Brussels Edition: Seeking new commercial partners

EU trade ministers are gathering in Cyprus amid a broader push to expand global business ties.

Read in browser

Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you're signed up. With Donald Trump-induced ructions still disrupting global commerce, EU trade ministers are gathering today in Cyprus as the bloc seeks new trading partnerships as part of a broader effort to pare back reliance on the US and China. Speaking this morning in Nicosia, Trade Commissioner Maros Sefcovic gave some insights into the state of play. The EU is "struggling at the moment a little bit" in trade talks with the United Arab Emirates, Sefcovic said. At the same time, he insisted the "political will is there" to conclude a deal and see how it could function as a model for regional agreement with the Gulf Cooperation Council. Brussels opened negotiations with the UAE on a free-trade agreement in May. It's also eyeing the gulf country as a potential source of additional energy supplies given its move away from Russian fossil fuels and US LNG. EU-China relations will feature on the agenda of the Nicosia meeting, while ministers will also hear tomorrow from Bernd Lange, the top trade official in the European Parliament. The legislature's trade committee is due to hold a key vote on the EU-US trade deal next week. The body this month called for a sunset clause to be included in the deal, as well as a demand that the US lowers steel and aluminum tariffs within six months. WATCH: US Trade Representative Jamieson Greer discusses ties with the EU and tensions over Greenland in an interview last month with Bloomberg TV at the World Economic Forum in Davos, Switzerland. A 50% tariff on imports of the two metals (and derivative products) has been a source of deepening frustration, particularly among German exporters, in the months since the signing of the trade pact by European Commission President Ursula von der Leyen and Trump in July. Signs of a breakthrough emerged last week, with US Trade Representative Jamieson Greer signaling the Trump administration is open to changing how its tariffs on steel and aluminum are enforced, though few details were provided. EU trade ministers will also discuss the bloc's position on reform of the World Trade Organization ahead of a key WTO ministerial meeting in Cameroon next month. WTO Director-General Ngozi Okonjo-Iweala is due to address ministers over dinner this evening. Ngozi Okonjo-Iweala. Photographer: Aaron Schwartz/Bloomberg The Latest Von der Leyen is planning to visit Greenland in March following the recent clash over control of the territory with Trump. The ECB's Isabel Schnabel told us she's committed to serving out her eight-year term on the central bank's Executive Board. Italy is preparing a sweeping overhaul of its electricity market that would strip carbon costs from power bills, a move that has sent shock waves through energy markets and driven a sharp selloff in forward prices. Airbus faulted one of its main engine suppliers, Pratt & Whitney, for failing to deliver a key component in sufficient quantities, forcing the planemaker to pare back its ambitious production goals. Russian forces fighting in Ukraine are facing communications problem from the dual blow of restricted access to Elon Musk's Starlink mobile internet system and a Kremlin crackdown on the Telegram messenger service. Leaders from Norway and Iceland expressed skepticism over ambitions to seize vessels linked to Russia's so-called shadow fleet, signaling that proposals among allies to tighten restrictions on the Kremlin's war economy face limits. Seen and Heard on Bloomberg Speaking to Bloomberg TV in his first interview in the role, Renault CEO François Provost said: "What I want to do during the next five years is really to deliver a very steady and robust performance in a difficult environment." The French automaker reported today that it expects profitability to decline this year as it rolls out lower-priced electric models and grapples with rising competition in Europe. Chart of the Day France's strategy to reduce its budget deficit this year remains "very uncertain," even after the government set less ambitious targets, according to the country's audit court. The French parliament adopted a delayed fiscal plan this month that aims to trim the shortfall to 5% of economic output from an expected 5.4% in 2025. Coming up Euro-zone consumer confidence published this afternoon EU trade ministers convene this evening and tomorrow in Cyprus E5 defense ministers meets tomorrow in Krakow, Poland German Chancellor Friedrich Merz speaks at CDU party congress in Stuttgart tomorrow Final Thought Andrew Mountbatten-Windsor. Photographer: Kirsty Wigglesworth/WPA Pool/Getty Images Andrew Mountbatten-Windsor, the brother of Britain's King Charles III, has been arrested on suspicion of misconduct in public office after further details emerged of his relationship with convicted sex offender Jeffrey Epstein. Charles issued a statement promising Buckingham Palace's "full and wholehearted support and co-operation" with the investigating authorities. "Let me state clearly: the law must take its course," Charles said. The arrest of Andrew, who turned 66 today, heaps further embarrassment on the royal family following years of lurid allegations about his ties with Epstein that the former prince has consistently denied. Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |