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.

German industrial giant Bosch on Friday confirmed plans to cut 20,000 jobs after profits nearly halved last year, underlining the mounting strain on Germany’s once-dominant manufacturing sector and increasing the pressure on politicians in Berlin to find a solution. Official data released Friday also showed Germany’s unemployment rate, unadjusted for seasonal factors, rising to 6.6 percent — the highest level in twelve years. The number of unemployed people surpassed three million in January. “Economic reality is also reflected in our results,” Bosch CEO Stefan Hartung said, describing 2025 as “a difficult and, in some cases, painful year” for the company, which is a leading supplier of parts for cars. The move lands amid a deepening slump in the country’s automotive industry, long the backbone of German manufacturing. The sector has been shedding jobs rapidly: A 2025 study by EY found that more than 50,000 automotive positions were cut in Germany last year alone. Germany’s automotive downturn has become a wider political test for the government in Berlin and Europe more widely. Once the economy’s crown jewel, the industry is now being challenged by current policy on electric vehicles, energy costs and aggressive competition from Chinese manufacturers. As suppliers weaken, the risk is shifting from lower profits to a lasting loss of competitiveness. With layoffs rising and investment decisions being delayed, Chancellor Friedrich Merz’s government is coming under growing pressure from workers, unions and industry leaders to rethink Germany’s industrial strategy — as doubts spread domestically and across Europe about the country’s ability to remain an economic powerhouse.

BRUSSELS — Senior European Commission officials hardly ever get the sack. On Thursday, one did. That was the twist in a tale that up until that moment had been classically Brussels. The protagonist: A little-known bureaucrat who had spent two decades working in the EU civil service. The allegations: Taking expensive gifts that aroused suspicions over conflicts of interest. “After nearly 22 years at the Commission, I am obviously disappointed,” Henrik Hololei told POLITICO only hours after he was informed of the decision. “But I’m happy that this long process has finally come to a conclusion.” While commissioners, the EU’s 27 political appointees, have been known to fall on their swords, there are few precedents for the dismissal of such a high-ranking civil servant, two senior officials familiar with the inner workings of the Commission said. Neither of the officials, who have several decades of EU experience between them, could remember any previous examples. Like other people interviewed for this article, they were granted anonymity so they could speak freely about Hololei and his downfall. The “long process” Hololei described totaled three years. It was in 2023 that POLITICO first revealed that the Estonian, who was then the EU’s top transport official, had accepted free flights from Qatar at the same time as negotiating a transport deal with the Gulf state that was beneficial to the country’s airline.   It couldn’t have come at a more inauspicious time. The initial reports emerged just a few months after the so-called Qatargate corruption scandal in the European Parliament, named after one of the countries linked to allegedly offering cash and gifts in return for favors. Hololei was not involved in that affair, but it added fuel to the argument from politicians and transparency campaigners that the EU needed to clean up its act. He resigned from his job within a month but didn’t leave the Commission. Soon after, he became special adviser in its international partnership division. The following year, French newspaper Libération reported additional allegations, including that he exchanged confidential details of the Qatar aviation deal in return for gifts for himself and others, including stays in a five-star hotel in Doha. This led to a probe by the EU’s Anti-Fraud Office (OLAF), which in turn led to the Commission’s investigation. On Thursday, the Commission announced that a senior official had breached the EU institution’s rules. These concerned conflicts of interest, gift acceptance and disclosures, according to three officials with knowledge of the investigation. They later confirmed the person in question was Hololei. ‘A LEGEND’ By his own admission, Hololei is a colorful character. Belying the clichéd image of a faceless bureaucrat, he’s known to do business over a drink or two. Michael O’Leary, the