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02:30of President Trump and as usual it's lacking details but here we are and here's what President
02:37Trump said verbatim. Based on the request of Pakistan and other countries the tremendous
02:43military success that we've had we have mutually agreed that while the blockade will remain in
02:49full force and effect project freedom will be paused for a short period of time to see
02:54whether or not the agreement can be finalized and signed. So what does that mean? Well it will
03:01fuel optimism that the diplomatic effort led by Pakistan to end the conflict is still alive. Of
03:07course we don't know whether or not there has been any progress lately and whether Iran is willing to
03:13go along but when exchanges of fire between the Iranian and U.S. forces in the Strait of Hormuz
03:19on Monday did not reignite the war it signaled that both sides besides are willing full-scale
03:28fighting to end and that is the situation in the Strait Marit. And Stefan briefly what has been
03:35the Iranian response to this announcement from Trump overnight? Well following Trump's announcement
03:42Iran touted the U.S. failure to achieve its objectives in the so-called project freedom
03:48in a statement on INSA that's a state-run media outlet the statement further said Trump called
03:54off the operation because of warnings and firm positions from Iran. Now as it stands Iran's
04:02heartline leader are in firm control of the situation and they want to make people believe that they are
04:09the masters of the situation in the gulf right now. And what happens next may depend on whether Trump
04:15and Iran are prepared to offer each other a face-saving exit Marit. Okay Stefan thank you so
04:22much and of course we'll be keeping an eye out for developments on that story throughout the day here
04:26on Euronews. But now moving on the International Monetary Foundation has said that Europe needs to harden
04:32its economy to a more adverse global environment. In a report released yesterday the institution
04:39also warned that the war in Iran poses a serious headwind to economic growth. It said that in the
04:46most severe downside scenario the eurozone could edge closer to a recession. Now joining me in the
04:54studio this morning to discuss more is the author of that report Helga Berger who is the deputy director
05:01of IMF Europe. Good morning sir really good to have you. Good morning Maddy. We know that there's still
05:06major uncertainty over the situation in the Middle East and in Iran but as you see things this morning
05:13what is the economic outlook now for Europe? Well when we started thinking about the outlook first
05:19early in the year we thought we would be upgrading growth in Europe especially for the eurozone that's
05:24not what happened with the outbreak of the war and the higher energy prices things have taken a turn to
05:29the worse. So currently we think that growth will be around 1.1 percent this year and 1.2 percent
05:35next year
05:36is significantly lower than what we initially expected. This is because consumers feeling the
05:41pinch in their budgets they spending less investors have a higher cost of doing business so they're
05:46more careful. And in the worst case scenario because you talk about the most severe downside
05:52scenario in your report you said that the eurozone could also edge closer to a recession. Is that an
05:59increasing possibility now? We're certainly accumulating downside risk but how far this will go depends on the
06:05the war and that's anybody's guess. The upside for Europe is that it has become much more resilient
06:11in terms of renewable production and the part of renewables in the energy mix. So any increase in
06:17energy prices while still bad for the economy isn't as bad as it used to be. I'll come to that
06:22point of
06:22resilience in just a bit but I want to ask you about the response of European governments and the
06:26policies they've introduced. Have they properly weighed the costs of these interventions?
06:31It's difficult right so on the one hand you want to help households on the other hand if you do
06:36it
06:36the wrong way you dampen the price signal that comes from higher oil prices and energy prices and
06:41people will stop saving energy. So you want to target the support you want to go to the vulnerable
06:46households and help them directly where it hurts but you don't want to sort of do more damage than
06:52good with these kind of measures. And have those messages been targeted enough would you say in
06:56general? Well governments are trying. It's usually a mix of good and bad policies but most
07:03governments have in some way or the other tempered with the energy prices which is not the way it
07:08should be going. So 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. How feasible is that do you feel when so many
07:26governments are seeing a big fiscal squeeze? Well you know the countries in Europe will need to reform
07:32under pressure. That's just how it works and Europe is usually quite good at this. So we need to make
07:37progress. We need to deal with a single market which is still much more fragmented than we would like
07:42it to be. Lots of trade, lots of activity, stops at the national border. That's not what we want.
07:47Think about electricity. A unified electricity market would do wonders for the European economy.
