BRUSSELS — The European Parliament’s top trade lawmakers failed on Wednesday to
reach a common position on the EU-U.S. trade deal, in a move that risks fueling
Washington’s impatience against the EU’s slow pace in finally implementing its
side of a bargain struck last summer.
Negotiations will continue until next week, two people who attended a meeting of
the lawmakers told POLITICO. One said that committee vote was penciled in for
Feb. 24 and a final plenary vote for March. Both were granted anonymity to
discuss the closed-door talks.
The meeting failed to clear remaining hurdles regarding the Parliament’s
position on the removal of tariffs on U.S. industrial goods and lobsters — a
precondition for Washington to reduce its own tariffs on European cars.
Lawmakers from the international trade committee disagreed on the length of a
sunset clause which would limit the proposals’ application to 18 to 36 months,
as well as whether the EU should withdraw any tariff concessions until a
solution is found between Brussels and Washington on the 50 percent tariff the
Trump administration has put on steel derivatives.
With the EU still processing the shock of Trump’s threats against the
territorial sovereignty of Greenland and the Kingdom of Denmark, the liberal
Renew group and the Socialists & Democrats are pushing to Trump-proof the deal
by inserting suspension clauses into enabling legislation in case the U.S.
president turns hostile again.
The center-right European People’s Party has pushed to sign off the deal
following calls from EU leaders to unfreeze the implementation of the deal.
Failure to reach an agreement on Wednesday throws into disarray the timeline for
parliamentary approval, and further delays the start of negotiations with EU
capitals and the European Commission.
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Im März stehen die ersten zwei von insgesamt fünf Landtagswahlen an.
Baden-Württemberg und Rheinland-Pfalz sind der Auftakt. In der CDU derweil sind
Vorschläge zur Abschaffung der”Lifestyle-Teilzeit” und der Streichung von
Kassenleistung für den Zahnarztbesuch derweil Anlass für Unruhe. Die einen
äußern sich, die anderen sind verärgert und kassieren die Ideen so schnell ein,
wie sie gemacht werden.
Eine Partei sucht öffentlich ihre Linie und das macht die Wahlkämpfer
unglücklich. Rasmus Buchsteiner berichtet von der Flatterstimmung und dem
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begrenzen. Außerdem bespricht er mit Gordon, wie die ausbleibenden Fortschritte
bei den versprochenen Reformen die Situation mit ausgelöst haben.
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darüber, wie sie den Moment für sich nutzen und für ihre Partei nutzen will.
Außerdem:
Der Kanzler bricht heute zu seiner ersten offiziellen Reise in die Golfregion
auf. Tom Schmidtgen vom Pro-Newsletter ‘Industrie und Handel am Morgen’ über den
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guten Lage, sondern auch seiner wirtschaftlichen Stärke bewusst ist.
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The Trump administration wants to work with traditional allies to secure new
supplies of critical minerals. But months of aggression toward allies,
culminating with since-aborted threats to seize Greenland, have left many cool
to the overtures.
While the State Department has drawn a lengthy list of participating countries
for its first Critical Minerals Ministerial scheduled for Wednesday, a number of
those attending are hesitant to commit to partnering with the U.S. in creating a
supply chain that bypasses China’s current chokehold on those materials,
according to five Washington-based diplomats of countries invited to or
attending the event.
State Department cables obtained by POLITICO also show wariness among some
countries about signing onto a framework agreement pledging joint cooperation in
sourcing and processing critical minerals.
Representatives from more than 50 countries are expected to attend the meeting,
according to the State Department — all gathered to discuss the creation of tech
supply chains that can rival Beijing’s.
But the meeting comes just two weeks since President Donald Trump took to the
stage at Davos to call on fellow NATO member Denmark to allow a U.S. takeover of
Greenland, and that isn’t sitting well.
“We all need access to critical minerals, but the furor over Greenland is going
to be the elephant in the room,” said a European diplomat. In the immediate
run-up to the event there’s “not a great deal of interest from the European
side,” the person added.
