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Good morning. Viktor Orbán isn’t holding again in his opposition to extra EU assist for Ukraine. He used a second letter to Council President Charles Michel in two weeks to demand discussions on each Ukraine’s EU membership and a top-up to the bloc’s price range be faraway from the agenda of subsequent week’s leaders’ summit as, in accordance with the Hungarian chief, they’ll “inevitably lead to failure.”
Today, our commerce and power correspondents reveal {that a} Czech and Slovak demand for an prolonged exemption on utilizing Russian oil is complicating sanctions discussions, whereas our Rome and Berlin bureau chiefs report on Italy’s seizure of a migrant-support ship funded by Germany.
Addicted
The problem in kicking dependency on Russian oil is complicating the most recent EU sanctions package deal in opposition to Moscow, write Andy Bounds and Alice Hancock.
Context: Slovakia, the Czech Republic and Hungary can proceed utilizing oil from Russia’s Druzhba pipeline regardless of an EU ban, till various provides can be found. But an exemption permitting Slovakia to promote merchandise constituted of refined Russian oil ends in the present day.
Prague and Bratislava need to lengthen the rule as a part of laws implementing the EU’s proposed twelfth sanctions package deal in opposition to Russia, arguing that in any other case shortages would push up costs in a number of international locations.
“If we do not export these products to the Czech Republic it could have a wider impact on the central Europe region. It could increase prices in several countries,” a Slovak official mentioned.
But Poland and the Baltic states are adamant the exemption shouldn’t be prolonged.
“We have consistently called for stopping all co-operation between EU member states and Russia, especially in the area of oil trade,” mentioned one EU diplomat. “The main reason behind it is to hit Russia’s budget used for military operations in Ukraine.”
Slovnaft, a refinery in Bratislava owned by Hungary’s MOL group, mentioned it must stop exports of banned merchandise tomorrow if the exemption was not granted.
Commission officers concerned in negotiations over the sanctions package deal, which additionally features a ban on buying and selling Russian diamonds and measures tightening a G7-led worth cap on Russian oil, acknowledge the opposition to the extension however are assured it gained’t derail the whole package deal.
Slovnaft has not but been capable of pivot from Russian heavy crude to the lighter model imported from different international locations, the Slovak official mentioned. It would price round €200mn to take action and has taken longer than anticipated.
The Czech authorities has mentioned it’s pushing to finish enhancements to a pipeline connecting the Mediterranean port of Trieste with central Europe, which might enable it to bypass Druzhba. But the work gained’t be accomplished till subsequent 12 months.
Chart du jour: Tightening the belt

Germany is making an attempt to shut a serious hole in its authorities price range, however personal funding can be not trying rosy. A benchmark survey by Munich’s Ifo Institute exhibits that German corporations have slashed their funding plans for this 12 months and subsequent.
Choppy waters
Italy has seized a humanitarian search-and-rescue vessel partly funded by the German authorities, within the newest show of tensions in Europe over how to reply to migrants making an attempt the perilous Mediterranean crossing in rickety overcrowded boats, write Amy Kazmin and Guy Chazan.
Context: Italy’s Prime Minister Giorgia Meloni has criticised Berlin for funding search-and-rescue operations by civil society teams like SOS Humanity. Her authorities believes such humanitarian rescue operations encourage extra individuals to undertake the journey.
The Berlin-based charity SOS Humanity mentioned yesterday that its vessel Humanity 1 was impounded by the Italian authorities within the southern port of Crotone on Saturday night, after it disembarked 200 individuals rescued from misery at sea.
The charity mentioned it will take authorized motion in opposition to the Italian authorities’s choice. SOS Humanity demanded the instant launch of the vessel “so that it can return to sea as quickly as possible and continue its life-saving work.”
Differences between Berlin and Italy are just one instance of the completely different approaches to the difficult subject of migration, which involves a head this week as negotiators from member states and the European parliament meet on Thursday to discover a breakthrough on EU migration reform.
The German international ministry confirmed that Berlin has funded SOS Humanity “for rescue operations on the open sea” in 2023, and “will decide in due course on funding for 2024”.
Meloni’s authorities, however, has constrained migrant rescue operations, together with by limiting the variety of rescues boats can perform.
Italy impounded three migrant rescue boats in August, together with two operated by Germany charities, and the Spanish rescue vessel Open Arms, which was seized once more in October.
What to observe in the present day
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EU house affairs ministers meet.
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Slovenia’s international minister Tanja Fajon hosts her German counterpart Annalena Baerbock in Ljubljana.
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