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Europe Today: EU economy chief Dombrovskis rules out easing Russia sanctions despite inflation fears
After the EU downgraded its economic growth forecast and warned of rising inflation, EU economy chief Valdis Dombrovskis tells Europe Today the bloc will not ease Russia sanctions, unlike the US and UK, despite pressure to cushion the energy crisis linked to the Iran war.
READ MORE : http://www.euronews.com/2026/05/22/europe-today-eu-economy-chief-dombrovskis-rules-out-easing-russia-sanctions-despite-inflat
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After the EU downgraded its economic growth forecast and warned of rising inflation, EU economy chief Valdis Dombrovskis tells Europe Today the bloc will not ease Russia sanctions, unlike the US and UK, despite pressure to cushion the energy crisis linked to the Iran war.
READ MORE : http://www.euronews.com/2026/05/22/europe-today-eu-economy-chief-dombrovskis-rules-out-easing-russia-sanctions-despite-inflat
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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00:14Good morning, it's Friday the 22nd of May. This is Europe Today and I'm Maret Gwyn bringing you
00:22the headlines and analysis to start your morning live here from Brussels. Coming up today after
00:28the EU downgraded its economic growth forecast and warned of a sharp rise in inflation yesterday,
00:34the EU's economy chief, Valdis Dombrovskis, tells this programme the EU will not ease
00:40sanctions on Russia as the US and UK have done to cushion the energy crisis caused by
00:46the Iran war. And the EU and Mexico are expected to sign a revamped trade and cooperation deal
00:53in Mexico City later today after a decade of negotiations. It adds to a string of trade
01:00deals clinched by the EU in recent months as it aims to diversify trading partners in a
01:05more volatile world. We speak to the European Parliament's Vice President Javi López from
01:11Mexico. Also, as the Cannes Film Festival wraps up this weekend, we ask whether this year's
01:18event has been the most politically charged to date, as debates over war, power, ideology
01:25and influence dominate the headlines. But first, to our top story this morning. The European
01:32Commission has lowered its growth outlook for 2026 and warned of a spike in inflation as the
01:39energy crunch continues to rattle the economy. Governments across the EU are taking different
01:45approaches to shield households and businesses from rising costs, while the International Monetary
01:50Fund has warned the bloc cannot simply subsidise its way through this crisis. For more on this,
01:56I'm joined on set by Euronews' Luca Bertuzzi. Luca, good morning, good to have you with us.
02:00Thank you and good morning to you.
02:02So, tell us first, just for a bit of context, Giorgio Meloni, the Italian Prime Minister, for example,
02:08has wrote to the Commission President von der Leyen asking for financial flexibility to tackle
02:13this crisis. Is she getting a response?
02:16Well, we're going to see a response soon, I think, because this is a very strong political
02:21message that Meloni sent to us for fiscal flexibility at a time of an energy crunch in
02:27Europe. She invoked political courage and said that the energy security should be treated as a
02:34European strategic priority alongside defence spending. So, Italy, let's keep in mind, is among the
02:42highest energy costs in Europe, alongside Germany and Belgium. And the stakes are so high that Meloni
02:48said that if not enough fiscal flexibility is provided, Italy might withdraw from the SAFE programme,
02:56which is the EU programme, to finance defence spending with low interest loans.
03:00And we also heard the Hungarian Prime Minister Peter Maggia suggesting the EU might need to
03:06contemplate buying Russian energy once again, once the war in Ukraine ends. What is the line
03:11that Brussels is taking on this?
03:14Yeah, and we'll hear more about this. But so far, the line has been a firm no. Still, European governments
03:21are facing increasing domestic pressure, as energy costs are taking a toll on the economy. And they might be tempted
03:30to
03:30ease sanctions on Russian relatively cheap energy imports. Ukraine's recent history, of course, has shown that
03:38energy dependence can be weaponised. Still, changing posture now for the EU would be a major shift after four years
03:46of war.
03:47But the pressure is mounting. We saw this week that the UK government has sparked a public backlash when it
03:54appeared to
03:55issue a waiver on sanctions for Russian gas and oil. London described it as a miscommunication.
04:03But it's clear that the energy crisis is also biting the UK economy. Last month, we saw the CEO of
04:09Eni,
04:10Italy's largest energy company saying that there should be a suspension of on the ban on Russian gas
04:16imports. Italian, the Italian government has so far distance itself from this position. But several key
04:24European countries are heading to elections next year, including Italy.
