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Europe Today: EU Commissioner Dombrovskis weighs in on Iran war and Ukraine
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READ MORE : http://www.euronews.com/2026/03/12/europe-today-eu-commissioner-dombrovskis-weighs-in-on-iran-war-and-ukraine
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NewsTranscript
00:14Good morning, it is Thursday the 12th of March. I'm Maeve McMahan and this is Europe Today.
00:20Your daily dose of European news and analysis live here on Euronews.
00:25Coming up in signs the war in Iran is escalating even more.
00:30Iran's Revolutionary Guards now say they've struck a Liberia-flagged vessel they claim is Israeli-owned.
00:36Iran had promised to only target ships linked to the US or Israel, but another Thai carrier was also struck
00:43in the Strait of Hormuz.
00:44The Israeli military, meanwhile, says it has identified missiles launched from Iran towards Israel and that air defence systems are
00:51working to intercept them.
00:52This while thousands continue to flee southern Lebanon and the International Energy Agency says its member countries could release up
00:59to 400 million barrels of oil from their reserves to ease the impact of the war.
01:04And French President Emmanuel Macron has said Iran's military capabilities had been weakened but not, quote, reduced to zero by
01:11US and Israeli strikes.
01:12He made the comments after a meeting with G7 leaders, including President Donald Trump.
01:17For more on that G7 meeting, we can head straight to Paris and bring in Euronews' France correspondent, Sofia Katzenkova,
01:24who's outside the Elysee Palace for us this morning.
01:26Good morning, Sofia.
01:28Look, France is pushing here for a coordinated response to the energy shock caused by the war in the Middle
01:33East.
01:33But what exactly can President Macron do?
01:37Well, speaking after the talk with leaders of the G7, which France currently chairs, French President Emmanuel Macron confirmed that
01:47countries had agreed to release 400 million barrels from strategic oil reserves.
01:54The move is designed to calm market prices as the conflict threatens shipping through the Strait of Hormuz, one of
02:02the world's most critical oil routes, which handles about a fifth of global supply.
02:09Macron said that the release would be equivalent to roughly 20 days of oil normally transiting through the Strait of
02:17Hormuz.
02:17But the French leader also insisted that the current energy shock should not change policy towards Moscow, despite the pressure
02:27on global oil markets.
02:29Let's take a listen.
02:32The situation is in no way justifying lifting the existing sanctions against Russia, which should continue.
02:39This situation should obviously not reduce our attention to Ukraine, our support for Ukraine and the clarity we have regarding
02:46sanctions against Russia.
02:52So these comments come as U.S. President Donald Trump suggested earlier this week that some oil sanctions could potentially
03:00be lifted to ease pressure on markets, though he did not specify whether that would apply to Russia.
03:08And that's why Macron kept insisting yesterday that the war in the Middle East must not overshadow what's happening in
03:16Ukraine, where Russia's full-scale invasion has entered its fifth year.
03:21The French president is due to host his Ukrainian counterpart, Volodymyr Zelensky, in Paris tomorrow, where the two leaders are
03:29expected to discuss ways to increase pressure on Russia.
03:34Back to you, Brussels.
03:35Indeed, and we'll likely come back to you tomorrow for an update on that very important meeting.
03:39Sophia Katsinkova, thank you so much for that live broadcast there from Paris.
03:44Now, back in Brussels, there is major concern over the potential shocks this war could have on the European economy,
03:50from high inflation to low growth.
03:52The EU Commission is mulling next steps.
03:54For more, very shortly, we'll be joined here by the European Commissioner for the Economy, Valdis Dombrovsky.
03:59But first, let's bring in Eurion News' EU editor, Maria Tadeo, for some more context.
04:03Maria, good morning. What is at stake here for the European economy?
04:06Good morning. So it's very much the scenario of stagflation that you allude to, one in which, obviously, growth is
04:11impacted, and then you see inflation pick up,
04:14mostly because of the energy story that is playing out around the Strait of Hormuz, but also the Gulf countries,
04:20where they're not just producers of oil, but they're also key in the transportation.
04:24Yesterday, we saw this emergency release of strategic reserves of oil to the tune of 400 million barrels.
04:31Obviously, the idea is that this is going to ease some of the price pressure.
04:34But, of course, as long as the war continues, there is a big question mark as to whether you can
04:39stabilize a market so volatile with such uncertainty playing out on the ground.
