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BREAKING OVERNIGHT: ISRAEL AND HAMAS AGREE TRUCE DEAL 
TEMPORARY CEASE-FIRE: Israel and Hamas have agreed a brief truce settlement that may see the discharge of dozens of Israeli hostages held by Hamas and a pause in preventing in Gaza that might final 4 or 5 days. The settlement, which is able to take impact 24 hours after the announcement, would additionally see some Palestinian prisoners held by Israel freed. Nicolas Camut and Zoya Sheftalovich have the main points.
Details: The breakthrough deal would see 50 girls and kids launched by Hamas, in alternate for 150 Palestinian prisoners held in Israel. A four- to five-day pause in preventing would enable for the alternate to be accomplished safely, and for support to enter Gaza. However, Hamas would proceed to carry round 200 hostages. Israeli Prime Minister Benjamin Netanyahu’s workplace mentioned the discharge of each 10 extra hostages would see one extra day added to the pause in preventing.
Not over: Speaking earlier than a gathering of his Cabinet, which voted in a single day to again the deal, Netanyahu vowed the battle would proceed after the hostages have been launched, saying: “We are at war, and we will continue the war until we achieve all our goals: eliminate Hamas, return all the hostages and missing, and guarantee that there will be no threat to Israel in Gaza.”
How it occurred: My U.S. colleague Alexander Ward has an in-depth look at how the deal took place. It took 5 weeks of “excruciating” negotiations, with Netanyahu at one level telling a U.S. official: “We need this deal.”
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MELONI-SCHOLZ MEETING
BUDGET CRISIS IRONY: German and Italian leaders will meet as we speak amid a deepening authorities and funds disaster — but this time that ache is in Berlin, not in Rome.
Welcome distraction: Italian Prime Minister Giorgia Meloni is touring to the German capital, the place officers are nonetheless reeling from the fallout of a bombshell Constitutional Court ruling that blew a €60 billion gap in Germany’s funds final week and compelled the EU’s prime economic system to freeze its funds.
On the agenda: Both leaders will as we speak tune in to a digital G20 summit organized by India’s Narendra Modi — during which Russian President Vladimir Putin is predicted to take part. Meloni and German Chancellor Olaf Scholz can even signal an “Italian-German Action Plan” for strategic cooperation this afternoon.
New German-Italian rapprochement: That motion plan was first floated practically two years in the past, however placed on ice when Meloni was elected — the Italian PM clashed with Scholz on migration. Those tensions have been smoothed over, with Germany adopting a harder line on migration and Meloni quickly being accepted by her European colleagues as a pacesetter they will work with, Hans von der Burchard in Berlin and Hannah Roberts in Rome write in to report.
UNDER PRESSURE: The assembly additionally comes as member international locations — led by France, Germany and Italy — are racing to agree on a reform of the EU’s joint debt guidelines. France and Italy have been pushing for extra versatile guidelines that may grant governments extra time to scale back their debt, to keep away from brutal sudden cuts that may push them into austerity.
Enter Germany: But even Berlin is now beneath stress to agree a reform, with rates of interest climbing, the ECB calling for predictable guidelines and the European Commission warning that Germany’s 2024 funds is “not fully in line” with the EU’s debt guidelines.
Background: The old debt guidelines, which mandate fast cuts for any nation that has money owed over 60 % of GDP, are slated to kick in once more beginning January, however are seen as unrealistic following the COVID disaster and Russia’s battle, throughout which most governments accrued massive money owed above that threshold.
F-grade on funds plans: The Commission on Tuesday warned that France, Belgium, Finland and Croatia urgently have to adapt subsequent yr’s budgets to fall into line with the principles, as Bjarke Smith-Meyer, Gregorio Sorgi and Giorgio Leali report.
Another irony: Germany, Austria, Luxembourg, the Netherlands and Italy have been additionally warned their spending plans “are not fully in line” with the principles. Meanwhile, Spain, Greece and Ireland acquired the OK — a shocking reversal from the euro disaster a decade in the past, when Portugal, Ireland, Greece and Spain have been derided because the PIGS who couldn’t pay again their money owed.
