STRASBOURG — European and American officials are scrambling to avoid a return to
their transatlantic trade war, amid increasing frustration in Washington over
the EU’s failure to implement the transatlantic trade deal they agreed last
summer.
A trio of senior European lawmakers will travel to Washington next week, hoping
to meet U.S. Trade Representative Jamieson Greer, who accuses the EU of
implementing “zero percent” of the trade accord reached at President Donald
Trump’s Turnberry golf resort in Scotland last July 27.
The mission to the U.S. comes amid of flurry of diplomatic contacts between EU
and U.S. officials ahead of a high-stakes vote by European lawmakers expected on
March 26 that will determine whether Brussels can implement last year’s accord.
That vote is at risk of being delayed, yet again, after a series of previous
hold ups. U.S. patience is wearing thin, raising the prospect that the tariff
conflict could flare up again.
“The EU has done approximately zero percent of what they were supposed to do for
their trade deal with us. We quickly after the Turnberry deal came into
compliance with that deal,” Greer said during a press call on Wednesday.
“The European Union has had their legislation for their tariffs pending for
many, many, many, many months,” he added.
Top EU parliamentary negotiators will meet on March 17 to decide whether to push
back their vote again.
The Turnberry agreement is widely seen in Europe as a one-sided pact. In it, the
EU accepted a 15 percent U.S. tariff on most exports, while itself pledging to
scrap all tariffs on U.S. industrial goods. Many EU lawmakers fear that Trump
could yet renege on the deal to make more tariff threats, as he has done over
Greenland and Spain.
In the Parliament, the center-right European People’s Party — the political
family of European Commission President Ursula von der Leyen and German
Chancellor Friedrich Merz — wants to see the deal approved to avoid retaliation
by Trump and bring stability to businesses.
The Socialists & Democrats, liberals and Greens have voted against moving
forward, however, after balking at the U.S. president’s latest tariff menaces
against Spain, his strikes on Iran and his threats to stage a “friendly
takeover” of Cuba.
CRACKS IN TRUST
Treasury Secretary Scott Bessent has sought to reassure the Europeans that the
U.S. will stick by the deal. Yet skepticism persists.
“How can we get clarity with Trump [who] doesn’t respect the deals? I think
that, for now, what we would need is some public statement on the willingness to
respect the deal,” Brando Benifei, an Italian Socialist who is the Parliament’s
point person for relations with the U.S., said on Tuesday.
Treasury Secretary Scott Bessent has sought to reassure the Europeans that the
U.S. will stick by the deal. | Brendan Smialowski/AFP via Getty Images
Benifei will be one of the three MEPs traveling to meet Greer. The others are
Bernd Lange, the German Social Democrat who chairs the European Parliament’s
trade committee, and Polish center-right lawmaker Michał Szczerba, who sits on
the foreign and security committees.
They hope to meet Greer on March 20, but the EU lawmakers could already have
delayed the vote by then. “I hope that we can find some common ground,” Lange
said.
Karin Karlsbro, a Swedish liberal who is skeptical on the trade pact, is also
expected to meet with representatives of the U.S. mission to the EU, her office
said.
And Željana Zovko, the top negotiator on the file from the EPP, the biggest
grouping in Parliament, will meet with U.S. Ambassador Andrew Puzder on Monday,
she told POLITICO.
Despite the worries from the U.S. side, Anna Cavazzini, the lead lawmaker on the
file in the Greens group who is spearheading opposition to the deal, said she
had not been contacted by the Americans.
UNRELIABLE PARTNER
Despite Bessent’s pledge on the Turnberry pact, the EU remains wary over what
Trump will do next. The U.S. has, only this week, launched new investigations
into unfair trade practices that could trigger more tariffs against the EU.
That has redoubled concerns in Brussels that Trump plans to plow on with his
aggressive trade agenda against Europe, undeterred by a Supreme Court ruling
last month that substantially overturned his original tariff agenda.
