Dear readers,

It’s all about the money in Europe this week — or lack of it.

In Brussels, European Commission President Ursula von der Leyen’s messy, muddled unveiling of the EU’s next long-term budget laid bare the fault lines in her political support. In France, far-right leader Marine Le Pen on Tuesday vowed to bring down the government unless Prime Minister François Bayrou rows back on an aggressive budget that proposes scrapping two major public holidays.

Part of the budgetary pressure, of course, comes from a ramp-up in defense spending. German Chancellor Friedrich Merz admitted European nations have acted like “free-riders” on the United States when it comes to defense. Donald Trump isn’t the only one who should take credit, though, EU Commissioner for Defense Andrius Kubilius told POLITICO’s Jonathan Martin at the Aspen Security Forum. Russian President Vladimir Putin also played a significant part.

Broader economic pressure, too, as the EU pushes to agree on a deal on tariffs before Trump’s Aug. 1 deadline. We scooped Thursday that Brussels is considering a new round of retaliatory measures that would impose curbs on trade in services and procurement. Expect plenty on that next week.

Wishing you all a restful weekend,

Kate Day

BMW Group’s Frank Niederländer discussed the future of European industry and trade with POLITICO Studio: “Europe has the potential to lead. But leadership requires the courage to move beyond outdated regulations, respond decisively to shifting geopolitical realities and streamline the path forward.” Read the interview here.

Before hopping on a plane to Washington, Trade Commissioner Maroš Šefčovič floated the proposal to impose curbs on trade in services and procurement at a meeting of EU trade ministers Monday. Read the story.

Italian Foreign Minister Antonio Tajani has described Libya as “an emergency that Europe must address together,” but Italy and Greece aren’t having much luck delivering the message to EU and NATO allies. Read the story.

With a heavy dose of Realpolitik, Germany and other European countries got the U.S. administration to aid Ukraine without directly confronting Putin. Read the story.

In local councils all over Britain, Nigel Farage’s populist right-wing party Reform is hunting for costs to cut. What voters ultimately make of it could cost Labour the next election. Read the story.

All tech lobbies associated with the e-commerce giant — including DigitalEurope, CCIA Europe and ITI — could be barred from Parliament in major escalation of fight over warehouse working conditions. Read the story.

U.K. Energy Secretary Ed Miliband is targeting home heat policy to try and reduce sky-high bills. Read the story.

al: The €2 trillion question: Inside the battle over the EU’s budget

Trillions of euros, almost as many priorities — and just over two years to agree. The European Commission has unveiled its sweeping new seven-year budget proposal, and the fight over where the money goes is already heating up.

Host Sarah Wheaton is joined by POLITICO’s Gregorio Sorgi and Bartosz Brzeziński to break down the big winners and losers in the 2028–2034 MFF (Multiannual Financial Framework, as the EU’s long-term budget is known) — from slashed farm spending to a five-fold boost for defense and competitiveness. What’s the political vision behind the numbers? And what does the chaotic rollout tell us about Ursula von der Leyen’s grip on the process? Listen to the episode.

Westminster Insider is on a break this week, but our content is not time-sensitive: Have a listen to our catalogue here or via the links below.

Read this week’s Declassified column.

“If I must tolerate this common nonsense, at least bring me a throne.“

Can you do better? Email us at [email protected] or get in touch on X @POLITICOEurope.

Last week, we gave you this photo:

 Thanks for all the entries. Here’s the best from our postbag — there’s no prize except for the gift of laughter, which I think we can all agree is far more valuable than cash or booze.

“Going once. Going twice. The Office of the Presidency is SOLD for $630 million!”
by Lorne Rodrigue

BMW Group’s Vice President, Government Affairs Europe, Frank Niederländer sat with POLITICO Studio to discuss trade, competitiveness, and decarbonization: “Europe’s biggest risk isn’t deglobalization — it’s marginalization. Europe must remain open with a trade policy that reinforces our competitiveness.” Read the interview here.

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