04:45And, Maeve, to that point, indeed, we are now joined by the Commissioner for the Economy, Valdis Dombrovsky, who joins
04:51us here in the studio.
04:52Good morning.
04:53Good morning.
04:54Commissioner, just a very simple question. How bad is it going to get for Europe?
04:59Well, the economic impact of current crisis in the Middle East, to a large extent, will depend on how long
05:07the conflict will continue, how wide it will spread.
05:11So, in a sense, if we manage to achieve a quick escalation, the impact may be limited.
05:17If it gets protracted and correspondingly both with disruptions for oil shipping and oil and gas production, that, indeed, as
05:28you mentioned, can create a stagflationary shock for the European economy,
05:32where, due to the elevated energy prices, it peaks in a broader inflation and also negatively affects growth through confidence
05:42effects, through disruptions in supply chains, and through tighter financing conditions.
05:48So then what are you going to do as a Commission?
05:50Because we see the capital saying the European industry cannot deal with another energy shock.
05:54We need measures.
05:55And the Commission is going back to the Member States saying cut taxes on things like electricity.
05:59So what's going to happen in the short term, in specific terms?
06:02Well, in the short term, as you already mentioned, it's a question of releasing the oil reserves, which we have,
06:09which can add substantial volumes to the market,
06:12and which are meant exactly for situations like this, where we are facing disruptions.
06:18But the market did not take that as a positive. Oil prices still went up.
06:22Well, there we must see what are the reasons for this.
06:27First, we see that oil prices are very volatile.
06:29Second, Iran was hitting a major oil storage in Oman.
06:34It basically continues to target energy infrastructure in neighboring countries.
06:38So this volatility is certainly linked with this.
06:43And those oil reserves volumes have not reached the market yet.
06:48And do you believe, and you've dealt with the U.S. administration many years now,
06:52do they have a plan?
06:53Because I'm confused.
06:54Is this a war or just an excursion?
06:55I listen to President Trump.
06:57I hear 20 different things a day.
06:59Well, I cannot tell this on behalf of U.S. administration.
07:04But what's your impression?
07:06Also, there were no prior consultations with the EU before taking those steps.
07:12But what's important right now is to work towards quick de-escalation of the conflict.
07:17And from the EU side, we are also engaged with the countries of the region aiming for that.
07:22And let's talk about Ukraine, because obviously you are very supportive of Ukraine.
07:25I think everyone knows this.
07:26By now, there's a loan of 90 billion euros that is blocked by Hungary.
07:30There is no indication that the president or the prime minister of Hungary is going to budge.
07:35And at the time in December, we were told that if Ukraine didn't get the money by April,
07:38they would collapse.
07:39April is around the corner.
07:40So what's going to happen?
07:41Well, first of all, in between, we have finalized legislative work on a number of things,
07:47of Ukraine support and regulation.
07:49We are also amendments to Ukraine facility.
07:53We are working with Ukrainian authorities on all the documents which are necessary,
07:57like memorandum of understanding, financing, strategy.
08:01The man is Orban, but it comes down to Orban.
08:02How do you deal with Orban?
08:03No, no, but so basically the missing element is amendments to the multi-annual financial framework,
08:09which would allow the commission actually to go to the market and borrow.
08:14And this indeed we need by April, and we continue this strong engagement.
08:20There was commitment from all 27 member states to do those amendments to our multi-annual financial framework.
08:30But do you have to wait until the Hungarian election?
08:32Is this now ultimately the elephant in the room, whether he gets elected or not?
08:36Well, it has been said before that we will ensure this support one way or another.
08:42With or without Hungary?
08:43We expect, obviously, Hungary to honor its commitments,
08:47which also Prime Minister Orban took in December last year.
08:50And it's worth reminding that Hungary is not even paying for that support.
08:54Okay, well, Commissioner, thank you very much, of course, for joining us on Euronews this morning.
08:58Thanks so much.
08:58Now, thank you so much as well, Maria, for that.
09:01Now, moving on, as global instability continues, the Strait of Hormuz, of course, has become in the eye of the
09:09storm.
09:09But it's actually not the first time it's in the eye of the geopolitical storm, as R. Jakobianus reports.
09:16The narrow Strait of Hormuz, despite being a waterway, is starting to become a literal geopolitical landmine.