outspoken CEO of Irish airline Ryanair, who shared the occasional tipple with him, told POLITICO in 2023 that Hololei was “terrific.” His colleagues are just as glowing. On Thursday, a lower-ranking official who worked with him at the Commission described him as a “legend,” while a former transport lobbyist recalled seeing selfies of him holding up beers with industry representatives. “The feeling is they’re making an example of him,” said a person who works in the aviation field and met him during the course of his work. “He was undoubtedly passionate and determined to make EU transport better. He was a guy who just enjoyed the position he had. He was a people person.” Hololei talks to Czech Transport Minister Martin Kupka at the European Transport Ministerial Meeting in Prague in 2022. Colleagues and industry figures might mourn the departure of a gregarious, engaging figure, | Martin Divisek/EPA What ultimately led to his dismissal was an investigation by IDOC, the Commission’s internal disciplinary body, the result of which is not public.  IDOC’s conclusions were shared with a disciplinary committee made up of staffers who have equal or superior rank to Hololei — a relatively small pool given his seniority. Following a series of interviews with Hololei, the committee sent its recommendation to the College of Commissioners for a final vote. That decision was taken in the past few days.  ‘LONG OVERDUE’ While colleagues and those in the industry might mourn the departure of a gregarious, engaging figure, European propriety campaigners are less sympathetic. “It’s almost three years to the day since revelations of Mr. Hololei’s impropriety broke,” said Shari Hinds, senior policy officer at Transparency International, an accountability-focused NGO. “Though long overdue, it is encouraging that the European Commission finally appears to be dealing out consequences proportionate to the gravity of these ethics violations.” Hololei, 55, who had taken a pay cut when he moved to the role of hors classe adviser from DG MOVE, as the transport department is known, will receive his pension from the Commission when he reaches retirement age. He has three months to lodge a complaint against the decision with the Commission. “Good to see there is an actual reaction,” said Daniel Freund, a Green member of the European Parliament, who campaigns on issues of accountability in the EU institutions. “So far, so good.” ‘MUCH MISSED’ A decade in Estonian politics — where he largely focused on European affairs — preceded his time at the Commission, starting in the cabinet of then-Estonian Commissioner Siim Kallas, the father of current EU foreign policy chief, Kaja Kallas, before moving into transport. It was in that role he became a “very much-loved boss,” according to the person who worked with him. “Even now he is still very much missed in DG MOVE. He was a good person to be around.” In the comments Hololei gave to POLITICO on Thursday afternoon, he was as gracious as so often described by those who know him. But in the end, the personality traits that endeared him to so many he worked with, in the Commission and in industry, weren’t enough to save his job.

BRUSSELS — One of the European Commission’s senior officials, Henrik Hololei, breached its rules, an internal investigation found, two officials told POLITICO. Hololei, an Estonian, was subject to an investigation over allegedly violating rules on conflicts of interest, transparency, gift acceptance and document disclosure, according to documents seen by POLITICO last year. Hololei was previously a senior EU transport official in the Commission and became Hors Classe Adviser at the Directorate-General for International Partnerships. He was notified on March 21, 2025 that he faced an internal disciplinary procedure by the Commission, according to the documents seen by POLITICO. “The European Commission has concluded a disciplinary procedure with regard to a senior official,” Commission Executive Vice President Henna Virkkunen told reporters on Thursday, without naming the official. Two Commission officials with knowledge of the investigation confirmed to POLITICO that Hololei was the official in question. They were granted anonymity to speak openly about a confidential matter. “This procedure established that the staff member concerned breached the applicable rules,” Virkkunen said. The college of commissioners has “decided on appropriate and commensurate measures to apply to this senior official.” Hololei did not immediately respond to a request for comment. This article will be updated.

