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EU Green Investment Fund Faces Scrutiny Over Potential Reliance on Chinese Clean Technology

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The European Union has launched a €15–20 billion Global Green Bond Initiative aimed at financing sustainable infrastructure projects in partner countries, but concerns are mounting in Brussels that a significant portion of the funding could end up supporting Chinese clean technology suppliers.

The programme, one of the EU’s largest external climate financing tools, is intended to mobilise investment for renewable energy, water treatment and transport projects across developing regions. Planned projects include solar farms in Algeria, wastewater systems in India and light rail infrastructure in the Dominican Republic, with the European Investment Bank (EIB) acting as a key anchor investor alongside other European development institutions.

However, EU officials warn that the structure of the initiative could unintentionally strengthen Chinese dominance in the global renewable technology market. A Commission official familiar with the matter said most of the allocated funds are likely to flow toward Chinese manufacturers, particularly in sectors such as solar energy components.

Of particular concern are high-risk power inverters used in solar installations. These devices, many of which are produced by Chinese companies including Huawei-linked suppliers, are increasingly being scrutinised by Brussels due to potential cybersecurity vulnerabilities. Officials fear they could allow remote interference with energy systems, posing risks to grid stability in third countries connected to European energy networks.

The European Commission recently issued guidance calling for the gradual removal of such high-risk inverters from EU-funded renewable projects. However, the directive applies primarily to projects outside the EU from 2027 onwards, leaving a gap between policy ambition and current investment frameworks.

The Green Bond Initiative, approved before the cybersecurity guidance was finalised, contains no requirement for partner countries to avoid Chinese suppliers. This absence of procurement conditions has raised concerns that EU-backed financing may indirectly reinforce dependency on Chinese technology at a time when Brussels is trying to diversify critical supply chains.

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A second EU official said projects funded under the scheme risk increasing exposure to Chinese influence in regions such as North Africa, which is expected to receive a large share of early investments. The Mediterranean is considered strategically sensitive due to its proximity to European energy infrastructure.

Efforts by the Commission to push European development banks, including the EIB, to apply stricter exclusion rules have met resistance. Financial institutions argue that project viability and cost efficiency must remain central, while Brussels insists that geopolitical risk and cybersecurity concerns can no longer be ignored.

The debate has also exposed a broader policy gap between the EU’s economic security strategy and its external investment tools, many of which were designed before recent shifts in global trade and technology competition.

The Commission is expected to press fund managers, including Amundi, to reassess procurement frameworks. However, officials acknowledge that many projects were already structured without restrictions on suppliers, limiting room for immediate changes.

With no formal exclusion mechanism in place, disagreements between EU institutions are likely to continue as the initiative moves into implementation, highlighting the tension between climate investment goals and efforts to reduce strategic dependence on China.

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Police Launch Major Operation After Woman Taken Hostage in Berlin Supermarket

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A major police operation remained under way in southwest Berlin on Saturday morning after a woman was reportedly taken hostage by a knife-wielding man inside a supermarket, prompting a lengthy standoff with emergency services.

The incident began late Friday evening at a Rewe supermarket, where police said a man allegedly threatened a woman with a knife before holding her inside the store. Authorities were alerted at around 10 p.m., and specialist officers quickly surrounded the area.

By early Saturday, the situation was still unresolved. Police confirmed that negotiations with the hostage-taker were continuing as officers worked to bring the incident to a peaceful end.

“We are in contact with the hostage-taker,” a police spokesperson told the German news agency dpa, adding that every effort was being made to resolve the crisis without harm to the hostage.

The supermarket remains sealed off as heavily armed officers from a special operations unit maintain positions around the building. Numerous police vehicles, ambulances and fire service crews have been deployed to the scene, while surrounding streets have been restricted.

During the early hours of Saturday, officers positioned a ladder against the building in an effort to gain a clearer view of the situation inside the supermarket as negotiations continued.

Authorities have not disclosed the identity of either the suspect or the hostage, and it remains unclear whether the two knew each other before the incident.

Police confirmed that all supermarket employees who were inside the building when the hostage situation began managed to leave safely. They were evacuated without injury and are receiving support from emergency services.

Witness accounts have started to emerge, although officials have not verified their accuracy. One supermarket employee told German newspaper Bild that the suspect was standing at a checkout before the incident unfolded.

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According to the employee, the man allegedly refused to place his shopping on the conveyor belt before suddenly producing a knife. Police have not confirmed that version of events and have urged caution while the investigation continues.

The hostage incident has attracted a significant emergency response as authorities seek to avoid a violent outcome. Negotiators have remained in close communication with the suspect throughout the standoff, while specialist tactical teams stand ready if intervention becomes necessary.

Officials have asked members of the public to stay away from the area to allow emergency services to carry out their work safely.

The investigation into the circumstances surrounding the incident is expected to continue once the hostage situation has been resolved. Police have not released further details about the suspect’s motive or the condition of the woman being held inside the supermarket.

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EU Plans Tougher Public Procurement Rules to Limit Security Risks From Foreign Firms

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The European Commission is preparing new rules that would allow public authorities across the European Union to exclude foreign companies from public contracts if they are considered a threat to the bloc’s security or public safety.

