trainData.csv

category,title,url,content
technology,EU opens door to reworking AI rulebook,https://www.politico.eu/article/how-eu-did-full-180-artificial-intelligence-rules/,"
				After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. 			BRUSSELS — The European Union’s landmark artificial intelligence rules are barely a year old but Brussels is already signaling it's open to tweaking them amid pressure from industry.When legislators reached a deal on the world-first law to tackle artificial intelligence risks in late 2023, European Commission President Ursula von der Leyen praised it as “a historic moment” — reflecting the strong political focus on keeping the nascent technology in check.Much has changed. The new U.S. administration has urged Europe to go easy on regulating AI as Washington sends shockwaves through the economy with massive and unpredictable tariffs. Von der Leyen, meanwhile, has now embraced AI as a way to restore Europe's competitiveness and also its independence as the continent ramps up efforts to compete with the U.S. and beyond.On Wednesday, the Commission took the latest step in a weeks-long effort to woo the tech industry with a new strategy promoting AI rules that are easier to obey.“When we want to boost investments in AI, we have to make sure that we have an environment that is faster and simpler than the European Union is right now,” the Commission’s tech chief Henna Virkkunen told European Parliament lawmakers after unveiling the strategy.Brussels didn’t go all in to praise and defend its rulebooks. The focus was instead on preventing the EU’s AI regulations from turning into another burden for companies — a narrative pushed by Big Tech lobby groups and industry frontrunners as a major concern as they figure out how to implement the laws.Speaking to reporters, Virkkunen “committed” to the AI Act’s main goals but said the Commission is looking into the “administrative burden” and considering “some reporting obligations [that] we could cut.”The Commission will seek industry views “where regulatory uncertainty is hindering the development and the adoption of AI,” and feed that into a wider effort to review and possibly roll back a swathe of digital rulebooks at the end of this year.“Nothing is excluded,” said a senior Commission official on Wednesday when asked about the scope of the review during a briefing for reporters.Confirmation that amending the AI law is not off the table is the latest appeasement after the Commission in February moved to ax plans to set strict liability rules for harm caused by AI. Brussels’ leading U.S. Big Tech lobby group, CCIA, acknowledged Wednesday’s strategy as a first move to simplify tech rules — and called for more ambition.“This is only the first step. What matters most is tackling them head-on,” said Boniface de Champris, senior policy manager at CCIA Europe.It adds wind to the sails of a sustained industry lobbying effort that has been playing out alongside the rapid two-month shift in transatlantic relations.Leading AI company OpenAI sent its top lobbyist Chris Lehane to Brussels on the occasion of the unveiling of the plan. He had called for “simple and predictable rules” in an interview with POLITICO ahead of the announcement.John Collison, co-founder of Irish-U.S. payment handler Stripe, criticized the AI Act on Tuesday in an interview with POLITICO, saying it was an example of “a priori regulation of speculative harms.”“The AI industry is very nascent and we would probably be able to make better choices if we waited five years,” he said.Another battleground is a voluntary set of rules for general-purpose AI model providers, which are the most complex AI models such as OpenAI's GPT and Google's Gemini, where AI companies have sounded the alarm bell on the rules turning into another burden.But civil society groups are pushing back against deregulation, and that’s likely to make discussions on any changes to AI laws as fraught as the first time around.The language in Wednesday’s strategy was debated right up to publication: The part on simplification in the final version was heavily softened compared to a leaked draft reported by POLITICO ahead of the announcement. A line that said there was an “opportunity to minimize the potential compliance burden” was replaced by a statement that there’s a “need to facilitate compliance with the AI Act.”Two leading EU lawmakers also pushed back on Wednesday against the Commission’s earlier move to ax a proposal for a single EU liability scheme for harm caused by AI. They slammed the Commission’s reasoning as “premature and unconvincing.”Maximilian Gahntz, AI policy lead at Mozilla, warned that a push for simple AI rules “should not lead to undermining the effectiveness of the EU's AI Act rules and what they were meant to accomplish.”“Simplification should not mean deregulation,” he said.Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche.French prime minister also says Trump’s trade war will cut France’s economic growth by more than 0.5 percentage point.  "
technology,EU takes revenge on Trump’s tariffs as countries approve €20B+ retaliation,https://www.politico.eu/article/eu-takes-revenge-on-trumps-metals-tariffs-approved-as-countries-close-ranks/,"
				Brussels is now set to strike back against U.S. president’s steel and aluminum measures. 			BRUSSELS — The EU can apply retaliatory tariffs on nearly €21 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc’s 27 countries assented to the measures on Wednesday, the European Commission announced.“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” the EU executive said in a statement.Hitting back against U.S. President Donald Trump’s steel and aluminum tariffs, the European Union’s countermeasures will apply in three rounds. Measures covering €3.9 billion in trade will go into force next week, with a further €13.5 billion from mid-May and a final round of €3.5 billion following in December.Only Hungary opposed the package, according to four EU diplomats with direct knowledge of the vote, while all other 26 countries voted in favor.“Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation,” Hungary's Foreign and Trade Minister Péter Szijjártó said in a post on X. Fourteen EU countries would have needed to vote against the retaliation, which had been seen as unlikely considering the shows of unity in recent weeks. The retaliation did not, however, contain a response to Trump’s imposition of 20 percent “reciprocal” tariffs on all EU exports, which took effect on Wednesday but were paused later that evening as the U.S. president announced a temporary halt to tariffs above 10 percent for most U.S. trading partnersThe EU has yet to respond to Trump's latest 25 percent tariff on cars, or to U.S. tariffs on pharmaceuticals that the American leader has said are coming soon.The European Commission has previously said it is considering putting forward its countermeasures on those tariffs as early as next week. “It will for sure be soon. I expect it could be as early as next week,” trade spokesperson Olof Gill said Tuesday.Trump has demanded that the EU reduce its trade surplus with the U.S., for instance by buying unrealistic amounts of gas or lowering safety standards on cars.While Europe indeed sells more goods to Americans, the U.S. in turn enjoys a surplus when it comes to services. Overall, the €1.3 trillion trade relationship is off by only some €50 billion. Commission President Ursula von der Leyen this week revived the idea of scrapping all industrial tariffs — in a “zero-for-zero” deal — on a mutual basis.This article has been updated. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures.Seventy percent of European exports to the U.S. are at risk of being affected by tariffs, an EU official said."
technology,Huawei top executive in Europe charged in Belgian corruption probe,https://www.politico.eu/article/huawei-top-executive-europe-charged-belgium-corruption-probe/,"
				Four employees from the Chinese tech giant have been represented before judges in recent days.			AI generated Text-to-speechBRUSSELS — One of Huawei’s most senior executives in Europe is a suspect in the Belgian investigation into alleged corruption at the European Parliament benefitting the Chinese technology company, POLITICO can reveal. The senior executive was represented in a Belgian court on Tuesday, documents relating to the hearing showed. He is charged with “active corruption of a person holding a public office, criminal organization and money laundering,” said one of the documents, which were disclosed as part of the preparation of a hearing at Brussels' Chamber of Accusation. The senior executive is listed as a vice president for the Europe region at Huawei and previously held a position as chief representative to the European Union leading the firm’s public affairs office in Brussels. He can only be identified as Yong J.Tuesday’s hearing, held behind closed doors, was part of proceedings where defense teams engage with senior judges to discuss procedural matters, including potential custody decisions. The senior executive could not be reached for comment and his lawyers did not immediately respond to a request for comment. A Huawei spokesperson also did not immediately respond to a request for comment. Belgian investigators are probing whether illegal payments were made to secure political backing for an open letter supporting the Chinese company's interests and signed off by eight members of the European Parliament, according to an arrest warrant seen by POLITICO. The Belgian prosecutor said Friday it had charged eight people. The charges followed a series of police raids of premises in Belgium and Portugal, including Huawei's Brussels lobbying headquarters and several European Parliament offices.Aside from Yong J., three other Huawei employees were among the suspects in the corruption probe who first faced Belgian judges last week as part of procedural hearings, including a lobbyist and a senior executive for the firm, who can only be described as Valerio O. and Han W. They are also facing charges related to corruption, money laundering and participation in a criminal organization. All suspects are presumed innocent. Huawei fired two employees and suspended a third for their alleged involvement in the bribery investigation, a spokesperson said Monday. The spokesperson did not disclose the identities or roles of the employees affected. It is unclear whether the employees fired and suspended by Huawei are the same as the Huawei officials who were preliminarily charged.Huawei said in a previous statement: ""The company maintains a zero-tolerance stance against corruption. As always, we are fully committed to complying with all applicable laws and regulations."" Mathieu Pollet contributed reporting.Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court.OLAF chief Ville Itälä defends his agency’s handling of a tip on Huawei, now under investigation in Belgium.It’s EPPO’s first suspension and internal investigation into allegations of prosecutor misconduct.Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians."
technology,EU seeks China’s help to contain Trump’s trade war,https://www.politico.eu/article/eu-pencils-in-china-summit-for-july/,"
				Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. 			BRUSSELS — The European Union on Tuesday reached out to Beijing for help in tracking a wave of Chinese imports that is expected to pour toward the EU after U.S. Donald Trump ramped up tariffs on China.China has pledged to “fight to the end” against Washington in an escalating showdown with Trump that could see Chinese goods facing tariffs of as high as 104 percent in entering the U.S. market.The challenge for the EU — as in the trade war of Trump’s first term — is that goods boxed out of the U.S. will quickly flow toward new markets in the EU, opening the up the risks of an even deeper global trade war.  Seeking to address the problem, European Commission President Ursula von der Leyen spoke to Chinese Premier Li Qiang and discussed “setting up a mechanism for tracking possible trade diversion and ensuring any developments are duly addressed.”“President von der Leyen emphasised China's critical role in addressing possible trade diversion caused by tariffs, especially in sectors already affected by global overcapacity,” the Commission said in a read-out of the call.The outreach to China came only a day after the EU’s trade chief Maroš Šefčovič announced a European task force to monitor diversions in Luxembourg, after meeting the bloc’s 27 trade ministers.Should the diplomatic initiative with China fail, the EU would probably have to introduce “safeguard measures,” which are special duties intended block to sudden diverted trade flows.The EU and China have a prickly relationship over trade. Brussels has spent years calling out Beijing for resorting to heavily subsidizing its giant export industries like steel, aluminum, electric cars and batteries.Still, faced with a common adversary in Washington, von der Leyen “stressed the responsibility of Europe and China, as two of world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field.”One key moment for co-ordination amid a global trade war will come in July, when the EU hopes to host Chinese dignitaries for a summit with Beijing, von der Leyen announced after the call with Li. The Commission almost hid the news of the July summit timing, mentioning it only at the bottom of a read-out of the Brussels-Beijing phone call.Earlier speculation had centered on a May summit date.The European Commission’s chief spokesperson Paula Pinho declined to confirm the date but, speaking at a regular briefing, confirmed that July “would be the idea.”Gabriel Gavin contributed to this report.Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
technology,"Top EU official downplays expectations over Apple, Meta digital fines",https://www.politico.eu/article/apple-meta-top-eu-official-downplays-expectations-over-apple-meta-digital-fines/,"
				The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.			The chief of the European Commission’s competition directorate downplayed expectations over the size of the fines that the EU executive is set to hand down to Apple and Meta for infringing the bloc’s digital antitrust rules.Enforcing the bloc's Digital Markets Act (DMA), which lays out rules for how tech companies should operate on the European market, is not about fines but about compliance, DG COMP’s Director General Olivier Guersent told an evening event hosted by the Global Competition Law Centre in Brussels on Monday.The Commission is expected to fine U.S. companies Apple and Meta, which owns Facebook, in the coming days for allegedly violating the DMA, which fully took effect in 2024.But Guersent downplayed speculation over the size of these fines, saying that it does not make sense to compare these with fines handed out in the past for antitrust infringements, such as the €1.8 billion the Commission fined Apple in March last year for abusive app store rules.That's because antitrust penalties reflect repeat offenses, according to Guersent. “Fines in antitrust are the result of reiterative infringements of a very long duration,” he said. As the DMA is only one year old, “by definition, DMA infringements cannot be reiterated,” and the duration of noncompliance will be “short,” he added.Appearing at the European Parliament Tuesday morning, Competition Commissioner Teresa Ribera said the Commission remained committed to enforcing the DMA and would impose fines on Big Tech players found to be in breach of the law.“If we do not see willingness to cooperate we will not shy away from imposing the fines identified by the law,” said Ribera. The commissioner noted that the EU executive was preparing to issue infringement decisions in the near future.Companies found to be in breach of the DMA can be fined up to 10% of their total worldwide turnover. This can go up to 20% in case of repeated infringements. The rationale for the DMA is compliance, not punishment, Guersent said, adding that “in a normal world,” when the DMA is up and running, companies should not get sanctioned under it. When asked whether DMA enforcement would be stopped or watered down in the context of broader Commission priorities in a tense geopolitical environment, he said “I have no indication that this will happen.”The EU is set to fine Apple and Meta for rule breaches in the coming days.The Commission’s first fines under its Digital Markets Act are expected this week.The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports.State aid rules underpinning the Clean Industrial Deal aim to boost renewable power, decarbonization and clean tech."
technology,Europe prepares AI charm offensive as industry trembles from tariff shocks,https://www.politico.eu/article/europe-prepare-ai-charm-offensive-industry-tariff-shock-artificial-intelligence/,"
				Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.			AI generated Text-to-speechBRUSSELS — The European Commission is finalizing a plan to make its artificial intelligence rules more palatable to companies, as they scramble to adapt to American tariffs that have sent shockwaves through the global economy. The EU executive will launch a new ""AI Continent"" plan on Wednesday. According to an undated draft of the plan obtained by POLITICO, the executive wants to ""streamline"" rules and get rid of ""obstacles"" that it feels are slowing companies in Europe down in competing with the U.S. and China.The strategy accomodates concerns expressed by Big Tech companies and AI front-runners, which directed fierce lobbying attacks against the EU's AI Act and other pieces of digital legislation.Those concerns of the tech industry were echoed by former Italian Prime Minister Mario Draghi in his landmark report on competitiveness in Europe and were included in the key priorities of Ursula von der Leyen's second term as Commission president. The Commission's tech czar Henna Virkkunen told a global AI conference in Paris in early February that the EU's regulatory framework should be more ""innovation-friendly.""Wednesday's draft strategy is expected to say that the bloc needs to seize the ""opportunity to minimize the potential compliance burden"" of the AI Act.OpenAI's Vice President for Global Affairs Chris Lehane told POLITICO in an interview last week that Brussels needs to keep its rules ""simple and predictable."" Lehane is in Brussels this week to meet with EU policymakers — a signal that leading AI companies are watching Wednesday's announcement closely.The OpenAI chief lobbyist said he had seen ""a shift in mindset of how people are thinking about AI and the opportunity"" at the summit in Paris in February. But he added that the question is now whether Brussels ""can get the strategy right.""According to the latest tally only 13 percent of European companies have adopted AI.Lehane said that besides having ""simple rules,"" the EU should also be able to build its own AI infrastructure and launch an effort to retrain European workers.By 2030, the EU should increase its computing power by 300 percent, and 100 million Europeans should have acquired AI skills, OpenAI said on Monday in recommendations called the ""EU's economic blueprint"" targeted at EU policymakers. It also pitched a €1 billion fund for AI pilot projects.The EU's executive in its plan on Wednesday wants to ask the tech industry to ""identify where regulatory uncertainty creates obstacles"" to developing and deploying AI.The draft text listed measures to boost the computing power and high-quality data needed to train AI models, as well as the industry's uptake of AI and workers' AI skills.Brussels is also set to make progress on its effort to build five “AI gigafactories” — a €20 billion promise made by Commission President Von der Leyen during the Paris AI Action Summit. Wednesday's plan includes a call for EU countries to invest in or host such gigafactories — a first step for gauging interest before a more formal procedure kicks off at the end of this year.Those gigafactories are meant to train the most complex AI models and will have four times the processors of the current most performant supercomputers. The Commission is also paving the way to expand Europe's cloud and data center capacity. The draft stated that Brussels aims to ""triple"" Europe's data center capacity in the next five to seven years. It labeled Europe's current reliance on ""non-EU infrastructure,"" notably American hyperscalers like Amazon, Google and Microsoft, as a concern for industry and governments.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche.French prime minister also says Trump’s trade war will cut France’s economic growth by more than 0.5 percentage point.  "
technology,EU agonizes over using its trade ‘bazooka’ to hit back at Trump’s mega tariff,https://www.politico.eu/article/eu-trade-bazooka-anti-coercion-instrument-donald-trump-tariffs/,"
				As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. 			AI generated Text-to-speech
				This article is also available in: French			LUXEMBOURG — The European Union is negotiating with a trade bazooka in its hand, but can’t agree on whether to pull the trigger just yet.Beyond a carefully crafted message of a “proportional” and “united” response from all of the bloc’s trade ministers at their meeting in Luxembourg on Monday, the key question of how to respond to U.S. President Donald Trump’s trade broadside threatens to open cracks in the bloc’s fragile cohesion.European Commission President Ursula von der Leyen, speaking in Brussels just as the trade ministerial was wrapping up, made it clear that the EU wants first to negotiate. The bloc was offering a “zero-for-zero” tariff scheme on industrial goods, she said, covering cars, drugs, chemicals, plastics and machinery among other things. That’s the carrot. (And it's a fairly easy carrot to dangle as transatlantic industrial tariffs have traditionally been low.) When it comes to sticks, the EU wants to create the impression of negotiating from a position of strength (while hoping that the financial market turmoil unleashed by Trump’s tariff broadside will sap his fighting spirit). But EU capitals are divided over exactly which stick they should use.The Anti-Coercion Instrument (ACI), a nuclear option that has yet to be deployed, would empower the EU executive to hit U.S. service industries such as tech and banking. Trump’s tariffs — which would affect €380 billion worth of EU exports — are exactly the kind of economic bullying the EU had in mind when it designed the ACI.But just because his “reciprocal” tariff of 20 percent on all EU goods is imminent (along with the 25 percent levies on steel, aluminum and cars already in force), that doesn’t mean the 27-nation bloc is ready to activate its bazooka. Doing so, as one minister put it, would mean the bloc really is in a trade war.The Europeans view the arguments justifying Trump’s tariffs as point-blank fallacious — including the claim that value-added taxes, EU tech regulation and phytosanitary standards should be considered non-tariff barriers. The formula used to calculate them is equally nonsensical: The EU's average tariff on industrial goods, for example, is 1.6 percent.According to an internal document seen by POLITICO, the Commission is considering slapping tariffs of up to 25 percent on a broad range of exports from the U.S. in response to Trump's levies on steel and aluminum.EU governments will vote on the plan on Wednesday. It would see the bloc impose a 25 percent duty on a wide range of U.S. exports, including soybeans, sweet corn, rice, almonds, orange juice, cranberries, tobacco, iron, steel, aluminum, certain boats and vehicles, textiles and certain clothes, and various types of makeup.The total amount of U.S. exports affected would be €22.1 billion based on the EU’s 2024 imports, according to public Eurostat figures. That’s less than originally intended after EU countries lobbied to remove items — like Kentucky bourbon — from the original hit list. That was a victory for France, Ireland, Italy and Spain.Countries such as France, Germany and Spain have led calls for the bloc not to take any options off the table in dealing with the U.S. president. “One also has to look closely at [the Anti-Coercion Instrument],” Germany’s outgoing Economy Minister Robert Habeck said on his way into Monday’s meeting. “These are measures that go far beyond customs policy. They have a broad palette. They then include digital services, but have a wide range of instruments, much more than just via a digital tax.” His Spanish counterpart Carlos Cuerpo agreed.“The Anti-Coercion Instrument is there for us to use in case we find it necessary. But again, the message that the EU should just take today is a positive one,” Cuerpo told POLITICO in an interview. “We need to explore the use of all the instruments that are at our disposal. That’s for sure. We should not rule out anything.” A senior EU diplomat aware of the meeting told POLITICO that when Šefčovič, the EU trade chief, took a straw poll on which tools Brussels should use, only a handful of EU ministers called for all options to be put on the table — including the trade bazooka. “He wanted, of course, to test the member states’ unity and what instruments that were on the table. Most member states said that we were in favor of countermeasures if we were forced to,” the senior diplomat said. They noted that about 20 percent of countries called for the EU executive to make use of all the tools it had at its disposal, including the Anti-Coercion Instrument. Specifically, Ireland and Italy — whose pharmaceutical and wine sectors are in the eye of the tariff storm — were more cautious over escalating trade tensions with Trump. Irish Foreign and Trade Minister Simon Harris expressed particular caution on invoking the ACI or targeting U.S. services.“I think if you were to get into that space it would be an extraordinary escalation at a time when we must be working for a de-escalation. It is in many ways the nuclear option if you start talking about the use of the Anti-Coercion Instrument and the likes,” said Harris, who flies to Washington on Tuesday.Italian Foreign Minister Antonio Tajani went so far as to float a delay of the entry into force of the EU’s countermeasures on steel and aluminum — from April 15 to April 30. More broadly, Italian Prime Minister Giorgia Meloni, among the European leaders closest to Trump, is showing signs of wobbling on a range of issues — from trade to defense — where the bloc is trying to present a united front. She is due to visit Washington next week, Corriera della Sera reported. When you put your most powerful trade weapon on the table so early in the negotiation process, it’s hard to remove it if things turn really sour. The European Commission is due to take a decision on whether to fine Apple and Meta as soon as this week for violating the EU’s digital competition rules. The move could add fuel to the trade fire between Washington and Brussels. “At this stage, I wouldn’t go into the precise definitions or the speculation on what kind of instrument we would use or how we would describe the reasoning for the use of this or that instrument,” Šefčovič told reporters during Monday’s closing press conference. “Our response is very gradual, just reacting to steel and aluminium … It’s kind of stretched over time because we want to create the necessary negotiating space. “At the same time, until now, despite our efforts and opening, we haven’t seen the real engagement, which would lead to the mutually acceptable solution,” the trade chief added.Additional reporting by Koen Verhelst, Laura Hülsemann and Ben Munster.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,Dutch government plans to screen scientists for national security risks,https://www.politico.eu/article/dutch-government-scientists-tech-national-security-espionage/,"
				“Knowledge is power,” minister says as Netherlands moves to counter espionage threat.			The Dutch government wants to put scientists and students through security screening before letting them work on sensitive technologies or conduct research with implications for national security. The aim is to shield the kind of knowledge that other countries might leverage to develop their military power, nuclear capacities or surveillance capabilities, or that they might use to create strategic dependencies, for instance on semiconductor technologies.The proposal comes amid heightened concern in recent years over state-sponsored espionage within European companies and governments.""The world is changing at a rapid pace. Knowledge is power and we find that more and more countries are interested in Dutch high-quality knowledge,” Eppo Bruins, minister for science, education and culture, told POLITICO in an interview.It's a concern that's been on the Netherlands' agenda for years, and other European countries are also now trying to address it. ""The geopolitical relations in recent years mean we now really want to take an extra step,"" Bruins said.According to the government's proposal, published Monday, ""threat assessments show that state actors are engaging in large-scale activities to acquire knowledge and technology at Dutch knowledge institutions.""The plan warned of an “insider threat,” whereby countries either send researchers and students to collect such knowledge, or pressure researchers into sharing information at a later stage. Quantum, AI, nuclear and biotech are listed as sensitive technologies, but sectors with a key societal role such as heating, energy, transport and civil aviation could also be considered matters of national security, according to the proposal.“Within those fields, we’ll still have to single out, with a surgical knife, which projects do require screening and which projects don’t,” the minister said.He argued the screening would allow the country’s scientific community to remain as open as possible. “We are not naive, we know we have to be careful with knowledge. But, of course, science and innovation flourish with collaboration,” he said.Under the proposal, universities, colleges and other research hubs will be asked to identify particularly sensitive sub-fields of study, which would then have to be isolated from their broader research domains to add further layers of protection.Researchers, students pursuing Master's degrees, and technical support staff interested in working on those topics would have to undergo screening.The government expects to conduct some 8,000 screenings annually on a case-by-case basis examining the personal behavior of candidates along with their past jobs, studies, countries of residence, networks and potential criminal records. The government aims to complete each screening within four weeks, fearing a lengthier process could deter researchers from working in the Netherlands.Although a researcher’s nationality wouldn’t be an automatic disqualifier, the proposal said any ties to sanctioned or high-risk institutions would be taken into account, listing China, Russia, Iran and North Korea as countries with an “offensive cyber program” that presents such a risk.""Ultimately, it's a risk-based approach and ... the network, the judicial record, or the specific scientific discipline in which a person has been employed can all play a role,"" Bruins said. “The more flags [that] are raised, the more in-depth the screening will be.”According to the government proposal, the mere existence of a screening requirement could “signal to state actors that undesirable high-value knowledge and technology transfers will not be tolerated.""The plan is in the early stages of the legislative process. An internet consultation opened on Monday, with the proposal to be submitted to the Council of State and the Dutch parliament at a later stage. The government hopes to roll out the screenings in mid-2027.Centrist party aims to avoid the “toxic scenario” of far-right and ultranationalist candidates both making the presidential election runoff. MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Belgian comedian (and Prime Minister) Bart De Wever’s 9 best quotes from the European Council summit. Bart De Wever warns that handing the money to Ukraine would spook financial markets and trigger retaliation from Moscow. "
technology,Huawei fires 2 staffers in response to corruption scandal,https://www.politico.eu/article/huawei-fires-suspends-employees-corruption-probe-lobbying-belgium/,"
				Chinese tech giant is at the center of Belgian investigation into wrongdoing.			BRUSSELS — Huawei has fired two employees and suspended a third for their alleged involvement in a bribery investigation surrounding the Chinese technology giant and the European Parliament, POLITICO has learned.The firm ""terminated the employment of two individuals"" from April 1 and suspended a third from April 2, a spokesperson for Huawei said in a statement. ""We take the ongoing investigation seriously,"" the spokesperson added.The spokesperson did not disclose the identities or roles of the employees affected by the measures.A lobbyist, a senior executive and a procurement manager with Huawei were among the suspects in the corruption probe who first faced Belgian judges last week as part of procedural hearings. The officials were preliminarily charged with corruption, participation in a criminal organization and money laundering. They are presumed innocent.It is unclear whether the three employees fired and suspended by Huawei are the same as the Huawei officials who were preliminary charged.""The company maintains a zero-tolerance stance against corruption. As always, we are fully committed to complying with all applicable laws and regulations,"" the Huawei spokesperson said. The Belgian prosecutor said Friday it charged eight people in total, three weeks after police raided addresses in Belgium and Portugal, including Huawei's Brussels lobbying office.Investigators are probing whether illegal payments were made to secure political backing for an open letter supporting the Chinese company's interest and signed off by eight members of the European Parliament.Out of the eight suspects, three are now under electronic surveillance, two were released ""under conditions,"" and three remain in prison, according to the statement from the prosecutor.Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court."
technology,Musk slammed for ‘double standard’ in Turkey as X shuts down dissidents’ accounts,https://www.politico.eu/article/elon-musk-x-appeal-turkish-government-court-over-dissidents-account-suspensions/,"
				Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.			AI generated Text-to-speechTech mogul Elon Musk is under fire from Turkish dissidents over moves to shut down X accounts aligned with the demonstrations and opposition against the country's President Recep Tayyip Erdoğan.The X owner has a “double standard,” Can Dündar, former editor-in-chief of Cumhuriyet, one of Turkey's oldest daily newspapers, told POLITICO. While Musk was talking free speech at the U.S. election, he was collaborating with an autocratic regime to censor speech, he said.Istanbul and other major cities have been roiled by anti-government protests by students, democratic activists and other dissidents for weeks, following the arrest of Erdoğan's main political rival, presidential candidate Ekrem İmamoğlu.In response, Erdoğan has taken social media platforms in his crosshairs. His government has issued a spate of gag orders to take down accounts.A spokesperson for Facebook's parent company Meta said on Tuesday it had been fined for not complying with shutdown requests from the Turkish government.Musk — not someone known for biting his tongue — has kept quiet on the protests, with his X account making little mention of the Turkish turmoil.By contrast, the tech entrepreneur has meddled in European politics in the past year. He criticized United Kingdom Prime Minister Keir Starmer for his handling of protests last summer and comparing the U.K. to the Soviet Union. He called the European Union's former digital affairs chief, Thierry Breton, a ""tyrant of Europe."" And recently he lashed out against a French court verdict finding far-right leader Marine Le Pen guilty of embezzlement and blocking her from a 2027 presidential run.X said after the protests began that it had been ordered by the Turkish government to suspend some 700 accounts. Dündar's account was suspended along with 177 others last October within a broad shutdown of online accounts.X said last week it had challenged a shutdown order in the country's Constitutional Court. However, the order in question, seen by POLITICO, predates the protest by weeks. X did not respond to a question from POLITICO as to whether it has appealed any more recent government orders. The firm said in a post it ""objects"" to multiple court orders, it didn't clarify which orders and how it was objecting to them. One person at the firm, granted anonymity to disclose confidential information, said it had filed six challenges to government orders in total at Turkey's Constitutional Court.X has complied with requests from Erdogǎn's government to intervene in the past. Ahead of the 2023 Turkish elections, X restricted access to content — a decision Musk personally defended.Some years back, X would have ""just ignored these demands, they would send a letter to us to tell us this [government] request [to suspend accounts] was made"" but they wouldn't heed it, said Metin Cihan, an independent journalist whose X account was also suspended in February before the current protests began.Cihan said that policy changed after Musk took over X in 2022. Musk also met with Erdoğan in 2023, with the Turkish president asking him to build a Tesla factory in the country, Reuters reported. The two at the time also discussed licenses for Turkey from satellite internet provider Starlink, a subsidiary of Musk's SpaceX.Two Turkish gag orders seen by POLITICO were based on the grounds of national security and public order, and contained little explanation to justify the shutdowns.Turkish law does not require prior judicial review of such orders when they are issued as emergency measures. Article 8A of Turkey's internet law, invoked in the orders seen by POLITICO, ""cannot be considered as providing the necessary procedural guarantees in order to protect the right to freedom of expression on the internet,"" experts at the human rights organization Council of Europe have said.In the first half of 2024 Google reported that 29 percent of Turkish government orders for content removal had been issued on national security grounds — the highest percentage since 2019. The tech firm removed at least 28 percent of overall content subject to takedown requests, it said.Beyond X and Facebook, Google's YouTube is one of the few free-speech options left to journalists and opposition figures. Dündar lamented what would happen if YouTube also bends the knee.YouTube steered POLITICO toward existing online documentation on how they handle government requests to remove content.The Turkish government has been putting pressure on the firm, saying last September that journalists on the platform must be licensed. YouTube said in a email it had established processes to review government requests in line with the applicable laws and its own policies. It declined to comment on how it will implement the policy requiring journalists to be licensed.While platforms wrestle with Ankara's requests, their legal efforts — like X's court challenge — could prove meaningless. The Constitutional Court takes one to three years to rule, and sometimes even longer, Istanbul Bilgi University law professor Yaman Akdeniz wrote on X.According to journalist Hayko Bağdat, whose account was also recently suspended, challenging gag orders in court is ""not enough"" because Turkey's judiciary is filled with Erdoğan loyalists.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Bucharest is at the center of a heated debate over social media policing. Suspensions affect accounts spreading information about the widespread demonstrations. "
technology,Ukraine is stuck with Musk’s Starlink for now,https://www.politico.eu/article/ukraine-stuck-with-elon-musk-starlink-satellite-internet/,"
				Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.			AI generated Text-to-speechUkrainians will have to live with the specter of Elon Musk cutting off satellite communications keeping their hospitals, military bases and troops online, as there are no short-term alternatives that can match the tech mogul's Starlink system.Starlink has become vital to Ukrainian forces fighting Russia but leaves Kyiv at the mercy of the entrepreneur, now a top advisor to United States President Donald Trump. Musk in March warned that the ""entire front line would collapse if I turned it off.""To cope with that risk, the European Union is on the lookout for backup options for Ukraine. One of those is Franco-British operator Eutelsat, which is pitching itself as a way for Kyiv to get out from under Musk’s thumb.Working with Starlink ""is a dependence that can be decided in the White House or [Trump's private residence] Mar-a-Lago,"" Eutelsat Chief Executive Officer Eva Berneke told POLITICO. ""It's good to have multiple options.""But today's Starlink alternatives aren't ready to take on Musk — including Eutelsat, by Berneke's own admission.""If we were to take over the entire connectivity capacity for Ukraine and all the citizens, we wouldn't be able to do that. Let's just be very honest,"" Berneke said. ""But I do think we can provide capacity for some of the critical use cases of government.""Few firms have invested in low-earth orbit satellites. Such systems offer faster connections and lower latency — crucial for real-time operations like drone warfare — but they remain costly and cumbersome to operate. Starlink, which is owned by Musk's SpaceX, leads the market, with Eutelsat as a strong challenger and others, like Amazon's Project Kuiper, still lagging behind.""This type of solution that Starlink is offering is unique,"" said Christopher Baugh, a space industry expert at consulting firm Analysys Mason. Starlink has ""broken barriers technically"" and ""filled the void, because nothing else was available,"" he said.With cutting-edge, compact kits and a vast web of flexible beams, Starlink’s 7,000 satellites dwarf Eutelsat’s 600-strong fleet and comparatively clunkier terminals. Musk's network can offer between 23 and 490 times the capacity of Eutelsat over Ukraine, depending on the use scenarios.Starlink reportedly had over 42,000 kits in Ukraine last year. ""I don't think we need to get anywhere close to that but you could actually think about at least having a couple of thousand … to have back-up in the critical places,"" Berneke said.SpaceX and the Ukrainian government didn't reply to POLITICO's requests for comment.Musk’s influence in the conflict isn’t just hypothetical. In 2022 he denied a request to activate Starlink over Russian-occupied Crimea, thwarting a Ukrainian drone strike on Russian ships, as it would have made parent company SpaceX ""explicitly complicit in a major act of war.""""[The] Starlink system is the backbone of the Ukrainian army,"" Musk said in March, weeks after denying a report that U.S. negotiators had threatened to shut down Starlink as part of a deal on critical minerals.According to Eutelsat's Berneke, ""the last couple of weeks have shown that you need multiple sources"" to run military and government communications.The European company is now in talks with the EU to get money to send more user kits on the ground and possibly to secure funding for future satellite launches that would create more network capacity in the years to come.""Discussions are indeed ongoing at [the] EU level, with our member states and with the industry,"" European Commission spokesperson Thomas Regnier said.Investors are taking notice. Eutelsat's shares recently skyrocketed, fueled by hopes the company would replace Starlink in Ukraine. (The stock has since lost some of that momentum.)The EU is also working on a system called IRIS², a multibillion-euro project to develop a sovereign constellation to compete with Starlink. But delays and cost overruns have meant it is only set to be operational in the early 2030s.""It's great that there's a cooperation between governments and private,"" said Baugh, the analyst. ""But at the end of the day, it's a drop in the bucket.""This article has been updated.Chinese tech giant is at the center of Belgian investigation into wrongdoing.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court."
technology,Brussels could hit Big Tech in trade spat. But how?,https://www.politico.eu/article/belgium-brussels-amazon-google-meta-ursula-von-der-leyen-tech/,"
				Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — The American tech sector has a big, fat target on its back as Europe looks to respond to Washington on tariffs. If only Brussels agreed on how to hit it. As United States President Donald Trump rolled out a roster of tariffs late Wednesday, European top officials and lawmakers noted that Big Tech firms and digital services could be Washington’s Achilles heel.The European Union has a €157 billion trade surplus in goods, which means it exports more than it imports, but it runs a deficit of €109 billion in services, including digital services. Big Tech giants like Apple, Microsoft, Amazon, Google and Meta dominate all sorts of parts of the market in Europe. European Commission President Ursula von der Leyen mentioned technology as one of the ""cards"" the bloc can play when she addressed the looming tariffs in a European Parliament session on Tuesday. But the EU is conflicted on what to do about it. Its flagship tech laws like the Digital Markets and Digital Services acts (DMA and DSA) aren’t designed to serve as retaliation tools. Attempts to slap higher taxes on tech giants previously failed. Governments could decrease their spending on Big Tech firms by revising public procurement policies, but in many cases Europe doesn’t have its own alternatives to turn to instead. And some capitals, like Dublin, are already warning that hitting U.S. tech would badly damage the bloc’s own economy. Directly targeting Big Tech is all but certain to trigger the ire of tech CEOs like Elon Musk, Jeff Bezos and Mark Zuckerberg, who have cultivated close ties with Trump. Europe could also deploy its strongest trade weapon yet, the Anti-Coercion Instrument, to target U.S. tech firms specifically. But as a tool the ACI is untested: It was designed as a ""trade bazooka"" following the first Trump administration from 2017 to 2021 and has never been used. The EU has yet to land some of the landmark probes it has been conducting under the DMA (on digital competition) and DSA (on content moderation). The Commission is set to fine Apple and Meta for violating digital competition rules, the first such fines to be issued under the DMA, late this week or early next week. Brussels has also found Elon Musk’s X in preliminary breach of the EU’s content moderation rules, which could result in fines of 6 percent of the company’s annual global turnover. Meta is also under investigation under the same rulebook. EU officials have been at pains to stress that enforcement under these laws shouldn’t be considered part of a trade war. “The DMA is not a bargaining chip,” said French Renew lawmaker Stéphanie Yon-Courtin. “This regulation is conceived to establish fair rules of the game in Europe, not to be leveraged in a trade agreement with the United States.”The lead lawmaker on the DMA, Andreas Schwab of the center-right European People's Party (EPP), said the Commission should have been quicker to issue its imminent decisions on Apple and Meta, precisely to show that “there is nothing political about them.”The core argument is that the EU's tech laws exist to uphold European values, not to discriminate or to target a given country. Any suggestion to the contrary could hurt the Commission when Big Tech firms inevitably litigate the first fines and penalties under the laws.Washington, however, has suggested the opposite. The Trump administration in February threatened retaliatory tariffs against the EU tech regime specifically, citing perceived risks for U.S. companies and freedom of expression. Wednesday’s tariff announcements from the White House have reupped calls for Brussels to pull the trigger on investigations under the rulebooks.  Since Trump is “open for negotiations, I fear that he will try to use the digital services as a negotiating tool. But I hope the European Commission will be firm,” Danish socialist MEP Christel Schaldemose said. Greens lawmaker Alexandra Geese agreed: “Let’s strongly enforce DSA and DMA.” Proponents of a bullish response to Trump’s tariffs see several other forms of retaliation: slapping higher taxes on digital services, and excluding U.S. tech firms from bidding for government contracts.Brando Benifei, a social democrat lawmaker who leads the Parliament's delegation to the U.S., flagged the need for “broad countermeasures that hit where it really hurts,” with “targeting services, such as big tech firms,” as one option. In a written comment he suggested retaliating against intellectual property rights or excluding U.S. companies from public procurement.Digital services will “inevitably come into focus,” said Finnish EPP lawmaker Aura Salla, who is also a former top lobbyist for Meta in Brussels.EPP President Manfred Weber said on Tuesday that the “digital giants only pay little to our digital infrastructure where they benefit so much.” Some EU countries are adding to the chorus. On Thursday French government spokesperson Sophie Primas said the EU’s next wave of retaliation could target “digital services that are currently not taxed. "" French liberal European lawmaker Sandro Gozi, meanwhile, mentioned “taxing American digital giants” as among the options. The issue of a digital services tax has been simmering for a while in the EU, but the bloc's 27 member countries have no unanimity on the issue, and taxation policy requires all EU countries to agree on joint policy.Some member countries have thus gone solo. Most recently, Belgium's ruling coalition deal contained an agreement to install a digital tax by 2027 if there’s no deal at the international or EU level.Ireland, the European home base of several U.S. Big Tech companies, pushed back right away on Tuesday. Targeting U.S. digital services is not the EU’s position, said Irish Trade Minister Simon Harris, adding it could be very damaging for Ireland. Gregorio Sorgi contributed reporting.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche.French prime minister also says Trump’s trade war will cut France’s economic growth by more than 0.5 percentage point.  "
technology,France suggests targeting Big Tech’s data use in response to US tariffs,https://www.politico.eu/article/france-suggest-to-regulate-data-in-response-to-trump-tariffs/,"
				France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche.			French Economy and Finance Minister Eric Lombard has suggested striking back against U.S. President Donald Trump's tariffs broadside by more strictly regulating U.S. Big Tech's use of data. ""We may strengthen certain administrative requirements or regulate the use of data,"" Lombard said in an interview with Le Journal Du Dimanche.He added that another option could be to ""tax certain activities,"" without being more specific. A French government spokesperson already said last week that the EU's retaliation against U.S. tariffs could include “digital services that are currently not taxed.""That suggestion was fiercely rejected by Ireland, which hosts the European headquarters of several U.S. Big Tech firms.European Commission President Ursula von der Leyen has vowed to respond to Trump's trade war. Technology is seen as a possible area for Europe to retaliate. The European Union has a €157 billion trade surplus in goods, which means it exports more than it imports, but it runs a deficit of €109 billion in services, including digital services. Big Tech giants like Apple, Microsoft, Amazon, Google and Meta dominate many parts of the market in Europe.Lombard said on Friday that the trade war with Washington might prevent France from bringing down its bloated budget deficit. ""Tax revenues would probably fall, and then GDP would fall compared to forecasts, which would worsen the deficit,"" Lombard said in an interview with BFMTV/RMC. French Prime Minister François Bayrou said on Sunday that Trump’s tariff onslaught will cut France’s gross domestic product by more than 0.5 percentage point. “The risk of job losses is absolutely major, as is that of an economic slowdown and a halt to investment. The consequences will be significant: Trump’s policies could cost us more than 0.5 percent of GDP,” Bayrou said in an interview with Le Parisien. After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.French prime minister also says Trump’s trade war will cut France’s economic growth by more than 0.5 percentage point.  "
technology,Huawei corruption probe: 8 charged,https://www.politico.eu/article/huawei-corruption-probe-charges-money-laundering-criminal-organization-lobbying/,"
				Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. 			BRUSSELS ― The Belgian prosecutor has charged eight people with active corruption, money laundering and criminal organization in an investigation into Huawei’s lobbying activities in Europe, it said in a statement on Friday.The decision comes three weeks after police raids in Belgium and Portugal, as part of a probe into suspected illegal payments by the Chinese technology giant to secure support from European lawmakers in the company’s interests. Police authorities also searched European Parliament offices in Strasbourg.Out of the eight suspects in the case, three were initially held in pre-trial detention and are now under electronic surveillance following appeals, according to the statement from the prosecutor. Two others were released ""under conditions,"" it said. The remaining three are still in prison — two are appealing, while the third may still do so.Huawei said in an earlier statement that it “takes these allegations seriously” and “has a zero tolerance policy towards corruption or other wrongdoing.”Elisa Braun contributed to this report.Chinese tech giant is at the center of Belgian investigation into wrongdoing.Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court."
technology,Europe to burned American scientists: We’ll take you in,https://www.politico.eu/article/europe-exploit-dunald-trump-brain-drain-academic-research-progressive-institutions/,"
				The EU’s body for scientific research, as well as local, regional and national governments, are mobilizing to poach top U.S. scholars.			Donald Trump is trying to purge United States research institutions of scholars who study purportedly progressive issues. The European Union is tripping over itself to take them in. From universities to cities, regions, countries and now the European Commission, the message is loud and clear — Europe welcomes U.S.-based talent and is pulling out all the stops to attract America's best and brightest.“This global landscape is an opportunity to show the world that Europe will remain a safe space for science and research,” European Commissioner for Startups, Research and Innovation Ekaterina Zaharieva told EU lawmakers on Monday evening. “Europe can and should be the best place to do science ... a place that attracts and retains researchers, both international and European.”Citing significant cuts to federal research spending in the U.S., as well as coercive measures targeting specific universities and researchers investigating climate science, vaccines and minority and gender issues, the commissioner said the bloc was in a unique position to serve as a refuge for top scientists. She also set out a trove of enticements for researchers hit by Trump's moves.To enhance Europe’s “pull factor” for top-level talent, Zaharieva said the Commission would enshrine freedom of scientific research within EU law and immediately increase the financial support offered by the European Research Council (ERC), the bloc’s public body for scientific and technological enquiry.Currently, researchers based in the U.S. who relocate to Europe can apply for €1 million beyond the usual maximum grant amount, which will be increased to €2 million. That means, in total, these researchers could be eligible for grants of up to €4.5 million.ERC President Maria Leptin told POLITICO the body wants to maintain “Europe’s tradition of openness and support for independent, investigator-driven research, regardless of the nationality or the current location of grant applicants.” Leptin insisted the ERC isn't purposely trying to poach U.S. talent, “but we want to help our colleagues over there if we can.” Citing a letter from 13 member countries urging Brussels to devise a strategy to nab U.S. researchers, Zaharieva said the Commission is working on a special visa for top talent, as well as a system to help governments and universities in the bloc pool resources to attract American scholars. A meeting will also be held to coordinate those actions with EU countries.“Europe has a historical responsibility to defend academic freedom,” the commissioner added, alluding to the persecution of scholars under Nazi and fascist regimes on the continent during the 1930s and 1940s. “Without freedom, knowledge cannot truly grow.” Some universities have been quick to spot the opportunity, launching targeted recruitment schemes for U.S. talent.Last month, Provence's Aix Marseille University (AMU) made headlines on both sides of the Atlantic by unveiling the Safe Space for Science scheme, a $16 million initiative to recruit up to 15 U.S. scientists whose research is being “threatened or hindered” by the new administration. AMU President Eric Berton told POLITICO that the program — which was “born of indignation at what is happening to our American colleagues” — had been inundated with applications from nearly 150 researchers hailing from top universities including Yale, Colombia and Stanford, as well as from U.S. government agencies like the National Institutes of Health, the National Oceanic and Atmospheric Administration, and NASA. Most of the applicants are researching subjects like climate change, immunology and infectious diseases, or social sciences involving gender, diversity and migration — fields targeted by the Trump administration’s war on science and diversity, equity and inclusion (DEI) issues. Berton added that even historians had applied to the program. In recent weeks, similar schemes have been rolled out at other universities. Belgium’s Vrije Universiteit Brussel (VUB) has allocated funds and launched a dedicated welcome center with visa information for postdoctoral scholars who are “victims of political and ideological interference” in the United States.In Sweden, the prestigious Karolinska Institute, famous for its work on medicines and infectious diseases, said it was increasing its ability to respond to queries on relocating to Sweden for opportunities — “which have already started to come in” — and was liaising with other universities about how best to support academic emigrés from the U.S.European cities and regional and national governments are also scrambling to attract top talent that has, until now, usually flocked to prominent and better-financed research institutions on the other side of the Atlantic.In a bid to reinforce Berlin's status as “a location for international cutting-edge research in the fields of medicine and social sciences,” the city is setting up a special fund to attract researchers from the U.S.Meanwhile, Catalan President Salvador Illa this week unveiled a €30 million Catalonian Talent Bridge regional recruitment scheme, which will finance posts for 78 American researchers in local universities and high-tech research institutions like the Barcelona Supercomputing Center and the National Centre for Genome Analysis. Prominent scholars are demanding that national governments mobilize funds as well. Eight senior scientists and professors in Germany published an op-ed in Der Spiegel this week urging the country's leaders to target “100 bright minds for Germany” in a concerted recruitment drive.Citing figures like physicists Albert Einstein and Lise Meitner — both of whom emigrated to escape Nazi persecution during the Third Reich — the scientists wrote that Germany and Europe now have the opportunity to “reverse the brain drain” of the past and “not only strengthen our own innovation and research power, but also cushion the global loss of knowledge progress.”Despite steep budget cuts in the Netherlands, Minister of Education, Culture and Science Eppo Bruins recently told lawmakers the country would prioritize allocating funds to recruit international scientists that are “worth gold to Europe and the Netherlands.”Spain is already using Atrae, a scheme originally launched to help repatriate high-level Spanish scientists who had emigrated for economic reasons, to court American scholars. Similarly, Belgium's established Brains for Brussels program — which finances foreign scholars researching artificial intelligence, IVF and other fields that are financially relevant for Belgium’s capital region — is expected to be used to attract U.S. applicants this year.AMU President Berton said European academic institutions like his own would have “preferred not to have to launch” these initiatives, but that the talent they attract will help the bloc’s universities “develop new research and strengthen their activities.”Most importantly, he added, their presence on campuses on the continent will represent “a response from the Europe of knowledge to a form of obscurantism gaining ground in the United States.”Mari Eccles contributed reporting.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.The country’s economy stands to suffer losses of up to €4.3 billion as a result of the levies this year.Member countries will be able to tap up to €15 billion of cohesion funds for homebuilding.The push to boost defense spending clashes with Madrid’s struggle to ensure not “a single cent” is cut from social spending."