MADRID — A train collision that killed 45 people in southern Spain this month is piling even more political pressure on the struggling, Socialist-led government of Pedro Sánchez. Sánchez is already weaker than at any point during his eight years in power thanks to a string of corruption and sexual harassment scandals that have rocked his party over the past year. Sensing its moment to open another line of attack, the opposition is now seizing on the rail tragedy of Jan. 18 to accuse the government of neglecting vital public services. “It’s a general symptom of the fact that essential public services that depend on the government are not working,” said Alberto Núñez Feijóo, leader of the conservative opposition People’s Party (PP). “It’s proof of their collapse. The state of the railway track reflects the state of the country.” The far-right Vox party also slammed the accident as “criminal incompetence” on the part of the government. Political analysts did not expect the political tussles over the rail disaster would be an immediate breaking point for Sánchez’s government, but noted the subject could harm the Socialists’ chances in regional elections in Aragón in the northeast of Spain in February, and in Castilla y León in the northwest in March. RAILWAY FEARS Trains are a major component of Spain’s logistical and economic infrastructure. Its high-speed network is the second-largest in the world after China, and carried some 40 million passengers over 2024, an increase of 22 percent compared with the previous year. In all, Spain’s rail network carried 549 million passengers in 2024. This month’s crash, near the town of Adamuz, was the country’s worst since 2013. A high-speed train derailed along a straight section of track and collided with an oncoming train. Investigators are focusing on a crack in the welding between an old section of track and a newer one as the potential cause of the derailment, although their probe continues. Crucially, the accident is being linked to broader fragility within the rail system, for which Sánchez’s government has to take some responsibility. Only two days after the Adamuz smash, a trainee driver died on a regional train in Catalonia after a wall collapsed onto the line near Barcelona. Several days of chaos ensued in the northeastern region as drivers demanded safety guarantees before returning to work and technical faults caused further disruption.  Safety precautions have led to temporary speed reductions on a number of high-speed routes across the country, including between Madrid and Barcelona after a crack in the track was discovered. “The challenge is not just to ensure reliable infrastructure, but also to restore Spaniards’ confidence” in the rail system, said El País national daily. POLITICAL IMPACT The sheer number of Sánchez’s allies that have been afflicted by scandals has sparked repeated speculation that his coalition, which no longer commands a stable parliamentary majority, might be about to collapse.  In November, the attorney general, Álvaro García Ortiz, was removed from office after being found guilty of leaking confidential information in a court case involving the boyfriend of a prominent right-wing politician. A number of Sánchez’s current and former allies are facing corruption probes, and some senior Socialists have been the target of sexual impropriety allegations. In November, the attorney general, Álvaro García Ortiz, was removed from office. | Fernando Sanchez/Europa Press via Getty Images Compounding all this, the rail crisis has now handed critics a different kind of ammunition against the government. “There is now a line of attack against the government which is not directly linked to either its alliances with [Catalan and Basque] pro-independence parties or corruption,” said Pablo Simón, a political scientist at Carlos III University. “It’s the idea that the government is not able to adequately manage public services under its remit.” The opposition zeroed in on that same weakness last year after an energy blackout hit the country for several hours in April. Much of the latest criticism has been aimed at Transport Minister Óscar Puente, who has been the government’s frontman on the Adamuz crash. A divisive figure, nicknamed “Sánchez’s Rottweiler,” he is a natural lightning rod for opposition ire. In the immediate aftermath of the accident, Puente insisted it hadn’t been caused by poor maintenance, obsolete infrastructure or a lack of investment. But the opposition is demanding his resignation, claiming he misled the public by suggesting that the whole line on which the accident occurred had been replaced recently, which was not the case. Government spokesperson Elma Saiz said Puente “has been where he has to be and is still there, giving explanations in search of the truth and always with empathy and accompanying the relatives of victims.” REGIONAL TENSIONS Meanwhile, the rail chaos in Catalonia has revived a longstanding grievance of nationalists there: that the Spanish state has chronically underinvested in their regional network. The Catalan Republican Left (ERC), a parliamentary ally of the government, has also called for Puente to step down. The tensions of recent days bear some similarity to the fallout from the flash floods that killed 237 people in eastern Spain in October 2024. The PP-led local government’s apparent mishandling of that tragedy, under the leadership of Carlos Mazón, then president of Valencia, is believed to have eroded support for the conservatives in the region and hurt them on the national level. Simón said it will only become apparent how damaging the railway problems are for Sánchez when more details of the Adamuz crash investigation emerge. He added he did not expect the prime minister to resign or call an election over it. But with an election looming on Feb. 8 in Aragón, before Castilla y León the following month, the rail system has been thrust onto the campaign trail. Simón said the crisis “could have a negative impact on an electoral level” for Sánchez’s Socialists. “Above all because it’s clear [the central government] is responsible, and over the last three years there have been frequent problems with trains in Spain, and that affects a lot of people,” he said.

