British and Gulf officials have called on businesses and investors to begin turning a landmark free trade agreement into concrete partnerships without waiting for its formal ratification, as both sides seek to deepen economic ties and expand cooperation beyond traditional trade.

The calls came during the UK-GCC Strategic Dialogue Forum, organised by The Business Year in central London on Tuesday, bringing together senior officials, representatives of Gulf sovereign wealth funds and private sector companies to explore investment opportunities arising from the agreement.

The UK became the first G7 economy to conclude negotiations on a free trade deal with the six-member Gulf Cooperation Council (GCC) on 20 May 2026, when the British government announced that talks had been completed following nearly four years of negotiations that began in June 2022.

However, the agreement has yet to be formally signed and ratified, with both sides still working to finalise and legally verify its text before completing the necessary government and parliamentary procedures.

While the deal is not yet legally in force, officials at the forum stressed that businesses could already begin identifying investment opportunities, building partnerships and preparing projects that could benefit from improved market access once it takes effect.

GCC Secretary-General Jasem Mohamed Albudaiwi described the agreement as a "significant achievement" in relations between Britain and the Gulf states, stressing that its importance extended well beyond the immediate benefits of trade.

Speaking at the forum, Albudaiwi said the agreement would strengthen economic partnerships, support diversification efforts and improve competitiveness across the Gulf economies, which have increasingly sought to reduce their dependence on oil revenues.

"GCC estimates put total investment between the two sides at $643 billion, while bilateral trade reached approximately $70 billion in 2025," he said.

The agreement is expected to eliminate tariffs on more than 90% of GCC exports to the UK, opening new opportunities for businesses and strengthening the Gulf's position as a major economic partner for Britain.

"The deal would support the GCC's wider economic objectives, including greater economic integration, diversification of production, improving the business environment and empowering the private sector," Albudaiwi said.

He highlighted opportunities in developing smart cities, sustainable living and attracting leading international technology companies, alongside cooperation in healthcare, financial technology, artificial intelligence, advanced manufacturing and clean energy.

These sectors have become increasingly important to Gulf economic transformation plans, as governments seek to attract international expertise, develop new industries and create sources of growth beyond oil and gas.

The GCC chief stressed that the success of the agreement would ultimately be measured not simply by its signing, but by the joint ventures, business partnerships and economic opportunities it generated.

He urged business leaders and investors from both sides to seize the opportunities offered by the agreement and begin translating its provisions into practical projects.

UK pledges support amid regional uncertainty

British Trade Minister Lord Anas Sarwar echoed those calls, urging businesses not to wait until the agreement had been formally signed and ratified before exploring new partnerships.

Addressing the forum, Sarwar acknowledged that the Gulf was experiencing a "nervous time" and a "time of challenge", offering assurances of Britain's continued support for its regional partners.

"It is in difficult times that you know where your friends are," he said, explaining that his first overseas visit as trade minister had been to the Gulf.

Sarwar stressed that the partnership was important to the British government and could contribute to economic growth and improved living standards across the UK.

He described the relationship as being about more than signing an agreement, calling for immediate cooperation across sectors including aviation, security systems, financial services and legal services.

He also highlighted opportunities in artificial intelligence and digital infrastructure, pointing to Britain's research capabilities and the Gulf's access to energy and resources needed to support the expansion of data centres and cloud computing infrastructure.

Such cooperation could allow British companies to contribute technical expertise and specialist services to major Gulf development projects, while creating opportunities for Gulf investors to expand their involvement in Britain's technology and infrastructure sectors.

Sarwar said economic cooperation needed to work in both directions, with Britain seeking not only greater Gulf investment in the UK but also increased British investment and exports into Gulf markets.

He also encouraged businesses to explore joint investments in third countries, arguing that UK-Gulf cooperation should extend beyond bilateral projects.

Lord Mayor of London Alderman Sir Alastair King similarly highlighted the potential for British and Gulf investors to combine their resources and expertise to pursue opportunities in other international markets.

