Photo : Cecilia Fabiano/LaPresse/ZUMA/picture alliance
30 June 2025, Monday | NIAS Europe Daily Brief #1170
By Vaihali Chittrothu
REGIONAL
Temperatures above 40 degrees Celsius trigger heatwave warnings across Europe
On 01 July, Deutsche Welle reported that temperatures were increasing in European countries. With temperatures in Spain setting new records for June, authorities warn the heat will intensify through midweek in Europe. The tennis tournament Wimbledon is set for its hottest opening day on record. Temperatures rise past 40 degrees Celsius (104 °F) in Europe. On 30 June, temperatures in Spain reached 46 degrees Celsius (114.8°F) in El Granado, near the Portuguese border, setting a new national heat record for June. In Greece, local authorities issued warnings about the risk of wildfires. In London, temperatures reached up to 35 degrees Celsius on 01 July, marking the hottest day of the year so far. Wimbledon is set for its hottest opening day on record, possibly breaking the tournament’s all-time heat record. In Germany, the Weather Service on Sunday issued heat warnings for southern and western regions, with peaks of 39 degrees Celsius expected on Wednesday. Alerts were placed in Baden-Württemberg, Bavaria, Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Saarland. French firefighters were battling early summer wildfires with several parts of the country under orange alert. Meteorologists warned that heat waves were becoming more frequent due to human-driven climate change. Spain's state weather agency, AEMET, noted that only two June heat waves were recorded between 1975 and 2000, which surged to nine since 2000. (Louis Oelofse, “Europe swelters as early summer heat breaks records,” Deutsche Welle, 01 July 2025)
Italy, Greece, Spain and Portugal are at risk of wildfires due to extremely high temperatures and climate change says Al Jazeera
On 01 July, local authorities issued warnings against the risk of wildfires and urged all to take shelter, as Southern Europe experiences the first severe heatwave of summer and as experts link it to climate change. The heatwaves were recorded in Italy, Greece, Spain and Portugal recently, with locals and tourists battling the sweltering conditions. Ambulances were also on standby near tourist hot spots. Portugal was on high alert on 30 June for extreme heat and wildfires, with temperatures expected to top 42 degrees Celsius (107°Fahrenheit). Several areas in Portugal, including Lisbon, were under a red warning due to “persistently extremely high maximum temperature values”, said the Portuguese Institute for Sea and Atmosphere (IPMA). On 30 June, the Italian Health Ministry placed 21 out of 27 monitored cities under its highest heat alert, including top holiday destinations like Rome, Milan and Naples. Hospital emergency departments across Italy have reported an increase in heatstroke cases, according to Mario Guarino, vice president of the Italian Society of Emergency Medicine. In Spain, locals and tourists were desperately trying to keep cool, as temperatures reached as high as 42 degrees Celsius (107F) in the southern city of Seville, along with other locations in the south and central parts of the country. Southern regions of Spain recorded temperatures above seasonal averages, prompting health alerts and safety recommendations from authorities. (“Wildfire risks as climate change fuels extreme heatwave in Southern Europe,” Al Jazeera, 29 June 2025)
INTERNATIONAL
German Chancellor visits the US after the NATO summit to assert military power
On 29 June, Arab News reported that Germany aimed to increase its overall defence capacity and embarked on its journey towards military rearmament since the Second World War. This was followed by repeated criticism by US President Donald Trump for relying too heavily on the US, which he argued bears a disproportionate share of NATO’s military burden.The 2025 NATO Summit, which took place in The Hague last week, brought together representatives of all 32 member nations of the alliance. Top of the agenda was an agreement to increase national security expenditure, with a target for each country to spend five percent of its gross domestic product on defence by 2035. Other than Germany, no country reflected the shift toward increased military investment more clearly. Under the leadership of Chancellor Friedrich Merz, Germany embraced rearmament since the end of the Second World War. The shift comes as Germany intends to assume a more assertive role within NATO and across Europe. Given that a highly militarized Germany twice brought the world to war, this latest iteration has drawn great interest. German military, the Bundeswehr, remained fragmented and poorly equipped, with a defence budget that rarely exceeded 1.1 per cent of GDP. Strict controls were placed on arms exports, and strategic leadership was largely left to the country’s NATO allies, led by the US. This was the established trend in postwar Germany. In 2025, the Merz government passed a defence budget worth 2.4 per cent of GDP, the highest level of military expenditure in Germany’s postwar history and announced long-term goals to raise it to five per cent. The goal is to ramp up annual defence spending from EUR 95 billion (USD 111 billion) in 2025 to EUR 162 billion by 2029. (Zaid M Belbagi, “Germany and the balance of power in Europe,” Arab News, 29 June 2025)