04:28Okay, Luca. And in fact, our Europe editor Maria Tadeo spoke to the Economy Commissioner Valdez
04:33Dombrovskis yesterday. And she started by asking him about this, about whether the EU would have to
04:39contemplate easing sanctions on Russian commodities, as the US and UK have done done to ease the impact
04:45of the energy crisis on Europeans.
04:48Well, we already saw back in 2022 that Russia tried to use its fossil fuel supplies as a tool for
04:56blackmail
04:57and manipulation. And we paid a quite dear economic price for having this dependency from Russia.
05:05So therefore, there's no point of going back to this. We have diversified our supplies. Our largest gas
05:10supply is now Norway. Our largest LNG supplier is US and so on. So there's strategic decisions taken to
05:20move away completely from Russian oil and gas. And we have to follow it through.
05:26But you rule out, because this is very important, that by the winter, by Christmas, the temperatures going down,
05:32that the EU will not take any measures easing sanctions on Russian energy at any level.
05:38Well, if anything, we need to strengthen sanctions against Russia, not ease, because actually Russia is a country
05:44benefiting from this conflict in the Middle East and those higher energy prices, getting substantial windfall profits.
05:51So we should not facilitate it further. And it's worth noting that already now we started the process of refilling
06:01our gas storages. Well, it's currently goes, so to say, within the historical range of this time of the year.
06:10That's something we in any case need to do. We need to prepare ourselves for the next winter.
06:14But you don't feel blackout. So you don't fear that once again, as we talked about in 2022, there was
06:20a real fear that Europe would come to a halt.
06:23It will grind to a halt that the industry would not be able to operate because of a shortage of
06:27supplies.
06:28You don't expect that to be the case by the end of the year.
06:31No, we do not expect this to be the case now.
06:35No, indeed, as there was this risk back in 2022 or winter from 22 to 23, exactly because we were
06:43dependent from Russian fossil fuel supply.
06:46So we should not get back there.
06:48This week, the head of the Italian government sent a letter to the commission.
06:52By now, it's very clear that Giorgia Meloni believes the commission is not taking her concerns seriously.
06:57She says that this is just as equally important energy to defense.
07:01What are you going to offer the Italian prime minister that is going to placate her anger?
07:05Because by now it's clear they are not satisfied with the measures you provided.
07:08We are obviously now looking at policy options and also our fiscal policy response.
07:16But the main message in the case remains that the support measures need to be temporary and targeted.
07:23The ones which are not sustaining or increasing demand for fossil fuels.
07:29So on one hand, not just to perpetuate higher energy demand and thus higher global energy prices.
07:36Because we are facing supply shock.
07:38So we cannot resolve it by stimulating demand.
07:41And second, we must keep in mind also more limited fiscal room of maneuver and also flexibilities already existing in
07:53our fiscal framework.
07:55We have a number of automatic stabilizers which can play out, which allows for, in a sense, certain fiscal buffer
08:00before even member states come with discretionary measures.
08:04But we are doing this assessment and preparing it.
08:06So you're listening to her concerns?
08:08Well, we certainly are listening to the concerns of member states and looking appropriate policy response.
08:17That was the European Commissioner for the Economy, Valdis Dombrovskis, speaking to Maria Tadeo.
08:23Now, moving on, Hungarian Prime Minister Peter Magyar is pushing to revive the so-called Visegrad or V4 group,
08:31which brings together Poland, Slovakia, the Czech Republic and Hungary.
08:35Magyar has even pitched expanding the group.
08:38Jakub Janis tells us more.
08:41Peter Magyar's first official foreign trip to Poland wrapped up yesterday.
08:45And now, when the diplomatic dust is settling, all eyes are now on the sudden resurrection of the group called
08:50Visegrad IV.
08:51And if you are a bit unsure what this shift actually means for Europe, or even what the group is
08:56about, let's break it down together.
09:00The V4 was set up in the early 1990s to guide these post-communist neighbors into the West.
09:05But beyond geography, Poland, Czechia, Slovakia and Hungary are bound by the same massive Central European automotive and manufacturing supply
09:13chains.