07:52Prices would be lower. They would be less volatile. That is the way to go. Makes the European economy
07:58more resilient and growing faster in an adverse world. And very briefly to close we know there's
08:04also a big issue of Europe's competitiveness in the world right now. You did flag in that report
08:08yesterday some small concerns over some measures including the Industrial Accelerator Act, this new
08:14measure to shield homegrown industries. Industrial policy has a role to play but it's very limited
08:19where markets fail and governments need to step in. But it's not a cure-all. If you want to lift
08:24productivity, if you want higher growth, more resiliency, you have to go and do the hard reforms
08:29that help the labour market, help the product markets and as I said the single market especially
08:34for electricity, energy would do wonders for the European economy. Okay. Helge Berges, thank you so much
08:40for 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
08:51after Prime Minister Ilya Bolozhan lost a no-confidence vote yesterday, plunging the country into renewed
08:59uncertainty and raising fears of a fiscal crisis. For more, we can cross over now to Bucharest and to
09:06Euronews' Andra Diakonescu, who's standing by for us this morning. Andra, good to see you.
09:12So, the government has been toppled. What's next now for Romania?
09:18Good morning from Bucharest. Now, the President Niku Shordan has the floor because he needs to host
09:24all the talks with the political parties. He has urged all the political parties to do a coalition
09:30pro-European one. And this is now the impossible situation because Ilya Bolozhan party has just
09:38decided yesterday evening that they will go to opposition. So, now, four of the pro-European
09:46parties in Romania need to do this coalition as the President has urged. But two of them,
09:53one, Ilya Bolozhan's party, are deciding that they are not going to do that. So, it's a long
10:01period of instability here in Romania. Of course, with a society facing economic crisis, a very,
10:08very low low, 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
10:21in collaboration with the left-wing socialists. What are their next moves from the far-right?
10:29Well, they had a lot of gaining before doing this motion against the government. And, of course,
10:39they gained a lot of likes, as they were saying on Facebook yesterday. So, now, they are playing
10:46everyone. We are really looking into how they are going to do their cards in the next days,
10:53because they are saying that they can go with the Prime Minister, and they can propose, of course,
11:01to do the government at the Kotrochen Palace. But, again, Nikos Ordan has said that he doesn't want
11:08a government against EU. He wants a pro-European one.
11:12Okay, Andra, in Bucharest, for us this morning, thank you so much.
11:17Now, another EU country fighting a political
11:20deadlock is Slovenia. A knife-edge election in March
11:24delivered an inconclusive result, despite the ruling
11:27Liberals initially claiming victory. Now, former Prime Minister
11:31Janis Jansa is hinting that he could form
11:34a coalition government. For more, we're joined by
11:38Alija Pengov-Bitenk, a Slovenian political
11:40analyst and journalist. Really good to have
11:42you with us this morning. Tell us
11:44first, how likely is it in your view
11:46that Janis Jansa could return
11:48to power?
11:50Good morning, and thank you for having me.
11:53To answer a question,
11:54it is highly likely. He seems to
11:56be the only one able
11:58to command something akin to
12:00a majority in the Parliament,
12:02as shaky as that majority will
12:04probably turn out to be.
12:06And so what would that mean then for
12:09Slovenia, as you mentioned, a shaky
12:10majority, and for the European Union as well?
12:14Well, in terms of European Union,
12:16I suspect not much.
12:18Janis Jansa was
12:19something of a player in his last
12:22stint as Prime Minister,
12:23not in the least on account of
12:26Viktor Orban being in power in Hungary.
12:27And now that that has changed recently,
12:30he has lost one big
12:32potential ally.
12:33As far as Slovenia is concerned,
12:35there are, of course, challenges.
12:38The draft coalition agreement
12:40that was sort of endorsed
12:42yesterday points those out.
12:44However, the narrative that
12:46is spreading within
12:48the Janis Jansa, rather,
12:49right-wing circles in Slovenia
12:52is something quite different.
12:53And it seems to be a rather
12:55suspect return to
12:57bashing NGOs and public media,
12:59probably even academia
13:01this time around.
13:01So we might get
13:03a little bit of
13:04reform-oriented
13:05official policies
13:06and a lot of
13:07right-wing populism
13:09unofficially
13:10and narrative-wise.
13:12And very briefly to close,
13:13it was a very tight,
13:14knife-edge
13:15election.
13:16What has Slovenia, do you think,
13:18learned from that experience?