The UK hopes the agreement will encourage larger and more sustained flows of Gulf capital into British infrastructure, property and other strategic sectors, while opening one of the world's most important markets to British exporters.

The emphasis on joint investment also reflects a broader ambition to move beyond conventional trade in goods and services towards longer-term partnerships involving technology, infrastructure development and international projects.

Four years of negotiations

GCC chief negotiator Raja Almarzoqi expressed optimism about the agreement's long-term economic benefits, revealing that negotiators from both sides had held approximately 900 meetings before reaching an agreement.

He said one of the most challenging aspects of the negotiations had been securing a unified position among the GCC's six member states, which have different economic priorities and domestic interests.

Almarzoqi cited studies by the World Bank and the International Monetary Fund suggesting that free trade agreements could increase trade between participating countries by 60% to 100% over five to ten years after implementation.

He expressed confidence that the UK-GCC agreement could deliver similar results, although the scale of any increase would depend on how businesses used the opportunities created by the deal.

Kuwait's Trade Minister Abdulaziz Naser Almarzouq also emphasised the importance of economic diversification, saying Gulf countries were seeking high-quality investments capable of supporting sustainable long-term growth.

He described Britain as a strong economic partner and called for existing relations to be expanded through new investment opportunities.

Discussions at the forum also focused on financial markets, investment and the Gulf states' economic transformation strategies, including Oman's efforts to diversify away from an energy-dependent economy.

The free trade agreement is expected to provide British companies with greater long-term access to Gulf markets while giving GCC businesses improved opportunities to expand their activities in the UK.

For businesses, the potential benefits extend beyond tariff reductions to opportunities for new commercial relationships, investment planning and greater participation in sectors targeted for growth by both sides.

However, the agreement's practical benefits will depend on its final provisions, implementation and the extent to which companies are able to take advantage of the new arrangements.

Although the main terms were agreed in May, the final legal text must still be completed and verified before the agreement can be signed. It will then need to undergo the necessary approval procedures in Britain and the GCC states, including parliamentary scrutiny in the UK.

TEHRAN, Oct. 20 (MNA) – Arab media have claimed that the United States and Iran have given their preliminary approval to a fresh 'compromise proposal' presented by Pakistan and Qatar.

The EU “will not drill and will not buy” Arctic oil and gas, EU officials said on Tuesday (20 October), as the European Commission presented its new Arctic strategy. 

“Our position on Arctic oil, gas and coal has not changed,” a senior EU official told reporters. “It’s fairly simple. We will not drill in the Arctic, and we will not buy hydrocarbons from the Arctic.”

The strategy follows months of heavy lobbying by Norway’s prime minister Jonas Gahr Støre and his cabinet. 

Oslo used the energy supply disruption caused by the Iran war to push the EU to drop its 2021 support for a moratorium on oil and gas drilling in the Arctic, insisting that it was crucial for future energy security. 

But EU officials made clear on Tuesday they did not buy that argument. “We do not need Arctic resources to keep our energy supply secure,” the official said.

What happened to the moratorium?

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

No hay forma de luchar contra el Imperio sin eludir su control sobre el sistema financiero internacional.

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Ya se ha desatado el caos a la hora de investigar qué está ocurriendo exactamente en relación con los últimos movimientos, sin duda turbios y vinculados a EE. UU., en territorio y aguas pakistaníes. Tras una evaluación inicial en Transition Protocol —que, como se reconoció, no proporcionó todas las respuestas necesarias—, profundizamos en un análisis mucho más exhaustivo respaldado por varias fuentes.

Lo que estamos observando en varios puntos clave de la conexión terrestre entre Irán y Pakistán, de extrema sensibilidad, no es un cierre total de la frontera, sino un delicado equilibrio de doble vía por parte de Islamabad entre la tremenda presión financiera de Washington y el salvavidas estratégico de Teherán.

