EU leaders talk up Iran nuclear deal hoping to save it from Trump

EU leaders talk up Iran nuclear deal hoping to save it from Trump

By Gabriela Baczynska

BRUSSELS (Reuters) – European Union leaders on Thursday reaffirmed their full commitment to the 2015 nuclear deal between Iran and world powers, hoping that the U.S. Congress would not let it collapse despite relentless criticism by President Donald Trump.

But the bloc, reluctant to isolate itself completely from Washington, is also stepping up criticism of Iran’s ballistic missile program and its role in what the West sees as fomenting instability in the Middle East.

Trump last week adopted a harsh new approach to Iran by refusing to certify its compliance with the nuclear deal, struck with the United States and five other powers including Britain, France and Germany after more than a decade of diplomacy.

“We fully stay committed to the complete implementation by all sides of the Iranian nuclear deal. We see this as a key security interest for the European Union and the region,” said the bloc’s top diplomat, Federica Mogherini.

The EU leaders’ joint statement, agreed after talks in Brussels on Thursday, “reaffirms full commitment to the Iran nuclear deal”.

The bloc has been stepping up efforts to save the deal, saying it was crucial to regional and global security, and it has appealed to the U.S. Congress not to let it fall.

Trump has given Congress 60 days to decide whether to reimpose economic sanctions on Iran, lifted under the pact in exchange for the scaling down of a program the West fears was aimed at building a nuclear bomb, something Tehran denies.

The EU leaders also highlighted the need to protect their companies and investors dealing with Iran from any adverse effects should Washington reinstate the sanctions, officials said.

Should Trump walk away from the deal, Supreme Leader Ayatollah Ali Khamenei said on Wednesday that Iran would “shred” it.

The bloc sees the agreement as a chief international success of recent years, and fears tearing it apart would hurt its credibility as well as harming diplomatic efforts to defuse tensions around a nuclear stand-off with North Korea.

In outlining his tougher stance, Trump said Tehran must also be held accountable for advancing its ballistic missile program and its regional political role.

“We will defend the nuclear deal and stand by the nuclear deal and implement the nuclear deal. But we also don’t want to be standing on a completely opposing side to the U.S.,” an EU official said.

“If they withdraw, we would be left in a rather interesting company with China and Russia. So there may be an issue of separating the nuclear deal from the ballistic program and Iran’s regional role, sending signals on the latter two.”

Iran’s elite Islamic Revolutionary Guards (IRGC) said on Thursday the ballistic missile program would accelerate despite U.S. and EU pressure to suspend it, the semi-official Tasnim news agency reported.

The EU, which has expressed “concerns related to ballistic missiles and increasing tensions” in the Middle East, has said these issues should be discussed without direct links to the nuclear deal.

“They were never very fond of the nuclear deal in the first place but now the situation has changed a lot. Both many Democrats as well as some Republicans feel like they need to play a more active role on foreign policy to restrain the president,” the official said.

(Reporting by Gabriela Baczynska; Editing by John Stonestreet, Toni Reinhold)

Britain’s May urges EU to break deadlock in Brexit talks

Britain's Prime Minister Theresa May (C) attends the EU summit in Brussels, Belgium October 19, 2017. REUTERS/Yves Herman

By Elizabeth Piper and Alastair Macdonald

BRUSSELS (Reuters) – Prime Minister Theresa May urged the European Union on Thursday to break the deadlock and move forward with Brexit talks, asking the bloc’s leaders to respond with “urgency” on easing the fears of their citizens living in Britain.

Arriving at a two-day summit in Brussels with other EU leaders, May sought to lower any remaining expectation that she could win a breakthrough in the talks to unravel more than 40 years of union. Instead, she turned the focus to making progress in the coming weeks, particularly on citizens’ rights.

Weakened by losing her Conservative Party’s majority in a June election and failing to rally support at an ill-fated party conference, May cannot move on the EU’s insistence on increasing her pay offer for the divorce agreement.

She is hamstrung by demands in her own party for her to walk away unless the EU agrees to moving the talks forward to discuss trade, and Germany which does not want to be left with a large bill when Britain leaves the bloc in March 2019.

