Europe
Merz urges Brussels to secure a US trade deal within days
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
Jordan Bardella faces antisemitism accusations over past messages
Jordan Bardella, president of France’s National Rally (RN), has been accused of voicing antisemitic views in private conversations with party members when he was 17 years old.
In a report published on Monday, investigative news website Mediapart stated that it had obtained and independently verified correspondence in which Bardella allegedly said that “Jews must dominate other peoples, crush them, and rob them,” and that “all banks are in the hands of Jews.”
Bardella strongly denied the allegations, adding that he will sue Mediapart.
Both Bardella and Marine Le Pen characterised the report as part of a wider, coordinated effort to prevent the veteran far-right politician, who currently leads in the polls, from winning next year’s election.
Bardella said:
“At a time when we have never been closer to the victory of our ideas, certain activist media outlets are ready to organise smear campaigns to destabilise the presidential campaign and attack my honour.”
The RN president said, “We can feel the first signs of an all-out war and attempts to destabilise the presidential campaign.”
Le Pen, seated beside Bardella as she spoke to reporters in the National Assembly, the lower house of the French parliament, said, “The system will do everything, even the most disgusting things, to block this momentum.”
During her attendance at a construction industry event on Monday, Le Pen described Mediapart’s report as “madness”.
The National Rally’s predecessor, the National Front, was founded by Le Pen’s father, Jean-Marie, who was convicted repeatedly of hate speech, along with Nazi collaborators.
Le Pen expelled her father from the party in 2015 after he repeated his claim that the Holocaust was a “detail” of history.
Given that Le Pen propelled Bardella’s career and placed him at the forefront of efforts to clean up the party’s image, the fallout from this latest scandal could be particularly damaging.
Too young to be associated with the party’s old guard, Bardella was seen as a fresh face who could help the party make inroads among sections of the electorate where the Le Pen name carried too many negative connotations, particularly among older voters and the Jewish community.
Since taking the helm of the National Rally in 2021, Bardella has promoted the party as a defender of France’s Jewish population, pointing to his unreserved support for Israel as evidence.
The 31-year-old Bardella travelled to Israel in 2025 after receiving an invitation from Israeli Minister of Diaspora Affairs Amichai Chikli.
Europe
EU pays extra €100bn for energy without securing more oil or gas
The European Union paid an additional bill of more than €100 billion during the year due to volatility in global energy markets. Despite this heavy expenditure, no increase was achieved in the volume of oil and gas supplied to the bloc.
Assessing the situation ahead of the EU Energy Ministers Meeting held in Dublin, EU Commissioner for Energy Dan Jørgensen emphasised that external dependency has reached an unsustainable point.
In his statement on 29 September, Jørgensen said: “The extra amount we paid for energy this year exceeded 100 billion euros, yet in return we did not receive a single drop more oil or a single cubic metre more gas.”
Pointing out that every rise in global prices is directly reflected on European households and industry, Jørgensen argued that the solution lies in domestic resources.
“Instead of imported, polluting, and expensive fossil fuels, we must turn to our own generated energy, to green electricity,” the commissioner said.
Energy prices in Europe surged once again due to the war with Iran, escalating concerns over navigation security in the Strait of Hormuz, and turmoil across global oil markets.
Following a new wave of attacks directed at Iran by the Washington administration, European benchmark natural gas prices in early September reached their highest level since January 2023.
Dutch gas futures rose by 5.9% to €73.95 per megawatt-hour.
This market pricing was driven by concerns ahead of the winter period that liquefied natural gas (LNG) shipments routed through the Strait of Hormuz could face prolonged disruptions.
Another development rattling the continent’s energy balances was the signals emanating from the White House. The possibility raised by US President Donald Trump of curbing diesel exports heightened anxiety in Brussels.
The EU, which meets approximately half of its diesel needs from the US, does not want this supply line severed.
Jørgensen reported that he conveyed clearly to Washington that such a step would serve the interests of neither the US nor Europe.
The EU official described US Energy Secretary Chris Wright’s distance from the export restrictions in question as a positive approach.
Stating that Europe is not currently experiencing a physical supply crisis, Jørgensen noted that they aim to minimise uncertainties as the winter season approaches.
Having turned to alternative suppliers and LNG markets to reduce its reliance on Russian resources since the outbreak of the Russia-Ukraine war, the EU continues to face high cost pressures.
Europe
Merz and five EU allies threaten veto over seven-year budget cuts
German Chancellor Friedrich Merz and the leaders of five other countries have threatened to withhold approval for the draft seven-year EU budget unless billions of euros in cuts are made as they demand.
According to the Financial Times, Merz, along with the leaders of the Netherlands, Sweden, Denmark, Austria, and Finland, signed a letter making clear that the proposed budget must be cut by billions of euros, or they will block it.
The 2028-2034 budget was prepared last year by the European Commission and requires the approval of all EU countries.
The proposed budget has been set at approximately 2 trillion euros ($2.33 trillion), and the parties involved hope to reach an agreement by the end of 2026.
The proposed sum is significantly higher than the current budget, which runs from 2021 to 2027.
Merz stated earlier this month that cuts should be implemented across all policy areas, rejecting further recourse to joint EU borrowing to plug the shortfall.
“Excessive debt threatens our sovereignty and our capacity to act,” the chancellor said, adding that governments face the “undoubtedly painful task” of setting priorities.
Arguing that a “20th-century budget” cannot resolve current challenges, the German leader called for spending in the bloc’s next budget to be shifted towards competitiveness and defence.
The EU budget is financed primarily through member state contributions. These payments are calculated either as national contributions based on gross national product or as a % linked to national VAT revenues.
As the EU’s largest economy, Germany provides the largest contribution in absolute terms.
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