09:23A fifth of the world's oil flows here.
09:26For Washington, any disruption means higher petrol prices and food inflation.
09:31A nightmare for the upcoming midterms.
09:34And for Iran, the waterway is their ultimate leverage.
09:37Tehran has vowed not to allow even a single liter of oil reach its enemies.
09:43And in response, the U.S. says it has destroyed 16 Iranian mine-laying vessels.
09:49But hey, we've been here already, so who's up for a history lesson?
09:54Mines are the poor man's weapon of naval warfare.
09:58They are dangerously cheap.
09:59And basic contact mines can cost as little as a few thousand dollars.
10:04Yet, they can disable a billion-dollar warship or a supertanker just in seconds.
10:09And during the 1980s Iran-Iraq war, specifically the tanker war, Iran filled the same waters with mines to halt
10:19Iraqi exports.
10:21And in 1988, after a U.S. frigate was nearly sunk by an Iranian mine, the Ronald Reagan administration responded
10:28firmly, launching Operation Praying Mantis.
10:32Historians say that in a single day, the U.S. Navy dealt a devastating blow to Iranians' operational fleet.
10:39The message was clear.
10:41Mess with the oil, and you will lose your navy.
10:44Because of disruptions in the straits, Iraq, which relies on oil for 90% of its revenue,
10:51is now desperately exploring alternative routes through Syria, Jordan, and Turkey.
10:55And for Europe, this crisis proves that swapping Russian oil for Gulf crude meant simply trading one dependency for another.
11:04So maybe it would signal a revival of decentralized green energy.
11:09After all, if the climate argument becomes too polarizing, it could be now about military and energy sovereignty.
11:21Jakob Janus reporting for us there.
11:23And as global instability continues to worsen, particularly in Iran and the rest of the Gulf,
11:28NATO has been carrying out military exercises in the high north and in Norway, known as cold response.
11:34It involves 14 NATO countries.
11:36And for more, your news correspondent Shona Murray joins us now from Norway.
11:40Well, good morning, Maeve.
11:41We're here in the Arctic covering NATO's cold response military exercise,
11:45which is part of the Arctic Sentry military exercise, which was agreed amongst allies back in January
11:50to deal with the political chaos that ensued at NATO when Donald Trump said he wanted to take over Greenland.
11:56We're stationed at a Norwegian coastal corvette, which is the fastest military vessel in the world.
12:02And all around us, we have military personnel who are taking part in this exercise.
12:07There's around 25,000 soldiers from the United States, from all across NATO alliance.
12:12But what we heard in the last few days is at least one squadron of U.S. Marine F-35s
12:17have been redirected
12:18from this exercise to the Middle East to deal with the conflict that is ongoing there.
12:23Now, NATO is not a party to that conflict.
12:25But in the last week, Turkey has had to intercept two ballistic missiles coming from Iran.
12:31So there are concerns in NATO that NATO could get dragged into the situation.
12:35In response, NATO has delivered patriot defense systems to the southern part of Turkey
12:40and also has heightened its defense posture, saying that they will defend the whole of the territory.
12:46But I caught up with a commander from the Norwegian Air Force.
12:49And I asked him about NATO's readiness and capabilities, both in the theater of the Arctic and in the Middle
12:55East.
12:56Well, we need to be prepared for war.
12:59So every day, we are making sure that we are taking the right decisions.
13:05So this base will be prepared for war.
13:07And one thing is if the war comes, we will fight it.
13:11The other thing is if we are prepared enough, we want Putin to wake up in the morning
13:17and say that maybe NATO is too prepared for a war today.
13:21So we need to postpone that.
13:24We've seen in the past week ballistic missiles entering its Turkish airspace.
13:28I mean, how do you think that situation can escalate in relation to NATO?
13:32Well, I don't think I want to go into details about the world situation.
13:37But I can say that if Article 5 is in effect, then Norway is also in war,
13:45even though the attack is somewhere else.
13:51Shona Murray reporting for us there.
13:53Now moving on in other news, Ukraine is seeking support from the European Union
13:57to get their money and valuables back from the Hungarian government.
14:01Last week, Prime Minister Viktor Orban seized cash and gold from a Ukrainian bank
14:05amid an ongoing tax authority investigation.
14:08Your news is Ukraine correspondent Sasha Vakilina is across this serious spat
14:12between Kyiv and Budapest and joins me now here on set.