Así que esta es la situación actual, combinando los datos contrastados con nuestras últimas consultas.

El punto clave: el detonante normativo fue una medida de sanciones bancarias, no solo la seguridad fronteriza.

Aunque los responsables provinciales de Baluchistán justificaron públicamente el sábado el cierre de dos puntos clave —Taftan y Gabd–Rimdan— alegando motivos de seguridad, lucha contra el terrorismo y lucha contra el contrabando, lo que más importa es el mecanismo exacto en torno a un memorándum emitido el viernes pasado por el Ministerio de Comercio pakistaní.

Dicho memorándum revocó de inmediato una prórroga, concedida el 3 de octubre, de la exención del Formulario Electrónico de Importación (EIF, en inglés) para mercancías importadas de Irán, y coincidió con la orden de Islamabad de cerrar el puesto de inmigración de la Agencia Federal de Investigación (FIA, en inglés) en Taftan.

Lo fundamental es que, sin la exención del EIF, los importadores pakistaníes deben tramitar las compras iraníes a través de los canales bancarios oficiales de Pakistán —lo que, por supuesto, las sanciones estadounidenses hacen absolutamente imposible.

Peyman Sanandaji, presidente de la Comisión de Transporte de la Cámara de Comercio de Teherán, confirmó oficialmente que ha sido el cumplimiento de las sanciones bancarias (el abandono del EIF) lo que ha paralizado las exportaciones iraníes a Pakistán.

El impacto inmediato en los pasos fronterizos oficiales fue considerable: están en peligro más de 4.000 toneladas de importaciones diarias de GLP iraní a través de Gabd–Rimdan. El expresidente de la Cámara de Comercio de Quetta, Ayoub Miryani, informó de que solo en Gabd–Rimdan hay más de 2.000 contenedores varados, con cientos de camiones de mercancías más atascados en Taftan.

¿Por qué está ocurriendo esto ahora? Debido a la nefasta coincidencia entre el pago del tramo del FMI del 7 de octubre que Pakistán tenía que abonar y la «Operación Economic Outcast» del Tesoro imperial estadounidense.

En el marco de la «Operación Economic Outcast», Washington dio a terceros países un «plazo definido para cerrar» las vías de suministro comerciales relacionadas con Irán o enfrentarse a la expulsión del sistema financiero estadounidense. A esto le siguieron las designaciones de la OFAC del 1 de octubre contra las redes ferroviarias terrestres e industriales de Irán y las medidas del 8 de octubre contra 17 petroleros de la «flota en la sombra».

Pero entonces, el 7 de octubre —solo nueve días antes de que el Ministerio de Comercio revocara la exención del EIF—, Islamabad llegó a un acuerdo con el FMI sobre la cuarta revisión de su Servicio Ampliado del Fondo para desbloquear 1.210 millones de dólares. Esto aún requiere la aprobación del Consejo Ejecutivo del FMI.

Por supuesto, no existe ningún documento público que demuestre una orden directa de EE. UU. o del FMI para cerrar las fronteras entre Irán y Pakistán. Pero fuentes de Islamabad subrayaron que mantener vigente una exención de instrumentos bancarios de duración indefinida antes de la votación del Consejo del FMI se había convertido en una vulnerabilidad insostenible para Pakistán en materia de sanciones.

Las fuentes de Islamabad insisten en que la medida vino acompañada de auténticas preocupaciones por el contrasabotaje y se coordinó discretamente entre Islamabad y Teherán (cursiva mía) para que la pausa no rompiera las relaciones bilaterales.

El portavoz del Ministerio de Asuntos Exteriores iraní, Esmaeil Baghaei, calificó públicamente la interrupción como una pausa temporal debida a «problemas técnicos» y «medidas de precaución».