The individual and others were granted anonymity to discuss sensitive diplomatic
relationships.
Their concerns underscore how international dismay at the Trump administration’s
foreign policy and trade actions may kneecap its other global priorities. The
Trump administration had had some success over the past two months rallying
countries to support U.S. efforts to create secure supply chains for critical
minerals, including a major multilateral agreement called the Pax Silica
Declaration. Now those gains could be at risk.
Secretary of State Marco Rubio wants foreign countries to partner with the U.S.
in creating a supply chain for the 60 minerals (including rare earths) that the
U.S. Geological Survey deems “vital to the U.S. economy and national security
that face potential risks from disrupted supply chains.” They include antimony,
used to produce munitions; samarium, which goes into aircraft engines; and
germanium, which is essential to fiber-optics. The administration also launched
a $12 billion joint public-private sector “strategic critical minerals
stockpile” for U.S. manufacturers, a White House official said Monday.
Trump has backed away from his threats of possibly deploying the U.S. military
to seize Greenland from Denmark. But at Davos he demanded “immediate
negotiations” with Copenhagen to transfer Greenland’s sovereignty to the U.S.
That makes some EU officials leery of administration initiatives that require
cooperation and trust.
“We are all very wary,” said a second European diplomat. Rubio’s critical
minerals framework “will not be an easy sell until there is final clarity on
Greenland.”
Trump compounded the damage to relations with NATO countries on Jan. 22 when he
accused member country troops that deployed to support U.S. forces in
Afghanistan from 2001 to 2021 of having shirked combat duty.
“The White House really messed up with Greenland and Davos,” a third European
diplomat said. “They may have underestimated how much that would have an
impact.”
The Trump administration needs the critical minerals deals to go through. The
U.S. has been scrambling to find alternative supply lines for a group of
minerals called rare earths since Beijing temporarily cut the U.S. off from its
supply last year. China — which has a near-monopoly on rare earths — relented in
the trade truce that Trump brokered with China’s leader Xi Jinping in South
Korea in October.
The administration is betting that foreign government officials that attend
Wednesday’s event also want alternative sources to those materials.
“The United States and the countries attending recognize that reliable supply
chains are indispensable to our mutual economic and national security and that
we must work together to address these issues in this vital sector,” the State
Department statement said in a statement.
The administration has been expressing confidence that it will secure critical
minerals partnerships with the countries attending the ministerial, despite
their concerns over Trump’s bellicose policy.
“There is a commonality here around countering China,” Ruth Perry, the State
Department’s acting principal deputy assistant secretary for ocean, fisheries
and polar affairs, said at an industry event on offshore critical minerals in
Washington last week. “Many of these countries understand the urgency.”
Speaking at a White House event Monday, Interior Secretary Doug Burgum indicated
that 11 nations would sign on to a critical minerals framework with the United
States this week and another 20 are considering doing so.
Greenland has rich deposits of rare earths and other minerals. But Denmark isn’t
sending any representatives to the ministerial, according to the person familiar
with the event’s planning. Trump said last month that a framework agreement he
struck with NATO over Greenland’s future included U.S. access to the island’s
minerals. Greenland’s harsh climate and lack of infrastructure in its interior
makes the extraction of those materials highly challenging.
Concern about the longer term economic and geostrategic risks of turning away
from Washington in favor of closer ties with Beijing — despite the Trump
administration’s unpredictability — may work in Rubio’s favor on Wednesday.
“We still want to work on issues where our viewpoints align,” an Asian diplomat
said. “Critical minerals, energy and defense are some areas where there is hope
for positive movement.”
State Department cables obtained by POLITICO show the administration is leaning
on ministerial participants to sign on to a nonbinding framework agreement to
ensure U.S. access to critical minerals.
The framework establishes standards for government and private investment in
areas including mining, processing and recycling, along with price guarantees to
protect producers from competitors’ unfair trade policies. The basic template of
the agreement being shared with other countries mirrors language in frameworks
sealed with Australia and Japan and memorandums of understanding inked with
Thailand and Malaysia last year.