14:15But Sasha, so we understand the staff have been released, but what about the valuables?
14:19Indeed, the staff have been released after 28 hours being detained in Hungary
14:24and being interrogated in Hungary.
14:26But the valuables, the gold and the money in the shipment in total worth something like
14:30$82 million remains in Hungary.
14:33And it's been exactly one week since now.
14:36This shipment was going from Austria to Ukraine by Hungary by road.
14:40The reason it was going by road is because, of course, the airspace in Ukraine remains closed
14:44for over four years since Russia's full-scale invasion of Ukraine.
14:47And Ukraine's state-owned Oshchad Bank and also the National Bank of Ukraine
14:52are now trying to bring back that shipment of the cash and the gold back to Ukraine, Maeve.
14:58OK, Sasha Vakilina, thank you so much for that.
15:00And actually, for the view from Ukraine, we can now cross over to Kyiv and speak to Sergei Nikolakchuk,
15:05first deputy governor from the National Bank of Ukraine.
15:08Good morning, Sergei. Thank you so much for joining us here on Europe Today on Euronews.
15:13So we understand the Commission has received your official letter.
15:16Have you gotten a response yet?
15:18For European partners to ensure that this incident does not remain without an appropriate response,
15:25our requests will be addressed to the EU High Representative for Foreign Affairs and Security Policy,
15:33the leadership of European Commission, Directorate General for FISMA, European Central Bank, Austrian National Bank.
15:42And at this stage, we are still awaiting former replies from our counterparts.
15:49And what kind of support does Kyiv want and expect from Brussels here?
15:55Well, we expect an impartial and transparent review of this case with clear conclusions
16:04that would demonstrate in practice that European Union's commitment to the rule of law.
16:11It is important that the European Commission and other relevant EU institutions have full access to all necessary information
16:19and documentation in order to provide their own independent assessment of the actions taken by the Hungarian side.
16:28From our side, we are standing ready to provide any information required to cooperate fully with the European partners.
16:36And tell us about the direct contact between Kyiv and Budapest.
16:39How's that going here?
16:42Communication with the Hungarian side is being handled by our Ministry of Foreign Affairs,
16:49which is leading the efforts to resolve the situation through diplomatic channels.
16:55Also, Oshad Bank, together with its legal advisors, is working to clarify all circumstances of the case
17:03and remains in contact with the Hungarian authorities with the Hungarian authorities with the aim of resolving the issue of
17:09the cargo
17:09and as well as ensuring the protection of the rights and interests of the financial institutions and its employees.
17:17From the NBU side, from the NBU, we facilitate all these efforts.
17:24And just on that point of clarification, how routine is this kind of cash and property transport to other countries?
17:29Well, that is the regular and common practice to transport cash from Austrian Bank to Ukraine by Oshad Bank and
17:45many other countries.
17:47Actually, yes, so we reviewed and we may confirm that the cargo has been properly documented.
17:56We see no irregularities in the practice of international transportation of cash between banks.
18:03And actually, it is also important to note that Raiffeisen Bank International,
18:09which is one of the main suppliers of a fixed cash to Ukrainian banks,
18:14confirmed in its statement that it had provided the relevant authorities with all required documentation related to these cash management
18:22operations.
18:23So how would you describe the whole case? Do you consider it a confiscation?
18:28Well, from our point of view, the actions taken by the Hungarian authorities raise serious concerns
18:34and suggest that this case goes beyond purely procedural or security related issues.
18:41From the very beginning, the sequence of events has indicated that the situation has a political dimension
18:46rather than being a standard legal or regulatory matter.
18:52The facts speak for themselves.
18:57OK, Sergei Nikolai Chuk, thank you so much for joining us here this morning on Europe Today on Euronews.
19:02For more, of course, on that story and on that ongoing investigation, do take a look at Sasha Vakalina's reporting
19:07and, of course, Chandr Zeros, our Hungarian reporter, his reporting as well on Euronews.com.
19:12But that does bring this edition of Europe Today to an end.
19:15Thank you so much for your company, as always.
19:17We'll be back, of course, tomorrow, Friday, bright and early here on Euronews with a fresh edition of Europe Today.
19:22Don't miss it.
19:27We'll be back to you.
19:29We'll be back.
19:30We'll be back.
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