On top of the latest investigations, people close to the file say the White
House will not shy away from imposing tariffs on national security grounds, such
as Section 232 of the Trade Expansion Act of 1962.
Washington’s double-sided approach is not lost on European lawmakers.
“‘We’ll stick to the deal.’ And less than 24 hours later, they are already
threatening us with new tariffs. It is impossible to work with the Trump
administration like this,” the Socialist group’s vice president for trade
policy, Kathleen Van Brempt, said in a post on X Thursday.
The EPP’s top trade lawmaker, Jörgen Warborn, last week pitched a “sunrise
clause,” meaning the deal would only finally kick in if Washington upheld its
side of the bargain.
“That would give clarity because what the sunrise clause is doing, it’s making
sure that the deal doesn’t kick in before it is confirmed that all the elements
of the deal are upheld,” Warborn told POLITICO on Tuesday.
Željana Zovko, the top negotiator on the file from the EPP, the biggest grouping
in Parliament, will meet with U.S. Ambassador Andrew Puzder on Monday, she told
POLITICO. | Martin Bertrand/Hans Lucas/AFP via Getty Images
Benifei said the sunrise clause could enable his group to support the pact.
Still, he explained, this would require provisions allowing the Commission not
to implement the EU-U.S. agreement until Washington stops threatening the EU’s
digital rules, and until the U.S. lowers tariffs on EU steel derivatives.
“We are not there,” he said, expressing skepticism that the EPP would be willing
to place such tough demands on the Commission.
“They [EPP lawmakers] are a bit worried about the situation that is not moving,”
he said. “I need to see what they are actually ready to do, because to be frank,
my impression is that they are a bit in the mood [of saying] …‘Just let’s not
make Trump angry.’”
Carlo Martuscelli contributed to this report.
Tag - EU Commission
BUDAPEST — Hungarian Prime Minister Viktor Orbán is facing the toughest election
of his 16-year rule, and U.S. President Donald Trump and his MAGA movement are
mobilizing to help him.
Polls suggest the Hungarian leader is currently trailing his former
ally-turned-challenger Péter Magyar, who has capitalized on voter frustration
over record inflation, economic malaise and a string of political scandals. With
Orbán’s dominance suddenly in question, Trump’s administration and leading MAGA
figures have moved to bolster the man they regard as their most dependable
ideological ally in Europe.
For MAGA luminaries, Orbán isn’t merely a partner — he’s an inspiration. His
hardline stance on migration, his battles against universities and “woke”
cultural institutions, his hostility toward Brussels and skepticism toward
Ukraine have long been held up as a governance model by American conservatives.
“We were Trump before Trump,” boasts the website of the Conservative Political
Action Conference (CPAC) in Budapest. And in June 2024, U.S. Vice President JD
Vance openly tipped his hat to Orbán, saying the Hungarian prime minister had
“made smart decisions that we could learn from in the U.S.”
And learn they have. “We have entered the policy-writing system of Trump’s team.
We have deep involvement there,” bragged Orbán at a rally in Hungary during the
2024 White House race. Hungarian government and pro-Orbán think tanks, such as
the Századvég Foundation and the Danube Institute, have also had a long ongoing
relationship with Trump-aligned think tanks like the Heritage Foundation,
sharing research, ideas and scholars.
Above all, the U.S. president’s allies praise Orbán not just for his policies
but for his steadfastness in contrast to other MAGA-friendly politicians — like
Italian Prime Minister Giorgia Meloni, whom they dismiss for supporting Ukraine
and for her willingness to work with former President Joe Biden between Trump’s
two terms. “Orbán went out of his way to remain loyal to Donald Trump when he
was out of power and written off politically,” said Benjamin Harnwell, the
right-hand man of former Trump strategist Steve Bannon.
