Europe
EU-US trade talks stall as Brussels resists Trump’s 25% auto tariff threat
Negotiations between the European Union and the United States over a contentious bilateral trade agreement ended late Wednesday without a final settlement, as the European Parliament continues to withhold formal ratification amid escalating tensions over US tariff threats and geopolitical instability.
The European Parliament (EP) has yet to grant official approval to the pact. A significant bloc of lawmakers is now demanding the insertion of stringent safeguard clauses, citing the US administration’s unilateral decision to increase certain tariffs in violation of the agreement’s spirit. Concerns have been further exacerbated by threats regarding the annexation of Greenland, which MEPs argue have called the foundations of transatlantic cooperation into question.
US President Donald Trump has issued a high-stakes ultimatum, threatening to raise tariffs on European automotive imports from 15% to 25% if the trade agreement is not implemented immediately.
Internal accounts suggest the framework of the deal was effectively dictated by the United States last summer without substantive negotiations, despite fierce opposition from France. The drive to finalize the pact has been largely spearheaded by the German government under Chancellor Friedrich Merz, whose administration is seeking to protect a domestic automotive industry currently grappling with a severe structural crisis.
The latest round of “trilogue” negotiations—involving the European Parliament, member state governments, and the European Commission—concluded in the early hours of Thursday morning without a breakthrough. While reports from the meeting indicate that the parties narrowed their differences on several technical points, the European Parliament remains firm on its demand for protectionist safeguards, despite intense pressure from Berlin.
Negotiations are scheduled to resume on May 19.
Strategic dependency and the “New Realpolitik”
A report prepared by Sabine Weyand, then the European Commission’s Director-General for Trade, provides a detailed account of the events leading to the preliminary customs agreement reached on July 27, 2025, between Commission President Ursula von der Leyen and President Trump.
Weyand, a veteran negotiator known for her rigorous approach, noted in late August 2025 that the process lacked the hallmarks of a traditional negotiation. “There was no exchange of demands or offers,” Weyand stated, emphasizing that the European side operated under extreme duress.
The report highlights that the EU’s total security dependence on the US, driven by the ongoing war in Ukraine, left Brussels with little leverage. Weyand argued that failing to concede to the Trump administration’s demands—or attempting to implement counter-measures—carried the unacceptable risk of Washington “calling the security partnership into question.”
According to Weyand, the Commission made a strategic calculation to “secure a general political package.” Following the signing of the agreement at President Trump’s Turnberry golf resort in Scotland, Weyand reportedly characterized the lopsided arrangement as “simply the Realpolitik of a new era.”
Alignment against the WTO
The agreement has drawn sharp criticism from economic experts who argue that Brussels has aligned itself with Washington’s efforts to bypass international trade norms. Gabriel Felbermayr, a member of the German Council of Economic Experts, noted that the deal constitutes a clear violation of World Trade Organization (WTO) law.
Under the WTO framework, the US had committed to a 2.5% general tariff on automobile imports. By agreeing to a bilateral deal that circumvents these multilateral obligations, Felbermayr argues the EU has become an “accomplice in an attack on the WTO.”
Furthermore, this alignment appears to have yielded few tangible benefits for the EU. Since the initial signing, the US has progressively expanded steel and aluminum tariffs to cover additional product categories. Felbermayr warned that if the EU fulfills its obligation to reduce industrial tariffs to zero while the US fails to reciprocate, Brussels risks being left in a position of extreme disadvantage.
Dominance of German automotive interests
Ursula von der Leyen’s initial endorsement of the tariff agreement last summer sparked significant internal friction within the bloc. France led the opposition, with Prime Minister François Bayrou denouncing the deal as a “capitulation” to Washington.
French Foreign Trade Minister Laurent Saint-Martin has insisted that “the final word has not yet been spoken,” warning that the EU’s status as a global economic power is at stake. However, these protests were largely sidelined by the German government’s support for von der Leyen.
While the deal is viewed as potentially harmful to other sectors—such as the chemical industry, which faces competition from duty-free US imports—the German automotive sector has lobbied aggressively for its adoption. The US remains the most critical export market for German carmakers.
Industry sources argue that a rapid reduction of US tariffs from 25% back to 15% is an existential priority. Additionally, the sector has a vested interest in avoiding retaliatory tariffs, as German manufacturers frequently import vehicles into the EU from their own production facilities located within the US.
Parliamentary resistance in Brussels
Despite the industrial pressure, the European Parliament has emerged as a major hurdle. Ratification votes have been suspended twice on short notice: first in January following the Greenland annexation threats, and again in February after a US Supreme Court ruling found a majority of the Trump administration’s tariffs to be unlawful.