Las fuentes oficiales pakistaníes, por su parte, insistieron en que el endurecimiento de los controles es una medida conjunta de lucha contra el terrorismo que refleja un «entendimiento mutuo» con Teherán tras un repunte de los atentados en Sistán-Baluchistán; las emboscadas en autopistas; y un ataque marítimo perpetrado el 11 de octubre contra embarcaciones de la Guardia Costera de Pakistán frente a Jiwani —que las autoridades pakistaníes atribuyeron a «actores extranjeros» que pretendían sabotear la mediación de Pakistán en el acuerdo de paz con Irán—.

Vuelta al mismo patrón de siempre: yihadistas salafistas utilizados como arma y manipulados por los sospechosos habituales.

La única llamada telefónica confirmada públicamente entre el viceprimer ministro Ishaq Dar y el ministro de Asuntos Exteriores Abbas Araghchi tuvo lugar el domingo 18 de octubre —dos días después del memorándum del 16 de octubre— y sus comunicados oficiales solo mencionan la diplomacia regional y la reunión de la OCI en Bagdad.

Por lo tanto, la coordinación previa a nivel de los ministros Dar y Araghchi y las detenciones específicas por sabotaje forman parte de nuestra propia información.

Exportaciones asimétricas de alimentos y rutas informales

En resumen, los productos siguen cruzando las fronteras. Islamabad ha permitido deliberadamente que sigan circulando los productos perecederos y las exportaciones alimentarias pakistaníes hacia Irán. Los productos perecederos esenciales —entre ellos, tomates, patatas y cebollas— siguen circulando, junto con los flujos tradicionales de petróleo y combustible, a través de la porosa frontera de 909 km.

El registro normativo explica el motivo: hace ocho meses, Pakistán promulgó una exención bancaria específica para diez productos alimenticios exportados a Irán por vía terrestre (en la que se enumeraban explícitamente el arroz, las patatas, las cebollas, los tomates, la carne y la fruta), además de productos farmacéuticos.

La Cámara de Comercio de Teherán confirmó el pasado sábado que, si bien las exportaciones iraníes a Pakistán se ven paralizadas por la normativa del EIF, las importaciones de Pakistán a Irán continúan, y el comercio informal de combustible y el comercio fronterizo a través de Baluchistán ya alcanzan un volumen estimado de entre 800 millones y más de 1 000 millones de dólares anuales al margen de los controles aduaneros oficiales.

Debe prestarse especial atención a los puertos de Gwadar y Karachi, así como a la arquitectura general de tránsito entre China e Irán. Según nuestras fuentes, el tránsito de terceros países y el tránsito entre China e Irán a través de Pakistán sigue estando protegido.

A nivel jurídico, un documento que detalla el tránsito de mercancías por Pakistán estableció seis corredores de tránsito terrestre designados que unen Gwadar, Karachi y Port Qasim con Gabd y Taftan para la carga de terceros países con destino a Irán bajo una garantía bancaria.

Además, una notificación de la Junta Federal de Ingresos del pasado mes de junio designó formalmente la estación de ferrocarril de Taftan como puesto aduanero terrestre, y los ministros iraníes y pakistaníes han promovido el corredor ferroviario para conectar China con Irán y Europa.

Sin embargo, siguen existiendo dos limitaciones operativas muy complicadas.
La modernización de la línea ferroviaria Quetta-Taftan sigue figurando oficialmente como una mejora prevista; y la designación por parte de la OFAC, el 1 de octubre, de la Compañía Ferroviaria de la República Islámica de Irán (RAI) tenía como objetivo explícito frenar el cambio de Teherán de las rutas marítimas bloqueadas al ferrocarril.

En resumen: se necesita una habilidad extraordinaria para enfrentarse al Imperio de la Piratería.

Islamabad ha llevado a cabo una maniobra clásica y calculada: revocar de forma visible la exención formal de importación del EIF en Taftan y Gabd-Rimdan para proteger su próximo tramo del FMI, de 1.210 millones de dólares, y a los bancos paquistaníes de las sanciones secundarias del Tesoro de EE. UU.