And in June 2024, U.S. Vice President JD Vance openly tipped his hat to Orbán,
saying the Hungarian prime minister had “made smart decisions that we could
learn from in the U.S.” | Pool photo by Matt Rourke/Getty Images
And now MAGA is returning the favor by pulling out the stops for the man Trump
once described in a lengthy social media post as “a truly strong and powerful
Leader … delivering phenomenal results” for Hungary.
On a recent visit to Budapest, U.S. Secretary of State Marco Rubio further
underlined Trump’s endorsement, saying U.S. ties with Hungary were entering a
“golden era” and promising financial support for the country if needed — but
only if Orbán remains in power. “President Trump is deeply committed to your
success, because your success is our success,” Rubio said.
This visit from Washington’s top diplomat shows just how seriously the
administration is taking Hungary’s April election. “For MAGA, the two most
important elections this year are those in Hungary and the midterms in the
United States,” said Timothy Ash of Britain’s Chatham House. And John
McLaughlin, a veteran Republican strategist who worked on all three of Trump’s
presidential campaigns, has been polling for Orbán.
This is all because a defeat for the Hungarian prime minister would be a blow to
the global populist movement, even as Washington ramps up support for other
like-minded political actors across Europe.
“It would be seen as an ideological or intellectual setback if he lost,” said
Frank Furedi, an Orbán ally who heads the Brussels branch of the Hungarian
government-backed Mathias Corvinus Collegium (MCC). “You have to remember that
Orbán plays a disproportionately influential role in terms of the outlook of
many of these parties and their leaders, who have a strong affection for him,”
he added. “I think a defeat would have an impact at least in the short term, in
terms of influencing continent-wide political dynamics.”
TRUMP CARD
Three weeks before the election, MAGA luminaries and national conservative and
populist stars from across Europe are all set to gather in the Hungarian capital
for a CPAC conference organized by the American Conservative Union — the fifth
one since 2022.
On a recent visit to Budapest, U.S. Secretary of State Marco Rubio further
underlined Trump’s endorsement. | János Kummer/Getty Images
Orbán is hoping the U.S. president will be in attendance.
Trump has a standing invitation to the event, and the Hungarian leader has made
no secret he’d like nothing more. But while Trump teased a visit in January, he
has so far remained noncommittal.
Shortly before heading to Washington for last month’s inaugural meeting of
Trump’s Board of Peace, Orbán reminded Hungarian radio the U.S. president “owes
him” a visit. Though, he acknowledged, “things are changing so rapidly that we
can’t plan even two weeks ahead.”
The U.S.-Israel war with Iran has only added to the uncertainty.
Orbán has so far discreetly endeavored to distance himself from the Middle East
war, delicately noting at a recent campaign rally that the president had sought
his opinion ahead of the bombing of Iran, “given we [Hungary] have relations
with Iran and friendly relations with Israel.”
He said that what’s happening isn’t what he’d advised, but added that the U.S.
leader and Chinese President Xi Jinping will discuss serious measures to
“stabilize the world’s state” when Trump visits Beijing, as he is expected to do
later this month.
Still, it’s unclear just how much MAGA’s support has actually aided the
Hungarian prime minister. There’s no evidence that Rubio’s visit shifted opinion
polls, noted Chatham House’s Ash. In fact, a subsequent poll published after his
visit suggested Hungary’s center-right opposition widened its lead in February.
Shortly before heading to Washington for last month’s inaugural meeting of
Trump’s Board of Peace, Orbán reminded Hungarian radio the U.S. president “owes
him” a visit. | Harun Ozalp/Anadolu via Getty Images
Meanwhile, as Orbán has sought to portray the election as a referendum on the
war in Ukraine and paint his challenger as a Brussels stooge, Magyar has
successfully shifted the conversation to bread-and-butter issues.