technology,Macron calls on EU companies to freeze investments in US,https://www.politico.eu/article/macron-eu-companies-should-freeze-investment-in-the-u-s-until-trump-calms-down/,"
				French president says Europe shouldn’t invest in America “for some time until we have clarified things.”			PARIS — French President Emmanuel Macron wants EU businesses to stop investing in America in response to U.S. President Donald Trump's massive tariffs.""It is important that future investments, the investments announced over the last few weeks, should be put on hold for some time until we have clarified things with the United States of America,"" Macron said on Thursday as he hosted a meeting with representatives of the sectors  impacted and the government at the Elysée palace.""What message would we send by having major European players investing billions of euros in the American economy at a time when [the U.S.] are hitting us?” Macron continued, calling for ""collective solidarity.""Macron's comments are seen as an attempt to dissuade French tycoons from cozying up to Trump, potentially to try to cut private deals, outside regular EU trade policy.Earlier this month Trump announced that French shipping giant CMA CGM intended to invest €20 billion in the U.S. In January, meanwhile, Bernard Arnault, the head of luxury goods giant LVMH, said he was considering increasing investment in the U.S. and lauded Trump's economic policy.On Wednesday the Trump administration slapped the EU with 20 percent tariffs on all exports to the U.S. in what Macron called ""a brutal and unfounded decision.""The French president said Trump's tariffs confirmed that France had been right to push for a tougher trade policy and stronger trade defense instruments.""We need to continue to accelerate at the European level with an agenda of trade protection,"" Macron said, citing EU duties on Chinese vehicles as an example of how the EU can up the pressure on its economic rivals.""We are not naïve, we are going to protect ourselves,"" Macron said, referring to the trade war with the U.S.On top of retaliatory tariffs, Macron said, Brussels should consider using the EU’s so-called anti-coercion instrument against the U.S. — a new tool in the bloc’s trade arsenal that was conceived to hit countries like China — and also take measures hitting American Big Tech.""Nothing is ruled out, all tools are on the table,"" Macron said. “This is a wake-up call on trade agreements,” French Trade Minister Laurent Saint-Martin tells POLITICO.Stéphane Séjourné says he expected “good news,” which will provide succor for the French booze industry. PARIS —The trade war with the United States might prevent France from bringing down its sky-high budget deficit, French Economy and Finance Minister Eric Lombard said on …Why let penguins have all the fun? "
technology,German leaders push for tough response to Trump tariffs in hope of détente later,https://www.politico.eu/article/german-leaders-push-tough-response-donald-trump-tariffs-robert-habeck/,"
				Germany’s leaders still hold out hope that a free-trade agreement could follow Trump’s tariff “mania.”			BERLIN — Germany’s leaders aren’t concealing their preferred strategy on how to counter U.S. President Donald Trump’s “Liberation Day” tariffs: Retaliate hard enough to get Trump to come to his senses.Economy Minister Robert Habeck called for a firm response to what he termed Trump’s “tariff mania.”“The strategy [must] be aimed at, in the end, not risking or having any tariffs, no tariff war, no trade war,” Habeck said on Thursday. “But the question is, as always, how do you get there?” he added. “I advocate that Europe acts firstly with unity and secondly with determination. We are in a strong position. We can join forces with many countries, with many regions of the world and increase the pressure on the Americans accordingly.”With its export-driven economy, few countries around the world are as vulnerable to Trump’s tariff threats as Germany. After Trump dumped the European Union in the worst category of America’s trade partners Wednesday, hitting the bloc with a 20 percent tariff on all imports, Jörg Krämer, Commerzbank’s chief economist, called it a “bad day for Germany as an exporting country.” “This will reduce Germany's gross domestic product by an estimated half a percent over two years,” he said.Trump’s tariffs present a particular challenge for incoming conservative German chancellor Friedrich Merz, a longtime transatlanticist and believer in free trade who has vowed to revive Germany’s stagnating economy. Despite Trump’s move, conservatives in particular are still holding out hope that a tough EU response now will lure Trump to the negotiating table and even yield a free-trade agreement later.“In the short term, there is no getting around countermeasures to the U.S. tariffs. Otherwise there will be no movement on Washington’s side,” Jürgen Hardt, a senior conservative lawmaker told POLITICO. However, he added, no “escalation spiral” that will damage German industry even more should result.“The offer from Europe to the USA must always stand: We will work with you at all times to reduce the actual injustices in the trade system and reform the WTO,” Hardt said. “And we are still interested in deals at all stages up to and including a free-trade agreement.”Merz’s conservative bloc and the center-left Social Democratic Party (SPD), which are in the midst of coalition negotiations, vowed to aim “for a free-trade agreement with the U.S. in the medium term” in a draft coalition agreement leaked last week.Conservative and SPD politicians confirmed to POLITICO that they hoped to convince Brussels — which oversees European trade policy — to respond in three phases, first with tough counter tariffs. That retaliation should bring the Trump administration to the negotiation table, they hope, where finally a full-fledged free trade agreement — or a partial deal reducing tariffs on industrial goods on both sides — could be reached. The lawmakers spoke on condition of anonymity in order to freely discuss internal deliberations.“I believe this is an intermediate stage, at least it should be, from which we can then get back into talks and look together at what we are actually doing to international trade and then move away from customs policy again,” Alexander Schweitzer, a SPD state premier and one of the main coalition negotiators on economic policy, said in a radio interview on Wednesday in view of counter-tariffs.Berlin would, however, need a coalition of the willing in Brussels to back the revival of negotiations with the U.S. Despite Merz’s close contact to French President Emmanuel Macron and their vow to revive the German-Franco alliance, both countries have been at odds on multiple trade files in recent years.What’s more, the last attempt to strike such a deal— the Transatlantic Trade and Investment Partnership (TTIP) — collapsed after three years of tortured negotiations amid opposition from inside Germany’s center-left SPD.Hildegard Müller, the president of Germany’s car association, urged the Commission to widen its focus when concluding trade deals around the world.“The current situation also indicates what the EU needs to do. For example, the speed and determination with which free-trade agreements are concluded must be massively increased. Concrete results must be achieved with as many regions in the world as possible.”The U.S. was Germany’s most important trading partner last year, according to Germany’s statistics office. Goods worth €161.4 billion euros were exported to the U.S. The new tariffs are expected to hit Germany’s automotive industry, its pharmaceutical sector and mechanical engineering particularly hard.Israeli officials objected to a commemoration speech by philosopher Omri Boehm, grandson of a Holocaust survivor. The move aims to protect Alternative for Germany as it becomes the country’s largest opposition party.Friedrich Merz’s incoming coalition wants to press the EU to look at withholding funds and suspending voting rights from Hungary, according to a document seen by POLITICO.The ultimate decision on sending German troops would still depend on “so many parameters,” says Boris Pistorius in Berlin."
technology,EU ‘prepared’ to retaliate against Trump’s 20 percent tariffs,https://www.politico.eu/article/eu-vows-to-retaliate-against-trumps-20-percent-tariffs/,"
				“We are now preparing for further countermeasures,” says European Commission President Ursula von der Leyen.			AI generated Text-to-speechEuropean Commission President Ursula von der Leyen on Thursday slammed U.S. President Donald Trump’s imposition of a 20 percent tariff on EU goods and vowed to retaliate, saying the bloc was ""prepared to respond.""Trump dumped the European Union on Wednesday into a group of 60 countries subject to higher “reciprocal” tariffs, along with China, India, Japan and Korea, while subjecting the rest of the world to 10 percent tariffs. It’s the biggest lurch into protectionism by America since the Great Depression of the 1930s.Von der Leyen said Trump’s tariffs would have dire consequences for consumers and businesses that have prospered through trade with the United States since World War Two. The European Union, the world’s largest single market, must also defend itself against profound disruptions to global commerce that would result from Trump’s isolation of the United States.“There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created, as all U.S. trading partners will be hit,” she said in a televised statement. The EU chief executive said the bloc would ready countermeasures against Trump’s latest tariff broadside, in addition to a €26 billion package responding to tariffs he has already imposed on steel and aluminum. At the same time, she vowed, Brussels will work to protect the industries most exposed.“We are already finalizing the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” von der Leyen said from Samarkand, Uzbekistan, where she was attending a summit.“We will also be watching closely what indirect effects these tariffs could have. Because we cannot absorb global overcut capacity, nor will we accept dumping on our markets,” von der Leyen said, as the bloc braces for a flood of cheaper exports coming from China and elsewhere that will be shut out of the U.S. market.She warned of the impact Trump’s dismantling of the global trade order will have on consumers and on businesses. “Millions of citizens will face higher grocery bills. Medication will cost more, as well as transportation. Inflation will go up,” she said. “The costs of doing business with the United States will drastically increase,” she stressed. ING bank on Wednesday reduced its forecast of GDP growth for the eurozone to 1 percent next year from 1.4 percent in anticipation of the tariffs, and shaved its outlook for this year. Von der Leyen stopped short, however, of triggering immediate countermeasures on behalf of EU member countries, which the Commission represents in trade matters. Maroš Šefčovič, her trade negotiator, will meet with the EU’s 27 ambassadors on Friday. On Wednesday, Trump dumped the European Union in the worst category of America’s trade partners, hitting the bloc with a 20 percent tariff on all imports. The U.S. president said the EU was “ripping off” the United States, adding it was “pathetic.” “Now we’re going to charge the European Union. They're very tough. Very, very tough traders. You know, you think of the European Union, very friendly. They rip us off. It’s so sad to see. It’s so pathetic,” Trump said in the White House Rose Garden. Trump said he was declaring a national emergency to impose a 10 percent tariff on imports from all countries. Aside from that, he imposed higher, individualized tariffs on approximately 60 countries that the United States views as the worst trade offenders.(This story has been updated.)Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,Europe’s GDPR privacy law is headed for red tape bonfire within ‘weeks’,https://www.politico.eu/article/eu-gdpr-privacy-law-europe-president-ursula-von-der-leyen/,"
				Long seen as untouchable in Brussels, the GDPR is next on the list of the EU’s crusade against overregulation.			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — Europe's most famous technology law, the GDPR, is next on the hit list as the European Union pushes ahead with its regulatory killing spree to slash laws it reckons are weighing down its businesses.The European Commission plans to present a proposal to cut back the General Data Protection Regulation, or GDPR for short, in the next couple of weeks. Slashing regulation is a key focus for Commission President Ursula von der Leyen, as part of an attempt to make businesses in Europe more competitive with rivals in the United States, China and elsewhere. The EU's executive arm has already unveiled packages to simplify rules around sustainability reporting and accessing EU investment. The aim is for companies to waste less time and money on complying with complex legal and regulatory requirements imposed by EU laws.The GDPR is seen as one of Europe's most complex pieces of legislation by the technology sector — and by businesses far and wide beyond tech — for how it forces companies doing business in Europe to manage their data and to handle the requests and rights of data subjects to that personal data. Its introduction in 2018 drew a deluge of desperate emails from firms asking for people's consent to use their data.Seven years later, Brussels is taking out the scissors to give its (in)famous privacy law a trim.There are “a lot of good things about GDPR, [and] privacy is completely necessary. But we don’t need to regulate in a stupid way. We need to make it easy for businesses and for companies to comply,"" Danish Digital Minister Caroline Stage Olsen told reporters last week. Denmark will chair the work in the EU Council in the second half of 2025 as part of its rotating presidency.The criticism of the GDPR echoes the views of former Italian Prime Minister Mario Draghi, who released a landmark economic report last September warning that Europe's complex laws were preventing its economy from catching up with the United States and China. ""The EU's regulatory stance towards tech companies hampers innovation,"" Draghi wrote, singling out the Artificial Intelligence Act and the GDPR.For small and cash-strapped businesses, the reams of documentation the GDPR asks companies to produce has long been a gripe. Justice Commissioner Michael McGrath said the key takeaway from a review of the GDPR last summer “is the need for greater support [for] businesses, especially SMEs, in their compliance efforts.” McGrath confirmed last week that a proposal to simplify the GDPR is due in the “coming weeks.” The Commission had planned to agree on a so-called simplification package for small and medium-sized businesses on April 16, according to the Commission's diary, but that date has since been bumped to May 21.A Commission official, granted anonymity to discuss ongoing planning, told POLITICO that the date is ""only indicative"" and that it has not been decided whether the GDPR will feature in the package — but that the proposal to simplify privacy rules will definitely be delivered ""by June.""The Commission said previously that the simplification plan will focus on reporting requirements for organizations with less than 500 people, but will not touch the “underlying core objective of [the] GDPR regime.” Adjustments could include limiting requirements to keep records of data processing activities, or reforming how businesses provide data protection impact statements — two rules seen as overly cumbersome to smaller firms.The GDPR was a landmark piece of legislation when it took effect in 2018 and has been heralded as an example of the Brussels Effect, having set an international standard for the protection of personal data.  Negotiations on the privacy law triggered one of the biggest lobbying efforts Brussels had ever seen. Tech companies beefed up their Brussels operations and poured millions into trying to influence the rules during the drafting process. The proposal drew over 3,000 amendments in the European Parliament — a record.The danger in the EU's revising the law is that it could start a lobbying war between Big Tech companies and privacy advocates, two of the strongest public affairs forces in Brussels.Some fear that if the GDPR is called into question, the law could crumble under the lobbying pressure. “Reopening the GDPR for simplification is risky, no matter how well-intentioned and targeted the proposal may seem,” said Itxaso Domínguez de Olazábal, policy advisor at digital rights group EDRi.  The EU is already finalizing a new law on the procedural rules for privacy regulators to coordinate on major GDPR cases.According to Austrian privacy activist Max Schrems, the GDPR is still a “huge target” for lobbyists, but its core rules can’t easily be scrapped since the protection of personal data is enshrined in the EU’s Charter of Fundamental Rights as an inalienable freedom.  “A Court of Justice would annul a GDPR that doesn’t have these core elements,"" Schrems said. ""So if it’s where [lobbyists] want to spend their energy, be my guest, but they’re not going to get there.”  Pieter Haeck contributed reporting.ChatGPT’s tendency to “hallucinate” and spit out made-up information about people has triggered a second complaint from Austrian privacy group Noyb.The chancellor, who is trailing in the polls ahead of the Feb. 23 snap election, expressed confidence that Germany will have a parliamentary majority to loosen the debt brake. The advice comes after it was revealed that a China-linked hacking group conducted large-scale intrusions on U.S. and global telecommunication providers. The move is the “first big political puncture” in a EU-U.S. pact to allow data to flow freely."
technology,Trump’s antitrust agency chief blasts EU digital rules as ‘taxes on American firms’,https://www.politico.eu/article/trumps-antitrust-agency-chief-blasts-eu-digital-rules-as-taxes-on-american-firms/,"
				The EU is set to fine Apple and Meta for rule breaches in the coming days.			AI generated Text-to-speechOne of Donald Trump's chief antitrust enforcers unleashed a blistering attack on the European Union's flagship law that regulates big tech firms, in the latest war of words ahead of the announcement of sweeping U.S. trade tariffs.Andrew Ferguson, the chair of the United States Federal Trade Commission, said EU fines expected in the coming days were merely a tax on American companies and their behavior should have nothing to do with Brussels.“I am very suspicious of laws that appear to have been written to get at American companies abroad,” he said Wednesday. “I definitely don't want the Europeans basically levying taxes on American firms no matter what the conduct is.""But in comments that are unlikely to ease transatlantic tensions over digital regulation, the EU’s competition chief Teresa Ribera signaled later on Wednesday that she will come down hard on Big Tech companies that breach the bloc’s digital antitrust rules.“Of course I’m going to be brave,” she said, when asked if she was in favor of strong enforcement of the EU’s Digital Markets Act during an event in Washington, D.C. “I am bound by the law.”The DMA, which entered into force in 2022, aims to ensure the biggest tech firms don't crowd out smaller rivals. The European Commission is expected to fine the U.S. companies Apple and Meta, which owns Facebook, in the coming days for allegedly violating DMA rules.While these fines aren't technically tariffs, they are being seen as such by the White House. Trump is to announce sweeping ""reciprocal"" tariffs on the EU and other countries later on Wednesday in a package of measures he has described as ""liberation day.""  “The fines under the DMA are not tied to the business being conducted by the firm in Europe,” Ferguson, a Trump appointee, said. “It starts to look like the DMA is sort of like a form of taxing American companies.” To fall into the category of what the European Commission calls a  ""gatekeeper"" and so be caught by DMA rules, digital platforms need to meet certain revenue and user number criteria in the EU.Ferguson's words echo a memo issued last month by Trump, in which he said the DMA would face scrutiny and could lead to reciprocal tariffs. The U.S. is also expected to target EU regulations that it considers to be non-tariff barriers, including the DMA.The FTC chair also questioned whether the EU should have the responsibility of disciplining U.S. companies. “If we think that Americans are suffering from anticompetitive conduct at home, we should address it here at home,” Ferguson said. “I don't want the Europeans doing it for us.”The FTC oversees antitrust enforcement along with the Department of Justice. Ferguson was speaking at the Little Tech Competition Summit hosted by startup catalyzer Y Combinator.He also said he was concerned about “due process” in the EU’s application of the rules.“I am really wary about Brussels bureaucrats being given the power basically to level fines,” said Ferguson. In the U.S., “if I think someone has committed an antitrust violation, I have to prove it in court.""While noting that “the goal of the DMA is to unlock innovation in Europe,” he said “we don't have a DMA equivalent here, and we're innovating.”  “And so I've got my doubts about whether this is, you know, really about that.”The European Commission was approached for comment.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.The Commission’s first fines under its Digital Markets Act are expected this week.The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports.State aid rules underpinning the Clean Industrial Deal aim to boost renewable power, decarbonization and clean tech."
technology,"Huawei, Forum Europe staff face Belgian court hearings over corruption charges",https://www.politico.eu/article/huawei-forum-europe-staff-face-belgian-court-hearings-over-corruption-charges/,"
				Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court.			BRUSSELS — Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court this week for hearings related to the corruption investigation into the Chinese tech giant's lobbying in Europe.Police raided more than 20 locations in Belgium and Portugal last month within an investigation into alleged illegal payments made by Huawei to secure an open letter signed by eight European lawmakers in support of the company’s interests, according to the Belgian prosecutor and an arrest warrant seen by POLITICO. Five people were charged as part of the investigation, prosecutors said on March 18.In the first session, the parties met for a 15 minutes behind closed doors at Brussels' Chamber of Accusation, an appeals court where defense teams discuss ongoing investigations with senior Belgian judges regarding procedural decisions such as whether individuals should be released from custody. A second session, on Wednesday, lasted for more than two hours. According to a court timetable available on site at the Brussels Palace of Justice, the suspects include a lobbyist from Huawei as well as a senior executive and a procurement manager of the Chinese tech firm. The higher profile Huawei employees can be named as Han W. and Valerio O.All are suspected of corruption, participation in a criminal organization and money laundering. They are presumed innocent. Two other defendants are contractors, including one from UK-based Forum Europe who is charged with ""active corruption of a person holding a public office in an organization governed by public international law,"" according to the timetable.Forum Europe said in an email: ""We do not have any comment at this time.""The arrest warrant, which POLITICO reported on last week, included details from Belgian prosecutors alleging the key suspects may have facilitated the payments for the pro-Huawei letter. ""A sum of €15,000 was offered to the writer of the 5G letter, while each co-signatory was offered €1,500,"" read the warrant, signed by the investigative judge.“This transaction or proposed transaction is said to have been endorsed by HUAWEI's Chinese executives, in particular by .... [the] director of the Brussels office,” it also said.The warrant also described how the former adviser allegedly arranged for the payments via invoices that investigators suspect might be for ""alleged consultancy services and campaign expenses, in the amounts of  €18,450 and €27,500.""Huawei said in an earlier statement that it “takes these allegations seriously” and “has a zero tolerance policy towards corruption or other wrongdoing.”The Chinese Embassy in Belgium told POLITICO in a statement that ""the Chinese side is in communication with relevant authorities of the Belgian government"" and that the ""Chinese government always requires Chinese companies [to] strictly observe laws and regulations of the host countries.""Two other people — one former and one current parliamentary assistant to conservative Italian lawmaker Fulvio Martusciello — were arrested in France and Italy as part of the probe, bringing the total number of suspects to at least seven. They both denied any involvement and accepted being extradited.Four employees from the Chinese tech giant have been represented before judges in recent days.OLAF chief Ville Itälä defends his agency’s handling of a tip on Huawei, now under investigation in Belgium.It’s EPPO’s first suspension and internal investigation into allegations of prosecutor misconduct.Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians."
technology,EU to bundle response to Trump’s tariffs,https://www.politico.eu/article/eu-to-bundle-response-to-trumps-auto-and-reciprocal-tariffs/,"
				Brussels is poised to retaliate after the U.S. president’s announcement, which is expected to contain double-digit American tariffs on all EU exports. 			BRUSSELS — The European Commission said it would respond in one strike to President Donald Trump’s new auto and reciprocal tariffs, on top of its answer to U.S. steel and aluminum duties already in force.“There would be two [responses]. There will be the first response to the steel and aluminum tariffs from the U.S. And there will be a second response that clusters together everything else,” said Olof Gill, the Commission’s spokesperson for trade.“The first is going through the internal process … And the second, as I mentioned, will be issued after the expected announcements from Washington later today,” Gill said on Wednesday.  The first part is the Commission’s lists of countermeasures that would be worth a combined €26 billion to respond to Trump’s steel and aluminum tariffs imposed last month, in consultation with EU member countries and businesses.On top of that, Brussels will thus respond in one strike to Trump’s reciprocal and cars tariffs. Trump is due to make his tariff announcement, which he has styled as U.S. “Liberation Day,” on Wednesday at 4 p.m. in Washington D.C. That’s 10 p.m. in Brussels. Just last week, Trump announced he would impose a 25 percent tariffs on foreign-made cars. Those tariffs also kick in on Wednesday.While details remain sketchy, Brussels expects Trump to announce tariffs as high as 20-25 percent on all EU exports to the U.S. — a level of protectionism unseen since the Great Depression of the 1930s that threatens to disrupt global trade, hit economic output in America’s trading partners, and raise the cost of goods for U.S. consumers.Trade Commissioner Maroš Šefčovič is due to meet with EU ambassadors on Friday over lunch to plan next steps, according to two EU diplomats, ahead of a meeting of the bloc’s trade ministers in Luxembourg next Monday.Gill declined to give more details on the timing of the EU response, stressing it would come at an “appropriate time.” He also said there was no plan at present for Šefčovič to visit Washington to try and strike an agreement with the Trump administration. Šefčovič came away empty-handed from a six-hour meeting with top U.S. trade officials last week.This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,Meta faces ‘substantial’ fine for not complying with Turkey’s gag orders,https://www.politico.eu/article/meta-turkey-gag-turkish-government-mayor-ekrem-imamoglu/,"
				Turkish authorities are cracking down on online speech amid massive civil unrest.			Facebook parent company Meta has been fined a ""substantial"" amount for not complying with orders from Turkish authorities to limit content, a spokesperson told POLITICO.The Turkish government has been ordering the suspension of social media accounts sharing information on the widespread protests that have followed the arrest of President Recep Tayyip Erdoğan’s main political rival, Istanbul Mayor Ekrem İmamoğlu.""We pushed back on requests from the Turkish government to restrict content that is clearly in the public interest, and have been fined by them as a consequence,"" the spokesperson said, declining to identify the scale of the fine.""Government requests to restrict speech online alongside threats to shut down online services are severe and have a chilling effect on people’s ability to express themselves,"" the spokesperson said.Elon Musk’s social media platform X has suspended several accounts belonging to journalists and opposition figures since the outbreak of the civil unrest, despite the tech billionaire's claim to be a ""free speech absolutist.""In 2024 Meta received 5,677 requests from Turkish authorities to remove content, 4,199 of which came from Turkey's communications authority, Meta's transparency report said. Meta heeded 40 percent of the requests, the report said.Musk's X, which has largely complied with the orders, has said it is fighting Turkish government orders to protect free speech. That includes appealing to Turkey’s Constitutional Court over an order to block 126 accounts. However, the order in question predates the current wave of protests by several weeks, according to a document seen by POLITICO.Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Bucharest is at the center of a heated debate over social media policing. Suspensions affect accounts spreading information about the widespread demonstrations. "
technology,"We needed something more concrete on Huawei, says EU anti-fraud chief",https://www.politico.eu/article/we-needed-something-more-concrete-on-huawei-eu-anti-fraud-chief/,"
				OLAF chief Ville Itälä defends his agency’s handling of a tip on Huawei, now under investigation in Belgium.			
				This article is also available in: French			BRUSSELS — The director of the European Anti-Fraud Office (OLAF), Ville Itälä, has defended his decision not to open a probe into Huawei’s alleged lobbying practices in the European Parliament, over a tip dating back to 2022, even though Belgian authorities have now decided to investigate the Chinese tech multinational over the same matter. “We need[ed] something more concrete to act upon,” Itälä said in an interview with POLITICO, adding that OLAF received more than 4,000 tips a year. The tip sent in relation to Huawei, he said, had lacked details and was sent two years after the alleged offense.OLAF is under increasing scrutiny over its handling of the Huawei scandal now that Belgium has taken the case on. Nearly two years after OLAF dismissed the Huawei tip, Belgian prosecutors are investigating whether the company made illegal payments to have an open letter written and then signed by eight European lawmakers in support of its interests, according to judicial documents seen by POLITICO.The stakes are already high for the EU’s oldest watchdog as it navigates shifting geopolitical dynamics and questions about its relevance and efficacy.  “We have to keep calm and carry on, build faith in the system; otherwise people won’t trust us anymore,” Itälä added.Some critics have accused OLAF of indulging political biases when investigating political parties. In an interview on French television Monday, far-right French political leader Marine Le Pen repeated those attacks, railing against “politicized” trials after she was found guilty of embezzling European Parliament funds. She said that only opposition parties were targeted by such investigations, which in Le Pen's case began as an OLAF probe. “Some politicians have a strong tendency to say ‘I’m not guilty, it’s political’ when they face a case,” Itälä said. “And that’s normal, I do understand the importance of defense because it’s part of the system.”In regard to the Huawei case, Transparency International Europe filled in an online form in 2022 that included an email detailing the alleged scheme as an attachment, its head, Nick Aiossa said. The organization shared the original tip related to that open letter signed by eight MEPs with OLAF, which subsequently dismissed it due to “insufficient suspicions.”“[G]iven we had also raised this bilaterally in a meeting we had with [Itälä] on the 20th of Dec. 2022, they had the ability to reach out to us to seek more info,” Aiossa said in a written response.Itälä now wants to focus on proving OLAF’s relevance in the ever-changing landscape of European anti-corruption efforts. For example, he said, OLAF reports are not public, due to legal constraints; he admitted the lack of transparency was a risk. A supervisory committee is currently checking that the watchdog is not investigating parties only on one side of the political spectrum. But the institution has growing concerns about competition with the European Public Prosecutor's Office (EPPO), a new watchdog in the EU anti-fraud world, sometimes sparking friction between the two.In a hearing at the Parliament, European Chief Prosecutor Laura Codruța Kövesi criticized OLAF’s contributions to detecting criminal cases within the bloc. “The level of cooperation is very low with OLAF,” Kövesi said of the partnership. That’s not how Itälä sees it. “I was a bit surprised she did not call me before making those public remarks. This is not the right thing to do. We have 25 years of experience and have always favored cooperation,” he said. CORRECTED: This story has been amended to correct the date of the meeting between Transparency International and Itälä. Four employees from the Chinese tech giant have been represented before judges in recent days.Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court.It’s EPPO’s first suspension and internal investigation into allegations of prosecutor misconduct.Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians."
technology,"EU wants to beef up border agency to 30,000 staffers",https://www.politico.eu/article/eu-wants-new-police-border-powers-to-counter-very-alarming-security-threats/,"
				European Commission proposal would increase force of EU border patrols under Frontex.			The European Union executive on Tuesday called to increase the head count of the bloc's border agency Frontex to 30,000 staffers, in a strategy seeking to protect Europe from hybrid attacks, cybercrime, organized crime and terror threats.“Our security landscape is very alarming,” Henna Virkkunen, European Commission executive vice president responsible for technology, told POLITICO in an interview. “When we look at our security threats, we can see that they are much more cross-border nowadays, and they are very digitalized also.""A national response only is not enough,"" she said.Virkkunen unveiled a Commission proposal in Strasbourg Tuesday to give law enforcement more resources. The strategy document proposed to increase staff at EU border agency Frontex to 30,000 personnel. It is currently planned to have 10,000 standing corps personnel by 2027.The strategy, which is a broad plan rather than a set of concrete legislative proposals, follows two other recent proposals on defense and preparedness that showed how the EU is increasingly taking on security as its responsibility.The Commission also called for the EU’s police agency Europol to be given more resources and to be tasked with fighting hybrid threats. Hybrid attacks exist in a gray zone between criminal and state activity and aim to destabilize societies by targeting critical infrastructure with physical or cyberattacks or by sowing fear and confusion through information campaigns. Russia has bombarded Europe with such attacks since its full-scale invasion of Ukraine in 2022. A senior NATO figure said last December that they could soon cause mass casualties. Under the plan, law enforcement agencies would also be given greater access to data.Many law enforcement authorities are “lagging very much behind … when it comes to digital tools,” Virkkunen said. “More and more, crimes are connected to technologies, and digital platforms are used … I think that our police and law enforcement need more tools to tackle crime in [the] digital world.”However, these plans are likely to upset privacy advocates. Proposed EU legislation to combat child sexual abuse material online has long been stalled because EU member countries disagree on whether private messaging services like WhatsApp and Signal should be forced to hand over people’s conversations to the police. Any attempt to do the same via other legal mechanisms may run into similar problems, though Virkkunen insisted that people’s privacy will be protected. Suspicious Russian tankers keep slashing Europe’s internet and power cables. It’s not an act of war … but someday it might be.“Europe cannot afford to remain reactive,” the European Commission will warn in strategy to be unveiled on Wednesday.Iranian transgender man had been seeking to correct Hungary’s asylum register which listed him as a woman.Evidence of Ukrainian involvement in X disruptions is very thin, cyber experts say."
technology,Is ChatGPT doing the Commission’s homework? European Parliament asks after robotic replies,https://www.politico.eu/article/european-commission-parliament-chatgpt-artificial-intelligence-robotic-replies-roberta-metsola/,"
				The questions about AI use underscore the ongoing tensions between the two institutions.			European Parliament President Roberta Metsola questioned whether the European Union's executive arm was using artificial intelligence to respond to lawmakers' queries during a closed-door meeting of political leaders, two officials from the Parliament told POLITICO.The queries came after a complaint from Renew Group Chair Valérie Hayer about the low quality and slow speed of written answers from the European Commission to lawmakers during a recent Conference of Presidents gathering. POLITICO has seen notes from the meeting.The Commission has a legal duty to answer such questions but is not bound by time or quality.Some members of the Parliament argue that the institution is routinely ignored or overlooked by the EU's executive arm. Others have gone as far as to say that Commission President Ursula von der Leyen ""hates"" the Parliament, noting the tense relationship between the institutions due to an imbalance of power that favors the executive.Metsola said during the meeting that she would gather examples to submit to the Commission, the two officials confirmed; one reported that a majority of group leaders agreed to raise the questions. Both were granted anonymity to speak freely about a confidential meeting.Metsola's spokesperson declined to comment on specifics from the meeting. “What I can say more generally is that the quality of replies to written questions and the timeliness of the replies have been longstanding issues,"" the spokesperson said.In recent months, the Commission has encouraged the internal use of AI to boost productivity. Officials, including heads of unit and directors general, use a large language model tool known as GPT@EC — a walled-off version of ChatGPT — for a range of tasks including internal briefings, according to an EU official who was granted anonymity to speak freely about such use cases.AI ""is currently being tested, for instance, for the correct attribution of questions among Commission services or the identification of precedent replies that could be relevant to a specific case,"" a spokesperson for the Commission said when asked about its use in written questions from the Parliament. According to the Commission spokesperson, staff are not allowed to ""replicate the output of a generative AI model in public documents, such as the creation of Commission texts, notably legally binding ones.""The use of AI supports 30,000 staff and contract employees in the Commission to create drafts, summarize documents, brainstorm or generate software code, an official said last October.Metsola will raise the issue of questions from the Parliament to Commissioner Maros Šefčovič, who is in charge of inter-institutional relations, the spokesperson for the Parliament president said.No AI was used in the writing of this article.Small but classy — the best pizza al taglio and Spritz in the EU Quarter.The party proposes Northern Irish representatives be able to attend plenary sessions without voting or speaking rights."
technology,EU readies counterstrike on Big Tech and US banks over Trump’s mega tariffs,https://www.politico.eu/article/eu-tariffs-counter-strike-big-tech-us-banks-donald-trump/,"
				Brussels sees America’s transatlantic trade surplus in services as its Achilles’ heel.			
				This article is also available in: French			BRUSSELS — It’s one thing to hit Harley-Davidson motorbikes and bourbon whiskey. It’s another to go after Silicon Valley or Wall Street.The European Union is considering opening up a new battlefront as President Donald Trump prepares to impose so-called reciprocal tariffs on all of America’s trading partners on Wednesday. “Liberation Day,” as Trump has called it, would mark the biggest escalation in the trade war he first launched against Canada, Mexico and China following his Jan. 20 inauguration. Universal tariffs soon followed on steel and aluminum and then on cars — putting the onus on the European Commission, the EU’s executive, to defend the economic interests of the 27-member bloc.Brussels has so far played by the traditional trade-war rulebook, matching Trump’s broader tariffs on the industrial metals with equivalent levies on iconic American brands like Harley-Davidson. The tit-for-tat response is intended to match, or “mirror,” the administration's moves — but not to escalate.Now, with Washington threatening to punish the EU further, not only for its existing tariffs but also for what it sees as nontariff barriers such as its tech regulations, Brussels is preparing to up the ante.“We will approach these negotiations from a position of strength,” European Commission President Ursula von der Leyen said in a speech to the European Parliament on Tuesday, the eve of Trump’s big tariff announcement.“Europe holds a lot of cards. From trade to technology, to the size of our market. But this strength is also built on our readiness to take firm countermeasures. All instruments are on the table.”In targeting U.S. services, Brussels could be thinking of bulge-bracket banks like J.P. Morgan or Bank of America, or tech players like Elon Musk’s social network X, search giant Google, or Amazon, the world’s largest online retailer.“We are certainly not excluding a bigger response, a better response and an even more creative response through services, through [intellectual property rights],” a senior European Union official told reporters in mid-March.The EU is a net exporter of automobiles, pharmaceuticals and food to the U.S. But it’s a net importer of services — and that gives it more leverage in a trade dispute. (Taking goods and services together, transatlantic trade is actually broadly in balance. The EU enjoys an overall surplus of just $50 billion, or about 3 percent of the $1.7 trillion in annual transatlantic commerce.)“America’s tech giants, financial industry, and pharma companies have deep roots in Europe. Push too far, and Brussels could tighten the screws: digital levies on Silicon Valley, regulatory clamps on Wall Street, or taxes on U.S. pharma exports,” said Tobias Gehrke, a senior policy fellow at the European Council on Foreign Relations. “America may wield the bigger stick, but Europe has plenty of sharp stones to throw.”In the ring of its trade war with Trump, the EU executive has so far fought in the same weight category: blow for blow. After Washington imposed new and broader tariffs on steel and aluminum imports in mid-March, the Commission is ready to respond in kind by hitting €26 billion in U.S. goods exports. After difficult consultations with EU governments and businesses, Brussels should propose those tariff lists as soon as this week. The thing is, there are only so many goods you can hit when the damage is so big. “If Trump imposes reciprocal tariffs, we are entering a whole new game,” said an EU diplomat, granted anonymity, like others quoted in this story, to speak candidly.Depending on Trump’s own playbook, there are two broad ways the Commission could go about hitting services.First, by making use of the existing regulations it has built over the last five years, it can tighten rules governing Big Tech; tax major American banks; or slow the issuance of licenses to do business in the EU. “When you see the positioning of the big American tech companies over the last few months, who are all close to Trump, you get the impression that they’re lobbying the White House against Europe. In fact, they’re extremely vulnerable to retaliatory measures,” said Yves Melin, a founding partner at law firm Cassidy Levy Kent. A case in point is the bloc’s Digital Markets Act, which seeks to curb the power of dominant tech players and safeguard competition. The Commission is set to decide as soon as this week whether Apple and Meta are in breach of those rules. But it’s also an area where Brussels will be cautious of fanning the flames. “The problem with the digital part is that the moment the EU does that, the pressure from the U.S on the regulatory framework will even increase,” said Arnoud Willems, partner for international trade at law firm King & Spalding. Taxing financial transactions and digital flows, or making American airlines pay more to land in European airports, are other levers available to the EU, he added.The EU could also restrict the access of U.S. companies to public contracts under its new International Procurement Instrument. If Brussels shuts out American energy or consulting firms from EU public contracts, that would hit a major revenue source.As a last resort the EU can deploy its trade “bazooka” — the Anti-Coercion Instrument. As the name suggests, it would enable a broad-spectrum response, including targeting services, if Brussels concludes that U.S. actions are excessive.“These things are in principle … possible, for example, under the Anti-Coercion Instrument,” said the senior EU official cited above when asked whether the EU would hit trade in services.Within six months the Commission could go as far as to pull the plug on Musk’s X; restrict the intellectual property rights of U.S. tech giants; or bar them from investing in the EU.In an anti-coercion case “I wouldn’t be surprised if the first victims are the American tech industry,” said Melin, the lawyer.  While the EU executive would call the shots on when to use that nuclear option, it would need the support of 15 out of its 27 member countries to decide whether and how to strike. “Many member states don’t want to escalate by triggering an anti-coercion case,” said the EU diplomat quoted above.European businesses also worry about going down that route.“The problem with all these ideas of leverage is that they are not really leverage,” said Luisa Santos, deputy director general at corporate lobby group BusinessEurope. “Our economies are so intertwined … that even if you impose tariffs or any other measure on the services side, you will be hurting your own interest,” she added. And even as it signals its willingness to escalate, Brussels also hopes to bring Washington to the negotiating table. Trade Commissioner Maroš Šefčovič is hoping his U.S. counterparts can settle on a “term sheet” that sets out a framework for talks — when the next round of tariffs takes effect.These could entail lowering duties, investing in American defense firms, boosting purchases of U.S. liquefied natural gas, or softening some regulations.“We don't want to cross from trade to security. They probably don't want to cross from trade to technology, right?” said a senior official from an EU member country.“I mean, if we are fighting, let's have at least a clear box.” Koen Verhelst contributed reporting. This story has been updated with comments by European Commission President Ursula von der Leyen.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,EU set to fine Apple and Meta amid escalating trade war,https://www.politico.eu/article/eu-set-fine-apple-meta-amid-escalating-trade-war/,"
				The Commission’s first fines under its Digital Markets Act are expected this week.			The European Commission is expected to fine Apple and Meta this week for violating the EU’s digital competition rules, thrusting Big Tech into the escalating trade war between the United States and the European Union.The EU executive is due to announce the results of three yearlong investigations into breaches of the bloc’s Digital Markets Act, two into Apple and one into Meta. Both companies are expected to receive fines — the first issued under the DMA — with announcements that could come as late as the end of the week.Last month, U.S. President Donald Trump declared in a memo that the DMA — which lays out rules for how tech companies should operate on the European market — would face scrutiny and could lead to reciprocal tariffs.The line is gathering traction. ""This is not just about fines — it’s about the Commission kneecapping successful American businesses simply because they're American, while letting Chinese and European rivals off the hook,"" said a person close to the Meta investigation, who, like other people quoted in the article, was granted anonymity to speak in confidence.The U.S. is expected to move ahead with its next wave of trade tariffs on April 2 and may target EU regulations that it considers to be nontariff barriers, including the DMA.While the DMA is technically overseen by the Commission’s competition and digital directorates, the wider trade environment has factored into the EU’s planning on the communication and timing of this week's decisions, said a person briefed on the matter, with the rollout being planned centrally.Trade Commissioner Maroš Šefčovič traveled to Washington, D.C. last week with Björn Seibert, a top aide to Commission President Ursula von der Leyen, to hold discussions on the escalating dispute between the U.S. and the EU.Apple met with Šefčovič’s head of Cabinet, Bernd Biervert, earlier this month to lobby the Commission on the company’s views and discuss the DMA, according to a meeting readout.Spotify, one of the leading campaigners against the Apple rules under investigation, also met with DG TRADE officials earlier this month to discuss the digital law.However, while the threats from Washington are a factor, they are not the most important consideration when setting fines, according to a person familiar with the Commission's thinking. Other factors, particularly the novelty of the regulation, are more important, they said.The EU executive is expected to dole out a fine to Apple for its rules on developers that prevent them from communicating offers to iPhone users, according to people briefed on the matter. In parallel, a separate investigation into Apple’s browser default settings is expected to be wound down, as changes made by the iPhone maker last year have earned a positive nod from competing browser developers.Meta will face a fine for imposing terms and conditions on users for the use of their personal data that are in breach of the DMA. Commissioner Teresa Ribera, who is in charge of the Commission’s competition department, will travel to Washington this week to attend an annual global gathering of antitrust lawyers. Ribera will meet her counterparts at the U.S. Department of Justice and the Federal Trade Commission on Wednesday.Despite the trade tensions, EU officials have emphasized that there continues to be a broad alignment between the U.S. government and the EU on the need to carry on with enforcement against Big Tech. The U.S. Federal Trade Commission will go to trial next month in a case against Meta while the government’s monopolization lawsuit against Apple has continued under Trump.CORRECTION: This article has been updated to clarify that the DMA is overseen by the EU's competition and digital directorates.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.European groups received some of the biggest fines.U.S. tech giants must overhaul key products, the European Commission rules.A series of decisions against Apple, Meta and Google could open up a new front in the EU-U.S. trade war."
technology,Huawei corruption scandal: Police search European Parliament Strasbourg offices,https://www.politico.eu/article/huawei-corruption-scandal-police-raid-european-parliament-strasbourg-offices/,"
				Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians.			Police authorities searched two offices belonging to several European Parliament political assistants in Strasbourg, two officials with knowledge of the matter told POLITICO.Police had previously sealed the offices on March 13, the same day that authorities raided more than 20 addresses in Belgium and Portugal as part of an investigation into corruption at the Parliament allegedly benefiting Huawei. Those offices have now been searched, the officials confirmed Thursday.One of the officials confirmed the search in Strasbourg was part of the investigation into Huawei's lobbying practices.Parliament members and their assistants have offices at the institution's premises in Brussels, where regular parliamentary activity takes place, as well as at the institution's official seat in Strasbourg, France, where it holds its plenary sessions.Two offices in Brussels were already sealed and searched earlier this month and were handed back to their tenants.Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians, which defended the Chinese tech giant's interests, according to judicial documents seen by POLITICO.Four people have been charged with corruption and criminal organization and one with money laundering, the Belgian prosecutor's office said.One parliamentary assistant to Italian center-right MEP Fulvio Martusciello was arrested in Italy on March 20. The assistant in question has been suspended from employment by the Parliament, according to the institution's press services. Martusciello's office in 2021 led the effort to promote the letter that is under investigation.A spokesperson for Huawei said in a previous statement that the company ""has a zero tolerance policy towards corruption or other wrongdoing, and we are committed to complying with all applicable laws and regulations at all times.""Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,OnlyFans slapped with £1M UK fine,https://www.politico.eu/article/uk-regulator-hands-onlyfans-1m-fine/,"
				The adult content platform was fined for failing to provide accurate information about its age assurance measures.			LONDON — The United Kingdom’s communications regulator has fined OnlyFans £1.05 million for failing to provide accurate information about its age assurance measures.The fine stems from an investigation launched in 2024 into whether the platform, known for hosting adult content, failed to block under-18s from viewing restricted material under U.K. rules regulating video-sharing platforms, which predate the Online Safety Act.Ofcom closed that part of the investigation last month, as well as a related investigation into whether OnlyFans’ parent company, Fenix, failed to cooperate with the regulator, saying it was “making no findings on these issues” and would “continue to engage” with the service on its age-gating measures.However, Ofcom continued to look at whether Fenix failed to provide accurate responses to statutory information requests about the implementation and effectiveness of its age assurance measures between June 2022 and June 2023.In 2023, OnlyFans told the regulator it set a Yoti-supplied age-estimation tool to flag under-23s, but later discovered that the tool’s threshold had mistakenly been set to spot under-20s.Fenix informed Ofcom about the error in January 2024, two weeks after it discovered the issue and more than 16 months after the initial information request, Ofcom said.“Receiving accurate and complete information is fundamental for Ofcom to do its job as a regulator and to understand and monitor how platforms are operating,” Suzanne Cater, Ofcom’s enforcement director, said.“We will hold platforms to high standards and will not hesitate to take enforcement action where we find failings.”However, the regulator said it had reduced the fine because Fenix accepted its findings and settled the case.OnlyFans now sets the “challenge age ” to 21-years-old, which the company has previously argued is sufficient to meet statutory obligations.“OnlyFans recognizes the importance of providing Ofcom with accurate and timely information,” an OnlyFans spokesperson said. “We welcome the conclusion of this process and Ofcom’s previous decision to close their investigation into our age assurance measures.”The U.K. government’s AI copyright plans can’t seem to please anyone.Ministers hope they can find a technical solution that keeps everyone happy.U.S. tech lobby groups plan to use trade negotiations to push back against the U.K.’s Digital Services Tax.New ‘personality right’ comes as UK creative industries lobby hard against copyright shake-up that would help AI firms."