Y todo ello sin dejar de mantener vivas las exportaciones alimentarias paquistaníes, las vías fronterizas informales y los marcos de tránsito de terceros países con Teherán.

Que esto siga siendo un breve reajuste administrativo o se consolide en un cuello de botella más prolongado lo decidirán tres indicadores durante las próximas quince días:

1. Una notificación modificada del EIF o del trueque por parte del Ministerio de Comercio.
2. Despacho de aduanas independiente para la carga en tránsito por Gwadar/Karachi.

Movimientos de mercancías documentados a través del enlace ferroviario Taftan-Zahedan.

Que la lección quede grabada en las tierras raras para que todo el Sur Global reflexione: no hay forma de luchar contra el Imperio sin eludir su control del sistema financiero internacional.

Investors sold off French government bonds after a weekend of violent protests, pushing the yield on the country’s 10-year debt as high as 4.94 percent on Monday and widening the premium over German bonds toward levels last seen during the eurozone debt crisis.

With some of the most violent images of the protest involving predominately migrant youths, the social unrest crisis and decades of mass immigration could actually lead to a debt crisis as well.

The sell-off followed days of unrest over the cost of living and conditions in schools that turned into riots, with thousands of arrests, looted shops and damaged public buildings across France, according to French news outlet BFMTV.

‘The true face of the Great Replacement’ – Right-wing politician Zemmour says French riots driven by ‘hordes of North African and African barbarians’

Yields rise when bond prices fall, and the jump in French borrowing costs reflected investor concern that the disorder would make it harder for the government to reduce its large deficit and debt.

The gap between French and German 10-year yields, a key measure of the risk premium on French debt, widened sharply and approached or reached its highest level since 2012, according to market data. fSome accounts put the French 10-year yield’s rise at as much as 16 basis points on the day, leaving it near multi-decade highs.

2,000 shops looted or damaged across France, Macron rejects Interior Minister Núñez resignation offer

The violence prompted President Emmanuel Macron to condemn what he called “unbridled violence,” while Prime Minister Sébastien Lecornu’s government asked some local authorities to impose curfews and did not rule out a state of emergency.

France has been struggling with weak growth, a budget deficit projected around 5 percent of GDP or higher, and a debt-to-GDP ratio above 115 percent. The government has yet to secure passage of its budget for next year.

Analysts said the unrest added to existing doubts about whether Paris can deliver the spending cuts needed to stabilize its finances, especially with presidential elections approaching in 2027 and Marine Le Pen currently forecast to win. Additionally, the euro weakened and French stocks fell, with the sell-off also affecting some other European markets.

On Tuesday, French yields remained elevated near 24-year highs as protest groups announced further demonstrations.

Ratings agency Moody’s is scheduled to review France’s credit rating later in the week.

The post Following mass riots, France debt interest soars to 4.94%, reaching risk levels not seen since 2012 appeared first on Remix News.

VERSIONE IN ITALIANO

Over the past ten days, a great many extreme weather events have been recorded—from the USA to Europe, and from Asia to South America.

Is it truly all the fault of El Niño only?

Or does geoengineering—a subject to which Gospa News has devoted numerous investigations—play a role?

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UPDATE on OCTOBER, 22, 2026

New Massive and Flash Flooding in the US even inside an Hospital

In the latest hours and days new massive floods are devastating some US states and North America. Four footages in one video below on ocober, 2026 events.

• 1st footage – Water Surges Through Endoscopy Recovery Bays in Austin Hospital in Texas
• 2nd footage – Flash flooding buried cars in debris on Tuesday in Clifton, Arizona.
• 3rd footage – Heavy rain inundated parts of West Texas on Thursday, part of a multi-day flood threat fueled by tropical moisture colliding with a massive cold front moving across the country.
• 4th – footage Millions in Electronics Drenched as a Massive Ceiling Flood Destroys a Toronto Showroom

Wild Weather across Europe. Devastation in Spain, UK, Italy, France and Portugal

The western Mediterranean is currently experiencing a period of extreme weather, characterized by torrential rain, flooding, and overflowing rivers across Europpe ande above all eastern Spain, southern France, and Italy. The situation is most critical along the Spanish coast, where Storm Adam has triggered exceptional rainfall, resulting in a heavy toll of casualties and displaced people.