Triangle of treaties: The German-Italian motion plan — which seeks to ascertain nearer cooperation on international coverage, protection, vitality and industrial insurance policies in addition to digital points and science — goals to reflect related Franco-German and Franco-Italian partnership treaties and thereby create a triangle of shut allies on the EU’s middle. Meloni and Scholz are additionally aiming for better alignment forward of EU summits, in accordance with an Italian official.
RELAXING GERMAN DEBT RULES? Ahead of the Meloni go to, the German Cabinet will meet to resolve on subsequent steps following final week’s Constitutional Court ruling. Berlin might should undertake a supplementary funds for this yr and droop the constitutionally enshrined debt brake. Such a choice might come as early as as we speak.
Difficult selections: German Finance Minister Christian Lindner has lengthy argued that he desires to uphold the debt brake. Yet the tough monetary scenario following the ruling might depart him no different alternative than to declare an “emergency” and ask for a debt brake suspension for this yr, his personal financial adviser Lars Feld wrote Tuesday. Remarkably, Lindner didn’t rule out such a transfer when requested by Hans on the sidelines of an occasion on Tuesday night — however he confused that he would apply “more restrictive” funds insurance policies as of subsequent yr.
Reprioritizing the funds: Lindner additionally advised the occasion that he “will find ways” to help the inexperienced transition of Germany’s economic system subsequent yr, even when extra restrictive funds practices have been to use by then. A number of subsidies to deliver down vitality costs, help the inexperienced transition and finance the development of microchip vegetation in Germany are unsure following final week’s ruling, however Lindner mentioned that he would “rearrange” the funds to search out money for “priorities.” Nevertheless, “we cannot afford all subsidies,” he cautioned.
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HUNGARIAN CIRCUS, CONTINUED
ORBÁN UPS ANTE ON UKRAINE: In a letter to EU Council chief Charles Michel, Hungary’s prime minister has threatened to derail upcoming talks on Ukraine except leaders agree to carry a strategic dialogue on their coverage towards Kyiv.
Raising the stakes: Orbán tells Charles Michel that such a dialogue is “urgent” given the battlefield scenario in Ukraine, including that no choice on opening accession talks, monetary support for Ukraine or additional Russia sanctions is feasible till leaders consent to this “strategic discussion.”
Washington angle: Orbán additional hyperlinks Europe’s backing of Ukraine to the United States, asking if additional help is warranted if Washington steps again its support for Kyiv. “Can we take continuing support from the United States for granted? How do we conceive the security architecture of Europe after the war?” Orbán asks within the letter.
Step again: The Hungarian chief is ramping up tensions as he seeks to realize most leverage in a standoff with Brussels over €13 billion in EU funds for Hungary, that are presently blocked pending the Commission’s choice on rule-of-law reforms. According to at least one EU diplomat, Hungary has “booby-trapped” each choice pertaining to Ukraine with its risk of veto.
Another manner? Some international locations are already speaking about methods to avoid Hungary within the occasion that Budapest decides to make use of its veto on Ukraine, together with by transferring to bilateral offers for navy support. But the diplomat argued that such strikes would undermine EU unity and may be untimely.
Calling out BS: Despite Orbán’s assertion that the EU has had no strategic discussions on outcomes in Ukraine, papers and assume items abound — together with a draft paper from Europe’s diplomatic arm, seen by Jacopo Barigazzi, which delves into the EU’s safety commitments vis-a-vis Ukraine.
STILL NO CASH FOR HUNGARY: Meanwhile, MEPs in Strasbourg on Tuesday mentioned Hungary’s progress in tackling the risk to the rule of legislation and judicial independence within the nation, urging the Commission to not launch the frozen funds till Budapest has met all of the set situations.
Changes first: Many MEPs expressed issues over the Commission’s rumored plans to launch the money to Hungary in alternate for its help for Ukraine, a prospect they denounced as worrisome. But Justice Commissioner Didier Reynders reassured that funds “will not flow in the absence of necessary changes.”
