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Merz urges Brussels to secure a US trade deal within days

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German Chancellor Friedrich Merz is demanding that Brussels sign a trade deal with the US within days.

Bringing the issue to the agenda of today’s EU leaders’ summit, Merz described the European Commission’s negotiating strategy this week as “too complex.”

Calling for greater urgency and focus in negotiations with the US president, Merz said he would convey this demand to other EU leaders, alongside Emmanuel Macron and Giorgia Meloni.

The leaders are eagerly awaiting an update from the EU’s executive body during dinner on its talks with the Trump administration.

Concerns are growing that if Brussels and Washington fail to reach an agreement, “reciprocal” 50% tariffs will be imposed on all goods starting July 9.

The bloc, which had previously dismissed the recent UK-US trade deal—a pact that imposed a 10% baseline tariff while offering some relief for car and steel exports—is now coming to terms with the reality that securing a better outcome will be challenging.

“I still hope that a trading power like the EU, with its 450 million people, will have more leverage than the UK,” a senior EU diplomat said on Wednesday.

The German chancellor stated that the priority must be to protect Europe’s key industries—particularly Germany’s automotive, manufacturing, semiconductor, pharmaceutical, steel, and aluminum sectors—from the sector-specific tariffs that Trump has either imposed or threatened to impose.

However, Trump is heavily reliant on these tariffs, having implemented the highest rates since the Great Depression of the 1930s to compel manufacturers to move production to the US and close the nation’s trillion-dollar trade deficit.

The US trade deficit with the 27 EU member states reached a total of $232 billion in 2025, accounting for approximately 19% of the total figure.

Underpinning Merz’s demands is a persistent concern that Brussels might establish a broad framework centered on a flat 10% tariff for most common goods, rather than isolating sectoral tariffs on items like cars, which he argues harms German exporters.

Another EU diplomat noted that keeping a broad-based tariff in place was “not a task we gave the European Commission,” adding, “We hope the Commission will try to find a solution for the most at-risk sectors.”

Merz’s call to “get the job done” faces two primary obstacles. First, the EU negotiating team has warned that Washington will likely offer only minor concessions, such as limited tariff reductions tied to restrictive quotas, after which full tariff rates would apply.

This is a far cry from the zero-tariff agreement Merz had initially hoped to achieve and closely resembles the UK deal, the only one struck with Trump so far.

Meanwhile, negotiations with the US on Germany’s biggest demand—automobiles—are proving particularly difficult.

Merz and German automakers are pushing for a mechanism that would allow them to offset their vehicle imports into the US with models they export from their American production facilities.

Economy Minister Katharina Reiche presented such a proposal during her visit to the US earlier this month. Both BMW and Mercedes-Benz operate large factories in the US that produce certain models for global export. However, considering the EU exports over 750,000 vehicles to the US annually, it remains unclear how much relief a limited quota agreement would provide to car manufacturers if Trump rejects this proposal.

Brussels, on the other hand, is hopeful that Trump’s long-standing desire for the EU to align with US automotive regulations will serve as a strong enough bargaining chip to ease the pressure on the auto sector.

In a scoping paper sent to member states in May, the Commission revealed it had offered to align with US regulations on autonomous vehicles. This is seen as a major concession, especially after similar discussions on automotive reciprocity led to the collapse of a transatlantic trade deal a decade ago.

Europe

EU rejects US proposal to resume Russian gas flows through Ukraine

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The European Commission has rejected a peace plan proposal from the US administration that entails resuming Russian natural gas purchases via Ukraine.

Commission spokesperson Paula Pinho stressed that Brussels has not changed its stance.

Pinho recalled that European Commission President Ursula von der Leyen had previously stated clearly that no restrictions on Russia would be lifted until the conflict comes to an absolute end.

The New York Times reported that the US president’s new peace proposal includes Europe returning to large-scale Russian gas purchases through Ukraine.

According to the report, Special Envoy Steve Witkoff and Jared Kushner raised the matter during talks in Kyiv last month with Ukrainian and European officials, including Ukrainian President Volodymyr Zelenskyy.

Sources contacted by the newspaper noted that some European and Ukrainian officials believe Washington would seek to secure a share of Russian gas exports.

Under this plan, the objective is to channel a share of the profits to American companies or the US government.

Russian President Vladimir Putin had said Moscow was ready to work on supplying fuel to European nations, but noted that a signal must come from the other side.

Putin stated that Moscow must evaluate the feasibility and necessity of fuel flows to the Western market, adding that they would not wait for Europe to shut the door ostentatiously on energy supplies.

Kremlin spokesperson Dmitry Peskov remarked that European nations rejecting Russian gas would make them dependent on the US and deprive them of the ability to diversify their supply sources.

Peskov noted that the US sells gas at very high prices and that if European nations pay more for energy, their industries will suffer.

The EU plans to halt liquefied natural gas imports from Russia entirely by 1 January 2027 and pipeline gas by 30 September 2027.

Von der Leyen had previously announced that the bloc would reduce Russian gas imports to zero by the end of 2027.

Russia halted gas flows to Europe via Ukraine as of 1 January 2025, when the five-year contract between Gazprom and Naftogaz of Ukraine expired.

Putin had stated that Kyiv refused to extend the transit agreement. Following the closure of the Ukrainian route, the TurkStream pipeline remained the only operational corridor carrying Russian pipeline gas to Europe.

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Serbian prosecutor in Trump Tower inquiry targeted by Israeli spyware

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A prosecutor investigating corruption allegations surrounding a real estate project linked to US President Donald Trump in Serbia was targeted with spyware, a new investigation has revealed.

The findings, published by the University of Toronto’s Citizen Lab alongside the Serbia-based digital rights group SHARE Foundation, showed that Rade Bajić, who served at the Prosecutor’s Office for Organized Crime, was selected as a target.