technology,Belgian prosecutors probe whether Huawei paid for letter signed by 8 MEPs,https://www.politico.eu/article/belgian-prosecutors-huawei-corruption-illegal-payments-letter/,"
				Authorities are looking into whether the Chinese tech giant made illegal payments for a letter defending its interests in 2021.  			AI generated Text-to-speechBRUSSELS — Belgian prosecutors are investigating whether Huawei made illegal payments to get an open letter written, signed by eight European parliamentarians, which defended the Chinese tech giant's interests, according to judicial documents seen by POLITICO.Belgian authorities this month raided 21 homes as part of a spiraling probe into “active corruption in the European Parliament” that “benefitted Huawei.” Investigators are looking into ""excessive gifts"" or “remuneration for taking political positions” that took place “from 2021 to the present day,” the prosecutors said.In a second major test of accountability for the European Parliament after the Qatargate scandal of 2022, four people have been charged with corruption and criminal organization and one with money laundering, the Belgian prosecutors' office said last week.According to an arrest warrant seen by POLITICO, first reported on by Italian daily La Repubblica, a key part of the investigation hinges on a letter sent by eight MEPs in February 2021 to three EU commissioners, in which they argue geopolitical tensions should not hinder the development of 5G equipment in Europe.That letter, although it does not mention Huawei by name, is seen as promoting the Chinese company's interests because it came as several EU governments were rolling out measures that sought to limit telecom operators’ use of Chinese equipment, arguing Beijing posed risks because of espionage, surveillance and potential economic dependency.Conservative Italian lawmaker Fulvio Martusciello, one of the signatories, posted the pro-Huawei letter on X on Feb. 15, 2021, but later deleted it. His former parliamentary adviser and his assistant have now both been arrested in relation to the Huawei probe, according to their lawyers. The assistant's contract has now been suspended. The arrest warrant for Martusciello's assistant includes details from the Belgian prosecutors laying out the heart of the case, in which both she and his former adviser are alleged to have helped arrange payments for the letter, referred to as the ""5G"" letter in the judicial documents.The description of the Belgian probe, as provided by the investigative judge in charge of the case, says: ""A sum of €15,000 was offered to the writer of the 5G letter, while each co-signatory was offered €1,500.""“This transaction or proposed transaction is said to have been endorsed by HUAWEI's Chinese executives, in particular by .... [the] director of the Brussels office,” the document also reads. The director can only be identified as Abraham L. Moving on to bank details of what it describes as ""suspicious payments,"" the document sets out how the former adviser allegedly arranged for the payments via invoices ""in consideration of alleged consultancy services and campaign expenses, in the amounts of  €18,450 and €27,500.""""Assuming the facts are established, these amounts would represent the alleged compensation for the above-mentioned letter drafted by eight MEPs for the attention of three European Commissioners in favor of HUAWEI,"" the document continues. ""The investigation has brought to light the financial circuit of remunerations which would demonstrate the corruptive process.""As part of a series of bank transfers, the former adviser wired €6,700 to Martusciello, €1,000 to his assistant, and €14,800 to another parliamentary assistant, the warrant says. Several account holders that received payments remain unknown.When contacted by POLITICO, Belgian prosecutors declined to comment on an ongoing investigation. Martusciello did not respond to requests for comment about the bank transfers.Asked about Abraham L.'s alleged involvement in a bribery scheme, Huawei did not respond to a request for comment. A company spokesperson said in an earlier statement: “Huawei takes these allegations seriously and will urgently communicate with the investigation to further understand the situation. Huawei has a zero tolerance policy towards corruption or other wrongdoing, and we are committed to complying with all applicable laws and regulations at all times.”Martusciello's current assistant was arrested in Italy last week as part of the Huawei probe.She ""was not involved in the political activities of Mr Martusciello, she only dealt with logistics,"" her lawyer Antimo Giaccio told POLITICO, adding she ""was very rarely at the European Parliament ... about 10 times."" Before an Italian judge on Tuesday, she rejected all the preliminary charges against her but said she stood ready to answer ""any questions from the Belgian authorities,"" her lawyer added.The former parliamentary adviser for Martusciello, who worked for him between 2015 and 2019, was also arrested in Paris last Thursday as part of the Huawei probe, his lawyer Benoît Martinez told POLITICO. “My client intends to fully cooperate with the Belgian authorities. He denies any involvement with the charges he’s suspected of,” he added. He declined to comment further on the charges related to his client.The Belgian secret services, which filed a declassified report that triggered the investigation, found digital evidence that the former adviser could have been involved in the drafting of the 2021 letter with one of Huawei's lobbyists, who can only be identified as Valerio O., the arrest warrant says.Valerio O.'s lawyer Denis Bosquet declined to comment.The investigators say the transfers can also ""be linked to the drafting by MEP Fulvio Martusciello of legislative amendments favorable to Huawei,"" and to a communication in which Valerio O. tells an employee of Huawei in Poland ""that they [Huawei] 'often cross the line and even pay for amendments.'""The same month as promoting the letter, February 2021, Martusciello submitted amendments to a European parliamentary report that would favor Huawei's position in Europe.Martusciello did not reply to multiple requests for comment about the letter, but told POLITICO he didn’t know the charges against his assistant. He told Belgian newspaper Le Soir that he had never received anything from Huawei. “I've never been to China, I've never been to the stadium, I've never received a cell phone or any other gift,” he said.NGO Transparency International received an anonymous tip in connection to the 2021 letter and forwarded the tip to the EU's OLAF anti-fraud office, it said. The then-director of the civil rights group Michiel van Hulten this month posted on Bluesky that OLAF had dismissed the claims because of “insufficient suspicions” of wrongdoing. A spokesperson for OLAF confirmed it did not investigate the matter. It remains unclear whether any of the co-signatories of the 2021 letter are being investigated by Belgian authorities as part of the Huawei corruption probe, but several of those current and former members of the European Parliament are now taking pains to distance themselves from it.POLITICO asked all of them about their involvement. Those who responded said they had not been contacted by authorities with regard to the letter.Italian conservative lawmaker Herbert Dorfmann insisted the text was Martusciello’s idea and said he would not have signed the letter had he known it was related to the Chinese firm. ""I have always been politically in favor of keeping Huawei out of the European market,"" he told POLITICO. He added neither he nor his team were offered money ""or any other form of compensation in exchange for [his] signature.""Former MEP Cristian-Silviu Bușoi, a Romanian conservative, stated he never consented to signing. “I looked through my official email and found no correspondence regarding this letter,” he said in a written statement. “I also do not recall giving verbal consent to Mr Martusciello, as is sometimes customary when colleagues seek support for their initiatives,” he also said, adding that neither he or his staff received any compensation nor were aware of any scheme related to the signature of the letter.Aldo Patriciello, a far-right Italian MEP, said in an email: ""I honestly struggle to remember whether the request for my signature came via email, phone call or WhatsApp."" He added that he had no direct or indirect relationship with Huawei or its lobbyists.Romanian conservative Daniel Buda, also a signatory, attributed his involvement to his team, stating he was informed through a briefing prepared by his office staff. “My support was solely driven by concerns about rural digital infrastructure, not influenced by external parties,” he said in an email. He added he had not been contacted by any investigative authority regarding the letter and that neither he or his team received any money in exchange for his signature. “I had no knowledge — neither then nor now — that behind this letter or activity there could be such a scheme,” he told POLITICO in a written statement.Former Italian social-democrat member Giuseppe Ferrandino said: “I am certain I never signed any letters of such kind"" and added he had never been contacted by any authorities regarding this topic. ""Nobody ever offered me money to influence my parliamentary activity,” he added.Other signatories included hard-right Italian lawmaker Giuseppe Milazzo and former Romanian social-democrat member Tudor Ciuhodaru, neither of whom responded to POLITICO’s requests for comment. Milazzo told Italian news agency ANSA that he had never had meetings related to the investigation into the Huawei case: ""I have never been offered and I have never accepted any money, gifts or any kind of favor, directly or indirectly, from [Huawei],"" he said.According to conversations with three former Huawei officials, the 2021 letter posted by Martusciello was meant to counter another open letter from October 2020 in which over 40 lawmakers urged the European Commission to impose stricter controls over the use of Chinese equipment in Europe. In a letter to European Parliament President Roberta Metsola on Wednesday, 28 members of the chamber urged the institution to “temporarily set aside any MEPs, credibly suspected of involvement, from any parliamentary activity relating to Chinese interests.” Aitor Hernández-Morales, Antoaneta Roussi and Paula Andrés Richart contributed reporting.Four employees from the Chinese tech giant have been represented before judges in recent days.Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court.OLAF chief Ville Itälä defends his agency’s handling of a tip on Huawei, now under investigation in Belgium.It’s EPPO’s first suspension and internal investigation into allegations of prosecutor misconduct."
technology,Romanian media watchdog defies Musk over censorship claims,https://www.politico.eu/article/romanian-social-media-watchdog-defies-elon-musk-censorship-speech-claims/,"
				Bucharest is at the center of a heated debate over social media policing. 			Romania's social media regulator has hit back at Washington's claims that it is censoring speech, saying it is instead fighting an information war with Russia to stop election meddling.Pavel Popescu, the vice president of telecom and media regulator ANCOM, told POLITICO in an interview that a ""hybrid war"" was underway and that ""we are fighting it. We are fighting it at the highest level with all the institutions.""Romania has become ground zero in a global struggle over how speech is regulated online. Its top constitutional court in December canceled the win of ultranationalist Călin Georgescu in the first round of the presidential election after security services warned Russia was mounting “aggressive” hybrid attacks on social media. Georgescu has been barred from running in the do-over election scheduled for May.ANCOM oversees the Digital Services Act in Romania, the European Union's social media rulebook that governs how platforms like TikTok and X moderate online speech.""We’ve never seen something like” what happened in the November 2024 presidential election, Popescu said.Unsurprisingly, Popescu has drawn the scorn of X owner Elon Musk, who on March 10 posted that ""you can tell who the bad guys are by who is demanding censorship,"" with a link to a post picturing Popescu. United States Vice President JD Vance also singled out Romania in a February speech in Munich in which he called EU regulators ""commissars"" for enforcing content moderation policies. If Musk is going to treat ANCOM “as a threat,” the tech entrepreneur should talk directly with Romanian authorities in the same way he conversed with Germany's far-right Alternative for Germany (AfD) party, Popescu said. Musk in January interviewed the AfD's leader in a livestream on X, just six weeks before Germany's snap parliamentary election.The spat between the Romanian regulator and the Tesla, X and SpaceX boss comes even though Musk's satellite company Starlink is testing controversial new applications in Romania — with ANCOM's approval.Musk's company in October reportedly tested changes in the globally agreed limits on power flux density, 25-year-old standards that ensure space objects don't interfere with each other. SpaceX and Amazon have argued that these limits are outdated and interfere with innovation.Musk ""owes us more than a debate for what we did for him as a country, for his companies,"" Popescu said.SpaceX, which owns Starlink, did not respond to POLITICO's request for comment.Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Suspensions affect accounts spreading information about the widespread demonstrations. "
technology,Belgian FM: EU should fight fire with fire in Trump’s trade war,https://www.politico.eu/article/belgian-eu-donald-trump-trade-war-tariffs-america-washington/,"
				Targeting Big Tech could be among the EU’s options to hit Washington where it hurts, Belgium’s foreign minister says.			AI generated Text-to-speechBRUSSELS — An eye for an eye. That, in essence, is the playbook the European Union should follow in responding to U.S. President Donald Trump’s tariff war, according to Belgium’s new Foreign and European Affairs Minister Maxime Prévot. The American leader's derogatory remarks about the EU along with subsequent U.S. measures “must lead us to react with similar vigor,” Prévot told POLITICO. The bloc must demonstrate that its market of 450 million people “deserves to be treated differently” than Trump has done so far, he said.Prévot, a Walloon centrist who led his party, The Committed Ones, to big gains in Belgium’s elections last June, is one of the power players in the country's seven-week-old center-right government under Prime Minister Bart De Wever. In responding to Trump the European Union shouldn’t take anything off the table, including hitting Washington where it hurts, Prévot said. “We know that, among the sectors likely to bring the greatest sensitivity and responsiveness [from the U.S.], there is the whole digital component. And so personally, I'm more in favor of also using this lever as part of the battery of counter-fire measures,” he said.The bloc’s tech regulation has been caught up in the transatlantic tariff war, with Trump threatening to retaliate against the European Commission’s enforcement of EU tech rules on content moderation and digital competition. Social media platform X, owned by Trump’s high-level adviser Elon Musk, is facing a first-ever penalty after it was deemed in a preliminary finding last summer to be in breach of EU social media rules.Triggering the EU’s never-used anti-coercion instrument should also be an option, Prévot said. The tool, designed in the wake of Trump’s first term, allows for broad retaliation in response to trade discrimination, such as quotas and tariffs or restrictions on foreign investment.“This war, particularly on tariffs, is like a boomerang being thrown,” he said. Those using tariffs are “forgetting that [the boomerang] is coming back.”His remarks come as cracks have started to appear in the bloc’s unity in how to respond to Trump’s erratic tariff threats. Faced with early criticism from France, Germany, Ireland and Italy, the European Commission was forced to broaden its consultations with EU capitals in the lead-up to imposing tariffs on €18 billion of U.S. exports, a move that ratcheted up trade tensions with Washington. It’s all grist for Trump's mill. The U.S. president sat down with national leaders such as French President Emmanuel Macron, Irish Taoiseach Micheál Martin and U.K. Prime Minister Keir Starmer. Meanwhile, EU foreign policy chief Kaja Kallas was snubbed by U.S. Secretary of State Marco Rubio, and European Commission President Ursula von der Leyen hasn’t visited Trump yet.  That approach doesn’t surprise Prévot. “The vision Donald Trump is pursuing is eminently bilateral,” Prévot said. Trump prefers to see the world through one-on-one meetings, while von der Leyen and Kallas are the “embodiment of multilateral types,” the Belgian minister said. The rumblings of Trump’s isolationist policies are being felt in Belgium, too. The new Belgian government in early February set the goal of reaching NATO’s target for national military spending of 2 percent of gross domestic product by 2029. But that target already feels outdated, and the government is looking to accelerate spending further. Belgium’s willingness to invest more in defense will be tested in the next few weeks when it considers the possible procurement of new fighter jets. The new government promised in its coalition agreement to pour more money into warplanes, but stopped short of specifying which ones.The country previously signed a contract for more than 30 U.S.-made F-35s, but such deals have been under the spotlight recently amid worries that Washington could limit their performance, and wider concerns about overreliance on American weapons. Prévot said Belgium might be too small a country to operate a fleet with different types of fighter jets, but didn't rule out turning to a European alternative.“I believe that everyone should now be in favor [of buying European],"" he said. ""But honesty forces us to say that while the principle should guide all our investments, we must also be clear-eyed.""It will take time and money for Europeans to boost their own defense industries and open new production lines, he said. “That's where the purely practical dimension comes up against the 'Buy European' principle.”Laura Kayali contributed reporting. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,"Italy’s Starlink talks at ‘standstill’ amid Musk outrage, minister says",https://www.politico.eu/article/italy-starlink-talk-standstill-elon-musk-outrage-defense-minister-guido-crosetto/,"
				Italian opposition parties have fiercely criticized a potential secure communications deal between Strarlink and Prime Minister Giorgia Meloni’s hard-right government.			Discussions between Italy's far-right government and Elon Musk's Space X over a secure communications system for defense and diplomatic purposes have been suspended, Italian Defense Minister Guido Crosetto said.""Everything has come to a standstill,"" Crosetto told Italian daily La Repubblica in an interview published Saturday. There is currently ""no [technical] discussion"" about a possible deal to use the Starlink satellite system, he added.The holdup is linked to the fact that the deal's technical details have been overshadowed by statements ""by and about"" Musk, he said.The polarizing figure of the tech billionaire who is a senior adviser to U.S. President Trump has been at the center of the political debate around the Starlink discussions in Italy.Earlier this month, opposition parties called on the government to halt talks with Musk's Space X after the tech titan threatened to turn off its communication system in Ukraine, where Starlink provides telecommunications essential to Kyiv's forces as they try to fend off Russia's full-scale invasion.News of a possible Starlink deal was first announced in January following a visit by Italian Prime Minister Giorgia Meloni to U.S. President Donald Trump's residence in Florida.Meloni has sought to maintain good relations with the Trump administration, while also developing a close relationship with Musk.Crosetto said technical discussions would resume ""when the controversies and the times have calmed down.""""The question is, what is most useful and safe for the nation,"" the minister said.For Emmanuel Macron, it wasn’t enough that Luc Rémont turned around France’s state-owned nuclear firm. He wanted a CEO who put French industry first and built local reactors faster.A new war “would be devastating for Lebanon,” Lebanese Prime Minister Nawaf Salam said.Friday’s travel mayhem stemmed from a “clear planning failure,” the International Air Transport Association charged.In interview with Tucker Carlson, Steve Witkoff also says it is “largely accepted” that NATO membership for Ukraine is not an option. "
technology,Musk’s X suspends opposition accounts in Turkey amid civil unrest,https://www.politico.eu/article/musks-x-suspends-opposition-accounts-turkey-protest-civil-unrest-erdogan-imamoglu-istanbul-mayor/,"
				Suspensions affect accounts spreading information about the widespread demonstrations. 			Elon Musk's social media platform X has suspended several accounts belonging to opposition figures in Turkey amid widespread civil unrest in the country.Musk, a self-proclaimed protector of free speech, said he acquired X to restore free speech on the platform.The suspensions come after extensive demonstrations were sparked by the arrest earlier this week of Turkish President Tayyip Erdoğan's main political rival, Istanbul Mayor Ekrem İmamoğlu. İmamoğlu was arrested just hours before he was nominated to be the presidential candidate for the main opposition Republican People’s Party (CHP). The opposition protests have spread despite the government banning gatherings for four days. Much of the opposition activity has centered around universities, and many of those connected to the demonstrations are now finding their X accounts suspended, observers report.The majority of the suspended accounts were ""university-associated activist accounts, basically sharing protest information, locations for students to go,"" Yusuf Can, coordinator and analyst at the Wilson Center's Middle East Program, told POLITICO. Many of these accounts are ""grassroots activists"" with their followings in the low tens of thousands, said Can.Some accounts appear to be suspended only in Turkey and not in the rest of the world. Activist Ömer Faruk Aslan created a second account to avoid censorship. ""Yesterday, my account was blocked by a court order because the tweets exceeded 6 million views,"" he posted.Turkey's Interior Minister Ali Yerlikaya said on X that authorities have found 326 social media accounts that are inciting hatred, 72 of which were abroad. A coordinated action between cyber and security authorities led to the arrest of 54 suspects related to the social media accounts, said Yerlikaya.Yerlikaya on Saturday said 343 people were arrested overnight in a third night of protests against İmamoğlu's arrest. Arrests were made in Istanbul, Ankara, Izmir, Adana, Antalya, Konya and several others, according to media reports.The account suspensions are likely legal, as Turkish law allows such actions should the government request them. A 2022 social media law gives the government vast and vague power to suppress content.It's not the first time that X has restricted access to content in the country. In 2023, when Erdoğan was up for reelection, X restricted content ""to ensure Twitter remains available to the people of Turkey,"" according to its global government affairs account.Musk himself said that ""the choice is have Twitter throttled in its entirety or limit access to some tweets."" He said X would publicly post the Turkish government's requests.In parallel, access to social media like X, TikTok, Instagram and YouTube has been restricted in Turkey, according to internet watchdog Netblocks.  X heeded about 86 percent of government requests to take down content in the second half of 2024 in Turkey, compared to 68 percent in the first half of the year, according to its transparency reports. While the rate of heeding the requests is lower than in the European Union, which hit 90 percent in the second half of 2024, Turkish authorities file about six times more takedown requests per capita.X did not immediately respond to a request for comment. Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Bucharest is at the center of a heated debate over social media policing. "
technology,Huawei is being boxed out of Brussels lobbying,https://www.politico.eu/article/huawei-brussels-eu-parliament-lobbying-corruption-scandal-china/,"
				Chinese tech giant at center of corruption scandal sees its access in EU public affairs scuppered.			BRUSSELS — The European Union's lobbying scene is rushing to review its ties with Chinese tech company Huawei in the wake of a corruption scandal. European technology association DigitalEurope on Thursday suspended Huawei from its work after Belgian prosecutors last week launched an investigation into ""active corruption"" at the European Parliament benefitting the Chinese tech giant. The powerful industry group BusinessEurope also suspended Huawei as a partner company.Other EU lobby groups and think tanks that have Huawei as a member or received contributions from the company are considering steps too, they told POLITICO.The European Parliament and European Commission already blacklisted Huawei lobbyists last week, shutting off their access to EU premises, and commissioner cabinets and officials working at the EU executive's directorates general were instructed “to immediately suspend contacts and meetings"" with Huawei ""until further notice.""It’s a sign of how Huawei — which is among the top spenders of lobbying money in Brussels according to the EU's transparency register — is suffering major blows after Belgian police raided its main lobbying office in Brussels as part of a larger investigation into corruption, criminal organization and money laundering at the European Parliament. DigitalEurope is one of Brussels' most powerful technology lobbying voices. It gathers tech companies and national industry associations to influence European Union decision making. The lobby group said in a statement it was aware of the “serious allegations” against Huawei. “We take ethical business conduct and compliance with the law very seriously. As a precautionary measure, Huawei’s membership has been suspended until further notice,” the statement read. BusinessEurope is a lobbying heavyweight in Brussels, with a membership composed of national trade associations and representing the interests of industrial giants across all sectors. It has a group of ""partner companies"" that includes the world's largest companies. ""Considering the on-going exceptional developments, BusinessEurope has informed Huawei Technologies that its membership to [this] group would not be renewed and would be suspended with immediate effect dated last Friday, March 14 2025,"" the association said in a comment.Huawei is also a member of, or has contributed to, several other lobby groups, trade associations and think tanks, according to the EU's transparency register that lists declarations from organizations looking to lobby the EU's work.  Those groups and associations are now all closely monitoring how the case unfolds or gearing up to take action. The European Internet Forum, a non-profit led by European Parliament members, lists Huawei as a business member. Communications Manager Eusebiu Croitoru said the organization has scheduled a discussion about the investigation and “potential implications for Huawei’s membership,” which will take place April 9.The financial and ethical committee of the European Cyber Security Organization (ECSO) will “soon analyze the situation and possible next steps.”Think tank Bruegel said it is “closely monitoring the situation.” And the Centre on Regulation in Europe (CERRE) has kept the situation “under close review.”Several of the lobby groups or think tanks contacted by POLITICO said Huawei’s input to their organization or involvement in policy activities was small. Huawei’s access to sensitive working groups at DigitalEurope was already limited following the security concerns raised over the Chinese tech giant in past years.The company’s contribution to CERRE was “clearly below” 10 percent of the think tank’s budget, it said. Telecoms lobby group ECTA said that Huawei paid a discounted membership fee and assessed the involvement of Huawei in its activities as “limited,” but added it is “closely monitoring the situation.” ECSO also said that Huawei had “limited rights” as an associate member.Eurelectric said Huawei is a “business associate,” which means the company is not involved in any policy work, but it added that it is following the reports “closely.”Elisa Braun and Mathieu Pollet contributed reporting.This article was updated to include a comment from BusinessEurope.NATO’s boss insisted that the alliance “remains the cornerstone of European security,” despite worries about Trump.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Ottawa’s Foreign Minister Mélanie Joly says tariffs would ultimately be a tax on the American people.America “is as active in NATO as ever, and some of this hysteria and hyperbole that I see … is unwarranted,” says Donald Trump’s top diplomat."
technology,Huawei suspended from key tech lobby group over corruption scandal,https://www.politico.eu/article/huawei-suspended-from-key-tech-lobby-group-over-corruption-scandal/,"
				Chinese tech firm is at the center of a corruption probe by Belgian authorities. 			European technology lobby group DigitalEurope has suspended Huawei after Belgian prosecutors launched an investigation into the Chinese tech giant over suspected corruption.In a statement on Thursday, the lobby group said it was aware of the “serious allegations” against Huawei. “We take ethical business conduct and compliance with the law very seriously. As a precautionary measure, Huawei’s membership has been suspended until further notice,” DigitalEurope's statement said.The lobby group, which gathers technology firms and national tech associations to influence European Union decision making, added the company's access to sensitive working groups was already limited.The suspension comes after Belgian police raided Huawei’s main lobbying office in Brussels, searched European Parliament offices and raided more than 20 locations in Belgium and Portugal. Investigators are probing allegations of ""active corruption within the European Parliament,"" Belgium's federal prosecutor's office said last Thursday, later adding that ""the alleged bribery is said to have benefited Huawei.""Four people were charged on Tuesday on counts of corruption and criminal organization. A fifth person was charged with money laundering and released under conditions.NATO’s boss insisted that the alliance “remains the cornerstone of European security,” despite worries about Trump.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Ottawa’s Foreign Minister Mélanie Joly says tariffs would ultimately be a tax on the American people.America “is as active in NATO as ever, and some of this hysteria and hyperbole that I see … is unwarranted,” says Donald Trump’s top diplomat."
technology,ChatGPT hit with complaint for calling user a child murderer,https://www.politico.eu/article/openai-chatgpt-complaint-filed-over-hallucinated-child-murderer/,"
				ChatGPT’s tendency to “hallucinate” and spit out made-up information about people has triggered a second complaint from Austrian privacy group Noyb.			Austrian privacy group Noyb on Thursday filed a complaint against ChatGPT for making up information about individuals, including a false story about how one user would be a child murderer.The popular artificial intelligence chatbot ChatGPT, like other chatbots, has a tendency to “hallucinate” and generate wrong information about people because it uses incorrect data or makes incorrect assumptions from its data. In the case underpinning the complaint, a user called Arve Hjalmar Holmen asked the chatbot in August 2024 if it had any information about him, after which ChatGPT presented a false story that he murdered two of his children and attempted to murder his third son. The response contained correct facts like the number and gender of his children and the name of his home town.“The fact that someone could read this output and believe it is true, is what scares me the most,” Hjalmar Holmen said in a statement shared by Noyb.OpenAI has since updated ChatGPT to search for information on the internet when asked about individuals, meaning it would in theory no longer hallucinate about individuals, Noyb said. But it added that the incorrect information may still be part of the AI model's dataset.OpenAI said in a comment: “We continue to research new ways to improve the accuracy of our models and reduce hallucinations. While we’re still reviewing this complaint, it relates to a version of ChatGPT which has since been enhanced with online search capabilities that improves accuracy.”In its complaint filed with Norway’s data protection authority (Datatilsynet), it asked the authority to fine OpenAI and order it to delete the defamatory output and fine-tune its model to eliminate inaccurate results.Noyb said that by knowingly allowing ChatGPT to produce defamatory results, OpenAI is violating the General Data Protection Regulation (GDPR)’s principle of data accuracy. ChatGPT presents users with a disclaimer at the bottom of its main interface that says that the chatbot may produce false results. But Noyb data protection lawyer Joakim Söderberg said that “isn’t enough.” “You can’t just spread false information and in the end add a small disclaimer saying that everything you said may just not be true,” he said. ""The GDPR is clear. Personal data has to be accurate. And if it's not, users have the right to have it changed to reflect the truth.""The New York Times previously reported that “chatbots invent information at least 3 percent of the time — and as high as 27 percent.” Other news reports detail how ChatGPT has made up stories about people including allegations of sexual assault or bribery.Noyb filed a separate complaint with Austria’s data protection authority last year over the fact that ChatGPT made up founder Max Schrems’ birthday. Europe's data protection authorities formed a ChatGPT task force in 2023 to coordinate privacy-related enforcement actions against the platform, which was widened to a more general AI task force earlier this year. This article was updated to include a statement from OpenAI.Long seen as untouchable in Brussels, the GDPR is next on the list of the EU’s crusade against overregulation.The chancellor, who is trailing in the polls ahead of the Feb. 23 snap election, expressed confidence that Germany will have a parliamentary majority to loosen the debt brake. The advice comes after it was revealed that a China-linked hacking group conducted large-scale intrusions on U.S. and global telecommunication providers. The move is the “first big political puncture” in a EU-U.S. pact to allow data to flow freely."
technology,"Interinstitutional talks on foreign investment screening to kick off in May, says EU trade chief",https://www.politico.eu/article/interinstitutional-talks-on-foreign-investment-screening-to-kick-off-in-may-says-eu-trade-chief/,"
				The legislative work is expected to be completed by the end of the year, Maroš Šefčovič says. 			European institutions are expected to kick off their negotiations on the review of the screening of foreign direct investment (FDI) in May, with the legislative work expected to be concluded this year, the EU's trade chief Maroš Šefčovič said on Thursday. The European Commission’s proposal to revamp its rules on screening FDI mostly aims at harmonizing the bloc’s fragmented system of screening of foreign investments across member states. This regulation is one of the key planks of the Commission's broader economic security strategy that seeks to bolster Europe against the risks of growing geopolitical tensions.""I look forward to trilogues starting in May, and I see no reason for us not to complete this work by the end of this year,"" Šefčovič told trade lawmakers, referring to the negotiations with the European Parliament and the Council of the EU.In the talks, the scope of the sectors required to be screened as well as the role of the European Commission in screening the investments are expected to be the most prickly issues.While capitals removed a list of critical technologies such as AI and semiconductors that would be subject to mandatory screening, the Parliament has added more areas of screening in its draft report.Neither the Council of the EU nor the Parliament has yet finalized their positions ahead of the negotiations. The Parliament is expected to do so during a vote on April 7 or 8.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,ECB’s Lagarde: EU needs to be ready for tariff ‘blackmail’ in age of Trump,https://www.politico.eu/article/ecbs-lagarde-watch-out-us-we-can-live-without-you/,"
				The U.S. president’s escalating trade war looms over a key summit of European leaders in Brussels today.			Europe needs to “stand ready for anything” including attempts to “use tariffs as a weapon” and  “blackmail” European Central Bank President  Christine Lagarde said on Thursday.Answering a question from lawmakers about the effects of U.S. President Donald Trump’s policies in unusually direct language, the central bank chief said that “the strategy of others to consolidate, weaken, strengthen, repatriate manufacturing, use tariffs as a weapon, blackmail ... should reinforce our determination to be strong.”Lagarde was addressing the European Parliament’s Economic and Monetary Affairs Committee before heading over to a meeting of EU heads of government later in the morning, where the question of how to respond to threatened U.S. tariffs on European goods will loom over discussions.Lagarde said the ECB estimates that unilateral U.S. tariffs would hit the eurozone’s growth rate by 0.3 percentage points in the first year, and by as much as 0.5 percentage points if the EU retaliated in kind. Inflation could rise by 0.5 percentage points, she said.Lagarde said the estimates are subject to “maximum uncertainty” due to the rapid pace of events and stressed that any barriers to trade would dampen growth. However, she added, the EU could offset that with deeper ties with other trade partners.“Closer integration with the rest of the world, excluding the U.S., could more than offset losses from unilateral tariffs, including retaliation,” she said.The central banker also addressed rumors of a so-called “Mar-a-Lago accord” that would aim to devalue the  dollar to boost American manufacturing with the cooperation of U.S. allies. Lagarde called the policy proposal, which has never actually been endorsed by the Trump administration in an official capacity, a “speculative unidentified arrangement” that “lacked substance.”U.S. president maintains hard-line tariff rhetoric. Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures.Germany keeps over €100 billion worth of gold reserves in the New York Federal Reserve.But analysts agree that talk of the greenback’s demise is premature. "
technology,Europe looks to poach US researchers as Trump cuts funding,https://www.politico.eu/article/europe-us-research-education-donald-trump-ekaterina-zaharieva/,"
				Twelve EU capitals want programs to bring over American scholars.			AI generated Text-to-speechA group of European countries is devising a strategy to poach researchers in the United States in response to American government cuts in education and research.Twelve governments said the European Union needs an ""attractivity boom"" to bring over talent from abroad ""who might suffer from research interference and ill-motivated and brutal funding cuts,"" in a letter to the European Commission seen by POLITICO.The undated letter was addressed to EU Innovation Commissioner Ekaterina Zaharieva and signed by France, the Czech Republic, Austria, Slovakia, Estonia, Latvia, Spain, Slovenia, Germany, Greece, Bulgaria and Romania.""It is urgent ... to organize ourselves to welcome talents who would like or need to leave the United States,"" French Research Minister Philippe Baptiste told POLITICO in a statement.The U.S. is not mentioned by name in the letter but there are explicit references. ""The current international context reminds us that freedom of science can be put at risk anywhere and at any time,"" the text read. Since Donald Trump took office in January, the U.S. research and education landscape has been hit with massive cuts. The U.S. Education Department has started cutting roughly half of its workforce and several universities including the Johns Hopkins University have cut jobs because of the loss of government funding.The letter included several suggestions on how to attract researchers, including dedicated funding, an immigration framework and strengthening partnerships with ""other leading scientific nations.""The countries want the Commission to organize a meeting of EU research ministers in coming weeks to devise a plan, they wrote.In past weeks, several universities across Europe have launched attempts to attract U.S.-based researchers. One of Brussels' universities, the Free University Brussels (VUB), on Monday announced 12 positions for international researchers ""with a specific focus on American scholars.""The French Aix-Marseille University also launched a ""safe space for science program,"" referring to ""a context where some scientists in the United States may feel threatened or hindered in their research.""After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,Pressure mounts on Metsola to sideline lawmakers linked to Huawei bribery probe,https://www.politico.eu/article/pressure-european-parliament-president-roberta-metsola-sideline-lawmakers-linked-huawei-bribery-probe/,"
				MEPs are demanding the Parliament president strengthen internal reporting mechanisms. 			Lawmakers are demanding European Parliament President Roberta Metsola “set aside” any peers suspected of  involvement in the Huawei bribery scandal, according to a letter signed by 28 members of the European Parliament and seen by POLITICO.“While fully respecting the independence of the ongoing judicial investigation and the presumption of innocence of all individuals involved, we cannot ignore the potential threat these allegations pose to the independence and credibility of our institution,” wrote lawmakers from the Socialists and Democrats, Renew Europe, Greens, and The Left.Four people  so far have been charged on counts of corruption and criminal organization as part of an alleged cash-for-influence campaign by Chinese technology giant Huawei.Linked MEPs should be prevented from participating in files related to digital policy, cybersecurity, trade with China, foreign interference and telecommunications, the letter says.Police raided offices belonging to parliamentary assistants on Monday evening. No MEP offices were searched but earlier media reports claimed Belgian authorities were investigating a dozen current and former lawmakers.Metsola responded to questions about the scandal for the first time on Tuesday, saying the “alarm bells” set up in the wake of the 2022 Qatargate cash-for-influence scandal as part of wider reforms helped identify the Huawei case.""It is also thanks to the rules that we put in that these things can get caught and can get caught earlier,"" she said. The letter also asks the Parliament president to facilitate the implementation of the European Union ethics body, which has been blocked by the European People’s Party — Metsola’s own political family — and far-right factions.As debate on transparency rules heats up, the right-wing bloc has recently blocked the appointment of ethics experts and axed the budget of the ethics body — meant to set up common behavioral standards and transparency requirements across EU institutions.Paula Andrés Richart contributed reporting. Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,EU risks more Trump tariffs in looming Big Tech crackdown,https://www.politico.eu/article/big-tech-crackdown-europe-donald-trump-tariffs-united-states-digital-competition/,"
				A series of decisions against Apple, Meta and Google could open up a new front in the EU-U.S. trade war.			There may be a more politically incendiary moment for the European Union to crack down on Big Tech. But it’s hard to think of one.Starting Wednesday, the European Commission is staring down a series of deadlines to decide whether Apple, Meta and Google are in breach of the EU's digital competition laws; decisions which, at least on paper, could see the companies hit with fines of up to 10 percent of their worldwide revenues.The timing’s awkward. In recent weeks, the bloc’s Digital Markets Act has come under sustained fire from United States President Donald Trump, who said it amounts to “overseas extortion” of American companies. As Trump turns up the heat in a global trade war, the White House has gone so far as to threaten additional tariffs in response to the EU’s tech regulation.But the Commission’s hands are tied. An immovable deadline for the Commission to tell Apple exactly how it should open its products and services up to rivals runs out on March 19.Normally, this would be uncontroversial; a procedural step in getting a company to comply with a new law. But any decision to censure Big Tech under the DMA risks angering Trump, who last week called Apple “a great company.” After that, things get serious, as the Commission starts butting up against deadlines to wrap up multiple year-long noncompliance investigations against Apple, Meta and Google.EU officials have repeatedly promised that decisions are coming soon, at least for Apple and Meta, spurred on by complaints from users like Epic Games and Spotify, which say compliance efforts by Big Tech to date fall short.“The Commission would face a lot of criticism if it was perceived to be taking a deliberately ‘soft’ approach for geopolitical reasons,” says Zach Meyers, director of research at the Centre on Regulation in Europe think tank.Mindful of fraught geopolitics, the executive’s leadership has sought in recent weeks to smooth over tensions by insisting that its approach is not anti-American. ""[The DMA] does not target U.S. companies,""  European commissioners Teresa Ribera and Henna Virkkunen wrote to a U.S. lawmaker earlier this month, stressing that the EU’s aim “is to ensure compliance — not to issue fines.”The EU currently has six open cases against Apple, Meta and Google for not complying with various parts of the DMA. While probes should technically be completed within a year, these timelines aren’t set in stone, according to Alba Ribera Martínez, a lecturer in law at Universidad Villanueva in Madrid.What is certain is that there are at least a few touch papers waiting to be lit.The main target is Apple, which faces three investigations over failing to comply with the DMA, on top of the order from the Commission to open up its devices to rivals.Next week, the Commission is due to finalize one of these probes — into Apple’s rules for its app store. App developers claim that current rules unfairly prevent them from steering customers away from Apple’s payment system and fees that the company charges developers. Two people familiar with the case, who spoke on condition of anonymity because they’re not allowed to disclose details, said that Apple would likely face a noncompliance decision on its anti-steering provisions, which could potentially come with a fine for past conduct.The next dominos to fall will be an investigation into Meta’s pay-or-consent rules, which the Commission should wrap up in the next few weeks, and a second Apple investigation into a broader set of issues concerning its app store, set to be completed this summer.Apple's response to a third probe into its browser rules is currently being assessed by the Commission, with recent changes being welcomed by users, the Commission's DMA lead Alberto Bacchiega said at a hearing on Monday. And Google continues to face two probes into its vertical search service and its app store.The big question is what kind of action officials will take. Each noncompliance decision will be accompanied with a cease-and-desist order and a proposal to remedy the infraction. The EU can also issue fines of up to 10 percent of a company’s worldwide revenue, rising to 20 percent for repeat infringements. But it isn’t required to — nor may fines be the most important measure the Commission can take.“The most consequential decisions that are going to be produced from the noncompliance proceedings are really the remedies,” said Ribera Martínez.Lurking in the background is the reason that the DMA was designed in the first place: to stop Europe’s tech sector being sewn up by a handful of giants.Hundreds of developers and digital service providers — American and European alike — are waiting to see how rigorously the Commission will enforce the rules. Many have products ready to roll out, but only once the Commission offers clarity around what the final app store changes will be, said one European game developer, granted anonymity because of their dependency on Apple and Google.Cologne-based Hubert Weid, whose firm Mobivention launched a small-scale app store last year, has yet to capitalize on the DMA’s promise to open up Apple's hitherto-walled garden to rivals. “Our finding of success was quite limited,” he said. Coriell Wright, global public policy director at Epic Games — a larger U.S. firm — put it more bluntly.“We hope the Commission will come out swinging to put Apple and Google back into compliance,” she said. Underlying it all is Commission President Ursula von der Leyen’s overarching goal to strengthen the EU’s competitiveness to boost its economic performance.“It is difficult to see how a light-touch approach to DMA enforcement would help,” said Meyers of the Centre on Regulation in Europe. “Emasculating the DMA would undermine the EU’s promise of providing a more predictable and rules-based order than the U.S. does,” he said.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.European groups received some of the biggest fines.The Commission’s first fines under its Digital Markets Act are expected this week.U.S. tech giants must overhaul key products, the European Commission rules."
technology,"Qatargate reforms helped us identify Huawei bribery scandal, Parliament president says",https://www.politico.eu/article/qatargate-reforms-helped-identify-huawei-bribery-scandal-parliament-roberta-metsola/,"
				Belgian authorities on Tuesday charged four people on counts of corruption and criminal organization.			The European Parliament's reforms in the wake of the cash-for-influence Qatargate scandal helped it identify alleged Huawei corruption earlier, Parliament President Roberta Metsola said Tuesday evening.""I want the Parliament to continue to be open but I want to make sure that there are rules in place,"" Metsola said in an interview with media brand Euractiv during its relaunch event, in her first public comments on the latest bribery scandal hitting the heart of European democracy. ""It is also thanks to the rules that we put in that these things can get caught and can get caught earlier,"" she added.The Parliament has been embroiled in a fresh corruption scandal that involves ""preliminary charges of active corruption, forgery of documents, money laundering,"" Belgian federal prosecutors said last week.Metsola argued that ""on that fateful"" night of December 2022 when the Qatargate scandal broke out, she had ""two options."" Either changing nothing, because ""there will always be people who will try to break the rules"" or to look at which could be fixed. Metsola said she picked the latter, unfolding a 14-point plan that helped create the alarm bells that would sound for Parliament and the police to identify future cases of corruption.“The one thing I will not do is allow the allegations or the alleged work of potentially a few individuals, to tarnish the work of hundreds of others,"" she added. Belgian authorities on Tuesday charged four people on counts of corruption and criminal organization as part of an alleged cash-for-influence campaign by the Chinese technology giant Huawei.Searches took place in the European Parliament in Brussels on Monday, which had already been sealed following raids on other addresses on March 13.On March 14, the Parliament banned Huawei lobbyists from its premises. The European Commission followed suit by instructing the commissioners' Cabinets and staff at the directorates generals (departments) to halt all contact and meetings with the tech giant.The Parliament is no stranger to Huawei’s troubles with authorities, as Metsola's so-called alarm bells rang in 2023.In May that year, she said in a letter seen by POLITICO that the house’s safety department had contacted the Belgian authorities to acquire information “with regard to potential threats posed by Huawei’s activities in Belgium and, in particular, the risks for the European Parliament.”She was answering a warning sent by two members of the European Parliament that followed POLITICO’s reporting on an investigation of Huawei by the Belgian intelligence services within wider efforts to shed light on China’s influence operations in Europe by nonstate actors. The lawmakers said those operations were “particularly concerning in the context of the Qatargate scandal.”Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,Huawei bribery scandal: 4 charged with corruption,https://www.politico.eu/article/huawei-bribery-scandal-4-charged-with-corruption/,"
				Searches also took place at the offices of the European Parliament in Brussels on Monday.			BRUSSELS — Four people have been charged on counts of corruption and criminal organization as part of an alleged cash-for-influence campaign by Chinese technology giant Huawei.The Belgian prosecutor on Tuesday said that the four individuals, who were not named, would remain in detention with a fifth person charged with money laundering and released under conditions, according to a statement. New searches also took place at the offices of the European Parliament in Brussels on Monday,  some of whose premises had already been sealed following raids on other addresses on Mar. 13.No further information was given.Last week, the prosecutor’s office said the alleged misconduct took place ""regularly and very discreetly from 2021 to the present day, under the guise of commercial lobbying.""Incidents being investigated include ""remuneration for taking political positions, excessive gifts like food and travel expenses and regular invitations to football matches ... with a view to promoting purely private commercial interests in the context of political decisions.”This story has been updated to clarify addresses were searched on March 13, the same day some of the European Parliament offices were placed under judicial seal.NATO’s boss insisted that the alliance “remains the cornerstone of European security,” despite worries about Trump.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Ottawa’s Foreign Minister Mélanie Joly says tariffs would ultimately be a tax on the American people.America “is as active in NATO as ever, and some of this hysteria and hyperbole that I see … is unwarranted,” says Donald Trump’s top diplomat."
technology,Defense giants want von der Leyen to boost made-in-Europe tech,https://www.politico.eu/article/airbus-dassault-others-press-von-der-leyen-for-made-in-europe-tech/,"
				European industrial and tech firms want the EU’s backing to reduce reliance on the U.S.			Up to 100 European companies and lobby groups including heavyweights Airbus and Dassault are pressing the European Commission to force more home-made technology into the bloc's digital infrastructure.In a letter to European Commission President Ursula von der Leyen and tech sovereignty chief Henna Virkkunen released on Monday, the companies said Europe needs to be ""more technologically independent across all layers of its critical digital infrastructure.""Signatories want “Buy European” requirements for governments to increase demand for homegrown tech and a “sovereign infrastructure fund” to support investments in more capital-intensive industries like microchips and quantum technology.Rapidly deteriorating EU-U.S. relations means Europe's industrial base is exposed to growing risks links to U.S. technology in its supply chains, the letter warns, citing U.S. Vice President JD Vance's speech at the Munich Security Conference as proof. The EU is currently in a stand-off with Washington over tariffs on aluminum and steel specifically, and tensions over tech regulation have grown in recent months. Beyond Airbus and Dassault, the letter was also signed by the French public investment bank Bpifrance, European cloud companies including Scaleway, OVHCloud, and Nextcloud, several tech industry alliances including France Digital, the European Digital SME Alliance and Connect Europe, and smaller European tech companies like Proton and Ecosia.Europe is highly reliant on U.S. technology. European data is primarily stored on U.S. cloud services, with companies like Amazon, Microsoft and Google taking up over two-thirds of the European market. Europe accounts for just 10 percent of the global microchips market. Most recently, U.S. companies like OpenAI have taken the lead on artificial intelligence apps like chatbots.The Commission needs to “mobilize industry” for a “continent-wide strategy” to make sure Europe has its own alternatives in these sector, the letter read.Frank Karlitschek, CEO of German file storage provider Nextcloud, which signed the letter, said “I don’t think the goal is to be completely independent from the U.S. or the rest of the world … but at least have some assets so that we can at least negotiate.”The plea follows an earlier industry initiative called EuroStack, which entails the idea of building out a core European tech infrastructure across three layers (hard infrastructure, intermediary services such as cloud services and applications) and reducing Europe’s many dependencies on U.S. Big Tech.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,Europe’s great 5G con,https://www.politico.eu/article/europeans-missing-out-5g-data-shows-smartphone-internet-innovation/,"
				Slow rollout of full-fledged 5G is holding Europe back while China and the U.S. race ahead.			BARCELONA — When it comes to 5G, your smartphone is fooling you. Many Europeans today might see a 5G icon when unlocking their phone, but are most likely still riding on a lower-grade connection of boosted 4G.Europe is lagging behind China and the United States on rolling out top-level mobile internet known as 5G standalone (SA), so much so that some research suggests only 2 percent of Europeans are connecting to it.The lack of full-fledged 5G threatens to stall European innovation, keeping the bloc's industry stuck in the slow lane while other parts of the world speed ahead. Industry officials warn the lag is aggravating Europe's competitive decline and the bloc's ability to attract investment.""At the start of the 5G cycle, vendors and operators put up huge promises about how it is going to enable robotic surgeries, autonomous cars, all this different stuff,"" but none of that can be delivered until standalone architecture is in place, said Luke Kehoe, an industry analyst at connectivity intelligence firm Ookla.European companies are missing out on faster speeds and game-changing capabilities that were supposed to take the industry to the next level — making factories smarter and more automated. Ultra-connected, robot-packed plants are still a work in progress, partly because operators haven't fully upgraded networks, especially right down to the core parts, to the full 5G standard.Trade association Connect Europe estimated that only 40 percent of the European population was covered by 5G standalone by the end of last year, behind North America (91 percent) and Asia-Pacific (45 percent).But Ookla, which is behind the online tool Speedtest, crunched the data and found that fewer than 2 percent of Europeans are actually connecting to it today.""We did see very, very clearly that Europe is markedly behind,"" Kehoe said.5G non-standalone (NSA) — which Europeans mostly have today — is like putting a turbo engine in an old car. It boosts the speed but still relies on the previous 4G infrastructure.5G standalone, on the other hand, is like building a new high-speed train system from scratch. It requires time and money to optimize and upgrade the full network.If anything, the sluggish roll-out ""is an indication that we do not have the investment environment to compete,"" according to John Giusti, the chief regulatory officer for GSMA, the global association of mobile operators.The bloc's biggest telcos have warned for years that the regulatory landscape, market fragmentation and restrictive merger policy in Europe have been squeezing profits and stretching their wallets thin.""We don't have the return on capital coming in to the sector to further invest and strengthen our networks. That is the core issue,"" Giusti claimed.Meanwhile, China — with more than twice as many robots in its factories as the EU — has made 5G standalone a policy priority, Kehoe said.The country has a ""huge base of enterprises that are using 5G SA in a manufacturing context for very, very low latency,"" the critical time that data takes to travel to a server and back. ""That's where I think Europe would miss out now.""India is also thriving, driven by its largest operator Reliance Jio, which leapfrogged the non-standalone phase and rolled out standalone infrastructure from day one.But all hope is not lost for the old continent, as Ookla's Kehoe underscored. ""Fiber is particularly important in terms of competitiveness and, on that matter, Europe is doing very, very well.""It's not just about the money, or lack thereof, going into next-gen infrastructure.""What you see in Europe is actually very rational investors' behavior,"" said Robert Mourik, chair of the BEREC group of European telecom regulators.It's a classic ""chicken-and-egg"" problem, he argued. ""We are not investing too far ahead of the demand"" — noting the industry’s timid appetite for something new — while also recognizing that struggling operators need to focus on clear revenue opportunities.Connect Europe reported nine new commercial launches of 5G SA networks last year. It acknowledged that slow adoption ""is largely due to operator concerns that the return on investment is unclear, the technology is immature and the migration from 5G to 5G SA is disruptive.""For manufacturers selling the 5G kits, Europe needs to step on the gas. ""I think the risk is we fall even further behind on both the existing industries but also missing out"" on the ones ""we don't see yet,"" said Jenny Lindqvist, Ericsson's head of market for Europe.Europe needs to play catch-up, she emphasised. ""We have other markets outside of Europe where the infrastructure is there and we start seeing the new use cases."" Chinese tech giant is at the center of Belgian investigation into wrongdoing.Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. "
technology,Huawei bribery scandal: What we know so far,https://www.politico.eu/article/huawei-bribery-scandal-eu-chinese-tech-lobby-money-lobbying/,"
				China’s 5G darling and the European Parliament are caught in a sprawling corruption probe in Belgium. 			
