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00:14Good morning, it is Monday the 9th of March. I'm Maeve MacMahon and this is Europe Today.
00:20Your daily dose of European news and analysis live here on Euronews.
00:25Coming up, it has been 10 days since US and Israeli strikes hit Iran, killing the Supreme Leader Ayatollah Ali
00:34Khamenei.
00:35Tehran now finds itself under a fog of thick black smoke and faces a major security and environmental crisis following
00:43Israeli strikes on oil refinery facilities.
00:46Meanwhile, Iranian drones have been causing destruction across the Middle East and the Gulf with strikes nearing Dubai International Airport,
00:53where thousands of foreign nationals have been stranded.
00:56The Arab League has condemned Iran for what it calls a dangerous escalation of attacks against civilian targets and vital
01:03infrastructure in the Gulf.
01:05Meanwhile, a brand new Supreme Leader, Moshaba Khamenei, has been announced in Iran as EU leaders prepare to hold emergency
01:12talks with Gulf counterparts on the escalating situation in the Middle East.
01:16All this as oil prices spike.
01:19Euronews correspondents all across the Gulf are keeping us informed across our network.
01:24For the latest, we can now cross over to the UAE, where Euronews's regional correspondent, Jane Witherspoon, is standing by
01:31for us this morning in Dubai.
01:33Good morning, Jane.
01:34So Iran has a new Supreme Leader whilst attacks continue on all fronts.
01:38Bring us up to speed.
01:40Good morning.
01:41Yes, Moshaba Khamenei has been elected as the new Supreme Ruler of Iran, taking over from his father, Ayatollah Ali
01:49Khamenei, who was killed in those strikes 10 days ago, as you say, by the USA and Israel in Iran.
01:58Now, there's not much known about the new leader.
02:00He's kept a relatively low profile over the years.
02:04In fact, there are not many photographs even out there of him.
02:07It is expected, though, that the 50th and also Europe will maintain the hardline rule adopted by his father in
02:22Iran.
02:22Now, that said, President Donald Trump has also issued a bold statement saying that the next Iranian Supreme Leader is
02:31going to have to get approval from us.
02:33If he does not get approval from us, he's not going to last long.
02:39Now, as you can imagine, the last 48 hours, the attacks have ramped up here across the Middle East.
02:46Our colleagues in Doha have reported that they were woken this morning at 3 a.m.
02:51by those alarms that go off on our phone, signaling a strike.
02:55Here in Dubai on Saturday, there was an attack near to Dubai Airport where a drone hit the tarmac
03:07to a safe space underground in the main terminal.
03:11In addition to that, a car was hit by drone debris off one of the main roads near Sheikh Zayed
03:18Road,
03:18which is the main road through Dubai, resulting in the death of the driver.
03:23On Friday night, I attended a closed meeting at the Ministry of Foreign Affairs here in Dubai,
03:30where government officials told us that the main priority for the UAE,
03:34that they are focused on defending the population and infrastructure while trying to contain the wider situation.
03:42Obviously, lots of talk, as you say, about oil prices this morning.
03:46A barrel of oil is up to almost $120 a barrel.
03:51That is the biggest price hike that we have seen in four years.
03:55So there'll be lots of eyes keeping a close eye on that.
03:58Indeed, Jane Witherspoon, thank you so much for that live update from Dubai.
04:03And as you heard there, oil prices are rising, causing turbulence across the global economy.
04:08That's why European and Gulf countries are trying to cope with this sudden war that they never wanted.
04:12And that's why they're holding emergency talks today, Monday, with their GCC countries.
04:17And our EU news editor, Maria Tadeo, is across the story for us and joins me right now here in
04:22the studio.
04:22Good morning, Maria.
04:23So we're seeing oil prices jumping here to more than $100 a barrel.
04:27We haven't seen this for a couple of years.
04:30Could this lead to weeks-long supply disruption?
04:32Since 2022 in May, of course, we had debated just a week ago when the war started whether or not
04:38we would see this $100 a barrel price benchmark and hit on the price mark.
04:44And now it's taken 10 days, but we're finally there.
04:46Obviously, this has major implications psychologically for the market, but also in terms of the ramifications for the global economy.
04:54Ultimately, some analysts say that this could be the worst energy crisis in decades because of the combination around it.
05:02On the one hand, you have over the weekend that succession put in place in Iran.
05:07It's the son of the Ayatollah Ali Khamenei who will replace him.
05:11The signals that that sends politically is the heartliners in this regime remain very much in place, and they guide
05:17the policy of Iran.
05:19Remember, also, President Trump had been very clear that he did not consider the son of the late Ayatollah an
05:25appropriate choice.
05:26He said he was a lightweight and also said it would be unacceptable for the U.S.