Bajić became a target of the Pegasus spyware developed by Israel-based NSO Group after he publicly spoke out about political interference and abuses of power.

The prosecutor stated that on 13 August, he received a warning alert from Apple cautioning him against state-sponsored or mercenary spyware attacks.

Project cancelled, but investigation and pressure continue

The probe centres on a plan to transform the historic complex in Belgrade that housed the former Yugoslav Ministry of Defence headquarters into a luxury Trump Tower skyscraper.

Linked to US President Trump’s son-in-law Jared Kushner, the real estate development drew fierce backlash amid political pressure disputes and allegations that the site’s protected heritage status had been unlawfully revoked.

The investment firm founded by Kushner announced late last year that it was pulling out of the project, citing respect for the Serbian public and the city of Belgrade.

Recalling his investigation into claims that senior government officials had improperly lifted the historic military complex’s protected status, former prosecutor Bajić said: “In my opinion, my role in this case was the sole reason for the illegal spyware attack.”

Target list widens to university and judicial figures

The spyware scandal in Serbia has widened, sweeping in political opposition figures, civil society, and academic circles.

It was also confirmed that an iPhone belonging to University of Belgrade Rector Vladan Đokić was infiltrated by Pegasus spyware.

Đokić, who refused to back the government’s crackdowns on student demonstrations, has become one of the prominent figures of the protest movement.

Police raided his office on 31 March, seizing his computers and servers. Đokić had also been touted as a likely leader for a student-backed opposition list ahead of early general elections scheduled for Sunday.

Shortly before the report was published, a pro-government tabloid released audio recordings allegedly capturing Đokić discussing his political ambitions, putting him directly in the crosshairs.

While the source of the recordings remained undisclosed, Đokić stressed that the breach of his phone represented a grave assault on his personal privacy, safety, and the dignity of the rector’s office, demanding that those responsible be punished.

State institutions silent on allegations

Speaking to Politico, SHARE Foundation policy advisor Andrijana Ristić noted that surveillance operations had spread from civil society and journalists to student activists, politicians, and finally to members of academia and the judiciary.

Ristić stated that the lack of state action despite formal criminal complaints has fuelled this escalation.

Citizen Lab senior researcher John Scott-Railton emphasized that technology from NSO Group, which claims to turn over a new leaf every time an abuse is uncovered, is being deployed directly for repression.

Scott-Railton pointed out that targeting individuals who defend freedom against corruption was no coincidence.

The Serbian Ministry of Internal Affairs left questions unanswered, though officials had previously denied allegations of cyber espionage.

NSO Group, which maintains that it sells its products exclusively to governments and was blacklisted by the US government in 2021 over human rights abuses, also made no comment.

Apple confirmed that it had sent mass threat notifications to users on 13 August, but provided no specific details regarding the cases of Bajić or Đokić.

In September, Citizen Lab and the SHARE Foundation disclosed that at least 14 individuals, including student activists and opposition figures, had received similar spyware alerts.

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Macron rejects interior minister’s resignation over violent unrest

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French Interior Minister Laurent Nuñez tendered his resignation amid some of the country’s most violent street unrest in recent years. President Emmanuel Macron rejected the resignation.

According to a statement from the Elysée Palace, Macron made the decision because law enforcement required uninterrupted command under current conditions. Macron instructed Nuñez to roll out new methods on the ground as quickly as possible.

The president also demanded that all necessary measures be taken to ensure transparency regarding the lapses in intelligence and foresight that led to the violence.

How many people were on the streets during Saturday’s protests?

The demonstrations were organised on 17 October over the rising cost of living and discontent with the government’s social policies. According to the Interior Ministry, approximately 550,000 people took part, while trade unions put the figure at 800,000.

Hundreds of thousands marched peacefully on Saturday. However, clashes with law enforcement broke out in Paris, Lyon, Marseille, and other cities, where shops were looted and buildings set on fire.

In Marseille, protesters stormed the city hall. As they forced their way in, they shouted, “This is a revolution, we are taking the Bastille!”, and went on to loot numerous stores.

In Lyon, the office of a tourism company housed in a 19th-century building was vandalised and torched. In Limoges, a 19th-century city hall was set ablaze.

Damage incurred by French businesses is reportedly estimated in the hundreds of millions of euros.

Citing Nuñez reported approximately 1,800 detentions and more than 500 injuries among police officers, gendarmes, and firefighters. Reuters reported that Nuñez stated 2,400 people had been detained nationwide and around 1,000 security personnel injured.

During the demonstrations in Paris, one person suffered a fatal heart attack while being detained.

Macron: We feel anger and shame

In a televised address, Macron said that nothing could justify the events. “There is nothing that can justify, explain, or excuse this. Tonight, we all feel anger and shame,” he said.

In the same speech, he stressed that peaceful demonstrators had legitimate grievances and should not be equated with those resorting to violence. He also noted that the protesters’ voices must be heard and that the government had already begun efforts to address them.

Macron said that legitimate demands must not be conflated with violence, and that violence should not prevent those demands from being heard.

Right demands state of emergency, Macron holds off

Right-wing politicians demanded the declaration of a state of emergency.

Macron declined to do so, stating that the government could allow local authorities to ban protests if necessary to protect public buildings and businesses.

Marine Le Pen, who is expected to run as the candidate for the far-right National Rally in next year’s presidential election, called for restraint. Le Pen said the situation in the country must not be treated as normal.

Meanwhile, Jean-Luc Mélenchon, leader of the far-left France Unbowed, stated that Macron must meet the demands of high school students staging demonstrations.

Macron’s term in office ends in 2027.

Throughout his nearly decade-long presidency, the country has frequently witnessed widespread protests, alongside persistent criticism over economic weakness and mounting public debt.

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