“We’ll … be looking at the concrete progress that has been made in our exit negotiations and setting out ambitious plans for the weeks ahead. I particularly, for example, want to see an urgency in reaching an agreement on citizens’ rights,” May told reporters.

But she avoided questions about increasing the amount Britain is willing to pay when it leaves the EU, instead referring back to a speech last month in Italy when she outlined an offer of around 20 billion euros ($24 billion) to try to improve the tone.

“That speech … set out that ambitious vision and I look forward to us being able to progress that in the weeks ahead,” she said.

Without a new offer on the money, May has attempted to change the focus by offering concessions on the protection of the rights of around 3 million EU citizens living in Britain, promising to make it as easy as possible for them to stay.

On her Facebook page, May wrote that “we are in touching distance of agreement” and asked the EU to show the “flexibility and creativity” to secure a deal in the coming weeks.

While welcome, this is unlikely to alter the outcome of the Brussels summit, where on Friday morning, when May has left, the bloc is expected to say the Brexit talks had not yet made enough progress for them to open the post-Brexit trade negotiations.

CHANGE OF TACK

That lack of movement has increased the pressure on May from her own party, particularly a small number of Brexit campaigners who have long said that the prime minister should walk away from the talks if the EU did not move them forward.

In an open letter to May on Thursday, pro-Brexit lawmakers and business people said that unless the talks moved to trade, Britain should signal it is ready to be subject to World Trade Organization (WTO) rules from March 30, 2019, when Brexit takes effect.

The government says it does not want to crash out of the EU and is working to secure a deal. But comments that ministers are planning for the possibility of a no deal have been pounced on by the Britain’s main opposition Labour Party.

Jeremy Corbyn, whose party has matched and sometimes beats May’s Conservatives in the opinion polls, arrived in Brussels on Thursday to meet EU lawmakers to try to break “the Brexit logjam” created by what he called government “bungling”.

Seen as having little chance of becoming prime minister last year, Corbyn is now being listened to in Brussels and was due to meet the bloc’s chief negotiator, Michel Barnier, and other officials on Thursday.

Recognising May’s position at home, EU leaders are expected to make a “gesture” by telling EU staff to prepare for talks on a transition period needed to ease uncertainty for business. But they warn there is still a lot to be done.

“We have to work really hard between October and December to finalise this so-called first phase and to start negotiating on our future relationship with the UK,” Donald Tusk, the chairman of EU leaders, said on Wednesday.

($1 = 0.8454 euros)

(additional reporting by William James and Estelle Shirbon in London, Philip Blenkinsop and Gabriela Baczynska in Brussels; Editing by Alison Williams)

EU defends Iran deal despite Trump, appeals to U.S. Congress

EU defends Iran deal despite Trump, appeals to U.S. Congress

By Robin Emmott and Gabriela Baczynska

LUXEMBOURG (Reuters) – The European Union on Monday reaffirmed its support for a 2015 nuclear deal between Iran and world powers despite sharp criticism of the accord by President Donald Trump, and it urged U.S. lawmakers not to reimpose sanctions on Tehran.

Trump defied both U.S. allies and adversaries on Friday by refusing to formally certify that Tehran is complying with the accord, even though international inspectors say it is, and said he might ultimately terminate the agreement.

EU foreign ministers meeting in Luxembourg said a failure to uphold an international agreement backed by the U.N. Security Council could have serious consequences for regional peace, and also undermine efforts to check North Korea’s nuclear ambitions.

“As Europeans together, we are very worried that the decision of the U.S. president could lead us back into military confrontation with Iran,” German Foreign Minister Sigmar Gabriel told reporters.

After a closed-door meeting chaired by EU foreign policy chief Federica Mogherini on Iran, the ministers issued a joint statement saying the 2015 deal was key to preventing the global spread of nuclear weapons.

“The EU is committed to the continued full and effective implementation of all parts of the JCPOA,” it said, referring to the Joint Comprehensive Plan of Action, the formal name of the accord with Iran agreed in July 2015 in Vienna.

Trump meanwhile renewed his criticism of the accord, and raised the possibility he might try to end it completely.

