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India, EU sign landmark free trade agreement to create 2 billion person market

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Indian Prime Minister Narendra Modi hailed the signing of a “landmark” free trade agreement between India and the EU on Tuesday, describing the pact as the “mother of all agreements” during his address at India Energy Week.

Modi noted that the agreement with the EU—which represents approximately 25% of global GDP and nearly one-third of global trade—will complement India’s existing deals with the United Kingdom and the European Free Trade Association.

The agreement will establish a market of 2 billion people at a time when commercial ties are being tested by escalating geopolitical tensions.

“I congratulate our colleagues from every sector, including textiles, jewelry, leather, and footwear,” Modi said. “This agreement will provide immense support to these industries.”

The European Commission characterized the deal as “the most ambitious trade opening India has ever granted to a partner.”

A cornerstone of the agreement is the reduction of tariffs on European automobiles from 110% to 10% within a quota of 250,000 vehicles. Meanwhile, tariffs on automotive parts are set to be phased out entirely over the next five to ten years.

The Commission further noted that tariffs of up to 44% on machinery—the EU’s primary export to India—along with 22% tariffs on chemicals and 11% on pharmaceuticals, will largely be eliminated within a decade.

Regarding agriculture and food products, most items were excluded from the negotiations, as previously reported by Euractiv. For instance, beef, poultry, rice, and sugar remain outside the scope of the deal, and the bloc will not export dairy products, reflecting India’s efforts to protect its domestic industry.

Nevertheless, the EU secured market access for processed food and beverage products.

Once the agreement enters into force, tariffs on wine will drop from 150% to 75%, with a gradual reduction to 20% over several years. Similarly, high tariffs on spirits will be cut to 40%, while beer tariffs will fall from 110% to 50%.

In return, the EU will provide enhanced access for Indian exports, including textiles, apparel, jewelry, chemicals, pharmaceuticals, and electronics.

Olive oil producers are expected to be among the biggest winners, with tariffs dropping from 45% to zero over five years. Bread and other bakery products will also be permitted to enter the market with zero tariffs.

At the same time, Indian negotiators sought to maintain protections for domestic manufacturers and mass-market segments. According to The Economic Times, budget-friendly electric vehicles, which are largely manufactured in India and dominated by domestic players, are expected to remain shielded from direct competition.

Trade talks between the two parties were relaunched in 2022, following a long gestation period due to “mutually sensitive” issues such as agriculture and the automotive sector.

For New Delhi, which has borne the brunt of punitive US tariffs, this agreement could provide a much-needed boost. Since Donald Trump imposed a 50% tariff on Indian goods in August of last year, India has been seeking alternative markets for its exports and signing trade deals with multiple nations.

This marks New Delhi’s fourth major trade agreement since the US—India’s largest export market and a vital trading partner—began imposing high tariffs. Over the past seven months, India has also signed trade pacts with the UK, Oman, and New Zealand.

According to European Commission data, the value of goods traded between India and the EU exceeded €120 billion (approximately $140 billion) in 2024, making the bloc New Delhi’s largest trading partner.

Machinery and equipment, chemicals, base metals, minerals, and textiles are India’s primary exports to the EU. In the year ending March 2025, India’s total trade in goods reached $136 billion.

India is the EU’s ninth-largest trading partner, accounting for 2.4% of the bloc’s total trade in goods in 2024. This figure remains significantly behind major partners such as the US (17.3%), China (14.6%), or the UK (10.1%).

The EU’s primary exports to India include machinery and equipment, transport equipment, and chemicals. According to data for the 2025 fiscal year, high-quality machinery was India’s largest import category from the EU, valued at $13 billion.

European Commission President Ursula von der Leyen stated at the World Economic Forum in Davos on January 20 that the bloc is committed to choosing “fair trade over tariffs, partnership over isolation, and sustainability over exploitation.”

Total Indian exports to the six major EU markets (the Netherlands, Germany, Italy, Spain, France, and Belgium) amounted to $43.8 billion in the nine-month period ending in December, while exports to the US alone reached $65.88 billion.

Experts suggest that while India’s agreement with the EU represents a significant milestone, it will not replace the India-US partnership.

In 2024, India’s trade surplus in goods with the US stood at $45.8 billion, while the figure for trade with the EU was considerably lower at $25.8 billion.

