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00:22Продолжение следует...
00:30...that the U.S. had concluded its operations in Iran and would shift its focus to the situation in the
00:36Strait of Hormuz.
00:38Hours later, President Trump said the U.S. would pause Project Freedom, its two-day operation, to free stranded vessels
00:45from the Strait...
00:46...due to, quote, great progress in efforts to strike a deal with Iran.
00:52And Romania's pro-European government has collapsed after the Prime Minister lost a no-confidence vote yesterday...
00:59...triggering fresh political uncertainty.
01:02In Slovenia, a second round of coalition talks is due today with former Prime Minister Yanis Jansa...
01:08...saying the foundations of a coalition deal have been laid, raising the prospects of his return to power.
01:14We'll bring you more details on both those stories.
01:17In other news, Russia has launched strikes on five regions of Ukraine, including a heavy glide bomb attack on Saporizhia
01:25and Kramatorsk.
01:27At least 27 people have been killed, according to local authorities.
01:31Selensky condemned the strikes as a, quote, absolutely cynical terrorist attack.
01:37The attack came hours before a ceasefire proposed by Selensky was due to take effect.
01:43But first this morning, to our top story, because the U.S. will pause its efforts to guide ships through
01:50the Strait of Hormuz, according to President Trump.
01:53But hours before that announcement, Secretary of State Marco Rubio had suggested that the U.S.'s military operations in Iran
02:01had concluded.
02:04Operation Epic Fury is concluded. We achieved the objectives of that operation.
02:09I'm not going to, you know, we're not cheering for an additional situation to occur. We would prefer the path
02:15of peace.
02:16For more, I'm joined in the studio this morning by our correspondent, Stefan Grobe. Good to see you, Stefan.
02:22Good morning, Marit.
02:23So this announcement overnight came as quite a surprise. Bring us up to speed.
02:26Yes, it's another day and another surprise announcement of President Trump.
02:31And as usual, it's lacking details.
02:34But here we are. And here's what President Trump said verbatim.
02:39Based on the request of Pakistan and other countries, the tremendous military success that we've had, we have mutually agreed
02:46that while the blockade will remain in full force and effect,
02:50Project Freedom will be paused for a short period of time to see whether or not the agreement can be
02:56finalized and signed.
02:58So what does that mean?
03:00Well, it will fuel optimism that the diplomatic effort led by Pakistan to end the conflict is still alive.
03:07Of course, we don't know whether or not there has been any progress lately and whether Iran is willing to
03:13go along.
03:14But when exchanges of fire between the Iranian and U.S. forces in the Strait of Hormuz on Monday did
03:21not reignite the war,
03:23it signaled that both sides are willing full-scale fighting to end.
03:30And that is the situation in the Strait Marit.
03:33And Stefan, briefly, what has been the Iranian response to this announcement from Trump overnight?
03:39Well, following Trump's announcement, Iran touted the U.S. failure to achieve its objectives in the so-called Project Freedom
03:48in a statement on INSA.
03:50That's a state-run media outlet.
03:52The statement further said Trump called off the operation because of warnings and firm positions from Iran.
03:59Now, as it stands, Iran's heartline leader are in firm control of the situation.
04:05And they want to make people believe that they are the masters of the situation in the Gulf right now.
04:12And what happens next may depend on whether Trump and Iran are prepared to offer each other a face-saving
04:19exit, Marit.
04:20Okay, Stefan, thank you so much.
04:22And, of course, we'll be keeping an eye out for developments on that story throughout the day here on Iran
04:26News.
04:26But now, moving on, the International Monetary Foundation has said that Europe needs to harden its economy to a more
04:33adverse global environment.
04:36In a report released yesterday, the institution also warned that the war in Iran poses a serious headwind to economic
04:44growth.
04:45It said that in the most severe downside scenario, the eurozone could edge closer to a recession.
04:52Now, joining me in the studio this morning to discuss more is the author of that report, Helge Berger, who
04:59is the deputy director of IMF Europe.
05:02Good morning, sir. Really good to have you.
05:03Good morning, Marit.
05:05We know that there's still major uncertainty over the situation in the Middle East and in Iran.