“We’ll see what phase two is. Phase two might be positive, and it might be very negative. It might be a total termination. That’s a very real possibility. Some would say that’s a great possibility,” the U.S. president said in Washington. He repeated his contention that the JCPOA was “a horrible deal for the United States.”

EU foreign ministers said the accord was crucial to opening up Iran’s $400-billion economy and finding a new market for European investors. Unlike the United States, the EU saw relations with Iran flourish in the late 1990s until revelations about Tehran’s nuclear plans in 2002.

“Non-proliferation is a major element of world security and rupturing that would be extremely damaging,” French Foreign Minister Jean-Yves Le Drian told reporters. “We hope that Congress does not put this accord in jeopardy.”

Mogherini said she would travel to Washington early next month to try to muster support for the accord.

The International Atomic Energy Agency (IAEA) says Iran is complying with its commitments under the accord, which Trump has branded “the worst deal ever negotiated”.

The EU still has sanctions in place against members of Iran’s Islamic Revolutionary Guard Corps, a major target of Trump’s criticism.

The EU ministers also discussed on Monday Iran’s ballistic missile program, which they want to see dismantled. Tehran says that program is purely defensive.

NORTH KOREA SPILLOVER

Negotiated after 12 years of talks, the accord with Iran is the most significant diplomatic success for the bloc in several decades.

Many worry that the EU’s reputation as an honest broker in a host of future conflicts may not recover if the U.S. Congress reimposes sanctions on Iran and causes the deal – which had the strong backing of Trump’s predecessor Barack Obama – to unravel.

Most U.N. and Western sanctions were lifted more than 18 months ago under the deal, though Tehran is still subject to a U.N. arms embargo, which is not part of the deal.

EU foreign ministers also approved a new batch of economic sanctions on North Korea after its atomic test last month that included an oil embargo and investment ban.

But some still hold out hope of repeating the Iran nuclear deal with Pyongyang at some future date.

Sweden is one of only seven EU countries with an embassy in Pyongyang and its foreign minister, Margot Wallstrom, reiterated that Stockholm could be counted on to help negotiate if asked.

But Germany’s Gabriel warned that Trump’s decision not to certify the Iran accord could scupper such hopes, a position echoed by Mogherini, although she stressed that no such EU mediation was underway.

“My concern is that, if we want to talk to North Korea now, the possible end for the nuclear deal with Iran would jeopardize the credibility of such treaties,” Gabriel said.

(Additional reporting by Peter Maushagen in Luxembourg, Lily Cusack in Brussels and Roberta Rampton in Washington; Editing by Gareth Jones and Alistair Bell)

EU to ban business ties with Pyongyang over nuclear tests

North Korean leader Kim Jong-Un inspects the January 18 General Machine Plant in Pyongyang, North Korea in this undated photo released by North Korea's Korean Central News Agency (KCNA) on August 10, 2016. KCNA/via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. NO THIRD PARTY SALES. SOUTH KOREA OUT. NO COMMERCIAL OR EDITORIAL SALES IN SOUTH KOREA.

By Robin Emmott

BRUSSELS (Reuters) – The European Union is set to agree on Monday to ban business ties with North Korea, part of a new package of sanctions to isolate Pyongyang over its nuclear and missile programs.

The practical impact of the moves is likely to be mostly symbolic: Brussels will impose an oil embargo and a ban on EU investment, but it sells no crude to North Korea and European companies have no substantial investments there.

North Korean workers in the EU, of which Brussels estimates there are about 400 mainly in Poland, will face a lower limit on the amount for money they can send home and their work visas will not be renewed once they expire.

The measures to be agreed by EU foreign ministers in Luxembourg go further than the latest round of multi-lateral sanctions imposed by the United Nations Security Council.

“The North Koreans appear to be uninterested in having the EU get involved as a peace mediator,” said an EU diplomat. “The North Koreans want direct talks with the United States, but President (Donald) Trump has ruled that out,” the diplomat said.

The sanctions will add three more top North Korean officials and six businesses to a blacklist banning them from travel to the EU and freezing their assets. That will take the total of those sanctioned by the EU to 41 individuals and 10 companies, a senior EU official said. Separately, U.N. sanctions target 63 people and 53 companies and institutions.

