Kremlin repeats Waltz’s line on ‘cautious optimism’ on ceasefire
The Kremlin said there were “reasons to be cautiously optimistic” in discussion on ceasefire, but “there is still much to be done,” in further discussions between Vladimir Putin and Donald Trump.
Speaking after last night’s visit of US special envoy Steve Witkoff, Kremlin spokesperson Dmitry Peskov told reporters that “when Mr Witkoff brings all the information to President Trump, we will determine the timing of a conversation (between Trump and Putin).”
“There is an understanding on all sides that such a conversation is needed. There are reasons to be cautiously optimistic,” Peskov added.
Peskov’s line repeats the same language used by US national security adviser Mike Waltz in an overnight interview with Fox.
Ukrainian president Volodymyr Zelenskyy previously accused Russian president Vladimir Putin of “manipulative” response to the US proposal for a ceasefire, saying Putin pretended to accept it “at the moment he is, in fact, preparing to reject it.”
“Putin does this often – he doesn’t say ‘no’ outright, but he drags things out and makes reasonable solutions impossible,” he said.
Key events
German parties reach agreement on spending, debt reform plans
As it’s now confirmed: the three German parties involved in discussions on creating a new €500bn euros fund boosting public spending and relaxing the constitutional debt break have agreed on the final shape of the proposal, presumed chancellor Friedrich Merz confirmed.
The conservative CDU/CSU party, which won last month’s parliamentary elections, have agreed with the social democratic SPD, it’s likely next coalition partner, and the Greens, moving back to the opposition, on the structure of the proposal.
As a result of pressure from the Greens, who threatened to withhold their support and potentially derail the process, the Climate and Transformation Fund will be doubled from the originally proposed 50bn to €100bn. All new spending will also be subject to the additionality clause, meaning it will not be available for already existing projects.
In line with earlier proposals, defence spending above 1% GDP will be exempt from the debt brake, but the definition of defence expanded to cover more areas, including the German army, civil protection, intelligence services, data and information security, and – crucially – support for other states attacked under international law, like Ukraine.
The chance should enable Germany to quickly ramp up it defence spending from the current level of 2.12% GDP.
Or, as Merz put it, “this agreement is a message to our friends and opponents, the enemies of freedom: we are capable of defence, we are fully prepared …, there will be no shortage of resources to defend freedom and peace on our continent.”
“Germany is back,” he added.
The proposal also includes some fiscal flexibility for German states, amounting to 0.35% of GDP.
The co-leader of SPD, Lars Klingbeil, said the agreed plan marked “a powerful boost” for Europe’s largest economy.
“We have laid the foundation for Germany to get back on its feet and protect itself,” he said.
The Green party is expected to host is press conference a bit later, and we will bring you the key lines from their briefing then.
The Bundestag will vote on the plan on Tuesday.
G7 warn Russia of further sanctions if no ceasefire agreed
G7 nations emphasised the need for robust “security arrangements” to ensure a ceasefire between Ukraine and Russia, warning Moscow to follow Kyiv in agreeing a ceasefire or face further sanctions, according to a final draft statement.
“G7 members called for Russia to reciprocate by agreeing to a ceasefire on equal terms and implementing it fully,” the G7 nations, comprising Britain, Canada, France, Germany, Italy, Japan and the United States, said in a final draft statement seen by Reuters.
The draft, approved by senior diplomats, still needs a green light from ministers, G7 officials said.
Germany potentially close to breakthrough on debt break
Germany is close to unlocking the way to a massive increase in state borrowing and reforming the constitutional debt break as three major parties are reportedly about to reach an agreement on the proposed changes.
The controversial proposal is a key part of the presumed next chancellor Friedrich Merz’s plan for Germany.
Despite a rocky session of the Bundestag on Thursday, as reported on Europe Live, the conservative CDU/CSU, the social democrats of the SPD, and the Greens are within a touching distance of reaching a consensus on the issue, according to German media.
German economic daily Handelsblatt and the RND went further, reporting that the three have already found an agreement.
In a highly unusual and apparently coordinated move, all three parties called meetings of their parliamentary clubs for 1pm (12 GMT) today to discuss next steps, so we are likely to hear more about it this afternoon.
The move comes a day after a tricky session in the German parliament, with the CDU/CSU and the SPD leaders openly appealing to the Greens to back their proposals.
Time is of the essence here, as the move would have to be passed by the old Bundestag at a meeting on Tuesday, before the new composition of parliament potentially creates a way for critics to block the plan.
EU’s defence plans take shape – analysis
Jennifer Rankin
Brussels correspondent
The EU executive could play a role in joint purchase of missiles, drones and other military equipment, according to a draft document on the future of European defence.