05:10But as you see things this morning, what is the economic outlook now for Europe?
05:16Well, when we started thinking about the outlook first, early in the year, we thought we would be upgrading growth
05:22in Europe, especially for the eurozone.
05:24That's not what happened.
05:25With the outbreak of the war and the higher energy prices, things have taken a turn to the worse.
05:30So, currently, we think that growth will be around 1.1 percent this year and 1.2 percent next year,
05:36significantly lower than what we initially expected.
05:39This is because consumers feeling the pinch in their budgets, they're spending less, investors have a higher cost of doing
05:45business, so they're more careful.
05:47And in the worst case scenario, because you talk about the most severe downside scenario in your report, you said
05:54that the eurozone could also edge closer to a recession.
05:58Is that an increasing possibility now?
06:01We're certainly accumulating downside risk, but how far this will go depends on the war, and that's anybody's guess.
06:07The upside for Europe is that it has become much more resilient in terms of renewable production and the part
06:13of renewables in the energy mix.
06:16So, any increase in energy prices, while still bad for the economy, isn't as bad as it used to be.
06:21I'll come to that point of resilience in just a bit, but I want to ask you about the response
06:25of European governments and the policies they've introduced.
06:28Have they properly weighed the costs of these interventions?
06:32It's difficult, right?
06:33So, on the one hand, you want to help households.
06:34On the other hand, if you do it the wrong way, you dampen the price signal that comes from higher
06:39oil prices and energy prices, and people will stop saving energy.
06:43So, you want to target the support.
06:45You want to go to the vulnerable households and help them directly where it hurts, but you don't want to
06:50sort of do more damage than good with these kind of measures.
06:53And have those measures been targeted enough, would you say, in general?
06:56Well, governments are trying.
06:59It's usually a mix of good and bad policies, but most governments have in some way or the other tempered
07:06with the energy prices, which is not the way it should be going.
07:09So, as time passes, if the situation continues, we need to be more targeted.
07:13Okay. And you also mentioned in that report that Europe needs to harden its economy in a world of a
07:20series of shocks, in a more volatile world.
07:22How feasible is that, do you feel, when so many governments are seeing a big fiscal squeeze?
07:28Well, you know, the countries in Europe will need to reform under pressure.
07:32That's just how it works, and Europe is usually quite good at this.
07:36So, we need to make progress.
07:37We need to deal with a single market, which is still much more fragmented than we would like it to
07:42be.
07:43Lots of trade, lots of activity, stops at the national border.
07:46That's not what we want.
07:47Think about electricity.
07:48A unified electricity market would do wonders for the European economy.
07:52Prices would be lower.
07:54They would be less volatile.
07:55That is the way to go.
07:56It makes the European economy more resilient and growing faster in an adverse world.
08:01And very briefly, to close, we know there's also a big issue of Europe's competitiveness in the world right now.
08:07Now, you did flag in that report yesterday some small concerns over some measures, including the Industrial Accelerator Act, this
08:13new measure to shield homegrown industries.
08:16Industrial policy has a role to play, but it's very limited, where markets fail and governments need to step in.
08:22But it's not a cure-all.
08:23If you want to lift productivity, if you want higher growth, more resiliency, you have to go and do the
08:28hard reforms that help the labour market, help the product markets.
08:32And as I said, the single market, especially for electricity, energy, would do wonders for the European economy.
08:38Okay.
08:39Helga Berges, thank you so much for joining us in the studio this morning and for all your insights.
08:44My pleasure.
08:45Now, we're moving on now because Romania's pro-European coalition government has been toppled after Prime Minister Ilya Bolozhan lost
08:54a no-confidence vote yesterday, plunging the country into renewed uncertainty and raising fears of a fiscal crisis.
09:03For more, we can cross over now to Bucharest and to Euronews' Andra Diakonescu, who's standing by for us this
09:10morning.
09:10Andra, good to see you.
09:12So, the government has been toppled.
09:13What's next now for Romania?
09:17Good morning from Bucharest.
09:19Now, the president, Niku Shordan, has the floor because he needs to host all the talks with the political parties.
09:26He has urged all the political parties to do a coalition pro-European one.