The Valencian Community has been among the hardest-hit areas. In Pego, in the province of Alicante, 693 mm of rain was recorded over a 36-hour period.

As of October 20, the provisional toll stands at four fatalities, with over 2,100 people evacuated and hundreds of rescue operations carried out. Blocked roads, flooded homes, and vehicles swept away by the currents bear witness to the intensity of the event.

The severe weather is now also affecting southern France and Corsica. This Mediterranean weather system has primarily impacted the Languedoc region, with the departments of Hérault and Gard being of particular concern.

In the latest hours and days new massive floods are devastating some European countries. Below the footages from Spain, France, UK, Italy and Portugal in October, 2026

1st footage – Helicopters continue to rescue people trapped in Oliva (Valencia, Spain). The La Safor and La Marina Alta districts are the most severely affected.
2nd footage – An intense downpour hit El Palo, Málaga (Spain). The storm dumped nearly 60 liters per square meter in just 30 minutes, causing significant water accumulation on the streets.
3rd footage – Massive Flash Flood Turns a London Airport Baggage Hall Into a Raging River
4th footage – The famous giant waves of Nazaré are found at Praia do Norte, in the town of Nazaré, in the Western region of Portugal.

France

Italy

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FIRST POSTED on OCTOBER, 20, 2026

Harsh Floods in Las Vegas, Newport and Long Beach

El Niño Alert: WMO and Peterson Institute Warn of Up to $986 Billion in Damages by 2027

The current El Niño event could have far-reaching economic and humanitarian consequences. The World Meteorological Organization (WMO) predicts that the phenomenon will almost certainly persist until February 2027, while the Peterson Institute for International Economics estimates that global losses in 2027 could reach nearly $986 billion if the event’s intensity matches that of 1997–98.

The WMO has issued warnings regarding potential impacts on temperatures and precipitation, noting an increased risk of heatwaves, droughts, and floods.

In its Global Seasonal Climate Update for the September–November 2026 quarter, the organization forecasts a likely rise in temperatures across Europe—particularly in central and southern regions—along with a higher probability of above-average rainfall in Southern Europe.

The repercussions will extend beyond the climate. An analysis by the World Food Programme, cited in the study, indicates that among 45 countries already facing food insecurity, an additional 49 million people could fall into a state of severe food insecurity by the end of 2027. The most significant effects are expected in parts of Central America and Southern Africa, with substantial impacts also anticipated in East Africa, as well as South and Southeast Asia.

HAARP DOSSIER – 10. Military “GEOMAGNETIC STORMS” from Alaska at 3,6 MegaWatts (as Energy from 12,000 Homes). Over the “foF2 Frequency” that can “Modeling SPACE WEATHER” with Dangerous Impacts on Earth, Clouds (US-EU Studies – Videos)

From an economic perspective, the outlook is concerning: the Peterson Institute warns that, in addition to the nearly $1 trillion in losses projected for 2027 alone, cumulative losses over the following five years could exceed $7.2 trillion in the absence of coordinated intervention.

These figures have reignited the debate regarding the international community’s preparedness and response capabilities.

Extreme weather events in Italy have risen from 60 in 2015 to 376 in 2025.

On the mornign of October 9, 2026, in Marsala (Sicily, Italy) , a double waterspout struck the Alcide De Gasperi school, where approximately 270 children were present.

The building has been rendered unusable; reports vary, but five or six children sustained minor injuries. In Petrosino, two people are in critical condition (classified as “red code”) after their car was forced off the road. This is not an isolated incident.

Around the same time, severe weather rendered a nursery school in Viareggio unusable, left a school bus stranded in floodwaters in Giugliano, and caused a lightning strike on a 17th-century church in Forio d’Ischia.