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Mutual accusations of blackmail and assault overshadow AfD state election congress in Germany

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The Alternative for Germany (AfD) state congress in North Rhine-Westphalia ended in chaos on Sunday.

During the selection of the 22nd position on the candidate list for next year’s state elections, delegates aligned with the far-right Bundestag member Matthias Helferich proposed more than 100 candidates. This move was reportedly designed to block the vote in the town of Marl, halting progress on the list to force negotiations for subsequent positions.

Earlier in the candidate selection process, supporters of State Co-Chairman and lead candidate Martin Vincentz, who represents the moderate wing of the party, had prevailed. The defeat of Zacharias Schalley—a figure close to Helferich—by a candidate from the Vincentz camp triggered significant discontent within the radical wing of the party. Representing approximately 40% of the delegates, Helferich’s supporters reportedly demanded strong representation in the next state parliamentary group.

During the congress, Helferich claimed that Bundestag member Knuth Meyer-Soltau, a member of the Vincentz camp, physically assaulted him. Speaking to the newspaper WELT on Sunday, the 37-year-old Helferich described the incident:

“Meyer-Soltau was passing by the row where I was sitting. He was arguing with another member. When he turned back, while I was sitting in my chair, he shouldered me and shouted, ‘Shut up, you idiot!'”

Helferich added: “I do not know if he wanted to knock me out of my chair. However, because he insulted me in anger, I cannot rule out the possibility that this was a deliberate attack.”

An email exchange sent to the federal executive board and state management revealed that Helferich filed a criminal complaint on Monday.

“Meyer-Soltau hit my chair and my body, either intentionally or through negligence”

In the complaint filed by Helferich, he stated: “Meyer-Soltau hit my chair and my upper body hard, either intentionally or through negligence; I was only able to avoid falling by holding onto the edge of the table.” The complaint also named two witnesses.

In his letter to the party leadership, Helferich wrote: “Since numerous similar incidents of electoral law significance occurred at the state election congress, I believe the duty to maintain party order falls to the Federal Executive Board.”

Meyer-Soltau, a 61-year-old lawyer like Helferich, denied the allegations. Speaking to WELT on Sunday, the lawmaker said: “I reject the accusation being made.”

Meyer-Soltau suggested that Helferich viewed him as a powerful opponent because he had previously acted as the negotiator for the state executive board in the party’s expulsion proceedings against Helferich before the Federal Arbitration Court. The party court recently rejected the expulsion request.

“It is clear that this situation has not had a positive impact on our relationship,” Meyer-Soltau said. “Mr. Helferich, having suffered a heavy defeat at the nomination meeting, is clearly seeking satisfaction through other means. I will hand the matter over to my lawyer and take legal action.”

A letter sent to Helferich by Meyer-Soltau’s lawyer, which was leaked to the press, stated: “My client has never insulted you or physically assaulted you.” The letter demanded that Helferich cease repeating the claim and sign a cease-and-desist declaration carrying a contractual penalty.

Additionally, Meyer-Soltau’s lawyer filed a criminal complaint with the Dortmund Prosecutor’s Office for defamation. The petition submitted to the prosecutor’s office stated: “The accusation of physical assault is highly defamatory, calculated to permanently damage my client’s public reputation, and socially discredit him.”

Allegations of blackmail made against delegates at the congress

Allegations of threats against delegates also emerged at the state congress in Marl. Helferich ran against Klaus Esser, a close associate of Vincentz, for the 13th position on the candidate list. Esser, who needed just one vote to be elected in the first round, only secured a majority in the second round of voting.

Following the announcement of the results, a delegate took the stage to claim that before the second round, a state executive board member from the Vincentz camp went to the rows of the Wuppertal district association and threatened that a state lawmaker from Wuppertal would be expelled from the parliamentary group if the necessary votes for Esser were not delivered. The delegate announced that a complaint would be filed regarding the matter.

A spokesperson for AfD Co-Leader Alice Weidel told the media outlet “The Pioneer”: “Weidel does not approve of this situation. Such things must not happen.”

Other allegations of threats were voiced through the hall microphones during the congress. One delegate claimed that a candidate had been threatened by a district councilor and a district chairman.

“He was told that if he did not withdraw his candidacy, he would have no future in this party. There are numerous witnesses who can confirm this,” the delegate asserted.

Another delegate reported that a young woman was pressured by a district chairman who asked whether she would “lend herself to this game and submit to blackmail,” warning her that the situation would have “consequences for her in the district association.”