Enthusiasm for the framework varies. The Philippine and Polish governments have
both agreed to the framework text, according to cables from Manila on Jan. 22
and Warsaw on Jan. 26. Romania is interested but “proposed edits to the draft
MOU framework,” a cable dated Jan. 16 said. As of Jan. 22 India was
noncommittal, telling U.S. diplomats that New Delhi “could be interested in
exploring a memorandum of understanding in the future.”
European Union members Finland and Germany both expressed reluctance to sign on
without clarity on how the framework aligns with wider EU trade policies. A
cable dated Jan. 15 said Finland “prefers to observe progress in the EU-U.S.
discussions before engaging in substantive bilateral critical mineral framework
negotiations.” Berlin also has concerns that the initiative may reap “potential
retaliation from China,” according to a cable dated Jan. 16.
Trump’s threats over the past two weeks to impose 100 percent tariffs on Canada
for cutting a trade deal with China and 25 percent tariffs on South Korea for
allegedly slow-walking legislative approval of its U.S. trade agreement are also
denting enthusiasm for the U.S. critical minerals initiative.
Those levies “have introduced some uncertainty, which naturally leads countries
to proceed pragmatically and keep their options open,” a second Asian diplomat
said.
There are also doubts whether Trump will give the initiative the long-term
backing it will require for success.
“There’s a sense that this could end up being a TACO too,” a Latin American
diplomat said, using shorthand for Trump’s tendency to make big threats or
announcements that ultimately fizzle.
Analysts, too, argue it’s unlikely the administration will be able to secure any
deals amid the fallout from Davos and Trump’s tariff barrages.
“We’re very skeptical on the interest and aptitude and trust in trade
counterparties right now,” said John Miller, an energy analyst at TD Cowen who
tracks critical minerals. “A lot of trading partners are very much in a
wait-and-see perspective at this point saying, ‘Where’s Trump really going to go
with this?’”
And more unpredictability or hostility by the Trump administration toward
longtime allies could push them to pursue critical mineral sourcing arrangements
that exclude Washington.
“The alternative is that these other countries will go the Mark Carney route of
the middle powers, cooperating among themselves quietly, not necessarily going
out there and saying, ‘Hey, we’re cutting out the U.S.,’ but that these things
just start to crop up,” said Jonathan Czin, a former China analyst at the CIA
now at the Brookings Institution. “Which will make it more challenging and allow
Beijing to play divide and conquer over the long term.”
Felicia Schwartz contributed to this report.
BRUSSELS — European Commission President Ursula von der Leyen is planning to
travel to Australia this month to clinch a security and trade deal, according to
a person familiar with the talks.
Her trip will follow a meeting next week between European Trade Commissioner
Maroš Šefčovič and his Australian counterpart Don Farrell in Brussels, a second
person said. Both people were granted anonymity because the schedules are still
tentative.
The EU and Canberra are moving to revive trade negotiations that collapsed at
the end of 2023 amid disagreements over quotas of beef and lamb.
The quotas are still being negotiated between Canberra and Brussels, the first
person familiar with the talks said.
Von der Leyen will take the 20-hour-plus flight to Australia directly after she
attends the Munich Security Conference, which takes place in the German city on
Feb. 13-15, according to Australian digital newspaper The Nightly, which broke
the news of the Commission chief’s four-day trip.
EU countries last December allowed the Commission to negotiate a defense deal
with Australia. Sealing such a deal would come on the heels of security and
defense partnerships signed with the U.K., Canada and most recently India.
An agreement with Australia would represent a win for the EU, as it would open
access to the country’s vast reserves of strategic minerals. Australia is the
world’s largest producer of lithium and also holds the world’s second-largest
copper reserves.
Coming after the EU’s fraught Mercosur deal with South American countries —
criticized by farmers, France and skeptical lawmakers — the pact with Canberra
is expected to also trigger pushback due to its significant agricultural
component.