13:20Well, first of all,
13:22the fact that
13:23active citizenship
13:24can go both ways.
13:25The turnout was,
13:27this was the second election
13:28in the row
13:29with a huge turnout.
13:30So that is encouraging.
13:31But also that,
13:33you know,
13:33choices need to be made
13:35responsibly
13:36whichever way
13:37the government
13:38goes in the end.
13:39OK, Alia Pengov-Bitenk
13:41there for us.
13:41Thank you so much
13:42for that analysis.
13:44Thank you.
13:45Now we're moving on
13:46because Marco Rubio,
13:47the US Secretary of State,
13:48is heading to Rome
13:49and the Vatican
13:50to mend
13:51strained ties,
13:53as Jakob Janos explains.
13:57US Secretary of State
13:58Marco Rubio
13:59has a new mission.
14:00He visits the Holy See
14:01and Rome tomorrow.
14:03And as a Catholic,
14:04Rubio is the mediator
14:05after the fallout
14:06between Donald Trump
14:07and the first American-born pontiff,
14:09Pope Leo XIV.
14:10But what does it mean
14:12for Europe?
14:14Relations are strained
14:16after Trump publicly
14:17labeled the Pope
14:18as weak
14:18due to the Holy See's
14:20vocal opposition
14:20to the US-Israeli war
14:22on Iran.
14:22In a bid
14:24to calm tensions,
14:25Rubio is meeting
14:26Cardinal Pietro Parolin,
14:28the Vatican's top diplomat.
14:30And Parolin
14:30has been a key figure
14:32in the Vatican's
14:32calls for peace
14:33in the Iran war.
14:35And as he visits Rome,
14:37US Secretary of State
14:38will also meet
14:39with Italian
14:39Foreign Minister
14:40Antonio Tajani
14:41and Defense Minister
14:42Guido Crosetto
14:43to discuss security topics.
14:45But there is
14:46also a bigger picture.
14:48After Italian
14:48Prime Minister
14:49Giorgia Meloni
14:50defended the Pope,
14:51Trump questioned
14:52her courage
14:53and threatened
14:53to withdraw
14:54US troops
14:54from Italy.
14:55And it is
14:56no small footprint
14:57as there are
14:58currently around
14:5913,000 US military
15:00personnel
15:01based across
15:02seven naval bases
15:03in Italy.
15:04And with US
15:05midterm elections
15:06approaching,
15:07the administration
15:07is wary of
15:08alienating
15:09Catholic voters,
15:10especially as
15:11the Pope
15:11continues to say
15:12that God
15:13doesn't listen
15:13to the prayers
15:14of those who
15:15wage war.
15:16And looking back
15:17at the rich
15:18and complicated
15:19history of
15:19European Catholicism,
15:21one could even
15:21say that
15:22coming back
15:22to the Vatican
15:23after a spot
15:24is the most
15:25European thing
15:26the Trump
15:26administration
15:27has done
15:28so far.
15:33Jakob Janis there.
15:35Now,
15:36Baroness Catherine
15:37Ashton
15:37was the EU's
15:38foreign policy
15:39chief between
15:402009 and
15:412014.
15:42Just before that,
15:43she briefly served
15:44as the EU's
15:45trade commissioner
15:46and brokered a
15:47deal with the US
15:48following a
15:49long-standing dispute
15:50over beef exports.
15:52Our correspondent,
15:53Angela Skugins,
15:54caught up with
15:55Baroness Ashton
15:56yesterday and
15:57started by asking
15:58her what advice
15:59she'd have for
16:00the current EU
16:01trade chief,
16:02Maros Shevkovic,
16:03as he seeks
16:04to salvage the EU's
16:06fraught trade deal
16:07with the US.
16:09What I would say
16:10is that it's really
16:12in the interests
16:12of business
16:13right across Europe,
16:14especially,
16:15to have some
16:16consistency and
16:18certainty about
16:18the markets
16:19they're dealing
16:19with.
16:20And we do
16:21have a president
16:21that sees
16:22the willingness
16:24of others
16:26to kind of
16:26talk to him
16:27about trade
16:28as both
16:29an important
16:30part of the
16:31conversation,
16:32but in a sense
16:32almost to
16:33weaponise it,
16:34to make clear
16:35that if we
16:36don't do things
16:37that he thinks
16:38are really
16:38important,
16:39then we can't
16:40expect the benefits.
