Saturday, March 1, 2025

Brussels Edition: Rama's EU path at risk

Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join u
View in browser
Bloomberg

Welcome to the weekend issue of Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Join us on Saturdays for deeper dives from our bureaus across Europe.

TIRANA — Weeks before a national election, Albania's political landscape was shaken with last month's arrest of Erion Veliaj, the mayor of the capital Tirana.

Long considered a close ally and potential successor of the country's powerful prime minister, Edi Rama, Veliaj was ensnared by allegations of public contracts funneled to associates and spending hundreds of thousands of euros on luxury goods. The corruption probe could end the political career of Veliaj, who has denied all allegations of wrongdoing, ahead of Albania's parliamentary vote in May. 

Erion Veliaj is escorted out of his office following his arrest in Tirana. Source: AFP/Getty Images

Driving the investigation is the Special Prosecution Office, a body backed by the US and the European Union to battle endemic corruption in the Adriatic nation – and the centerpiece of Albania's aspirations to join the EU. SPAK, as its known, has forged ahead with its mandate to dismantle corrupt structures and organized crime networks that have long shaped Albania's political and economic system.

Rama, who aims to make EU accession the foundation of his legacy, has long championed SPAK's work. But since judicial scrutiny has turned to a close associate, his tone has shifted. Even as he insists his Socialist Party won't interfere, he's issued accusations against prosecutors for overstepping their bounds and acting without accountability, dismissing Veliaj's indictment as a "400-page novel."

Given the stakes involved with Albania's standing in the West, Rama is showing no sign of moderating his attacks. In recent days, he's lashed out at SPAK — at one point he could be seen in a now-viral video pounding his fists – and issued a warning not to direct the probe at himself.

"This is very serious! Very serious! Very serious!" he told lawmakers at a party meeting. "They better not make the mistake of coming to ask for my phone, because they already have enough."

Edi Rama Photographer: Thierry Monasse/Getty Images

Rama's Socialists have fully aligned behind Veliaj, framing the case as an attempt to weaken the government ahead of the May 11 ballot. Party officials have echoed Rama's criticism of SPAK, arguing that investigations disproportionately target ruling party figures while ignoring others. Opposition parties have seized on the scandal, saying it lays bare the corruption within the Socialist ranks.

The EU meanwhile has reaffirmed its support for SPAK as an anchor of Albania's path into the 27-member bloc. "The justice reform and the establishment of SPAK are a cornerstone of Albania's accession to the EU," the EU delegation in Albania said this week.

SPAK chief Altin Dumani rejected claims of political motivation, saying those acting in accord with the constitution "have nothing to fear." Instead, he signaled the probe could expand, noting that SPAK has jurisdiction over electoral crimes.

That could prompt further escalation – and more trouble for Albania in its bid to join the EU.

— Gresa Kraja, Albania and Kosovo reporter

Weekend Reads

Merz Wins Chance to Fix Germany and Steer EU Through Trump Era

Germany's next chancellor faces a daunting list of challenges to revive his country's fortunes — but the rest of Europe is looking to him for leadership too. After his election win on Sunday, Friedrich Merz is set to take charge of Europe's biggest economy with the US defense umbrella looking shakier than any time since the NATO alliance was founded and Donald Trump discussing the continent's security with Vladimir Putin. His party bloc began exploratory talks with the Social Democrats this week. 

CDU Leader Friedrich Merz delivers a speech at the party's election night event in Berlin, on Feb. 23. Photographer: Krisztian Bocsi/Bloomberg

Europe Braces for Freeze of US Foreign Corruption Practices Act

In recent years, Glencore Plc, Airbus SE and Credit Suisse have collectively paid more than $5.5 billion in fines for their roles in sprawling corruption cases. While law enforcement in France and the UK took the lead, the involvement of their US counterparts was crucial in securing the settlements. Now, to the shock of anti-corruption officials across Europe, that era of collaboration may be over.

Putin Envoy Dangles Business Ties to Lure US to Ukraine Deal 

Russia's newest envoy, Kirill Dmitriev, has one critical assignment: to get Trump and top advisers like Elon Musk hooked on prospects for major business deals with Russia as bait for ending the war in Ukraine on terms favorable to the Kremlin. A one-time Goldman Sachs Group Inc. investment banker, Dmitriev persuaded has Putin to develop ties with Trump based on business opportunities and he's been given a chance to shine, we're told. The Kremlin saw the opening after Trump began demanding access to Ukraine's mineral resources. 

Elon Musk's Many Detractors Are Taking Their Anger Out on Tesla

Tesla's sales fell 45% across Europe in January following its first annual decline in global deliveries in over a decade. The company is showing particular signs of strain in places where its chief executive officer is inserting himself in politics in ways that run counter to Tesla's stated mission and values. In Germany — where  registrations  plummeted 41% last year and 59% in January — the billionaire emphatically supports a far-right party that denies the harm of carbon dioxide emissions. And in the UK — now Europe's biggest electric-vehicle market — Musk has aligned with politicians who want net zero targets scrapped and have cast policies aimed at boosting EV adoption as a "war on drivers." 

Banks Push Back Against EU's Sudden Retreat From ESG Agenda

The European Banking Federation is warning that the sheer scale of a proposed rollback of the bloc's ESG rules will make it harder for lenders to analyze credit risk Banks in Europe have been waiting for years for their clients to start providing hundreds of data points under new ESG reporting rules. But as the European Union now looks set to dramatically water down planned regulations, banks fear they'll be left without the necessary tools to conduct proper credit risk analyses, according to the EBF, whose members include BNP Paribas SA, UniCredit SpA and Deutsche Bank AG.

This Week in Europe

  • Sunday: UK Prime Minister hosts a summit with European leaders 
  • Sunday: Hamburg holds state election 
  • Thursday: EU leaders meet in Brussels for a summit to discuss defense, Ukraine
  • Thursday: ECB interest rate decision 

Like the Brussels Edition?


Don't keep it to yourself. Colleagues and friends can sign up here.

How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know.
Follow Us

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices

No comments:

Post a Comment

LAST CHANCE to see the ticker screaming “BUY NOW”

Join me LIVE at 1pm ET to discover the Wave Indicator                               Today is your last chance to discover a stunningly ...