BERLIN — Friedrich Merz embarks on his first trip to the Persian Gulf region as
chancellor on Wednesday in search of new energy and business deals he sees as
critical to reducing Germany’s dependence on the U.S. and China.
The three-day trip with stops in Saudi Arabia, Qatar and the United Arab
Emirates illustrates Merz’s approach to what he calls a dangerous new epoch of
“great power politics” — one in which the U.S. under President Donald Trump is
no longer a reliable partner. European countries must urgently embrace their own
brand of hard power by forging new global trade alliances, including in the
Middle East, or risk becoming subject to the coercion of greater powers, Merz
argues.
Accompanying Merz on the trip is a delegation of business executives looking to
cut new deals on everything from energy to defense. But one of the chancellor’s
immediate goals is to reduce his country’s growing dependence on U.S. liquefied
natural gas, or LNG, which has replaced much of the Russian gas that formerly
flowed to Germany through the Nord Stream pipelines.
Increasingly, German leaders across the political spectrum believe they’ve
replaced their country’s unhealthy dependence on Russian energy with an
increasingly precarious dependence on the U.S.
Early this week, Merz’s economy minister, Katherina Reiche, traveled to Saudi
Arabia ahead of the chancellor to sign a memorandum to deepen the energy ties
between both countries, including a planned hydrogen energy deal.
“When partnerships that we have relied on for decades start to become a little
fragile, we have to look for new partners,” Reiche said in Riyadh.
‘EXCESSIVE DEPENDENCE’
Last year, 96 percent of German LNG imports came from the U.S, according to the
federal government. While that amount makes up only about one-tenth of the
country’s total natural gas imports, the U.S. share is set to rise sharply over
the next years, in part because the EU agreed to purchase $750 billion worth of
energy from the U.S. by the end of 2028 as part of its trade agreement with the
Trump administration.
The EU broadly is even more dependent on U.S. LNG, which accounted for more than
a quarter of the bloc’s natural gas imports in 2025. This share is expected to
rise to 40 percent by 2030.
German politicians across the political spectrum are increasingly pushing for
Merz’s government to find new alternatives.
“After Russia’s war of aggression, we have learned the hard way that excessive
dependence on individual countries can have serious consequences for our
country,” said Sebastian Roloff, a lawmaker focusing on energy for the
center-left Social Democrats, who rule in a coalition with Merz’s conservatives.
Roloff said Trump’s recent threat to take over Greenland and the new U.S.
national security strategy underscored the need to “avoid creating excessive
dependence again” and diversify sources of energy supply.
The Trump administration’s national security strategy vows to use “American
dominance” in oil, gas, coal and nuclear energy to “project power” globally,
raising fears in Europe that the U.S. will use energy exports to gain leverage
over the EU.
Last year, 96 percent of German LNG imports came from the U.S, according to the
federal government. | Pool photo by Lars-Josef Klemmer/EPA
That’s why Merz and his delegation are also seeking closer ties to Qatar, one of
the world’s largest producers and exporters of natural gas as well as the United
Arab Emirates, another major LNG producer.
Last week, the EU’s energy chief, Dan Jørgensen, said the bloc would step up
efforts to to reduce it’s dependence on U.S. LNG., including by dealing more
with Qatar. One EU diplomat criticised Merz for seeking such cooperation on a
national level. Germany is going “all in on gas power, of course, but I can’t
see why Merz would be running errands on the EU’s behalf,” said the diplomat,
speaking on condition of anonymity.
‘AUTHORITARIAN STRONGMEN’
Merz will also be looking to attract more foreign investment and deepen trade
ties with the Gulf states as part of a wider strategy of forging news alliances
with “middle powers” globally and reduce dependence on U.S. and Chinese markets.
The EU initiated trade talks with the United Arab Emirates last spring.
Gulf states like Saudi Arabia also have their own concerns about dependencies on
the U.S., particularly in the area of arms purchases. Germany’s growing defense
industry is increasingly seen as promising partner, particularly following
Berlin’s loosening of arms export restrictions.
“For our partners in the region, cooperation in the defense industry will
certainly also be an important topic,” a senior government official with
knowledge of the trip said.
