Brussels Edition: Trump turns on NATO

EU responds to Trump threatening alliance if members don't help reopen key waterway.

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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. US President Donald Trump's ominous warning that NATO faces "a very bad" future if allies do not help reopen the Strait of Hormuz is looming large over today's gathering of EU foreign ministers in Brussels. Participants chose their words carefully as they arrived for the meeting, which comes just three days before EU leaders arrive in the Belgian capital for a two-day summit. "If there is a request via NATO to discuss the issue, we will of course consider it," Polish Foreign Minister Radosław Sikorski told reporters. Estonia's Margus Tsahkna said the bloc is "ready for discussions." Luxembourg's Xavier Bettel was among those striking a more defiant tone: "NATO is there for the case where one of the members of NATO is attacked, and I want to remind that none of us has been directly attacked," he said. Radosław Sikorski, Poland's foreign minister. Photographer: Neil Hall/EPA/Bloomberg Trump's linking of help to unblock the Strait — a key route for the Middle East's energy exports — and US support for NATO has unnerved America's European allies. While NATO said in a statement that individual members are talking with the US about what they can do, some of Europe's biggest powers have made clear that they won't get drawn into the conflict. German Defense Minister Boris Pistorius demonstrated his characteristic bluntness following talks today in Berlin with his Latvian counterpart. "I wonder what is Trump expecting from a handful of European frigates which the mighty US Navy cannot achieve there on its own," Pistorius, who is Germany's most popular politician by some distance, told reporters. "It is not our war. We did not start it," added the Social Democrat. "We want diplomatic solutions and a swift end. But sending further warships to the region would certainly not contribute to that." Meanwhile, a proposal for the EU's Red Sea naval operation, Aspides, being redirected to the Strait of Hormuz was given short shrift at today's foreign-affairs council. EU Foreign Policy chief Kaja Kallas had touted the idea of expanding the mandate of the mission, which was launched in 2024 after the Houthis attacked shipping vessels, to cover the Strait of Hormuz. But several countries, including Germany, Italy, Greece and Spain, oppose the idea. The Latest Germany dismissed a potential hostile takeover of Commerzbank by UniCredit as "unacceptable" after the Italian lender made a €35 billion ($40 billion) bid for the Frankfurt-based bank. EU energy ministers meeting today in Brussels are discussing ways to curb energy prices stoked by the Middle East conflict. The far right improved its showing in the first round of France's municipal elections yesterday, signaling momentum for Marine Le Pen's National Rally ahead of next week's runoffs and the 2027 presidential race. Spanish Prime Minister Pedro Sánchez's Socialists posted unexpected gains in a regional ballot that halted what had seemed to be an unstoppable rise for the far right. Romanian Prime Minister Ilie Bolojan faced renewed pressure as the largest party in the ruling coalition blasted his leadership as "unacceptable" days before a critical budget vote. Seen and Heard on Bloomberg Irish Finance Minister Simon Harris told Bloomberg TV that the risk of a surge in inflation from the spike in energy prices is a reminder that Europe needs to accelerate efforts to become more energy independent. He also expressed confidence that a long-awaited European savings and investments union is close to getting over the line after years of sparring between member states. "I genuinely believe we can get it done in 2026," he said, ahead of Ireland's chairmanship of the EU council in the second half of this year. Chart of the Day The world's top central banks convene this week facing a renewed inflation threat from the war in Iran and the possibility that they'll be forced to delay interest-rate cuts — or in some cases consider hikes. Changes aren't imminent: The Federal Reserve, the European Central Bank and the Bank of England are all expected to keep borrowing costs steady as they assess how much surging energy costs will feed through to consumer prices and growth. Coming up Press conference this afternoon following EU Foreign Ministers meeting German Chancellor Friedrich Merz and Dutch Prime Minister Rob Jetten hold news conference later this afternoon EU Affairs Ministers meet tomorrow in Brussels Final Thought Italian Prime Minister Giorgia Meloni has long pitched nuclear energy as a cure for Italy's wilting economy. Now her government is plotting how to actually resurrect the banned technology. Almost 40 years after Italy shuttered its last nuclear reactor, the prime minister's team is consulting experts and holding discussions on how to restart atomic-energy production, sources say. Meloni during an interview in Rome last month. Photographer: Alessia Pierdomenico/Bloomberg 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 |