“We have in place everything that we possibly could do to try to get the DPRK to change their behavior,” the EU official said, using North Korea’s official name of the Democratic People’s Republic of Korea.

Although the EU does not export crude to North Korea, its aim is to push other countries to ban oil exports, either unilaterally or at the United Nations. The U.N. Security Council last month capped North Korean imports of crude oil, but China and Russia resisted an outright ban.

Diplomats said that if Pyongyang launches more missiles, the EU could consider imposing sanctions on non-EU firms doing business with Pyongyang, as the United States has done.

However, such “secondary sanctions” need clear evidence to avoid legal challenges and the bloc is reluctant to anger China, a top trading partner, by targeting Chinese people and firms.

(Reporting by Robin Emmott; editing by Peter Graff)

‘They have to pay’, EU’s Juncker says of Britain

President of the European Commission Jean-Claude Juncker listens at a news conference during the European Union Tallinn Digital Summit in Tallinn, Estonia, September 29, 2017. REUTERS/Ints Kalnins

LUXEMBOURG (Reuters) – Britain must commit to paying what it owes to the European Union before talks can begin about a future relationship with the bloc after Brexit, European Commission President Jean-Claude Juncker said on Friday.

“The British are discovering, as we are, day after day new problems. That’s the reason why this process will take longer than initially thought,” Juncker said in a speech to students in his native Luxembourg.

“We cannot find for the time being a real compromise as far as the remaining financial commitments of the UK are concerned. As we are not able to do this we will not be able to say in the European Council in October that now we can move to the second phase of negotiations,” Juncker said.

“They have to pay, they have to pay, not in an impossible way. I’m not in a revenge mood. I’m not hating the British.”

The EU has told Britain that a summit next week will conclude that insufficient progress has been made in talks for Brussels to open negotiations on a future trade deal. London has been hoping and pressing for this to happen at the summit.

(Reporting by Philip Blenkinsop in Brussels; Editing by Alastair Macdonald)

EU lawmakers give tentative nod to Brexit clearing law that could clobber Britain

European Commission President Jean-Claude Juncker addresses the European Parliament during a debate on The State of the European Union in Strasbourg, France, September 13, 2017. REUTERS/Christian Hartmann

By Huw Jones

LONDON (Reuters) – European Union lawmakers on Tuesday gave broad support to a law that could end the City of London’s global dominance in clearing euro-denominated financial contracts after Brexit.

The plan has raised hackles in Britain, where it threatens both job losses and tax revenues.

The draft EU law proposes that a foreign clearing house — which stands between two sides of a transaction to ensure its smooth completion — must be subject to more intense supervision by the bloc’s regulators if it wants to serve customers in the EU.

But if a clearing house is systemically important to the euro zone, then euro-denominated business with EU based customers must move to the bloc.

The draft law is anathema to Britain, which voted to leave the EU in a referendum last year.

It is home to LCH, an arm of the London Stock Exchange that clears most euro-denominated swaps in Europe. Financial services represent Britain’s biggest tax earning sector and the LSE has warned that thousands of jobs could leave the UK if euro clearing was forced out.

In the first debate in the European Parliament on Tuesday, lawmakers from the two biggest parties, the center right European People’s Party and the center-left Progressive Alliance of Socialists and Democrats, gave broad backing to the draft law, but called for some changes.

“It’s a good proposal from the European Commission,” Polish center-right MEP Danuta Huebner told parliament’s economic affairs committee.

“In principle, I support the proposal, which I find necessary,” added Roberto Gualtieri, an Italian center-left lawmaker who chairs the committee.

The European Parliament and EU states have final say on the reform, with changes expected during the approval process.

No timetable has been agreed for approving the law and, separately, there has been scant agreement on any new relationship between the EU and Britain.

That means LCH’s European customers don’t know at the moment if they can continue using the London clearer after Brexit.

Exploit this uncertainty, Frankfurt-based Eurex unveiled a “Brexit-proof” package of sweeteners on Monday to woo LCH customers.