His Tisza party currently enjoys a nine-point lead over Orbán’s Fidesz party,
according to POLITICO’s Poll of Polls, and it has done this by channeling anger
over inflation and economic mismanagement. Long vulnerable to external shocks,
the Hungarian forint has come under renewed pressure following the recent
geopolitical turmoil in the Middle East, and this has raised fears of higher
energy prices and another inflationary spike, just as price growth had begun to
cool.
There’s also little agreement among commentators as to what extent further MAGA
reinforcement — or even a visit from Trump — could rally support for Orbán. “I
think it will fire up his supporters and firm up his existing voter base.
Whether it makes any difference to anybody else or convinces people to vote one
way or the other is an open question,” Furedi said.
Trump isn’t in the habit of investing political capital in causes he believes
are doomed. So, if Hungary’s polls continue to point toward an Orbán defeat, and
the prime minister fails to regain momentum in his campaign’s final stretch, he
may discover there are limits to how far — and how long — the U.S. president is
prepared to go, even for a one of MAGA’s most celebrated international allies.
BRUSSELS — Right-wing lawmakers told former EU Commissioner Thierry Breton that
he deserved to be sanctioned by the United States during a fiery hearing in the
European Parliament on Wednesday.
Breton spoke to the Parliament’s internal market committee alongside three civil
society representatives who were in December banned from traveling to the U.S.
because of their work on the EU’s digital laws.
Most of the lawmakers expressed warm support from Breton, who worked with them
on passing the EU’s Digital Services Act that the Donald Trump administration is
going after.
Yet there was notable dissent from lawmakers on the right and far-right as the
debate split along political lines. Polish right-wing lawmaker Piotr Müller told
the hearing that Breton’s actions during his time in office were reminiscent of
Soviet-style censorship.
Lawmakers on the left meanwhile suggested the EU Commission should suspend
access for American government representatives to its premises, a move that
would severely restrict contacts with Washington.
Wednesday’s hearing comes amid an ongoing fight between Washington and Brussels
over the EU’s digital rules. The White House and its allies claim the DSA is a
censorship regime that also affects U.S. citizens and restricts free speech. The
Commission says it censors neither Europeans nor Americans, and argues instead
that the EU protects all users online and promotes free expression by blocking
illegal and harmful content and misinformation.
Referring to a letter Breton sent X owner Elon Musk in 2024, Müller said that
Breton’s decision to threaten Musk over a planned live interview with
then-presidential candidate Donald Trump was “a clear case in point when
political instruments are used to actually hamper the freedom of speech.”
Müller, who represents the European Conservatives and Reformists Group, said
ahead of the hearing that the letter amounted to “a blatant attempt to
interfere” in the U.S. elections. “Actions have consequences and this episode
inevitably shaped perceptions in Washington,” he told POLITICO.
While Breton said at the time that the interview could include misinformation
that would spread in the EU, and that the Commission could block X as a result,
some within the Commission said he was overreaching to gain attention. Breton
resigned a few weeks later, after Commission President Ursula von der Leyen
asked for his candidacy for another term to be withdrawn.
Multiple lawmakers stood by the French former commissioner at Wednesday’s
hearing and called on the Commission to show stronger support.
French member of The Left, Leila Chaibi, asked the EU executive to suspend
access badges of members of the U.S. mission to the EU and the American Chamber
of Commerce.
Other MEPs said the attack on Breton was an attack on the whole institution.
French liberal MEP Sandro Gozi noted the Trump administration could have banned
as many as 565 officials from entering the U.S., based on the number of MEPs
that voted for the DSA and the number of EU commissioners in office.
“We are all guilty. I plead guilty here to have defended our values, our
democracy, by approving our digital legislation,” Gozi said.
Breton, addressing lawmakers via video link, said he wasn’t the “mastermind”
behind the EU’s digital laws but part of a “tremendous team” that was working
“together to protect our fellow citizens.”
Breton told POLITICO in an interview last month that the travel ban was
“unjustified” and reflected a fundamental misunderstanding of how Europe
regulates free speech.