The European Commission could “act as a central purchasing body” on behalf of EU member states upon their request, states a leaked white paper. The document, due to be released next Wednesday ahead of a summit of EU leaders, reveals how rapidly the EU is evolving following Russia’s full-scale invasion of Ukraine and Donald Trump’s return to the White House.
“Europe cannot take the US security guarantees for granted and most substantially step up its contribution to preserve Nato strong,” states the draft seen by the Guardian, which also states that “a revanchist Russia is the immediate military threat to the EU”.
“Over reliance on US protection has impaired Europe’s ability to defend itself and its autonomy to act in its own neighbourhood”. The Commission calls for Europe to overcome this dependency by developing “the necessary capabilities through joint European capability projects”.
Following talks with EU countries, the commission has identified seven capability gaps, including air and missile defences, artillery systems, ammunition and missiles, drones and counter drone systems, better roads, airports and ports to promote military mobility, AI and cyber warfare capabilities and “strategic enablers”, such as fortified defences on the EU’s eastern border.
Inspired by the pandemic experience of joint purchasing of vaccines, the EU, via member states and the Brussels-based European Defence Agency, has already done joint purchasing of ammunition for Ukraine. Now the commission suggests it could do more – if member states wanted that.
The paper also calls for an “urgent increase in military assistance to Ukraine”, by providing a further 1.5m rounds of ammunition, air defence systems and EU training for Ukrainian forces.
The paper is likely to disappoint some member states, such as Italy and Spain, that are looking for radical ways to increase military spending, such as common borrowing to fund EU grants to pay for defence projects.
The European Commission last week outlined an €800bn plan to help member states increase defence spending by taking out EU-backed loans and increasing national debts without breaking the EU’s fiscal rules. While member states backed the principles, the headline figure is highly theoretical, as many governments do not want to take on more debts.
Kremlin repeats Waltz’s line on ‘cautious optimism’ on ceasefire
The Kremlin said there were “reasons to be cautiously optimistic” in discussion on ceasefire, but “there is still much to be done,” in further discussions between Vladimir Putin and Donald Trump.
Speaking after last night’s visit of US special envoy Steve Witkoff, Kremlin spokesperson Dmitry Peskov told reporters that “when Mr Witkoff brings all the information to President Trump, we will determine the timing of a conversation (between Trump and Putin).”
“There is an understanding on all sides that such a conversation is needed. There are reasons to be cautiously optimistic,” Peskov added.
Peskov’s line repeats the same language used by US national security adviser Mike Waltz in an overnight interview with Fox.
Ukrainian president Volodymyr Zelenskyy previously accused Russian president Vladimir Putin of “manipulative” response to the US proposal for a ceasefire, saying Putin pretended to accept it “at the moment he is, in fact, preparing to reject it.”
“Putin does this often – he doesn’t say ‘no’ outright, but he drags things out and makes reasonable solutions impossible,” he said.
We’re getting more details via Reuters on the four names removed from the EU sanctions list:
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They are Gulbakhor Ismailova, who is the sister of prominent businessman Alisher Usmanov,
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Businessman Viatcheslav Moshe Kantor, and
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Russian sports minister Mikhail Degtyarev.
Reuters say the fourth person, businessman Vladimir Rashevsky, was removed due to a weak legal case rather than pressure from Hungary.
Greenland ‘not open to annexation,’ Danish foreign minister responds to Trump
Danish foreign minister Lars Løkke Rasmussen rejected US president Donald Trump’s latest remarks about annexing Greenland, saying the Danish autonomous island could not be taken over by another country, AFP reported.
“If you look at the Nato treaty, the UN charter or international law, Greenland is not open to annexation,” he told reporters.
Portugal’s snap election date set for 18 May
Portuguese president Marcelo Rebelo de Sousa has announced a snap election for 18 May, the third in three years, after the fall of Luis Montenegro’s government.
The president said he wanted to move quickly to avoid prolonged instability, adding in a televised address that 18 May was “the preferred date for the majority of parties”.
Rebelo de Sousa had met with party leaders on Wednesday, and earlier on Thursday called a meeting of the State Council, which is primarily made up of political leaders, for consultations before dissolving parliament.
“These elections, nobody was expecting them, nor wanting them” at a time of tense international conflicts, he said, urging parties to focus their campaigns on problems “that worry the Portuguese in their daily lives” such as the economy and healthcare.
Montenegro stepped down on Tuesday after his minority centre-right government lost a confidence vote. The Social Democratic Party (PSD) leader had been battling attacks over government contracts held by his family’s companies, AFP noted.
EU sanctions against Russia renewed with minor changes after Hungary hold-up
Jennifer Rankin
Brussels correspondent
Senior EU diplomats have agreed on Friday morning to extend for six months sanctions against around 2,000 Russians, including Vladimir Putin and many senior politicians and business people.