BREXIT PROTECTIONISM

Huebner said parts of the draft law were too complex, creating uncertainty over how exactly EU regulators and the European Central Bank would decide when euro clearing conducted outside the bloc must move to the EU.

“We have to do everything to avoid potential inconsistency in decision-making,” Huebner said. “We must not politicize the whole process.”

Gualtieri said there was a need to “upgrade” EU supervision of clearing, but lawmakers should be “very cautious, reflective and in a listening mood” given the potential consequences.

Others said there was need to avoid protectionism or using clearing as a stick to beat Britain given that the UK was already “fighting with itself”.

Kay Swinburne, a British center-right lawmaker, a lone voice in outright opposition, said a regional restriction on a global currency is the wrong approach.

“There is a reason why we have done so much work at the global level, and I really hope that we are not going to throw all of that away to have some protectionism with regards to a Brexit decision,” Swinburne added.

Banks and the LSE have warned that forcing out some clearing would split markets and bump up costs for EU companies who use swaps to insure against adverse moves in borrowing costs, raw material prices, and currency swings.

(Reporting by Huw Jones Editing by Jeremy Gaunt)

UK top court seeks clarity on how to handle EU rulings after Brexit

The Union Flag and European Union flags fly near the Elizabeth Tower, housing the Big Ben bell, during the anti-Brexit 'People's March for Europe', in Parliament Square in central London, Britain September 9, 2017. REUTERS/Tolga Akmen

By Estelle Shirbon

LONDON (Reuters) – Britain’s Supreme Court would like clearer guidance from parliament on how it should deal with European Union court judgments after Brexit, its new president said on Thursday.

The issue of what weight, if any, judgments of the European Court of Justice (ECJ) will have in British law after the United Kingdom leaves the European Union is one of many thorny areas in the Brexit negotiations.

Brenda Hale, who was sworn in as president of the Supreme Court on Monday after serving as one of its justices for 13 years, said she and her colleagues were looking for guidance from parliament on the issue.

“We hope that the European Union Act, when it’s eventually passed, will tell us what we should be doing – giving us the power to take into account, or saying we must take into account, or saying we must ignore,” she told reporters.

“Whatever parliament decides we should do, we would like to be told because then we’ll get on and do it.”

A government policy paper issued in August said Britain wished to leave the “direct jurisdiction” of the ECJ while also recognizing that future civil judicial cooperation would need to take into account “regional legal arrangements” such as the ECJ.

The European Union says that for certain issues, such as the rights of EU citizens in Britain, the ECJ must continue to have its say – a stance strongly rejected by the most ardent advocates of Brexit.

Hale said the government policy papers issued over the summer were “at quite a high level of generality” and described them as aspirational.

But she praised the formulation used by Prime Minister Theresa May in a major speech on Brexit in Florence on Sept. 22. May said that where there was uncertainty around EU law, she wanted UK courts to be able to “take into account” ECJ judgments.

“‘Take account’ is quite useful because it does give one the power to take it into account, but also the power to say ‘for the following good reasons, we think something else,'” said Hale.

Her deputy, Jonathan Mance, said the form of words used in the EU Withdrawal Bill currently going through parliament was “a weaker formula”.

The bill says that British courts “need not have regard to anything done on or after exit day by the European Court … but may do so if it considers it appropriate to do so”.

(Editing by Stephen Addison)

EU’s diplomatic back channel in Pyongyang goes cold

FILE PHOTO: North Korea's leader Kim Jong Un makes a statement regarding U.S. President Donald Trump's speech at the U.N. general assembly, in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang September 22, 2017. KCNA via REUTERS/File Photo

By Robin Emmott

BRUSSELS (Reuters) – While European powers France and Britain are lobbying Washington to cool tensions since North Korea’s most powerful nuclear test a month ago, EU nations with embassies in Pyongyang are directly pressing the North Koreans.

A group of seven European Union countries – the Czech Republic, Sweden, Poland, Romania and Bulgaria, as well as Britain and Germany – held at least two formal meetings with North Korean officials in Pyongyang in September, three EU diplomats said.