05:31Obviously, the scenario that the Americans would like to see is something that looks like Venezuela.
05:35The top leader gets taken out, and then obviously what is left changes in alignment with the U.S.,
05:42but that is no longer the case, or it's no longer the case, I should note, for the time being,
05:46because we are seeing that retaliation continue from Iran.
05:50And then secondly, it is really just a question of logistics, supply, and transportation.
05:54When you look at the countries that right now, when it comes to the retaliation from Iran, are the most
06:00hurt, it's the Gulf countries.
06:02Obviously, we also talk about the Strait of Hormuz is not able to operate normally because of these strikes that
06:09keep taking place with missiles,
06:10but also drones, which are very cheap to fire, but they create chaos on the ground.
06:15So it's really this combination that is propping up energy prices today.
06:19I should just point very quickly, President Trump did comment on this over the weekend.
06:24He is a president that likes to monitor very much the performance of the stock market.
06:29So he likes to see high stock markets, and then obviously low energy prices.
06:33Right now, this is a reverse.
06:35Stocks are plummeting because of the uncertainty, and energy prices are going up.
06:39The president of the U.S. seems to be willing to tolerate those levels,
06:42saying that this is a small price to pay for global security, especially if the nuclear threat from Iran is
06:48eliminated.
06:48Just as a final breaking news on this point, because this energy story is important this morning,
06:53the G7 will gather, and there's a possibility, perhaps, that the G7 countries will agree to release some of the
07:00strategic oil reserves
07:01to sort of step in and stabilize this market.
07:04Indeed, G7 countries meeting, and also EU emergency talks are taking place with GCC counterparts.
07:10Fill us in.
07:10Indeed, and that is obviously the Gulf countries speaking.
07:14This is a video conference that will take place today with the head of the commission, Ursula von der Leyen
07:19and Antonio Costa.
07:20This is a sort of two-way communication channel.
07:24Remember, these countries are strategic for the energy story for the EU, but also defense,
07:30because there is cooperation between a number of European countries and the Gulf countries
07:34when it comes to sort of mutual defense.
07:38And that's why we've seen the likes of France and Italy, also the U.K.,
07:42saying that they will step in and help protect strategic assets and also their partners in the region.
07:47Another point that is perhaps closer to home is the French president, Emmanuel Macron, who will be headed to Cyprus.
07:54I believe he's probably now on his way there.
07:56The flight was scheduled to take place just a few minutes ago.
07:59He will go there in a show of solidarity.
08:01I remember last week there was a drone that did hit a base, a U.K. base, in Cyprus,
08:06and also the Greek prime minister said to visit all of this in a show of solidarity.
08:12But beyond solidarity, there's a real question about the Mediterranean countries
08:15that could be impacted by indiscriminate strikes.
08:19And that is something that the Europeans have said they will have to help and step in.
08:24And the message also from the commission was clear last week,
08:27saying no stone left unchecked to help these countries that are in the sort of perimeter
08:33that could be impacted by the war.
08:35OK, Maria Tadeo, Uri News' EU editor, thank you so much for all those details.
08:40And of course, you mentioned the impact this war is having on Mediterranean countries.
08:43And actually, very shortly here, we'll be joined by the president of the Eurogroup,
08:47who also happens to be the Greek finance minister.
08:49So do change. Stay tuned for that.
08:51But first, here's an update on that pipeline spat between Hungary and Ukraine
08:55that now includes a police raid on a Ukrainian convoy and threats over Europe's oil supply.
09:01Our Jakob Janis has been taking a closer look.
09:05As the old Hollywood rule goes, attributed to Alfred Hitchcock,
09:10a good thriller starts with an explosion, followed by a rising tension.
09:14In the crisis between Hungary and Ukraine, the explosion was a literal pipeline.
09:19And last week, tension reached a breaking point,
09:22when the Hungarian anti-terror police raided a Ukrainian state bank convoy carrying cash and gold.
09:28And in response, Kiev accused Budapest of taking its citizens hostage.
09:33But wait a second, how did we actually get here?
09:37Since late January, the Druzhba pipeline has been down.
09:41Kiev blames Russia for the explosion and refuses to repair the damage,
09:46halting Russian oil to Hungary and Slovakia.
09:49Budapest, on the other side, accuses Kiev of exploding the disruption.
09:52And in retaliation, is blocking a critical 90 billion euro EU loan to Ukraine.
09:59But escalation did not stop at financial vetoes.
10:03Orban vowed to break the oil blockade by force, though he did not explain how.
10:08And Ukraine's president fired back, suggesting he would give Ukrainian troops Orban's phone number.
10:15And Hungary condemned the remark as a death threat.
10:19But you see, there is also a bigger picture.
10:21Both leaders are racing against brutal April deadlines.