According to a draft regulation expected to be presented in September, the proposal would give governments greater authority to block companies whose ownership structures, financing or legal obligations in non-EU countries could expose sensitive information or interfere with the delivery of public services.

The initiative comes as the European Union seeks to strengthen its economic security amid rising geopolitical tensions and growing concerns over dependence on foreign technology and critical raw materials. European officials have become increasingly cautious about risks linked to data transfers, cyber threats and supply chain disruptions involving major global powers.

Under the proposed regulation, public authorities would be required to consider security and public safety throughout the procurement process, from early planning and market consultations to contract awards and implementation. Authorities would have the power to assess whether a company’s ownership, control or financing creates the possibility of undue foreign influence.

The draft also highlights concerns about businesses that are subject to legislation in non-EU countries that could compel them to hand over sensitive information or interfere with contractual obligations. Such risks have gained prominence as both the United States and China have enacted laws allowing authorities to request access to data held by companies operating under their jurisdictions.

Another feature of the proposal would allow public buyers to give preference to European companies when awarding contracts. While the measure would not be mandatory, it reflects the European Union’s broader effort to strengthen domestic industries and reduce reliance on external suppliers in strategically important sectors.

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The move follows the European Commission’s push for a stronger “Made in Europe” industrial strategy announced earlier this year, targeting clean technologies, the automotive industry and energy-intensive manufacturing.

Several EU member states have already taken similar steps. France ended its contract with Microsoft for hosting sensitive national health data and later selected French technology company ChapsVision to process information for the country’s domestic intelligence service. Other European nations, including Germany, Italy, Denmark and France, have also restricted or blocked contracts involving Chinese telecommunications company Huawei over national security concerns.

The proposed regulation also focuses on protecting critical infrastructure, supply chains, essential public services and advanced technologies from potential disruption. European officials have become increasingly concerned about strategic dependencies after China restricted exports of rare earth minerals, which are essential for renewable energy technologies, electric vehicles and defense equipment. European industries have also faced challenges involving access to semiconductor components needed for automobile manufacturing.

If approved, the new rules would mark another step in the European Union’s effort to strengthen economic resilience, safeguard sensitive public contracts and reduce vulnerabilities linked to foreign suppliers in sectors considered vital to the bloc’s long-term security.

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European Parliament Set for Fresh Vote on Controversial ‘Chat Control’ Proposal

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The European Parliament is preparing for another vote this week on controversial legislation that would allow technology companies to continue scanning online communications for child sexual abuse material, with a procedural change expected to improve the proposal’s chances of approval.

The legislation, often referred to by critics as “chat control,” has sparked an ongoing debate between child protection advocates and privacy campaigners over the balance between online safety and the protection of encrypted communications.

The proposal follows the expiration on April 3 of a temporary legal framework that had allowed online platforms such as WhatsApp and Messenger to voluntarily detect, report and remove child sexual abuse material while operating under an exemption from the European Union’s e-privacy rules.

In March, members of the European Parliament rejected an earlier proposal from the European Commission to extend those temporary measures. The motion failed after receiving 311 votes against, 228 in favor and 92 abstentions.

Since then, the European People’s Party (EPP), the Parliament’s largest political group, has revived the proposal using a legislative procedure that is rarely employed in the EU lawmaking process.

According to officials familiar with the discussions, the EPP opposed the earlier version because amendments introduced by Socialist lawmaker Birgit Sippel and other left-leaning members narrowed the scope of communications scanning. The center-right group has instead backed extending the rules without modifications.

EPP leader Manfred Weber has been leading efforts to secure approval of the extension. Sources said the party requested Parliament President Roberta Metsola on June 17 to advance the proposal, and no political group formally objected to the move.

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The following day, Metsola urged European Union leaders to move forward with the legislation during an EU summit. Last week, member states agreed to reinstate the temporary measures, allowing online service providers to continue detecting, reporting and removing child sexual abuse material until 2028.

The proposal now returns to the European Parliament, where the voting process differs from the previous attempt.

Under the ordinary legislative procedure being used, legislation is adopted unless an absolute majority of all Members of the European Parliament, at least 361 lawmakers, vote to reject or amend it. Supporters believe this procedural shift significantly improves the likelihood of approval.

Opponents argue the measure threatens digital privacy and encrypted communications. Greens lawmaker Ignazio Marino described the proposal as a form of mass surveillance, saying children are best protected through targeted law enforcement rather than widespread monitoring of private messages.

Another Green lawmaker, Markéta Gregorová, criticized the decision to hold a second vote, arguing the process departs from normal parliamentary practice. She said it raises concerns about democratic procedures and accused the EPP of using an unusual legislative route to advance its priorities.

The European Parliament is expected to decide on Tuesday whether to fast-track the proposal under an urgent procedure requested by the EPP. If approved, lawmakers will hold the decisive vote on Thursday.

The outcome is expected to shape the EU’s approach to online child protection while reigniting debate over privacy rights and the future of end-to-end encrypted communications.

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