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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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Shell plans $1 billion wind farm sales in latest renewables exit, Bloomberg News reports

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Shell plans  billion wind farm sales in latest renewables exit, Bloomberg News reports
Shell is ‌preparing to launch a sale of its offshore wind farms that could fetch more ​than $1 billion, in the oil ​giant’s latest move away from renewable ⁠energy, Bloomberg News reported on Friday, ​citing people familiar with the matter.
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UNRWA fires 70 Gaza staffers amid allegations of Hamas ties, says terminations not admission of guilt

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UNRWA fires 70 Gaza staffers amid allegations of Hamas ties, says terminations not admission of guilt

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The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) fired 70 staff members working in Gaza after long-standing claims from Israeli authorities that the agency is a collaborator with the Hamas terrorist group.

“Today, the Commissioner-General ad interim of UNRWA, Christian Saunders, took the decision to terminate the employment of 70 UNRWA staff members in Gaza with immediate effect,” UNRWA wrote in a statement Friday.

UNRWA insisted its decision was not an admission of guilt but one taken “to mitigate safety and security risks for the refugees the Agency serves under its mandate and for UNRWA personnel and premises.”

The agency claims it has “repeatedly asked the Israeli authorities to provide information and evidence to substantiate allegations against individual UNRWA staff members in Gaza but has received no response to date.”

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ISRAEL SAYS UN MISLEADS WORLD AS GAZA AID STOLEN AND DIVERTED FROM CIVILIANS

A Palestinian boy walks near a UNRWA school sheltering displaced people that was hit in an overnight Israeli strike in Gaza City July 5, 2025. (Dawoud Abu Alkas/Reuters)

“The dismissal of the staff is not part of a disciplinary process and does not constitute in any way a validation of the claims made against them,” the UNRWA statement read.

The firings follow a United States Agency for International Development (USAID) investigation that referred more than 100 UNRWA staff members for suspension or dismissal.

USAID’s investigation, the results of which the agency published June 5, assessed that a number of UNRWA’s employees were deeply enmeshed in Hamas’ civil society and military operations.

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The investigation results included mention of “a deputy school principal serving as an al-Qassam deputy company commander in the Ain Gallout/5th infantry battalion, a deputy school principal serving as squad leader for the Khan Younis Brigade/2nd infantry battalion” and “a teacher with expertise as a sniper for Hamas.”

Al-Qassam Brigades, the military wing of Hamas, hands over Israeli hostages Omer Shem-Tov, Eliya Cohen and Omer Wenkert to the International Committee of the Red Cross in Nuseirat Refugee Camp, Gaza, on Feb. 22, 2025, as part of the seventh exchange under the Jan. 19 ceasefire deal. (Ashraf Amra/Anadolu)

The investigation also found numerous school teachers and principals it claimed to have participated directly in Hamas’ Oct. 7 terrorist attacks.

Israeli authorities have long charged UNRWA with being directly tied to Hamas.

“Since October 7, evidence of numerous incidents of Hamas exploiting UNRWA infrastructure and UNRWA employees being involved in terrorist activity has been exposed. Civilians in Gaza have even stated that UNRWA is Hamas,” the Israeli Defense Forces (IDF) wrote in a January web post.

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Israeli soldiers stand inside an evacuated United Nations Relief and Works Agency compound in Gaza City during a media tour organized by the Israeli army on Feb. 8, 2024. (Jack Guez/AFP)

Additionally, the IDF claimed, citing intelligence findings, that “among the 12,521 UNRWA employees in the Gaza Strip, at least 1,462 (12%) are members of Hamas or other designated terrorist organizations.”

UNRWA SCHOOLS ‘HIJACKED BY HAMAS,’ WATCHDOG REPORT WARNS

Israel’s Foreign Ministry pushed back on UNRWA’s defense framing and claims that Israel had not supplied evidence of employee-Hamas collaboration.

“UNRWA’s statement on the termination of 70 employees, while blaming the victim, Israel, and without even mentioning the word ‘Hamas,’ is a cynical cover-up,” the ministry wrote in a statement shared on X.

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UNRWA’s headquarters in Gaza City, Gaza, Feb. 21, 2024. (Dawoud Abo Alkas/Anadolu)

“The responsibility to purge terrorism lies solely with the UN, yet Hamas membership remains simply acceptable within UNRWA’s ranks. By harboring terrorists and letting its facilities serve as Hamas headquarters, UNRWA has become an arm of Hamas.”

UNRWA, for its part, denies being an active collaborator with Hamas but insists working with the group is an operational necessity for distributing aid in Gaza.

“UNRWA, similar to other United Nations entities, does not have police or intelligence capacities and must rely on the cooperation and assistance of Member States, including the State of Israel as the Occupying Power, to protect its operations and neutrality amid high risks in the Occupied Palestinian Territory,” the agency wrote in its statement Friday.

In April, UNRWA’s Office of Internal Oversight Services (OIOS) announced the results of an investigation into 19 employees accused of participating in Oct. 7. UNRWA terminated 12 of the employees in January. Of the remaining seven cases, UNRWA had dismissed one, citing a lack of evidence. The remaining six cases were still under investigation as of April, according to the agency.

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President Donald Trump’s administration weighed levying terrorism-related sanctions against UNRWA in December.

Secretary of State Marco Rubio has also referred to UNRWA as “a subsidiary of Hamas.”

Fox News Digital contacted UNRWA and a spokesperson for the Israeli ambassador to the United Nations but did not immediately receive a response.

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America250 vs Freedom 250: What to know about the US’s 250th anniversary

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America250 vs Freedom 250: What to know about the US’s 250th anniversary

Washington, DC – There are fisticuffs on the White House lawn, soon to be followed by a high-speed race through the National Mall. What is going on in Washington, DC?

The United States capital has been transformed in honour of the country’s 250th anniversary.

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Events all around the country are planned to mark two and a half centuries since the signing of the Declaration of Independence on July 4, 1776.

The nationwide bash has been dubbed the “semiquincentennial” — meaning half of 500 — and not just because Congress loves long words. The US has a history of throwing itself a party every 50 years.

But US President Donald Trump has promised a particularly noteworthy event this year, though the proceedings have been marred by a cavalcade of controversies.

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Here’s what to know:

What is the history of US semicentennial celebrations?

The first 50-year anniversary, in 1826, was a considerably more muted affair than the festivities to come.

At the time, some of the original signers of the Declaration of Independence were still alive, so the mayor of Washington, DC, invited them to attend the celebration in the capital.

Former Presidents John Adams and Thomas Jefferson both demurred, citing their failing health. They died within hours of each other on the day of the semicentennial.

Fifty years later, in 1876, the US would mark its 100th anniversary by hosting its first world’s fair, an exhibition featuring displays of art, culture and technology from around the globe.

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The fair was held in Philadelphia, where the Declaration of Independence was signed, and the original document was put on temporary display in the city.

Another world’s fair arrived in Philadelphia for the country’s 150th anniversary in 1926, but it was not nearly as successful. Variety magazine called it “America’s greatest flop”.

Meanwhile, the modern template for having a yearlong, cross-country celebration was set on the 200th anniversary in 1976.

A train-mounted museum of documents and historical artefacts toured the lower 48 states for 21 months. Volunteers, meanwhile, used covered wagons to travel the width of the country.

The celebrations were generally received positively, although the sale of souvenirs — from umbrella hats to mugs — earned it the pejorative “the buy-centennial”.

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Anthony Geary of Chicago, Illinois, attends the UFC Freedom 250 Fan Fest on June 13 [Matt McClain/Getty Images via AFP]

What is happening this year?

While the US capital may be the centre of this year’s celebration, there will be a multitude of events across the country. They include:

  • UFC Freedom 250, a mixed martial arts fight on the White House lawn on June 14
  • the Great American State Fair, featuring booths representing all 50 states, presented on the National Mall from June 25 to July 10
  • the Freedom 250 Grand Prix, which will see IndyCars race around capital monuments from August 22 to 23
  • the World Cup Fan Zone in Washington, DC, from June 11 to July 16
  • a fireworks display at Mount Rushmore in South Dakota on July 3
  • concerts and exhibitions in cities like New York, Los Angeles and Boston

Mobile museums, known as Freedom Trucks, will also be travelling around the country.

Another initiative is America’s Block Party, an effort to encourage communities to engage in charitable works and host their own semiquincentennial parties.

So far, however, there appears to be no government programme in the works to tackle the holiday’s most vexing and far-reaching problem: how to make the traditional July 4 potato salad less bland.

What is the controversy over the UFC fight?

One of the most scrutinised events in the semiquincentennial calendar is UFC Freedom 250, which will take place on the White House lawn on Sunday.

The timing of the event is one of the details that have wiggled eyebrows. Sunday is a holiday known as Flag Day, but it also marks Trump’s 80th birthday.

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The event is also being staged by one of Trump’s most prominent political donors: Dana White, the CEO of the Ultimate Fighting Championship (UFC).

White has described Sunday’s event as designed “to tell the story of America”. There will be two title fights: a lightweight bout between Ilia Topuria and Justin Gaethje and a heavyweight interim title fight between Alex Pereira and Ciryl Gane, as well as several smaller “undercard” matches.

Despite bearing the title “Freedom 250”, the UFC event is not being organised by the White House task force of the same name.

A Freedom 250 spokesperson clarified that the presidential group “has not been responsible for the operations, logistics or funding of the UFC White House event”.

