Europe
(Émile Marzolf and Océane Herrero – Politico) When the CEO of Europe’s only real challenger to the top U.S.-based frontier labs arrived at last month’s exclusive G7 meeting on AI, he didn’t have algorithms or IPOs on his mind. He came to talk electricity. Arthur Mensch, who runs Mistral AI, the hottest tech property of this year’s G7 host country, believes that France’s relatively cheap energy is a major competitive advantage in the AI race. It’s a vision he laid out at the June 17 working lunch on AI in front of the likes of Donald Trump, Emmanuel Macron and Ursula von der Leyen, as well as Anthropic CEO Dario Amodei and OpenAI boss Sam Altman: Unless Europe develops a system to direct its low-cost electricity resources into large language models of its own, it risks letting its energy advantage slip away. – France’s edge in the AI race is cheap energy — if American big tech doesn’t plug in first – POLITICO
Europe – Illegal Israeli Settlements
(Nicholas Vinocur – Politico) A group of EU countries wants to force the European Commission to crack down on trade with illegal Israeli settlements, ramping up a standoff with Brussels over its Middle East policy. The group, which includes Belgium, the Netherlands and Spain, is looking to assemble a majority to force the Commission to propose limiting trade with the settlements, according to four diplomats aware of the efforts, granted anonymity to discuss the sensitive plans. The diplomats confirmed the effort but declined to identify every country supporting it. The fight is increasingly pitting EU institutions against one another as well as dividing national capitals. On one side are countries pressing for tougher action, backed by EU foreign policy chief Kaja Kallas. On the other are Ursula von der Leyen’s Commission and countries including Germany and the Czech Republic. – Israel-critical capitals force von der Leyen showdown over illegal settlements – POLITICO
France
(Victor Goury-Laffont and Clea Caulcutt – Politico) Far-right leader Marine Le Pen’s surprise return to the 2027 French presidential election is forcing one of her main opponents, Edouard Philippe, to adjust his attack plans. After launching his campaign in May by promising to sell voters on a “massively optimistic” conservative agenda, the former prime minister and his troops are now going after Le Pen as a fiscally irresponsible lefty. “Marine Le Pen has a platform that is largely left-wing,” said Nathalie Loiseau, a member of the European Parliament campaigning for Philippe. – The plan to take down Le Pen: Frame her as a lefty – POLITICO
Russia – Ukraine
(AFP/Al Arabiya) Ukrainian drone strikes killed four people and wounded seven in Russia on Monday, most in the Moscow region, local officials said, as Kyiv upped its strikes in response to Kremlin’s barrages. Ukraine has been striking Russia, particularly energy targets, which Kyiv says is fair retribution for Moscow’s more than four years of attacks on its territory. – Ukraine drone strikes kill four, wound seven in Russia: Officials
(Zoya Sheftalovich – Politico) Kyiv is racing to inflict maximum damage on Russia ahead of what it anticipates will be another winter of devastating attacks on Ukrainian energy infrastructure. Ukraine has been making major gains in the war, thanks in large part to its use of long-range drones, which have been able to strike deep into Russia, cutting supply lines and stretching Moscow’s military and economy thin. “We see a weaker Russia,” Estonian Foreign Minister Margus Tsahkna told POLITICO. “The reason is that Ukraine has been able to fight and develop their own capabilities for deep strikes.” – Ukraine sees opportune moment to pressure Putin before winter – POLITICO
UK
(Dan Bloom – Politico) Andy Burnham will have less than three years to show voters he can change Britain. He’s starting with what may be the hardest part: the civil service. Burnham, who will take over as U.K. prime minister on July 20, wants to radically shake up the way the British state is run. He has promised to centralize some powers to his own office, hand others to regional leaders and stuff personnel into bases outside London (including a “No. 10 North” in Manchester) to weaken departmental chiefs in Whitehall. In doing so, Burnham is setting up a culture clash that he hopes will convince the nation not to elect Reform UK’s Nigel Farage, who also rails against the failings of the British government machine from the right, at the next general election. POLITICO spoke to 17 current and former senior politicians and officials, most of whom have worked with Burnham and many granted anonymity to speak frankly, about what the new PM’s arrival will mean for Whitehall. Some warned that Burnham’s plans could spark a turf war not just between ministers and the civil service, but between civil servants themselves. – Burnham suits up to battle the Whitehall blob — and neutralize Farage – POLITICO
US – Iran
(Al Arabiya) The United States struck Iran Monday for a second day running, prompting Tehran to attack neighboring Gulf states and Jordan, as the foes battle over the status of the strategic Strait of Hormuz. The fresh fighting and Iran’s announcement over the weekend of a new closure of Hormuz — a key conduit in the world’s oil trade — sent crude prices climbing on Monday and further battered an interim peace deal. Iran responded to the latest US attacks by targeting Gulf nations, with the powerful Islamic Revolutionary Guard Corps announcing new strikes on Bahrain, Jordan and Kuwait, according to state media reports. – Iran targets neighboring states after fresh US strikes in flareup over Strait of Hormuz
(Reuters/Al Arabiya) The number of vessels transiting the Strait of Hormuz fell to multi-week lows on Sunday, shipping data showed, as renewed strikes between the US and Iran and attacks on ships in the Middle East heightened safety concerns. Six vessels transited the strait on Sunday, ship-tracking data from Kpler showed, the lowest number in five weeks. – Hormuz strait traffic slows to multi-week low as fresh US, Iran strikes raise safety risk
(AFP/Al Arabiya) Iran has condemned the latest wave of US attacks on its territory, saying they had “rendered futile” all the diplomatic efforts of the last few months. Their statement came soon after the US military announced a fresh wave of strikes against Iran on Sunday, saying it aimed to “continue degrading” Tehran’s ability to attack commercial ships in the Strait of Hormuz. – Iran says latest US strikes have ‘rendered futile’ recent diplomacy
(Al Arabiya) The US military said on Sunday it completed a new round of strikes in Iran aimed at preventing the Islamic Republic from attacking shipping in the vital Strait of Hormuz. CENTCOM said that it hit dozens of targets at multiple locations with precision munitions to degrade Iran’s ability to continue attacking international shipping flowing through the Strait of Hormuz. – US says completed strikes on dozens of Iranian targets