But they felt frustrated because the higher-level access that they had obtained in Pyongyang last year had fallen away, with only medium-ranking foreign ministry officials now attending the meetings, the diplomats said.

“There was a sense that we weren’t really getting anywhere because they sent these department heads,” said a Brussels-based diplomat who had been briefed on the meetings, which were described as “very serious” in atmosphere and tone.

“They want to talk to the United States.”

The White House has ruled out such talks, with President Donald Trump telling Secretary of State Rex Tillerson he would be “wasting his time” negotiating with the North Koreans.

The United States has no embassy in Pyongyang and relies on Sweden, the so-called U.S. protecting power there, to do consular work, especially when Westerners get into trouble.

In contrast to recent meetings, when North Korean officials met EU envoys in the Czech Republic’s embassy in 2016 to discuss issues including cultural programs and regional security, a deputy foreign minister would attend, one EU diplomat said.

For the small club of European Union governments with embassies in North Korea, that reflects Pyongyang’s anger at the EU’s gradually expanding sanctions that go beyond those agreed by the United Nations Security Council.

It could have repercussions for broader EU efforts to help mediate in the nuclear crisis, according to the EU diplomats briefed by their colleagues in Pyongyang, as the bloc prepares more measures against North Korea.

EU foreign policy chief Federica Mogherini, who chaired talks on the historic 2015 nuclear deal with Iran, says the bloc is ready to mediate in any talks aimed at freezing North Korea’s missile and nuclear weapons programs.

But at the same time, the European Union wants an oil embargo on Pyongyang that it hopes other countries will follow.

Some EU governments are pushing to cancel North Korean work permits in Poland and other eastern European countries because EU officials believe workers’ salaries are deposited in bank accounts controlled by the regime in Pyongyang.

“The North Koreans are starting to see the EU as a U.S. puppet, but we stress that we are an honest broker,” said a second EU diplomat.

‘KEEP IT A SECRET’

Links with the EU embassies go back years. Communist Czechoslovakia was a leading supplier of heavy machinery to North Korea. As a Soviet satellite, Czechoslovakia established diplomatic ties with North Korea in 1948, along with Poland and Romania.

The seven European embassies in Pyongyang are among only 24 foreign missions there, including Russia, China and Cuba.

The EU’s status as a potential broker relies, in part, on Sweden, which was the first Western European nation to establish diplomatic relations with the North in 1973.

Sweden is a member of the Neutral Nations Supervisory Commission, which was set up to oversee the 1953 armistice between North and South Korea, undertake inspections, observe military exercises and promote trust between the two sides.

Czechoslovakia was also a member of the Neutral Nations Supervisory Commission until the early 1990s.

Sweden played a key role in the release of Canadian pastor Hyeon Soo Lim and of U.S. student Otto Warmbier earlier this year. But Sweden has strongly backed the EU sanctions.

The seven European embassies are limited in what they can say because North Korean staff, required by the government to work at the EU embassies, are expected to double as informants for Pyongyang, the diplomats said.

“Sanctions and pressure … Sadly, we don’t have anything else,” said an EU diplomat in Brussels.

The joint meetings with the North Koreans, usually held at a single European mission, have been focused on the release of imprisoned Westerners, not big diplomatic initiatives.

But as efforts intensify to calm U.S. and North Korean threats of war, they could still prove an important channel to pass messages between Pyongyang and Washington.

“In the best case, we could perhaps facilitate an opening of a diplomatic track between the North Koreans and the United States,” said Carl Bildt, a former Swedish prime minister and foreign minister from 2006 to 2014.

Bildt said anything the EU does must be kept secret.

“If the EU does something along these lines, the first thing the EU should do is not to talk about it. Talking about it is a pretty good way to ensure that one can’t do it,” he said.

NO SAFETY NET

Mathieu Duchatel, a North Korea expert at the European Council on Foreign Relations, a think-tank that Bildt also now helps oversee, said the European Union could chair talks between China and the United States.

Washington and Pyongyang have no hotlines to prevent crises from spinning out of control and it is not clear what Beijing’s reaction would be if the United States intercepted a North Korean missile test, Duchatel said.