Iran votes to ban IAEA inspection and foreign minister warns Europe of its attempt to bring back UN sanctions
On June 27, in a broadcast on state-controlled television, Iran’s Foreign Affairs Minister, Abbas Araqchi threatened Europe after Iran’s parliament voted to ban cooperation with the International Atomic Energy Agency (IAEA) and suspend inspections following recent Israeli–US airstrikes on its nuclear sites. On 25 June 2025, the Majlis (parliament) legislated a law to suspend cooperation with the IAEA. The legislation mandates that any future collaboration must be cleared by the Supreme National Security Council, placing all inspection access under political control. Araqchi emphasized that any decision on inspections would be made under newly passed legislation, based on evaluations from the regime’s Supreme National Security Council. The regime fears that confrontation with the international community could trigger a tightening of diplomatic and economic ties, risking further internal instability and a nationwide uprising. The snapback mechanism, allowing the UK, France, or Germany to restore comprehensive UN sanctions lifted under the 2015 nuclear deal (JCPOA), offers Europe a pivotal choice. It could neutralize Iran’s nuclear threat. (Shahriar Kia, “Iran News: Regime FM Defiant After Blocking IAEA, Warns Europe Against “Snapback” Sanctions,” NCRI, 27 June 2025)
Tensions between the EU and China on rise after the ban on Chinese manufacturers in public tenders for medical devices says Euractiv
On 30 June, Euractiv reported a follow-up report on the strained EU-China relations. Recently, the commission decided to bar Chinese manufacturers from participating in public tenders for medical devices worth over EUR five million. This marks the first application of the EU’s International Procurement Instrument (IPI), designated to enforce reciprocal market access after Beijing’s public procurement markets were found to systematically exclude European firms. The China Chamber of Commerce to the EU (CCCEU) reacted to the decision, “deep dissatisfaction” and blatant act of discrimination against Chinese products and firms, urging the bloc restore a favorable environment for Chinese companies operating within the EU According to them, the IPI findings were not based on objective evidence, and EU products and suppliers do not face discriminatory treatment in China’s public procurement market, as Brussels claims. The European Commission President Ursula von der Leyen accused China of attempting to “dominate” and “blackmail” the West through its export restrictions on rare earths. The focus shifted to Beijing, where the 24-25 July summit is expected to be dominated by the issue of rare earth elements. (Xhoi Zajmi, “Couples therapy? EU-China relations hit new low ahead of summit,” Euractiv, 30 June 2025)
European markets rebound from past setbacks competing with the US; increasing the value of Euro
On 30 June, Bloomberg reported that the European markets are rebounding not only in terms of stocks but also in terms of the economy and currency. With growing uncertainty in US tariffs investors and stock companies began looking up to European markets. More stability can be seen in European markets like Poland and Hungary in their assets. Recently, investors invested more in Europe than in US as Europe became the big beneficiary as governments there boost spending while its central bank slashes interest rates Erik Koenig, who runs the EMEA equity sales desk at Bank of America Corporation said that they were seeing extremely strong demand for European assets, particularly from the US as the Europe became more strong in their long-term goals. According to Bank of America, European-focused equity funds got up to USD 46 billion of fresh money since the start of 2025, on track for the second-largest annual inflows ever. That is a sharp contrast to 2024, when there were USD 66 billion of outflows. In the fixed income space, over USD 42 billion has flowed into European-domiciled funds tracking bonds issued in the common currency, compared to just USD 5.6 billion for those focused on dollar-dominated notes, also marking a flip from the trend in 2024. The US market is dominated by a club of tech companies worth more than USD 2.5 trillion like Apple Inc. and Nvidia Corp., seen as key beneficiaries of AI. The European market does not have any real AI plays and there’s not a single public company valued at over USD 400 billion.In June the Euro reached up to 13 per cent against the dollar in the six months. (Michael Msika and Naomi Tajitsu, “European Markets Are Becoming Increasingly Difficult to Ignore,” Bloomberg, 30 June 2025)