Why countries see a downside to the EU’s green trade ambitions

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Good morning. European Commission president Ursula von der Leyen is in Cyprus today for the announcement of a maritime aid corridor to Gaza, in co-operation with the US.

Today, my colleagues unpack demands to scale down the EU’s climate ambitions abroad, and our Athens correspondent explains why private universities are a topic of high controversy in Greece.

Crossing the (green) line

Has the EU gone too far in imposing its green agenda on the rest of the world through trade?

According to the Netherlands, yes, write Andy Bounds and Alice Hancock.

Context: The EU has passed a series of measures to incentivise trade partners to become more climate-friendly, as part of a push for “open, sustainable, assertive” trade and to level the playing field with its own companies, who are subject to climate legislation.

But The Hague says these are alienating developing countries who find their products blocked from the EU market.

A Dutch paper circulated to other member states and seen by the Financial Times says this “has had a clear effect on the EU’s international reputation and credibility and its ability to achieve and deepen partnerships”.

It adds that “existing tensions with trading partners also impact the EU’s ability to build bridges, including in the World Trade Organization (WTO)”.

“More than ever, the EU’s internal and external policies are closely intertwined,” the document says.

Ministers and officials from several member states shared similar concerns in private at the WTO meeting in Abu Dhabi last week. Countries such as India and Malaysia criticised the EU’s policies.

Legislation highlighted by the Dutch includes the Carbon Border Adjustment Mechanism (CBAM), which will tax certain carbon imports, due diligence rules affecting supply chains, and the deforestation regulation, which will ban products from deforested land.

A senior EU official defended the EU trade measures, saying they were “very complementary to other sustainability projects” inside the bloc.

Tokozile Xasa, South Africa’s ambassador to the EU, told an event in Brussels on Tuesday that the bloc had to do more work with its partners on trade policy, respecting their systems and environments rather than imposing its own standards on others.

Inside the EU, the pushback against some of the measures has already begun.

EU governments are torn over a controversial due diligence law, which would force companies to take action on human rights and environmental abuses in their supply chains.

But a vote on a watered-down version to get sceptics in Berlin, Rome and Paris on board due today was postponed — for now.

Chart du jour: Closing in

With Sweden finally joining Nato yesterday, the western defence alliance has nearly ringed the entire Baltic Sea, a significant oil trading route for Russia and home to one of its fleets.

Private options

After months of student protests, the Greek parliament is poised to approve a new law opening the door for private universities in the country, writes Eleni Varvitsioti.

Context: Over decades, different governments have unsuccessfully tried and failed to introduce private universities in Greece, where the concept was long considered taboo. Thousands of students protested against the latest attempt and occupied universities.

“Only Greece and Cuba prohibit the establishment of private universities,” education minister Kyriakos Pierrakakis told parliament yesterday. He said that Greece was losing capital as about 40,000 Greek students go abroad each year, paying tuition to universities in countries such as Cyprus, the UK and Bulgaria.

The proposed legislation, backed by the centre-right government, aims to attract foreign universities to Greece from 2025. Their branches would adhere to the national exam system and charge tuition, but operate under a non-profit structure.

Opponents argue that this could undermine public universities, many of which already face funding issues, and jeopardise free higher education in the future.

Stella Ladi, associate professor at Panteion University in Athens and professor at London’s Queen Mary University, said it was a “misperception that their introduction will undermine and deprive public ones of funds”.

“It’s more of a long-standing perception and strong political ideologies that exist in parts of the country against private universities,” Ladi said.

Proponents of the changes say that private universities could shake up public education, which has often been criticised for being slow and old-fashioned.

“This could motivate public universities and the government to allow for more flexibility and accelerate the internationalisation and modernisation of higher education in Greece,” said Ladi.

The bill will be voted later today, and is expected to pass.

What to watch today

1. European Commission president Ursula von der Leyen in Cyprus

2. Ukrainian President Volodymyr Zelenskyy visits Turkish President Recep Tayyip Erdoğan.

3. Ireland votes in two constitutional referendums, including cutting references to a woman’s “life within the home”.

Now read these

The figures on Russian LNG shipments to the EU mentioned in yesterday’s newsletter were incorrect due an error on the decimal points. The figures have been amended in the online version.