest punitive tariffs introduced by Washington.

European Commission President Ursula von der Leyen ceremoniously inaugurated the EastInvest program, a strategic investment platform aimed at strengthening the eastern flank regions of the EU. This initiative, with a budget of 20 billion euros (with the potential to mobilize up to 28 billion euros including private capital), aims to stimulate economic growth in nine member states, including Poland. The program focuses on renewable energy sectors, agriculture, and modern forestry management, which is expected to create new jobs and increase the resilience of border areas adjacent to conflict zones. At the same time, during a meeting of the EU Council on Competitiveness, a diplomatic dispute erupted over the ETS system. Italian Minister Adolfo Urso described the mechanism as a "tragic mistake" and demanded its suspension until a deep reform is carried out. According to Rome, EU charges for carbon dioxide emissions act as an additional tax that drastically reduces the competitiveness of European enterprises on the global market. Similar concerns were expressed by European Commission Vice-President Stéphane Séjourné, suggesting that the system must regain its pro-investment character, rather than being perceived solely as a fiscal burden. Sweden took an opposing stance, warning against undermining the foundations of EU climate policy. The economic situation of the community was also commented on by the head of the ECB Christine Lagarde. During a hearing in the European Parliament, she emphasized the effectiveness of anti-inflation measures to date. The bank predicts that inflation, which reached a record 10.6% in 2022, will stabilize at 2% by the end of 2026. Lagarde also firmly denied rumors of her premature resignation, declaring her intention to complete her term ending in October 2027, especially in the context of work on the digital euro. The Emissions Trading System (ETS) was introduced in 2005 and has since undergone several phases of reform, becoming the world's largest market for greenhouse gas emission allowances, supporting the goals of the Kyoto Protocol and the Paris Agreement. In transatlantic relations, there has been a slight easing after signals from Washington regarding tariffs. The European Commission informed that the aviation, pharmaceutical, and energy sectors will remain exempt from the new 10% import rates introduced by the Donald Trump administration. However, Brussels still demands full operational clarity regarding US compliance with the July agreement limiting the tariff ceiling to 15%, indicating that some goods may currently be charged above this limit. „Eastinvest is a €20 billion programme designed specifically for the eastern border regions. It will be implemented over the next two years and will benefit these regions by creating new jobs.” — European Commission President Ursula von der Leyen

Mentioned People

  • Ursula von der Leyen — President of the European Commission, promoting the EastInvest fund.
  • Christine Lagarde — President of the European Central Bank, commenting on inflation and the digital euro.
  • Adolfo Urso — Italian Minister of Enterprise, main critic of the ETS system.
  • Raffaele Fitto — European Commission Vice-President, initiator of the EastInvest program.