				This article is also available in: French			BRUSSELS — The European Union's center of power is reeling from a fresh corruption scandal involving Chinese technology giant Huawei and the European Parliament.Investigators are probing allegations of ""active corruption within the European Parliament,"" Belgium's federal prosecutor's office said Thursday, later adding that ""the alleged bribery is said to have benefited Huawei.""The case has echoes of the 2022 Qatargate corruption scandal, which saw several members of the legislature arrested and investigated. It breathes new life into longstanding concerns over shady lobbying practices in Brussels — this time with a controversial Chinese tech firm at the center of the affair.Dutch investigative news outlet Follow The Money and Belgian publications Le Soir and Knack were the first to report on the news.Here's what we know about the case so far, based on information from Belgian federal public prosecutors and conversations with more than two dozen EU and industry officials impacted by the scandal:The new investigation zones in on Huawei, the Chinese technology giant that was once a lobbying powerhouse in Europe, as well as on the Parliament.Incidents that are being investigated include ""remuneration for taking political positions, excessive gifts like food and travel expenses and regular invitations to football matches ... with a view to promoting purely private commercial interests in the context of political decisions,"" Belgian prosecutors said in a statement.They said the alleged misconduct took place ""regularly and very discreetly from 2021 to the present day.""Police raided 21 addresses in Brussels, Flanders, Wallonia and in Portugal and arrested several people.According to Follow The Money, Le Soir and Knack, investigators are looking into activities linked to 15 former and current MEPs. The publications said one senior lobbyist from Huawei in Brussels was a key suspect. POLITICO has not independently verified the information.Two people working in the building of Huawei's main lobbying office for the European Union in Brussels told POLITICO they had seen police officers enter on Thursday morning and added they were still on the premises at noon. Police officers later left Huawei's Brussels offices carrying four boxes with documents and various seized materials.The company on Thursday scrambled to respond to the development. A spokesperson said in a statement: “Huawei takes these allegations seriously and will urgently communicate with the investigation to further understand the situation. Huawei has a zero tolerance policy towards corruption or other wrongdoing, and we are committed to complying with all applicable laws and regulations at all times.”The prosecutor's office announced on Thursday afternoon it had ""requested that seals be affixed to the premises of the European Parliament, more specifically to the offices allocated to two parliamentary assistants allegedly involved.""One door to offices that are part of the Italian delegation in the European People's Party (EPP) was later marked with signs declaring “SCELLES JUDICIAIRES” and “Absolutely forbidden to open this door,” and sealed with blue and white police tape.The second sealed office, part of the Bulgarian delegation in the Renew Europe group, belonged to Adam Mouchtar, a long-time official and current assistant to newly elected MEP Nikola Minchev. Mouchtar was also co-founder of a group called EU40 that had as its president Greek politician Eva Kaili — a key figure in the Qatargate corruption probe.Mouchtar confirmed to POLITICO that his office had been sealed but denied any wrongdoing. His boss, Minchev, announced on Friday he had suspended Mouchtar from his duties. The other sealed office did not have the customary name tags at the door. Parliamentary records indicated that the office belonged to the assistants of long-time Italian conservative MEP Fulvio Martusciello and his party peer Marco Falcone. It is unclear which of the assistants and MEPs would be impacted by the investigation.Contacted, Martusciello said the office sealed ""is not mine"" but declined to provide more information, including whether it belonged to any of his assistants. Falcone and his assistants did not respond to POLITICO's request for comment prior to publication of this article. Falcone told Italian newspaper Corriere della Sera: ""Neither of my two assistants is involved nor the intern who arrived 15 days ago. We have never had contact with Huawei and our parliamentary activity in these nine months [since the start of the term] has never involved this sector.”Falcone's office sent a statement to journalists on March 18 stating the office was returned to his assistants. Falcone said in the statement: ""This office was sealed by the authorities last Thursday. Yesterday afternoon, the DG Safe of the European Parliament removed the seals which, I want to remind you, were placed despite the full extraneousness — mine and that of my assistants Mr Francesco Vasta and Mr Paolo Campisi — to the Huawei investigation,"" adding that ""our parliamentary activity and the meetings held with stakeholders in recent months have never concerned this area.""Throughout most of the 2010s, Huawei poured millions of euros into lobbyists and PR campaigns in Europe and was considered a friendly face cuddling up to power. The company threw lavish parties in glamorous venues featuring fancy buffets and dance performances — like its reception celebrating the Chinese new year at the Concert Noble in Brussels — and was known for thanking contacts with generous gift bags, some including a Huawei phone. From 2019 onward, the stakes increased. The company tried to stave off a push to reduce the reliance of Western countries on its 5G equipment over security and espionage concerns. To navigate the geopolitical storm, the firm offered six-figure salaries to former Western journalists and politicians with direct lines to places of power like the Elysée and Westminster.In the past two years Huawei has lost much of its clout in Brussels, as the mood against Chinese tech firms turned and European governments aligned on taking a more cautious approach to using Huawei’s 5G equipment in their networks. At the EU level, the European Commission in 2023 announced moves to block it and ZTE from EU research funding and to stop contracting operators using Chinese equipment.The firm’s Brussels office also saw departures by lobbyists and communications officials.According to EU transparency register data, Huawei Technologies spent between €2 million and €2.25 million on EU lobbying in 2021, 2022 and 2023 — a lot, but still below its lobbying costs in preceding years, which were estimated at around €3 million in 2018, 2019 and 2020.Huawei in October declared it had 11 full-time EU lobbyists, nine of whom were accredited to access the European Parliament. At its peak it declared 21.Huawei also listed as intermediaries Acento Public Affairs, Alber & Geiger, Hill & Knowlton International Belgium, and MUST & Partners. Acento and Alber & Geiger also served as Huawei’s intermediaries the year before, with Huawei declaring representation costs of €200,000 and €600,000, respectively.Huawei has been embroiled in scandals and investigations in several countries across the globe, including in France, where it faced a case involving a former minister and member of the European Parliament, Le Soir wrote last week. The Parliament is no stranger to Huawei’s troubles with authorities. In May 2023 Parliament President Roberta Metsola said in a letter seen by POLITICO that the house’s safety department had contacted the Belgian authorities to acquire information “with regard to potential threats posed by Huawei’s activities in Belgium and, in particular, the risks for the European Parliament.” She was answering a warning sent by two MEPs that followed POLITICO’s reporting on an investigation of Huawei by the Belgian intelligence services within wider efforts to shed light on China’s influence operations in Europe by non-state actors. The lawmakers said those operations were “particularly concerning in the context of the Qatargate scandal.”Belgium's intelligence service had requested interviews with former employees of the company’s lobbying operation, POLITICO reported. The intelligence gathering was part of activities by security officials to scrutinize how China may be using non-state actors — including senior lobbyists in Huawei’s Brussels office — to advance the interests of the Chinese state and its Communist party around the EU and NATO headquarters in Brussels. Belgium’s federal public prosecutors clarified last week that their investigation was looking at corruption “with a view to promoting purely private commercial interests in the context of political decisions” — which would suggest the Chinese government was not involved.Both the Parliament and the Commission on Friday banned Huawei lobbyists from entering their premises. The ban would affect Huawei’s lobbyists signed up to the EU transparency register. The Parliament’s ban applies to all premises in Brussels, Strasbourg and Luxembourg and to the liaison offices the institution holds across EU countries.The Commission announced they would instruct commissioners’ cabinets and all the departments (directorates-general) “to immediately suspend contacts and meetings with Huawei until further notice,” spokesperson for transparency Olof Gill said.Parliamentarians were quick to call for reforms to increase transparency at the institution. A block of right-wing lawmakers — including from the political group of Parliament President Roberta Metsola — have held back the creation of a common ethics body that would set up common ethical standards across EU institutions. The new scandal is now prompting factions in favor of the body to speak up.“These developments highlight the critical need for robust oversight and accountability,” said Victor Negrescu, the Parliament’s vice president for transparency and anti-corruption and a Romanian social-democrat member.Dutch liberal member Bart Groothuis said the institution had to “demonstrate we have learned from Qatargate … so no ifs or buts, but clear and forceful measures should be taken.”Nicholas Aiossa, director at Transparency International’s office in Brussels, said “if MEPs want to protect the integrity of the Parliament, they need to bring about swift, wide-ranging and substantial ethics reform.”Metsola has so far not commented on the scandal in a public statement.Elisa Braun, Max Griera, Hanne Cokelaere, Antoaneta Roussi, Mathieu Pollet, Aitor Hernández-Morales, Sarah Wheaton, Clea Caulcutt and Laurens Cerulus contributed reporting.This story has been updated to include a comment from MEP Marco Falcone.Drawing the top stories around the globe.	   “Liberation Day” arrived at the White House and President Donald Trump, as promised, slapped sweeping tariffs on the world. But what comes next may be less predictable …Greenland’s “Great Race” isn’t just a dog sled competition. It’s increasingly a hunt for critical minerals and AI data centers — two national security priorities for President …Drawing the top stories around the globe."
technology,Huawei banned from Parliament and Commission over bribery probe,https://www.politico.eu/article/huawei-banned-from-european-parliament-over-bribery-allegations/,"
				Huawei is at the center of a corruption investigation by Belgian prosecutors.			The European Parliament and Commission on Friday blacklisted Huawei lobbyists following allegations of bribery linked to the Chinese technology giant's lobbying activities in Brussels.""The Parliament decided, as a precautionary measure, to suspend the access to Parliament of representatives attached to the Huawei company with immediate effect,"" a Parliament spokesperson said. The ban is temporary and will be in place at least until the authorities conclude their investigation, a Parliament official told POLITICO.Similarly, the Commissioners’ cabinets and all the departments (directorates-general) “will be instructed to immediately suspend contacts and meetings with HUAWEI until further notice,” spokesperson for transparency Olof Gill said.The firm is at the heart of a new corruption scandal that involves ""preliminary charges of active corruption, forgery of documents, money laundering"" at the European Parliament, Belgian federal prosecutors said Thursday.Huawei had nine people registered to lobby EU institutions when it last updated its entry in the Transparency Register in October.The ban would affect Huawei’s lobbyists registered to enter Parliament's premises. It applies to all the premises in Brussels, Strasbourg, Luxembourg and across the liaison offices the institution holds across EU countries.Police on Thursday sealed two offices belonging to parliamentary assistants. Authorities have raided 21 addresses in Brussels, Flanders, Wallonia and in Portugal, and several people have been arrested, prosecutors said. A Huawei spokesperson did not immediately respond to a request for comment, but said in an earlier statement the firm ""takes these allegations seriously and will urgently communicate with the investigation to further understand the situation."" Elisa Braun contributed to the reporting. This story has been updated.Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,Huawei bribery scandal reignites EU corruption fight,https://www.politico.eu/article/huawei-bribery-scandal-anti-corruption-eu-qatargate-ethics/,"
				Two years after Qatargate, Parliament is still split over reform in its ethics checks.			AI generated Text-to-speechFor the second time in as many years, the European Parliament is embroiled in a major corruption scandal. But its politicians are still divided on how to stop it from happening.Belgian authorities sealed two offices in the Parliament on Thursday as part of a broader bribery probe into Chinese technology giant Huawei’s lobbying activities in Europe. The operation prompted flashbacks to the 2022 Qatargate scandal, when the Gulf state was accused of having sought to influence parliamentarians through bribes and gifts.Qatargate triggered plans from the EU’s top leaders to crack down on corruption and shady lobbying practices. But a block of right-wing lawmakers — including from the political group of European Parliament President Roberta Metsola — have held back the creation of a common ethics body that could hold lawmakers accountable. On Thursday, calls to unblock the much-needed reforms sounded louder than ever.“These developments highlight the critical need for robust oversight and accountability,” said Victor Negrescu, Parliament’s vice president for transparency and anti-corruption and Romanian social-democrat member. Dutch liberal member Bart Groothuis said the institution had to “demonstrate we have learned from Qatargate … so no ifs or buts, but clear and forceful measures should be taken.” Parliament’s right-wing majority, led by the center-right European People’s Party (EPP), has slowed down the implementation of a common ethics body since the start of the new term. The EPP is the chamber’s largest political group and counts Metsola as a member. It also includes Commission President Ursula von der Leyen’s party among its members.The EPP has long opposed the body’s creation; it argues the body could become an unchecked disciplinary chamber for lawmakers. The group has slowed down the nomination of the body’s experts and, two weeks ago, it voted alongside far-right parties to axe the €110,000 allocated to the body. And yet, it was Metsola herself who promoted the idea in the wake of the Qatargate scandal last mandate. The ethics body was part of a 14-point reform plan launched by the Maltese Parliament president in 2023 that also included raising awareness around transparency obligations and conflicts of interest issues, and whistleblowing training.Metsola “has failed to take the necessary measures to break away from the opacity that enables such practices” that underpinned Qatargate and are at play in the new Huawei bribery allegations, said Manon Aubry, co-chair of The Left group. Loránt Vincze, the EPP’s chief lawmaker in the constitutional affairs committee, on Thursday rejected the connection between the new bribery investigation and the ethics body. “No law or ethics body will ever be enough to prevent all irregular or even criminal activity,” he said, adding that about 85 percent of EPP members rejected the ethics body upon its creation.Instead, Vincze pointed the finger at Belgian authorities: “It is concerning that Qatargate has so far led to no indictments of MEPs, while a new Belgian investigation has recently been leaked, further tarnishing the reputation of the European Parliament.” “I call for greater professionalism from the Belgian authorities, especially when their statements impact the European Parliament as an institution,” Vincze said.But other lawmakers called for tougher transparency requirements, including the final implementation of the ethics body.“This new corruption scandal once again exposes the failures of European institutions in ensuring the integrity of European representatives and the protection of democracy,” Aubry said.One of the last steps of Metsola’s 14-point reform plan includes new transparency regulations for the Parliament’s administration, and is in the process of being formally adopted. Staff will have to declare meetings with lobbyists and third country representatives in a database but without revealing the names of the individuals they meet. But there’s a caveat:  political group staff, unlike administration staff, would only be required to report meetings on a voluntary basis, and so far only the liberal Renew Europe, The Greens group and The Left confirmed they will ask staff to declare the meetings. Two officials said Parliament’s political groups are currently negotiating to follow a common system of declaring meetings.With Thursday’s new allegations of bribery, corruption, forgery of documents and money laundering, the pressure on European Parliament members to crack down on malign lobbying is expected to rise further. “These new allegations are as sweeping and serious as Qatargate and make a mockery of democracy at the European Parliament,” said Nicholas Aiossa, director at Transparency International’s office in Brussels. “If MEPs want to protect the integrity of the Parliament, they need to bring about swift, wide-ranging and substantial ethics reform.”Antoaneta Roussi, Elisa Braun and Mathieu Pollet contributed reporting. Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,Huawei bribery scandal rocks European Parliament,https://www.politico.eu/article/belgian-police-raid-huawei-lobbyists-as-new-scandal-rocks-eu-parliament/,"
				Chinese tech giant’s offices raided and Parliament offices sealed in case that echoes the 2022 Qatargate investigation.			BRUSSELS — Authorities raided more than 20 addresses and sealed two offices in the European Parliament on Thursday, as part of a spiraling bribery probe into Chinese technology giant Huawei's lobbying activities in Europe.Authorities ""have an ongoing investigation on preliminary charges of active corruption, forgery of documents, money laundering at the European Parliament,” a spokesperson for the Belgian Prosecutor’s office said. The ""alleged bribery"" would have benefited China's Huawei, the office later added.Police raided 21 addresses in Brussels, Flanders, Wallonia and in Portugal, and several people have been arrested, prosecutors said.The European Parliament is already facing intense scrutiny over foreign states' influence on EU decision-making in the Qatargate scandal that erupted in December 2022, when the Gulf state was accused of having sought to influence Brussels and the European Parliament, in particular through bribes and gifts via intermediary organizations.Two offices in the European Parliament were sealed by police on Thursday, POLITICO found. One belonged to Adam Mouchtar, a long-time official and current assistant to newly elected MEP Nikola Minchev. Mouchtar was also co-founder of a group called EU40 that had as its president Greek politician Eva Kaili — a key figure in the Qatargate corruption probe.Mouchtar confirmed to POLITICO his office was sealed but denied any wrongdoing.The other sealed office did not have customary name tags at the door. Parliament records indicated that the office belonged to assistants of long-time Italian conservative MEP Fulvio Martusciello and for his party peer Marco Falcone. It is unclear which of the assistants and MEPs would be impacted by the investigation. Contacted, Martusciello said the office sealed ""is not mine"" but declined to provide more information, including whether the office belonged to any of his assistants. Martusciello declined to comment on the allegations at the center of the probe.Falcone and his assistants did not respond to POLITICO's request for comment prior to publication of this article. His office sent a statement to journalists on March 18 stating the office was returned to his assistants. Falcone said in the statement: ""This office was sealed by the authorities last Thursday. Yesterday afternoon, the DG Safe of the European Parliament removed the seals which, I want to remind you, were placed despite the full extraneousness — mine and that of my assistants Mr Francesco Vasta and Mr Paolo Campisi — to the Huawei investigation,"" adding that ""our parliamentary activity and the meetings held with stakeholders in recent months have never concerned this area.""The new investigation zones in on Huawei, China's technology giant that was once a lobbying powerhouse in Europe but faced setbacks in Europe in the past years over the security risks associated with its ties to the Chinese government.Dutch investigative news outlet Follow the Money and Belgian publications Le Soir and Knack first reported that prosecutors were looking into wrongdoing linked to Huawei. Two people working in the building of Huawei's main lobbying office for the European Union in Brussels told POLITICO they had seen police officers enter on Thursday morning and added that they were still on the premises at noon. Police officers later left Huawei's Brussels offices carrying four boxes with documents and various seized materials. The Belgian public prosecutor's office said the alleged misconduct took place ""regularly and very discreetly from 2021 to the present day, under the guise of commercial lobbying.""Incidents that are being investigated include ""remuneration for taking political positions, excessive gifts like food and travel expenses and regular invitations to football matches ... with a view to promoting purely private commercial interests in the context of political decisions,"" the statement said.Investigators have around 15 former and current MEPs “on the radar,"" Follow The Money, Le Soir and Knack wrote.The prosecutor's office on Thursday afternoon announced it had ""requested that seals be affixed to the premises of the European Parliament, more specifically to the offices allocated to two parliamentary assistants allegedly involved."" A spokesperson from the European Parliament said Thursday afternoon: “We have received a request for cooperation from the Belgian authorities to assist the investigation which the Parliament will swiftly honor.”Victor Negrescu, Parliament's vice president for transparency and anti-corruption, said the allegations ""are deeply concerning,"" adding ""we cannot accept that individuals under accusations are the ones influencing decisions and drafting European legislation.""A Huawei spokesperson said in a statement: ""Huawei takes these allegations seriously and will urgently communicate with the investigation to further understand the situation. Huawei has a zero tolerance policy towards corruption or other wrongdoing, and we are committed to complying with all applicable laws and regulations at all times.""POLITICO reported in 2023 that Belgian intelligence is scrutinizing the operations of the Chinese technology giant, according to confidential documents seen by POLITICO and three people familiar with the matter. The documents and people revealed that Belgium's State Security Service had requested interviews with former employees of the company’s lobbying operation in the heart of Brussels’ European district, as part of intelligence gathering to scrutinize how China may be using non-state actors — including senior lobbyists in Huawei’s Brussels office — to advance the interests of the Chinese state and its ruling Communist party in Europe.Belgian security services are tasked with overseeing operations led by foreign actors around the EU institutions.The country's federal prosecutors said Thursday morning ""the offences were allegedly committed by a criminal organisation"" and were conducted with the aim of promoting ""purely private commercial interests in the context of political decisions.""One ex-lobbyist who worked for Huawei in Europe said in response to the new developments that ""we had a huge pressure to reach out to lawmakers, especially coming from the U.S. It was very difficult to meet with officials because Huawei was persona non grata.""POLITICO in 2023 reported that a senior lobbyist for Huawei in 2020 had called former Internal Market Commissioner Thierry Breton on his personal mobile number, in a phone call that ""appaled"" the commissioner and led to a formal apology letter from Huawei's Rotating Chairman Ken Hu to the European Commission chief.European Commission Spokesperson Thomas Regnier on Thursday declined to comment on the prosecutors' allegations. ""Huawei represents higher risks than other 5G suppliers; this point could be included in risk assessments on tenders within the EU,"" Regnier added, referring to policies implemented in past years to reduce Europe's dependency on the Chinese 5G supplier. The news caused a stir at the European Parliament in Strasbourg, where members of the chamber are gathering this week for a plenary session.Manon Aubry, co-chair of The Left group, said ""the accusations are extremely serious"" and ""again [expose] the failures of European institutions in ensuring the integrity of European representatives and the protection of democracy.""Dutch liberal member Bart Groothuis said he expected ""a clear and forceful response from European Parliament President Roberta Metsola. The credibility of our institution is at stake, so no ifs or buts but a clear and forceful measures should be taken."" Daniel Freund, a German member of the Greens' group in Parliament, said ""it is unfortunately no surprise. Corruption prevention in the EU is inadequate. This case must be quickly investigated.""""If in doubt, Huawei should be banned from the premises for the duration of the investigation,"" Freund said. ""We must finally stop treating such incidents as minor offenses. Corruption must be punished harshly.""Antoaneta Roussi, Elisa Braun and Mathieu Pollet reported from Brussels. Max Griera reported from Strasbourg. Csongor Körömi, Sarah Wheaton and Laurens Cerulus contributed reporting.This story has been updated to include new developments and a comment from MEP Marco Falcone.  NATO’s boss insisted that the alliance “remains the cornerstone of European security,” despite worries about Trump.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Ottawa’s Foreign Minister Mélanie Joly says tariffs would ultimately be a tax on the American people.America “is as active in NATO as ever, and some of this hysteria and hyperbole that I see … is unwarranted,” says Donald Trump’s top diplomat."
technology,"Russia is conducting ‘state-sponsored terrorism’ against Europe, EU chief diplomat warns",https://www.politico.eu/article/russia-europe-diplomat-eu-chief-europe-ukraine-nato-cyber/,"
				Investigation showed pro-Russia groups were offering crypto payments in exchange for hybrid attacks across Europe.			Russian and Iranian agents are behind “state-sponsored terrorism"" against Europe, the European Union's top diplomat said Wednesday, responding to revelations that Russia was recruiting people in Europe to spread disinformation and conduct sabotage and cyberattacks.European public broadcasters revealed Tuesday that pro-Russia hacktivist groups were actively approaching people on social media site Telegram to conduct sabotage and vandalism and support disruptive operations across Europe.Journalists saw and directly received requests to carry out various acts of sabotage, including plastering the EU quarter with anti-NATO stickers and collecting the email addresses of 30 Belgian journalists seen as sympathetic toward the Ukrainians. Participants were promised payments in cryptocurrencies in exchange for the support.""This is the war that is going on in the shadows,"" EU High Representative for Foreign Affairs and Security Policy Kaja Kallas told Belgian broadcaster VRT in response.Recent incidents across Europe range from cyberattacks and espionage to targeted arson, undersea cable sabotage and GPS jamming.These attacks “against us are on the rise,” Kallas said. The EU and NATO have ramped up their defenses against such ""hybrid threats"" in the past months. Kallas singled out Russia and Iran as countries particularly active in Europe.A potential cease-fire between Ukraine and Russia won't stop these types of attacks in Europe, security officials warned.NATO's Deputy Assistant Secretary-General for Innovation, Hybrid and Cyber James Appathurai told VRT that he was “absolutely convinced” that cyberattacks would continue to take place even if Moscow and Kyiv can come to an agreement about putting down their arms.Adversaries “cannot attack us militarily and do not intend to do so. But they are frustrated and want to execute their ambitions in other ways,” Appathurai said.NATO’s boss insisted that the alliance “remains the cornerstone of European security,” despite worries about Trump.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Ottawa’s Foreign Minister Mélanie Joly says tariffs would ultimately be a tax on the American people.America “is as active in NATO as ever, and some of this hysteria and hyperbole that I see … is unwarranted,” says Donald Trump’s top diplomat."
technology,EU justice chief goes to Washington as trade tensions heat up,https://www.politico.eu/article/eu-justice-chief-to-travel-to-washington-amid-tariffs-escalation/,"
				Tech regulation could be the next point of contention between the new U.S. administration and the EU.			AI generated Text-to-speechMichael McGrath, the European Union's justice commissioner, will visit Washington D.C. this week, the first senior EU official to visit after the United States imposed steel tariffs that will hit European industry.McGrath's visit on March 13 and 14 comes a day after the European Commission promised to retaliate against the U.S. move by slapping charges on some €26 billion of U.S exports. The Irishman will join a Thursday event at the Washington-based think tank Center for Strategic and International Studies (CSIS) to talk about EU tech regulation and the ""EU-US digital relations at the current time.""His visit will follow his former boss, Irish Prime Minister Micheál Martin, who met with U.S. President Donald Trump on Wednesday as part of a tradition where the Irish leader hands over a bowl of shamrock to mark St Patrick's Day, which is on March 17. Martin was the first European leader to meet Trump since his infamous Oval Office interview with Ukraine's Volodymyr Zelenskyy.McGrath's advisers confirmed that he is in Washington for two days. He also has meetings with businesses scheduled.McGrath's current boss, Commission Executive Vice President Henna Virkkunen, previously canceled a planned trip to Washington this week where she had tried to arrange a meeting with Meta's Mark Zuckerberg and Apple's Tim Cook.The EU's tech rules have become a transatlantic sore point with Trump joining tech chief executives in complaining about EU enforcement, even threatening tariffs in a Feb. 21 memorandum on “defending American companies and innovators from overseas extortion and unfair fines.”The European Commission has deadlines this month to wrap up digital competition probes into Apple, Meta and Google that could result in fines.This article has been updated.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,"On the EU’s tariff hit list: American chicken wings, motorbikes and … women’s négligées?",https://www.politico.eu/article/on-the-eus-tariff-hit-list-american-chicken-wings-motorbikes-and-womens-negliges/,"
				The European Commission is seeking feedback on a 99-page hit list and respondents have until March 26 to reply.			BRUSSELS — The European Commission has published a list of U.S. products that could be subject to retaliatory tariffs after the Donald Trump administration on Wednesday imposed 25 percent global tariffs on steel and aluminum.The 99-page list is dominated by meat, poultry, fruit and vegetables and alcoholic beverages — and includes chewing gum, communion wafers, nicotine vapes and patches, and ... women’s négligées.Other items read like an attack on the American way of life — including outdoor wear, tents, workshop tools and household appliances. And then there are heavy-duty items like plant machinery, snowplows and motorcycles.Such lists are typically designed to cause economic pain in the home states of Republican lawmakers who could influence Trump to abandon his trade war. Usually straight-laced trade bureaucrats will admit if pressed that compiling them is the most fun part of their job.Earlier on Wednesday, the Commission announced a two-stage retaliation covering €26 billion in EU exports that far exceeded a trade fight that blew up in Trump’s first term.Absent a negotiated settlement it will, from April 1, reimpose measures in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member countries.The EU executive has launched a survey seeking the views of those affected by the U.S. tariffs, setting a deadline for submissions of March 26.European Union joins China, Japan, Taiwan and Korea in U.S. President Donald Trump’s trade sin bin.The first meeting since a bombshell call between Donald Trump and Vladimir Putin puts joint hydrocarbons projects back on the agenda — as Ukraine watches from the sidelines. German automakers would face increased costs while already under pressure from heightened competition.How do tariffs actually work? How far will this conflict escalate? Can Europe escape? We answer all your burning questions. "
technology,EU wields ‘sledgehammer’ against Trump tariffs,https://www.politico.eu/article/eu-tariffs-donald-trump-diplomat-eu-war-defending-nation-bloc/,"
				Brussels strikes back against the U.S. president’s 25 percent levies on steel and aluminum.  			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — The European Union hit back hard as U.S. President Donald Trump imposed 25 percent global steel and aluminum tariffs on Wednesday, announcing a two-stage retaliation covering €26 billion in U.S. exports that far exceeded a trade fight that blew up in his first term.The European Commission said it would, from April 1, reimpose tariffs in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member states.“We deeply regret this measure,” European Commission President Ursula von der Leyen said in an early-morning statement.“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business.”Speaking before the announcement, one European steel industry representative said that Brussels would “go full sledgehammer because they are so fed up with Trump.”The 27-nation bloc — a common market spanning 450 million people — wants to send an unmistakable message that the EU is serious about defending its economic interests should Trump launch a full-scale trade war.The $1.7 trillion transatlantic trade relationship has been pivotal to the West’s postwar prosperity. But Trump, angered by the persistent U.S. trade deficit in goods, sees tariffs as a way to force businesses to bring industrial investment and jobs back to the United States. The U.S. levies on steel and aluminum would hit Canada and Mexico the hardest — but the EU, as the No. 3 supplier of steel to America, would not survive unscathed. Brussels worries that further “reciprocal” tariffs threatened by Trump would, if implemented, hit exports of automobiles, pharmaceuticals and food.The Commission left the door open to a deal with Trump, saying it “remains ready to work with the U.S. administration to find a negotiated solution” and adding that its measures “can be reversed at any time should such a solution be found.”That cut no ice with U.S. Trade Representative Jamieson Greer. “The EU’s punitive action completely disregards the national security imperatives of the United States — and indeed international security — and is yet another indicator that the EU’s trade and economic policies are out of step with reality,” Greer said in a statement.The European Commission, the bloc’s executive, will brief member countries at breakfast time on Wednesday — just a few hours after the U.S. tariffs kicked in at one minute past midnight in Washington, or 5.01 a.m. Brussels time.In the weeks since Trump returned to the White House and started announcing tariffs, the EU has been vocal about being ready to hit back against “unjustified tariffs.” On Monday, Trade Commissioner Maroš Šefčovič said the bloc is ready “to protect its businesses, workers and consumers.”“We can’t rely on the U.S. anymore — it’s a new reality. So we have to be tough hitting back, that’s the only medicine,” one EU diplomat said.Šefčovič visited Washington last month in an attempt to initiate a dialogue on averting a trade war, only to conclude that the Trump administration was not interested. “In the end, one hand cannot clap,” he said on Monday.The United Kingdom, meanwhile, is keeping a low profile. “We’re not going to have a kneejerk reaction,” said an official from the Department for Business and Trade, pointing out that No. 10 is emphasizing the U.K. will “continue to take a cool-headed approach” to tariffs and to Trump’s antagonistic trade policy.EU diplomats, along with the steel industry representative, had expected the EU’s response package to pack more of a wallop than the suspended tariffs dating back to 2018.That’s because the Trump administration — based on his executive orders from mid-February — has changed its tariff practices substantially. Most importantly, aluminum will rise to 25 percent from 10 percent the last time.The EU will also no longer enjoy the quotas extended under the former administration of President Joe Biden, which allowed it to export tariff-free to the U.S. Meanwhile, Trump is adding products made mostly with steel — such as bolts and radiators — to the list of goods subject to tariffs.Camille Gijs, Jakob Weizman, Graham Lanktree, Doug Palmer and Giovanna Coi contributed reporting. This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
technology,Musk blames Ukrainians for cyberattack on X. Experts aren’t convinced.,https://www.politico.eu/article/elon-musk-claim-ukraine-linked-cyberattack-x-draws-criticism/,"
				Evidence of Ukrainian involvement in X disruptions is very thin, cyber experts say.			Cybersecurity experts including the United Kingdom's former cybersecurity chief are pouring cold water over Elon Musk’s suggestion that a large-scale cyberattack on his social media site X came from Ukraine.Musk on Monday said X had been deluged by a “massive cyberattack"" involving ""either a large, coordinated group and/or a country."" The tech mogul and close ally of United States President Donald Trump later told the Fox Business channel that ""there was a massive cyberattack to try to bring down the X system, with IP addresses originating in the Ukraine area.""But cybersecurity experts were quick to push back. “What Mr. Musk has said is wholly unconvincing based on the evidence so far. It's pretty much garbage,"" Ciaran Martin, a former chief executive of the United Kingdom's cybersecurity agency, who now teaches at Oxford University, told the BBC on Tuesday morning. The cyberattack on X  impacted users since at least Monday morning and destabilized many features on the website, such as viewing posts and user profiles. Musk's statements and cybersecurity experts' observations suggest it was a so-called distributed-denial-of-service attack (DDoS), which involves pointing an overwhelming amount of traffic at a website to bring it down.In a DDoS attack, the origin of IP addresses is largely irrelevant: The attacks come from networks of electronic devices spread across the world, called ""botnets,"" that direct the traffic to a targeted website.Martin said that could mean some of those devices were from Ukraine, but “some of them will be from Russia, some will be from Britain, from the U.S., South America, everywhere. It tells you absolutely nothing.”Dmitry Budorin, founder of Ukrainian cybersecurity firm Hacken, said on X that DDoS attacks ""botnets use hijacked devices worldwide, and the IP addresses seen in the attack traffic are just those of the infected machines, not the masterminds."" Reuters reported an industry source saying the amount of traffic coming from Ukraine appeared ""insignificant.""  A pro-Palestinian group called Dark Storm claimed responsibility for the attack on its Telegram channel. Cybersecurity researchers at Check Point Research, which has been tracking the group, told POLITICO the Dark Storm group had appeared to show proof that it had carried out the attack — but a spokesperson for Check Point warned that attribution “remains complex.”The cyberattacks on Monday came after days of organized protests and vandalism at industry sites of Musk's car company Tesla, directly targeting the world's richest man's business interests in protest of his role spearheading massive cuts to government departments.Musk has also clashed with Ukraine's government in recent weeks, including in an ongoing spat about Kyiv's use of his satellite network Starlink.Lukasz Olejnik, a cybersecurity consultant and visiting senior research fellow at King's College London, said “multiple scenarios should be considered"" when analyzing Musk's response, ""including a potential false-flag operation, perhaps trying to blame Ukraine."" “In realistic terms, such a DDoS should not become a world-impacting event. But the figure of Musk and his importance in current U.S. politics changes the outlook,” Olejnik said.Suspicious Russian tankers keep slashing Europe’s internet and power cables. It’s not an act of war … but someday it might be.European Commission proposal would increase force of EU border patrols under Frontex.“Europe cannot afford to remain reactive,” the European Commission will warn in strategy to be unveiled on Wednesday.Iranian transgender man had been seeking to correct Hungary’s asylum register which listed him as a woman."
technology,New air traffic technology can make European skies more sustainable and competitive,https://www.politico.eu/sponsored-content/new-air-traffic-technology-can-make-european-skies-more-sustainable-and-competitive/,"The above column is sponsor-generated content. To learn more about our advertising solutions, click here."
technology,EU and Korea seal digital trade deal,https://www.politico.eu/article/eu-and-korea-seal-digital-trade-deal/,"
				Agreement with Seoul comes as the Donald Trump administration takes aim at the EU’s tech rulebook, which it sees as a trade barrier.			AI generated Text-to-speechBRUSSELS — The European Commission and South Korea agreed a digital trade deal on Monday that will slot into their existing free-trade agreement, with EU trade chief Maroš Šefčovič calling it “nothing short of a major milestone.”The deal amounts to a vote of confidence from Seoul in how the EU regulates tech and e-commerce, and comes as U.S. President Donald Trump appears likely to launch a trade war on Brussels. One target that Trump’s political allies and U.S. Big Tech have in their sights is the bloc’s digital rulebook, which they view as an unfair market barrier.“Politically, it’s an important signal,” a Commission source said ahead of the announcement, referring to the EU’s push to diversify its foreign trade as the $1.7 trillion transatlantic commercial relationship with America deteriorates.“There might be more like-minded countries for the EU to work with than you would have thought,” added the source, who was granted anonymity to speak freely. The EU has racked up accords in recent months, including with the Mercosur bloc of South American countries and with Mexico — and wants to do a free-trade deal with India this year.Šefčovič announced the agreement in Brussels after meeting with Korean Trade Minister Cheong In-kyo. In comments to reporters, he emphasized the importance of the digital deal as efforts to head off a transatlantic trade escalation stall.Although the European Union’s “doors are open,” the United States “does not seem to be engaging to make a deal” to avoid a tariff war ahead of the planned reimposition of U.S. tariffs on steel and aluminum on Wednesday. “We jointly identified the few areas that would allow us to move forward by fostering a mutual benefit. But in the end, one hand cannot clap,” Šefčovič said.The trade commissioner also placed a call with his Thai counterpart on Monday, ahead of a round of negotiations on a trade deal later this month. And he namechecked ongoing talks with Indonesia, Malaysia, the Philippines and partners in the Middle East to deepen commercial ties.Digital trade deals cover data flows, security around personal data, and business-enabling technologies such as digital contracts.In the Commission’s words, the Korean deal will “build consumer trust; ensure predictability and legal certainty for businesses, as well as trusted data flows; while removing and preventing the emergence of unjustified barriers to digital trade.”It’s significant in light of the political crisis in South Korea. President Yoon Suk-yeol was impeached in December and arrested in January after controversially declaring martial law last year. Yoon awaits judgment after a court completed hearings last month.Prime Minister Han Duck-soo, who was seen as attempting to obstruct Yoon’s impeachment, was impeached himself, leaving Finance Minister Choi Sang-mok in charge of the presidency and the prime minister's office.Šefčovič and Cheong met in Brussels on Monday for the annual EU-Korea Trade Committee that oversees implementation of the broader trade agreement, which dates back to 2011.The two sides began discussing the deal in the fall of 2023, right after the EU announced it had reached such an agreement with Japan. Digital issues were not included in the trade negotiations with Japan and Korea because the EU at the time was working on its landmark GDPR privacy legislation.Šefčovič also said the EU wants to close a similar deal with Singapore in the next few months.The EU has already made similar data rules part of agreements with trade partners such as New Zealand and the U.K.This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
technology,"EU social media law isn’t censorship, tech chief tells US critic",https://www.politico.eu/article/social-media-law-does-not-regulate-speech-eu-tech-chief-tells-us-lawmaker-henna-virkkunen/,"
				Henna Virkkunen tells U.S. member of Congress that the EU is ‘deeply committed’ to protecting free speech.			The European Union's social media law ""does not regulate speech,"" EU tech boss Henna Virkkunen told a key U.S. lawmaker who had criticized the bloc's tech rules as censorship.A regulation that largely targets U.S. Big Tech firms, the Digital Services Act is now in the eye of a transatlantic trade row, with President Donald Trump threatening tariffs and U.S. officials blasting EU censorship, echoing earlier comments from Meta Chief Executive Mark Zuckerberg.""The EU is deeply committed to protecting and promoting free speech online and offline,"" Virkkunen said in a letter to United States House Judiciary Chair Jim Jordan dated Feb. 18 and seen by POLITICO. ""Many Europeans have living memories of censorship and persecution during the Cold War under communist regimes.""Virkkunen said the Digital Services Act (DSA) is ""content-agnostic"" and that Brussels and national regulators ""have no power to moderate content or to impose any specific approach to moderation."" Rules defining unlawful speech or illegal content, such as child abuse material, are outlined in separate EU or national legislation.She argued, on the contrary, that the law ""guarantees"" free speech since platforms must be transparent about how they handle content.Jordan had pressed Virkkunen in January to address ""serious concerns with how the DSA's censorship provisions affect free speech in the United States.""He warned that the DSA, which only applies in the EU, ""may limit or restrict Americans' constitutionally protected speech in the United States.""But Virkkunen said the law cannot be used to press platforms to restrict lawful speech in the U.S. or elsewhere.""This is categorically not the case,"" she said, adding that the DSA ""applies exclusively within the European Union.""She went on to argue that the ""real threats to free expression"" lie elsewhere, in countries like Russia, Iran and China.Jordan has emerged as one of the most vocal opponents of the EU's tech regulation, sending letters to both Virkkunen and competition chief Teresa Ribera about the DSA and the EU's digital competition law, the Digital Markets Act.Ribera and Virkkunen also wrote separately to Jordan that the DMA ""does not target U.S. companies,"" POLITICO reported last week.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,EU-US rift triggers call for made-in-Europe tech,https://www.politico.eu/article/push-for-eurostack-as-eu-us-tech-tensions-grow/,"
				Transatlantic tensions are fueling calls for the EU to wean itself off its U.S. tech addiction. It won’t be cheap.			AI generated Text-to-speechBRUSSELS — The European Union is under pressure to step up its tech game and wean itself off a heavy reliance on United States digital infrastructure and services as transatlantic ties hit a new low.That's going to come with a heavy price tag.European data is primarily stored on U.S. cloud services, with companies like Amazon, Microsoft and Google owning over two-thirds of the European market. Europe accounts for just 10 percent of the global microchips market. U.S.-based companies like OpenAI and Anthropic are leading the artificial intelligence revolution. Europe’s U.S. tech addiction has long been brushed aside as a fait accompli. That's now in question as Germany's incoming chancellor warned that Europe needs to ""achieve independence from the USA"" as U.S. President Donald Trump threatens tariffs and withdraws support from Ukraine.Efforts to make Europe more technologically “sovereign” have gone mainstream. The European Commission now has its first-ever “technology sovereignty” chief, Henna Virkkunen. Germany’s incoming ruling party, the center-right Christian Democratic Union, called for “sovereign” tech in its program for the February election.“Mounting friction across the Atlantic makes it clearer than ever that Europe must control its own technological destiny,” said Francesca Bria, an innovation professor at University College London and former president of Italy’s National Innovation Fund. Over the last year, some influential tech policy people — Bria included — have gathered around the idea of a EuroStack. They claim that to build a European tech infrastructure, three layers of core technologies stacked on top of one another must be addressed and tackled simultaneously. The first is infrastructure, such as microchips; the second is intermediaries, such as cloud platforms, a digital ID, or the digital euro; and the third is applications, connected and driven by artificial intelligence. Sovereignty runs through the three layers: chips designed in Europe to power data centers and cloud services that store data locally, on which European AI models are trained. Cristina Caffarra, a competition economist, told POLITICO in January that the point is not to eliminate U.S. Big Tech in those layers but to at least “create some space for European technology.” Bria argues that a more European sovereign infrastructure ensures that “no external power can pull the plug on the EU’s digital backbone,” a risk if relations with the U.S. and China cool. Europe has had promising pilot projects in all layers, but they have either failed to scale or were unsustainable in the long term. The cloud is Europe’s biggest weakness. Cloud services act as the backbone for many public and business services and store sensitive data.Despite the Franco-German Gaia-X push to convince European companies to store data locally with European providers, the share of European cloud providers has consistently declined in recent years. EuroStack advocates see that the tide can be turned only with sustained investment, guaranteed government demand, and unified rules on transferring and securing data. Sebastiano Toffaletti, secretary-general of the Digital SME Alliance and one of the authors of a study on the EuroStack, claims that a Buy European Tech Act could be a decisive step toward a European cloud. “Europe has plenty of industrial capacity that just needs to be federated,” he said. “If the European companies were reassured that governments would buy from them, then they would immediately invest and overcome the fragmentation,” he said. The same goes for AI, he added.Sarah Knafo, a French far-right European lawmaker, suggested in a draft report for the European Parliament that governments should favor sourcing from European companies in some ""strategic markets."" The Commission has separately recommended a ""buy European"" push for governments purchasing climate-friendly products.Cybersecurity entrepreneur Bert Hubert, who has advised the Dutch government, said ""it is madness to continue transferring the running of European societies and governments to American clouds,"" according to a February blog post.Axel Voss, a German center-right member of Parliament, echoed this, telling POLITICO that “we do not have a reliable U.S. partner any longer” and that Europe should develop its own “sovereign AI and secure cloud"" in response.The EU executive has started picking up the pleas for more sovereign European tech, especially in AI.Boosting AI computing capacity in Europe has been one of the Commission's key objectives. Virkkunen in December announced up to €2 billion in investment in seven European sites.The U.S. immediately dwarfed that amount by promising a $500 billion AI hardware plan in January.In response, the EU made an attempt in February to mobilize €200 billion for AI hardware from private investors, companies, EU countries and its own funds.The size of the investment needed is likely the biggest hurdle for building a European tech infrastructure. AI hardware is only one of the three layers needed for a sovereign European tech infrastructure.Bria points to a €300 billion price tag for building out the EuroStack over the next 10 years, as estimated in a recent study commissioned by the Bertelsmann Stiftung think tank.U.S. trade group Chamber of Progress, which includes several U.S. Big Tech companies, estimates that the full cost would be much higher, over €5 trillion.That could be too heavy a burden on the EU budget and financial capacity at a time when hundreds of billions of euros are already flowing to boost defense capacity.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,"Von der Leyen’s first 100 days: Her promises, big wins and fizzles",https://www.politico.eu/article/ursula-von-der-leyen-first-100-days-graded-europe-nato-ukraine-war/,"
				The Commission president promised to pull off seven political feats by March 10. Here’s how she did.			AI generated Text-to-speechUrsula von der Leyen is rounding out the first 100 days of her second term in office — and what a whirlwind it's been.Since the European Commission president won a second mandate, Donald Trump's return to the White House in the United States has upended the transatlantic relationship, calling into question the existence of NATO as well as U.S. support for Ukraine in its defensive war against Russia.The pressure coming from Washington — which has threatened the EU with 25 percent tariffs and warned it may not defend countries that fail to spend enough on defense — has forced the Commission to speed up work on reforms designed to bolster the bloc's defenses and make it more competitive on the global stage. ""On all these issues, the direction of travel was always clear,"" von der Leyen told a press conference on Sunday. ""What has changed is the sense of urgency. Something fundamental has shifted.""Indeed, among the key reforms von der Leyen's Commission is due to present this month is a so-called ""White Paper"" on defense that's meant to spell out options on how Europe can finance a major defense rampup. But Trump's moves on Ukraine, as well as his threats not to defend countries that don't spend enough on defense, have moved that timeline forward, with EU leaders endorsing plans to spend €800 billion in the coming years during an emergency meeting in Brussels last week — front-running the White Paper.In addition to defense, the European Commission president laid out a series of promises for the EU's executive body to fulfill in the first 100 days of its term. But that was before Trump was elected and halted aid to Ukraine, threatened the EU with sweeping tariffs, and threw the established world order into doubt.So, how have von der Leyen's promises held up? Here's POLITICO's verdict.What von der Leyen said: “There is an equally urgent need to decarbonize and industrialize our economy at the same time,” von der Leyen wrote in her second-term manifesto. Her solution: A “Clean Industrial Deal” that would revive the EU’s struggling, heavy-polluting industries — think steel or cement — while reducing their carbon footprint, and also boost manufacturers of new climate-friendly technologies such as electric heat pumps. Did she hit her target? The Clean Industrial Deal arrived on Feb. 26 (day 88) and responded to many of industry’s demands. The strategy outlined steps to reduce energy prices, source raw materials and create demand for low-carbon products. It was more wobbly on financing — with a new $100 billion fund mainly drawing from existing or already earmarked cash and betting on governments volunteering more money — and addressing trade pressures. Meanwhile, although the Commission was also eager to roll back green regulations, its promised 2040 climate target — which green groups, clean-tech firms and EU countries like Denmark wanted to incorporate within the Clean Industrial Deal — has still not been published. Where will the EU go next? The Clean Industrial Deal will unfold over the coming years with more than two dozen legislative proposals, legal reforms and sector-specific “action plans.” The big items for this year include a reformed state-aid framework coming in summer — meant to deliver on some of the investment and energy price promises — and an “Industrial Decarbonization Accelerator Act” toward the end of the year that will establish a label for low-carbon products and made-in-EU green requirements for government spending. And that 2040 target should come soon as well. Score:— By Zia WeiseWhat von der Leyen said: Europe “must do more” to protect its health-care system from an ever-increasing barrage of cyberattacks, which can knock out vital systems or lock doctors and nurses out of sensitive patient data until criminals get a ransom. The EU’s answer? Ramped-up technical support, an early-warning system and rapid response teams.Did she hit her target? Sort of. The EU published its plan on Jan. 15 (day 46), which got a reasonably warm response. There was, however, one big caveat: It all depends on money, and the plan made little mention of that — even though cash remains “the most important issue,” according to Tomislav Sokol, a Croatian member of the European Parliament with the center-right European People’s Party group, in comments made when the plan was published. Digitaleurope, a trade body, reckons the plan is a “good starting point” but echoed concerns about a lack of clarity on cash. Where will the EU go next? The technical: The Commission will now consult on the plan, with various deadlines to hit throughout this year and next. The political: The cash question is for EU capitals to address, said Health Commissioner Olivér Várhelyi when unveiling the plan. “I understand that this is a problem across the board in Europe, that there’s not enough resources dedicated to [protecting data]. But we’re making the point with this proposal that there would have to be,” he said.The success of the plan “will, of course, depend on the support from the European member states,” said Wim Hafkamp, managing director at Z-Cert, the Dutch computer emergency response team for the health sector. Score:— By Sam ClarkWhat von der Leyen said: Von der Leyen pledged to ensure European startups had access to the necessary computing power to compete in the accelerating global artificial intelligence race by “building” massive AI supercomputers, also known as AI factories. With many European startups currently relying on U.S. computing power, the move could also be read as a push to become more technologically sovereign. Did she hit her target? Kind of. On Dec. 11 (day 11), the European Commission announced it would contribute half of a planned €1.5 billion investment into seven European sites. But the victory was short-lived: U.S. President Donald Trump assumed office in January and announced a $500 billion AI hardware plan, moving the goalposts somewhat. So the Commission moved again. On Feb. 10, at the AI Action Summit in Paris, von der Leyen unveiled a plan to mobilize €200 billion for hardware, including a €20 billion fund to build four AI gigafactories aimed at training the most complex AI models. Where will the EU go next? On this one we’re only getting started. The Commission is expected to grant funding to five more AI factories in March. The road to the gigafactories is even longer: There’s no clear breakdown on how much funding will be provided, nor any details on how much of that will come from the EU budget. Score:— By Pieter HaeckWhat von der Leyen said: In her political guidelines the Commission president said she would present a White Paper on the Future of European Defence to identify investment needs. In the past months the Commission made clear that the policy document would also include financing options to help the bloc massively boost defense spending. Did she hit her target? Yes and no. Von der Leyen technically hasn’t presented her White Paper yet, with publication slated for March 19 (day 109). However, on March 4 (day 91) she did present a plan to send loans of up to €150 billion to governments to help them increase their military expenditure. The money can be spent on artillery, missiles, ammunition, drones and anti-drone systems, as well as on weapons for Ukraine. Von der Leyen also said she would trigger the EU’s national escape clause, a mechanism to prevent defense spending from being included in the punishment mechanism for countries breaching the bloc’s deficit rules. Her plans were approved by EU leaders on March 6. Where will the EU go next? The Commission now has to translate the financing proposals into actual legislative instruments. The EU’s executive branch is also still expected to present the White Paper on Defense, which could include more financing options, as well as more details on the EU’s industrial priorities for armament. Score:— By Laura KayaliWhat von der Leyen said: Von der Leyen pledged to present a Vision for Agriculture and Food, building on an agrifood roundtable held during the first half of last year. “We need to overcome contradictions … that’s why the strategic dialogue on the future of farming has begun,” she told lawmakers in July. “I’ve promised to listen carefully and to draw important lessons.”Did she hit her target? On Feb. 19 (day 81), Agriculture Commissioner Christophe Hansen delivered an underwhelming vision that tried to please everybody with better conditions for farmers, fairer supply chains and a rethinking of sustainability policies.But for many, this big, fancy vision — which is to replace the previous Farm to Fork Strategy — has landed more as a farmer-friendly agenda that’s big on promises but short on cash.Where will the EU go next? The Commission is expected to move forward with the first part of the plan in April: to cut red tape on the €300 billion-plus farm budget by easing requirements to access the cash.By the end of the year, Hansen wants to crack down on other rules affecting farmers beyond the Common Agricultural Policy (CAP) — such as environmental and food safety policies.Score:— By Paula AndrésWhat von der Leyen said: In her guidelines von der Leyen said young people should be able to use their voices and shape their futures. She also said she wanted her commissioners to lead by example and to engage in “youth policy dialogues” within the first 100 days. Did she hit her target? Yes, albeit narrowly. Sixteen of the 28 commissioners held their youth policy dialogues the week before the deadline (days 93-97), while three commissioners are set to hold dialogues on March 10 (day 100): justice chief Michael McGrath, tech sovereignty boss Henna Virkkunen and innovation lead Ekaterina Zaharieva. Deadline work resonates well with young people. Where will the EU go next? The youth policy dialogues are meant to be a recurring event in which commissioners talk to young people once a year. The bigger question is how — or if — this will feed the Commission’s policy work. Youth Commissioner Glenn Micallef, who played wheelchair basketball during his dialogue in Athens, told POLITICO that the experience of wheelchair sports is “a whole new dimension” compared to just reading up on inclusive sports. Score:— By Pieter HaeckWhat von der Leyen said: Outlining priorities several months ago, von der Leyen zeroed in on enlargement — expanding the bloc’s membership — as well as the need to tweak the EU’s rules to make space for new members. Paris and Berlin have both argued that if the EU is grow to as many as 30 or 35 members it will need to change rules on agricultural aid, for instance, to ensure that existing members aren’t penalized.This gave rise to von der Leyen’s call for an in-depth “policy review” examining all aspects of enlargement. In a foretaste of this intricate process — potentially including changes to the EU’s basic treaties — a preparatory document published in July was 22 pages long.Did she hit her target? Insofar as a document will be published, yes. That’s what the Commission does. But this is one case where the savage geopolitics of the day is likely to derail the EU’s natural bureaucratic pace.  Where will the EU go next? Von der Leyen has already flagged that Ukraine could join the bloc by 2030, possibly earlier. Her enlargement commissioner, Marta Kos, has floated the possibility of giving Ukraine faster access to parts of the EU's single market as part of an accelerated accession process. ""We are also working on plans to accelerate the integration of Ukraine into many more parts of the Single Market — to attract more investments, to strengthen Europe-wide value chains, and to create new opportunities for both Ukrainian and European businesses,"" Kos said last week. Naturally, all this happened before the policy review was published.Score:— By Nicholas VinocurDrawing the top stories around the globe.	   “Liberation Day” arrived at the White House and President Donald Trump, as promised, slapped sweeping tariffs on the world. But what comes next may be less predictable …Greenland’s “Great Race” isn’t just a dog sled competition. It’s increasingly a hunt for critical minerals and AI data centers — two national security priorities for President …Drawing the top stories around the globe."
technology,Poland ready to seek Starlink alternatives for Ukraine if Musk proves ‘unreliable’,https://www.politico.eu/article/poland-is-ready-to-seek-starlink-alternatives-if-musk-proves-unreliable/,"
				Musk responds: “There is no substitute for Starlink.”