For now, Paris is in contact with White House National Security Adviser H.R. McMaster and White House Chief of Staff John Kelly, diplomats said, noting French President Emmanuel Macron’s budding relationship with U.S. President Donald Trump.

Lieutenant General McMaster and Kelly, a retired four-star Marine Corps general, have a soft spot for France born of their admiration for the French military, the diplomats said.

It is unclear if that translates into a direct impact on Trump’s thinking on North Korea, European diplomats said.

“They are trying to normalize Trump, but I don’t think Trump can be normalized,” said a senior French diplomat. “To get him to listen, heads of state need to speak to him directly.”

Macron, who has ruled out a military option, has said he believes he could convince Trump to avoid armed intervention. Macron’s position is to keep repeating the mantra of patience and dialogue to Trump, diplomats said.

(Additional reporting by John Irish in Paris; editing by Giles Elgood)

Cyber alert: EU ministers test responses in first computer war game

Cyber alert: EU ministers test responses in first computer war game

By Robin Emmott

TALLINN (Reuters) – European Union defense ministers tested their ability to respond to a potential attack by computer hackers in their first cyber war game on Thursday, based on a simulated attack on one of the bloc’s military missions abroad.

In the simulation, hackers sabotaged the EU’s naval mission in the Mediterranean and launched a campaign on social media to discredit the EU operations and provoke protests.

Each of the defense ministers tried to contain the crisis over the course of the 90-minute, closed-door exercise in Tallinn that officials sought to make real by creating mock news videos giving updates on an escalating situation.

German Defence Minister Ursula von der Leyen said the “extremely exciting” war game showed the need for EU governments to be more aware of the impact of cyber attacks on critical infrastructure in the EU.

“The adversary is very, very difficult to identify, the attack is silent, invisible,” Von der Leyen told reporters. “The adversary does not need an army, but only a computer with internet connection”.

After a series of global cyber attacks disrupted multinational firms, ports and public services on an unprecedented scale this year, governments are seeking to stop hackers from shutting down more critical infrastructure or crippling corporate and government networks.

“We needed to raise awareness at the political level,” Jorge Domecq, the chief executive of the European Defence Agency that helped organize the exercise with Estonia, told Reuters.

Especially concerned about Russia since it seized Crimea from Ukraine in 2014, Estonia has put cyber security at the forefront of its six-month EU presidency and proposed the exercise.

Estonia was hit by cyber attacks on private and government Internet sites in 2007. One of the world’s most Internet-savvy countries, with 95 percent of government services online, Estonia has a separate cyber command in its armed forces. But it is not without its vulnerabilities.

International researchers have found a security risk with the chips embedded in Estonian identity cards that could allow hackers to steal people’s identities, although officials said there was no evidence of a hack.

INCIDENT, THREAT OR ATTACK?

NATO last year recognized cyberspace as a domain of warfare and said it justified activating the alliance’s collective defense clause. The European Union has broadened its information-sharing between governments and is expected to present a new cyber defense plan.

The EU exercise made ministers consider how to work more closely with NATO, whose Secretary-General Jens Stoltenberg was there as an observer, diplomats present said.

“Over the last year, we saw a 60 percent increase in the number of cyber attacks against NATO networks,” Stoltenberg told reporters. “A timely exchange of information (with the EU) is key to responding to any cyber attacks.”

EU cyber exercises are not new, but officials said the idea of Thursday’s exercise was to put the onus on defense ministers to act by simulating a temporary loss of military operational command, even if they would have more support in a real-life situation.

Using tablet computers, ministers answered multiple-choice questions as they reacted to the situation, including some on whether they would make public statements or keep the situation secret.

“Do you announce to the whole country that you are under a cyber attack. Is it an incident, a threat or an attack? These are the questions that ministers were forced to consider, probably for the first time,” Estonian Defence Minister Juri Luik told Reuters.

(Reporting by Robin Emmott; Editing by Hugh Lawson)

Top EU court rules eastern states must take refugees

FILE PHOTO: Migrants face Hungarian police in the main Eastern Railway station in Budapest, Hungary, September 1, 2015. REUTE/Laszlo Balogh/File Photo

By Michele Sinner

LUXEMBOURG (Reuters) – The European Union’s highest court ruled on Wednesday that EU states must take in a share of refugees who reach Europe, dismissing complaints by Slovakia and Hungary and reigniting an angry row between east and west.