09:14But also a shared goal to protect billions in EU cohesion funding.
09:19And their most significant political impact came over 10 years ago in 2015,
09:24when their coordinated resistance forced Brussels to abandon mandatory migration quotas.
09:30And what's interesting, this is no longer the poor relation of Western Europe.
09:34Central Europe enters this new chapter with economic strength.
09:38Just look at the data.
09:40Last year, Poland led the continent with a booming 4% real household income growth,
09:45while Germany lagged at 0.6%.
09:48And Austria's household income even declined.
09:51And this wealth flip gives the region confidence.
09:54Magyar is even pitching a bold plan to merge the V4 with Austria,
09:58with reports suggesting Vienna is receptive to a Benelux-style alliance.
10:02But let's be realistic.
10:04Can this block actually deliver anything tangible?
10:07Critics point out that the V4 group has historically struggled to look beyond its own internal divisions.
10:13And in the past, cooperation was derailed by fears of revived Austrian hegemony.
10:18And even today, old bilateral disputes between neighbors like Slovakia and Hungary still cause friction.
10:24And acting as one voice in Brussels will not be seamless.
10:28And while the countries aim to cooperate on a regional energy and transport infrastructure,
10:33geopolitical fault lines remain.
10:35Hungary, Czechia and Slovakia, unlike Poland,
10:38are opting out of EU's 90 billion euro loan package for Ukraine.
10:42So will potential divisions stop this block from making a real impact?
10:45Only time will tell.
10:47But with Magyar finally in default,
10:50it turns out the three musketeers were just waiting for the reform.
10:59Now, for more on this,
11:00I'm joined by our Hungarian correspondent, Sándor Szyros.
11:03Sándor, good to see you.
11:05Tell us, what's Magyar's strategy here?
11:08What is he trying to achieve?
11:09Well, as mentioned, it was his first visit to Poland,
11:12and he had two messages.
11:15First of all, he said that he's conducting foreign trips in a very different way.
11:20It was a big show, what he did.
11:22He went on a commercial plane, then he took the train.
11:27He did a lot of selfies on the streets of Warsaw.
11:30So it's a different feeling after Orbán.
11:33And the political message was that he wants to revive Polish-Hungarian ties,
11:38which were stuck during the Orbán era.
11:43There was a lot of diplomatic tensions because of Orbán's ties to Russia.
11:47And he wants to revive also the Visegrad IV,
11:50which is a key in Central European cooperation.
11:54In Warsaw, he also said that, you know,
11:56maybe this group should extend beyond these four countries,
12:00Hungary, Slovakia, Czechia, and Poland,
12:03to Austria, and to even further, let's take a look at what he said.
12:07I am personally ready and consider it important
12:14to extend the cooperation of the Visegrad IV,
12:17whether with our Scandinavian friends,
12:19or with Austria, Croatia, Slovenia, Romania,
12:23or the Western Balkan countries that have not yet joined the EU.
12:27The heart of Europe beats in Central Europe today.
12:36It's clearly ambitious, Sándor,
12:38but realistically, can this bloc become a powerful one also here in Brussels?
12:43We will see it in the coming years.
12:45The big problem for the Visegrad IV right now is that,
12:48you know, 10 years ago they had one major common topic, migration.
12:53They were fighting against the mandatory relocation quotas of the European Union.
12:58Now, you know, this issue is completely mainstream,
13:02and what connects these four countries is, you know,
13:06infrastructure, economy, business,
13:09and there is one thing that could potentially unite them,
13:13is to fight against the Green Deal of the European Union
13:17and to preserve car industry, which is really strong in all of those countries.
13:22Okay, Sándor, we keep an eye out for that, of course.
13:26Now, moving on, later today,
13:27the Mexican President Claudia Sheinbaum
13:29will receive the Presidents of the European Commission and Council,
13:33Ursula von der Leyen and Antonio Costa,
13:35for the eighth EU-Mexico Summit.
13:37They're expected to ink a revamped trade deal
13:40to replace the previous pact struck 25 years ago.
13:43It's set to slash tariffs on a range of goods,
13:46including agricultural products.
13:48Also in Mexico is Javi López,
13:50the European Parliament's Vice President,
13:51who has been part of these negotiations.
13:54I spoke to him in an interview and started by asking him
13:57what the deal offers for both sides.