			Poland says it’s prepared to seek alternatives to Elon Musk's Starlink network to provide satellite internet access to Ukraine if the tech billionaire proves to be an ""unreliable provider."" Warsaw is Ukraine's largest donor to finance terminals for the space-based communications system, which is a critical tool in Kyiv's fight against Russian President Vladimir Putin's invasion. But Musk is reportedly threatening to pull Kyiv's access to his satellite network, and in an X post on Sunday repeated his threats, claiming that Ukraine's ""entire front line would collapse"" if the country's troops were cut off from Starlink, which is operated by Musk-owned SpaceX. In response to Musk's post, Polish Foreign Minister Radosław Sikorski emphasized that the Polish Digitization Ministry is one of the largest providers of Starlink to Ukraine, with Warsaw funding half of the 42,000 Starlink terminals operating in the country at a cost of about $50 million a year.“If SpaceX proves to be an unreliable provider we will be forced to look for other suppliers,” Sikorski wrote in his post on X, calling out the ""ethics"" of Musk's ""threatening the victim of aggression.""Musk responded: ""Be quiet, small man. You pay a tiny fraction of the cost. And there is no substitute for Starlink."" U.S. Secretary of State Marco Rubio also replied to Sikorski's post, demanding that more gratitude be shown for Starlink.""No one has made any threats about cutting Ukraine off from Starlink,"" Rubio said on X. ""And say thank you because without Starlink, Ukraine would have lost this war long ago and Russians would be on the border with Poland right now."" After Sunday's spat, Poland's Prime Minister Donald Tusk chimed in: ""True leadership means respect for partners and allies. Even the smaller and weaker ones,"" Tusk wrote in English on X, without name-checking Musk. ""Never arrogance. Dear friends, think about it.""As POLITICO reported a week ago, the European Commission is already looking into how it can help Ukraine secure alternative satellite communications capacity in the wake of Musk's threats. Musk framed his Sunday post as a message to end the war in Ukraine, but according to press reports the Starlink threats may be part of Washington's strategy to pressure Kyiv into a deal over Ukraine's critical minerals. A possible mineral deal between Ukraine and the U.S. could be on the table in Saudi Arabia on Tuesday, when delegations from the two countries meet there for the first time since Ukrainian President Volodymyr Zelenskyy clashed with U.S. President Donald Trump at the White House in late February. This story has been updated.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Decision in Yerevan paves the way for a long and winding (and potentially fruitless) quest toward a place in the bloc.Romania, one of the last EU members not included in the Visa Waiver Program, had been due to join in March.German and Finnish authorities have taken similar steps, and Belgium is planning to do the same, as the Trump administration removes some protections for sexual minorities. "
technology,US curtails Ukraine access to satellite imagery,https://www.politico.eu/article/us-satellite-company-maxar-cuts-off-ukraine-access-imagery-report-says/,"
				Maxar, a leading provider of commercial satellite imagery to Ukrainian users, says the Trump administration suspended access in Ukraine.			The Trump administration has suspended access to some satellite imagery by Ukrainian accounts, the U.S. National Geospatial-Intelligence Agency (NGA) said on Friday.The move, which cuts off Ukraine’s access to the the NGA's commercial satellite imagery platform, follows U.S. President Donald Trump’s recent decision to stop supplying American military intelligence data to Ukraine. ""In accordance with the administration’s directive on support to Ukraine, NGA has temporarily suspended access to the Global Enhanced GEOINT Delivery system, or GEGD, which is the primary portal for access to U.S. government-purchased commercial imagery,"" the agency said in a statement reported by several media outlets.American satellite mapping company Maxar Technologies, which has a contract with the GEGD, said earlier Friday that the Trump administration had ""decided to temporarily suspend Ukrainian accounts in GEGD.""  Maxar, one of the leading providers of commercial satellite imagery to Ukrainian users, said ""there is no change to other Maxar customer programs.""  Maxar's satellite imagery is used by Ukrainians particularly for tracking the movement of Russian troops and assessing damage to key infrastructure, according to Ukrainian defense publication Militarnyi, which reported on the suspension earlier. Intelligence sharing has also helped Ukraine prepare for and repel Russian missile strikes in the past.However, Kyiv is now grappling with a cutoff in U.S. military aid and intelligence sharing as the Trump administration dials up pressure on Ukrainian President Volodymyr Zelenskyy to strike a rapid peace deal with Russian leader Vladimir Putin. The night after the U.S. halted all intelligence sharing with Ukraine, Russian forces struck Zelenskyy's hometown of Kryvyi Rih with ballistic missiles, killing at least four people and wounding more than 30.POLITICO has contacted other U.S. satellite imagery companies, including Planet Labs, BlackSky and Capella Space, to ask if they are still supplying services to Ukrainian users.This article has been updated.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Decision in Yerevan paves the way for a long and winding (and potentially fruitless) quest toward a place in the bloc.Romania, one of the last EU members not included in the Visa Waiver Program, had been due to join in March.German and Finnish authorities have taken similar steps, and Belgium is planning to do the same, as the Trump administration removes some protections for sexual minorities. "
technology,EU tech chiefs say they don’t target US tech,https://www.politico.eu/article/eu-tech-chiefs-say-they-dont-target-us-tech/,"
				The European Commission pushes back on U.S. criticism of its Digital Markets Act that targets Big Tech.			AI generated Text-to-speechBRUSSELS — The European Union's digital competition law ""does not target U.S. companies,"" the European Commission's technology and competition chiefs told a U.S. congressman in an effort to soothe a transatlantic war of words over the EU's crackdown on Big Tech.Commission Executive Vice Presidents Teresa Ribera and Henna Virkkunen wrote to Jim Jordan, the head of the U.S. Congress Judiciary Committee, to explain the aims of the Digital Markets Act which requires tech companies to open up services to rivals under threat of hefty fines. The law largely targets U.S. giants such as Apple, Meta, Google, Amazon and Microsoft.U.S. President Donald Trump has joined tech chief executives in complaining about EU fines, even threatening tariffs in a Feb. 21 memorandum on “defending American companies and innovators from overseas extortion and unfair fines.” The letter, dated March 6, is the fullest defense so far from the European Commission to U.S. criticisms, responding to Jordan's demand for an EU explanation of its laws.""The objective of DMA enforcement, as in any other piece of EU law, is to ensure compliance – not to issue fines,"" they said, stressing that they are ""fully committed"" to enforcing the law.“We are convinced that the European Union and the United States share the common goal of preventing the harmful effects of monopolization,” they said.Apple, Meta and Google are currently being probed over their compliance with the DMA, facing a March 25 deadline for a decision.A group of EU lawmakers wrote to U.S. Attorney General Pam Bondi and U.S. trade chief Howard Lutnick to stress that the DMA ""is not designed to target companies based on nationality"" and also governs China-based Bytedance in a March 5 letter.“American companies are not only benefiting from the DMA but are also actively calling for its enforcement,” they said, citing Disney, Netflix and Epic Games as potentially benefitting from the law.“The suggestion that the DMA undermines transatlantic relations or serves as a 'tax' on American companies is unfounded,” they said. “The characterization of the DMA as a barrier to innovation is also entirely untrue.""The letter was signed by Anna Cavazzini (Germany, Greens), Andreas Schwab (Germany, EPP), Stéphanie Yon-Courtin (France, Renew), Alex Agius Saliba (Malta S&D),  Cynthia Ní Mhurchú (Ireland, Renew), René Repasi (Germany, S&D), Reinier Van Lanschot, (Netherlands, Greens), Kim Van Sparrentak, (Netherlands, Greens) and Lara Wolters (Netherlands, S&D).Aude van den Hove contributed to this article.This article has been updated with details of lawmakers' letter to U.S. officials.CORRECTION: This article was updated to correct the spelling of Henna Virkkunen's name.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.European groups received some of the biggest fines.The Commission’s first fines under its Digital Markets Act are expected this week.U.S. tech giants must overhaul key products, the European Commission rules."
technology,Albania to block TikTok in the coming days,https://www.politico.eu/article/albania-to-block-tiktok-in-the-coming-days/,"
				Ban follows fatal stabbing of a 14-year-old that may have been linked to arguments on social media.			AI generated Text-to-speechAlbania will block TikTok in the coming days over concerns about children's safety, the prime minister's office told POLITICO.Edi Rama, Albania's prime minister, announced the one-year ban in late December, following the fatal stabbing of a 14-year-old which followed arguments on social media.""We say what we do and we do what we say,"" Rama said in a post on X on Thursday, confirming the ban would now take effect.The decision to block the app was taken in consultation with 65,000 parents and teachers and after its technical feasibility was studied, he said.Opposition figures have said that the ban is an ""abuse of power to suppress freedom of speech in Albania,"" raising alarm over the lack of due process.Back in December, Rama said the government would need six to eight weeks to enforce the ban. In the meantime, the government has had ""very positive dialogue with the company,"" which will come to Albania to demonstrate a series of child safety measures, including in Albania, the prime minister said.TikTok could not be immediately reached for comment. Children's safety online is increasingly a touchstone for European governments with efforts across the region to curb minors' access to social media and devices.Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Bucharest is at the center of a heated debate over social media policing. "
technology,"Parliament to probe EU grants to Shell, VW and migrant NGOs",https://www.politico.eu/article/european-parliament-probe-grants-shell-volkswagen-migrant-ngos/,"
				A fight over how the Commission spends its cash expands to 28 NGOs and business giants.			AI generated Text-to-speechEuropean lawmakers have significantly widened the list of EU grant contracts they want to probe, turning what began as a targeted fight over funding for green NGOs into an open battle between left- and right-wing forces in the European Parliament.According to a letter addressed on Wednesday to Commissioner for Budget Piotr Serafin, obtained by POLITICO, political groups in the Parliament’s Committee on Budgetary Control now want to examine 28 Commission grant contracts to a broad range of recipients.They include contracts with the International Rescue Committee and NGOs working for the inclusion of LGBTQI+ migrants, at the request of center-right and right-wing groups; and with business giants Shell and Volkswagen and trade association BusinessEurope, at the request of left-wing groups. The list includes agreements signed between 2019 and 2024 and totaling €58.2 million, according to data retrieved by POLITICO. The letter is the latest step in a fight brewing in the budget committee over when the Commission should provide organizations with EU cash.It began when the center-right European People’s Party’s claimed the Commission had paid NGOs to lobby the Parliament in favor of the Green Deal, through the so-called LIFE funding program. The Commission later revised its contracts with the NGOs concerned.After the EPP requested that grants awarded to Transparency International and other green NGOs be reviewed, left-wing groups demanded that contracts awarded to businesses be vetted as well. Specifically, the MEPs asked to see contracts pertaining to: the Asylum, Migration and Integration Fund; the justice program of the Commission’s justice department, DG JUST; the LIFE program; support for information measures relating to the Common Agricultural Policy and contracts managed by the Commission’s agriculture department, DG AGRI; the Internal Security Fund Police program; and the Rights, Equality and Citizenship Program, as well as the Citizens, Equality, Rights and Values Program, both managed by the Commission’s home affairs department, DG HOME. They also targeted the CONNEcting Cities Towards Integration actiON project, the Integrated Projects of the European Social Dialogue, the contract of the Alternative Fuels Infrastructure Facility, and the Mobilities for EU project.The private companies and industry associations concerned include: Shell, Volkswagen, Ramboll Consulting, Ricardo Nederland, BayWa Solar Projects, BusinessEurope, the North European Oil Trade Oy, PlantPress, and AgroTV.Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,Trump wants to destroy the EU — and rebuild it in his image,https://www.politico.eu/article/donald-trump-destroy-european-union-brussels/,"Donald Trump won't deal with the EU. The EU can't deal with Trump.By NICHOLAS VINOCURand CAMILLE GIJSin BrusselsIllustration by Nicolás Ortega for POLITICO
				This article is also available in: French			Donald Trump tried and failed to find a chink in the EU’s armor through a trade war in his first term.But now he’s found a more vulnerable spot: The massive security crisis he’s engineered by withdrawing U.S. support for Ukraine is exposing potentially lethal cracks in the 27-nation bloc.Little could please him more. The U.S. president has long seethed with undisguised disdain for the EU, which he has described — inaccurately — as having been created “to screw the United States.” For Trump, the EU sits alongside his other supranational bêtes noires like the World Trade Organization and World Health Organization, which need to be slapped down for fleecing America.In only the first few frantic weeks of his second term, his administration has shown it will give short shrift to Brussels. The EU’s trade chief visited Washington, only for Trump to dial up his tariff plans; its foreign policy chief was brutally snubbed by Secretary of State Marco Rubio; and EU parliamentarians had to fly home with the chastening message that America would defy their tech rules as European “censorship.”The message is clear: Trump will sideline the EU and play divide-and-rule with national leaders. That wasn’t possible in the trade war of his first term, when Europe united to hit him back. And now, splits over the war in Ukraine are asking existential questions of the bloc’s unity.The Trump administration’s anti-EU push now aligns with the Kremlin’s long-standing hostility toward the bloc and is triggering a crisis in Brussels institutions. The EU as a bloc is scrambling to prove its relevance as national leaders, such as French President Emmanuel Macron and U.K. Prime Minister Keir Starmer, step to the fore to take charge of Europe’s response to Trump.The European Council, where the 27 national leaders are supposed to take big foreign policy decisions by consensus, is being agonizingly exposed as too divided and insufficiently nimble to respond to the scale of the storm that Trump is whipping up over Ukraine. Indeed, EU diplomats are already playing down expectations of any major breakthroughs at an emergency Council summit in Brussels this week because of Hungary’s opposition to further aid for Ukraine. Instead, Starmer and Macron are having to work round the EU in ad hoc diplomatic formats, inviting countries such as Turkey and Canada, and conspicuously not inviting the EU’s pro-Russian leaders.The crisis is “moving Europe’s center of gravity back to the national capitals,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a think tank. “The role of the institutions in this context is important but not mission-critical.”“That’s the new equilibrium and the new reality” that the EU’s top officials, Ursula von der Leyen and António Costa, “have to accommodate themselves to,” he added. Von der Leyen heads the EU’s executive Commission while Costa is president of the European Council. One EU diplomat, who like others in this piece was granted anonymity to speak freely, voiced confidence the bloc would be able to weather the Trump hurricane, if only just. “The EU is hanging on by the skin of its teeth but, each time, it does make us stronger,” they said.
Trump is rocking the bloc not only by cozying up to the Kremlin and upending the Western alliance, but also by directly intervening in national politics and supporting the rise of far-right parties.The more pessimistic observers in Europe argue the Trump administration is hell-bent on promoting populist nationalist forces in Europe to help destroy the EU and pull it back to a far looser confederation of countries, all of which would be more beholden to the United States — or, perhaps, to Russia.“What [U.S. Vice President JD] Vance did in Munich … shows a desire to destroy the progressive European Union to create a new one that would be allied with the United States, and would be a Europe of nations with a conservative bent,” said Tanguy Struye de Swielande, professor of international relations at UCLouvain and an expert on EU-U.S. relations.  Trump’s bile over what he calls the “very nasty” EU is nothing new. It has long riled him as a trade heavyweight that runs bumper surpluses in goods with the United States, while relying on America for military protection. Most famously he has fumed over the number of luxury German cars on New York’s Fifth Avenue. Belgium, seat of the EU institutions, is one of his “shithole” countries.But he still had to deal with top EU officials. And in the course of transatlantic arguments, he even took a liking to some of them. Margaritis Schinas, who was chief spokesperson for the European Commission during Trump’s first term, recalls transatlantic relations as being tense, but functional and at times droll in the trade war of the first term.“There was always a bit of a show,” said Schinas, who was chief spokesperson under then-Commission President Jean-Claude Juncker, before becoming a commissioner himself under von der Leyen. “But the fact is that he liked Juncker. He liked [then-European Council President Donald] Tusk. They sniffed each other, and they saw it was OK.”When Juncker travelled to D.C. in July 2018, at the height of EU-U.S. trade tensions, the talks between Trump and the EU’s multilingual Luxembourgish president were “very colorful,” with “lots of jokes, innuendo, petites phrases … It was this very transactional give-and-take that worked.”This time, however, Trump seems in no mood to engage with EU officials. Of all EU leaders, only Italy’s nationalist Prime Minister Giorgia Meloni and Hungary’s Viktor Orbán secured an official invitation to his presidential inauguration, just like other far-right European politicians who crowded the Capitol for the event.While von der Leyen met with Vance — who has repeatedly incurred European outrage — in Munich, neither she nor Costa have scored an in-person meeting with Trump since his inauguration. Those granted time with Trump officials don’t have much to show for it. When EU trade chief Maroš Šefčovič went to Washington in January, he not only came back empty-handed but learned a week after his return that things risked getting even worse than the original threat of reciprocal tariffs.Indeed, it transpired that Trump intended to impose a 25-percent tariff on all imports from the EU, taking no heed of the offers Šefčovič had prepared to avoid a trade war, including buying more American liquefied natural gas and lowering the EU’s own tariffs on cars to match those of the U.S. 
“Šefčovič came very prepared with very clear proposals while the U.S. was still very much on the surface of things,” said a second EU diplomat briefed on the conversations in Washington. “I don’t think they were able to respond to what he put on the table.”“Šefčovič went there with a pedagogical intention. They need it explained to them, because they’re people who live under the bark of their superiors,” they added. A similar dynamic played out when a group of members of the European Parliament, led by German Green Anna Cavazzini, travelled to Washington last month in an attempt to foster dialogue with Republican lawmakers on the EU’s tech laws, which have come in for withering criticism from Vance.The meetings were cordial, with the Europeans doing their best to explain the laws and why, according to them, they were beneficial to U.S. corporations. The group even scored a meeting with Republican member of Congress Jim Jordan.But no sooner had the European lawmakers left than POLITICO published a letter from Jordan’s office, addressed to von der Leyen, in which he demanded that tech firms send him their correspondence with EU officials on how they comply with “censorship regimes.”The letter was “aggressive” and “wrong,” said Sandro Gozi, a centrist lawmaker. It also fit an emerging pattern: Where the Trump administration sees a potential weakness, for instance in the EU’s willingness to fully enforce its own laws against U.S. interests, it’s going all out to “call Europe’s bluff” by defying those laws.“What we can see with Vance, and part of the Big Tech … is that there is an ideological agenda and this is also where we can see a desire to weaken the European Union as a potential power,” added Struye de Swielande from UCLouvain. The exception to this rule: Hungary’s European commissioner, Olivér Várhelyi — whose country is far more closely allied to the Trump-Putin camp — who met several senior members of the president’s Cabinet during a trip to D.C. in late February.As for top EU diplomat Kaja Kallas, she didn’t even get a chance to meet with her U.S. counterpart. The former Estonian prime minister and Russia hawk, who rose to her post last year, was meant to meet Rubio late last month.Kallas duly arrived in Washington, only to learn that Rubio would be unable to see her due to “scheduling issues.” Speaking to CBS that weekend, Kallas played down the missed encounter, but the damage had been done.“This is the brutal reality of this transatlantic rupture,” said Rahman. “Of course there’s a role for the institutions, but it’s not going to be the same as it has been.”Asked about the risk of being sidelined by Trump, a spokesperson for the European Commission stressed that meetings were taking place between senior EU officials and their U.S. counterparts: Von der Leyen met Vance in Munich, her chief aide Bjoern Seibert traveled to Washington, and trade chief Šefčovič met his U.S. counterparts.
“It is current and normal practice that there are direct contacts between the U.S. and national governments in addition to contacts with the EU,” the spokesperson said.In this new era of power politics, EU officials with control over money and hard policy will fare much better than others whose role is less clearly defined. Von der Leyen, whose Commission commands the EU’s massive budget and is in control of trade as well as antitrust policy, is likely to get Trump’s attention, whether he likes it or not. When he kicks off his trade war, it is the powerbrokers in Brussels who will be slapping tariffs on U.S. bourbon, jeans and motorbikes. And it’s the Commission that can hit U.S. tech giants with multibillion-dollar competition fines.EU officials with less tangible power, like Council President Costa or top diplomat Kallas, will have to fight for relevance and play up their own influence.In areas where the EU is unwilling to fully use its powers, such as the application of certain tech rules, a quiet retreat is likely.One ray of sunshine for the EU is that both Trump and Russia care enough about the bloc to invest energy in denigrating it. That, in itself, suggests the EU is worth fighting for.“We keep on hearing that the EU is not influential, that we count for less than nothing,” said an EU official. “But if Trump and Putin find common ground in identifying us as their enemy, it’s probably because at the end we actually count for something.”Jacopo Barigazzi, Eliza Gkritsi and Max Griera contributed to this report."
technology,"EU slams US tariffs on Canada, Mexico as threat to global trade",https://www.politico.eu/article/eu-slams-us-tariffs-canada-mexico-threat-global-trade/,"
				“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty,” says EU executive, expressing solidarity with “close allies” Canada and Mexico.			BRUSSELS — The European Commission condemned the tariffs imposed by U.S. President Donald Trump against Canada and Mexico on Tuesday, as tensions over trade and the war in Ukraine soar between the historic allies.“We call on the United States to reconsider its approach and work towards a cooperative, rules-based solution that benefits all parties,” the European Union executive said in a statement.“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty at a time when international cooperation is more crucial than ever,” it added.Trump on Monday evening announced new 25 percent tariffs on all Mexican and Canadian goods beginning Tuesday and 10 percent tariffs on energy imports from Canada, moving a step closer to triggering a full-scale trade war with America’s biggest trading partners.Brussels, speaking on behalf of the EU’s 27 member countries, expressed solidarity with Canada and Mexico, describing them as “not only close allies of the EU but also vital economic partners.” Its statement made no mention, however, of Trump’s decision to double tariffs against China to 20 percent.It was backed by Bernd Lange, chair of the European Parliament’s international trade committee: “We stand in solidarity with our Canadian and Mexican partners, whose trade relations depend almost entirely on the U.S.,” Lange said in a statement.“It is incomprehensible why the U.S. puts illegal and completely unjustified tariffs on its allies, thereby disrupting entire North American value chains and completely undermining the operations of companies,” said Lange. “Make no mistake, American companies, workers and consumers will suffer too. There is no winner in a trade war, only losers. Of course the additional tariffs on China also don’t seem to be based on an objective analysis.”Trump has also threatened to hit Europe with wide-ranging tariffs that could wreak havoc on the $1.7 trillion transatlantic trading relationship. And the EU has said it would take “firm and proportionate” measures in response to 25 percent U.S. tariffs on steel and aluminum due to take effect from March 12.Responding to the U.S. tariffs, Canadian Prime Minister Justin Trudeau said: “Canada will not let this unjustified decision go unanswered.” He announced tariffs of 25 percent on $30 billion worth of American goods immediately, and on a further $125 billion of U.S. goods in 21 days’ time.China’s Ministry of Commerce also announced it will impose up to 15 percent tariffs on select U.S. imports, including farm products such as chicken, pork, soy and beef, from March 10. The deadline is a signal that Beijing still hopes to negotiate with Trump before the duties snap into effect. It also added 15 U.S. firms to China’s export control list.In an attempt to join arms in anticipation of a Trump trade war, the EU concluded talks on a trade agreement with Mexico just a few days before his inauguration. Brussels also has an agreement with Canada.Ari Hawkins, Sue Allan, Jakob Weizman and Phelim Kine contributed reporting. This story has been updated. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,US official slams EU’s social media ‘censorship’,https://www.politico.eu/article/us-official-slams-eus-social-media-censorship/,"
				Federal Communications Commission chair warns that the EU’s Digital Services Act threatens censorship that is “incompatible” with U.S. free speech.			BARCELONA — Brendan Carr, the new chair of the United States Federal Communications Commission, came out swinging at the European Union's content moderation rules for his first major speech outside the U.S.""There's a risk that [EU] regulatory regime imposes excessive rules with respect to free speech,"" he told the Mobile World Congress in Barcelona on Monday. ""The censorship that is potentially coming down the pipe from the [Digital Services Act] is something that is incompatible with ... our free speech tradition.""Tensions between the EU and the U.S. have soared since President Donald Trump’s return to power, with his administration slamming EU tech laws as “overseas extortion.”Washington is now threatening tariffs in response to European taxes and fines on U.S. firms — just as the European Commission ramps up probes into Big Tech over breaches of antitrust and content moderation rules, including Meta's Facebook and Instagram and Elon Musk's X.""If there is an urge in Europe to engage in protectionist regulation to give disparate treatment to U.S. technology companies, the Trump administration has been clear that we are going to speak up and defend the interest of U.S. businesses,"" Carr said on stage at the telecom industry event.""In many ways, free speech has been in retreat,"" Carr said, arguing that the Covid-19 pandemic gave governments an excuse to tighten controls and praising Trump’s efforts to reverse course.Trump's pick — who he called ""warrior for Free Speech"" — to lead the U.S. regulator in charge of telecoms and broadcasting previously vowed to fight the “censorship cartel” of Big Tech.He wrote to Google, Apple, Meta, Amazon, Microsoft and its LinkedIn unit, Pinterest, Wikimedia, Snap and X last week asking them for details on how they are ""reconciling the DSA with American's free speech tradition,"" and what role they see that ""EU government officials will play in encouraging you to silence speech and demand that you censor information.""European Commission spokesperson Thomas Regnier said in a comment on Monday: ""The DSA is not about censorship and contains important protections against censorship. The censorship allegations relative to the DSA are completely unfounded.""""The aim of our digital legislation, for example the DSA, is the protection of fundamental rights. It requires platforms to assess and mitigate risks to the freedom of expression,"" Regnier said, adding that ""nothing in the DSA requires platforms to remove lawful content."" This article has been updated to include a comment from the European Commission. Chinese tech giant is at the center of Belgian investigation into wrongdoing.Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. "
technology,EU lawmakers try to counter tech bros’ Washington lobbying,https://www.politico.eu/article/eu-lawmakers-counter-tech-bro-washington-lobby-mark-zuckerberg-elon-musk/,"
				Their meeting didn’t quite go as hoped, with U.S. politicians railing against EU “censorship regimes.”			AI generated Text-to-speechEuropean Union politicians who helped shape the bloc’s crackdown on Big Tech are trying to sway United States policymakers who've been listening to tech bros like X’s Elon Musk and Meta’s Mark Zuckerberg.They faced an uphill battle as U.S. President Donald Trump’s administration took aim at EU rules on online content moderation and digital competition, saying these amount to government censorship and unfairly target American companies. Trump even threatened tariffs to fight back against foreign fines or restrictions on U.S. tech giants.Sandro Gozi, one of a group of EU lawmakers who went to Washington last week, said they’re fighting back against views on the EU that are more of “a Mar-a-Lago boys’ issue” and “fueled by Big Tech, starting with Elon Musk.”Anna Cavazzini, a German Green lawmaker who heads the European Parliament’s internal market committee, took the cross-party group to Washington from Feb. 24-28 to talk to U.S. officials and members of Congress just as transatlantic trade tensions are heating up.“We have witnessed aggressive communication by US lawmakers and the Trump administration targeting our tech regulation,” Cavazzini said in a statement. The attacks on EU laws “are far from representative of the views of the majority” of the tech industry and represent “only those of powerful tech giants in Silicon Valley,” she said.Cavazzini said the lawmakers managed to meet four members of Congress: Republicans Jim Jordan, Mark Green and Scott Fitzgerald, and Democrat Don Beyer. They tried to explain what the EU’s Digital Services Act, Digital Markets Act and Artificial Intelligence Act are trying to achieve in terms of setting up guardrails as tech giants expand their services.That didn’t always go as hoped.Shortly after exiting a meeting with Jordan, POLITICO published a letter to European Commission President Ursula von der Leyen informing her of his demand to have tech firms send him their correspondence with EU officials on how they have to comply with “censorship regimes.”Freedom of speech is a hot-button issue for Trump and his followers, who see EU efforts to curb online disinformation as excessive. Meta’s Zuckerberg reacted in January by ending a fact-checking program in the U.S. to restore “free expression on our platforms.”The EU’s response to attacks on its laws has so far been limited, with tech chief Henna Virkkunen saying Zuckerberg's comments on EU censorship were misleading.Gozi said Jordan's letter was “aggressive, and they are wrong” — but just “because they are aggressive, doesn’t mean we need to be aggressive too.”“We need to be firm,” he said.“We told them to pay attention that these guys are the ones who a few years ago were saying how wonderful the Digital Services Act and Digital Markets Act were.”Spanish center-right lawmaker Pablo Arias Echeverría said U.S. officials they met with weren't fully familiar with the EU regulations.“They stayed on the surface and did not go into detail,” he said. “Their message, always the same, was about the DSA being against free speech. About the DMA that is designed against American business. And about the AI Act slowing down innovation.”The EU politicians also met with the White House’s AI and crypto czar David Sacks; Lynne Parker, who is the principal deputy director of the Office of Science and Technology Policy;  and officials from the U.S. Justice Department and the Federal Trade Commission.Arias Echeverría warned about how souring of U.S. and EU ties risks a wider shift in Europe that could benefit other global rivals, such as China.“We have conveyed … that if there is a rise in prices due to tariffs, that there may be a perception of a change of direction,” he said. “It is not a very big wave, but it can permeate society if there is a trade war.""Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Bucharest is at the center of a heated debate over social media policing. "
technology,EU to help Ukraine replace Musk’s Starlink,https://www.politico.eu/article/eu-to-help-ukraine-replace-musks-starlink/,"AI generated Text-to-speechThe European Commission is figuring out how it could help Ukraine secure satellite communication capacity in the wake of Elon Musk reportedly threatening to pull Kyiv's access to his Starlink network.Space-based communication systems are a critical tool for Ukraine, but it remains unclear whether Musk will continue to offer Starlink as the war grinds on.Ukraine said last year it has about 42,000 Starlink terminals in operation in the country; about half are financed by Poland.Commission spokesperson Thomas Regnier said Kyiv had already ""expressed interest"" in how it could use Govsatcom — a pooled network of the EU's existing national government satellite capacity — and IRIS², a new constellation only set to be operational in the 2030s.""The Commission will pursue its contacts with Ukraine in that regard,"" said Regnier.Earlier this week, French Renew MEP Christophe Grudler told the EU executive in a letter that it should urgently “assess all possible alternative satellite solutions that the EU could offer Ukraine” instead of Starlink. Grudler said expediting the deployment of Govsatcom this year by skipping the certification process could work as a stopgap solution while IRIS² is being developed. Regnier said the system offer Kyiv ""precursor governmental services"" without specifying what that would be in practice, or how soon it could be operational.Other options would be sourcing commercial capacity from Eutelsat, Hispasat or SES satellites already in geostationary orbit or with the OneWeb constellation.Italian PM Giorgia Meloni’s possible deal with Starlink could pit national interests against European ones.With Merz at the helm and the SPD’s Boris Pistorius likely gaining a seat at the table, Ukraine can expect a stronger ally in Berlin.“The U.S. is rightly asking for a rebalancing of that,” said Rutte. “It’s totally logical.”Despite talk of a peace agreement, Russia is continuing to wage war against Ukraine."
technology,25 arrested in major crackdown of AI-generated child abuse images network,https://www.politico.eu/article/europol-25-arrested-in-crackdown-on-ai-generated-images-of-child-abuse/,"
				Creating criminal content with AI is a growing problem for law enforcement.			Police in 20 countries have taken down a network that distributed images of child sexual abuse entirely generated by artificial intelligence.The operation – which spanned European countries including the United Kingdom as well as Canada, Australia, New Zealand – is ""one of the first cases"" involving AI-generated images of child sexual abuse material, Europe's law enforcement agency Europol, which supported the action, said in a press release.Danish authorities led an operation, which resulted in 25 arrests, 33 house searches and 173 devices being seized. The crackdown came after a Danish man was arrested in November last year for producing and distributing AI-generated images of children being abused. He ran a platform users could access via a password after making an online payment.""These artificially-generated images are so easily created that they can be produced by individuals with criminal intent, even without substantial technical knowledge,"" said Europol Executive Director Catherine De Bolle.What's more, AI generators will boost the volume of child sexual abuse material, making it more ""challenging"" to identify offenders or victims, De Bolle said.Countries involved in the operation included Australia, Austria, Belgium, Bosnia and Herzegovina, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Iceland, the Netherlands, New Zealand, Norway, Poland, Spain, Sweden, Switzerland and the United Kingdom.Europol said there is currently ""a lack of national legislation"" on AI-generated child sexual abuse material. EU legislators are still in the process of negotiating a draft law to combat child sexual abuse material, presented by the European Commission in 2022. EU countries are struggling to come up with a common position.The ease of AI tools to produce material quickly is becoming a massive headache for law enforcement.Europol's chief AI officer warned in a recent interview with POLITICO that the rise of AI chatbots, powered by so-called generative AI models, had made it much easier for criminals to commit fraud. The agency will launch a campaign warning against using AI for illegal purposes in the coming days.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,"EU to Trump on tariffs: Go ahead, make our day.",https://www.politico.eu/article/donald-trump-tariffs-eu-trade-anti-coercion-instrument/,"
				Brussels threatens to use its trade bazooka after President Donald Trump says the European Union was created to “screw” America.			BRUSSELS — The European Union said on Thursday it was ready to deploy its strongest trade weapon against the U.S. after President Donald Trump threatened to impose sweeping tariffs and scorned the EU as having been created to “screw” America.“We have an Anti-Coercion Instrument, and we will have to use it,” Agriculture Commissioner Christophe Hansen said in Paris after meeting with his French counterpart Annie Genevard at the Salon de l’Agriculture farming exhibition.Designed following the first Trump administration from 2017 to 2021, the bloc's “trade bazooka” provides for broad retaliation in response to trade discrimination, such as quotas and tariffs or restrictions on foreign investment. The commissioner’s comments came a day after Trump threatened to hit the EU with sweeping 25-percent tariffs ""on cars and all other things,"" provoking fury across the Atlantic — with politicians saying the time had come for Brussels to retaliate. “We will not let ourselves be bullied, not with tariffs nor with threats about our legislation,” said Bernd Lange, a usually mild-mannered German Social Democrat who chairs the European Parliament’s international trade committee.Trump’s broadside was a distillation of the trade grievances he had aired on the campaign trail and that he has stepped up since taking office a month ago. He again complained that Europe didn’t buy U.S. cars or food and lamented America's huge transatlantic trade deficit, which he pegged at a vastly exaggerated $300 billion.Although the U.S. supported a united Europe after World War II within a strategic plan to create a democratic bulwark against the Soviet Union, Trump offered a different account: “The European Union was formed in order to screw the United States,” he said. “That’s the purpose of it. They have done a good job of it, but now I am president.”For European leaders, that crossed a line.""The EU wasn’t formed to screw anyone,"" retorted Polish PM Donald Tusk in a post on X. ""Quite the opposite. It was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that.""Hansen’s threat to use the Anti-Coercion Instrument (ACI) also went beyond the previous position taken by EU Trade Commissioner Maroš Šefčovič, who on his first visit to Washington last week said deploying the ACI was only a hypothetical possibility.Trump plans to reinstate tariffs on steel and aluminum from March 12. More wide-ranging tariffs could land as soon as the start of April.From there, things could escalate quickly. “The European Commission must take swift countermeasures in reaction to Trump’s tariff war,” Belgian lawmaker Kathleen Van Brempt, vice chair of the European Parliament’s trade committee, posted on X.“Giving in to this bullying behaviour is not an option. We must now protect European companies and families from the impact of the American measures.”Before triggering the ACI, which would need the backing of 15 out of the EU's 27 member countries, the bloc’s first resort would be to reinstate punitive duties that it imposed in response to Trump’s first-term tariffs — on Harley Davidson motorbikes, Kentucky bourbon or Florida orange juice. These would likely be expanded to reflect the scale of Trump’s new tariffs.European automakers have everything to fear from Trump’s trade grievances — not merely that Europe’s tariff of 10 percent is four times that of the U.S., but also his team’s tendentious claim that value-added taxes of around 20 percent also represent a trade barrier.If the Commission makes good on its promises to inflict equal pain on the U.S., German luxury carmaker BMW would be the first to be caught in the crossfire. Its plant in Spartanburg, South Carolina — a conservative bastion that voted for Trump last November — exported nearly 225,000 vehicles last year, the company said before Trump’s remarks. All the more mind-boggling for European leaders is just how quickly their diplomacy wears off on Trump.Only 24 hours before, French President Emmanuel Macron had put on a masterclass in how to handle an irascible potentate. He even gave an interview on Fox News, Trump’s favorite TV channel, urging him to prosecute a trade war against China — and not against Europe.Macron’s charm offensive gave way to grim realism on Thursday, with French budget minister Eric Lombard warning that should Trump confirm the tariffs, “Europe will do the same.”“It is a scenario we are getting prepared for,” Industry Minister Marc Ferracci told reporters at a press conference in Paris after hosting a meeting of EU ministers on how to rescue the bloc’s struggling steel industry. Italy’s Industry Minister Adolfo Urso, speaking alongside Ferracci, suggested that Europe could avoid U.S. tariffs by yielding to Trump’s demands — while also calling for unity and warning against a trade war. One way to placate Trump, he hinted, would be to accommodate his demands to boost European defense spending.“Tariffs are the tip of the iceberg, but the answer to tariffs is in other aspects,” he said. Camille Gijs, Jordyn Dahl and Bartosz Brzeziński reported from Brussels. Giorgio Leali reported from Paris. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,UK’s Starmer hits back at JD Vance on freedom of speech,https://www.politico.eu/article/uk-keir-starmer-jd-vance-freedom-of-speech-donald-trump/,"
				U.K. prime minister was “proud” of Britain’s history on freedom of speech after Vance said clampdowns affected American citizens. 			AI generated Text-to-speechU.K. Prime Minister Keir Starmer directly challenged JD Vance in the Oval Office Thursday after the U.S. vice president claimed Britain's stance on freedom of speech is stifling American companies and citizens.Vance — sat across from Starmer in a meeting with President Donald Trump — told reporters that the ""special relationship"" between the U.K. and U.S. mattered, but issued a warning about perceived over-bearing tech regulation.He said: ""We also know that there have been infringements on free speech that actually affect not just the British — of course what the British do in their own country is up to them — but also affect American technology companies and, by extension, American citizens.""Starmer, leaning forward in his seat, issued a retort to the vice president. He said his government ""wouldn’t want to reach across U.S. citizens, and we don’t, and that’s absolutely right.""""But in relation to free speech in the U.K. I’m very proud of our history there,"" he added.""We’ve had free speech for a very, very long time in the United Kingdom and it will last for a very, very long time,"" Starmer told the U.S. vice president in the Oval Office.It comes amid a fierce transatlantic debate about tech regulation, with the U.S. urging the U.K. and EU to ease up on rules governing AI and social media platforms. Trump adviser Elon Musk has also been a regular critic of the U.K. government and Starmer himself because of the way his administration responded to far-right riots that hit the U.K. last year and his record as the country's top public prosecutor. Vance's comments also come after U.S. Director of National Intelligence Tulsi Gabbard condemned the British government for reportedly asking Apple to implement a backdoor in its encryption to allow greater access to users' data. Apple instead removed its most advanced data security tool for U.K. customers last week.It’s 2019 all over again as top politicians are pressed on whether Brexit is a good or bad thing.Former prime minister says it is not “in the U.K.’s best interest to retaliate” and praises current leader’s “cool heads” approach.Foreign Secretary David Lammy says Britain “believes in open trade” — and refuses to rule out retaliatory tariffs.  Economics rules the roost ahead of Donald Trump’s tariffs — but Tory leader fails to land a blow about the government’s tricky position. "
technology,Trump wants a trade deal with Britain ‘very soon’,https://www.politico.eu/article/donald-trump-keir-starmer-uk-pm-european-union-visit/,"
				U.S. president tells POLITICO: “I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary.”			WASHINGTON — Donald Trump suggested the U.K. could dodge his global trade war Thursday as he heaped praise on Prime Minister Keir Starmer’s negotiating skills — and dangled the prospect of a “very good deal” just in reach.As he feuds with traditional U.S. allies and threatens to impose tariffs, British officials have been nervously eying the U.S. president’s trade war, and hoping to dodge his ire.Their spirits will have been lifted on a trip to Washington Thursday when Trump struck a bullish tone on talks between the U.S. and U.K. about a trade agreement.Asked by POLITICO at a White House press conference whether Starmer had persuaded him not to put tariffs on the U.K., Trump said: ""He tried. He was working hard. I'll tell you, he earned whatever the hell they pay him over there, but he tried.”And he added: “I think there's a very good chance that in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn't be necessary. We'll see.""A full-fat free trade agreement between the U.K. and U.S. has long eluded negotiators, with talks foundering over hot-button issues like food safety standards and corporate access to the U.K.’s publicly funded health service. However, British officials have been pushing for a tech-focused deal that wouldn't get similarly bogged down. Trump said that “in all seriousness, I think we have a very good chance at arriving at a very good deal,” and made clear his Vice President JD Vance — with whom Starmer had sparred in the Oval Office just hours before — was among the people working on a deal “that could be terrific, really terrific for both countries.”“We're the only two Western countries with trillion dollar tech sectors — leaders in AI,” Starmer said as he stood beside Trump Thursday. “So we've decided today to go further to begin work on a new economic deal with advanced technology at its core.""The U.K. wants collaboration in developing critical technologies, including AI. In a clear bid for the MAGA president's favor, U.K. ambassador to the U.S., Peter Mandelson has privately referred to this joint work as ""Make our Economies Great Again.""Britain envisages it covering areas including bioscience and synthetic biology and quantum computing.U.K. officials have been making the argument that, after the U.S. and China, Britain is the third biggest tech power player and therefore a more attractive partner to the U.S. than European nations. The team-up is seen as a piece of ongoing work that would last Trump's whole term.Amid signs Britain is already shifting its tech policy in a direction more favorable to the Trump administration, a No. 10 spokesperson declined to comment on suggestions that some U.K. legislation — including on online safety — will remain unenacted as part of the deal.As he wrapped up the press conference closing a meeting that, for Starmer, included a heavy focus on Ukraine, Trump said: ""I think we'll have two deals. I think we'll have a deal on ending the war, and I think we're going to end up with a great trade deal with you.""Feeling the heat on immigration, now even center-left Labour MPs want to close “legal loopholes” relating to the European Convention on Human Rights.POLITICO delves into the frenetic tactics Britain was — and still is — employing to win a carve-out from Donald Trump’s tariffs. No one yet knows if the president will listen.Ministers hope they can find a technical solution that keeps everyone happy.A strong, if shallow, partnership at the top  has defined Labour in office. Can it hold when the going gets tough?"
technology,Brussels pitches €100B for grand plan to boost made-in-EU clean manufacturing,https://www.politico.eu/article/brussels-pitches-e100b-for-grand-plan-to-boost-made-in-eu-clean-manufacturing/,"
				The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.			