10:25And if the Ukraine loan is not unblocked by early April,
10:29the country will run out of money, facing devastating cuts to public services.
10:34Meanwhile, Orban faces divisive elections on the 12th of April.
10:39And opposing Ukraine is his strategy to win.
10:42That leaves the EU rushing to break the veto and deliver the cash before Ukraine goes broke,
10:48while trying not to look like it's picking a side in Hungary.
10:52But finding that balance is really hard when this political thriller is building toward its breaking point.
10:59So take a deep breath, because the final scene is about to begin.
11:10For more on that story, you can visit euronews.com.
11:13But for now, as promised, coming up, we'll be joined by Kyriakos Perekakis,
11:17the president of the Eurogroup and the Minister of Economy and Finance of Greece.
11:21As head of the Eurogroup, he chairs meetings of finance ministers from the Eurozone countries
11:26and coordinates economic policy across the Eurozone.
11:29Good morning.
11:30Good morning.
11:31Great to have you with us here on Europe Today on Euronews.
11:34Delighted to be joining you.
11:35So look, Europeans are waking up today with deep concern about the escalating situation,
11:40the rising energy prices.
11:41How vulnerable is the European economy here to these shocks?
11:44First of all, we're being tested.
11:46This is obvious.
11:46And obviously, we're also being quite concerned about how things are unfolding on the ground.
11:52I think we're meeting the diplomatic challenge.
11:54You mentioned Cyprus before in the visit of President Macron in Cyprus.
11:57I think it's quite pertinent that we have this testament, this manifestation of European solidarity
12:02by having forces sent in Cyprus.
12:04And I have to say I'm quite happy that Greece and the Greek government led the way by being first.
12:10I would also add that we're also tested economically.
12:12And this is what we're going to be discussing today at the Eurogroup meeting.
12:16Energy is going to be a core element of our discussion.
12:18The impact of energy prices is significant already.
12:21And we want to see how we're going to meet that challenge on the ground as well.
12:25And just first, back to that visit in Cyprus today, the Greek Prime Minister also accompanying
12:28President Emmanuel Macron.
12:30Is the war getting closer to your home?
12:32By definition, I would say that we are concerned.
12:35And this is an area where European solidarity is absolutely essential to manifest and showcase.
12:40That's why I mentioned and I underlined that it's quite important that European states,
12:44European member states are collectively showing support to ensure the security of a member state of the European Union.
12:49And Greeks are concerned.
12:51They're already getting very concerned about the cost-of-living crisis, how this is impacting their pocket.
12:55What will you do to address these concerns?
12:56I would say that we already have a toolkit.
12:58And the toolkit is the 2022 toolkit.
13:01We're not yet there, but businesses and households are already signaling that they want to see what type of support
13:07they would receive should the crisis deepen.
13:09I think we have two key words here.
13:11The first one is duration, how long it will last.
13:15The second one is disruption.
13:17What type of crisis will it be?
13:19If you have a disruption of supply chains and maritime transport, for instance,
13:24at the Strait of Hormuz for a very long period of time,
13:26by definition, the impact is going to be different.
13:29We're looking at the price of natural gas.
13:31We're looking at the price of oil.
13:32But effectively, there are many elements of a potential disruption that we're also looking at.
13:36The price of fertilizers, air traffic, food security.
13:40There are many elements on the ground that affect the international economy.
13:44And I mentioned 2022 because the invasion of Russia and Ukraine provided us with a European toolkit of how we
13:50can manage those crises.
13:51So are we better prepared now?
13:52Of course, we're better prepared.
13:54That's why we have this deployment of a toolkit.
13:56But at the same time, we need orchestration and coordination at the European level.
14:00And this is what the Eurogroup is for.
14:01So we're going to be discussing all of those things both today and on many meetings,
14:06even at the level of the leaders, because we need a concerted European action.
14:09Because the IMF, the International Monetary Fund, have warned in a report just the other day
14:13that the consequences could be felt earlier than we even think.
14:16The key word here, I think, is uncertainty.
14:19That's why I mentioned duration.
14:20And uncertainty, we saw that with tariffs.
14:22Uncertainty has a much greater impact than a problematic policy per se.
14:27That's why you need to unleash the full potential of the European market, of the European Union.
14:31When we're discussing macroeconomic developments for the previous year,
14:35at the level of the European ministers of finance,
14:38we say that the key word for Europe is resilience.
14:41But, if we're frank, we need to underline and stress that resilience is not a growth strategy.
14:46We need much more.
14:47And Europe has a huge potential to unlock its innovation, its dynamism.
14:52We need to remove the barriers that exist between the member states of the European Union.
14:56And, if we're speaking about energy, we need a single European energy market, which we don't have.
15:01That's why energy was put on the agenda.