BRUSSELS — The European Parliament’s three largest political groups are discussing new safeguards against the unpredictability of President Donald Trump in a bid to break a deadlock over approving the EU–U.S. trade deal, according to two lawmakers and three officials familiar with the talks. Center-left and liberal lawmakers are asking for a clause to be included in enabling legislation that is now before the house, under which the deal would be voided if Trump restarts his threats against the territorial sovereignty of Greenland and the Kingdom of Denmark. “We will need to have safeguards in place with a clear reference to territorial sovereignty directed at Trump’s unpredictability,” said an official of the Socialists & Democrats familiar with the discussions, granted anonymity to speak about confidential deliberations. There are already suspension clauses in the text, but lawmakers want to include definitions — including threats to territorial sovereignty — to strengthen them. Apart from the sovereignty clause, the definitions should specify that new tariff threats would trigger an automatic suspension of the agreement, said an official from the liberal Renew Europe group. That could pave the way for a vote on the Parliament’s position to be scheduled for the next meeting of its International Trade Committee on Feb. 23-24. For the EU to implement its side of the bargain, the Parliament and Council of the EU, representing the bloc’s 27 members, would still need to reach a final compromise. “This could be perhaps a date to vote,” Bernd Lange, the chair of the committee, told POLITICO, referring to the Feb. 23-24 meeting. Lange added that outstanding issues — including whether to schedule a vote on the deal at all — will be discussed at a meeting of lead negotiators scheduled for Wednesday next week. “The question of safeguard[s] is an important one and will be solved in the proper way,” he added. The Parliament froze ratification of the agreement, reached by Trump and European Commission President Ursula von der Leyen last July, after the U.S. president threatened tariffs on European allies backing Greenland, a self-governing Danish protectorate. The center-right European People’s Party has pushed to sign off on the deal following calls from EU countries to unblock the implementation after Trump walked back threats to seize Greenland. But S&D, Renew and the Greens have so far balked, arguing further details are needed on the “framework” deal agreed by Trump with NATO chief Mark Rutte. An EPP official with knowledge of the discussions said the center-right group was open to stricter suspension safeguards in case Trump turns hostile again. “If he threatens [again] then the deal is off, but not the rest of our economic cooperation,” the official said. One of the S&D’s demands had been to officially ask the Commission to launch an investigation into whether Washington is coercing Europe to give up Greenland, which could lead to the launch of the EU’s Anti-Coercion Instrument. This trade “bazooka” is the bloc’s most powerful trade retaliatory weapon — but the EPP strongly opposes deploying it. “Anti-coercion is a serious and nuclear weapon that should be last discussed with strategic allies,” the EPP’s top trade lawmaker Željana Zovko told POLITICO, adding that the tool is “not serious diplomacy, only for drama queens.” Lawmakers are also discussing adding a sunset clause that would require the Commission to review the agreement after a set period, as well as excluding its steel provisions from ratification until the U.S. withdraws its 50 percent tariffs on European goods containing steel. MEPs say this violates the 15 percent all-inclusive rate agreed last summer.