‘Not for sale’: “Rule-of-law principles are not for sale, they are non-negotiable and cannot serve as bargaining chip,” mentioned EPP MEP Jeroen Lenaers, who mentioned additional actions are wanted earlier than the Commission can unfreeze the funds. “Only significant, tangible, and lasting reforms can enable the release of taxpayers money.”
Hungary’s MEPs reply: Hungarian MEPs clapped again at Brussels, accusing the EU of making an attempt to blackmail Budapest by withholding the funds. “The objective never was to reach an agreement, this is pure blackmail,” Balázs Hidvéghi, a Fidesz MEP, mentioned. MEP Tamás Deutsch warned that Hungary “won’t dance” to Brussels’ music and can proceed to guard its sovereignty.
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TREATY CHANGE
DEBATE HEATS UP: Tensions boiled over within the European Parliament on Tuesday throughout a debate on proposed EU treaty revisions, a day earlier than lawmakers are set to vote on the bold report.
Ch-ch-changes: The proposal, a joint effort of MEPs throughout the EPP, Greens, S&D, Renew and Left, consists of a number of adjustments to the present construction of the EU, together with eradicating vetoes by individual international locations and changing unanimity within the Council of the EU with majority voting.
Turn and face the unusual: The purpose is to strengthen the EU, in accordance with the proposal’s rapporteurs, my colleague Claudia Chiappa stories. “The EP is taking a historic step forward,” mentioned Green MEP Daniel Freund, one of many rapporteurs, including that the proposal will “remove barriers that are holding Europe back.”
Rebel insurgent: But whereas the proposed adjustments garnered vital help, in addition they triggered backlash from far-right lawmakers. Polish Law and Justice MEP Jacek Saryusz-Wolski referred to as the proposal a “constitutional coup d’état” that can flip the EU right into a “communist super state” whereas relegating member international locations to mere areas.
Not a fan: His emotions have been echoed by far-right Estonian MEP Jaak Madison, who referred to as his colleagues “crazy federalists.” “Your job is useless, and you’re paid for useless work,” he advised parliamentarians. “Congratulations for your voters.”
TOP JOBS
WHAT COMMISSIONERS DO NEXT: Over the previous few months, with subsequent yr’s EU election approaching, a gradual stream of European commissioners have headed for the Berlaymont’s exit door. But Mairead McGuinness says she isn’t going wherever.
‘My absolute focus’: The Irish commissioner issued an announcement quelling hypothesis in her home nation that she would run within the European Parliament election, Suzanne Lynch stories. “I have one more year to serve in my role as EU Commissioner for Financial Services, Financial Stability and Capital Markets Union. This is my absolute focus for the next twelve months,” mentioned McGuinness, who was a powerhouse within the EPP throughout her 16 years as an MEP.
Background: Two of the 5 sitting MEPs from Irish Taoiseach Leo Varadkar’s Fine Gael — Frances Fitzgerald and Deirdre Clune — have not too long ago introduced they won’t run in 2024, opening up a scramble amongst get together hopefuls to get on the poll subsequent June. McGuinness, who took over from Phil Hogan in 2020 after he was pressured to resign over attending a {golfing} occasion through the COVID pandemic, has beforehand been rumored to be eyeing a run for the Irish presidency.
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IN OTHER NEWS
FOREIGN MINISTERS’ NATO GATHERING NEXT WEEK: NATO international locations’ prime diplomats might be attending the international ministerial assembly subsequent week. Speaking at POLITICO’s Pro Defense launch occasion Tuesday, British Ambassador to NATO David Quarrey mentioned the ministers will deal with two seasons — this winter and the following summer season.
Talking Washington and Kyiv: There’ll be dialogue on the “high politics” waiting for the NATO Washington summit in July subsequent yr, he mentioned, with out shedding sight on what he referred to as the “trajectory” of the Russian battle in opposition to Ukraine over the freezing months forward. “We know that the Russians will come after Ukraine’s critical national infrastructure again this winter,” Quarrey advised Josh Posaner. “So I’m sure ministers will want to talk about how we are providing support there.”