				This article is also available in: French			ANTWERP, Belgium — The European Commission on Wednesday announced €100 billion in short-term relief to supercharge climate-friendly manufacturing in the EU. The funding is part of the EU executive’s Clean Industrial Deal, its master plan to help traditional industries cut carbon emissions and boost the EU’s emerging clean-technology sector amid fierce competition from China and the United States.“Today, Europe has decided to invest in its decarbonization and reindustrialization. Over 100 billion euros in all,” EU Industry Commissioner Stéphane Séjourné said in a press conference announcing the strategy. “At a time when some would seek to impose their model on us, the best response is to bolster our own European model.” The Commission faces financing constraints as the bloc is only just starting to negotiate its new long-term budget. But its plan promises to “mobilize over €100 billion” for “EU-made clean manufacturing” in the short term.The funding effort centers on an “Industrial Decarbonization Bank” and is scraped together from several places.The initiative will pull €20 billion from the EU’s existing Innovation Fund, which backs low-carbon technologies, and €30 billion from “voluntary top-ups to be made by member states,” according to an accompanying document seen by POLITICO.A revision of the InvestEU program, which aims to draw in more private funding, should yield €25 billion, and the Commission is also counting on €25 billion in future revenue from the bloc’s carbon market.Whether the Commission’s definition of “short term” matches industrial ideas is another question. EU climate chief Wopke Hoekstra told reporters at the press conference that the decarbonization bank “could raise up to €100 billion in the next 10 years.” That figure could then draw in private sector money, Hoekstra said, arguing that could bring the total to €400 billion. “With this plan, we are aiming to decrease industry emissions by up to 30 percent,” he said. Still, some sectors may not have time to wait. Steel firms, in particular, have warned that they face irreversible decline without help this year. Commission President Ursula von der Leyen has announced urgent discussions with the metals sector starting next week. The Clean Industrial Deal also encompasses measures to boost investment, lower energy prices and increase demand for clean manufacturing.Those initiatives include new made-in-EU criteria for climate-friendly materials bought by governments and other public authorities. “This deal proposes to totally rethink the logic behind public procurement, which until now has been based solely on the cost criteria,” Séjourné said. “We’re going to be adding new criteria of sustainability, resilience, performance and European preference in public contracts, and more generally, in public assistance.” The private sector will be included, too, he added: “We’ll also be taking a look at the private sector, such as company car fleets.”Other measures include joint purchasing of critical raw materials. “We need to do with lithium or cobalt what we did with Covid vaccines,” Séjourné said. The Commission also released a separate but closely linked plan to lower energy prices for European businesses, proposing measures to slash electricity taxes, speed permits and help companies sign longer-term power contracts.""We're pulling out all the stops to bring energy prices down,” Hoekstra said.  Teresa Ribera, the Commission’s vice president for climate and competition, emphasized the green transition’s potential to create jobs in clean manufacturing and adjacent sectors. “By 2030, the EU’s renewable targets alone will generate over 3.5 million new jobs in the renewable sector,” she said. “But this transition means change — some sectors will need to face challenging circumstances.” The Clean Industrial Deal includes a section on retraining and social issues, promising an upcoming strategy “to give people the skills they need.” But it is not the document’s primary focus.Collectively, the EU commissioners struck a bullish tone, arguing that Europe’s economic malaise is solvable — and that they have a plan to do so.The world, Ribera said, is “changing, shifting fast and so must we.”She added: “Our vision is for Europe to lead as a clean-manufacturing power.”Aude van den Hove, Marianne Gros, Jordyn Dahl, Victor Jack and Gabriel Gavin contributed reporting. Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities.Formal proposal to amend overarching climate law will accompany Clean Industrial Deal."
technology,Why connectivity matters to Europe’s tech sovereignty,https://www.politico.eu/sponsored-content/why-connectivity-matters-to-europes-tech-sovereignty/,"
				From AI to edge cloud, the EU must become stronger in the global telecom value-chain			The European connectivity sector is at a turning point. The recently published State of Digital Communications 2025 report by Connect Europe highlights that the continent’s connectivity ecosystem — embracing network and service operators, hardware and software vendors, cloud, virtualization providers, and many others — is transforming at an unprecedented pace, driven by new technologies like artificial intelligence-powered networks, 5G standalone and open RAN. This ecosystem, worth €1 trillion and representing 4.7 percent of European GDP, can become the cornerstone of Europe’s economic fabric. Yet, for all this potential, Europe’s ability to seize the opportunity is far from guaranteed. Telecom investment in Europe declined by 2 percent in 2023 — the first drop in seven years — just as other global players are ramping up their resources into cutting-edge digital infrastructure. Europe’s ambition for digital sovereignty is at stake, since weaker investment in telecom networks and services ultimately chills the entire connectivity ecosystem. If we fail to reverse course now, we risk falling irreversibly behind in the race for technological leadership. There is no time to waste.If we fail to reverse course now, we risk falling irreversibly behind in the race for technological leadership. There is no time to waste.A shifting digital landscape: seizing the moment for Europe’s tech sovereigntyConnectivity is no longer just about providing fast internet access — it is the backbone of Europe’s digital economy, driving advancements in industrial automation, smart cities and next-generation AI applications.The rapid digital transformation of connectivity networks presents both a challenge and an opportunity. AI is already being deployed to optimize networks, with 52 percent of European operators trialing AI-driven automation. This technology will be critical in ensuring more efficient, resilient and sustainable networks.At the same time, research and development in 6G is already underway, and Europe must position itself at the forefront. The report tracks over 200 global 6G projects, with European operators leading more than half of them. This leadership in early stage R&D must be leveraged into commercial advantage, ensuring that Europe is not merely a follower but a global standard-setter.In this race to bring telecom networks to the next generation, Europe’s connectivity ecosystem must play to its strengths to make sure they also offer value-added services that leverage AI and other enabling technologies. For instance, the growing role of application programming interfaces (API) in network services presents an opportunity for Europe to shape the future of Network-as-a-Service business models worldwide. European operators currently lead in API platform announcements, ahead of North America and Asia-Pacific. This is a rare instance where Europe is setting the pace, an advantage we must capitalize on.Yet, Europe is lagging in key areas. By the end of 2024 only 40 percent of Europeans had access to 5G standalone networks, compared with over 90 percent in North America. Edge cloud deployment remains sluggish, with just 320 live operator edge nodes, in Europe, far from the EU’s ambitious 10,000-node target by 2030. These gaps highlight an urgent need to accelerate investment in digital infrastructure and foster a regulatory environment that enables innovation. If Europe is serious about its digital sovereignty, it must take decisive action now.Closing the connectivity gap and breaking market barriersFor Europe to achieve its ambitious Digital Decade targets — full gigabit and 5G coverage by 2030 — massive investment is needed. Today, 82.5 percent of the continent is covered by gigabit-capable networks, far behind China (99 percent), the United States (90.3 percent) and Japan (93.9 percent). The 5G picture is similar, with Europe’s 87 percent coverage behind South Korea (99 percent) and the United States (98 percent). If this trend continues, 39.5 million EU citizens will still lack gigabit-speed connectivity by 2030, a failure that would undermine Europe’s digital ambitions.The solution must include agile industrial policy, regulatory reform fostering a more investment-friendly environment, and allowing European operators to consolidateBeyond investment, Europe’s telecom market remains excessively fragmented and overregulated. The continent has 41 major mobile operators, compared with just five in the United States and four in Japan and China. This fragmentation prevents economies of scale, limiting the ability of European firms to compete effectively on a global stage. The result? A sector constrained by financial pressure, limited innovation capacity and an inability to scale next-generation technologies at the speed required to remain globally competitive. The solution must include agile industrial policy, regulatory reform fostering a more investment-friendly environment, and allowing European operators to consolidate so they can interact on an equal footing with global tech companies.The way forward: innovation as the cornerstone of tech sovereigntyEurope is at a now-or-never moment. The choices we make today will determine whether we remain a sovereign digital powerhouse or fall behind global competitors. This sense of urgency is reflected in a recent movement for creating a European technology stack, which mobilized both academia and technology experts, both calling for vigorous industrial policy action. Our State of Digital Communications 2025 report also makes it clear: Europe has the expertise, technology and ambition to lead, but excessive fragmentation and over-regulation threaten progress. Reports by Enrico Letta and Mario Draghi echo this concern, emphasizing the strategic importance of connectivity. But without bold policy choices, increased investment and a commitment to scale innovation, Europe’s digital future will be at risk.The above column is sponsor-generated content. To learn more about our advertising solutions, click here."
technology,"Macron to Trump: Make trade war with China, not with us",https://www.politico.eu/article/emmanuel-macron-donald-trump-make-trade-war-china-not-us/,"
				“Come on, you cannot have a trade war with China and Europe at the same time,” Macron tells Fox News in an interview.			French President Emmanuel Macron hopes he convinced United States President Donald Trump not to wage a trade war against Europe — and to instead focus on China.“Come on, you cannot have a trade war with China and Europe at the same time. I hope I convinced him,” Macron told Fox News in an interview after meeting Trump in Washington Monday.Macron said Washington’s “priority is to put tariffs on China” and that fighting a trade war with Europe at the same time would go against U.S. interests.“I hope I did convince him on trade and tariffs,"" Macron told Trump’s favorite TV station. “I told him: It’s very important for you not to launch new tariffs.”Macron’s visit to the White House to discuss the war in Ukraine was the first by a European leader since Trump dramatically reversed the U.S. position on the war in Ukraine, accusing President Volodymyr Zelenskyy of being “a dictator without elections” and opening talks with aggressor Russia on how to end a three-year-old war.In Washington, the two leaders tried to convince the world of their special relationship, exchanging compliments, hugs and jokes. But they still disagreed on how to end the Russia-Ukraine war, and on how to head off a full-scale transatlantic trade war.Earlier this month, Trump floated 25 percent tariffs on a wide range of imports, including from Europe. He also threatened “reciprocal” tariffs in retaliation against a wide range of regulations and taxes that Washington sees as discriminatory, including value-added taxes that are collected by the vast majority of nations of the world.Macron said he tried to convince Trump not to impose those tariffs, stressing that Europe has not done anything that deserves a U.S. retalation. “VAT is not a tariff, and I argued it,” Macron said, adding that “we didn't tariff the U.S.”Macron also stressed that European countries will be unable to boost defense spending, as demanded by the U.S., if they also face a transatlantic trade war.“How do you want us to increase security and defense expenditure if we are in a trade war?” Macron said.Macron will brief leaders of other EU countries Wednesday on his meeting with Trump, ahead of a special gathering of EU leaders scheduled for next week.“This is a wake-up call on trade agreements,” French Trade Minister Laurent Saint-Martin tells POLITICO.Stéphane Séjourné says he expected “good news,” which will provide succor for the French booze industry. PARIS —The trade war with the United States might prevent France from bringing down its sky-high budget deficit, French Economy and Finance Minister Eric Lombard said on …Why let penguins have all the fun? "
technology,How Germany’s far right is harnessing AI to win votes,https://www.politico.eu/article/germany-far-right-harness-artificial-intelligence-win-election/,"
				Artificially generated clips serve as “nostalgia machines and emotional cliché amplifiers” ahead of Feb. 23 election.			AI generated Text-to-speechBERLIN — “Do you remember how beautiful Germany once was?” It’s a question asked in a video shared by far-right chancellor candidate Alice Weidel that depicts a country that never actually existed — because it’s been generated by artificial intelligence.The evocative scenes include a light-haired toddler smiling up with bright eyes, the background lit with blurry strings of Christmas lights and an ornament-laden tree; a young blonde woman in a sequined top dancing jubilantly with disco balls hanging behind her; and children in a bus laughing and playing on their way to school, joy shining on their faces.AI-generated content like this is helping Weidel’s anti-migration, populist Alternative for Germany party, or AfD, make both sides of its vision — the idyllic, nostalgia-driven future it promises to bring as well as the dystopian one it’s warning about should others win the election — look startlingly real.Ahead of the country’s Feb. 23 election, when the AfD is expected to win more than 20 percent of the vote, top politicians in the party are posting and sharing a slew of AI-generated images and videos, joining an entire online ecosystem of AI-generated content boosting the party.""It’s about showing what life might look like with the AfD in Germany, and how it would compare with if we didn’t come to power,” Norbert Kleinwächter, a parliamentarian for the AfD who has been among the party’s most active posters of AI-generated content, told POLITICO. “We don't just describe what we want in words. We illustrate it and present it ― and of course sometimes amplify it.”For more polling data from across Europe visit  POLITICO Poll of Polls.The national party’s website features a helmet-clad coal miner, a carefree woman dancing, a laughing man and a smiling elderly woman, all of which were AI-generated. These stock images depicting the kind of “regular” Germans who support the AfD are typical of much of the AI-generated content used by the party.But they’re not just employing it to portray their supporters. The party is using AI-generated content to bring to life its promise to return the country to an idealized, better time — and to prevent what they see as a dark future brought about by increased immigration.For the AfD, “AI-generated clips serve as nostalgia machines and emotional cliché amplifiers with imagery referencing historic aesthetics from the 19th and 20th century,” said Marcus Bösch, a researcher at the Hamburg University of Applied Sciences.A video from the regional-level AfD in the eastern German state of Brandenburg, published ahead of the eastern German state elections last fall, illustrates that well by hearkening back to a supposed golden age.“Your ancestors had a homeland in Brandenburg ― this is where your grandpa took your grandma dancing, this is where your mother went to kindergarten, this is where your grandpa built his house,” the narrator says, over retro-style images of young people smiling in a dancehall. “This is where your parents brought you into the world and made you the person you are today.”That’s around the point when the videos typically cut to dark, ominous-looking footage meant to evoke the future of Germany if the AfD doesn’t come to power. In these clips, elderly Germans gather plastic bottles to make ends meet or look despairingly at empty wallets. Women walk down the street in burqas. Groups of men with dark skin leer directly at the viewer.AfD leaders are open about the way they use the technology. Kleinwächter said he wouldn’t call the AfD’s approach a nostalgia machine but rather “a telescope into the future.""“It's not about saying something negative about a certain group or a certain person or something,"" he said. “That's not the goal — the goal is to put our finger on the sore spot and to present it visually.”The AI use by party officials is just a small portion of the AI-generated efforts to boost the AfD. User-generated AI content and pro-AfD AI influencers post supportive content across TikTok, Instagram, Facebook and X.“There is an entire fan army engaging in a far-reaching and effective participatory propaganda attempt,” Bösch said. “Messages are amplified and emotionally charged through fan-edits with supporters flooding comment sections with pro-AfD hashtags like the blue heart emoji to further trigger the algorithm.”There are AI songs like “Re-migration Hit,” which members of the party’s youth wing came under fire for singing and dancing jubilantly to last fall — “Now it’s time to go, we’ll deport you all,” the song's lyrics say.Individual pro-AfD users post everything from blonde girls in AfD blue outfits riding dogs in a sea of German flags, to deepfake videos of mainstream politicians kissing or going to jail.Some users have even created entire AI influencer accounts to boost the party. One account, purportedly a woman named Larissa Wagner, posts AI-generated images of an attractive brown-haired woman along with pro-AfD and anti-immigration statements.“I’m so sad, I’m so angry. #Magdeburg is my mother’s hometown,” the account wrote after an attack at a Christmas market in Magdeburg, along with an image of a woman looking down concerned. “Honestly, all Syrians have to go. Too much has happened.” The AfD's approach to AI in this election speaks to a more fundamental feature of the party, said Maik Fielitz, a researcher on far- and extreme-right movements at the Institute for Democracy and Civil Society in Jena: its sometimes-tenuous connection to the truth.“It’s quite obvious they want to produce an attitude toward AI,” he said, “which is that it doesn’t matter if it’s real or not.”In Germany’s next parliament the AfD will have more speaking time, more money and more power to hammer centrist parties.With Merz at the helm and the SPD’s Boris Pistorius likely gaining a seat at the table, Ukraine can expect a stronger ally in Berlin.Based on more than a dozen interviews in the final weeks of the German election campaign, POLITICO tells the story of how violence and migration shaped one of the most momentous votes in the country’s postwar history.One in five voters in the German election favored the far right. The AfD leader’s dramatic rise terrifies many of the others."
technology,"EU and India to inch closer on trade, EVs and chips at upcoming meet",https://www.politico.eu/article/eu-and-india-to-inch-closer-on-trade-evs-and-chips-at-upcoming-meet/,"
				Ursula von der Leyen is leading her new College of Commissioners on their first visit to India.			AI generated Text-to-speechBRUSSELS — The European Union is looking to keep India on its side as geopolitical tensions mount with the United States and China, according to the draft joint statement from a top-level visit by EU leaders seen by POLITICO.European Commission President Ursula von der Leyen will lead her team on a visit to India next Friday, while Brussels and New Delhi will also convene their second-ever Trade and Technology Council to strengthen ties and counter America’s tariff threats and China’s assertive trade practices.President Donald Trump’s global retreat poses an opportunity for rivals like China to fill the void, particularly in funding developing countries’ technology initiatives. The agreement on the table would help the EU maintain a critical foothold in the Asia-Pacific.“The deepening of bilateral relations and the growing strategic convergence between the EU and India respond to the shifting dynamics of the global geopolitical landscape and a common interest in promoting global stability, economic security, and sustainable and inclusive growth,” reads the seven-page draft statement. The get-together comes as von der Leyen sets her sights on strengthening the EU’s strategic partnership with India and reviving slow-moving negotiations on a free-trade agreement.India is pushing for stronger commitments from the EU on market access, according to two EU diplomats briefed on the back and forth. Differences have emerged on how best to express this aspiration, with the Indian side seeking stronger wording in the TTC statement and the Europeans preferring to confine the point to the ongoing talks on the FTA.India has frustrated its Western partners by hanging tough in trade talks and is especially playing hardball at the World Trade Organization to defend its food security strategy. EU trade chief Maroš Šefčovič hosted his Indian counterpart Piyush Goyal in Brussels in January, when both also met WTO chief Ngozi Okonjo-Iweala. The two sides will also vow to deepen their “commitment towards the multilateral trading system as an anchor in the current challenging geopolitical context.” That affirmation could be a balm for Europe’s struggling automakers. They are in sore need of new export markets, under threat from China’s world-beating electric vehicles and at risk of a massive hit to their bottom lines from Trump’s threat to impose 25 percent tariffs on autos.India, the world’s fifth-largest economy, is expected to maintain a growth of over 6 percent between 2026 and 2031, S&P Global estimates — similar to rates in China in the early 2000s that helped European carmakers earn record profits there.It is also shifting quickly from combustion engines (ICEs) to EVs, with S&P predicting the share of ICEs will decline to 35 percent by 2035. The biggest challenge for the country in transitioning, however, is charging infrastructure.The two sides will pledge to cooperate on harmonizing standards for EV charging infrastructure and set up a “joint research cooperation” focusing on recycling batteries for electric cars, the statement says. The projects will have a budget of €60 million that is expected to come from the Horizon Europe program and “matching Indian contributions.”Brussels and New Delhi also want to join forces on artificial intelligence, semiconductors, and telecoms, alongside a push for “secure and trusted” connectivity — code for Chinese-free networks. Plans include more joint R&D in chip design, talent exchanges, a new memorandum of understanding on 6G, and stronger ties between the Commission’s AI Office and the Indian AI Mission as India gears up to host the next international AI summit.The statement could still change in the days leading up to the Feb. 28 talks in New Delhi. After a two-year hiatus since the first TTC, the two sides will host their third meeting “within one year from now,” the document adds. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,Why Europe’s satellite policies must support a new era of connectivity,https://www.politico.eu/sponsored-content/why-europes-satellite-policies-must-support-a-new-era-of-connectivity/,"
				We now have the technology to ensure people can stay connected no matter where they are — but we need the EU’s backing for it to become ubiquitous			Earlier this year, Italian Prime Minister Giorgia Meloni lamented that there was “no public alternative” to a US operator yet available to meet Italy’s needs on satellite communications.In fact, Europe has several secure satellite communication solutions already at its disposal.For a long time, Vodafone has deployed a dedicated team of volunteers in disaster areas to help restore connectivity through Wi-Fi hot spots via satellite. This team was recently on the ground in Valencia during the horrific mud slides, working side-by-side with emergency services to rescue lives.Together with UNHCR, we already use satellite links to connect schools in refugee camps across Africa where mobile networks are notoriously inadequate. In Ukraine itself, our Vodafone partner used Starlink to quickly restore some form of connectivity after Russian attacks on civil infrastructure.These technology solutions have been around for years and are being used with great success, especially to help citizens in times of emergencies and natural disasters.They have two practical limitations, however. Firstly, they all rely on dedicated devices, special dishes, terminals or expensive satellite phones to leverage space for connectivity. And secondly, they work far better in a clearly defined geographical area, with often limited mobility.So, if this is what Prime Minister Meloni meant, she is right.Or, rather, she was right.Because, in January this year, the world’s first space-based video call from a mobile ‘not spot’ was made using normal smartphones and commercial satellites built for a full mobile broadband experience. And it was done by Vodafone, in partnership with AST SpaceMobile.This marks a significant breakthrough in Europe’s future ability to deliver full mobile broadband connected to satellites in low Earth orbit — so-called direct-to-device.This solution is unique. It means mobile customers in Europe can stay connected no matter where they are, and their current phones will switch automatically between space and ground-based networks.And more widely, it represents the new frontier in the current race to better leverage space to benefit our citizens.This solution is unique. It means mobile customers in Europe can stay connected no matter where they areJust imagine what this could mean in scenarios like the one faced by the Irish people during their record-breaking storms a few weeks ago, which knocked out 900+ mobile sites and left over a million inhabitants without mobile coverage. Or during the German floods in 2021, the floods in Poland, Czechia and Slovakia last fall, or the wildfires in Greece in 2023-24, to name just a few.With the ongoing climate crisis, these events are regrettably becoming more frequent and impacting much bigger geographical areas. Satellite direct-to-device will transform how communications are managed during these disasters. It can allow the rapid deployment of connectivity for first responders, aid organizations and affected communities. And it will provide essential national resilience, as well as a much-needed lifeline for all those impacted.It also has potential to eliminate — once and for all — Europe’s mobile not spots, especially in deep rural areas. It will end the geographical digital divide for the millions of European citizens who are not adequately covered by mobile networks, with profound implications for our economy and society.Rightly, Mario Draghi’s report therefore highlighted satellite as a key enabler to boost Europe’s competitiveness, and for critical sectors including transport, renewable energy, defense and the Internet of Things.There’s no doubt that satellite technology will also make an enormous contribution to achieving the EU’s Digital Decade 2030 targets. With Europe’s sovereignty at stake, it’s a no-brainer if the region wants to retain any degree of control over the future of space-based connectivity.And because Vodafone’s solution with AST is integrated with terrestrial telecoms networks, the service will also be fully compliant with Europe’s current security and telecom regulations. There will be no need to create bespoke rules or issue waivers for satellite communications.This matters hugely. Direct-to-device satellite solutions could cause significant interference unless they are designed and integrated correctly into the broader telecom ecosystem that most Europeans already rely on for their everyday lives.Although satellite will be a vital supplement and backup to terrestrial networks, mobile network performance would deteriorate if this is not done correctly. This defeats the purpose of having satellite in the first place.To ensure the rapid deployment of direct-to-device satellite solutions in the correct way, Europe’s leaders and regulators need to be crystal clear in their thinking around satellite policy.They will have to quickly define a policy framework for how to best manage this exciting opportunity in a way that maximizes synergies in the convergence of space and mobile technologies.To ensure the rapid deployment of direct-to-device satellite solutions in the correct way, Europe’s leaders and regulators need to be crystal clear in their thinking around satellite policyIn doing so, there are two key guiding principles and approaches to follow.Firstly, to allow the uptake of innovation in this field, European regulators should allow telecoms operators to share mobile frequencies with their satellite partners at a national level, as we have seen in the United States.The European Commission could also speed up deployment by harmonizing the rules on spectrum sharing at an EU level and encouraging member states to issue test licenses, as the UK regulator has done.Secondly, to tackle inherent risks, European governments should ensure that satellite direct-to-device services meet the same security, cybersecurity, resilience and compliance standards as terrestrial networks.If there isn’t a level playing field between satellite and telecom operators, this could create a whole range of issues, ranging from interference to undermining law enforcement, denial of service and data protection. The European Commission’s review of the European Electronic Communications Code this year is an opportunity to bring this into effect.At Vodafone, while there is still a lot more work to do, we are optimistic that this giant leap in connectivity access for all EU citizens can be supported and nurtured by the European Commission and national regulators.We believe in the transformative potential of satellite technology, and through our partnerships we are determined to bring this exciting technology to as many people as possibleFollowing further tests this spring, we aim to progressively introduce a direct-to-device broadband satellite service commercially in markets across Europe later this year and from 2026 onwards.We believe in the transformative potential of satellite technology, and through our partnerships we are determined to bring this exciting technology to as many people as possible.By working together, we can ensure that Europe has secure and resilient communications infrastructure that leverages satellite frontier technology, delivered by European operators to enhance European capabilities.The above column is sponsor-generated content. To learn more about our advertising solutions, click here."
technology,Musk’s Starlink isn’t ready to rule Europe’s internet airwaves,https://www.politico.eu/article/elon-musk-starlink-not-ready-rule-europe-internet-airwave/,"
				Elon Musk’s satellites aren’t — yet — competing to serve Europeans’ everyday internet needs.			Elon Musk may be able to beam internet data from thousands of Starlink satellites in space to Earth-bound devices, but as of now, he isn't wowing everyday consumers in Europe with the nifty technology.Starlink's sky network can bring internet to underserved, remote areas. The technology is gaining ground for in-flight connectivity, and — controversially — is being considered by the Italian government to provide secure government communications, too.But for most everyday smartphone users in Europe, Musk and competing satellite broadband providers can't crack the market of reliable, high-speed coverage just yet.A recent report from the European Commission revealed that about 79 percent of European households are already covered by ""very high capacity"" networks — i.e. reaching a download speed of at least 1,000 megabits per second or 1 gigabit — increasingly through ultra-fast ""fiber"" connections.""If I were a customer, if I can get fiber, I will take fiber ... If I don't have good broadband from any of the traditional means, then great, I'll have the satellites please,"" said Robert Mourik, the chair of the organization of European telecom watchdogs BEREC.Starlink offers speeds up to five times slower than what Europeans may get — ranging from 25 to 220 Mbps, depending on location, network congestion and weather conditions. It is also inferior to fiber networks when it comes to latency, the time data takes to travel to a server and back, which is critical for online gaming, videoconferencing, virtual reality and autonomous vehicles.Although suitable for everyday internet use, Starlink’s bandwidth won't be enough to shake up Europe’s market, where consumers can afford a much better connection at lower prices — even if data suggests they aren’t desperate for gigabit plans.""In Europe, indeed, it is more difficult to get customers because fiber is a very attractive alternative,"" said Jan Frederik Slijkerman, a telecom analyst at Dutch multinational bank ING.Across the European Union, a Starlink subscription would on average cost around €49 per month, plus an upfront €249 for the terminal kit, compared to just €21.32 for a similar offer from traditional internet providers.Faster options like fiber are cheaper, too, averaging €35.17 — except for a few cases like Greece, where its many islands and mountainous terrain make fixed broadband rollout more challenging.Still, there’s a shot in niche and underserved markets — think rural areas and remote islands where there is no business case for a telecoms connections or connectivity on cruise ships and yachts.""I see it as a bit of an addition to the offering,"" Mourik said. ""What the satellites … can do at the moment is amazing but it's not as good as a fiber connection,"" he stressed, adding that Starlink ""doesn't have the capacity to provide a service to everyone in an area."" In Southeast England, including the wider London area, for instance, Starlink no longer takes new customers after it maxed out its network capacity for that location.The EU's efforts to beef up network security and resilience will see satellites take on a growing role in the years ahead.In December, the European Commission signed contracts to build up a multibillion-euro constellation of cyber-secure satellites, dubbed IRIS², to beam encrypted high-speed broadband internet back to governments, spies, militaries and remote regions.The plan — a not-so-subtle bid to compete with Musk's SpaceX, Starlink's parent company — has faced delays and cost overruns. While it may not impress the tech mogul, it shows the EU wants to ramp up its sovereign space capabilities.Telecommunications ""is a strategic sector that you want to control to some extent,"" Mourik said, recalling that Musk reportedly blocked Ukraine's access to Starlink during a key counteroffensive against Russia, citing concerns Moscow would escalate with nuclear weapons.""You don't want all of the communications in your country to be owned or provided by companies from abroad,"" the European telecoms regulator said.The EU executive is also preparing a new Space Act, expected to land in the spring.Musk has been tetchy about EU efforts to regulate his businesses before. He's been getting scrutiny over his political posts on his social network X, and there is a probe into the platform's safeguards against misinformation.The Space Act will include a raft of measures aimed at making the business of launching rockets and running satellites in orbit more sustainable and responsible.Market access for services such as those that Starlink beams to consumers may very well face stricter rules with the Space Act, setting up another regulatory battle between Brussels and the tech billionaire who's now leading the United States' government efficiency efforts.Although Musk's mega constellation is no threat to Europe's traditional telecom operators today, it's steadily making strides globally. Starlink said it had 4.6 million customers worldwide in 2024, up from 2.3 million in 2023. Tech giant Cloudflare estimated that Starlink traffic grew 3.3 times last year.ING's Slijkerman described satellite connectivity as ""one of the most exciting fields in communication development,"" adding that while Starlink may not disrupt Europe’s broadband scene yet, ""it's opening up a whole new market.""The airline industry, for one, has shown a lot of interest in Starlink satellites to offer solid Wi-Fi to their passengers. Elon Musk has inked deals with United Airlines and Air France.""What we don't know is what secret plans the likes of Elon Musk"" have, ""to what extent are they going to try and break into the direct-to-satellite market"" and ""to offer retail services to mobile customers,"" Mourik said. ""I do know that a lot of mobile operators' CEOs are worried about that.""Apple has quietly been working with SpaceX and U.S. carrier T-Mobile to enable the iPhone's latest update to connect directly to the Starlink service for off-grid communication, according to Bloomberg. It's tough to predict whether — or for how much longer — satellite connectivity providers will remain a niche player, Mourik said. ""What I say now can be completely outdated tomorrow,"" he warned.Starlink didn't reply to POLITICO's request for an interview.Joshua Posaner contributed to this report. Chinese tech giant is at the center of Belgian investigation into wrongdoing.Key competitor Eutelsat won’t break Starlink’s grip on Kyiv’s wartime communications overnight.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Three suspects are now under electronic surveillance, two were released under conditions and three remain in prison. "
technology,"Germany’s Habeck slams ‘tech oligarch’ Musk, calls for a European X",https://www.politico.eu/article/germanys-habeck-rails-against-musk-as-a-tech-oligarch-calls-for-european-alternative-to-x/,"
				Green chancellor candidate warns that Europe’s reliance on Silicon Valley is a threat to democracy.			BERLIN — Germany's Economy Minister Robert Habeck tore into Silicon Valley's grip on Europe's digital space Monday night, calling for the EU to break its reliance on ""tech oligarchs"" like Elon Musk, who he claimed are undermining democracy.Speaking at a televised Q&A with voters before Sunday's national election, the Greens' chancellor candidate framed Musk’s influence as a direct threat to European values.“The most powerful man in the world — the U.S. president [Donald Trump] — and the richest man in the world, Elon Musk, have teamed up to eliminate boundaries on power,” Habeck said, referring to Musk’s substantial role in the Trump administration. “That cannot be in our interest.”Habeck accused Musk and other U.S. tech giants of pushing a hypocritical vision of “free speech” while keeping their business models and algorithms as tightly guarded as “state secrets.” “They must be regulated,” Habeck said. “If necessary, regulated in a way that aligns with our values.”But Habeck said European regulation isn’t up to the task. “Why don’t we have a German or European communication platform of our own?” he asked. “We cannot be dependent on Chinese algorithms or Elon Musk’s far-right fantasies when it comes to shaping our democracy.” Habeck called for Europe to take back control of its digital space, not just in social media but across all industries in which “technological leadership has left the continent.” He warned that action must be taken within the next two years.Habeck’s remarks echo a growing unease in Brussels over the power of Big Tech. Green MEP Sergey Lagodinsky has proposed an even more radical approach: that the EU buy existing platforms instead of trying to build its own. In a policy memo, Lagodinsky argued Europe must act decisively, potentially acquiring TikTok’s European operations or other major platforms to break free of foreign control.“The democratic and geopolitical risks of foreign-controlled social media are too great,” Lagodinsky wrote. “If we want real digital sovereignty, we must regulate, invest, and acquire.”The U.S. president’s tariffs and stance on Ukraine compelled the incoming chancellor to quickly form a stable government capable of responding.Jörg Kukies says German exports to the U.S. will decline by 15 percent if tariffs remain in place.Merz signals a tougher stance on economic policy.Berlin’s economy minister talks of a pivot point in global trade — and an opportunity for the continent to forge new alliances."
technology,"Europe’s peace offerings to Trump: Gas, cars and guns.",https://www.politico.eu/article/europe-peace-offerings-to-us-donald-trump-gas-cars-and-guns-maros-sefcovic/,"
				The European Union’s top trade official brings a suitcase full of proposals to persuade President Donald Trump to call off his trade war threats.			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — EU trade chief Maroš Šefčovič was flying to Washington on Tuesday with a suitcase full of gifts that he hopes can buy peace with United States President Donald Trump and head off a spiraling trade war. Promising a “package of cooperation” to the new administration in a bid to avert Trump’s tariffs, Šefčovič is expected to meet on Wednesday with Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer — both still to be confirmed in their posts — and Kevin Hassett, Trump’s top economic adviser.The visit comes at a perilous time for the bloc, after Trump said he would reinstate duties on steel and aluminum next month, effectively canceling an earlier truce. He has also taken a step toward imposing reciprocal tariffs that would harm Europe’s exporters — especially the auto industry. While Brussels has spent the last four years strengthening its toolkit of trade weapons, it wants first to attempt a deal with Trump. POLITICO details the carrots that Brussels could offer in search of a peace deal:Trump’s obsession over America’s €198 billion trade deficit with the European Union is at the heart of his threats to impose hefty tariffs that could cost the bloc billions. However, his simultaneous pledge to “drill, baby, drill” for more fossil gas has raised hopes that European countries can head off the prospect of a trade war by buying more fuel from across the Atlantic — which could also help the bloc reduce its imports of Russian liquefied natural gas (LNG).“Why not replace it by American LNG, which is cheaper for us and brings down our energy prices?” European Commission President Ursula von der Leyen asked in November.In practice, though, EU countries like Germany have queried how much more American LNG the bloc can buy on top of existing volumes. At least one EU country is pitching the idea of a subsidy scheme to make American LNG cargoes more affordable in the name of energy security. But stumping up cash for fossil fuels would be controversial.Meanwhile, industry voices are pushing for the EU package to include pledges not to punish importers of American fuel for methane emissions — given that Trump is poised to slash environmental standards at home, and energy giants could face heavy fines from European countries if they take advantage of the rule changes. Trump’s complaints against the EU center on cars and the bloc’s 10 percent import tax on vehicles. The U.S. has a 2.5 percent tariff, though that rises sharply to 25 percent for light trucks.The president has promised to erect reciprocal tariffs to match those of other countries, and to impose auto tariffs — while his advisers take the controversial view that European value-added taxes represent a de facto tariff that deserves a U.S. retaliation. While it’s unclear whether the auto-specific tariff would come on top of existing tariffs, any new trade barriers pose considerable risk to Europe’s automotive sector, especially Germany’s big three automakers.The most obvious answer would be to lower the bloc’s tariffs to match those of the U.S., an approach that carmaker BMW and Bernd Lange, the head of the European Parliament’s international trade committee, have advocated. Yet under global trade rules, any reduction in EU tariffs would have to apply to all of its trading partners. That would represent a win for China, whose electric vehicle incumbents are desperate for new markets. Following its anti-subsidy investigation, the Commission slapped new duties on made-in-China EVs last year.Because they were enacted as part of an anti-subsidy investigation, those duties would remain in place even if the EU matches the U.S.’s 2.5 percent vehicle tariff, said Sam Lowe, a partner at Flint Global.Officials in Brussels are starting to realize that Trump might not be the China hawk he appeared to be on the campaign trail.The 60 percent tariffs he repeatedly vowed to impose on goods from China quickly turned into 10 percent (while he slapped 25 percent on free-trade allies Canada and Mexico — before suspending them for a month). Trump has also delayed a ban against China’s TikTok app. Trump’s initial softball moves toward Beijing are setting off alarm bells across the EU, which has already taken steps to jointly tackle China’s market-grabbing practices, taking the view that this would better align Brussels with Washington.Šefčovič has already suggested strengthening the EU’s focus on economic security, for instance in overseeing outbound investments in key technologies, such as artificial intelligence, semiconductors or quantum technology. It’s a step that Washington has already taken.In another move that would echo Trump’s first term, Brussels wants to team up with the U.S. in tackling China’s so-called non-market practices, such as lavishing subsidies on companies or excluding Western firms from public tenders.In 2023, Washington and Brussels tried, but failed, to set up a “green” metals club that would impose duties on steel and aluminum imports from non-market economies such as China. If the two sides can agree on the Global Arrangement on Sustainable Steel and Aluminum, that could lay to rest their tariff fight that dates back to Trump’s first term.Getting European countries to buy more American weapons would have the added advantage of convincing the Trump that the bloc is serious about its own security, just as his administration is flirting with the idea of pulling troops out of Europe and has repeatedly called on EU countries to boost their defense spending. The approach has gained traction in Germany and Italy and was floated last November by European Central Bank (ECB) President Christine Lagarde, who said that EU countries could, in a “cohesive” approach, buy weapons systems they can’t make themselves.This idea would, however, likely face resistance in Lagarde’s home country, France, where President Emmanuel Macron is the most vocal proponent of the EU’s “strategic autonomy” and a strong backer of national defense champions like Dassault.Washington meanwhile promised late last week to speed up arms shipments to Europe, acting on years-old frustrations among its allies about the slow process of buying American-made weapons.Despite warnings from Washington, the EU doesn’t intend to veer from its path of regulating major tech companies, most of which are American, and won't be open to negotiating on its tech legislation, according to a senior European lawmaker.The enforcement of the bloc’s three main rulebooks governing U.S. tech giants like X and Amazon — the AI Act, the Digital Services Act and the Digital Markets Act — cannot be used to appease Washington in a trade conflict.Brando Benifei, the chairman of the European Parliament’s delegation to the U.S., said “we cannot accept this approach, because we do not think that our legislation is part of a negotiation.” That’s why the EU isn’t requesting changes to the U.S. policy, he stressed in an interview with POLITICO.Pieter Haeck, Caroline Hug and Giovanna Coi contributed reporting. This story has been updated to confirm Šefčovič’s schedule.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,X challenges German court decision that forces it to share election data,https://www.politico.eu/article/x-challenges-german-court-decision-that-would-force-it-to-share-data-with-researchers/,"Elon Musk's X has challenged a German court decision that instructed the platform to share data with researchers, the court confirmed to POLITICO.In an urgent injunction, the Berlin Regional Court last Thursday instructed X to share real-time access to the data on the upcoming German elections via its online interface until Feb. 25. The case is one of the first major judicial tests of the European Union’s Digital Services Act (DSA), a landmark social media regulation.The plaintiffs, Democracy Reporting International (DRI) and the Society for Civil Rights (GFF), alleged that X hindered them from tracking potential election interference by not granting them access to key engagement data such as likes, shares and visibility metrics.""X challenges whether the German court is competent to hear the case, given that X’s HQ is in Ireland. The company has not provided data access and our window to conduct the study before the elections is closing,"" DRI's Executive Director Michael Meyer-Resende said in a reaction.The court said a hearing is likely to follow X's objection but that no date has been set.X did not immediately respond to POLITICO's request for comment. The DSA requires that platforms share data with researchers for certain studies. The Commission already accused X in July last year of breaching the DSA for not meeting requirements around data access. It also quizzed Meta last year over its decision to shut down research tool CrowdTangle.Multiple reports by civil society organizations have found evidence of Russia-backed foreign interference in Germany's election scheduled to take place on Sunday Feb. 23.Social media platforms are targets in President Erdoğan’s crackdown on anti-government protests.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.Turkish authorities are cracking down on online speech amid massive civil unrest.Bucharest is at the center of a heated debate over social media policing. "
technology,Vance’s week of waging war on EU tech law,https://www.politico.eu/article/jd-vance-waging-war-eu-tech-law-msc-ai-summit/,"
				The U.S. vice president attacked Europe’s regulations governing American Big Tech giants and online speech.			Live coverage from Munich: POLITICO is on the ground at the Munich Security Conference, where we’re having conversations with top officials, lawmakers and experts at our POLITICO Pub. Follow our exclusive coverage here.MUNICH — From Paris to Munich, JD Vance devoted his first trip overseas to ripping apart Europe's tech regulatory playbook — page by page.In a speech that shocked attendees at the Munich Security Conference on Friday, the United States vice president lambasted European Union policies aimed at fighting disinformation and illegal content on social media, comparing the laws to Soviet-era censorship and calling the EU officials enforcing them ""commissars.""Vance's Munich address came just days after he told Europe that its tech laws were holding back the development of artificial intelligence and stifling innovation, at the Paris AI Action Summit on Tuesday.His remarks were the strongest U.S. rebuke of European tech regulation yet, following weeks of increasingly hostile rhetoric from President Donald Trump, X owner Elon Musk and Meta CEO Mark Zuckerberg. Trump and Zuckerberg have both likened fines on technology companies for breaching EU law to ""tariffs."" Others blame EU digital laws for crippling free speech.The European Commission's response was muted. Its most senior tech policy official, Henna Virkkunen, repeated a line that its rules ""are same for everybody, for European companies, for American companies, for Chinese companies.""Vance felt no similar constraints.Speaking just after Commission President Ursula von der Leyen on Friday, he said: “I look at Brussels, where EU commissars warn citizens that they intend to shut down social media during times of civil unrest, the moment they spot what they’ve judged to be 'hateful content.'""Vance also dismissed European worries that foreign countries — notably Russia — are actively meddling in European democracies with hybrid campaigns, including on social media platforms.Germany is heading for an election on Feb. 23, and officials and disinformation experts have flagged several coordinated efforts to influence the vote through disinformation.Vance mocked the notion that such campaigns could derail elections. ""If your democracy can be destroyed with a few hundred thousand dollars from a foreign country, then it wasn’t very strong to begin with."" In his speech, Vance singled out Romania.A first-round election in November resulted in a surprise victory for the far-right ultranationalist Călin Georgescu, in part thanks to a wildly successful TikTok campaign. The result was later annulled amid concerns over a Russian influence campaign.""To many of us on the other side of the Atlantic, it looks more and more like old entrenched interests hiding behind ugly, Soviet-era words like misinformation and disinformation, who simply don’t like the idea that somebody with an alternative viewpoint might express a different opinion, or God forbid vote a different way, or even worse, win an election,"" Vance said.Vance's Munich stop was just the latest case of the U.S. government pressuring the EU to tone down its enforcement of tech laws. In Paris on Tuesday, he insisted that Europe needs an approach that ""fosters the creation of AI technology rather than strangles it.”“To restrict it’s development now would not only unfairly benefit incumbents in the space, it would mean paralyzing one of the most promising technologies we have seen in generations,” Vance said in his first major trip overseas since taking office.  The EU's new law on social media, the Digital Services Act, comes with the threat of fines of up to 6 percent of global annual turnover — and Musk's social media platform X is expected to be slapped with a fine in the law's first investigation.Social media giant Meta in past years was hit with monster fines, including a €1.2 billion penalty, for privacy violations; last November it was fined €797 million for breaching EU antitrust rules.The European Commission has so far suffered the blows dealt to it by Washington without much response.Asked by POLITICO what the EU thought of Vance's speech, tech chief Virkkunen said the vice president was “misunderstanding that we are regulating the content on online platforms,” as that is something the bloc is “not doing.”“The European Union has our own rules and legislations, and of course we will enforce them,” she said.That muted response drew criticism from some European lawmakers over the weekend.  French liberal European Parliament member Nathalie Loiseau said “the European Commission should stop shying away.” Damian Boeselager, European lawmaker for Germany’s left-wing Volt party, said it “is wasted communication chance to really assert European sovereignty, also in the digital space.”Others were more lenient. “To start a direct confrontation with USA right now is probably not the smartest way to react,” said Christel Schaldemose, the Danish social-democrat lawmaker who led the drafting of the Digital Services Act.According to Marietje Schaake, former liberal European Parliament member and tech expert at Stanford University, ""the attacks on Europe should strengthen its resolve to deepen its digital sovereignty, and to become significantly less dependent on the technology companies that proudly support this confrontational White House.""Laurens Cerulus reported from Munich. Eliza Gkritsi contributed reporting from Brussels. Antoaneta Roussi and Joshua Posaner contributed reporting from Munich. Investigation showed pro-Russia groups were offering crypto payments in exchange for hybrid attacks across Europe.Europe is facing a “power vacuum” at a crucial time, new Defense Minister Theo Francken told POLITICO.The Chinese AI firm recently emerged as a fierce competitor to industry leaders like OpenAI.Regulators suspect foul play in how far-right firebrand Călin Georgescu used the Chinese-owned app to sway voters."