That point has been central to ongoing debates about whether the fight represents a conflict of interest for Trump, who holds stock in UFC’s parent company.

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On Friday, a federal judge rejected an emergency petition to stop the fight, on the premise that Trump was using government property to promote his private business interests.

White has told the ESPN sport broadcaster that his organisation was paying for the event.

Motorsports athletes and stunt performers line up alongside members of the military after doing a motorcycle jump ahead of the UFC Freedom 250 fights on the South Lawn of the White House, Saturday, June 13, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
Stunt performers line up alongside members of the military after doing a motorcycle jump outside the White House on June 13 [Alex Brandon/Pool via AP Photo]

What is the difference between Freedom 250 and America250?

There are two government-backed nonprofits organising festivities for the anniversary: Freedom 250 and America250.

The former is part of a White House task force, and the latter is a bipartisan organisation created in 2016 by the US Congress.

America250 was set up in 2016 to “plan and orchestrate the 250th anniversary of the signing of the Declaration of Independence”, and it is led by private citizens.

The Freedom 250, meanwhile, is a public-private partnership within the National Parks Foundation, the charitable arm of the National Park Service, a federal agency.

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It is ostensibly the public-facing side of the White House Task Force 250, which Trump established in 2025 “to plan, organize, and execute” the semiquincentennial. Trump is also the task force’s chair.

What is each side organising?

The two groups’ event-planning philosophies do not overlap much.

Freedom 250 focuses mostly on big, marquee functions, such as the IndyCar race, the World Cup Fan Zone and Sail4th 250, which will see an armada of tall ships and military vessels travel to US cities along the Atlantic coast.

The America250 organisation has been more focused on community participation through initiatives such as America’s Block Party and its Giving 4th programme, which aims to boost charitable giving on the July 4 holiday.

So Freedom 250 and America250 are not stepping on each other’s toes?

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Not really, and they’re ostensibly playing nice, with America250’s chairwoman, Rosie Rios, lauding Freedom 250 as a way to advance presidential initiatives to “give the American people more ways they can celebrate America’s 250th birthday”.

But this is Washington, DC, so some elbows are being thrown.

The creation of White House Task Force 250 was widely viewed as a manoeuvre by Trump to seize control of the celebrations, outside of congressional oversight.

The launch of Freedom 250 came just two months after the appointee Trump picked to lead America250, Ari Abergel, was fired for “serious and repeated breaches” of his authority. Abergel has denied overstepping his mandate.

Motorsports athletes and stunt performers do a motorcycle jump ahead of the UFC Freedom 250 fights on the South Lawn of the White House, Saturday, June 13, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
Soldiers stand guard beside military vehicles to celebrate the 250th anniversary of the US [Alex Brandon/Pool via AP Photo]

Who is financing the two groups?

Neither the congressionally created America250 nor the White House’s Freedom 250 are required to disclose its private donors.

But critics point out there are fewer guardrails with Freedom 250 than with America250.

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America250’s parent commission is required to submit an annual report to Congress detailing funding and spending.

Freedom 250, meanwhile, lists some “sponsors” and “partners” online, but it is not subject to any independent oversight. That lack of transparency has been a recurring complaint.

In February, The New York Times reported that Freedom 250 was offering access to a reception hosted by Trump in exchange for large donations.

But the newspaper USA Today also pointed out that America250 offered packages that included invitations to events where government officials would be in attendance.

Both groups have been given taxpayer dollars. Congress appropriated $150m to the Department of the Interior for the celebrations, but it did not specify how the money was to be split between the groups.

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The Interior Department allocated $100m to Freedom 250 (via the National Park Foundation) and $50m to America250, raising concerns that Trump was steering public funds away from the congressionally mandated organisation.

Critics have also questioned whether the Freedom 250 events are designed to celebrate US independence or promote Trump and his priorities.

Nearly $10m, for instance, went to supporting the Freedom Trucks, whose exhibits have been criticised for offering a whitewashed portrait of US history.

Has there been a backlash to Freedom 250?

The perception that Freedom 250 is a Trump organisation, rather than a nonpartisan one, has created snags for one of its tentpole events: the Great American State Fair.

Almost as soon as its musical lineup was announced in May, artists started dropping out. Several performers said they felt misled by the organisers’ claims that the event is nonpartisan.

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Several state governments have also declined to take part, including Connecticut, Massachusetts, North Carolina, Oregon, Rhode Island, Vermont and Washington state.

A spokesperson for Oregon said in part that the fair “is shaping up to be a more partisan affair than originally presented”.

But Freedom 250 has maintained that the fair will continue with all 50 states represented on the National Mall.

Trump, meanwhile, cancelled the concert, replacing it with a “Rally to end all Rallies”, at which he will give a speech. Country musician Lee Greenwood and tenor Christopher Macchio, as well as several military bands, will also be included in the lineup.

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