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Spanish row fuels north–south tensions ahead of tough EU budget talks

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Spanish row fuels north–south tensions ahead of tough EU budget talks

The Spanish government is seeking to contain a scandal linked to EU pandemic funds, categorically denying that it used European money to pay pensions, as member states prepare for tough budget talks amid deep divisions over how funding should be allocated.

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An official in Madrid with direct knowledge of how EU funds are structured told Euronews that a technical matter is being instrumentalised in a way that is “simply false”, accusing the opposition of playing politics over what it describes as an accounting issue.

A Spanish budget watchdog reported earlier this month that the government of Pedro Sánchez used budget credits linked to the EU’s Recovery and Resilience Facility (RRF), an economic plan partly funded through common debt designed to revitalise the bloc’s economy after Covid, to partly finance Spanish pensions in November 2024.

Madrid insists it did not breach the rules.

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The European Commission asked Madrid for clarification after initial newspaper reports, according to a person familiar with the matter. It did not issue a follow-up request once Madrid provided an explanation, and Spanish authorities consider the issue closed.

However, the political scandal lingers, even as Madrid insists that “not a single euro” of EU money has been misused, amid backlash in so-called frugal countries. Spain and Italy were the biggest beneficiaries of the €750 billion recovery fund approved in summer 2020 after difficult talks.

In Madrid, the opposition People’s Party has demanded that Sánchez appear before Congress to explain the matter. The issue is also making waves in the European Parliament, with strong reactions from conservative lawmakers.

“If these allegations are confirmed, we are facing a serious abuse of European taxpayers’ money,” wrote Tomáš Zdechovský (Czechia/EPP), an influential centre-right member of the European Parliament’s budgetary committee, on X. “Europe cannot tolerate any misuse of recovery funds.”

“Is €10 billion in EU funds, intended for recovery after the pandemic, quietly being used to help pay Spanish pensions? It would confirm our worst fears about these funds,” said Dirk Gotink (The Netherlands/EPP).

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Madrid sources insist the issue is being overblown for political purposes.

A government official pointed to the country’s economic performance and pushed back against the frugal-versus-south narrative, which often presents the wealthier north subsidising the weaker south. “Spain is the fastest growing economy in Europe, Germany is not paying our pensions,” said a second Madrid official.

The incident does, however, underscore the additional complications the country is facing due to its inability to approve a budget in a fragmented parliament. After failing to deliver a fresh budget for 2025, Madrid was forced to roll over a plan approved in 2023.

A fight over the EU’s financial future

The timing of the controversy is particularly sensitive.

Brussels is preparing to launch negotiations on the next Multiannual Financial Framework (MFF), the EU’s seven-year budget for 2028–2034, and a central question will be what to do with the roughly €750 billion in joint debt accumulated through the recovery plan.

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That programme was the largest and most politically consequential collective borrowing exercise in EU history. Whether it is ultimately seen as a success or a cautionary tale will inevitably shape how member states approach future proposals for shared financing.

Spain, the second-largest recipient of the initiative’s funding with a total of around €60 billion already received, has been among the most vocal advocates for an ambitious European budget and a permanent mechanism to pool financing needs.

Spanish Finance Minister Carlos Cuerpo has argued that pooling national debt at the EU level could generate annual savings of up to €25 billion.

Cuerpo, who is now Sánchez’s number two in government, echoed remarks made by France, Mario Draghi and a number of European intellectuals calling for a more efficient borrowing mechanism that would allow the EU to tap into the European Commission’s triple-A rating and lower financing costs for all 27 member states.

While the European Commission’s current budget proposal does not include new borrowing, contentious debate lies ahead over how to finance the repayment of existing recovery debt. Frugal northern countries like the Netherlands and Germany favour strict repayment schedules, even if that means cuts to other spending programmes.

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On Thursday, German Chancellor Friedrich Merz reiterated his country’s opposition, even if the German central bank has been more nuanced about the benefits and risks of pooling debt.

Southern member states, including France and Greece, are pushing to roll over the debt accumulated during the pandemic, with President Emmanuel Macron describing calls for early repayments as “idiotic”. Paris is an advocate of a European safe-asset mechanism.