technology,Britain dances to JD Vance’s tune as it renames AI institute,https://www.politico.eu/article/jd-vance-britain-ai-safety-institute-aisi-security/,"
				After the U.S. VP blasted “hand-wringing about safety,” Britain’s AI institute gets a new look. References to AI creating “unequal outcomes” are out.			AI generated Text-to-speechLONDON — The hints first came in Paris. Rumors were circulating over the two-day Artificial Intelligence Action Summit in the city this week that Britain would recast its landmark AI Safety Institute (AISI) as a “security institute.”British government officials had cited an absence of references to “national security” as their reason for not signing the summit’s declaration, positioning Britain in lockstep with the United States.Their language dovetailed with a landmark speech from U.S. Vice President JD Vance in Paris on Tuesday, setting out the administration’s thinking on tech-geopolitics.“The AI future is not going to be won by hand-wringing about safety,” Vance said. Britain was listening. The country’s science and tech ministry said on Friday that its AI Safety Institute, the world’s first, would focus on “serious AI risks with security implications” and change its name.The AI Security Institute will focus on cybersecurity and partner with the Ministry of Defence to mitigate biosecurity risks, while also working with the Home Office on fraud and the use of AI to create child abuse images.Henry de Zoete, former AI adviser to the U.K. government and now senior adviser at the Oxford Martin AI Governance Initiative, said: “The U.K. AISI leads the world on testing powerful AI models for national security risks. It’s great to see it double down on this approach.”Technology Secretary Peter Kyle described it as the “logical next step” for the AISI — and insisted its work wouldn’t change. But the institute has quietly made subtle changes to how it refers to its work.In his speech in Paris this week, Vance insisted that “AI must remain free from ideological bias” and “never restrict our citizens’ right to free speech.”On its website the institute has now dropped talk of “societal impacts” as a reason for evaluating models, changing it to “societal resilience.” References to the risk of AI creating “unequal outcomes” and “harming individual welfare” have also gone.The institute has also dropped “public accountability” as a reason for evaluating models, changing it to keeping the “public safe and secure.”Those moves are already attracting scrutiny.“We are pleased to see how seriously the U.K. is taking criminal misuse of AI,” said Elizabeth Seger, director of digital policy at think tank Demos. “However we are deeply concerned that any attention to bias in AI applications has been explicitly cut out of the new AISI’s scope.”“We ask the government to clarify where, if not AISI, harms to U.K. citizens from bias and discrimination will be tackled,” Seger added.Michael Birtwistle, associate director at the Ada Lovelace Institute, said it risked leaving a “whole range of harms to people and society unaddressed,” which the AISI had previously committed to tackling.“The most significant and recurring AI scandals relate heavily to bias, from Australian robo-debt, to the Dutch welfare algorithm, to the Ofqual exams algorithm. There is a real risk that inaction on risks like bias will lead to public opinion turning against AI and the U.K. missing out on its benefits.”The U.K. government did not immediately respond to a request for comment on the changes.On the morning media round Friday, Kyle got little chance to talk about his department’s announcement. Instead the conversation was dominated by Ukraine’s future and tariffs.Trump signed a presidential memorandum Thursday moving the U.S. one step closer to a “reciprocal” tariff system. This could see Britain hit with tariffs of up to 21 percent on exports if, as indicated by Trump’s trade adviser Peter Navarro last night, VAT is considered by the administration as a tax on imports. Kyle said: “We need a government with cool, clear thinking at times like this… We will assess any changes and challenges that come down the line from any part of the global economy, and we will act appropriately and in the best interest of Britain."" As POLITICO first reported earlier this month, the thinking inside the U.K. government has changed on how to bring forward new AI legislation. Ministers have dropped language about forcing AI companies to give the AISI pre-release access for testing, which was the subject of industry resistance.The last time the country’s Technology Secretary Peter Kyle mentioned it publicly was the morning after Trump was elected.UK prime minister says Britain needs to remain a pioneer on free speech.The U.K. hopes teaming up with the U.S. on advanced tech might help avoid the president’s tariff wrath.LONDON — Britain’s data watchdog has opened an investigation into how TikTok uses children’s personal information to recommend content to them. The Information Commissioner’s Office (ICO) said …SNEAK PEEK —  The U.K. AISI drops “safety” for “security” as it rebrands for the Trump era. — DSIT and Anthropic ink a new partnership. — What’s happened to the …"
technology,Criminals use AI chatbots too,https://www.politico.eu/article/criminals-use-ai-chatbots-too-experts-warn/,"AI generated Text-to-speechA daily download of the topics driving the tech policy agenda, from Brussels to London to Silicon Valley.By PIETER HAECKwith ELIZA GKRITSI and MATHIEU POLLETView in your browser or listen to audio— Criminals use AI chatbots to commit fraud, Europol's chief AI officer warns. — The U.K. switches from 'AI safety to 'AI security.' — The Munich Security Conference is working hard to make killer AI cool. Good morning and welcome to Morning Tech. This is Pieter. #TGIF (unless you're in Munich, then the fun is only starting)As always, send the hottest tech policy news and gossip to Pieter, Mathieu and Eliza.'CRIMEGPT' OR CRIMINALS USE AI CHATBOTS TOO: The rise of artificial intelligence chatbots and other content generators has made it much easier for criminals to produce convincing phishing e-mails and commit other kinds of fraud, Europol’s chief AI officer Didier Jacobs warned. “In the past, you needed thirty people to make phishing e-mails and translate these and send them out,” Jacobs told Morning Tech. “Theoretically you could do this almost by one person today.” But how do you know? Asked where Europol mainly spots the use of AI in criminal activities, his answer is sobering: it’s hard to say. AI is mainly being used by criminals to commit fraud, but providing hard evidence of the use of machine-generated content is challenging. “There’s little hard evidence, of course, because you don’t know anymore if it’s human-written or machine-written,” Jacobs said, who added that detection is a key challenge for the tech scene in general. DarkLLM: Criminals have already found a way to make large language models (LLM, the umbrella term for models underpinning services such as ChatGPT) work for them: turning them into what Europol calls a “DarkLLM.” “You can download an LLM,” Jacobs explained. “When you use it locally, it leaves no logs, no traces. You can retrain the models, you can remove the ethical guardrails from the models.” Criminals retrain the model to make it effective in criminal tasks, such as generating malicious code or phishing emails. AI vs. AI: Criminals use AI, but law enforcers do too. Inside Europol, AI is being used to “release human analysts from repetitive tasks,” Jacobs said, especially when working with vast and complex datasets. Another use case is to avoid exposing analysts to “gruesome material.” Jacobs emphasized that the European Union’s law enforcement agency is not capturing the data mentioned. EU member countries are legally handing over datasets to Europol for analysis. Since these datasets can contain millions of messages, AI is a helpful tool for reviewing all that. Terror warning: Former Google Chief Executive Eric Schmidt also highlighted the malicious use of AI in an interview with the BBC after the Paris AI Action Summit where he warned that it could be used by terrorists or ""rogue states"" to create weapons that harm innocent people.“Think about North Korea, or Iran, or even Russia, who have some evil goal. This technology is fast enough for them to adopt that they could misuse it and do real harm,” Schmidt said, adding that it could even mean creating weapons to facilitate “a bad biological attack.” UK SWITCHES FROM SAFETY TO SECURITY: Britain’s AI Safety Institute, will be recast as a “Security Institute,” tech secretary Peter Kyle will announce at the Munich Security Conference today, reports our colleague Tom Bristow.Love you too: The government said in a press release overnight that national security and protecting citizens from crime will become the “founding principles” of how it sees responsible AI development.That means: Looking at how the technology can be used to develop chemical and biological weapons, how it can be used to carry out cyberattacks, as well as fraud and child sexual abuse, but Kyle said that the AISI’s work won’t change, while AISI chair Ian Hogarth said it marked the “next step” of the institute.POLAND HEART GOOGLE: Poland's state-backed development fund struck an AI cooperation deal with Google that will secure the country's access to cutting-edge AI tools and see the search giant commit to a $5 million program to train 1 million Poles in AI, Prime Minister Donald Tusk said on Thursday while hosting Google CEO Sundar Pichai, writes in our colleague Wojciech Kość.POSTCARD FROM MUNICH — AI ENTERS THE FRAY: From Google's Kent Walker to Microsoft's Brad Smith, to Meta and Palantir and Germany's Helsing, tech companies are hitting Munich today for the first day of the three-day security bash called the Munich Security Conference.Two sides of the AI coin: While Ukraine talks and prickly issues like Greenland dominate the bilaterals and watercooler chats, we're listening for how the conversation around AI takes center stage. Roughly, that's in two ways:1. AI as a threat. Last year the tech community locked arms around an industry pledge to fight deepfakes. That's a narrative that continues this year: the threat of AI being misused to defraud and scam people and to create disinformation and deepfakes still looms large.Google ahead of the event released a report on the ""adversarial misuse"" of AI, in which it rang the alarm that tools are being used, but added that malicious actors aren't yet innovating strongly with AI.2. AI as the savior. Different this year is another message from the tech sector: You need AI for your own security. Google this month dropped a pledge not to use its AI in weapons systems and published a blogpost saying it wants to ""create AI that protects people, promotes global growth, and supports national security."" Helsing, Palantir and many others have been outspoken about this in the past.That second message matches the mood that dominated Paris earlier this week, where talk of AI safety took a backseat. We had that story earlier.Case in point: European defense technology firm Helsing, known for its AI weapons, announced it is producing 6,000 additional drones to send to the Ukrainian battlefield. The drones are manufactured and sourced in Europe, in what Helsing calls ""resilience factories,"" a pitch that'll land well with European governments seeking to keep defense manufacturing close.COMMISSION IN MUNICH: 13 commissioners jet off to the Bavarian city, with tech boss Henna Virkkunen and innovation chief Ekaterina Zaharieva among them. See the full agenda here. Virkkunen also meets with Oracle CEO Safra Catz and Bitkom President Ralf Wintergerst.WHO ELSE IS IN MUNICH? POLITICO is an official media partner of the Munich Security Conference and is hosting the POLITICO Pub at the Rosewood Hotel just next to the main venue.Cybersecurity Editor Laurens Cerulus is hosting a discussion at 11.30 a.m. on ""Wars of the future” featuring former U.S. Deputy National Security Advisor Anne Neuberger, NATO’s Assistant Secretary General Jean-Charles Ellermann-Kingombe and Recorded Future’s Christopher Ahlberg. Livestream here.SPOTTED IN MUNICH: André Loesekrug-Pietri, of JEDI fame, sporting his deep green baseball cap with white all-caps letters saying: Make Europe Great Again.NEW ERA? The European Commission struck a new tone talking about fact-checking at a Thursday press briefing when an official, speaking on condition of anonymity, said that it wasn't the only tool to fight disinformation since there has been an ""evolution"" in the conversation around it. The Commission has previously heralded fact-checking as a “crucial pillar” of fighting disinformation and has poured resources into various fact-checking efforts. “We support fact-checking, but it would be short-sighted to say that is the only way to address disinformation,” the official said. “We want to be the AI continent, don't we? There might be possibilities also to use in the future technology” to help detect deepfakes, the official said. Fuzzy on the details: In the same briefing, another official heralded the standards for the independence of fact-checkers created by the Commission-supported European Fact-Checking Standards Networks. No wonder: The briefing, by the way, was to announce the conversion of a code of practice on disinformation into a formal code of conduct under the Digital Services Act. Several Big Tech platforms have pulled out of the code's fact-checking permission and Meta has dropped its fact-checking in the U.S. in favor of X-style community notes.NO RUSH: A Thursday deadline set by Jim Jordan, the head of the U.S. Congress Judiciary Committee, for Virkkunen to respond to allegations that the DSA amounts to censorship is “non-binding” on the Commission, its spokesperson Thomas Regnier said. Virkkunen’s cabinet told Morning Tech she will reply “in due course.”SPEAKING OF WHICH — IT WASN’T TRUMP! The EU is cutting back tech regulation to spur AI investments, not because of pressure from Trump and Big Tech, Virkkunen told the FT in an interview.THINK TWICE ON CONSOLIDATION: Consumer group BEUC urged competition czar Teresa Ribera not to give in to industry calls to soften merger control, particularly on telecoms, at a Thursday meeting. Telecoms liberalization ""has been a successful story for consumers thanks to pro-competition rules and enforcement,"" BEUC's Agustín Reyna told my colleague Francesca Micheletti. ""We should not undermine this progress by giving in to incumbents seeking to consolidate and extract more money from consumers.” 97— That’s the number of people working today at the AI Office, according to the European Commission's latest breakdown communicated to the Council’s telecoms working party on Tuesday.CONGRATS TO DIGITAL RIGHTS VIOLATORS: Dutch privacy rights organization Bits of Freedom crowned the lucky “winners” of its annual Big Brother awards on Thursday evening, for the biggest digital rights violators of 2024, writes our colleague Ellen O'Regan.Who came out on top? Prizes were handed out to the Dutch finance minister for creating anti-terrorism policies that force financial institutions to use “discriminatory risk profiles and algorithms” and Belgian media group DPG Media for its “daily tracking and profiling of millions of news consumers.”Alibaba confirms Apple deal bringing AI features to iPhones in China. TechCrunch.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,The EU’s strategy to counter Trump’s tariffs: An iron fist in a velvet glove,https://www.politico.eu/article/eu-strategy-donald-trump-tariffs-trade/,"
				Brussels has strengthened its trade toolkit since Donald Trump’s first term. But it would need the broad support of EU countries to strike back hard.			AI generated Text-to-speechBRUSSELS — German Chancellor Olaf Scholz says the European Union would be ready to retaliate if Donald Trump imposes tariffs “within an hour.”Not so fast. The U.S. president this week reinstated duties on steel and aluminum that he hit the world with in his first term — and on Thursday announced he would impose “reciprocal” tariffs that could inflict huge harm on the European auto industry. The European Commission, which represents the bloc’s 27 countries on trade, responded by seeking dialogue. Yet should negotiations fail, the bloc claims to be far better prepared than last time around. Its strategy: an iron fist in a velvet glove.“Especially with a personality like Trump, if we don’t react, he’ll trample us,” says Jean-Luc Demarty, who headed the Commission’s trade department during Trump’s first term. “We have all the instruments and we must react effectively on principle. ”Commission President Ursula von der Leyen has vowed a “firm and proportionate” response to the 25 percent U.S. steel and aluminum tariffs. Calling them unlawful, she said that Trump’s protectionist policies “will not go unanswered.” But she also extended an olive branch when she met Vice President JD Vance on Tuesday in Paris, in the first high-level meeting between the two administrations. She called for cooperation in tackling a Chinese steel glut, describing it as a “critical” challenge for the two historic allies.EU trade chief Maroš Šefčovič also urged constructive dialogue in a call on Wednesday with Trump’s designated Commerce Secretary Howard Lutnick and nominee for Trade Representative Jamieson Greer. He won strong support for the Commission’s approach from EU trade ministers at an emergency video call directly after.For now, at least.It’s a balancing act for von der Leyen and Šefčovič as Trump sees red over America’s transatlantic trade deficit. The EU is a net exporter of autos, pharmaceuticals and food to the U.S. But it’s also a big importer of services — and that makes Big Tech a potential target for European retaliation. After the shock of Trump’s first mandate, and nudged by France, the EU has strengthened its trade defense arsenal — first by revamping its Enforcement Regulation, which enables the EU to respond if breaches by partners in trade agreements harm its commercial interests.“Those who say the EU is ill-prepared are wrong: During the past term we have prepared ourselves exactly for a scenario that is unfolding at the moment. Because we have expanded our toolbox, we can now better defend our interests,” said Bernd Lange, a senior lawmaker who chairs the European  Parliament’s trade committee.Its first line of retaliation could be symbolic — reinstating the €2.8 billion in tariffs it imposed in response to Trump’s steel and aluminum tariffs back in 2018, including on Harley-Davidson motorcycles, Levi jeans and cranberry juice. But Brussels knows symbolism alone won’t be enough to deter Trump.“What we did in 2018 was targeting products that don’t hurt us, but hurt them,” said Demarty, who also worked as economic adviser to Jean-Claude Juncker, the Commission president at the time. “Politically symbolic products: Harley-Davidson, bourbon whiskey, corn. I was the one who personally added these products back then. My troops were totally tetanized at the idea of adding such sensitive products,” he added. Another possible leverage is the EU’s regulatory arsenal, especially the bloc’s grip on Big Tech. It’s an area where Washington has skin in the game, with Elon Musk’s X or Mark Zuckerberg’s Meta in the EU’s crosshairs over the tech giants’ content regulation and sharing of data with authorities.As the world’s largest exporter of services, the U.S. could be a prime target for EU retaliation. Here, Brussels could add restrictions on American consulting and financial firms, revoking intellectual property rights, further restricting data flows, or increasing digital taxes on U.S.-based platforms. It was with a Trump 2.0 scenario in mind that the European Commission devised a way to hit back if one of its member states were subjected to economic blackmail, its Anti-Coercion Instrument. “We now see in this Trump administration that coercion may become a standard form of behavior in U.S. trade policy,” said Ignacio García Bercero, who was the Commission’s point person on U.S. trade during Trump’s first term from 2017 to 2021.While the tool was designed to put the Commission in the lead, EU countries sought to ensure they would still get to call the shots in determining whether Washington or Beijing crossed the line, and how any injury should be repaired. A textbook scenario to deploy the tool might be if Trump — with his eye on annexing Greenland — imposes tariffs in a bid to pressure Denmark into surrendering control over the strategic Arctic island.Although it would first have to negotiate with Washington, the EU could then pull the trigger on its trade “bazooka,” with a process that could lead in as little as six months to increasing customs duties on specific goods, imposing quotas or excluding U.S. companies from public contracts in the EU. But that all depends on national capitals — where a qualified majority of 15 out of the EU's 27 member countries would be needed to back the Commission’s proposed course of action. Should that not happen, “there is a fundamental problem with the way the European Union is working,” García Bercero concluded.Put another way, the EU may have equipped itself to fight the last trade war — rather than the next one. For that, argues David Kleimann of the ODI think tank, it needs to create the legal basis for a new tool to respond in real time to a systemic trade threat — like the universal tariffs that Trump threatened on the campaign trail.“This gap can be temporarily addressed through ad-hoc stand-alone legislation once the need arises,” writes Kleimann. “But the time is now for the institutions to consider adding a more robust instrument of general application to its armoury to equip the Union for the coming era of trade wars.”This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
technology,European Parliament urges lawmakers to only use encrypted messages after China hacks,https://www.politico.eu/article/european-parliament-urge-mep-message-signal-encryption/,"
				The advice comes after it was revealed that a China-linked hacking group conducted large-scale intrusions on U.S. and global telecommunication providers. 			The European Parliament has asked lawmakers, parliamentary assistants and staff to use Signal, an end-to-end-encrypted messaging app, as an instant messaging tool for work-related communications, according to an internal email seen by POLITICO. ""Due to a recent increase in threat on commercial telecommunications infrastructure and following certain incidents targeting large telecommunications companies mainly in the U.S., the risk of interception or manipulation of unsecure communications via public networks has increased,"" the email said. The advice comes after it was revealed that a China-linked hacking group called Salt Typhoon conducted large-scale intrusions on U.S. and global telecommunication providers. New research by cyber intelligence firm Recorded Future on Thursday showed the group had breached telcos as recently as January, including in Italy and the U.K., despite U.S. sanctions.Parliament's email reminded lawmakers they should use ""Parliament's corporate solutions"" Teams and Jabber when possible and only Signal if the two are unavailable.“The use of Signal is proposed as a safe alternative in cases where no equivalent corporate tool is available,”  the Parliament’s press service said in a statement, adding it couldn't “comment further on security or cybersecurity measures or tools."" In 2020, the European Commission gave a similar advice, telling its staff to switch to Signal for secure communications.In 2023, several EU institutions also banned the use of Tiktok on work-related devices, requesting that its staff — numbering about 32,000 — remove the app from officials’ devices and their personal devices with work-related apps installed. The decision sparked a wave of similar measures across European capitals.Signal's application is favored by cybersecurity experts and privacy activists because of its end-to-end encryption and open-source technology. Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
technology,"AI risks could spark an ‘Osama bin Laden scenario,’ former Google boss fears",https://www.politico.eu/article/ex-google-boss-eric-schmidt-fears-ai-risks-could-lead-to-a-bin-laden-scenario/,"
				Eric Schmidt calls for government oversight — but also warns against overregulation, especially in Europe.			AI generated Text-to-speechAs countries jostle to win the artificial intelligence race, Google's former CEO cautioned that AI could pose “extreme risks” if it falls into the wrong hands. Tech billionaire Eric Schmidt told the BBC in an interview after the Paris AI summit that the booming technology could even be used by terrorists or “rogue states” to harm innocent people using weapons created with it. “Think about North Korea, or Iran, or even Russia, who have some evil goal. This technology is fast enough for them to adopt that they could misuse it and do real harm,” Schmidt said, adding that it could even mean creating weapons to facilitate “a bad biological attack.”Schmidt noted the 9/11 attacks, in which Islamist terrorists hijacked planes and flew them into the World Trade Center in New York: “I always worry about the 'Osama bin Laden' scenario, where you have a really evil person who takes over some aspect of our modern life and uses it to harm innocent people.”The former Google chief called for government oversight of private tech companies developing AI models: “It's really important that governments understand what we're doing and keep their eye on us.”But Schmidt also warned that overregulation could hinder the pace of innovation, citing Europe as a bad example, echoing remarks he made earlier this week in Paris. “The AI revolution, which is the most important revolution in my opinion since electricity, is not going to be invented in Europe,” Schmidt said, accusing the EU of overregulating and driving away industry investment.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Decision in Yerevan paves the way for a long and winding (and potentially fruitless) quest toward a place in the bloc.Romania, one of the last EU members not included in the Visa Waiver Program, had been due to join in March.German and Finnish authorities have taken similar steps, and Belgium is planning to do the same, as the Trump administration removes some protections for sexual minorities. "
technology,Starlink looks pale in comparison with what Europeans can get,https://www.politico.eu/article/starlink-looks-pale-in-comparison-what-europeans-can-get/,"AI generated Text-to-speechA daily download of the topics driving the tech policy agenda, from Brussels to London to Silicon Valley.By PIETER HAECKwith MATHIEU POLLET and ELIZA GKRITSIView in your browser or listen to audio— Has Elon Musk's Starlink got a shot in Europe? Not really. — The withdrawal of the EU's AI liability rules has fans and critics. — There's a new report about the price tag of the Eurostack. Good morning and welcome to Morning Tech. Hi, this is Pieter, back in Brussels after frantic days in Paris — invite me for coffee so I don't fall asleep. As always, send the hottest tech policy news and gossip to Pieter, Mathieu and Eliza.STARLINK IS NO MATCH: Elon Musk’s thousands of Starlink low-Earth orbit satellites may provide internet from space, but are failing to wow everyday consumers in Europe. Cracking a market with solid high-speed coverage and low prices won’t be easy for satellite broadband providers.Despite breakthroughs in niche markets and a fair shot in underserved areas — think countryside and remote islands where there is no business case for operators to fix the blank spots — Musk's mega constellation is no threat to Europe's traditional telecom operators today.By the numbers: The latest report from the European Commission tracking the bloc's digital transformation revealed that about 79 percent of European households are already covered by ""very high capacity"" networks — i.e. reaching a download speed of at least 1,000 megabits per second or one gigabit — like ultra-fast fiber connections. Starlink, with promises to offer speeds between 25 to 220 Mbps, looks pale in comparison and comes at a bigger price. Across the EU, a Starlink subscription would on average cost around €49 per month, plus an upfront €249 for the terminal kit, compared to just €21.32 for a similar offer from your regular telco.It’s a no-brainer: ""If I were a customer, if I can get fiber, I will take fiber,"" said Robert Mourik, the chair of BEREC, the body of European telecom watchdogs. ""If I don't have good broadband from any of the traditional means, then great, I'll have the satellites please.""But, but, but: Starlink is nonetheless making strides globally. It had 4.6 million customers worldwide in 2024, up from 2.3 million in 2023. IT giant Cloudflare estimated that Starlink traffic grew 3.3 times last year. Given the ""enormous amount of innovation in satellite space,” it's tough to predict whether — or for how much longer — satellite connectivity providers will remain a niche player, Mourik said. ""What I say now can be completely outdated tomorrow,"" he warned.Mathieu and Hanne have the full story (and the data) here.GOODBYE AILD, WE HARDLY KNEW YOU: The European Commission had promised early this week to simplify its artificial intelligence regulatory framework and now we know what that looks like: the EU’s AI liability rules are being axed and much more could follow in a digital-focused simplification package at the end of this year. Parliament pushback: The AI liability withdrawal was poorly received by lead lawmaker, German center-right politician Axel Voss (who is also a big fan of cutting red tape). He slammed the Commission for choosing “legal uncertainty, corporate power imbalances, and a Wild West approach to AI liability.” Italian socialist lawmaker Brando Benifei, the AI Act lead, joined him and called the decision “disappointing,"" saying that “enforcing the AI Act is now more critical than ever."" EPP vs. EPP: Tech boss Henna Virkkunen has emerged as the face of the drive to cut back on AI red tape. “Europe needs less bureaucracy and more space for innovation and entrepreneurship,” she said on Instagram of the work program. Virkkunen—who is from the European People’s Party—now faces pushback from Voss, who is also EPP. Industry applauds, civil society not: Daniel Friedlaender of Big Tech lobby CCIA said it was “laudable” that the Commission is willing “to review past work” but complained that “little effort” was made to streamline existing rules. Laura Lazaro Cabrera, of the non-profit Center for Democracy and Technology, said that the withdrawal is “sending an alarming message that even the most basic procedural safeguards are fair play in the rush to embrace innovation.”It could come back from the dead: At a Wednesday press conference, Trade Commissioner Maroš Šefčovič signaled that the AI liability rules could survive after all. Putting it on the withdrawal list is an “invitation” to the co-legislators to tell the Commission they want it after all, he said.THE PRICE OF FREEDOM: How much would it take for Europe to develop its own vertical stack of technologies to ensure autonomy from other regions (such as the U.S.) and increase its competitiveness? At least €300 billion in the next decade, according to the over 100-page EuroStack report, which was published today. That’s a lot less than the €5 trillion previously estimated by the Chamber of Progress, a U.S. trade group.What is it? The EuroStack initiative, led by an unusual alliance of academics and policymakers, aims to bring together Europe’s strengths across tech to drive self-reliance and innovation. It proposes a €300 billion sovereignty fund to be governed by a novel structure under the European Commission's Competitiveness Compass. The first €150 billion of that should be deployed between 2025 to 2030.The report published today was commissioned by German think tank Bertelsmann Stiftung in cooperation with University College London’s Institute for Innovation and Public Purpose, the Centre for European Policy Studies and Stiftung Mercator.What is in it? According to the EuroStack report, the underlying technologies to be developed are AI, cloud computing, connectivity, electronic identification, data access, the Internet of Things and digital currencies, as well as “energy-efficient public computing capacity” and chips to support AI development. Rare earths and critical raw materials also get mentions. It sees potential applications for healthcare, manufacturing and other industries. How to do it? The report proposes creating a chief EuroStack officer role to oversee the process. A steering committee made up of EU institutions, member countries, industry, academia and civil society, will appoint the CEO. The committee will meet quarterly. An “advisory board of independent experts will provide guidance on technical, ethical, and policy matters” to the CEO, the report said.DC CALLING: EU tech chief Henna Virkkunen was told to set up a briefing on the Digital Services Act with U.S. lawmakers by 4 p.m. on Thursday. Who set that deadline? The chair of the U.S. Congress Judiciary Committee, Republican Jim Jordan, in a late-January letter, expressing concerns about how the DSA affects free speech across the Atlantic. As of Wednesday afternoon, Virkkunen had not responded to Jordan’s letter, but she will “in due course” Commission spokesperson Thomas Reigner told Morning Tech.ALARM BELLS FOR BERLIN: Russia-backed campaigns to discredit Germany’s center-right Christian Democratic Union ruling party and the Greens, have broken into the mainstream, says research by non-profit think tank CeMAS, CORRECTIV, Newsguard and Gnida Project to be published today and shared with Morning Tech. The campaign by a group known as Storm 1516 is spreading allegations that the CDU and Greens are sexually abusing minors. Some videos on TikTok have been seen hundreds of thousands of times, whereas one has 1.7 million views. The content has also been spreading widely on Facebook, X and Telegram.SPAIN TAKES THE HELM: Spain’s National Commission for Markets and Competition (CNMC) will be chairing the European Media Services Board, which came to life on Saturday. The director of Spain’s CNMC, Carlos Aguilar, will be the president, and Amma Asante of the Dutch media authority, will be the vice-president. The board oversees the implementation of the European Media Freedom Act.""One problem is that the referee never wins. The second problem is that ... no one really likes the referee."" — LinkedIn co-founder Reid Hoffman told an event in Paris that Europe is the referee in the global AI race. He argued that's not a good thing.COMMISSION: Tech sovereignty boss Henna Virkkunen has a call with Dutch Economy Minister Dirk Beljaarts. Competition boss Teresa Ribeira meets with BEUC's Agustín Reyna.PARLIAMENT: The final day of plenary has a debate on critical communications infrastructure.Adobe launches an AI video tool to compete with OpenAI. Reuters.Ex-Google chief warns the West to focus on open-source AI in competition with China. FT. After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,"Funding culture is key to EU security, commissioner says",https://www.politico.eu/article/funding-culture-key-eu-security-commissioner-glenn-micallef/,"
				“If you want to destroy a nation,” Glenn Micallef says, “you attack its culture.”			AI generated Text-to-speechBRUSSELS — The European Union should dedicate more money to a key culture program that is vital to the bloc’s security, said new Culture Commissioner Glenn Micallef.In an exclusive first interview with POLITICO, the youngest commissioner among the new crop of 26 said the Creative Europe program, a €2.4 billion initiative to support Europe’s creative and audiovisual industries, should be expanded in the EU’s next seven-year budget.Talks on the budget, which will run from 2028 to 2034, are heating up, with calls to spend more money on defense and to bolster the bloc’s waning competitiveness. But culture funding should not be overlooked, Micallef argues.“Culture is part and parcel of our work on democracy and our work on strengthening the Union, including our security in Europe,” he said.“This is a program that needs to be strengthened and I will continue to make the case for that.”Micallef cited Ukraine, arguing that Russia is attacking its cultural and heritage sites in an attempt to destabilize the country as a whole.“If you want to destroy a nation, if you want to completely erase a country, you attack its culture.”Micallef visited Ukraine earlier this month for a meeting on how to protect Ukraine’s heritage during Russia’s ongoing invasion.“The night before we crossed the border into Ukraine, a UNESCO world heritage site was destroyed in Odesa, specifically targeted by the Russians,” Micallef said.Attacks on cultural institutions and artists are happening in EU countries too, Micallef noted, flagging examples in Slovakia, Bulgaria and Portugal.He refrained from discussing the state of play in any of those countries but said the European Commission could weigh in if needed — also through its annual rule-of-law reports.“I want to focus on promoting this value of artistic freedom and artistic expression, and we will defend it, of course, wherever there are attacks,” he said.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,"X verifies fake, crypto-hawking Maltese president impersonator",https://www.politico.eu/article/x-officially-verifies-fake-myriam-spiteri-debono-elon-musk/,"
				The bogus handle has since been deleted, but Myriam Spiteri Debono’s real account still doesn’t have a gray tick.			A fake social media account impersonating the president of Malta was mistakenly verified by X, Maltese media reported Wednesday.The account, which had some 50,000 followers before it was suspended, purported to belong to Maltese President Myriam Spiteri Debono and had the handle @MyriamDebono. It was given a gray checkmark, denoting an official government account.The imposter shared political content as well as what appeared to be scammy announcements about a new Maltese cryptocurrency.“We’ll launch Republic of Malta’s national crypto soon,” the account wrote in a since-deleted post.A spokesperson for the president confirmed to the Times of Malta that the profile was fake, saying they were “aware of several pages and profiles impersonating H.E. President Myriam Spiteri Debono on Facebook, X and Instagram.”X, formerly Twitter, changed how it verifies accounts after tech billionaire Elon Musk bought it in 2022, to allow anyone to purchase a blue verified checkmark. The company introduced a gray checkmark, which can't be bought, for government officials and organizations.The Maltese president’s actual account, @president_mt, remains unverified.Many public figures and organizations have left X since Musk bought it, citing concerns about disinformation and hate speech on the platform, as well as the right-wing politics of its new owner.Russia’s negotiator insisted there was a “positive outcome” after two days of talks with Donald Trump’s envoy Steve Witkoff in Washington.Citizens of the EU “feel let down by our oldest ally,” European Commission President Ursula von der Leyen says, warning that the bloc is “prepared to respond.”Russian “athletes and officials are part of the state propaganda machine,” Kyiv warns new International Olympic Committee President Kirsty Coventry.It is “concerning” when people are barred from politics, U.S. State Department says."
technology,EU’s red tape bonfire stokes tech patent rows,https://www.politico.eu/article/eu-cuts-standard-essential-patent-bill-tech-telecom-companies-legal-battles/,"
				A move by the European Commission to kill its standard essential patent rules has alarmed companies that license connectivity technology.			How do you manage to upset carmakers, Big Tech and center-right lawmakers at one stroke?The European Commission's junking of its standard essential patents bill — intended to curb lengthy legal battles over patents in the telecoms sector — has been damned by a key lawmaker as a ""complete mistake"" and mourned by companies that license such patents as ""a terrible signal to innovative businesses.""European tech firms such as Nokia, on the other hand, which depend on licensing connectivity technology to an increasing range of connected devices, have been delighted by the bill's demise. A Nokia spokesperson cheered what they called the end of a ""flawed regulation""; the firm's chief executive had earlier blasted the bill as a ""disaster"" that undermined European research.The bill's withdrawal was part of a larger pruning of red tape within the bloc. Unlike some other proposals that have failed to inch toward agreement, however, its inclusion on the Commission's kill list late on Tuesday was a surprise. The European Parliament has already voted on it and EU governments were due to discuss it later this month.Fierce lobbying had surrounded the bill, which aimed to set guardrails for legal fights over how the patents used in critical technology like the 4G mobile phone standard and wireless internet should be licensed to cars and fridges.Patents can be cash cows, generating huge revenues from licensing technology that becomes an industry standard. Patent owners such as Sweden's Ericsson and U.S.-based chip designer Qualcomm get paid by companies that use their technology in a growing range of smart devices.German center-right lawmaker Marion Walsmann, who steered the file through the Parliament, said the Commission had made “a complete mistake” in dropping a proposal that could have cut costs and litigation risk for smaller businesses.“This is not just a missed opportunity, but a real slap in the face for European companies,"" she said. Walsmann blamed “pressure from a small number of very influential companies, mostly from third countries,” which “has brought the Commission to its knees.”The Fair Standards Alliance — which represents patent users such as Amazon, Apple, BMW and Ford — was “stunned by the Commission’s decision to abruptly scrap” the proposal, warning that it “sends a terrible signal to innovative businesses that depend on predictable and fair SEP licensing,” according to its secretary general, Evelina Kurgonaite.Car parts manufacturer Continental warned that the current licensing environment forces it to  ""accept licensing terms for technologies such as 4G no matter how unfair."" Carmaker Volvo and Dutch electronics manufacturer Fairphone also expressed dismay.Fairphone Chief Executive Raymond van Eck said the proposal had been a potential ""lifeline for SMEs — without it, they are left defenseless in a minefield of opaque negotiations, legal threats, and exploitation by patent assertion entities.""On the other side, patent holders at IP Europe — including Nokia, Ericsson, Qualcomm and Orange — welcomed the Commission efforts as ""encouraging research and development, innovation, and growth,"" adding that ""the innovations and open standards that we champion are part of the solution.""The Commission said Tuesday that it would withdraw the proposal in the next six months because “no foreseeable agreement” was forthcoming. It said it would assess whether to submit another proposal or find another approach.Walsmann said the Commission's rationale was “completely false, as the Council has already scheduled several working group meetings specifically on this dossier.”Asked about the withdrawal at a Wednesday press conference to present the Commission’s work program, Trade Commissioner Maroš Šefčovič and the European Union’s simplification chief, Valdis Dombrovskis, drew a blank. A spokesperson promised to come back with an answer later.Koen Verhelst and Max Griera Andreu contributed reporting to this article.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.The EU is set to fine Apple and Meta for rule breaches in the coming days.The Commission’s first fines under its Digital Markets Act are expected this week.The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports."
technology,The EU’s tech pivot gets both applause and criticism,https://www.politico.eu/article/the-eus-tech-pivot-gets-both-applause-and-criticism/,"AI generated Text-to-speechA daily download of the topics driving the tech policy agenda, from Brussels to London to Silicon Valley.By PIETER HAECKwith MATHIEU POLLET and ELIZA GKRITSIView in your browser or listen to audio— The European Commission was eager to show the AI Action Summit in Paris that it's open for business. Not everyone liked that pitch.— World leaders are not so worried about AI risks. They are worried about losing the global AI race. — Cloud wars continue to rage. Good morning and welcome to Morning Tech. Pieter speaking to you — still out of Paris. As always, send the hottest tech policy news and gossip to Pieter, Mathieu and Eliza.THE EU’S TECH PIVOT GETS CHEERS AND BOOS: The European Commission was very eager to show it is open for (artificial intelligence) business in Paris, with a multi-billion euro investment plan and the promise to have “innovation-friendly” rules. Not everyone liked that pitch. Recap: Commission President Ursula von der Leyen had quite the Tuesday morning in Paris: she first had to listen to U.S. Vice President JD Vance calling out the Digital Services Act as ""onerous."" After that, she took the stage herself, with a bold €200 billion AI investment plan. She also doubled down on cutting red tape, a promise earlier made by her tech czar Henna Virkkunen. Read more here. A regulatory simplification package for digital is now set for the fourth quarter of this year, according to the Commission's work plan published late Tuesday.Cheers: — AI companies were happy to learn about the investment and regulation pledges. Chris Lehane, OpenAI’s chief lobbyist, said he had taken note of von der Leyen’s message during a huddle with reporters at an event space tucked away in Paris’ 13th department. He underlined the importance of the right regulatory framework for companies like OpenAI to plunge money into infrastructure in Europe. There is a “real desire to be able to do infrastructure in Germany, France and the U.K.,” he said. “But attracting the global capital to invest in infrastructure in those places is really going to require a regulatory framework here that will allow for this part of the world to be able to develop and build its own AI ecosystem so that the economic model can justify the investment into that infrastructure.” Boos: — The EU’s plan to simplify its AI rules landed less well with digital rights groups. “Virkkunen is caving in on pushback against EU’s tech laws,” said Blue Duangdjai Tiyavorabun, policy adviser at EDRi. With the promise to include AI rules in the simplification package, “she fuels deregulation, appeases U.S. and tech corporations, while ruining civil society’s few, but hard-won human rights victories in the AI Act,” Tiyavorabun said. Speaking about AI simplification — AI liability rules axed: The EU's highly contested AI liability rules will be withdrawn by the European Commission, the EU's executive said in the annexes to its work program, published late on Tuesday. The rulebook on standard essential patents will also never reach the finish line.HOW THE WORLD STARTED WORRYING ABOUT AI: The official part of the AI Action Summit is over now, with many of the Tuesday evening afterparties coming to one general conclusion: AI safety was shunned at the event. World leaders were not so worried humanity might be made extinct by AI but they are deeply concerned about losing the global AI race. They focused on pledging or touting billions in investment and barely mentioned the word “safety” — to the dismay of those who fear AI’s existential risks and civil society groups. Read our wrap by our (by now knackered) team on the ground: Pieter Haeck, Tom Bristow and Océane Herrero.REVIEW OF DAY TWOWhat was good: — After a dull first day, we got the political drama we deserve, with Vance and von der Leyen making some big and bold statements.— We applaud the venue choices of some AI companies: Anthropic drinks at the Ritz for example. What was bad: — The logistical chaos continued. There were long queues at startup hub Station F all day. — Your Morning Tech scribe lost two earbuds in the press center. Let me know if you find something, French government! Things you might have missed: The sniping between Elon Musk and Xavier Niel and between Musk and OpenAI Chief Executive Sam Altman. What to look out for today: The world leaders may be heading off but there’s still a high-profile event today at the American Cathedral in Paris with Google Deepmind CEO Demis Hassabis, Anthropic CEO Dario Amodei, Mistral CEO Arthur Mensch (and your humble Morning Tech scribe).CLOUD WARS: The comments by the European Cloud Competition Observatory — powered by Amazon-backed cloud association CISPE — about how tech giants Broadcom and Microsoft handle complaints about alleged unfair licensing practices haven't gone unnoticed. A Broadcom spokesperson, whose company is accused of turning a blind eye to criticism of undue restrictions for its VMware software, told Morning Tech they ""delivered on our commitment to make VMware easier to use"" and pointed to their “customer retention rate [which] has remained consistent, demonstrating the value we’re delivering.""There’s more: The observatory also looked into the commitments Microsoft made when it inked a truce with CISPE (before it formally joined the lobby group) and considered some of the promises were off-track. Told you so: The brand new Open Cloud Coalition, including Microsoft's long-time cloud rival Google, was quick to weigh in. “CISPE’s settlement with Microsoft does nothing for the majority of European cloud customers,"" said Nicky Stewart, a spokesperson for the association. ""Despite claims of progress, nothing has actually changed in terms of fair software licensing for the broader market,"" she added, stressing that ""the only real option is urgent and robust antitrust enforcement that levels the playing field."" Google filed an antitrust complaint last year, asking the Commission to investigate Microsoft's licensing contracts.**Not in Munich for MSC? We’ve got you covered. POLITICO Pro Defense is reporting live from the ground, delivering expert analysis straight to your inbox. Start your free trial of our Pro Morning Defense newsletter and get exclusive access to our live debrief on Feb. 17. Register now.**WANTED: FEEDBACK. The European Commission is fishing for insights as it prepares the evaluation of the bloc's geoblocking rules this year. It opened a one-month-long consultation on Tuesday.What's that: The 2018 regulation targeted unjustified online restrictions for European consumers based on their nationality or place of residence  — meaning you should, in theory, be able to buy any good or service across Europe seamlessly.But, but, but: It came with a carve-out for audiovisual, allowing Netflix and others to restrict the availability of series for instance by country. The EU executive recently said it would be exploring whether to scrap that exemption — an option sure to enrage the European film industry, which sees geoblocking as vital to its sustainability and Europe’s cultural diversity.DSA MEETING BARRAGE: It’s meeting week for the Digital Services Act community – as if listening to Vance’s threats wasn’t enough, with a Commission roundtable with the online advertising industry to discuss a potential code of conduct.The Commission hasn’t decided if an instrument to outline requirements for advertising under the DSA is necessary, and whether that is to be done through a code of conduct, two people present at the roundtable told Morning Tech and granted anonymity to discuss the private discussion. Whether guidelines will be issued and what form they will take will be decided after a series of workshops, the people said. Morning Tech saw part of the presentation the Commission gave on the workshops and here is what we found:Another four workshops are planned for the next month; on March 4 around transparency in how data is used for ads, on March 6 on the transparency of ad placement, on March 13 around how malicious actors use ads to spread illegal content, including scams, and finally on March 19 on what transparency business users need.KIDS SAFETY. Separately, the Polish Presidency of the Council of the EU is hosting a workshop on making the online world safer for kids today. On the agenda is the fight against child sexual abuse online material and age-appropriate design. The age question. The Commission has been working on DSA guidelines for the protection of minors with a draft expected to land sometime in the first quarter of 2025. Age verification is at the crux of this debate and something Big Tech platforms disagree on. It’s complicated. Some, like Google, say that age verification should take place at the app level, whereas others, like Meta say it’s best done by app stores or operating systems. Meanwhile, civil society organizations say that solving the verification puzzle takes too much focus away from actually designing platforms in an age-appropriate way.DRAWING THE MAP: If you scroll on Google Maps all the way to the Gulf of Mexico in search of tropical weather, you will see that “Gulf of America” has been added in parentheses. That’s because Google Maps changes on Monday for users outside the U.S. and Mexico, who will see the Gulf named after their country.COMMISSION: Innovation chief Ekaterina Zaharieva meets with Yoo Sang-im, South Korea's tech minister.Maroš Šefčovič and Valdis Dombrovskis lay out the Commission’s 2025 work program at an 11:30 a.m. press conference.PARLIAMENT: The plenary in Strasbourg continues.COUNCIL: The Polish presidency hosts a workshop on protecting minors.Elon Musk’s business empire scores benefits under Trump shake-up. NYT. After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,How the world stopped worrying and learned to love AI,https://www.politico.eu/article/ai-action-summit-france-paris-macron-vance-modi-artificial-intelligence-technology/,"
				Politicians have shifted from AI regulation to innovation — and the industry loves it. 			