The Commission said it was standing by Breton.
“The Commission has adopted a decision granting [Breton] financial assistance to
seek legal advice and assistance to challenge the decision taken by the U.S.
administration,” spokesperson Ricardo Cardoso said in an emailed statement.
Christine Lagarde said her “baseline” is that she will stay at the European
Central Bank until her term as president ends in October 2027.
“I think that we have accomplished a lot, that I have accomplished a lot,” she
said in an interview with The Wall Street Journal, published on Friday. “We need
to consolidate and make sure that this is really solid and reliable. So my
baseline is that it will take until the end of my term.”
Her comments come two days after a report in the FT, sourced to a single person
“familiar with her thinking,” suggested the opposite. The article triggered
controversy, implying that the appointment of the next ECB president could be
moved up to deny a possible far-right president in France any say in the matter.
President Emmanuel Macron is due to step down in April next year.
Lagarde played down suggestions she would be complicit in undermining the
independence of the ECB from political influence by going along with any such
plan.
“The ECB is a very respected and credible institution, and I hope that I’ve
participated in that,” she said.
Lagarde’s comments to The Wall Street Journal are the latest in a series of
carefully caveated statements about her future that have generally left her some
wiggle room. She confirmed that she is already thinking about her next move,
telling the paper that “one of the many options” she is looking at is to take
over running the World Economic Forum. The WEF’s founder Klaus Schwab said last
year he had discussed the possibility of her leaving the Bank early to succeed
him in Davos.
BRUSSELS — The EU is relaunching its elite recruitment competition after a
seven-year break in an effort to find a new generation of high-level
administrators to help manage the world’s second largest economy.
The European Commission, which last held the competition in 2019, organizes the
assessment to inject new blood into Brussels’ corridors of power. A big wage and
job security await those who pass the test.
“It’s a contract for life,” said András Baneth, managing partner of EU Training,
which prepares applicants for the process, and author of a book on how to pass.
“This is a great opportunity for predictable career advancement and, of course,
a salary and everything that goes with it.”
Successful applicants are eligible for roles at grade “AD-5,” which come with a
monthly pay packet of between €5,973 and €6,758, as well as the chance to
progress through the bureaucracy and take up influential roles in commissioners’
Cabinets — the elite teams of advisers weighing in on key policy areas.
The graduate scheme, aimed at generalists, will open on Thursday, according to
the European Personnel Selection Office (EPSO), and close on March 10. It is the
first time since 2019 that the contest has been held. The process includes
psychometric testing, an EU knowledge assessment and an essay submission for
those who pass the initial stages.
Commission President Ursula von der Leyen has made it a priority to give
younger, harder-working staff a chance to climb the ladder in an institution
that has historically had a stiff hierarchy, Commission officials said.
“It’s very important to bring a younger talent pool with a different way of
thinking in,” said a senior official, granted anonymity to speak frankly.
“You’ll have a lot of certain levels retiring and you need to make sure the next
generation of public servants is coming through. Of course we need people who
understand the institution, but we also need people who understand the
technologies of the future from a different perspective.”
According to a spokesperson for the Commission, the “extended pause” over the
past seven years was due to a move to full online testing. The scrapping of an
assessment center stage means “the overall duration of the competitions of EPSO
has been shortened.”
SET FOR LIFE
“After entering the workforce four years ago, this is finally my first chance to
enter the [EU] institutions, which until now has seemed impossible,” said one
prospective applicant, granted anonymity to avoid harming their application.
“Everyone knows that once you pass the [competition], and get a job, you’re set
for life. Which is why literally all of my friends will take this opportunity.”
Many younger staff in the 33,000-strong Commission workforce currently serve in
relatively insecure roles on short-term contracts or as agency employees,
meaning they have fewer benefits, worse take-home pay and far less certainty
over their future. The executive has launched a review of its structure,
designed to improve its efficiency and cost-effectiveness, with concerns that
those who do not have official status could be negatively affected by a
restructure.
