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EU Finance Ministers Push for Digital Euro Framework Amid Disagreements

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Finance ministers across the European Union are under mounting pressure to finalize a legal framework for a digital euro by the end of 2025, but divisions remain over privacy protections, limits on holdings, and the role of non-euro countries.

The push comes after EU leaders earlier this year urged ministers to accelerate talks on the project, seen as crucial to the bloc’s financial autonomy. Throughout July, negotiations in the Council of the EU gathered pace, with most governments backing the Danish presidency’s target of reaching a common position by late 2025.

Yet, several countries argue that more technical groundwork is required before moving forward. Germany’s Finance Minister Lars Klingbeil told colleagues in Brussels that the framework must guarantee “fair compensation models for banks, good distribution conditions, and a high level of privacy protection from day one.”

Other states raised additional concerns. Sweden has insisted the system must not overburden banks outside the eurozone. The Netherlands has pushed for strict holding limits to ensure the digital euro functions solely as a payment tool. Hungary has gone further, demanding a direct say over the issuance of the currency.

At the start of July, European Central Bank (ECB) Vice-President Luis de Guindos reiterated that no launch decision will be made until the legislative groundwork is completed. Both the Council and the European Parliament must adopt the framework before the ECB governing bodies decide whether to proceed, a step that would trigger a preparatory phase of about two and a half years.

De Guindos emphasized the urgency, warning that Europe’s growing reliance on U.S. payment providers threatens its financial independence. “Accelerating progress on the digital euro is essential to reduce our dependence on the U.S., as most electronic payment solutions are American,” he said. Currently, 13 of the 20 eurozone countries lack their own national card scheme, depending instead on international providers such as Visa and Mastercard.

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The recent approval of the U.S. Genius Act, which regulates dollar-pegged stablecoins, has further sharpened concerns in Europe. ECB Executive Board member Piero Cipollone warned in April that Washington’s support for stablecoins could undermine Europe’s financial stability, underscoring the need to strengthen the euro’s role through a digital alternative.

According to the Financial Times, the ECB is still weighing which technology to adopt, including the possibility of using a public blockchain such as Ethereum or Solana. The ECB confirmed to Euronews that it is testing both centralized and decentralized solutions but has not yet made a decision.

Consumer groups also argue that Europe must build its own infrastructure. Anna Martin, head of financial services at the European Consumer Organisation (BEUC), said, “Current geopolitical uncertainties show very clearly the necessity to reduce Europe’s dependency on non-European providers in strategic areas.”

Still, progress in the European Parliament has stalled. A draft report on the digital euro was tabled in February 2024 by German MEP Stefan Berger, but no vote has followed. After Berger stepped down, Spanish MEP Fernando Navarrete took over the file in April 2025. Despite appeals from the ECB to advance the legislation, Navarrete has yet to comment publicly on the delays.

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Spain and Portugal Hit by New Storms, Death Toll Rises

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Spain and Portugal endured fresh storms and torrential rain on Saturday, claiming another life just days after Storm Leonardo caused deadly flooding and widespread damage.

One person was killed in Portugal as heavy rainfall from Storm Marta swept across the Iberian Peninsula. Authorities reported that a 46-year-old member of the emergency services drowned in a river at Campo Maior, in the central Portalegre district, while attempting to cross a flooded area.

The extreme weather forced three municipalities in Portugal to postpone a presidential vote scheduled for Sunday by a week. Storms in recent weeks have already taken a heavy toll: Storm Kristin killed at least five people in Portugal last week, while Storm Leonardo claimed another victim on Wednesday.

Officials warned that the risk of flooding from the Tagus River in the central Santarém region remained at its highest level. Further south, in Alcácer do Sal, floodwaters from the Sado River had receded to the banks, though the city had previously been submerged, forcing residents to evacuate. Alcácer do Sal lies about 90 kilometres south of Lisbon.

In Spain, Storm Marta prompted the closure of dozens of roads as it moved northeast. In Ávila, a snow plough driver died on Saturday after the vehicle plunged down a 20-metre slope at the El Pico pass. According to the Directorate General of Traffic (DGT), more than 100 roads were closed in the early morning, mostly due to flooding, snow, or ice.

The province of Cadiz was the hardest hit, with several roads rendered impassable, followed by Cordoba and Seville. Snowstorms in mountainous regions led to road closures in Granada, Asturias, Salamanca, and Navarre.

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Spain’s State Meteorological Agency (Aemet) said rainfall would ease on Sunday in many areas but persist in some regions, including the Strait of Gibraltar, the Alboran Sea, Andalusian mountain ranges, the Balearic Islands, northeastern Catalonia, and the Cantabrian Sea. Locally heavy showers are expected, with thunderstorms and hail reported in some areas.

Authorities in both countries continue to urge residents to exercise caution, avoid flooded zones, and stay updated on weather alerts. Emergency services have been deployed to assist those affected by rising waters and to prevent further casualties.

The repeated storms across the Iberian Peninsula highlight the ongoing vulnerability of the region to severe weather events in recent weeks, with communities struggling to recover from back-to-back floods and heavy rains.

Spain and Portugal’s governments have stressed the importance of preparedness, especially in flood-prone regions, as meteorologists warn that unsettled weather may continue to affect the peninsula over the coming days.