Marco Vogt, the Deputy Chairman of the Düsseldorf AfD and an ally of Helferich, said during his candidacy speech that young members who participated in the list disruptions had been threatened by their employers present in the hall.

Another candidate, a municipal councilor from Würselen, stated that a district administrator from the Aachen region had issued an implicit threat, telling him he would make many enemies in his own association if he did not withdraw his candidacy.

Candidate Leon Biallawons directly targeted lawmaker Knuth Meyer-Soltau, saying: “I tell you clearly, dear Knuth, I will not allow myself to be threatened by you. Because, dear Knuth, it is not you but the grassroots who will decide who succeeds in this party, and the grassroots will assert their will in the long term.”

Meyer-Soltau declined to comment on these allegations, stating: “I do not wish to comment on such baseless claims.”

Other tactics were used to slow down the proceedings at Sunday’s congress. One delegate requested a 30-minute recess because “there is an ice cream truck outside,” though this request was rejected. The convention manager, Julian Flak, was heard calling out to a delegate: “Take that garden furniture outside immediately!”

A message shared on Saturday in a chat group close to Vincentz stated that the “self-proclaimed patriotic group” had threatened to completely block the congress. It was alleged that the core group led by Helferich planned to deliberately disrupt the flow of the congress to force their opponents to the negotiating table.

Weidel accused of undermining efforts in chat group

On Sunday, in the same chat group, it was written that the sabotage action was being coordinated by Federal Deputy Chairman Sven Tritschler and Helferich. The message claimed that Tritschler had discussed the move with “his boss Alice Merkel”—a reference to AfD leader Alice Weidel. “This is a clear operation of attrition. We will not bow to an Alice Merkel,” the message read.

By Monday night, the ballot for the 22nd list position contained the names of 81 candidates. Some individuals who announced their candidacies withdrew before speaking. The results are expected to be announced next weekend.

The North Rhine-Westphalia AfD association has allocated a total of four weekends for candidate selection meetings. With the party projected by public opinion polls to win between 30 and 40 seats in the state parliament, competition for the top spots on the list remains intense.

An article titled “AfD-NRW Grassroots Resist Cartel Partyization,” published Monday on a Telegram channel close to Helferich, described the events as a “heroic act” and an “impressive reaction of an alert, idealistic grassroots.” The mass candidacy process was characterized as a “combination of Carl Schmitt’s partisan theory with a democratic liberation move unprecedented in AfD history.”

The article argued that if lead candidate Vincentz wants to translate polling success into a strong election result, he must unify the party by granting Helferich’s supporters viable, electable positions on the list.

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EIB to unveil 15 billion euro tech initiative to scale European startups

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The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.

For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.

“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.

Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.

Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.

The bank is now expanding the program with a new phase nearly four times the size of the original.

Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.

This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.

As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.

In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.

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Germany to purchase US Tomahawk missiles to build own long-range strike capability

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Germany will purchase Tomahawk cruise missiles from the United States and deploy them on German territory, Chancellor Friedrich Merz announced on Thursday.

The move marks a shift away from planned US deployments and toward Germany establishing its own long-range strike capability.

Merz told lawmakers that he finalized the agreement with the US government during the NATO summit in Ankara, adding that the talks held on Tuesday and Wednesday had exceeded his expectations.

“While we close a critical strategic gap in our defense, we are also working to develop our own European systems and deploy them in Europe,” the Chancellor said.

According to German government sources, Washington committed in a letter of intent signed on Tuesday to approve Germany’s acquisition of Tomahawk missiles and their land-based Typhon launchers in August.

The number of missiles and launchers Germany plans to purchase was not disclosed because the information is classified.

The planned acquisition appears aligned with US President Donald Trump’s pressure on European allies to cover their own security costs, such as by purchasing US weapons.

The fate of the Tomahawk procurement had become uncertain after Trump announced in May that he would reduce the US military presence in Germany.

That development was seen as a cancellation of a plan made under the previous administration to deploy a US battalion equipped with long-range Tomahawk missiles to Germany.

That original plan was designed as a temporary solution to serve as a strong deterrent against Russia while Europeans developed their own versions of such weapons.

Germany produces its own cruise missile, the Taurus, but its range of approximately 311 miles is three to five times shorter than that of the Tomahawk missiles.

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