A second prospective applicant, working in the private sector, hit out at the
irregularity of the process. “I really hope it will be different this time to
give external people a chance, since at the moment the system favors candidates
already working at the institutions,” they said.
Baneth, the test expert, said that about 1,200 applicants will be directly
offered jobs from an applicant pool that could exceed 50,000. Others will be
added to a reserve list from which “only 30 percent will actually be offered a
job … this leads to a lot of negative feelings when someone goes through all
this and still they cannot be sure they get a job.”
Pedro Sánchez is the prime minister of Spain.
It’s no secret the world is going through a time of turbulence. The principles
that held it together for decades are under threat; disinformation is spreading
freely; and even the foundations of the welfare state — which brought us the
longest period of prosperity in human history — are now being questioned by a
far-right transnational movement challenging our democratic systems’ ability to
deliver collective solutions and social justice.
In the face of this attack, Europe stands as a wall of resistance.
The EU has been — and must remain — a shelter for the values that uphold our
democracies, our cohesion and our freedom. But let’s be honest, values don’t put
a roof over your head. And at any rate, these values are fading fast in the face
of something as concrete and urgent as the lack of affordable housing.
If we do not act, Europe risks becoming a shelter without homes.
The figures are clear: The housing crisis is devastating the standard of living
across Europe. Between 2010 and 2025, home prices rose by 60 percent, while
rental prices went up by nearly 30 percent. In countries like Estonia or
Hungary, prices have tripled. In densely populated or high-tourism cities,
families can spend over 70 percent of their income on rent. And individuals with
stable jobs in Madrid, Lisbon or Budapest can no longer afford to live where
they work or where they grew up.
Meanwhile, 93 million Europeans — that’s one in five — are living at risk of
poverty or social exclusion. This isn’t just the perception of experts or
institutions: Around half of Europeans consider housing to be an “urgent and
immediate problem.”
Housing, which should be a right, has become a trap that shapes peoples’
present, suffocates their future and endangers Europe’s cohesion, economic
dynamism and prosperity.
The roots of this problem may differ from country to country, but two facts are
undeniable and shared throughout our continent: First, the need for more houses,
which we’ve been falling behind on for years.
For nearly two decades now, residential construction in the EU has fallen short
of demand. After a period of strong growth in the 1990s and early 2000s, the
2008 financial crisis triggered a collapse in housing investment, and the sector
never fully recovered. The pandemic only widened this gap, halting permits,
delaying materials and worsening labor shortages that further stalled
construction.
Second, and just as urgent, is that we must ensure both new construction and
existing housing stock serve their true purpose: upholding the fundamental right
to decent and affordable housing. Because as we continue to fall short of
guaranteeing this basic right, homes are increasingly being diverted to fuel
speculation or serve secondary uses like tourist rentals.
In fact, according to preliminary European Parliament data, there were around 4
million short-term rental listings on digital platforms across the EU in 2025.
In my home country, cities like Madrid and València have witnessed the
displacement of residents from their historic centers, which are transforming
into theme parks for tourists.
For nearly two decades now, residential construction in the EU has fallen short
of demand. | David Zorrakino/Getty Images
At the same time, housing is increasingly being treated as a financial asset
instead of a social good. In Ireland, investment funds have acquired nearly half
of all newly built homes since 2017, while in Sweden, institutional investors
now control 24 percent of all private rental apartments.
Just as no one would dare justify doubling the price of a bowl of rice for a
starving child, we cannot accept turning the roofs meant to shelter people into
a vehicle for speculation — and citizens overwhelmingly share in this view.
Seventy-one percent of Europeans believe that the places they live would benefit
from more controls on property speculation, like taxing vacant rentals or
regulating short-term rentals.
This is what the EU stands for: When it’s a choice between profit and people, we
choose people.
That choice can’t wait any longer.