16:41And it's very
16:42transactional,
16:43and he's always
16:43been very clear
16:44as a president
16:45that he takes
16:46that view
16:47that being
16:48a transactional
16:48president is
16:50the way that
16:50he wants to
16:51go forward.
16:51And I think
16:52that's really
16:53how Europe
16:54has to respond,
16:55or any country
16:55has to respond,
16:56is to try and
16:57work through
16:58that.
16:58It is very
17:00difficult because
17:01of the changing
17:02landscape.
17:03But in the end,
17:04this all comes
17:05down to the fact
17:06that with all
17:07that's happening,
17:08especially in the
17:09Middle East
17:10right now,
17:11we are moving
17:11to a time
17:12when there are
17:13additional issues
17:14globally that
17:16we're all going
17:16to have to
17:16grapple with.
17:17And so the
17:18more that we
17:19can work
17:19together on
17:20trade,
17:20the better.
17:21During your
17:21post as the
17:22EU's top
17:23diplomat,
17:23you negotiated
17:24with Iran
17:24to temporarily
17:25curb some
17:26of that
17:27country's
17:27nuclear
17:28activities
17:29for sanction
17:30relief.
17:30You clearly
17:31know how to
17:32speak to the
17:32Middle Eastern
17:33country
17:34diplomatically.
17:35How would
17:36you currently
17:36assess the
17:37way that
17:37Trump is
17:39speaking with
17:40Tehran and
17:40the tenor
17:41from the
17:41EU as well
17:42in particular?
17:43I think
17:43there's a
17:44different
17:44approach
17:44that's
17:45being
17:45taken.
17:46It's
17:46much
17:46more
17:46to
17:47raise
17:48the
17:48temperature
17:48rather than
17:49to lower
17:49it.
17:50And it's
17:51a bit of
17:52ensuring that
17:53there's a
17:54complete clarity
17:55about what
17:55could happen.
17:56So the
17:56critical thing
17:57seems to be
17:58to address
17:58the Straits of
17:59Hormuz
17:59and to find
18:01ways that you
18:01can get
18:02these open
18:02because of
18:03the impact
18:04that it's
18:05all having
18:05globally
18:06and actually
18:07then start
18:07to build up
18:09a negotiation
18:10that can
18:10resolve the
18:11conflict
18:11altogether.
18:12The UK could
18:13pay £1 billion
18:14to have
18:15greater access
18:15to the
18:16single market.
18:17We know that
18:17the British
18:18Prime Minister
18:18Keir Starmer
18:19wants to
18:20reset relations
18:21between the
18:22EU and the
18:23UK but
18:24some critics
18:24have
18:26criticised
18:26this news
18:27stating that
18:28it's merely
18:28pay to
18:29play.
18:29What do
18:30you make
18:30of this?
18:32There's no
18:32question that
18:33Keir Starmer
18:34the Prime
18:34Minister and
18:35many of his
18:36colleagues have
18:37absolutely recognised
18:38that there is a
18:40need to get
18:40closer to the
18:41European Union
18:42and to Europe
18:42generally.
18:43That's partly
18:44because of the
18:45security and
18:46defence issues
18:47that we're
18:48confronted with
18:49not least the
18:50war in Ukraine
18:50but also the
18:52economic realities
18:53of the world in
18:54which we live.
18:55And I think
18:56all of this
18:56talk now about
18:58what money is,
18:59what should be
19:00done, how it
19:00would work.
19:01It's really all
19:02about laying the
19:02groundwork for
19:03the summit which
19:04is coming I hope
19:05in the next few
19:06months where they
19:08can actually start
19:08to bed this down
19:09and make sense
19:10of it.
19:14Our correspondent
19:15Angela Scudgen
19:16speaking to
19:16Baroness Catherine
19:17Ashton there.
19:18But that's it
19:18from us today.
19:19Thank you for
19:20choosing to start
19:21your day with
19:22Europe Today this
19:23morning.
19:23Remember we want
19:24to hear from you.
19:25Send us your
19:25feedback by emailing
19:26us at
19:27europetoday
19:27at
19:28euronews.com.
19:29And we'll see
19:29you again
19:30tomorrow.
19:32Thank you.
19:59Thank you.
20:01Thank you.
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