06/06/2025
EU Insight 6 June 2025
Brussels, 6 June 2025
GEERT WILDERS’ PVV EXITS DUTCH COALITION, TOPPLING GOVERNMENT
The Dutch government fell after far-right leader Geert Wilders withdrew his Party for Freedom (PVV) from the four-party coalition amid a dispute over asylum policy. Wilders had demanded stricter migration measures, including halting applications and limiting family reunification, but left crisis talks when no consensus emerged. Dutch Prime Minister Dick Schoof subsequently offered the resignation of the cabinet to the King, though he will remain as caretaker until new elections are held, likely in the autumn. The move has drawn criticism from coalition partners, who accuse Wilders of destabilising the government, while observers expect asylum policy to feature prominently in the upcoming election campaign.
EU LAUNCHES INTERNATIONAL DIGITAL STRATEGY TO BOOST GLOBAL TECH TIES
The European Commission has unveiled its International Digital Strategy, setting out how the EU aims to shape the global digital landscape. The initiative follows calls from EU leaders to strengthen Europe’s influence in areas like artificial intelligence and cybersecurity, as digital and geopolitical competition intensifies worldwide. The strategy promises to forge new digital partnerships and expand existing ones, provide funding for cutting-edge tech projects, like the so-called AI factories, and secure connectivity. The move comes at a time when global standards and influence in the digital sphere are increasingly contested, and the EU looks to play a larger role in shaping the rules of tomorrow’s tech landscape.
COMMISSION UNVEILS PLAN TO TACKLE WATER SCARCITY AND CLIMATE RISKS
With droughts, floods and ageing infrastructure putting growing pressure on water supplies across Europe, the Commission presented a new strategy to boost the continent’s water resilience. The plan calls for modernising leaky pipes, tackling pollution and restoring natural water cycles, backed by €15 billion in upcoming investment and a renewed push for public-private partnerships. EU countries are encouraged to cut water waste by at least 10% by 2030, but will set their own national targets rather than face a uniform approach. The Commission will also hold regular dialogues to help countries turn guidance into concrete action amid rising climate risks.
EU PRESENTS STRATEGY TO CLOSE GAP FOR EUROPEAN START-UPS
The Commission has set out a new plan to boost the success of start-ups and scale-ups in Europe, aiming to turn more home-grown tech companies into global leaders. While Europe’s start-up scene is growing, many still struggle to access funding, attract talent, or expand beyond their local market. The strategy focuses on easing regulatory burdens, growing venture capital options, and improving the pool of top talent and key infrastructure, such as digital networks and research facilities. Alongside new funding tools and simplified rules, the initiative also seeks to make it easier for companies to operate internationally. The strategy is part of the broader efforts of the Commission to keep more innovators in Europe and narrow the gap with global competitors.
COMMISSION OUTLINES SPRING ECONOMIC PACKAGE, AMID GLOBAL UNCERTAINTIES
This week, the Commission presented its annual Spring economic package, outlining the state of play in the EU’s economy. Overall, the outlook showcases the EU on a path of moderate growth, though ongoing uncertainty, especially in global trade, continues to weigh on the EU economy. A major development this year is that 15 Member States have requested extra budget flexibility to increase defence spending through the national escape clause. The Commission also reported on the progress of the post-COVID recovery fund, urging national governments to accelerate implementation before the programme ends in 2026. Rounding off the announcements, the Commission’s Convergence Report found Bulgaria meets the criteria to join the euro, paving the way for adoption in January 2026.
COMING UP NEXT WEEK
- 12-13 June: Justice and Home Affairs Council. On the agenda: insolvency, protection of adults, fighting drug trafficking and organised crime, Schengen, migration, and security.
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