The government of Hungary’s nationalist Prime Minister Victor Orban was characteristically blunt about the European Court of Justice, calling its decision to uphold an EU policy drafted in the heat of the 2015 migrant crisis as “appalling” and denouncing a political “rape of European law and values”.

However, Germany, which took in the bulk of over a million people who landed in Greece two years ago, said it expected the formerly communist states, including Poland, which supported the complaint, to now fall in line and accept the ruling that the Union is entitled to impose quotas of asylum-seekers on states.

The Luxembourg-based ECJ rejected the Hungarian and Slovak claims that it was illegal for Brussels to order them to take in hundreds of mainly Muslim refugees from Syria, which they said threatened the security and stability of their societies.

“The mechanism actually contributes to enabling Greece and Italy to deal with the impact of the 2015 migration crisis and is proportionate,” the court said in statement.

Italy, now the main destination for migrants risking the Mediterranean crossing, is prominent among wealthier, Western states in threatening their eastern neighbors with cutting their EU subsidies if they do show solidarity by taking people in. Slovak Prime Minister Robert Fico said he would still not take a quota but was ready to help in other ways.

A sharp decline in numbers arriving, partly a result of the effective closure of routes from Turkey to Greece and from Greece into Macedonia and toward northern Europe, has taken some of the heat out of the arguments and diplomats expect the EU executive, the European Commission, to propose new ideas.

“We can expect all European partners to stick to the ruling and implement the agreements without delay,” German Foreign Minister Sigmar Gabriel said in a statement.

The eurosceptic AfD party, which expects to win seats in the Berlin parliament at a national election on Sept. 24, criticized the court ruling as proof that unelected “Brussels bureaucrats” were imposing on states — though in fact the Commission’s quota policy was backed by a majority of the member state governments.

EU Migration Commissioner Dimitris Avramopoulos tweeted: “Time to work in unity and implement solidarity in full.”

“RAPE OF LAW AND VALUES”

Calling the court ruling “appalling and irresponsible”, Hungarian Foreign Minister Peter Szijjarto said: “This decision jeopardizes the security and future of all of Europe.

“Politics has raped European law and values.”

EU asylum law states that people arriving in the bloc should claim asylum in the first member state they enter but that rule was exposed as unworkable when hundreds of thousands arrived in economically struggling Greece and Italy. Arguments over what to do struck at the heart of the Union’s cooperation and chaotic movements of people saw member states try to seal borders with each other, dealing a heavy blow to a key EU achievement.

The migration crisis came at a time of deep soul-searching about the Union’s future and some questioned its survival.

However, a drop in migrant numbers, to which cooperation on tightening the common external border has contributed, as well as an economic upturn and election defeats for anti-immigrant parties has steadied nerves in Brussels, despite the difficulty posed by Britain’s vote last year to exit the bloc.

The program provided for the relocation of up to 120,000 people from Greece and Italy, but less than 30,000 have so far been moved, partly through difficulties in identifying suitable candidates. A further program for resettling people directly from outside the EU has also struggled to hit targets.

Hungary and Poland have refused to host a single person under the 2015 sharing scheme, while Slovakia and the Czech Republic have each taken in only a dozen or so.

While the EU has sought in vain to come up with a compromise, the court ruling may just force Brussels’ hand.

It is a delicate balancing act as putting such a thorny issue to a vote, and possibly passing a migration reform despite opposition from several states, would cause even more bad blood.

“If we push it through above their heads, they will use it in their anti-EU propaganda at home,” another EU diplomat said of Poland and Hungary, where the nationalist-minded governments are embroiled in disputes with Brussels over democratic rules.

“But the arrivals are low, we have it more or less under control, so we have to get back to the solidarity mechanism.”

(Additional reporting and writing in Brussels by Gabriela Baczynska and Alastair Macdonald; editing by Philip Blenkinsop and Angus MacSwan)