A European official supportive of the plan said the Spanish controversy is being weaponised not so much against Madrid, but against proposals put forward by southern countries ahead of the budget talks.

“I wouldn’t be surprised if this is used to kill rollover proposal,” the diplomat said.

The issue of the next European budget will feature in an EU summit scheduled in June.

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Mubi to Publish Lost ‘Faust’ Bible on Centenary of F.W. Murnau’s Silent Cinema Classic (EXCLUSIVE)

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Mubi to Publish Lost ‘Faust’ Bible on Centenary of F.W. Murnau’s Silent Cinema Classic (EXCLUSIVE)

Arthouse distributor, streamer, production company and — since 2015 — publisher Mubi is set to release a book about the silent era classic “Faust” containing material that was until recently thought lost.

“The Faust Bible: The Making of F.W. Murnau’s Masterpiece” is being published by Mubi Editions, presented in partnership with la Cinémathèque française, which will publish globally on Oct. 17.

The book marks 100 years since F.W. Murnau’s fantasy epic, considered one of the prime examples of German expressionist cinema, and brings to light a recently-unearthed artefact of film history: a visual diary of approximately 400 photographs and original illustrations documenting the making of the film almost step-by-step.

Compiled by “Faust” crew members Robert Herlth, Carl Hoffmann, and Walter Röhrig, and originally presented to Murnau inside a prop Bible, this collection was gifted as a memento to the director on the film’s completion and ahead of his move from Germany to Hollywood. However, it was then lost for many years, thought to have been destroyed in World War II, before its recent rediscovery and painstaking restoration by la Cinémathèque française, who acquired it for their collection in 2017.

Now published in full for the very first time, “The Faust Bible: The Making of F.W. Murnau’s Masterpiece” will contain stills and sketches showcasing the film’s lavish costuming and set design, plus detailed storyboarding.

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The publication is guided by Laurent Mannoni, scientific director of heritage at la Cinémathèque française, who also contributes a newly commissioned essay and annotations on the discovery of the Bible and its rare contents. Accompanying him are Stefan Drössler, director of the Filmmuseum München, writing on the production history of the film, and K.J. Relth-Miller, director of film programs at the Academy Museum of Motion Pictures, on the film’s lasting legacy in contemporary cinema.

”Preserving and revitalizing film history is at the heart of what we do at Mubi,” said Daniel Kasman, Mubi’s vice president of publishing. “The discovery of the astonishing Faust ‘Bible’ presents a beautiful opportunity to share this glorious classic of silent cinema with audiences new and old. It offers profound new insight into the mind of one of cinema’s greatest auteurs, revealing the meticulous artistry behind this groundbreaking visual fantasia, created by some of the most talented craftspeople of their day—while standing as a remarkable work of art in its own right.”

To mark both the book’s publication and the centenary of “Faust,” Mubi will present a series of international events and screenings throughout autumn 2026, including a public launch at la Cinémathèque française in Paris on Oct 17. Further details are to be announced.

“One of the most influential and pioneering filmmakers of the silent era, F.W. Murnau was known for the privacy of his film sets,” said la Cinémathèque française’s Mannoni. “Reluctant to welcome visitors, he was even less inclined to reveal his creative process. The rediscovery of the Faust ‘Bible’ offers extraordinary insight into the making of one of cinema’s great masterpieces. Published in its entirety for the first time, it allows readers to trace the creation of this legendary film.”

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Trump says Venezuela earthquakes left ‘devastating number of deaths’ as US readies aid

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Trump says Venezuela earthquakes left ‘devastating number of deaths’ as US readies aid

NEWYou can now listen to Fox News articles!

President Donald Trump said late Wednesday that two powerful earthquakes that struck Venezuela had caused what he described as “a devastating number of deaths” as officials continued assessing the extent of the disaster.

Venezuela’s interim President Delcy Rodríguez later said at least 32 people were killed and more than 700 were injured in the earthquakes, marking the country’s first official casualty figures.

Trump’s comments came after back-to-back earthquakes rocked Venezuela earlier Wednesday, causing widespread damage, including in the capital of Caracas, where buildings were damaged, and rescue crews searched through rubble.