Extreme weather events recorded in Italy have increased from 60 in 2015 to 376 in 2025—a sixfold increase in ten years.

The estimated cost of damages for 2025 alone is 11.9 billion euros. A national adaptation plan was approved at the end of 2023; the observatory tasked with its implementation began its work in February 2026, yet, according to Legambiente, the necessary funding is still missing.

MAIN SOURCES

GOSPA NEWS – ITALIAN VERSION

GOSPA NEWS – CLIMATE GEOENGINEERING DOSSIER

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RELATED POSTS AND VIDEOS

HAARP DOSSIER – 9. CYCLONES, LANDSLIDES and POLAR VORTEX after New SECRET U.S. MILITARY TESTS. Electromagnetic Bombing from Alaska Station Before Climate Disasters

The FURY of RING of FIRE STRUCK AGAIN! 7.7 Earthquakes in Panama after 7,2 in Peru (VIDEO). Wild Weather or Geoengineering Nightmares inside HAARP & HARP, US Pentagon partner?

WEATHER WARFARE & GEOENGINEERING HISTORY. From Operation Popeye to recente Devastating storm ‘Ditwah’ in Asia

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Europe is supposed to be financing its defence together. It barely is.

Of the €800bn announced under ReArm Europe in March 2025, €650bn is not common money. It is an estimate of the extra room governments get under the national escape clause to spend up to 1.5 percent of GDP more on defence for four years.

Each country still pays for that spending itself.

The room is also temporary: EU Commission simulations suggest that maintaining higher defence spending after 2028 could require additional annual fiscal adjustment of 0.25 to 0.4 percentage points of GDP from 2029.

The other €150bn is SAFE, and it is loans, not grants.

The EU borrows and lends the money on, and each country repays its share. Grants are small: €1.5bn from the European Defence Industry Programme for 2025-2027, plus the European Defence Fund for joint research.

Not every country has used these tools, as Table 1 shows. The Netherlands and Sweden have used neither. Like Germany, which has taken only the clause, they can borrow at least as cheaply as the EU, so SAFE gets them nothing.

France has taken SAFE but not the clause, to protect the credibility of its budget plans.

Table 1. Who uses SAFE and the national escape clause

Source: Council of the EU, European Commission. Data as of 17 October 2026. * Hungary: allocated €16.2bn, now requesting €5.4bn; still pending. ** Italy: the Commission backed its request on 8 October 2026; the Council has yet to decide.

Where SAFE does matter is on the eastern flank. Latvia, Lithuania and Estonia can borrow the equivalent of five to eight percent of their GDP, and Poland almost five percent.

Graph 1. SAFE loans as a share of GDP, by country (%)

Source: Council of the EU, European Commission, Eurostat. SAFE loans only, as a share of 2025 GDP. Amounts approved by the Council, except Italy and Hungary (* revised requests of €8bn and €5.4bn, September 2026). Data as of 17 October 2026.

That leaves private money.

The European Investment Bank and the European Investment Fund are trying to bring in private investors, partly by removing the reputational stigma of financing defence.

But defence is almost a monopsony: the state is nearly the only buyer. Without a clear flow of public orders, private investment will be hard to come by.

So Europe barely borrows together. And it buys alone.

This article continues, but the full version is available only to EUobserver.com subscribers. Visit account.euobserver.com/membership

The European Commission has selected 77 industrial and technology projects across 23 European Economic Area countries to receive €3.4 billion in funding, as Brussels attempts to strengthen the continent’s manufacturing capacity and reduce dependence on imported energy and critical materials.

The funding, announced on Monday, 19 October, will come from the EU Innovation Fund, which uses revenues generated by the Emissions Trading System to support investment in technologies intended to reduce greenhouse gas emissions.