NEW DELHI — The European Union and India locked arms against U.S. President Donald Trump’s tariff offensive and China’s flood of cheaper goods to conclude talks on a landmark trade pact on Tuesday.  Under the deal, India will lower tariffs on European cars and wine, while the EU signaled it would assist Indian companies with decarbonization and negotiate duty-free quotas for Indian steel.  “Two giants who choose partnership, in a true win-win fashion. A strong message that cooperation is the best answer to global challenges,” said European Commission President Ursula von der Leyen, standing next to Indian Prime Minister Narendra Modi. The announcement rounded off a year of intensive negotiations in which the EU sought to lock down a trade deal with the world’s most populous nation. Von der Leyen and European Council President António Costa were guests of honor at India’s exuberant Republic Day celebrations on Monday. Ties between India and the U.S. reached a low point last August, when Trump imposed a 50 percent tariff on goods from the South Asian nation over its purchases of Russian oil.  “Both know that they need each other like never before and in this fractured world where trusted partnerships are very, very hard to come by,” said Garima Mohan, who leads the German Marshall Fund’s work on India. Under the deal, India will gradually slash tariffs on European cars, reducing tariffs from 110 to 10 percent on 250,000 cars every year.  A range of agricultural goods will also see their tariffs drop, coming as a reassurance for the European Parliament and the EU’s farmers who have been heavily protesting in recent months over fears that they would be undercut by cheap farm produce.  Tariffs on wine will be reduced from to 20 and 30 percent from 150 percent now, depending on value. European olive oil will also enter duty free into India, instead of facing a 45 percent tariff. STEEL DEAL The stickiest issues related to steel and the EU’s carbon border tax: New Delhi, a major steel exporter, wanted to make sure that its metals wouldn’t be impacted by an upcoming 50 percent EU tariff on steel, and the carbon levy that has just entered force. In response to those concerns, the EU plans to give India a significant share of the 18.3 million metric tons of steel allowed to enter the bloc duty free — Brussels will negotiate this with its partners as is required by global trade rules.  “There will of course be a difference in how you treat this negotiation on application of steel measures between FTA and non-FTA partners. Therefore I think it was strategic from both sides that we have the agreement now and that India will be treated as an FTA partner,” EU trade chief Maroš Šefčovič told POLITICO.  On the carbon border tax, a new levy on carbon emissions that has irked countries such as the United States and Brazil, Brussels will “help Indian operators to have a smooth introduction of CBAM with all the technical assistance and all the additional advice we can provide,” Šefčovič added, stressing that the Commission would treat all its partners equally.  For India, the deal represents an opportunity to boost its exports of pharmaceuticals, textiles and chemicals.  This story has been updated.

BRUSSELS — Powerful political allies helped automakers force the EU to water down climate laws for cars — and now the aviation sector is borrowing those tactics. Their big target is getting the EU to dilute its mandate forcing airlines to use increasing amounts of cleaner jet fuels, alternatives to kerosene that are also much more expensive and harder to source. Aviation is emerging as the next crucial stress test for the EU’s climate agenda, as key leaders push to do whatever it takes to help struggling European businesses. With industry and allied governments pressing for relief from costly green rules, the fight will show how far Brussels is willing to go — and what it is willing to give up — in pursuit of its climate goals. “I will make a bet today that what happened to the car regulation will happen to the SAF [Sustainable Aviation Fuels] regulation in Europe,” French energy giant TotalEnergies CEO Patrick Pouyanné predicted at the World Economic Forum in Davos earlier this month. Carmakers provide a model on how to get the EU to backtrack. The bloc mandated that no CO2-emitting cars could be sold from 2035, essentially killing the combustion engine and replacing it with batteries (possibly with a minor role for hydrogen). But many carmakers — allied with countries like Germany, Italy and automaking nations in Central Europe — pushed back, arguing that the 2035 mandate would destroy the car sector just as it is battling U.S. President Donald Trump’s tariffs, sluggish demand and a rising threat from Chinese competitors. “I will make a bet today that what happened to the car regulation will happen to the SAF [Sustainable Aviation Fuels] regulation in Europe,” Patrick Pouyanné said. | Ludovic Marin/ AFP via Getty Images In the end, the European Commission gave way and watered down the 2035 mandate, which will now only aim to cut CO2 emissions by 90 percent. AVIATION DEMANDS The aviation sector has a similar list of issues with the