On March 26, the Parliament finally granted conditional approval, but with strict stipulations. MEPs are demanding that EU tariff waivers on US goods only take effect once Washington has fully complied with all provisions of the agreement.
To date, Washington has continued to raise tariffs on goods with even minimal steel and aluminum content, despite such moves being outside the scope of the pact.
The European Parliament is also seeking a mechanism to suspend the agreement if the US government employs economic pressure to extract political concessions, or if specific US imports flood European markets. Under the Parliament’s proposal, the extensive duty-free access granted to the US would be subject to a formal review by March 31, 2028, with the possibility of immediate revocation if it is found to cause disproportionate harm to EU industries.
Industry pressure on the Chancellery
In the wake of Trump’s latest threat to hike auto tariffs to 25%, the German automotive lobby has intensified its pressure on Brussels. Chancellor Merz has echoed these calls, urging the EU to implement the agreement as demanded by Washington without further delay or conditionality.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), has demanded the unconditional fulfillment of the July 2025 pact, stating that the EU must “finally implement its part of the agreement.”
Chancellor Merz has criticized the European Parliament’s stance, accusing the European side of “constantly introducing new conditions.” According to the Chancellor, “the Americans are ready; the Europeans are not,” as he continues to push for a resolution at the earliest possible date.
Europe
Morawiecki launches Rozwój Plus movement following high-profile split from Poland’s PiS
The first major event organized by the political circle of Mateusz Morawiecki, following his split from Law and Justice (PiS), is set to take place in Warsaw’s Praga district.
The gathering comes just days after the former prime minister and dozens of his allies severed ties with the national-conservative PiS.
The move also led to Morawiecki’s resignation from the presidency of the European Conservatives and Reformists (ECR) group in the European Parliament.
Organized by his Rozwój Plus (Development Plus) movement, the conference—dubbed “Morawiecki’s barbecue” due to the prominent inclusion of charcoal-grilled kiełbasa sausages—will mark a significant moment in Polish conservative politics.
The event will bring together key figures from the emerging movement alongside featured guests, including former world chess champion Garry Kasparov and General Rajmund Andrzejczak, the former chief of the General Staff of the Polish Armed Forces.
The gathering will offer Morawiecki’s camp an opportunity to present a political vision distinct from that of the current PiS leadership.
“Poles care about the fight for a strong Poland, their wallets, their jobs, housing, development, identity, culture, the Christian faith, and the defense of the cross hanging in the Sejm,” Morawiecki said this week. “These are our principles; this is our faith.”
Discussions will focus on demographics, security, and the politics of memory—topics that have grown increasingly sensitive amid recent tensions in Polish-Ukrainian relations.
While Morawiecki describes Rozwój Plus as an “expert group and think tank,” its political ambitions are becoming increasingly clear.
A new parliamentary group established on Wednesday brings together 40 deputies and one senator, providing his allies with an official platform in parliament and a base from which to challenge PiS.
“This is a threat to us,” Mateusz Kurzejewski, a PiS politician and spokesperson for Przemysław Czarnek’s prime ministerial campaign, told Euractiv. “After all, this is an initiative that reduces our chances of victory, though it does not eliminate them entirely. Therefore, we will continue to work hard.”
However, whether Morawiecki can successfully reshape the Polish right remains uncertain.
An SW Research poll commissioned by Onet revealed that 32.9% of respondents would consider voting for a party led by the former prime minister.
The strongest potential support comes from voters who already align with the right. Among respondents currently close to PiS, 14% said they would consider supporting Morawiecki, while 7.1% of those aligned with the further-right Confederation held the same view.
The initiative could also draw limited support from the ruling camp. Approximately 7.4% of voters currently supporting Prime Minister Donald Tusk’s pro-EU Civic Coalition, The Left, Poland 2050, or the Polish People’s Party indicated they would not rule out voting for a party led by Morawiecki.
Sources within Tusk’s government believe the split in PiS could benefit the ruling coalition in the short term.
“Particularly because this situation helps soften the impact of the hospital scandal,” one source told Euractiv. “Today, no one is talking about it anymore, and fortunately, no new statements have been made.”
The controversy revolves around allegations that a Warsaw hospital operated a preferential admission system for politicians belonging to the governing Civic Coalition, allowing them to enter a VIP lounge and receive medical treatment ahead of other patients.