The selected projects include manufacturing facilities, renewable energy installations, advanced energy storage, critical raw materials processing and industrial carbon management. For the first time, the programme also includes a small modular nuclear reactor project and a direct air carbon capture and storage initiative.

The announcement comes amid growing concern over Europe’s industrial competitiveness, particularly as manufacturers face high energy costs, increasing competition from China and difficulties securing investment for major industrial projects.

Funding for industrial production

According to the Commission’s announcement, the 77 selected projects span energy-intensive industries, clean technology manufacturing, alternative fuels, transport and several other sectors.

Six projects concern critical raw materials, an area in which the EU has been seeking to reduce its exposure to foreign suppliers.

These investments are intended to strengthen European supply chains for technologies including batteries, renewable energy equipment and permanent magnets, which are essential components in electric motors and other industrial applications.

The funding follows renewed political pressure to expand the processing and production of strategically important materials inside Europe.

As EU Today recently reported, the European Parliament has been pressing for stronger measures to reduce dependence on China for critical raw materials used by European manufacturers.

China occupies a dominant position in several international processing and refining markets, leaving European companies exposed to supply interruptions and trade restrictions.

The Commission is seeking to support alternative production capacity through financial assistance, industrial regulation and measures designed to attract private capital.

However, the selection of projects for EU funding does not automatically mean that the proposed facilities will be built. Their implementation will still depend on financing agreements, regulatory approvals and commercial decisions.

Nuclear technology enters funding programme

The inclusion of a small modular nuclear reactor project represents a new development in the Innovation Fund’s portfolio.

Small modular reactors are designed to produce electricity or industrial heat using nuclear technology on a smaller scale than conventional nuclear power stations.

Supporters argue that modular construction could reduce certain project risks and provide stable electricity supplies for energy-intensive industries.

However, the technology faces substantial challenges involving construction costs, regulatory approval, supply chains and the transition from demonstration projects to commercial production.

The Commission published a European strategy for small modular reactors in March, outlining plans to accelerate their development and support the first operational facilities in the early 2030s.

The latest funding decision gives the technology access to a financial instrument principally associated with industrial decarbonisation and clean energy investment.

Another newly represented technology is direct air carbon capture and storage, which involves extracting carbon dioxide from the atmosphere and storing it.

Both technologies remain at comparatively early stages of commercial deployment in Europe, making their eventual costs and performance important considerations.

Emissions trading revenue finances investment

The Innovation Fund is financed through revenues from the EU Emissions Trading System, under which companies operating in covered sectors must obtain allowances for their greenhouse gas emissions.

Part of the revenue generated from auctioning allowances is reinvested into projects designed to introduce lower-emission technologies into industrial production.

The Commission estimates that the 77 newly selected projects could avoid approximately 290 million tonnes of greenhouse gas emissions during their first ten years of operation.

That figure is a projection based on the projects’ anticipated performance, rather than an achieved reduction. Actual results will depend on construction, commissioning and subsequent commercial operation.

The funding announcement also follows the publication of the EU’s broader industrial policy initiatives, which seek to increase domestic production of clean technologies and improve investment conditions for European manufacturers.

The Commission announced a separate allocation of more than €390 million to 135 environmental and climate projects under the LIFE programme on the same day. That funding is distinct from the €3.4 billion Innovation Fund selection.

Funding agreements still to be concluded

The companies and organisations behind the selected Innovation Fund projects must now complete the procedures necessary to obtain their grants.

During the Commission’s 19 October press briefing, officials indicated that project-specific grant amounts would become available when the agreements are signed, currently envisaged for the first quarter of 2027.

The final allocations and implementation conditions therefore remain subject to the grant preparation process.

For industrial companies, the principal test will be whether the European funding attracts sufficient additional investment to bring the selected technologies into commercial operation.

The results will also provide an indication of how effectively Brussels can translate its industrial policy objectives into additional European manufacturing capacity, particularly in sectors where supply chains remain concentrated outside the Union.

Image Credit: © European Union, 2024 / CC BY 4.0

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