EU. It is taking aim at a host of other climate policies, such as including aviation in the bloc’s cap-and-trade Emissions Trading System and intervening on non-CO2 impacts of airplanes like contrails — the ice clouds produced by airplanes that have an effect on global warming. Brussels introduced several regulations over the last 15 years to address the growing climate impact of air transport, which accounts for about 3 percent of global CO2 emissions. Those policies include the obligation to use sustainable aviation fuels, to put a price on carbon emissions and to take action on non-CO2 emissions. Each of these green initiatives is now under attack. The ReFuelEU regulation requires all airlines to use SAF for at least 2 percent of their fuel mix starting this year. That mandate rises to 6 percent from 2030, 20 percent from 2035 and 70 percent by 2050. “Today, all airline companies are fighting even the 6 percent … which is easy to reach to be honest,” Pouyanné said, but then warned, “20 percent five years after makes zero sense.” He is echoed by CEOs like Ryanair’s combative Michael O’Leary, who called the SAF mandate “nonsense.” “It is all gradually dying a death, which is what it deserves to do,” O’Leary said last year. “We have just about met our 2 percent mandate. There is no possibility of meeting 6 percent by 2030; 10 percent, not a hope in hell. We’re not going to get to net zero by 2050.” Brussels-based airline lobbies are not calling for the SAF mandate to be killed, rather they are demanding a book-and-claim system. Under such a scheme, airlines could claim carbon credits for a certain amount of SAF, even if they don’t use it in their own aircraft. They would buy it at an airport where it’s available and then let other airlines use it. That would make it easier for airlines to meet the SAF mandate even if the fuel is not easily available. However, so far the Commission is opposed. LOBBYING BATTLE The car coalition only worked because industry allied with countries, and there are signs of that happening with aviation. The sector’s lobbying effort to slash the EU carbon pricing could find an ally in the new Italo-German team-up to promote competitiveness. The German government last year announced a plan to cut national aviation taxes — with the call made during the COP30 global climate conference, something that angered the German Greens. Italian Prime Minister Giorgia Meloni and German Federal Chancellor Friedrich Merz attend the Italy-Germany Intergovernmental Summit at Villa Doria Pamphilj. | Vincenzo Nuzzolese/LightRocket via Getty Images Italian Prime Minister Giorgia Meloni said Friday that she and German Chancellor Friedrich Merz wanted to start “a decisive change of pace … in terms of the competitiveness of our businesses.” “A certain ideological vision of the green transition has ended up bringing our industries to their knees, creating new dangerous strategic dependencies for Europe without, however, having any real impact on the global protection of the environment and nature,” she added. Her far-right coalition ally, Italian Transport Minister Matteo Salvini, has called the ETS and taxes on maritime transport and air transport “economic suicide” that “must be dismantled piece by piece.” COMMISSION SAYS NO As with the 2035 policy for cars, the European Commission is strongly defending its policy against those attacks. Apostolos Tzitzikostas, the transport commissioner, stressed the EU’s “firm commitment” to stick with aviation decarbonization policies. “Investment decisions and construction must start by 2027, or we will miss the 2030 targets. It is as simple as that,” the commissioner said in November when announcing the bloc’s new plans to boost investment into sustainable aviation and maritime fuels. Climate campaigners fought hard against the car sector’s efforts to gut 2035, and now they’re gearing up for another battle over aviation targets. “The airlines’ whining comes as no surprise — yet it is disappointing to see airlines come after such a fundamental piece of EU legislation,” said Marte van der Graaf, aviation policy officer at green NGO Transport & Environment. She was incensed about efforts to dodge the high prices set by the EU’s ETS in favor of the U.N.’s cheaper CORSIA emissions reduction scheme. Airline lobbyA4E said its members paid €2.3 billion for ETS permits last year. “By 2030, [the ETS cost] should rise up to €5 billion because the free allowances are phased out,” said Monika Rybakowska, the lobby’s policy director.  A recent study by the think tank InfluenceMap found that airlines are working to increase their impact on policymakers by aligning their positions on ETS. T&E also took aim at a recent position paper by A4E that asked the EU to postpone measures to curb non-CO2 pollution — such as nitrogen oxides and soot particles that, along with water vapor, contribute to contrails. The A4E paper said that “the scientific foundation for regulating non-CO2 effects remains insufficient” and “introducing financial liability risks misdirecting resources.” This is “an outdated excuse,” responded T&E, noting that the climate impact of contrails has been known for over 20 years.