QATARGATE LATEST: In January, Belgian authorities issued a nationwide notification for the arrest of the Qatari labor minister, his aide, and Morocco’s ambassador to Poland — in accordance with Belgian police stories seen by POLITICO — as a part of the investigation into the Qatargate corruption scandal. But the notifications have been abruptly rescinded later that month. Elisa Braun digs into the on-again, off-again hunt for the lads accused of corrupting the European Parliament.
DUTCH ELECTION UNDERWAY: Polls have opened within the Netherlands’ knife-edge election, with the large shock a sudden surge in help for the far-right get together of Geert Wilders, Eline Schaart stories. You can keep updated with the outcomes after polls shut on Wednesday night with POLITICO, and your favourite morning e-newsletter will after all have the latest on the election on Thursday morning.
PFIZER SUES POLAND OVER VACCINE DOSES: U.S. pharmaceutical large Pfizer is taking the Polish authorities to court docket over missed COVID-19 vaccine funds, in accordance with Gazeta Prawna. The civil go well with issues 60 million doses of the BioNTech/Pfizer jab that Poland ordered however by no means paid for.
MEANWHILE, CROSSWINDS HIT POLAND’S AIR HUB: A undertaking to build one in every of Europe’s largest airports in the course of Poland is in peril as Donald Tusk’s government-in-waiting pledges to take a tough take a look at schemes promoted by the outgoing right-wing Law and Justice get together. Wojciech Kość and Mari Eccles have the main points.
LESSONS FROM UKRAINE TO GAZA: In an opinion article for POLITICO, Ross Burley, co-founder and govt director of the Centre for Information Resilience, warns in opposition to the rise of novice open-source investigators on platforms akin to Elon Musk’s X, who’re sharing inaccuracies concerning the wars in Ukraine and Gaza.
AGENDA
— G20 leaders summit by way of video convention. Both Commission President Ursula von der Leyen and Council President Charles Michel take part.
— NATO Secretary-General Jens Stoltenberg continues journey to Western Balkans. Participates in assembly with Allied leaders from the area; Albanian Prime Minister Edi Rama, Croatian President Zoran Milanović, Slovenian Prime Minister Robert Golob and Prime Minister of Montenegro Milojko Spajić invited to attend. Joint press convention at 11:40 a.m. Watch.
— European Parliament plenary session continues in Strasbourg. Highlights: Gaza debate at 9 a.m. … press point by the Parliament President Roberta Metsola and Bulgarian Prime Minister Nikolay Denkov at 10:20 a.m. … tackle by Denkov at 10:30 a.m. … Debate on risk to rule of legislation in Spain at 2 p.m. Agenda. Watch.
— EU member international locations’ deputy everlasting representatives meet in Coreper I at 10 a.m.
— Press convention by Environment Commissioner Virginijus Sinkevičius and Climate Action Commissioner Wopke Hoekstra on the forest monitoring framework at 1 p.m. Watch.
— Press convention on proposals of the Parliament for the modification of the Treaties by co-rapporteurs Guy Verhofstadt, Sven Simon, Gabriele Bischoff, Daniel Freund and Helmut Scholz at 3 p.m. Watch.
— Energy Commissioner Kadri Simson is in Maputo, Mozambique; delivers a keynote speech on the Opening ceremony of the Mozambique-EU Global Gateway Investment Forum … meets President Filipe Nyusi … meets Energy Minister Carlos Zacarias … delivers a speech by way of videoconference at European Hydrogen Week 2023.
— Cohesion and Reforms Commissioner Elisa Ferreira receives Polish Development Funds and Regional Policy Minister Grzegorz Puda … receives United Nations Under Secretary-General and UNOPS Executive Director Jorge Moreira da Silva.