But critics point out that leaders of autocracies criticized for human rights
abuses don’t make for viable partners on energy, trade and defense.
Last week, the EU’s energy chief, Dan Jørgensen, said the bloc would step up
efforts to to reduce it’s dependence on U.S. LNG., including by dealing more
with Qatar. | Jose Sena Goulao/EPA
“It’s not an ideal solution,” said Loyle Campbell, an expert on climate and
energy policy for the German Council on Foreign Relations. “Rather than having
high dependence on American LNG, you’d go shake hands with semi-dictators or
authoritarian strongmen to try and reduce your risk to the bigger elephant in
the room.”
Merz, however, may not see a moral contradiction. Europe can’t maintain its
strength and values in the new era of great powers, he argues, without a heavy
dollop of Realpolitik.
“We will only be able to implement our ideas in the world, at least in part, if
we ourselves learn to speak the language of power politics,” Merz recently said.
Ben Munster contributed to this report.
BRUSSELS — The EU and U.K. must overcome historic gripes and “reset” their
relationship to be able to work together in an increasingly uncertain world, the
bloc’s top parliamentarian said.
European Parliament President Roberta Metsola used an address to the Spanish
senate on Tuesday to call for closer ties with the U.K. as London steps up
efforts to secure smoother access to European markets and funding projects,
after the country voted to leave the bloc in 2016.
“Ten years on from Brexit … and in a world that has changed so profoundly,
Europe and the U.K. need a new way of working together on trade, customs,
research, mobility and on security and defense,” Metsola said. “Today it is time
to exorcize the ghosts of the past.”
Metsola called for a “reset” in the partnership between Britain and the EU as
part of a policy of “realistic pragmatism anchored in values that will see all
of us move forward together.”
Her speech comes after British Prime Minister Keir Starmer said he intended to
try and ensure his country’s defense industries can benefit from the EU’s
flagship SAFE scheme — a €150 billion funding program designed to boost
procurement of military hardware.
That push has been far from smooth, with a meeting of EU governments on Monday
night failing to sign off U.K. access to SAFE, despite France — which has
consistently opposed non-EU countries taking part — supporting the British
inclusion.
Starmer has also signaled in recent days that he is seeking closer integration
with the EU’s single market. Brussels has so far been reluctant to reopen the
terms of the U.K.’s relations with the bloc just six years after it exited.
While those decisions lie with the remaining 27 EU member countries, rather than
the Parliament, Metsola’s intervention marks a shift in tone that could bolster
the British case for closer relations. In the context of increasingly tense
relations with the U.S., capitals are depending on cooperation with British
intelligence and military capabilities and in key industries.
Europe must take “the next steps towards a stronger European defense, boosting
our capabilities and cooperation, and working closely with our NATO allies so
that Europe can better protect its people,” Metsola said.
BRUSSELS — The EU’s most senior trade official said he had no contact with
convicted sex offender Jeffrey Epstein.
Maroš Šefčovič issued a denial through a European Commission spokesperson on
Tuesday, insisting he “never had any direct or indirect contact, communication
or meeting with Jeffrey Epstein.”
POLITICO searched the tranche of documents relating to Epstein released on
Friday by the U.S. Department of Justice and found three incidental references
to Šefčovič but no evidence of any contact with Epstein.
“I did not authorize, request or agree to anyone mentioning my name to Jeffrey
Epstein,” Šefčovič said via Commission spokesperson Balazs Ujvari. “Any such
mention was made without my knowledge … I’m appalled that my name was used in
that exchange without my knowledge or consent, and I categorically reject any
implication of my involvement for that.”
The denial comes after fellow Slovak politician Miroslav Lajčák resigned from
the country’s government on Saturday after exchanges between him and Epstein
were published.
“If Miroslav Lajčák mentioned my name, it was for his own purposes with which I
had nothing to do,” Šefčovič said via Ujvari.
Šefčovič, who became a European commissioner in 2009, has overseen the bloc’s
trade deal with U.S. President Donald Trump.