14:00First, after 10 years of negotiation and after 10 years without summits at the high level,
14:06that we will have it tomorrow,
14:08we are able to modernize the global agreement with Mexico
14:11after 25 years working with the current agreement.
14:16With this, we are doing more on trade,
14:20especially in predictable trade with high standards,
14:23but also we are reinforcing our geopolitical alliance with one G20,
14:28a giant, culturally, demographically, economically,
14:32and in a world where all of the rest actors are using trade as a coercive force,
14:42we are working for predictable trade agreements.
14:45So is it fair to say this agreement is more than anything a reaction
14:48against the unpredictability, perhaps, of Trump's America?
14:52We know both Mexico and the EU have been targeted by aggressive trade policies from the US.
14:58And is that going to work?
15:00Because some would look at the agreement that the EU has signed with the US,
15:05the trade agreement, and would say,
15:07well, actually, Trump is calling the shots.
15:09No, I think we are working in the right direction.
15:12We are working in the direction of diversification of our economic relations in the world,
15:17trying to reduce dependencies, also dependencies coming from the United States.
15:21This is the reality.
15:22We're risking our dependencies in trade, also in security.
15:27And on that, we are having a group, a mix of important association agreements.
15:32We have Mercosur, that it's a game changer with the region.
15:35We have the modernization of Mexico.
15:37And also, we will have India as three big examples of this offensive foreign action,
15:44foreign policy that we are having.
15:46You mentioned Mercosur, and obviously, that was a big step forward.
15:49But could you argue also that the EU has been a little bit slow to deepen ties with Latin America?
15:55And we're now seeing, of course, President Trump trying to reassert his fear of influence over the Western Hemisphere.
16:01Has the EU been a little bit too negligent in the relationship?
16:05It's true that it was during a lot of years not in the radar of the priorities of the EU,
16:09and we were extremely focused in our neighborhoods.
16:12Also, we had good reasons to do that.
16:14But at the same time, now, after the Ukraine war, I will say, but after the rise of Trump, too,
16:21to the White House,
16:22we are forced to think more strategically and act more mature in the world.
16:26And our relations with Latin America, especially, are strategical relations.
16:31It's the biggest partner in the world where we can work together for a multilateral dialogue,
16:37working with the same agenda, climate change, gender equality, inclusive growth,
16:42also defending international law and the chapter of the United Nations.
16:48And on that, we are working with these association agreements that are key to reinforce and are real game changers
16:54in the region.
16:59Now, as the Cannes Film Festival draws to a close,
17:02the red carpet has this year become a battleground over politics, ideology, and artistic freedom.
17:10Artists have been weighing in on issues from the war in Gaza to gender roles.
17:14A feud has also erupted over the influence of conservative billionaire Vincent Bolloré over Canal+,
17:20French cinema's biggest funder.
17:23For more, we can cross over to Cannes now and to Jada Yuan, a journalist and writer who is at
17:29the festival.
17:30Jada, great to see you and to have you with us on Europe Today.
17:32I guess politics always permeates into this festival, and I would say perhaps that this year has been no exception.
17:41Absolutely. It is one of the most political I've been at, I would say.
17:49Last year was also incredibly political.
17:52Robert De Niro came out in his opening speech called Trump, America's Philistine President.
17:57But the difference is that every single day when something screens and the Canal+, logo comes up,
18:07the audience will boo, even if it's a gala premiere.
18:11And of course, on that, Jada, Canal+, there's been a big dispute.
18:16600 prominent figures from the film industry writing an open letter against the conservative billionaire,
18:22who's its main shareholder. And this is creating quite a stir.
18:27Yes. And it's also because the CEO of Canal+, here at Cannes, after that letter came out,
18:34basically said that they would blackball anybody who was on that letter.
18:37So they said they will blackball all of these 600 artists, including Julia Binoche.
18:48And yeah, the controversy just continues.
18:52Okay. Well, Jada, we'll keep an eye out on the action from Cannes over the weekend.
18:57Thank you so much for joining us this morning on Europe Today.
19:00And that's it from us for today and for this week.
19:03We'll be back on Tuesday next week as we're taking a break on Monday.
19:07Remember to get in touch with us with your questions and feedback.
19:11Email us at europetoday at euronews.com.
19:14And in the meantime, have a great weekend.
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