09:32And this is now the impossible situation because Ilya Bolozhan's party has just decided yesterday evening that they will go
09:41to opposition.
09:42So, now, four of the pro-European parties in Romania need to do this coalition, as the president has urged.
09:52But two of them, one, Ilya Bolozhan's party, are deciding that they are not going to do that.
09:59So, it's a long period of instability here in Romania, of course, with a society facing economic crisis, a very,
10:08very low level besides euro, and, of course, political instability.
10:15And, Andra, very briefly, the AUR party, the far-right party, also filed this motion of censure in collaboration with
10:23the left-wing socialists.
10:24What are their next moves from the far-right?
10:29Well, they had a lot of gaining before doing this motion against the government.
10:38And, of course, they gained a lot of likes, as they were saying on Facebook yesterday.
10:44So, now they are playing everyone.
10:46We are really looking into how they are going to do their cards in the next days, because they are
10:54saying that they can go with the prime minister, and they can propose, of course, to do the government at
11:02the Kotrochen Palace.
11:03But, again, Nikos Ordan has said that he doesn't want a government against EU.
11:10He wants a pro-European one.
11:12Okay, Andra, in Bucharest for us this morning, thank you so much.
11:16Now, another EU country fighting a political deadlock is Slovenia.
11:22A knife-edge election in March delivered an inconclusive result, despite the ruling Liberals initially claiming victory.
11:30Now, former Prime Minister Janice Jansa is hinting that he could form a coalition government.
11:35For more, we're joined by Alija Pengov-Bitenk, a Slovenian political analyst and journalist.
11:42Really good to have you with us this morning.
11:44Tell us first, how likely is it in your view that Janice Jansa could return to power?
11:50Good morning, and thank you for having me.
11:52To answer a question, it is highly likely.
11:55He seems to be the only one able to command something akin to a majority in the parliament, as shaky
12:03as that majority will probably turn out to be.
12:06And so, what would that mean, then, for Slovenia, as you mentioned, a shaky majority, and for the European Union
12:12as well?
12:14Well, in terms of European Union, I suspect not much.
12:18Janice Jansa was something of a player in his last stint as Prime Minister, not in the least on account
12:25of Viktor Orban being in power in Hungary.
12:28And now that that has changed recently, he has lost one big potential ally.
12:33As far as Slovenia is concerned, there are, of course, challenges.
12:37The draft coalition agreement that was sort of endorsed yesterday points those out.
12:44However, the narrative that is spreading within the Janice, or rather right-wing circles in Slovenia, is something quite different.
12:54And it seems to be a rather suspect return to bashing NGOs and public media, probably even academia this time
13:01around.
13:01So, we might get a little bit of reform-oriented official policies and a lot of right-wing populism unofficially
13:10and narrative-wise.
13:11And very briefly, to close, it was a very tight, knife-edge election.
13:16What has Slovenia, do you think, learned from that experience?
13:20Well, first of all, the fact that active citizenship can go both ways.
13:25The turnout was, this was the second election in a row with a huge turnout.
13:30So, that is encouraging.
13:31But also that, you know, choices need to be made responsibly, whichever way the government goes in the end.
13:38Okay, Alia Pengov-Bitenk there for us.
13:41Thank you so much for that analysis.
13:44Thank you.
13:44Now, we're moving on because of Marco Rubio, the U.S. Secretary of State, is heading to Rome and the
13:50Vatican to mend strained ties, as Jacobianus explains.
13:57U.S. Secretary of State, Marco Rubio, has a new mission.
14:00He visits the Holy See and Rome tomorrow.
14:03And as a Catholic, Rubio is the mediator after the fallout between Donald Trump and the first American-born pontiff,
14:09Pope Leo XIV.
14:10But what does it mean for Europe?
14:14Relations are strained after Trump publicly labeled the Pope as weak, due to the Holy See's vocal opposition to the
14:21U.S.-Israeli war on Iran.
14:22In a bid to calm tensions, Rubio is meeting Cardinal Pietro Parolin, the Vatican's top diplomat.
14:30And Parolin has been a key figure in the Vatican's calls for peace in the Iran war.