BRUSSELS ― European governments and corporations are racing to reduce their
exposure to U.S. technology, military hardware and energy resources as
transatlantic relations sour.
For decades, the EU relied on NATO guarantees to ensure security in the bloc,
and on American technology to power its business. Donald Trump’s threats to take
over Greenland, and aggressive comments about Europe by members of his
administration, have given fresh impetus to European leaders’ call for
“independence.”
“If we want to be taken seriously again, we will have to learn the language of
power politics,” German Chancellor Friedrich Merz said last week.
From orders banning civil servants from using U.S.-based videoconferencing tools
to trade deals with countries like India to a push to diversify Europe’s energy
suppliers, efforts to minimize European dependence on the U.S. are gathering
pace. EU leaders warn that transatlantic relations are unlikely to return to the
pre-Trump status quo.
EU officials stress that such measures amount to “de-risking” Europe’s
relationship with the U.S., rather than “decoupling” — a term that implies a
clean break in economic and strategic ties. Until recently, both expressions
were mainly applied to European efforts to reduce dependence on China. Now, they
are coming up in relation to the U.S., Europe’s main trade partner and security
benefactor.
The decoupling drive is in its infancy. The U.S. remains by far the largest
trading partner for Europe, and it will take years for the bloc to wean itself
off American tech and military support, according to Jean-Luc Demarty, who was
in charge of the European Commission’s trade department under the body’s former
president, Jean-Claude Juncker.
Donald Trump’s threats to take over Greenland, and aggressive comments about
Europe by members of his administration, have given fresh impetus to European
leaders’ call for “independence.” | Kristian Tuxen Ladegaard Berg/NurPhoto via
Getty Images
“In terms of trade, they [the U.S.] represent a significant share of our
exports,” said Demarty. “So it’s a lot, but it’s not a matter of life and
death.”
The push to diversify away from the U.S. has seen Brussels strike trade deals
with the Mercosur bloc of Latin American countries, India and Indonesia in
recent months. The Commission also revamped its deal with Mexico, and revived
stalled negotiations with Australia.
DEFENDING EUROPE: FROM NATO TO THE EU
Since the continent emerged from the ashes of World War II, Europe has relied
for its security on NATO — which the U.S. contributes the bulk of funding to. At
a weekend retreat in Zagreb, Croatia, conservative European leaders including
Merz said it was time for the bloc to beef up its homegrown mutual-defense
clause, which binds EU countries to an agreement to defend any EU country that
comes under attack.
While it has existed since 2009, the EU’s Article 42.7 mutual defense clause was
rarely seen as necessary because NATO’s Article 5 served a similar purpose.
But Europe’s governments have started to doubt whether the U.S. really would
come to Europe’s rescue.
In Zagreb, the leaders embraced the EU’s new role as a security actor, tasking
two leaders, as yet unnamed, with rapidly cooking up plans to turn the EU clause
from words to an ironclad security guarantee.
“For decades, some countries said ‘We have NATO, why should we have parallel
structures?’” said a senior EU diplomat who was granted anonymity to talk about
confidential summit preparations. After Trump’s Greenland saber-rattling, “we
are faced with the necessity, we have to set up military command structures
within the EU.”
At a weekend retreat in Zagreb, Croatia, conservative European leaders including
Merz said it was time for the bloc to beef up its homegrown mutual-defense
clause, which binds EU countries to an agreement to defend any EU country that
comes under attack. | Marko Perkov/AFP via Getty Images
In comments to EU lawmakers last week, NATO Secretary-General Mark Rutte said
that anyone who believes Europe can defend itself without the U.S. should “keep
on dreaming.”
Europe remains heavily reliant on U.S. military capabilities, most notably in
its support for Ukraine’s fight against Russia. But some Europeans are now
openly talking about the price of reducing exposure to the U.S. — and saying
it’s manageable.
TECHNOLOGY: TEAMS OUT, VISIO IN
The mood shift is clearest when it comes to technology, where European reliance
on platforms such as X, Meta and Google has long troubled EU voters, as
evidenced by broad support for the bloc’s tech legislation.