Questions have also been raised regarding the salary of the doctor heading the hospital’s emergency department, who is reportedly linked to Tusk’s party.
Yet the same source warned that Morawiecki’s departure may have little long-term impact on the Civic Coalition.
They argued that PiS possesses a fiercely loyal electorate, whereas enthusiasm for Rozwój Plus could prove temporary.
“Look at the IBRiS poll for Rzeczpospolita,” another source said. “70% of PiS voters say they are voting for their ideal party. This core electorate accounts for about 70% of PiS’s current voters.”
A similar perspective prevails within PiS, where politicians contend that Morawiecki is chasing a voter base that may be too small to sustain a new party.
Speaking to Euractiv, Kurzejewski said:
“People do not want to vote for politicians who have been excluded from PiS. As for Law and Justice voters, they do not want to vote for those who betrayed them. That is why this project means Rozwój Plus will fail to clear the electoral threshold.”
Today’s event will therefore serve as an early test of whether Morawiecki can translate curiosity and institutional support into lasting political clout—or whether his departure will become merely another short-lived fracture on Poland’s crowded right wing.
Europe
Ceuta migration crisis sparks diplomatic row as Italy demands Spain’s suspension from Schengen
An influx of thousands of migrants entering Spain from neighboring Morocco has plunged the autonomous enclave of Ceuta into chaos since Wednesday, prompting fresh backlash against Prime Minister Pedro Sánchez’s immigration policies.
Local authorities warned on Wednesday that an increasing number of migrants were reaching Ceuta by sea.
Juan Jesús Vivas, the president of Ceuta, told reporters that the situation constituted “an absolute humanitarian and social emergency” and demanded that the central government take action.
The situation escalated further on Thursday as thousands of people entered Ceuta by land and sea, overwhelming reception centers.
Videos shared online showed individuals using wetsuits and life jackets to swim to shore.
In a statement posted Thursday on X, Sánchez announced that he was working with Moroccan authorities to restore order as quickly as possible and promised an immediate response.
The border chaos erupted just weeks after the Spanish Supreme Court issued a ruling preventing the direct deportation of migrants arriving by sea.
Sánchez’s political rivals laid the blame for the crisis directly on the prime minister. Santiago Abascal, leader of the right-wing Vox party, characterized the events as an “invasion,” while Alberto Núñez Feijóo, leader of the center-right People’s Party (PP), was also among those condemning the prime minister.
The developments drew additional criticism from anti-immigration figures across Europe, including Alice Weidel, co-leader of Alternative for Germany (AfD), and Manfred Weber, chairman of the European People’s Party (EPP), the largest group in the European Parliament.
“This proves one thing: the Migration Pact and return regulations must be put into force today, not tomorrow. Furthermore, Frontex must be strengthened,” Weber wrote.
Tensions have remained high in Spain since the Sánchez administration launched a program enabling undocumented migrants to apply for legal status and remain in the country. More than one million people have applied under the scheme.
This represents the most severe border crisis to hit Ceuta since 2021, when at least 8,000 people entered the territory from Morocco.
The autonomous Spanish cities of Ceuta and Melilla are the only EU territories sharing a land border with Africa.
Italian leaders demand Spain’s expulsion from Schengen
Meanwhile, the fiercest reaction to the migration crisis in Spain emerged from Italy. Top Italian politicians demanded that Spain be expelled from the Schengen Area as tensions continued to escalate.
Italian Prime Minister Giorgia Meloni said in a statement on X: “The images coming from Ceuta are shocking and demonstrate once again that uncontrolled illegal migration poses a real threat to the security of Europe’s borders.”
Meloni added that Italy was prepared to act, “including through extraordinary measures,” to protect its borders and guarantee the safety of its citizens.
Together with Deputy Prime Minister Matteo Salvini and Foreign Minister Antonio Tajani—the most senior ministers representing parties in the Italian right-wing coalition—Meloni demanded the suspension of the Schengen Agreement or the exclusion of Spain from the border-free zone.
Under the accord, individuals can travel freely between 29 signatory European countries.
However, several member states have reinstated checks at certain borders, as permitted under the agreement, citing migration risks.
Italy had previously temporarily reintroduced controls on its border with Slovenia to prevent smuggling and terrorism.
Tajani went beyond calling for Spain’s exclusion from Schengen, attributing responsibility for the events in Ceuta to the immigration policies of Spanish Prime Minister Pedro Sánchez, who had promised to legalize hundreds of thousands of undocumented migrants.
The minister characterized the policy as “profoundly wrong” and claimed it provided “an incentive for human trafficking.”