14:35And as he visits Rome, U.S. Secretary of State will also meet with Italian Foreign Minister Antonio Tajani
14:41and Defense Minister Guido Crosetto to discuss security topics.
14:45But there is also a bigger picture.
14:48After Italian Prime Minister Giorgia Meloni defended the Pope,
14:51Trump questioned her courage and threatened to withdraw U.S. troops from Italy.
14:55And it is no small footprint, as there are currently around 13,000 U.S. military personnel,
15:01based across seven naval bases in Italy.
15:03And with U.S. midterm elections approaching, the administration is wary of alienating Catholic voters,
15:10especially as the Pope continues to say that God doesn't listen to the prayers of those who wage war.
15:16And looking back at the rich and complicated history of European Catholicism,
15:21one could even say that coming back to the Vatican after a spot
15:24is the most European thing the Trump administration has done so far.
15:33Jakob Janis there.
15:35Now, Baroness Catherine Ashton was the EU's foreign policy chief between 2009 and 2014.
15:42Just before that, she briefly served as the EU's trade commissioner
15:46and brokered a deal with the U.S. following a long-standing dispute over beef exports.
15:52Our correspondent, Angela Skugins, caught up with Baroness Ashton yesterday
15:57and started by asking her what advice she'd have for the current EU trade chief,
16:02Maros Shevkovic, as he seeks to salvage the EU's fraught trade deal with the U.S.
16:09What I would say is that it's really in the interests of business right across Europe,
16:14especially, to have some consistency and certainty about the markets they're dealing with.
16:20And we do have a president that sees the willingness of others to kind of talk to him about trade
16:28as both an important part of the conversation, but in a sense almost to weaponise it,
16:34to make clear that if we don't do things that he thinks are really important,
16:39then we can't expect the benefits.
16:41And it's very transactional.
16:42And he's always been very clear as a president that he takes that view that being a transactional president
16:49is the way that he wants to go forward.
16:51And I think that's really how Europe has to respond, or any country has to respond,
16:56is to try and work through that.
16:58It is very difficult because of the changing landscape.
17:03But in the end, this all comes down to the fact that with all that's happening,
17:08especially in the Middle East right now, we are moving to a time when there are additional issues
17:14globally that we're all going to have to grapple with.
17:17And so the more that we can work together on trade, the better.
17:21During your post as the EU's top diplomat, you negotiated with Iran to temporarily curb
17:26some of that country's nuclear activities for sanction relief.
17:30You clearly know how to speak to the Middle Eastern country diplomatically.
17:35How would you currently assess the way that Trump is speaking with Tehran
17:40and the tenor from the EU as well in particular?
17:43I think there's a different approach that's being taken.
17:45It's much more to raise the temperature rather than to lower it.
17:50And it's a bit of ensuring that there's a complete clarity about what could happen.
17:56So the critical thing seems to be to address the Straits of Hormuz and to find ways that
18:01you can get these open because of the impact that it's all having globally and actually
18:06then start to build up a negotiation that can resolve the conflict altogether.
18:12The UK could pay £1 billion to have greater access to the single market.
18:17We know that the British Prime Minister, Keir Starmer, wants to reset relations between the
18:22EU and the UK, but some critics have criticised this new stating that it's merely pay to play.
18:29What do you make of this?
18:31There's no question that Keir Starmer, the Prime Minister, and many of his colleagues have
18:37absolutely recognised that there is a need to get closer to the European Union and to Europe
18:42generally.
18:43That's partly because of the security and defence issues that we're confronted with, not least
18:49the war in Ukraine, but also the economic realities of the world in which we live.
18:55And I think all of this talk now about what money is, what should be done, how it would
19:00work, is really all about laying the groundwork for the summit, which is coming, I hope, in
19:05the next few months, where they can actually start to bed this down and make sense of it.
19:13Our correspondent, Angela Scudgen, speaking to Baroness Catherine Ashton there.
19:18But that's it from us today.
19:19Thank you for choosing to start your day with Europe Today this morning.
19:23Remember, we want to hear from you.
19:25Send us your feedback by emailing us at europetoday at euronews.com.
19:29And we'll see you again tomorrow.
20:00We'll see you again tomorrow.
20:00Bye.
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