French President Emmanuel Macron’s government is planning to ban officials from
using U.S.-based videoconferencing tools. Other countries like Germany are
contemplating similar moves.
“It’s very clear that Europe is having our independence moment,” EU tech czar
Henna Virkkunen told a POLITICO conference last week. “During the last year,
everybody has really realized how important it is that we are not dependent on
one country or one company when it comes to some very critical technologies.”
France is moving to ban public officials from using American platforms including
Google Meet, Zoom and Teams, a government spokesperson told POLITICO. Officials
will soon make the switch to Visio, a videoconferencing tool that runs on
infrastructure provided by French firm Outscale.
In the European Parliament, lawmakers are urging its president, Roberta Metsola,
to ditch U.S. software and hardware, as well as a U.S.-based travel booking
tool.
In Germany, politicians want a potential German or European substitute for
software made by U.S. data analysis firm Palantir. “Such dependencies on key
technologies are naturally a major problem,” Sebastian Fiedler, an SPD lawmaker
and expert on policing, told POLITICO.
Even in the Netherlands, among Europe’s more pro-American countries, there are
growing calls from lawmakers and voters to ring-fence sensitive technologies
from U.S. influence. Dutch lawmakers are reviewing a petition signed by 140,000
people calling on the state to block the acquisition of a state identity
verification tool by a U.S. company.
At the World Economic Forum in Davos, Switzerland, in late January, German
entrepreneur Anna Zeiter announced the launch of a Europe-based social media
platform called W that could rival Elon Musk’s X, which has faced fines for
breaching the EU’s content moderation rules. W plans to host its data on
“European servers owned by European companies” and limits its investors to
Europeans, Zeiter told Euronews.
So far, Brussels has yet to codify any such moves into law. But upcoming
legislation on cloud and AI services are expected to send signals about the need
to Europeanize the bloc’s tech offerings.
ENERGY: TIME TO DIVERSIFY
On energy, the same trend is apparent.
The United States provides more than a quarter of the EU’s gas, a share set to
rise further as a full ban on Russian imports takes effect.
But EU officials warn about the risk of increasing Europe’s dependency on the
U.S. in yet another area. Trump’s claims on Greenland were a “clear wake-up
call” for the EU, showing that energy can no longer be seen in isolation from
geopolitical trends, EU Energy Commissioner Dan Jørgensen said last Wednesday.
The Greenland crisis reinforced concerns that the bloc risks “replacing one
dependency with another,” said Jørgensen, adding that as a result, Brussels is
stepping up efforts to diversify, deepening talks with alternative suppliers
including Canada, Qatar and North African countries such as Algeria.
FINANCE: MOVING TO EUROPEAN PAYMENTS
Payment systems are also drawing scrutiny, with lawmakers warning about
over-reliance on U.S. payment systems such as Mastercard and Visa.
The digital euro, a digital version of cash that the European Central Bank is
preparing to issue in 2029, aims to cut these dependencies and provide a
pan-European sovereign means of payment. “With the digital euro, Europeans would
remain in control of their money, their choices and their future,” ECB President
Christine Lagarde said last year.
In Germany, some politicians are sounding the alarm about 1,236 tons of gold
reserves that Germany keeps in the Federal Reserve Bank of New York.
“In a time of growing global uncertainty and under President Trump’s
unpredictable U.S. policy, it’s no longer acceptable” to have that much in gold
reserves in the U.S., Marie-Agnes Strack-Zimmermann, the German politician from
the liberal Free Democratic Party, who chairs the Parliament’s defense
committee, told Der Spiegel.
Several European countries are pushing the EU to privilege European
manufacturers when it comes to spending EU public money via “Buy European”
clauses.
Until a few years ago, countries like Poland, the Netherlands or the Baltic
states would never have agreed on such “Buy European” clauses. But even those
countries are now backing calls to prioritize purchases from EU-based companies.
MILITARY INVESTMENT: BOOSTING OWN CAPACITY
A €150 billion EU program to help countries boost their defense investments,
finalized in May of last year, states that no more than 35 percent of the
components in a given purchase, by cost, should originate from outside the EU
and partner states like Norway and Ukraine. The U.S. is not considered a partner
country under the scheme.
For now, European countries rely heavily on the U.S. for military enablers
including surveillance and reconnaissance, intelligence, strategic lift, missile
defense and space-based assets. But the powerful conservative umbrella group,
the European People Party, says these are precisely the areas where Europe needs
to ramp up its own capacities.
When EU leaders from the EPP agreed on their 2026 roadmap in Zagreb, they stated
that the “Buy European” principle should apply to an upcoming Commission
proposal on joint procurement.
The title of the EPP’s 2026 roadmap? “Time for independence.”
Camille Gijs, Jacopo Barigazzi, Mathieu Pollet, Giovanna Faggionato, Eliza
Gkritsi, Elena Giordano, Ben Munster and Sam Clark contributed reporting from
Brussels. James Angelos contributed reporting from Berlin.
BRUSSELS — Hungary says it has asked the European Union’s top court to annul a
new law banning the import of Russian gas into the bloc, filing the challenge
within hours of the new law taking effect.
“Today, we took legal action before the European Court of Justice to challenge
the REPowerEU regulation banning the import of Russian energy and request its
annulment,” Hungary’s Foreign Affairs and Trade Minister Péter Szijjártó said on
X.
Member countries agreed to the outright ban on Russian gas late last year in
response to the country’s ongoing invasion of Ukraine. The law passed despite
Hungary’s opposition.
Szijjártó said Hungary’s case was based on three arguments. “First, energy
imports can only be banned through sanctions, which require unanimity. This
regulation was adopted under the guise of a trade policy measure,” he said.
“Second, the EU Treaties clearly state that each member state decides its choice
of energy sources and suppliers.
“Third, the principle of energy solidarity requires the security of energy
supply for all member states. This decision clearly violates that principle,
certainly in the case of Hungary.”
Slovakia has also said it will challenge the law in court.
BRUSSELS — EU countries shouldn’t be afraid of integrating at different speeds
if that’s what it takes to gain crucial leverage on the world stage, Mario
Draghi said Monday.
“We must take the steps that are currently possible, with the partners who are
actually willing, in the domains where progress can currently be made,” said the
former European Central Bank president and ex-prime minister of Italy during a
ceremony at the University of Leuven in Belgium, where he was awarded an
honorary doctorate.
“Power requires Europe to move from confederation to federation,” said Draghi,
stressing that only in domains where EU countries have pooled their competences
has the bloc gained clout on the global stage.
“Where Europe has federated, [such as] on trade, on competition, on the single
market, on monetary policy, we are respected as a power and negotiate as one,”
he said, citing trade agreements recently negotiated with India and Latin
America.
Draghi’s call comes as Europe struggles to keep pace with the U.S. and China,
and is facing Russian aggression in Ukraine plus a transatlantic ally that no
longer acknowledges the benefits of its historic European ties.
“This is a future in which Europe risks becoming subordinated, divided and
de-industrialized at once, and a Europe that cannot defend its interests will
not preserve its values for longer,” Draghi warned.
In the face of those challenges, areas of weakness are those where EU capitals
continue to maintain a grip, such as defense, industrial policy or foreign
affairs, Draghi said. In these, he added, “we are treated as a loose assembly of
middle-sized states to be divided and dealt with accordingly.”
The former top official praised the bloc’s recent stance on Greenland, where it
decided to resist rather than accommodate threats coming from the U.S. “By
standing together in the face of direct threat, Europeans discovered the
solidarity that had previously seemed out of reach,” he said.
Draghi will take part in an informal gathering of European leaders next week
aimed at discussing the direction for the bloc’s competitiveness, together with
another former Italian prime minister, Enrico Letta.
Both have laid out their economic visions in reports that form the building
blocks of President Ursula von der Leyen’s second term atop the European
Commission.