Brussels Edition: US deal crosses hurdle

EU lawmakers voted in favor of the EU-US trade deal today in Brussels, clearing a key hurdle

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. European lawmakers voted in favor of the EU-US trade deal today in Brussels, clearing a key hurdle in the implementation of an agreement struck in Turnbery, Scotland last summer. It's not the final step – the file will now go to member states for approval – but it's a significant milestone. Parliament had already delayed the vote amid alarm over President Donald Trump's threats toward Greenland and fears that the US could break the terms of the deal, for example by imposing new tariffs as a result of Section 301 investigations. Those threats haven't gone away. Today's debate in the parliament revealed some of the continuing skepticism about the original agreement, the trustworthiness of the US and Trump's intentions. While the parliament did include extra measures – for example a sunset clause if the US doesn't stick to its side of the deal – it's a gamble of sorts. Source: US Census Bureau, World Bank/US Census Bureau, World Bank. The European Commission, the EU's executive arm, has made no secret of the fact that it wanted the parliament to back the deal. "Our economic interests demand that we move forward. We must act in the best interest of our firms, our workers and our citizens," EU Commissioner Valdis Dombrovskis said at the start of the debate. The decision to proceed comes as Germany is drafting plans to hit US companies in the event of another clash with Trump. Officials in Berlin have started mapping vulnerabilities in US supply chains to identify points where Germany and its EU partners could apply pressure if and when they get drawn into another dispute with the White House, according to people familiar with the matter. As we report this morning, that could include targeting massive US tech firms with close ties to the White House, aiming for the AI investment boom that has helped drive US stocks to record highs this year or push up drug prices for American voters, a sensitive issue for Trump.   The next time Trump tries to push America's traditional allies into line, the German government intends to be better prepared. The Latest The EU opened an investigation today into Snap and escalated a probe into a number of pornography platforms as the bloc ramps up efforts to protect children online. NATO's European allies and Canada increased their defense spending nearly 20% for the second straight year in 2025, according to the military alliance's annual report published today. The Italian government is set to cut its economic growth forecast, reflecting a hit from the war in the Persian Gulf, possibly reducing it to as low as 0.5% for 2026 from a current 0.7%. Ukraine is struggling to secure fresh commitments from NATO allies to purchase US weapons for the country, with only a small handful of them paying for the bulk of the weapons, Ukrainian NATO Ambassador Alyona Getmanchuk told Bloomberg. Banca Monte dei Paschi di Siena removed CEO Luigi Lovaglio in an effort to end a bruising period of leadership turmoil. Seen and Heard on Bloomberg Canada wants to play a role in the current diplomacy involving the Middle East, its foreign minister Anita Anand told Bloomberg TV on the sidelines of the G-7 Foreign Ministers' meeting in France. She spoke with her US counterpart Marco Rubio yesterday. "I indicated that Canada wants to play a role in this diplomacy," she told Oliver Crook, noting the importance of "de-escalation and preservation of civilian life." Chart of the Day The Bank of France reduced its 2026 economic-growth forecast and lifted its inflation prediction as it registered the impact of surging energy prices caused by the Iran war. Still, the projections suggest less acute inflation than the ECB's estimates, envisaging consumer prices rise less than 2% next year even in the severe eventuality. For growth, the Bank of France's adverse scenario shows a larger drag this year but an alignment with the baseline forecast from 2027. Coming up Press conference following the Joint Expeditionary Force in Finland later today hosted by Finnish President Alexander Stubb G-7 Foreign Ministers press conference tonight Virtual meeting of Eurogroup finance ministers tomorrow Final Thought ZVS holding focuses on producing large-caliber ammunition. Photographer: Michaela Nagyidaiová/Bloomberg Slovakia, an auto industry powerhouse, is turning into a critical ammunition hub, making hundreds of thousands of shells a year. The Czechoslovak Group, led by billionaire Michal Strnad, aims to become Europe's biggest defense conglomerate, with its unit ZVS Holding AS playing a key role in the production of large-caliber ammunition. Defense minister Robert Kalinak predicts "a good 30 years of prosperity" for the sector that could potentially account for as much as 3% of the country's GDP. 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 |