The sanctions, which have to be renewed unanimously every six months, remain in place until 15 September 2025.
Following a threat by Hungary to veto the list, four people have been removed as well as three people who recently died, EU sources said.
The banking and energy tycoon Mikhail Fridman – who won a partial victory against EU sanctions last April – remains on the list, sources said.
EU countries agree to renew Russia sanctions
We are just getting early reports from Brussels that EU ambassadors have agreed to renew Russia sanctions on over 2,400 individuals and entities, which were set to expire tomorrow.
Reuters noted that they reportedly agreed to remove three individual from the list. Hungary previously suggested it wanted to see some revisions to the list, threatening to veto it if their demands are not met.
We should hear more details soon, and will bring you the latest.
‘Enough is enough,’ as Greenland and Denmark react to Trump’s comments
Trump’s overnight comments on annexing Greenland – “I think this will happen” – sparked fury on the island and in Denmark.
Outgoing Greenlandic prime minister Múte B. Egede, who holds the fort waiting for the new coalition to emerge, has said he “cannot accept this,” and called a meeting of all party leaders to form a united front against Trump.
“This time we must sharpen our rejection of Trump. We must not continue to be treated with disrespect. Enough is enough,” he said.
His likely successor, Jens-Frederik Nielsen, has also rejected Donald Trump’s effort to take control of the island, saying Greenlanders must be allowed to decide their own future as it moves toward independence from Denmark.
Nielsen, whose centre-right Democrats won a surprise victory in this week’s legislative elections and now must form a coalition government, pushed back against Trump’s repeated claims that the US will annex the island.
“We don’t want to be Americans. No, we don’t want to be Danes. We want to be Greenlanders, and we want our own independence in the future,” Nielsen told Sky News. “And we want to build our own country by ourselves.”
In a separate comment on Facebook, he called Trump’s comments “inappropriate.”
Over in Denmark, Jacob Kaarsbo, former chief analyst at the Danish Defence Intelligence Agency, was quoted by Berlingske as telling TV2 News that Trump’s comments “send chills down the spines of officials and politicians not just in Denmark, but all Nato.”
Rasmus Jarlov, chair of the Danish parliament’s defence committee, put it in even starker terms as he also took aim at Nato secretary general Mark Rutte for not reacting to Trump’s comments.
We do not appreciate the Secr. Gen. of NATO joking with Trump about Greenland like this.
It would mean war between two NATO countries. Greenland has just voted against immediate independence from Denmark and does not want to be American ever.
In case you wondered what was the response from the US, former Trump aide and Republican political consultant Roger Stone replied to Jarlov with this comment:
This is your sick demented repugnant, and baseless opinion. The problem is that you are no one and you don’t speak for the people of Greenland. Get over yourself no one here cares what you think about anything. Asshole.
Morning opening: Decoding Vladimir Putin
Ukrainian president Volodymyr Zelenskyy accused Russian president Vladimir Putin of “manipulative” response to the US proposal for a ceasefire, saying Putin pretended to accept it “at the moment he is, in fact, preparing to reject it.”
“That’s why, in Moscow, they are surrounding the ceasefire idea with such preconditions that it either fails or gets dragged out for as long as possible. Putin does this often — he doesn’t say ‘no’ outright, but he drags things out and makes reasonable solutions impossible,” he said.
US president Donald Trump also acknowledged that while Putin’s response was “promising,” it was also “incomplete.”
Getting to the bottom of what Putin actually wants and planning what to do next in response will be the focus of the next few days.
US special envoy Steve Witkoff was in Moscow last night where he was meant to meet with Vladimir Putin or senior Russian officials to discuss the proposals. As of this morning, neither the Kremlin nor the White House issued any readouts from their discussion.
Speaking on Fox News overnight, the US national security adviser Mike Waltz praised Ukrainians for “a very different approach than you saw … in the Oval Office,” and urged all sides to move to ceasefire.
He declined to go into the details of discussions Witkoff had in Moscow, but insisted there was “some cautious optimism,” as the US administration expects to hear back from Witkoff “to evaluate and for the president to make decisions on next steps.”
When it was put to him that Ukraine not be allowed to enter Nato and would probably have to give up some Russian-occupied territories in Donbas, Waltz said “you are not wrong in any of that.”
“What’s important is that we are discussing all of those things with both sides,” he said.
Given public comments from Ukrainian officials on the integrity of the Ukrainian territory, it’s difficult to imagine their enthusiasm for such proposal.
On Saturday, UK prime minister Keir Starmer will host a virtual meeting of leaders involved in his planning for “the coalition of the willing,” a follow up on his Lancaster House summit earlier this month.
It’s Friday, 14 March 2025, and this is Europe live. It’s Jakub Krupa here.
Good morning.