Thankfully, with yesterday’s Affordable Housing Plan, the European Commission is
starting to move on housing, taking steps that Spain has long advocated.
Brussels now increasingly recognizes the scale of this emergency and
acknowledges that specific market conditions may require differentiated national
and local responses. This will help consolidate a shared policy understanding
regarding housing-stressed areas and strengthen the case for targeted measures —
which may include, among others, restrictions on short-term rentals. Crucially,
the plan also stresses the need for EU financing to boost housing supply.
The time for words is over. We need urgent action. A growing outcry over housing
is resonating across Europe, and our citizens need concrete solutions. Any
failure to act with ambition and urgency risks turning the housing crisis into a
new driver of Euroskepticism.
After World War II, Europe was built on two founding promises: securing peace
and delivering well-being. Honoring that legacy today means taking decisive
action by massively increasing flexible funding to match the scale of the
housing crisis, and guaranteeing member countries can swiftly implement the
legal tools needed to adopt bold regulatory measures on short-term rentals and
address the impact of nonresident buyers on housing access.
The true measure of our union isn’t just written in treaties. It must be
demonstrated by ensuring every person can live with dignity and have a place to
call home. Let us rise to that promise — boldly, together and without delay.
BRUSSELS — U. S. Vice President JD Vance has hit out at the EU’s digital rules
enforcement, saying the EU should not be “attacking American companies over
garbage.”
“Rumors swirling that the EU commission will fine X hundreds of millions of
dollars for not engaging in censorship. The EU should be supporting free speech
not attacking American companies over garbage,” Vance wrote on X overnight.
X owner Elon Musk immediately thanked the U.S. official, commenting, “Much
appreciated.”
The European Commission opened formal proceedings against X under its Digital
Services Act in December 2023, roughly a year after Musk bought Twitter and
rebranded it as X.
But the EU has yet to finalize its probe, after accusing X of breaching its
obligations around transparency and blue checkmarks in preliminary findings in
July 2024. A decision could come as early as Friday, according to media
reports Thursday.
Under the EU rules, companies can be fined up to 6 percent of their annual
global turnover.
French President Emmanuel Macron last week voiced concerns about the slow pace
of Brussels’ probes into American tech giants, adding to a growing chorus of
criticism that the bloc has been too slow to enforce its flagship Digital
Services Act amid U.S. pressure.
Washington has repeatedly asked the EU to roll back its digital rule book as
part of trade negotiations, and last week U.S. Secretary of Commerce Howard
Lutnick put this on the table again as an explicit exchange for scrapping
tariffs on steel and aluminum in ongoing talks.
Asked earlier Thursday how she feels about a looming diplomatic showdown if she
slaps a fine on a U.S. tech giant, Commission digital chief Henna Virkkunen told
POLITICO: “I’m quite calm in different situations. I’m not surprised about
anything. I’m protecting our laws. But at the same time we are going to make
Europe faster and simpler and easier for businesses.”
Asked if she’s afraid of the U.S.’s reaction to a fine under the DSA, Virkkunen
responded with a single word: “No.”
LONDON — Britain’s man in Geneva is quietly trying to fix the global trading
system — without angering President Donald Trump.
As World Trade Organization (WTO) members stumble toward a long-anticipated
reform effort, U.K. Ambassador Kumar Iyer is working to modernize the
organization’s rulebook.
Iyer’s vision for WTO reform ahead of its big biennial conference in March
centers on shaking up the way the 30-year-old U.N. body enforces the rules of
global trade.
Speaking to POLITICO earlier this month, Iyer said he wants to have a system
“where not everything is always held back by consensus and not everything
requires everyone to agree […] and it’s not negatively impacting a range of
countries.”
Brussels has flirted with building an alternative “rules-based” trade order that
would bring together the EU and the Indo-Pacific trade bloc that the U.K. joined
last year — an alliance that sidelines Washington, long accused of paralyzing
the WTO’s dispute system.