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German Troops in Lithuania Face Hybrid Threats Amid Rising Tensions With Russia

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The German army brigade stationed in Lithuania is not under direct fire, but troops report facing hybrid attacks, including surveillance, psychological operations, and drone activity, as tensions with Russia persist in the Baltic region.

Soldiers have described unusual incidents, including mysterious phone calls where conversations from hours earlier were played back by unknown callers. “A comrade phones home, speaks for half an hour, and then gets a call from an unknown number. He answers – and hears his own conversation from earlier, recorded and played back,” Joshua Krebs wrote in his book, Inside Bundeswehr, calling the tactic “uncanny.”

Drones have also reportedly been used to monitor sensitive defence systems and exercises involving Germany’s Battletank Brigade 45 in Lithuania. Last year, a Russian reconnaissance aircraft entered Belarusian airspace during the Bundeswehr’s exercise Iron Wolf, raising concerns about Russian surveillance in the region.

Germany’s Inspector General, Carsten Breuer, described such incidents as “proof of the very real threat to Lithuania.” Federal Defence Minister Boris Pistorius echoed the warning during a meeting with his Lithuanian counterpart in Berlin, stressing that hybrid warfare poses a particular concern for Lithuania and the wider Baltic region.

The risks are compounded by Russian incursions into European airspace. In October 2025, two Russian fighter jets briefly entered Lithuanian airspace for approximately 18 seconds before turning back under NATO escort. German Chancellor Friedrich Merz described the incident as a “provocation,” with the aircraft thought to have flown from Russia’s Kaliningrad exclave.

Given the Baltic states’ proximity to Russian territory, the region is under constant NATO monitoring. Germany, Spain, and the UK currently lead the mission to police Baltic airspace, while Germany also supports ground operations, including deploying a mobile air force command post for air surveillance from January to March this year.

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Experts note that hybrid attacks often exist in a legal grey area. Unlike conventional military operations, many hybrid actions, such as surveillance or unmarked troop movements, cannot be directly attributed to a single actor, and international law does not automatically classify them as armed attacks under Article 51 of the UN Charter. The aim is often psychological: to provoke, unsettle, and signal presence without triggering a military response.

Incidents reminiscent of the “little green men” in Crimea have occurred in the Baltics. In December, Russian border guards briefly crossed into Estonia without authorization, prompting diplomatic protests rather than military retaliation. Armed men in unmarked uniforms were also spotted near the Estonian border earlier in the year, reinforcing concerns about Russia’s hybrid strategies.

According to Pistorius, these tactics are part of a broader pattern of Russian pressure. “The threat posed by Russia is felt more acutely in Lithuania and across the Baltic region than elsewhere in Europe,” he said, citing provocative airspace incursions and intelligence-gathering operations as ongoing challenges for NATO forces in the region.

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Greenland Mayor Condemns Comedian’s Flag Stunt Amid Tensions with US

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The mayor of Greenland’s capital has urged media professionals and content creators to act responsibly after a German comedian attempted to hoist the US flag in Nuuk, drawing outrage from local residents.

Bavarian comedian Maxi Schafroth, 41, tried to raise the Stars and Stripes near the city’s cultural centre on Thursday. Passers-by confronted him after he claimed to be a US official. Witnesses reported that locals reacted angrily, and Schafroth left the scene amid disapproving looks. Local authorities subsequently fined him, according to reports.

Avaaraq Olsen, mayor of Kommuneqarfik Sermersooq, the district that includes Nuuk, described the stunt as “immensely harmful.” She said the incident was particularly upsetting for children and families, who have already been anxious over US President Donald Trump’s repeated threats to seize Greenland, an autonomous Danish territory.

“Raising a flag at our capital cultural centre, the flag of a military superpower that for weeks has been implying military force against our country, is not a joke,” Olsen said in a statement. “When you amplify those fears for content, clicks, or laughs, you are not being bold or creative. You are adding to the distress of an already vulnerable population. So, pause before you film. Think before you stage something ‘funny.’ Consider whether your next question or stunt will inform the world or simply make a child cry or a family feel less safe in their own country.”

Schafroth is known in Germany for his work on the satirical programme “Extra Drei,” broadcast by the regional NDR channel, which attracts over one million viewers. NDR expressed regret over the incident in statements to Germany’s Der Spiegel and the Ritzau news agency.

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The stunt comes amid heightened international attention on Greenland following Trump’s long-standing territorial interest in the Arctic territory. Trump described owning Greenland as essential to US national security, claiming without evidence that Russia or China would otherwise seize control. His statements sparked a serious diplomatic crisis, considered the most severe in NATO’s history since the alliance was established in 1949.

Although the US president later backtracked on threats to use force, discussions between Washington, Copenhagen, and Nuuk are ongoing. Greenland’s government has been working to manage the stress and anxiety caused by the situation and to reassure its population that their safety remains a priority.

Local authorities stressed that Greenlanders, particularly children, remain worried over the uncertainty surrounding the territory’s international status. Olsen said the flag stunt, though intended as a humorous act, highlighted the need for content creators to consider the real-world impact of their actions on communities already facing heightened tension.

The incident underscores the lingering sensitivity in Greenland following months of international attention, and the city’s leadership has called for respect and caution in public displays that could inflame fear or insecurity among residents.

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