The remarks provoked a sharp reaction from Spanish Foreign Minister José Manuel Albares, who summoned the Italian ambassador to account for Tajani’s statements.
Replying to Tajani on X, the Spanish minister wrote: “This message is unbefitting the foreign minister of a partner and friendly country from whom we expect European solidarity, not partisan demagogy.”
Separately, European Commissioner for Migration Magnus Brunner, who is also an EPP member, stated that the European Commission supports Spain in protecting the integrity of its borders, including Ceuta, and is in contact with Spanish Interior Minister Fernando Grande-Marlaska regarding the matter.
A spokesperson stated that the Commission welcomed “the close cooperation established between Morocco and Spain to combat these migratory flows and to ensure the swift return of individuals who entered Ceuta illegally, in accordance with applicable rules.”
“When it comes to our cooperation with partner countries, Morocco is a key and reliable partner for the EU. In recent years, we have intensified our cooperation in the areas of migration and border management, as well as the fight against smuggling. We are currently working to turn our relations into a comprehensive and strategic partnership,” the spokesperson added.
Europe
Rome’s hesitation over SAFE defense allocation draws frustration across EU
Italy is delaying the execution of a €14.9 billion loan agreement under the European Union’s SAFE defense program, a hesitation that is preventing other member states from accessing unallocated funds.
The Italian government has failed to finalize the exact amount it intends to borrow due to an ongoing energy crisis and internal political debate, effectively holding other European nations “hostage” ahead of a year-end deadline for fund redistribution, according to a report by Euronews.
Rome had previously requested €14.9 billion in loans—an application that was swiftly approved by both the European Commission and the Council of the European Union. However, the administration has yet to issue a final decision regarding the exact amount it will draw down.
Italian Foreign Minister Antonio Tajani stated this week that his country has “reserved” the full €14.9 billion as a maximum threshold.
Tajani noted that the government will only determine the final loan volume toward the end of the year, adding that he expects the eventual figure to range between €6 billion and €9 billion.
Eastern bloc frustrates over indecision
Rome’s reluctance is causing growing irritation across Europe, Euronews reported. While 17 EU member states have completed their formal agreements with the European Commission, they remain unable to access unclaimed funds because of Italy’s position.
Eastern flank countries, including Poland and Lithuania, are facing particular constraints as they seek additional resources beyond their initial allocations.
Under SAFE framework regulations, all unspent resources must be redistributed by the end of the year. Euronews reported that if Italy continues to delay, the European Commission could formally restrict Rome’s application in September, opening the remaining pool of approximately €10 billion to applications from other member states.
The Security Action for Europe (SAFE) operates as an EU financing mechanism designed to provide low-interest loans to help member state governments bridge gaps in their military capabilities and maintain continued support for Ukraine.
Approved by EU ambassadors in May last year to support the bloc’s rearmament, the SAFE loan facility has a total capacity of €150 billion.
The program forms part of the broader €800 billion “ReArm Europe” initiative announced by the European Commission in March.
Energy crisis and domestic politics stall progress
Italy’s cautious approach stems from a combination of domestic political pressures and economic factors. The country is contending with the impact of rising energy costs linked to the closure of the Strait of Hormuz, leading the Italian government to request fiscal flexibility from the EU to handle energy expenditures.
Concurrently, Italy’s ruling coalition—comprising Fratelli d’Italia (Brothers of Italy), Lega (League), and Forza Italia—faces intensifying pressure from its far-right wing, which has criticized increased defense spending ahead of upcoming elections. Italy must hold its next parliamentary elections no later than Dec. 22, 2027.
Euronews previously reported in May that despite reserving €14.9 billion under the SAFE program, Rome subsequently decided to request only €4 billion to €5 billion to cover existing signed contracts.
Prime Minister Giorgia Meloni and Foreign Minister Tajani justified the move by emphasizing the need to prioritize the energy crisis. Rome missed the deadline to submit its SAFE projects after requesting budget flexibility from Brussels for energy spending.
“We cannot tell our citizens that there is only money for defense,” Meloni said regarding the situation.
Italian daily La Repubblica also reported persistent disagreements between Meloni and other EU leaders concerning Ukraine. At the end of June, Germany’s Frankfurter Allgemeine Zeitung (FAZ) reported that a draft text intended for consensus at the NATO Summit in Ankara envisioned maintaining annual support for Kyiv at €70 billion through 2027, matching the 2026 commitment level.
However, Italy withheld its approval for the draft, objecting to long-term financial commitments of that scale for Kyiv.
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