Ministers representing the two trade blocs are meeting in Melbourne, Australia,
this week for their first official joint dialogue.
Kumar Iyer’s vision for WTO reform ahead of its big biennial conference in March
centers on shaking up the way the 30-year-old U.N. body enforces the rules of
global trade. | Martial Trezzini/EPA
But Iyer is keen to downplay talk of an anti-Trump alliance. “We’re really
comfortable with other countries having those [agreements],” he said. “But
they’re not an alternative to the multilateral system.”
‘BUSINESSES’ FOCUS IS NOW ELSEWHERE’
Iyer’s frustration over attitudes towards the WTO is clear — especially with
what he sees as corporate indifference toward the organization, leading to its
deprioritization in global politics.
“CEOs and corporate leaders have stopped looking towards the WTO as being on the
forefront of global trade policy,” he said. “They’ll look at CPTPP […] — that’s
where the board-level focus has gone, and that’s very understandable.”
EU Commission President Ursula von der Leyen first floated the idea of a wider
alliance with CPTPP members in June during EU trade talks with the U.S. She
argued that the bloc could “show to the world that free trade with a large
number of countries is possible on a rules-based foundation.”
Still, Iyer insists that no new alliances can replace the WTO — or its role as
the foundation of the global trade system.
“No FTA is even possible without the WTO,” he said. “The WTO is the operating
system, and FTAs are essentially the applications that sit on it. Saying you
only need CPTPP is like saying I’ve got Microsoft Word and Excel, so I don’t
need Windows.”
With the WTO’s next ministerial conference fast approaching, officials are
steeling themselves for bruising negotiations on several issues, ranging from
e-commerce to agriculture and fisheries.
Washington, however, remains the main obstacle. The U.S. has for years blocked
the appointment of new judges to the WTO’s top appeals court, effectively
paralyzing one of its core functions in trade dispute settlement.
“This isn’t about coming out with a big bang change immediately,” Iyer said of
the coming reform talks. “It’s about getting that political engagement around it
and showing a real, genuine willingness.”
Tech tycoon Elon Musk on Wednesday threw a jab at European democracy — and the
president of the European Commission.
“If democracy is the foundation of freedom, surely your position as leader of
the EU should be elected directly by the people?” Musk wrote in a post on social
media platform X, which he owns, to Ursula von der Leyen.
In another post, the Tesla and SpaceX chief added that the “leader of the EU”
should be “elected by the people” of the bloc, “not appointed by a committee.”
Musk was reacting to von der Leyen’s unveiling of the European Democracy Shield,
a new strategy to step up the fight against foreign interference online,
including in elections.
“Democracy is the foundation of our freedom. Democracy is the foundation of our
prosperity. Democracy is the foundation of our security,” von der Leyen wrote on
social media.
The German politician had pitched the Democracy Shield idea in a campaign speech
at the Copenhagen Democracy Summit last year as she sought another term as
Commission president ahead of the 2024 European election.
The Commission president — head of the EU’s executive, though not literally the
“leader of the EU” — is proposed and voted on by the European Council,
comprising the EU’s 27 heads of state and government, for a five-year term. The
proposed candidate also has to win a vote among members of the European
Parliament.
After getting the required backing last year, von der Leyen survived three
motions of no confidence by factions in the Parliament in July and October this
year.
The centerpiece of the Democracy Shield strategy is the European Centre for
Democratic Resilience, which draws on expertise across current and aspiring EU
member countries to counter disinformation.
Other elements include guidance on how to use AI in elections or on using
influencers to help people understand EU rules, such as regulations on online
content or political advertising.
Musk, who played a brief but prominent role earlier this year as U.S. President
Donald Trump’s adviser after supporting him vigorously throughout the 2024
election campaign, has often used his platform to amplify controversial views on
democracy, free speech and political leadership around the world.