In a Truth Social post, Trump said the pair of “massive” earthquakes had caused widespread devastation.

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PLAYERS, FANS FLEE STADIUM AS POWERFUL EARTHQUAKES STRIKE DURING VENEZUELA BASEBALL GAME

First responders attend a damaged building in Los Palos Grandes, Caracas, after a magnitude 7.2 earthquake struck Venezuela and the Caribbean on June 24, 2026. (Jesus Vargas/Getty Images)

“The two major earthquakes that just hit the great people of Venezuela are both massive in scale and have left a devastating number of deaths,” Trump wrote.

Trump said the United States was prepared to assist with the ongoing response.

“The U.S.A. stands ready, willing, and able to help!” Trump said. “I have instructed all agencies of our government to get ready to move quickly. We will be there for our new and great friends.”

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Trump added that early reports from Venezuela were “not good.”

US RENEWS ‘DO NOT TRAVEL’ ALERT OVER TERRORISM, KIDNAPPING AMID TRUMP NARCO-TERROR FIGHT

Rescue workers search through the rubble after an earthquake in Caracas, Venezuela, Wednesday, June 24, 2026. (AP Photo/Javier Campos)

According to the U.S. Geological Survey, an initial magnitude 7.2 earthquake struck at 6:04 p.m. ET, with its epicenter about 15 miles east-northeast of San Felipe.

Just 39 seconds later, a magnitude 7.5 quake struck with its epicenter about 14 miles southeast of Yumare.

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“High casualties and extensive damage are probable, and the disaster is likely widespread,” the USGS said in a rare red alert statement.

TRUMP ISSUES DIRECT WARNING TO VENEZUELA’S NEW LEADER DELCY RODRÍGUEZ FOLLOWING MADURO CAPTURE

Rescuers search for victims in a collapsed building following an earthquake in Caracas on June 24, 2026. (Manaure Quintero / AFP via Getty Images)

Officials said the earthquakes were among the strongest to strike Venezuela in more than a century.

Rodríguez declared a state of emergency Wednesday after the earthquakes, which were followed by nearly two dozen aftershocks.

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In a televised address later that day, Rodríguez urged Venezuelans to remain calm.

“We urge our population to remain calm,” Rodríguez said. “We urge unity.”

VENEZUELA RELEASES ALL KNOWN AMERICAN DETAINEES FOLLOWING MADURO CAPTURE AND GOVERNMENT TAKEOVER

On Thursday, Rodríguez announced that at least 32 people had been killed and more than 700 others injured in the earthquakes.

“We urge our population to remain calm,” Rodríguez said. “We urge unity.”

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U.S. Deputy Secretary of State Christopher Landau wrote on X that American officials were in contact with Venezuelan authorities and working to deliver assistance to the South American nation.

VENEZUELAN OPPOSITION LEADER MARÍA MACHADO HAS URGENT MESSAGE FOR PRESIDENT-ELECT DONALD TRUMP

An ambulance drives through the street at Parque Central urban development complex in Caracas, Venezuela, after a magnitude 7.2 earthquake struck the region on June 24, 2026. (Jesus Vargas/Getty Images)

“The U.S. stands with the Venezuelan people in the aftermath of this evening’s devastating earthquakes,” he wrote. “We’re in touch with the authorities and mobilizing assistance.”

The State Department’s Bureau of Western Hemisphere Affairs said it was tracking developments following the powerful earthquakes.

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“The U.S. Government is closely monitoring the aftermath of a large earthquake in Venezuela,” the bureau said in a statement.

Emergency services work at the site of a collapsed building after an earthquake in Caracas, Venezuela, June 24, 2026. (REUTERS/Leonardo Fernandez Viloria)

“We extend our deepest condolences to the victims and are committed to supporting the people of Venezuela during this difficult time,” the statement continued.

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The bureau also urged U.S. citizens in Venezuela to enroll in the Smart Traveler Enrollment Program (STEP) and monitor embassy updates.

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The Associated Press and Reuters contributed to this report.

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Venezuela rocked by 7.5 and 7.2 earthquakes: What we know

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Venezuela rocked by 7.5 and 7.2 earthquakes: What we know

Venezuela has declared a state of emergency after two back-to-back earthquakes of magnitudes 7.2 and 7.5 struck, killing at least 32 people.

A major search and rescue operation is under way after Wednesday’s quakes caused widespread damage, especially in the capital, Caracas.

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Emergency crews are searching through the rubble of collapsed buildings while authorities closed the country’s main airport in Caracas, suspended classes and mobilised health workers to respond to the disaster.

The United States Geological Survey (USGS) warned that “high casualties and extensive damage are probable”, and US President Donald Trump said the quakes – some of the strongest in more than a century – caused “a devastating number of deaths”.

Here is what we know:

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What happened in Venezuela?

Venezuela was struck by the quakes about 6:04pm (22:04 GMT) on Wednesday as it was marking a national holiday commemorating the 1821 Battle of Carabobo.

The government declared a state of emergency as emergency crews responded to widespread damage. In a televised address, acting President Delcy Rodriguez urged doctors, nurses and other healthcare workers to report immediately to hospitals and clinics to help treat the injured.

Reporting from Bogota in neighbouring Colombia, Al Jazeera’s Teresa Bo said the worst damage was reported in Caracas, particularly in the Altamira district, where emergency crews rescued survivors from the rubble of a 22-storey building as relatives searched for missing loved ones. Authorities said the full extent of the damage is still being assessed.

What do we know about the victims and the death toll?

Rodriguez said at least 32 people have been killed and about 700 injured in the quakes, which were followed by nearly two dozen aftershocks.

Authorities have not yet released a breakdown of the victims by age, gender or location, and officials said the figures are expected to rise as search and rescue operations continue.

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The Altamira and El Paraiso neighbourhoods of Caracas are the worst affected. Damage has also been reported in La Guaira and other parts of central Venezuela.

The USGS warned that the death toll could rise significantly because many buildings in the affected region are made from unreinforced brick masonry and adobe, which are particularly vulnerable during strong earthquakes.

Its latest assessment gave a 39 percent probability that fatalities could reach between 1,000 and 10,000 and a 37 percent probability of 10,000 to 100,000 deaths. These are statistical estimates designed to support emergency planning and are not confirmed casualty figures.

Where were the epicentres?

The twin earthquakes originated in Yaracuy state, west of Caracas, according to the USGS. The first, a magnitude 7.2 quake, struck at a depth of 22km (14 miles), followed less than a minute later by an even larger magnitude 7.5 quake at a depth of about 10km (6 miles).

Although the epicentres were outside the capital, the shaking was felt across Caracas and much of central and western Venezuela, including the states of Carabobo, Miranda, La Guaira and Trujillo. Tremors were also reported in neighbouring Colombia and as far away as Brazil’s Amazon region, more than 1,700km (1,050 miles) from Caracas.

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What has been the impact?

The earthquakes caused widespread damage across Venezuela, collapsing buildings, damaging infrastructure and sending residents into the streets in panic.

The government closed Simon Bolivar International Airport in Caracas because of damage, suspended classes for several days and urged people to remain calm.

Search and rescue operations remained under way across the worst hit areas as authorities continued to assess the scale of the destruction. Experts also warned that strong aftershocks remain possible in the coming days.

How has the international community reacted?

Governments across the Americas expressed solidarity with Venezuela and began mobilising humanitarian assistance.

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United States: Trump said on his Truth Social platform that the US “stands ready, willing, and able to help! I have instructed all agencies of our government to get ready to move quickly. We will be there for our new and great friends.”

Earlier, officials from the Trump administration said Washington will send search and rescue teams, medical supplies and other humanitarian assistance.

El Salvador: President Nayib Bukele said the country is preparing to send 300 paramedics and other rescue workers along with 50 tonnes of medical supplies and emergency equipment.

Ecuador and Panama: Both governments announced humanitarian assistance with Ecuadoran President Daniel Noboa saying humanitarian concerns should take precedence despite political differences.

Mexico and Brazil: The two countries expressed solidarity with Venezuela and said they were closely monitoring the situation, adding that there were no immediate reports of their citizens being affected.

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