— Neighborhood and Enlargement Commissioner Olivér Várhelyi additionally receives Jorge Moreira da Silva.
BRUSSELS CORNER
SCHUMAN ROUNDABOUT WORK: The renovation of the Schuman roundabout kicked off this week — however there are nonetheless individuals who wish to cease it. “The European Quarter is one of the ugliest neighborhoods in Brussels and we don’t want it to go any further. We want an end to the Brusselization,” said Marco Schmitt, president of the Quartier Léopold Association, one of many neighborhood committees that opposes the redevelopment. Another affiliation, GAQ, started a petition.
What’s Brusselization? The city planning insurance policies from the Sixties and Seventies that launched skyscrapers in historic neighborhoods, with out consideration for residents, have develop into generally known as Brusselization. Critics say the redevelopment of Schuman won’t shut the hole between residents and EU workplace buildings, and their goal is to droop the works.
Everyone’s a comic: DG Meme reveals the excavation of the roundabout has unveiled an historical temple devoted to the EU founders. Others claim the redeveloped Schuman will function a docking station for the Europa building’s Space Egg.
CATCHING CATS: Brussels is introducing a geocaching recreation by the historic middle of town with digital artwork and lightweight sculptures. The recreation includes discovering small luminous cats hidden alongside a delegated route. The participant with the very best rating might be rewarded with a miniature cat sculpture. Starts as we speak and available till December 31.
P!NK IN BELGIUM: Pop star P!NK will carry out in Belgium on July 14 for her Summer Carnival World Tour. Tickets go on sale this Friday at 10 a.m.
THE ART OF NOTHING: A brand new exhibition, “L’art de rien,” opens on Thursday at Centrale, and showcases artwork made by reusing discarded on a regular basis objects.
BRASSERIE CHAPEAU BLANC: The in style Brasserie Chapeau Blanc in Anderlecht, based in 1890, has reopened. It closed through the COVID-19 pandemic.
MAGRITTE BAR: A new bar positioned inside Hotel Amigo devoted to the works of surrealist artist René Magritte opened on Tuesday, marking the artist’s one hundred and twenty fifth birthday. The cocktails are impressed by Magritte’s most well-known artworks.
BLOOD DONATION: Red Cross Belgium is urgently on the lookout for blood donors forward of Christmas, in anticipation of individuals leaving city for the vacation. “We are currently only able to respond to 50 percent of hospital requests in negative groups … Without swift action and massive mobilization of donors with a negative group, the situation will continue to deteriorate week by week,” the press release notes.
NEW JOB: Tom Meulenbergs is the brand new communications director for Belgium’s Foreign Minister Hadja Lahbib, who might be a key determine throughout Belgium’s upcoming EU Council presidency. Meulenbergs labored for years as spokesperson and communications director for Prime Minister Alexander De Croo, a task he left in September.
QUESTION FOR CARNEY? For an upcoming episode of our Power Play podcast, host Anne McElvoy might be interviewing Mark Carney, the U.N. particular envoy for local weather motion and finance, earlier than he heads to COP28 in Dubai. Submit any questions you might have for him here by 4 p.m. CET on Thursday. The full interview might be out on November 30, right here.
BIRTHDAYS: European Economy Commissioner Paolo Gentiloni; MEPs Sándor Rónai, Ska Keller and Olivier Chastel; Former MEP Sophie Montel; Austrian politician Elisabeth Köstinger; Katrina Murray from the Australian Department of Foreign Affairs and Trade; Lydie Polfer, mayor of Luxembourg City; European Parliament’s Stijn Teeuwen; Spotify’s Eleanor Flanagan Baelus; U.S. Ambassador to the U.N. Linda Thomas-Greenfield; U.S. Ambassador to the Netherlands Shefali Razdan Duggal.
THANKS to Hans von der Burchard, Claudia Chiappa, Nicholas Vinocur, Jacopo Barigazzi, Carlo Martuscelli, Suzanne Lynch, Playbook reporter Ketrin Jochecová, editor Jack Lahart and producer Seb Starcevic.
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