NEW DELHI — The EU and India have concluded trade talks on a free trade agreement, a senior Indian official told POLITICO.  “Official-level negotiations are being concluded and both sides are all set to announce the successful conclusion of FTA talks on 27th January,” Commerce Secretary Rajesh Agrawal told POLITICO.  Under the deal, India is expected to significantly reduce tariffs on cars and machinery as well agricultural goods such as wine and hard alcohol. “This would be a very good story for our agriculture sector. I believe we are aiming to start a completely new chapter in the field of cooperation in the automotive sector, in machinery,” EU trade chief Maroš Šefčovič told POLITICO. On trade in services, the trade chief said that sectors like telecoms, maritime and financial services were expected to benefit. “This is again something where also India is making groundbreaking steps to new levels of cooperation, because we are the first one with whom they’re ready to consider this cooperation,” he said.  The conclusion to the talks arrived as the EU leadership was on a three-day visit to India for a summit to boost trade and defense ties between New Delhi and Brussels.  With the talks between the two sides having been on and off since 2007, the pact comes at an ideal moment as New Delhi and Brussels battle steep tariffs from the U.S. and cheap goods from China. 

BRUSSELS — The U.S. and EU are hoping to attract $800 billion of public and private funds to help rebuild Ukraine once Russia ends its full-scale invasion, according to a document obtained by POLITICO. The 18-page document outlines a 10-year plan to guarantee Ukraine’s recovery with a fast-tracked path toward EU membership. The European Commission circulated the plans with EU capitals ahead of the leaders’ summit Thursday evening where the document, dated Jan. 22, was addressed, according to three EU officials and diplomats who were granted anonymity to talk about the sensitive topic. While Brussels and Washington are lining up hundreds of billions of dollars in long-term funding and pitching Ukraine as a future EU member and investment destination, the strategy hinges on a ceasefire that remains elusive — leaving the prosperity plan vulnerable as long as the fighting continues. The funding strategy stretches until 2040 alongside an immediate 100-day operational plan to get the project off the ground. But the prosperity plan will struggle to attract outside investment if the conflict rumbles on, according to the world’s largest money manager, BlackRock, which is advising on the reconstruction plan in a pro-bono capacity. “Think about it. If you’re a pension fund, you’re fiduciary towards your clients, your pensioners. It’s nearly impossible to invest into a war zone,” BlackRock’s vice chairman, Philipp Hildebrand, said Wednesday in an interview at the World Economic Forum in Davos. “I think it has to be sequenced and that’s going to take some time.” The prosperity plan is part of a 20-point peace blueprint that the U.S. is attempting to broker between Kyiv and Moscow. It explicitly assumes that security guarantees are already in place and is not intended as a military roadmap. Instead, it focuses on how Ukraine can transition from emergency assistance to self-sustaining prosperity. A three-way meeting between Ukraine, Russia and the U.S. will take place in Abu Dhabi on Friday and Saturday, as the all-out conflict nears its fourth anniversary. The U.S. is set to play a prominent role in Ukraine’s recovery. Rather than framing Washington primarily as a donor, the document positioned the U.S. as a strategic economic partner, investor and credibility anchor for Ukraine’s recovery.  The note anticipates direct participation by U.S. companies and expertise on the ground, and highlights America’s role as a mobilizer of private capital. BlackRock’s chief executive, Larry Fink, has sat in on peace talks with Kyiv alongside U.S. President Donald Trump’s son-in-law, Jared Kushner, and his special envoy, Steve Witkoff. SHOW ME THE MONEY Over the next 10 years, the EU, the U.S. and international financial bodies, including the International Monetary Fund and the World Bank, have pledged to spend $500 billion of public and private capital, the document said. The Commission intends to spend a further €100 billion on Kyiv through budget support and investment guarantees, as part of the bloc’s next seven-year budget from 2028. This funding is expected to unlock €207 billion in investments for Ukraine. The U.S. pledged to mobilize capital through a dedicated U.S.-Ukraine Reconstruction Investment Fund, but did not attach a figure.  While Trump has slashed military and humanitarian support to Ukraine during the war, it showed willingness to invest in the country after the end of the conflict. Washington said in the document that it will invest in critical minerals, infrastructure, energy and technology projects in Ukraine.  But business is unlikely to boom before the eastern front falls silent. “It’s very hard to see that happening at scale as long as you have drones and missiles flying,” BlackRock’s Hildebrand said. Kathryn Carlson reported from Davos, Switzerland.