15:03It's not only about the here and the now, the crisis that we're having at the Gulf right now.
15:08It's much broader.
15:09It's about interconnections.
15:10It's about regulation.
15:11It's about unlocking the potential of our European energy market.
15:14We need to do all of those things at once.
15:16A lot to do, indeed, of course.
15:17But, just about the here and now, our viewers waking up this morning worrying about inflation,
15:21that it could go up again.
15:22That's why I mentioned before that we're looking very closely at the impact on oil and natural gas
15:27and, obviously, a rise in energy prices has an adverse impact on inflation.
15:32We saw that in 2022.
15:33I would say that we're not there.
15:362022 was a much deeper crisis.
15:38But, we need to be anticipatory and we need to be very well prepared.
15:42As you asked before, we're much better prepared now.
15:45But, we need to be vigilant and we need to be observing the situation on the ground.
15:48And, what about the European Central Bank?
15:50What role will they be playing here?
15:51Obviously, we believe very firmly in the independence of the European Central Bank
15:55and they have shown that they have the agility and the capability to react when it is necessary
15:59and we fully trust them.
16:01And, will that be soon, you think?
16:02I cannot comment on that because, as I mentioned,
16:04the independence of the Central Bank is for all Europeans, a sine qua non.
16:08And, are you feeling very worried right now?
16:10I would say that I feel concerned.
16:12I would say that our work, our job is to be concerned.
16:15But, at the same time, our work is to know what we need to do and when we need to
16:19do that.
16:20And, as I mentioned before, I think that we have this capacity right now, both at the level of Europe,
16:24both at the level of Brussels and at the level of the member states.
16:28And, did this war take you by surprise, Minister?
16:30In reality, we have seen a density of geopolitical events in the recent years
16:34which shouldn't be taking us by surprise at all.
16:37The things we have seen in the last six or seven years would have never been anticipated,
16:43you know, from a 2019 lens, which is when the government that I participate at came into office.
16:48But, I think that, at the same time, our capacity building has changed,
16:52both at the European level and at the national level.
16:54And, this is why, even though you cannot fully anticipate the granularity of certain events,
16:59the mentality of anti-fragility and of capacity building yourself is now here.
17:03And, is the EU speaking with one voice, do you believe, on this war?
17:07I think so.
17:08And, I mentioned Cyprus at the beginning because that was a testament of European solidarity at the diplomatic level.
17:13We need to have more concerted and more coordinated action at the economic level as well.
17:18This is our responsibility.
17:20This is why we're here.
17:21And, President Macron's visit to Cyprus today, is it diplomatic or is it really strategic for him?
17:26I think it's absolutely strategic.
17:27And, diplomacy is a core element of that strategy.
17:30All of those things are being, in a sense, being put together.
17:33Diplomacy, economic policy.
17:35Europe should speak with one voice on all fronts.
17:37This is what we need to achieve.
17:39We need strategic autonomy.
17:40But, Europe has not been speaking with one voice on all fronts.
17:42Well, that's the challenge.
17:43That's why we have the Draghi report.
17:44That's why we have the Leto report.
17:45And, this is why the whole idea is that you need a single market to begin with in order to
17:49unlock your potential,
17:51even on a sovereignty basis, not only on an economic basis.
17:53That will be the challenge of my generation in politics, I think.
17:56And, it's a challenge that should be met.
17:58We don't have the luxury of not meeting it.
18:00And, you don't have the luxury of time, given the escalation crisis right now.
18:03And, what you're saying is, effectively, an element of the European story in the past.
18:08We typically integrated crisis, metabolized crisis, into a change in policy when they were manifesting themselves.
18:14We need to become more anticipatory.
18:16We should at least integrate perfect, optimal responses to crisis.
18:20But, at the same time, we need to learn how to anticipate them.
18:22We don't have the luxury of simply reacting anymore.
18:25And, just one final question.
18:26Bulgaria recently joined the Eurozone.
18:28How is that going?
18:28It's going well, and we have a collective experience of a transition to the European currency from all the other
18:36stories,
18:37like the Greek story, for instance, that took place in the past.
18:40We're supporting the Bulgarian government, and so far, the situation has been going quite well.
18:46Okay.
18:46Thank you so much, Minister, for being our guest this morning on Europe Today,
18:49and for coming in to us here on Euronews.
18:51All the best with your busy day of talks.
18:53And that does bring this edition of Europe Today to an end.
18:57For more news and analysis, do visit euronews.com or download our app or visit all our social media sites.
19:02Thank you so much for watching.
19:04Take care, and see you soon on Euronews.
19:36Take care, and see you soon on Euronews.
19:53Take care, and see you soon on Euronews.
19:58Take care, and see you soon on Euronews.
20:00Take care, and see you soon on Euronews.
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