				This article is also available in: French			PARIS — World leaders aren't worried that artificial intelligence will make humanity extinct or be misused by terrorists.They seemed much more concerned about not winning the global AI race when they met at the AI Action Summit in Paris this week.French President Emmanuel Macron, U.S. Vice President JD Vance, India’s Narendra Modi, European Commission President Ursula von der Leyen and the United Kingdom’s tech secretary Peter Kyle all focused on innovation and investment in their speeches at the event.Safety fears, top of mind at two previous AI summits in the U.K. and South Korea, barely featured. The final summit declaration mentioned safety only three times. The United States and the U.K. didn’t even sign the final declaration.Instead, politicians touted massive investments and promised light regulation.“I’m not here to talk about AI safety, I’m here to talk about AI opportunity,” Vance said.“This summit is focused on action, and that’s exactly what we need right now,” added von der Leyen, before announcing the roll-out of a multi-billion euro investment plan.The pivot from AI safety and governance to clinching deals and enabling AI companies was long in the making. France had purposely branded the event an “Action” summit, in stark contrast with the U.K.'s AI Safety Summit at Bletchley Park in November 2023, at which major tech companies committed to establishing safety frameworks.“We’ve reduced references to the Bletchley Summit to the minimum,” a French official admitted. This came at a cost, as the U.K. decided not to sign the Paris declaration. Timing also played a part, with a series of AI shocks in the weeks before the summit highlighting the global race between the U.S., China and the European Union.U.S. President Donald Trump's $500 billion AI hardware plan and the cancellation of his predecessor's AI safety rules planted a flag for U.S. determination to win the AI race. Only days later, the markets erased billions of dollars from AI companies when a Chinese rival showed it could also develop AI models at low cost.Vance urged European countries, the global frontrunners in regulating AI, to embrace “the new frontier of AI with optimism and not trepidation.” Political realities in Brussels have also shifted. Von der Leyen is now focusing on unlocking growth for the region's slowing economy. The deployment of AI is a top priority to achieve that goal. “Global AI leadership is still up for grabs,” von der Leyen said during her speech at the closing ceremony. “Europe is open for AI and for business,” she posted on Bluesky on Tuesday evening. Although Vance blasted the EU’s “onerous international rules” for tech, which he said stifle innovation and create unnecessary hurdles for U.S. businesses, he and von der Leyen are far more aligned on AI. Where Vance called for rules that won't strangle the burgeoning industry, von der Leyen promised the EU would cut red tape.The EU’s tech sovereignty chief, Henna Virkkunen, also made the rounds in Paris, promising to make the EU’s regulatory framework more “innovation-friendly.”She pledged to simplify AI and tech rules as part of the EU 's efforts to simplify regulation. “I’m also taking this criticism very seriously that we’re getting” from small businesses and industry “that we have too much bureaucracy and red tape,” she said. That doesn't mean the EU is abandoning its rules, with von der Leyen mentioning the new AI Act as a single set of safety rules for the bloc. But her announcement to free up tens of billions of euros for AI computing power sucked up most of the attention.Macron, meanwhile, used the summit to announce the investment of €109 billion in AI in the coming years.The French president also emphasized the need for the EU to become a leader in AI applications at a hot-ticket dinner he hosted on Monday night, surrounded by Vance, OpenAI Chief Executive Sam Altman and senior officials from around the world, including China.Dinner guests made few references to safety issues, except for Meredith Whittaker, an AI ethics campaigner who heads the Signal messaging app, who highlighted the need to protect privacy. The politicians’ change of tone went down well with the AI industry, especially given the heavy regulatory scrutiny that some like chatbot pioneer OpenAI have faced in Europe.OpenAI executives highlighted the political pivot at a reception for reporters on the sidelines of the summit, even as they said safety issues still need to be addressed and that wider confidence in AI needs to grow.“But we also have to be willing and embrac[e] the innovation because perhaps the biggest risk of all is actually missing out on the economic opportunities that come from this technology,” Chris Lehane, OpenAI's chief global affairs officer, told reporters.One AI company broke ranks, with Anthropic CEO Dario Amodei saying in a statement that “international conversations on AI must more fully address the technology’s growing security risks.”AI companies published updated safety frameworks over the week, which they pledged at a safety-focused summit in Seoul last May.They made no new commitments, however, alarming those who worry about AI’s existential risks. Max Tegmark, president of the Future of Life Foundation, which focuses on AI’s potential harm, described the final declaration as a “huge step backwards.”“It actually negates the consensus from Bletchley,” he said, comparing the Paris event with the 2023 summit.Digital rights groups also expressed their discontent with the softer approach politicians were taking toward companies.Brussels-based digital rights group EDRi slammed the EU’s decision to include the AI Act in a regulatory simplification push.“With this, [Virkkunen] fuels deregulation, appeases U.S. and tech corporations, while ruining civil society’s few, but hard-won human rights victories in the AI Act,” said Blue Duangdjai Tiyavorabun, EDRi’s policy adviser. The U.K.’s delegate to the event, Peter Kyle, was less concerned, marking the new Labour government's focus on growth.“I think the thing to do is to understand what the purpose of safety is,” he said.“My criticism of the Bletchley Summit was, it was 100 percent about safety,” he said. Since then the new government “has spent a huge amount of energy just, just balancing that so that … now we've got the safety aspect done ... we're putting that safety to work.”After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,Von der Leyen labels Trump’s VP an ally after first meeting,https://www.politico.eu/article/hinting-at-cooperation-von-der-leyen-labels-trumps-vp-an-ally/,"
				First high-level meeting with Trump official strikes surprisingly positive note after he slapped tariffs on steel and aluminum.			AI generated Text-to-speechEuropean Commission President Ursula von der Leyen said she had “a good discussion on our shared challenges as allies” with U.S. Vice President J.D. Vance in Paris on Tuesday.The sit-down was the first time top EU and U.S. officials met after the election of Donald Trump, who announced 25 percent steel and aluminum tariffs on the rest of the world overnight. Von der Leyen labeled Vance as an ally just hours after she vowed Brussels would hit back against Trump’s tariffs.Von der Leyen also hinted at cooperating over global overproduction of steel, mainly coming from China.After a meeting in the margins of an AI Summit in France, Von der Leyen welcomed Vance to Europe via a post on Elon Musk’s X platform. “From security and stability to the great promise of technology and the critical challenge of non-market overcapacity,” she said. Non-market overcapacity is trade lingo for China and a host of other countries making more steel than the EU requires, often aided by state aid that Europe, the U.S. and Japan cannot offer. Vance told reporters that the “Trump administration has been very clear that we care a lot about Europe,” according to Reuters. “We see a lot of economic relationship to build upon ... we also want to make sure that we're actually engaged in a security partnership” which is good for both sides.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
technology,Macron says ‘it’s normal’ Musk skipped AI summit in Paris,https://www.politico.eu/article/emmanuel-macron-elon-musk-donald-trump-xavier-nielparis-ai-summit/,"
				The French president said the tech mogul’s absence was due to his new role assisting the Trump administration.			PARIS — French President Emmanuel Macron tried to brush off any indication that there were hard feelings over billionaire tech mogul Elon Musk's decision not to attend the French president's showpiece artificial intelligence summit in Paris.""It's normal, he now has federal responsibilities and he's working on his task of simplifying the American administration,"" Macron told reporters after a meeting at a start-up incubator in the French capital on Tuesday.Musk is leading U.S. President Donald Trump’s government-downsizing team known as the Department of Government Efficiency, or DOGE.The Tesla, SpaceX and X boss had been invited to the AI Action Summit and speculation over his attendance ran rampant in the lead-up to the event. Musk said on Monday that he could not attend in person because he was busy with ""critical work in Washington DC,"" but suggested he was open to attending virtually. Macron also laughed off a question about comments from French investor Xavier Niel, to whom Macron is close to, about Musk being ""the world's greatest entrepreneur and ... maybe sometimes a dick [un connard]."" Musk responded to Niel by poking fun at the legal troubles his fellow tech billionaire faced two decades ago on X.French industry chief warns against European disunity on trade as Italian PM heads to the White House.Threats against Bayrou are increasing a week after Le Pen was effectively banned from running for president.The French far right has framed the verdict against Le Pen as an attack on democracy — but was unable to attract a large crowd to a rally of support on Sunday.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures."
technology,"UK, US snub Paris AI summit statement",https://www.politico.eu/article/uk-refuses-to-sign-paris-ai-action-summit-declaration/,"
				Trump administration officials had expressed reservations over language calling for “inclusive and sustainable” AI.			PARIS — The United Kingdom and United States failed to sign the final communiqué at the AI Action Summit in France, published on Tuesday after a meeting of world leaders.POLITICO first reported on Monday morning that Britain was unlikely to sign the statement after Trump administration officials expressed reservations over language calling for “inclusive and sustainable” AI.Talks continued until late that night and resumed first thing on Tuesday morning, but a list of signatories to the final statement published later on Tuesday didn’t include the U.K. or U.S.Over 70 governments, international bodies and research institutes did sign the statement, including the European Union, China and India.A spokesperson for No. 10 Downing Street confirmed the U.K. did not sign, but declined to explain why.They instead highlighted U.K. involvement in a range of other initiatives at the summit, including a “Coalition for Sustainable AI” to track the technology’s impact on the planet.The U.K. engages with countries including the France and U.S. on AI, but will “always put the national interest first,” the spokesperson said.The AI Action Summit, co-hosted with India, has been an investment showcase for France, with French President Emmanuel Macron announcing more than $100 billion of investment.The next summit will be held in India.UK prime minister says Britain needs to remain a pioneer on free speech.The U.K. hopes teaming up with the U.S. on advanced tech might help avoid the president’s tariff wrath.LONDON — Britain’s data watchdog has opened an investigation into how TikTok uses children’s personal information to recommend content to them. The Information Commissioner’s Office (ICO) said …After the U.S. VP blasted “hand-wringing about safety,” Britain’s AI institute gets a new look. References to AI creating “unequal outcomes” are out."
technology,JD Vance warns Europe to go easy on tech regulation in major AI speech,https://www.politico.eu/article/vp-jd-vance-calls-europe-row-back-tech-regulation-ai-action-summit/,"
				U.S. vice president pushes for “international regulatory regimes that foster creation” ahead of the artificial intelligence “revolution.” 			
				This article is also available in: French			U.S. Vice President JD Vance called Tuesday on European countries to embrace ""the new frontier of AI with optimism and not trepidation"" and adopt a lighter touch on tech regulation.“We want to embark on the AI revolution before us with the spirit of openness and collaboration, but to create that kind of trust we need international regulatory regimes that foster creation,"" he told attendees at the Artificial Intelligence Action Summit in Paris.As he echoed grievances aired by U.S. companies against Europe's efforts to rein in Big Tech, Vance called for AI regulation that does ""not strangle"" the burgeoning industry.“To restrict it’s development now would not only unfairly benefit incumbents in the space, it would mean paralyzing one of the most promising technologies we have seen in generations,” he said in his first major trip overseas since taking office.  Vance pointedly attacked Europe's Digital Markets Act and the Digital Services Act, telling attendees, which included European Commission President Ursula von der Leyen, that these were “onerous international rules” that have stifled innovation and created unnecessary hurdles for American businesses.EU tech boss Henna Virkkunen told POLITICO on the sidelines of the summit before Vance's speech that the bloc's tech laws were fair since they applied to everyone equally. However, she said that she would discuss the issue with her American counterparts and promised a more ""innovation-friendly"" AI regulatory framework.Despite his various criticisms, Vance's comments are likely to be well received with many of Europe's biggest AI players, as they have have been calling for Brussels to focus more on innovation and less on regulation. Some tech leaders have gone so far as to call for a review of the EU’s AI act, which bans certain practices and introduces safeguards.Vance added that he welcomed the tone of conversations at the summit, which French President Emmanuel Macron has branded as a moment to embrace the opportunities linked to the development of AI, rather than focus on regulation and pondering its existential threats. ""I like to see that deregulatory flavor making its way into a lot of conversations,” he said.The U.S. vice president also attacked China during his speech, lambasting “hostile foreign adversaries” that are, according to Vance “weaponizing” AI software to rewrite history and censor speech.“From CCTV to 5G equipment, we’re all familiar with cheap tech in the marketplace that’s been heavily subsidized and exported by authoritarian regimes,” he said. ""Should a deal seem too good to be true, just remember the old adage that we learned in Silicon Valley — if you aren’t paying for the product, you are the product.""The rivalry between the U.S. and China to unleash AI potential became more intense last month after U.S. President Donald Trump announced a $500 billion plan to develop artificial intelligence in the U.S. and the Chinese startup DeepSeek released a cutting-edge chatbot allegedly at a fraction of the cost of its American competitors.Vance delivered his address just hours after Trump enacted new 25 percent tariffs on steel and aluminum imported into the U.S., a move that will impact European businesses and significantly escalate the brewing trade war between Brussels and Washington. Von der Leyen on Tuesday called the new tariffs ""unjustified"" and vowed that they will ""not go unanswered."" Vance and von der Leyen are expected to meet in Paris later Tuesday. Pieter Haeck contributed to this report. The eligibility ban on presidential hopeful Marine Le Pen and the market-wrecking tariffs of U.S. President Trump are just the latest challenges roiling Emmanuel Macron’s second term. Far-right leader Marine Le Pen’s reaction to being found guilty of embezzlement only harms her protégé’s chances.The race for the French presidency in 2027 has just become more unpredictable. We analyze the winners and losers from a bombshell court ruling.Marine Le Pen has been trying to normalize the National Rally in recent years, but may be tempted to wreak havoc after her guilty verdict."
technology,‘Dick’ vs. ‘pimp’: Elon Musk and French billionaire trade insults,https://www.politico.eu/article/xavier-niel-elon-musk-dick-vs-pimp-french-billionaires-trade-insults-in-public-feud/,"
				Musk resurfaced a decades-old controversy about Xavier Niel’s past after the French billionaire jokingly called him a “dick.”			PARIS — An unlikely feud between Elon Musk and French tech billionaire Xavier Niel escalated Monday evening when the Tesla CEO clapped back after being called a ""dick.""""This guy was sent to prison for being a literal pimp with a cadre of prostitutes,"" Musk wrote on X in response to a clip of Niel calling him ""the world's greatest entrepreneur and, on the top of that, a very complex guy... maybe sometimes a dick [un connard].""Musk was likely referring to Niel's 2004 legal troubles, when he was placed under formal investigation and temporarily detained by police during a probe into ""aggravated procurement"" charges, as reported by several French outlets, linked to his own part ownership of peep show venues at the time.Niel was later cleared on those charges but received a suspended prison sentence for embezzling funds in some of his X-rated businesses. He is more widely known as the founder of the low-cost mobile provider Free.Niel appeared to take Musk's comment in jest.The back-and-forth between the two tech bros comes amid a major artificial intelligence summit being held in Paris. Niel was among the entrepreneurs French President Emmanuel Macron consulted ahead of the summit and before announcing a privately-funded €109 billion AI strategy. Of that sum, €3 billion comes from Niel's company, Iliad.Musk skipped the summit, claiming that he was ""in the middle of critical work in Washington DC"" while opening the door to participating in the event remotely. Meanwhile, the X owner launched an unsolicited $97.4 billion bid to buy the nonprofit that runs the ChatGPT AI chatbot, OpenAI. The offer was rejected by founder Sam Altman.French industry chief warns against European disunity on trade as Italian PM heads to the White House.Threats against Bayrou are increasing a week after Le Pen was effectively banned from running for president.The French far right has framed the verdict against Le Pen as an attack on democracy — but was unable to attract a large crowd to a rally of support on Sunday.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures."
technology,Trump demands $500B in rare earths from Ukraine for continued support,https://www.politico.eu/article/trump-demands-500b-in-rare-earths-from-ukraine-for-support/,"
				“We have to get something. We can’t continue to pay this money,” U.S. president says.			AI generated Text-to-speechAmerican support for Ukraine has a price tag: $500B worth of mineral riches, said U.S. President Donald Trump.In the second part of an interview with Fox News that aired late Monday, the Republican said the U.S. should get a slice of Ukraine’s vast natural resources as compensation for the hundreds of billions it has spent on helping Kyiv resist Russia's full-scale invasion.“I told them [Ukraine] that I want the equivalent like $500B worth of rare earth. And they've essentially agreed to do that so at least we don’t feel stupid,” Trump said.“Otherwise, we're stupid. I said to them we have to — 'we have to get something. We can’t continue to pay this money,'” he added.Ukraine holds huge deposits of critical elements and minerals, from lithium to titanium, which are vital to manufacturing modern technologies. It also has vast coal reserves, as well as oil, gas and uranium, but much of this is in territories under Russian control.Ukrainian President Volodymyr Zelenskyy has been dangling allowing the U.S. to develop his country's natural resources as a tactic to keep Trump on side. The idea was also part of Ukraine’s “victory plan,” a list of economic and security policies aimed at securing a just peace with Russia, which Zelenskyy presented to the country's allies last year.“The Americans helped the most, and therefore the Americans should earn the most,” Zelenskyy said Friday in an interview with Reuters. “I would also like to talk about this with President Trump.” Trump, who hopes to beat China in the global race for resources, has voiced his desire to exploit Ukraine’s mineral abundance before.Earlier this month, he told reporters in the Oval Office, “We’re looking to do a deal with Ukraine where they’re going to secure what we’re giving them with their rare earths and other things.”His remarks sparked a backlash from German Chancellor Olaf Scholz, who slammed Trump’s transactional foreign policy style as “very egotistic, very self-centered.”Russia’s negotiator insisted there was a “positive outcome” after two days of talks with Donald Trump’s envoy Steve Witkoff in Washington.Citizens of the EU “feel let down by our oldest ally,” European Commission President Ursula von der Leyen says, warning that the bloc is “prepared to respond.”Russian “athletes and officials are part of the state propaganda machine,” Kyiv warns new International Olympic Committee President Kirsty Coventry.It is “concerning” when people are barred from politics, U.S. State Department says."
technology,Virkkunen stands firm on American pushback against EU tech laws,https://www.politico.eu/article/virkkunen-stands-firm-against-american-pushback-against-eu-tech-laws/,"AI generated Text-to-speechA daily download of the topics driving the tech policy agenda, from Brussels to London to Silicon Valley.By PIETER HAECKwith MATHIEU POLLET and ELIZA GKRITSIView in your browser or listen to audio— The EU plans to raise the American pushback against tech law with the U.S., said tech boss Henna Virkkunen. She also promised a more ""innovation-friendly"" AI regulatory framework.— Rolling out AI should mean talking to workers and helping them gain new skills, said EESC president Oliver Röpke. Failing to get it right could deepen existing inequalities, he warned.— Trouble in cloud world — again. Good morning and welcome to Morning Tech. This is Pieter, who's not a fan of the horrible weather in Paris. As always, send the hottest tech policy news and gossip to Pieter, Mathieu and Eliza.EU TO “DISCUSS” US PUSHBACK AGAINST TECH LAWS: The European Union’s tech laws are fair since they apply to everyone, European Commission tech boss Henna Virkkunen told Morning Tech on the sidelines of the French Artificial Intelligence Action Summit in Paris. She said the EU will pass that message on to U.S. officials. Virkkunen is facing one of her first big tests in Paris as the EU – and its social media, digital competition and AI rules – come under pressure from U.S. President Donald Trump and several U.S. Big Tech firms. First face-to-face: U.S. Vice President JD Vance is due to meet with Commission President Ursula von der Leyen in Paris today, the first face-to-face meeting between the European Union's executive and a senior member of the Trump administration. Tech titan and X owner Elon Musk, now heading Trump's government efficiency drive, won’t make it.POLITICO asked Virkkunen whether the U.S. pushback against EU tech enforcement will come up.“Of course, we will discuss with our counterparts,” Virkkunen said.“When we are doing business in other countries we have to respect their rules. When it comes to our digital rules in the European Union they are very fair, they are the same rules for everybody, for American companies, for European … for China’s companies,” she said We get the message: Virkkunen agreed with tech industry criticism that EU rules can be a bureaucratic nightmare when she spoke earlier in the day.The EU’s regulatory framework should be “innovation-friendly”, she told the first panel at the Grand Palais. She promised that the Commission would simplify its artificial intelligence and tech rules, as one of the forthcoming “omnibus” proposals.In the evening, she repeated that message to Morning Tech at La Maison de la Chimie — just before the first day's afterparty kicked off.“I’m also taking this criticism very seriously that we’re getting from SMEs and industry that we have too much bureaucracy and red tape,” she said. She pledges to implement the AI Act “in an innovation-friendly manner” and said that the EU’s voluntary code of practice — which was criticized by Meta and Google last week — should not create “any extra burden.” On the AI Summit declaration: “We will see what will happen,” was Virkkunen’s non-answer when asked about a POLITICO report that the U.K. might not sign the AI Summit's main declaration which calls for backing of inclusive and sustainable AI.Virkkunen also replied diplomatically about the balance between regulating AI and investing in it, saying both are timely and necessary. AI CAN DEEPEN EXISTING INEQUALITIES, RÖPKE WARNS: The AI Action Summit's several side events include at the Palais d’Iena near the Eiffel Tower, which focused on the impact that AI has on the workforce. Morning Tech was there to catch up with Oliver Röpke, the president of the European Economic and Social Committee, essentially an EU forum for workers and businesses. Social dialog on speed: The rollout of artificial intelligence could come with “huge opportunities,” Röpke said, and it makes no sense to try to stop it. But AI should be applied throughout the economy in a way that “is not harmful and not disruptive” for the workforce, he said.He sees two key conditions to ensure that: strengthened social dialog via new structures that are equipped to deal with the speed of AI and new investments to upskill or reskill workers. But not just any upskilling: Plans to upskill the workforce should be aimed at the right people, Röpke argued. “Artificial intelligence can also bring the risk that it will deepen existing inequalities. We have to look especially to marginalized groups, to more vulnerable groups, the older workforce,” he said.Trying to map the impact: AI model provider Anthropic, famous for its AI model and assistant Claude, released new research that looked into millions of anonymized conversations with Claude.ai and how AI is being corporated in daily life and work. The research showed that AI is embraced the most for “computer and mathematical” tasks (which includes software development) and for “arts, design, sports, entertainment and media.” It reflected how AI is used the most for software development and (technical) writing and editing. Anthropic's aim for the research was to show how AI might affect the labor market over time.OUR REVIEW OF DAY ONEWhat was good:— The food in the press room. Small but very tasty bites. Also great coffee. — The venue. It’s hard not to be impressed by the Grand Palais.What was bad:— The organization has been very chaotic, which continued to show during the first morning. We don’t know who got the idea to print a picture of our ID cards on our badges (instead of a photo of our faces), but hey, it happened. The logistical chaos has been a major talking point during the many parties. Quote du jour: “We don’t want to see the emergence of AI systems that you know kill other people,” said Canadian computer scientist Yoshua Bengio.Things you might have missed: Macron's nuclear energy push to power AI (""Plug, baby, plug"") and his declaration of €109 billion in AI investments. The launch of an EU AI Champions Initiative, powered by tech giants, such as ASML, and upstarts, such as Mistral. POLITICO also has a list of the nine AI power players you need to know.What to watch out for today: The meeting between von der Leyen and Vance, the final plenary with heads of government (with some speeches live-streamed here) and the Business Day at startup hub Station F. CAN DO (MUCH) BETTER: The European Cloud Competition Observatory — or ECCO, the brainchild of Amazon-backed cloud lobby group CISPE and formed in parallel with its multi-million euro settlement deal with Microsoft — is singling out tech giant Broadcom over the ""brutal and unacceptable"" terms for users of the VMware virtualization software it bought in 2023. In a new report published today, ECCO, which declares itself as tracking the fight against unfair licensing practices, gives it a ""red"" rating.""Regulators must be reminded that enforcement action is sometimes essential to curb ongoing unfair practices,"" Francisco Mingorance, CISPE's secretary general, said in a statement. ""In today’s geopolitical context, it is imperative that the rule of law should not be compromised in hopes of defusing potential trade tensions.”You're doing okay: Microsoft, which has recently joined CISPE as a non-voting member of the trade association and has committed to making some changes, gets an ""amber"" rating — which is code for insufficient progress. Despite efforts from the U.S. firm and positive talks already, some promises may not be on track to be delivered by the April deadline, ECCO warned.AVSMD HEATING UP: The Polish presidency has suggested that “prominence measures” on online platforms can fight misinformation, according to its latest text on the Audiovisual Media Services Directive obtained by Morning Tech. These measures could see certain types of content, particularly from European producers or journalists, featured more prominently on platforms. The text also hinted at changes in advertising rules.NOKIA CEO BITES THE DUST: Pekka Lundmark, the boss of one of Europe's crown jewels and tech champion Nokia, will step down at the end of March, the company said in a surprise announcement on Monday, after he'd had almost five years in the driving seat.Lundmark paid multiple visits to Brussels over the past couple of months, where he called on the Commission to urgently act to reverse the bloc's decline and pitched a big telecom ""bonfire"" to reset the bloc’s burdensome regulatory framework that is allegedly holding operators back.Meet the new guy: He will be replaced by Justin Hotard, Intel's current vice president for artificial intelligence and data centers, signaling the company's efforts to break into growing markets as sales of telecom equipment slow down.""He has a strong track record of accelerating growth in technology companies along with vast expertise in AI and data center markets, which are critical areas for Nokia’s future growth,"" said Sari Baldauf, the chair of Nokia’s board.COMMISSION: Day two of the AI Action Summit in Paris. European Commission President Ursula von der Leyen attends the closing ceremony and meets with U.S. Vice President JD Vance. Tech czar Henna Virkkunen heads to the business day at startup campus Station F and meets with French Prime Minister François Bayrou.A(I)MSTERDAM: Cisco is hosting its very own AI-heavy fest in Amsterdam.FOREIGN INTERFERENCE, AGAIN: The European Parliament is hosting a roundtable on foreign interference today, with representatives from the Commission, the External Action Service and some key MEPs, such as Danish socialist Christel Schaldemose and the newly-appointed lawmaker for the Parliament’s committee on the democracy shield, Swedish center-right politician Tomas Tobé.During the plenary session in Strasbourg, European lawmakers will also ask the Commission about the U.S. AI chips export ban.CONGRATULATIONS: Standardization body ETSI has appointed Martin Chatel as chief policy officer.OpenAI inked a licensing deal with Nordic media house Schibsted.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
technology,The EU’s ticking debt bomb — and why it matters for its next budget,https://www.politico.eu/article/eu-debt-bomb-budget-negotiations-brussels-belgium-27-commissioners-mff-veto/,"
				Repayment of the EU’s €300 billion joint borrowing hangs like a cloud over the European Commission’s budget brainstorm. 			AI generated Text-to-speechBRUSSELS — And so it begins again. Negotiations over the EU's next seven-year central budget — typically the most tortuous and contentious of any in Brussels — start here. And this time they're more complicated than ever.When they meet on Tuesday, the EU's 27 commissioners will fire the opening salvo on sketching out the next spending period, running from 2028 to 2034. Talks on the multiannual financial framework (MFF) usually drag on for years and are often only unblocked by high-stakes, last-minute horse trading by EU leaders.Deliberations are even more difficult this time around because the Commission’s €300 billion joint debt program to rescue the EU economy after the Covid pandemic is up for repayment from 2028. Without a new plan, that could take a huge chunk — between 15 percent and 20 percent, according to the Commission's estimates — out of the bloc's spending power.The EU has to come up with a repayment plan before 2028.The Commission originally proposed levies on carbon emissions, imports and the profits of multinationals, a move that was expected to generate €36 billion annually.But EU governments nixed the plan because much of this revenue is already going to their national coffers.The Commission is keen to breathe new life into EU-wide taxes — known as “own resources” — and has urged leaders to bring new ideas to the table during a gathering in Brussels on March 20-21.The EU's budget commissioner, Piotr Serafin, is promoting the bloc’s carbon border tax — which will fall on certain EU importers — as a potential way to boost revenue.Failure to reach an agreement on own resources could spell trouble for the entire budget.The default option consists of national governments filling the hole by sending more money to Brussels.But this would open up a can of worms for the Commission.Countries from Northern Europe — which have received a relatively small share of the EU’s post-Covid aid — are loath to pay more into the budget, and in exchange for a bigger contribution would likely demand cuts to the EU cash pot, which covers everything from agricultural subsidies to defense.That trade-off would deal a blow to the Commission and to countries as diverse as France and Poland, which back a bigger central EU budget.The other option would be for the Commission to postpone the repayment of its debt, just as national governments do.Spain supported this approach in a document seen by POLITICO, arguing it would “alleviate short-term fiscal pressures, ensure liquidity in the EU bonds market, and allow continued investments for the future European economic model.”But Germany and its fiscally conservative allies see this as a slippery slope toward a fiscal union, in which the Commission permanently takes on the debts of its 27 members.The Commission plans to revolutionize how it doles out its cash.Under the current budget, the EU spends around two-thirds of its money on agriculture and on local funding designed to narrow gaps among regions across Europe.But the Commission now wants to adapt the budget to its political program and to the geopolitical challenges the bloc faces.Rather than funding traditional industries, its goal is to use common cash to finance innovative schemes capable of generating big returns. Funding is also supposed to be directed to new priority areas such as the bloc’s defense sector.In order to achieve this, the Commission supports linking payments to economic reforms that are designed to make EU countries more efficient.The Commission's budget department toyed with the idea of lumping together over 500 different funds into a single cash pot for each country that would determine spending in sectors ranging from farm subsidies to social housing.Spain dismissed this option on the grounds that it “may not be the most effective way to achieve a simpler and more focused budget in practice.”Tuesday’s discussion kicks off a long and Byzantine process that will end before the start of 2028, when the new budget takes effect.  This week the commissioners will rubber-stamp a short document laying out the major issues to be addressed.There is some disagreement over how much individual commissioners will be able to influence the proposal, two Commission officials told POLTICO.Commission President Ursula von der Leyen wants to keep a firm grip on the process, whereas commissioners with skin in the game would like a bigger role in steering the debate.After the Commission puts forward its proposal this summer, negotiations start between the Council and the European Parliament.National capitals are arguably the most powerful players in the process as each country can veto the budget.France is determined to secure more advantageous fishing rights in return for a pact, officials say. A supranational bank would sidestep the European Commission, involve the British, and allow defense-spending off the balance sheet.As budget hawks eye the EU’s farm billions, Agriculture Commissioner Christophe Hansen and the agri world are digging in to defend the status quo.France, Italy and Spain are seeking to boost military spending based on grants rather than loans to avoid increasing their debt loads."
technology,Paris follows a cut-price Olympics with a low-cost AI summit,https://www.politico.eu/article/paris-follows-up-a-cut-price-olympics-with-a-low-cost-ai-summit/,"
				France is hosting a global artificial intelligence summit that costs far less than the U.K.’s 2023 affair.			
				This article is also available in: French			PARIS — France aims to outshine Britain's Artificial Intelligence Summit in at least one respect: It's going to be a lot cheaper.The French capital's glass-vaulted Grand Palais will gather around 100 heads of state and the leading lights of the AI industry, including OpenAI Chief Executive Sam Altman, Mistral AI boss Arthur Mensch and Meta's chief AI scientist Yann LeCun on Feb. 10 and 11.Running the event will cost €13 million, according to a preparatory document for the 2025 budget analyzed by POLITICO. That's just over a third of what the earlier U.K. summit cost.Public spending is a tense issue in France where a minority government is fighting to get budget plans passed amid loud opposition to efforts to wrangle a significant deficit.But cut-price major events are also becoming a Parisian point of pride after it delivered one of the lowest-cost Olympic Games in two decades last year.This year's event aims to be thrifty compared with its U.K. predecessor,  held at the end of 2023.""It was a request: to do it cheaper than the British,"" confirms one of the Paris summit's envoys.That first AI Safety Summit cost £27.7 million, or just over €33 million.The British chose a symbolic location for the occasion: Bletchley Park, 50 minutes (by train) north of London. It was here that Alan Turing used his Enigma machine to break the secret codes of the Nazis during the Second World War.The site was too small for a global summit, forcing organizers to build new reception facilities.France wants to avoid this by locating its summit at the Grand Palais, a grandiose venue built to host the 1900 Paris Exposition, and in several public buildings across the Paris region, including the Institut Polytechnique for science-themed events on Feb. 6 and 7 and the national library — Bibliothèque nationale de France — and the Conciergerie for the cultural weekend on Feb. 8 and 9.The European Commission chipped in with €2 million and the French government has also solicited a number of sponsors, according to a French summit official granted anonymity to speak freely.France is putting €11 million on the table. The foreign ministry, which is in charge of the event, is contributing €2 million, with much of that earmarked for welcoming world leaders.The economy ministry is the biggest contributor, handing over €3 million to help showcase France's attractiveness to investors. The ministry of the armed forces, which will be holding its own event, has also contributed €1.5 million.The culture ministry has put forward €1 million, staff to coordinate the summit and locations for the event, such as the library at the Grand Palais. Several other ministries are also contributing to a lesser extent.There's still one factor that's hard to assess: the full cost of security for the event provided by the interior ministry. With high-level envoys like U.S. Vice President JD Vance, India’s Narendra Modi and Ding Xuexiang, the Chinese vice premier, this could still rack up a significant bill. Investigation is over allegations the social media company manipulated its algorithm, Paris public prosecutor’s office says.POLITICO guides you through the essential events of this year’s Paris Artificial Intelligence Action Summit.An Orange lobbyist criticized Starlink’s post-disaster deployment to Mayotte — despite his company having used the satellites."
technology,Musk’s shadow hangs over Macron’s AI summit,https://www.politico.eu/article/elon-musk-shadow-emmanuel-macron-ai-summit/,"
				France’s president tried to nurture a special relationship with the tech billionaire — but it failed to bear fruit.			AI generated Text-to-speech
				This article is also available in: French			PARIS — There was no surprise waiting aboard Air Force Two when it touched down in France on Monday. Only the U.S. vice president, his wife and their three children stepped off the plane into the cold and rain.The world's wealthiest man was nowhere to be seen.France's political and tech establishments waited for weeks with bated breath to see if Elon Musk would accept President Emmanuel Macron's invitation to attend the Artificial Intelligence Action Summit that began in Paris on Monday morning. Whispers of Musk's attendance raced through the halls at Paris' iconic, glass-roofed Grand Palais as the event got underway, but by Monday afternoon, Musk had still not arrived.By late evening, the tech billionaire confirmed what most had expected. He was not coming to Paris.Macron on Tuesday told reporters that Musk's absence was understandable given his new job running U.S. President Donald Trump's government-downsizing initiative known as the Department of Government Efficiency. But the French president had reportedly hoped that the attendance of the world's most famous technology entrepreneur and Trump's trusted adviser to would provide his summit with a major reputational boost, even if Musk's popularity in some parts of Europe is on the decline.Though Musk had never publicly confirmed his attendance, he had privately promised to come when visiting Paris in December, according to Macron's entourage. On the one hand, it's a major blow to the French president who has spent years courting the billionaire and trying to convince him to invest in France. But on the other hand, it spares Macron from a potential sideshow during the summit — one that his office was so worried about that it invited the best and brightest of French tech to debate the merits of Musk's attendance at the Elysée Palace.It's unclear if the pros or the cons won out, but the two men's relationship has deteriorated significantly in recent weeks, according to multiple people interviewed by POLITICO for this article who were granted anonymity either to speak candidly or to adhere to government protocol.For now, the Elysée isn't closing the door on Musk. But it likely won't be rolling out the red carpet, either. As the titans of French capitalism and politics took their seats alongside Trump in the Notre-Dame cathedral for the historic building's reopening in December, the silhouette of a surprise guest passed through the cathedral door: Musk himself.His presence augured well for a possible appearance at the summit to be held about two months later. But Musk may have left Paris with a bad taste in his mouth after protocol caught up with the eccentric American entrepreneur.  Just as everyone had been received in the proper order and the ceremony was about to begin, Musk strode off to find a seat in the front row alongside Trump. ""He was the master of the house,"" said a French lawmaker who attended the ceremony. Organizers eventually relegated Musk to the ninth row, behind elected French representatives, so the then-president-elect could be seated in between Macron and his wife.Barely a month later, Macron accused the American billionaire of fueling a ""new international reactionary movement"" after wading into German and British politics, backing far-right figures in both countries.The Elysée still thought Musk's appearance at the AI summit was within the realm of possibility. In mid-January, Macron discussed Musk's possible attendance in a meeting that included Mistral boss Arthur Mensch and tech billionaire Xavier Niel.""The question was: Do we fight for him to come or not,"" recalled one participant. ""We could make room for him, but he mustn't take all the limelight. The subject was broached without naiveté.""The group agreed that if Musk did indeed come, he should not be given a platform to share his political beliefs. Macron and Musk, who are in direct contact with each other according to three people close to the two men, have for several years been fueling a friendship that's turned into something of a soap opera. But the relationship never really bore fruit for France. Macron ""has long had an image of Musk as a highly innovative entrepreneur who took risks to develop electric cars,"" said a French politician who was granted anonymity in order to speak freely.""Musk is someone with whom you can have friendly relations on a bilateral basis. Perhaps Emmanuel Macron appreciates his outspokenness and the fact that he is attentive. But he's also someone who's hard to follow, not at all linear in his expression. He goes from one thing to another,"" the politician said. The businessman was a guest of Macron during the May 2023 Choose France summit meant to attract foreign investment. Musk, who arrived at the Elysée Palace in a Tesla, was due to talk to the French president about setting up a factory for his car brand in the near future. At the end of the meeting, Musk announced that Tesla would be making ""significant investments in France.""""Let's work together,""  Macron responded in a message on X accompanied by a picture of the duo.Tesla never ended up investing big money in France, instead choosing to expand its German gigafactory. Last year, Giorgia Meloni's Italian government also announced that it had opened discussions with the American carmaker.The French president's office still hasn't given up on trying to woo Musk's millions. The Elysée again welcomed Musk in grand fashion when he traveled to Paris to watch LVMH boss Bernard Arnault receive the Grand Cross of the Legion of Honor in March. Unlike other advertisers, Arnault's luxury conglomerate has not pulled its ads from X in response to Musk's politics.When Musk and Macron met one-on-one again, the two had ""a very open discussion with the billionaire on X, digital regulation and strengthening French sovereignty"" by trying to attract investment to the country, according to Macron's entourage.One organizer of the AI summit, who was granted anonymity in order to speak candidly, said Macron's strategy with Musk was very similar to how the French president handled Russian leader Vladimir Putin in the initial aftermath of the invasion of Ukraine. ""As long as you can talk, you do it, hoping to avoid the worst,"" the organizer said.""The idea was still to say that we needed him in terms of investment, because he's a big player, close to Donald Trump."" Politicians have shifted from AI regulation to innovation — and the industry loves it. The French president said the tech mogul’s absence was due to his new role assisting the Trump administration.France is hosting a global artificial intelligence summit that costs far less than the U.K.’s 2023 affair.Academics can be as influential as tech bros in swaying policymakers to both invest in and set guardrails for the powerful technology."
technology,Musk says he’s not coming to Paris for Macron’s AI summit,https://www.politico.eu/article/elon-musk-says-hes-not-coming-to-paris-for-ai-summit/,"
				Donald Trump’s top lieutenant says he has “critical work in Washington DC.”			
				This article is also available in: French			PARIS — Elon Musk is not planning on attending French President Emmanuel Macron's artificial intelligence summit in Paris in person.The tech billionaire said on X that he could not make it because he was in the middle of ""critical work in Washington DC"" but offered to participate via video. The AI Action Summit, an important pet project of Macron's, began Monday morning in the French capital. Among the high-profile guests attending are Indian Prime Minister Narendra Modi, U.S. Vice President JD Vance and European Commission President Ursula von der Leyen. Vance and von der Leyen are scheduled to speak on Tuesday.The shock decision comes after the far-right icon’s embezzlement conviction appeared to stop her running in 2027.The “chameleon” tech billionaire is one of the most powerful politically connected people in the world. Europe’s governments are still working out how to deal with being on his bad side.The collapse of Prime Minister Michel Barnier’s government could plunge the eurozone into turmoil.“This is a very serious moment,” Barnier said in an interview with French broadcaster TF1."
technology,"‘Plug, baby, plug’: Macron pushes for French nuclear-powered AI",https://www.politico.eu/article/emmanuel-macron-answer-donald-trump-fossil-fuel-drive-artificial-intelligence-ai-action-summit/,"
				Macron says France produces more electricity than it consumes, making it an attractive destination for energy-intensive AI companies. 
			PARIS — French President Emmanuel Macron is touting France's bid to become an artificial intelligence leader by channeling his inner Donald Trump.""I have a good friend in other side of ocean [sic], he says drill, baby, drill. Here there is no need to drill, it is plug, baby, plug."" Macron joked during a speech to close the first day of the AI Action Summit in Paris on Monday.Macron bragged that France can power massive, energy-intensive investments in AI thanks to its nuclear energy production. France produces more electricity than it consumes, he noted, which makes it an attractive destination for energy-intensive AI companies.""Here it is available and we will go fast and very fast,"" the French leader said.Macron added that Europe was ""back in the race"" for AI after unveiling €109 billion in investments over ""the coming years"" on Sunday. Trump last month unveiled a $500 billion American investment plan in AI.Looking beyond France, Macron also called the Paris summit “a wake-up call” for Europe to develop its own AI strategy as the continent’s tech players risk falling behind the United States and China.European Commission President Ursula von der Leyen is expected to unveil a European strategy for AI at the summit on Tuesday. Macron said there was a “unique opportunity for Europe” to “simplify regulation, deepen European markets and invest in calculation capacities.” The EU’s AI Act, which bans certain practices and introduces safeguards for others, is coming under pressure from European industry players who say it is stifling innovation. While the French president said AI would be developed to “serve humanity,” he added that Europe had to “synchronize with the rest of the world” on permissions, authorizations and clinical trials. Europe is “too slow,” Macron concluded. The French president said his country would henceforth adopt a “Notre-Dame strategy,” a reference to how it rebuilt the famed Parisian cathedral in five years after a 2019 fire — a deadline that many experts initially dismissed as unrealistic. The French president also called on European firms to “Buy European” and to work with local AI companies rather than with U.S. or Asian competitors. “Guess what, [companies] in America or China or India, if [they] have a very good solution made at home, they prefer this one,” he said.  The eligibility ban on presidential hopeful Marine Le Pen and the market-wrecking tariffs of U.S. President Trump are just the latest challenges roiling Emmanuel Macron’s second term. Far-right leader Marine Le Pen’s reaction to being found guilty of embezzlement only harms her protégé’s chances.The race for the French presidency in 2027 has just become more unpredictable. We analyze the winners and losers from a bombshell court ruling.Marine Le Pen has been trying to normalize the National Rally in recent years, but may be tempted to wreak havoc after her guilty verdict."
mobility,EU takes revenge on Trump’s tariffs as countries approve €20B+ retaliation,https://www.politico.eu/article/eu-takes-revenge-on-trumps-metals-tariffs-approved-as-countries-close-ranks/,"
				Brussels is now set to strike back against U.S. president’s steel and aluminum measures. 			BRUSSELS — The EU can apply retaliatory tariffs on nearly €21 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc’s 27 countries assented to the measures on Wednesday, the European Commission announced.“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” the EU executive said in a statement.Hitting back against U.S. President Donald Trump’s steel and aluminum tariffs, the European Union’s countermeasures will apply in three rounds. Measures covering €3.9 billion in trade will go into force next week, with a further €13.5 billion from mid-May and a final round of €3.5 billion following in December.Only Hungary opposed the package, according to four EU diplomats with direct knowledge of the vote, while all other 26 countries voted in favor.“Escalation is not the answer. Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation,” Hungary's Foreign and Trade Minister Péter Szijjártó said in a post on X. Fourteen EU countries would have needed to vote against the retaliation, which had been seen as unlikely considering the shows of unity in recent weeks. The retaliation did not, however, contain a response to Trump’s imposition of 20 percent “reciprocal” tariffs on all EU exports, which took effect on Wednesday but were paused later that evening as the U.S. president announced a temporary halt to tariffs above 10 percent for most U.S. trading partnersThe EU has yet to respond to Trump's latest 25 percent tariff on cars, or to U.S. tariffs on pharmaceuticals that the American leader has said are coming soon.The European Commission has previously said it is considering putting forward its countermeasures on those tariffs as early as next week. “It will for sure be soon. I expect it could be as early as next week,” trade spokesperson Olof Gill said Tuesday.Trump has demanded that the EU reduce its trade surplus with the U.S., for instance by buying unrealistic amounts of gas or lowering safety standards on cars.While Europe indeed sells more goods to Americans, the U.S. in turn enjoys a surplus when it comes to services. Overall, the €1.3 trillion trade relationship is off by only some €50 billion. Commission President Ursula von der Leyen this week revived the idea of scrapping all industrial tariffs — in a “zero-for-zero” deal — on a mutual basis.This article has been updated. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures.Seventy percent of European exports to the U.S. are at risk of being affected by tariffs, an EU official said."
mobility,"Trump tells countries to ax talks on shipping carbon tax, or else",https://www.politico.eu/article/donald-trump-scrap-maritime-decarbonization-talks/,"
				The attack on the shipping deal is part of a wider U.S. rejection of policies to fight climate change.			LONDON — The Trump administration has upended what it calls “blatantly unfair” talks to set a carbon tax on international shipping and has vowed ""reciprocal measures"" to shield U.S. ships from any fees, according to a letter seen by POLITICO.The International Maritime Organization's Maritime Environmental Protection Conference (MEPC) is taking place in London this week and aims to reach a deal on reducing greenhouse gas emissions (GHG) from shipping. The U.S. letter aims to block the process.It was circulated to many embassies of the other countries in attendance by the U.S. government. It was seen by POLITICO, having been obtained by an industry group via a national delegation, and was confirmed by other participants in the talks.The letter stated: “President Trump has made it clear that the U.S. will not accept any international environmental agreement that unduly or unfairly burdens the U.S. or the interest of the American people.”The debate at the MEPC is whether to tax shipping emissions through a fuel standard (a carbon credits trading scheme) or a universal levy (a flat-rate tax on emissions). However, the U.S. opposes any carbon tax at all. “Accordingly, we must be clear the U.S. rejects any and all efforts to impose economic measures against its ships based on GHG emissions or fuel choice,” the letter said.“Should such a blatantly unfair measure go forward, our government will consider reciprocal measures so as to offset any fees charged to U.S. ships and compensate the American people for any other economic harm from any adopted GHG emissions measures. The Trump Administration will protect the American people and their economic interests.”The U.S. tried to convince other countries to join it in objecting to the discussions: “The U.S. is not engaging in negotiations at the IMO 3rd Marine Environment Protection Committee from 7-11 April and urges your government to reconsider its support for the GHG emissions measures under consideration,” the letter said.Anaïs Rios, shipping policy officer at the Seas at Risk NGO, said a U.S. boycott of IMO talks is “new"" for the country. Under the previous Joe Biden administration the country was active in the talks. Trump has a long-standing antagonism toward climate policies. He pulled the U.S. out of the Paris climate agreement during his first term as president and has vowed to do so again, announcing a pro-oil ""drill, baby, drill"" policy.However, the U.S. is not the only player in the talks.""Let’s not get dazzled by the drama — this isn’t the United States of Shipping,"" Rios said. ""There are 175 countries in the room, and delegates are rolling up their sleeves to find the best path forward. One country trying to play the disruptor doesn’t change the fact that global cooperation is the real headline here.""The U.S. letter also took aim at the wider climate change agenda: “The UN should halt all efforts to proliferate the deeply unfair agenda reflected in the Paris Agreement in other fora,” adding that “[a] plain reading of these measures is that they are foremost an effort to redistribute wealth under the guise of environmental protection.”The U.S. government did not respond to a request for comment.Downing Street is worried about rising energy bills. Every option for bringing them under control could bring political pain.Dismay and anger inside London court as landmark ruling on climate activists is read out.The U.K. Home Office warned last month about foreign states seeking to “gain control of supply chains through investment or monopolisation.”"
mobility,"EU targets Trump’s red states with tariffs on US trucks, cigarettes and ice cream",https://www.politico.eu/article/eu-tariffs-trade-war-donald-trump-republican-states/,"
				European trade officials sure know how to have fun.			AI generated Text-to-speechThe EU’s response to U.S. President Donald Trump’s decision to impose so-called reciprocal tariffs on all of America’s trading partners may be less aggressive than expected, but it does show some creativity in its bid to hit the U.S. where it will hurt the most.According to an internal document seen by POLITICO, the Commission is considering slapping tariffs of up to 25 percent on a broad range of exports from the U.S. worth around €22.1 billion based on the EU’s 2024 imports.The list features run-of-the-mill agricultural and industrial commodities such as soybeans, meat, tobacco, iron, steel and aluminum — to hit the American sectors that rely most on transatlantic exports.Dig deeper, and it turns out the EU’s trade nerds have stirred some unaccustomed creativity into their expert knowledge of obscure customs codes, while channeling a helping of passive aggression to inflict pain on Trump’s base.EU countries are set to vote on the new duties on Wednesday, with no major opposition expected.Once they’ve approved the list (which is technically made up of multiple lists), the first set of tariffs on goods such as cranberries or orange juice, which the EU initially imposed in 2018 during the first Trump presidency but suspended in 2021, will take effect on April 15. A 25 percent duty will then kick in from May 16 on a second batch of imported items such as steel, meat, white chocolate and polyethylene. Finally, a 25 percent duty on almonds and soybeans will take effect Dec. 1. (Leave it to the Commission to build some suspense.)Overall, EU duties are set to hit up to $13.5 billion worth of exports from red states, according to POLITICO's analysis of 2024 trade data.Let’s start with the EU’s No. 1 target — soybeans, the most valuable item on the bloc’s hit list, a product whose economic and symbolic significance for the Republican Party's heartlands cannot be overstated.The U.S. is the world’s second-largest soybean producer and exporter, and the EU tariffs would hit a sector already battered by China’s retaliatory measures, rising global competition and falling prices. That's not all: 82.5 percent of American soybean exports to the EU come from Louisiana, the home state of House Speaker Mike Johnson.Unsurprisingly, U.S. soybean producers slammed Trump’s commercial belligerence last month, arguing that “tariffs are not something to be taken lightly” and urging the administration to “reconsider tariffs [against Canada, Mexico and China] and potential upcoming tariffs.” So far, however, the U.S. president has signaled that he was “not looking at” pausing the new tariffs.The EU is also targeting beef from Kansas and Nebraska, poultry from Louisiana, car parts from Michigan, cigarettes from Florida, and wood products from North Carolina, Georgia and Alabama.While the Commission ended up dropping whiskey from the final draft after successful lobbying from France, Italy and Ireland, it did include other more niche items designed to cause the greatest pain to exporters in Republican states.These include (but are not limited to) ice cream from Arizona, handkerchiefs from South Carolina, electric blankets from Alabama, ties and bow ties from Florida (unless they’re made of silk, which Democratic California will be more than happy to provide), and washing machines from Wisconsin.Pasta from Florida and South Carolina will also face some tariff heat, though Italy will likely be delighted to fill the market gap.Finally, women’s negligées from Ohio and Kentucky, a fan favorite from the Commission’s first proposal, made the final cut; so did men’s undergarments, although they are mostly found in blue states.The trade war unleashed by Trump comes with a hefty price for Washington, as Canada and China have responded to the U.S. president’s deluge of duties with their own counter tariffs.Overall, retaliatory measures imposed by China, Canada and the EU will hit nearly $90 billion of American exports.Beijing has mainly targeted U.S. produce, slapping a 15 percent duty on commodities like chicken, wheat and corn along with 10 percent on soybeans, meat, fruit and other farm exports. Canada, meanwhile, has imposed two sets of tariffs — 25 percent on a range of agrifood products, and another 25 percent on steel and aluminum products.For its part, Brussels has experimented with a carrot-and-stick approach to signal it won’t bow to Trump’s demands while leaving the door open to negotiations. On Monday the bloc offered a “zero-for-zero” tariff scheme on industrial goods covering cars, drugs, chemicals, plastics and machinery among other things. Trump, however, said the offer fell short and urged EU countries to buy $350 billion worth of American energy products to make the trade deficit “disappear … in one week.”As a last resort, the bloc could wield its “trade bazooka” to hit U.S. services, which would take the trade war to a whole new level — something not all EU countries are ready to do just yet.World continues to get hotter. EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month.As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. U.S. president maintains hard-line tariff rhetoric. "
mobility,EU seeks China’s help to contain Trump’s trade war,https://www.politico.eu/article/eu-pencils-in-china-summit-for-july/,"
				Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. 			BRUSSELS — The European Union on Tuesday reached out to Beijing for help in tracking a wave of Chinese imports that is expected to pour toward the EU after U.S. Donald Trump ramped up tariffs on China.China has pledged to “fight to the end” against Washington in an escalating showdown with Trump that could see Chinese goods facing tariffs of as high as 104 percent in entering the U.S. market.The challenge for the EU — as in the trade war of Trump’s first term — is that goods boxed out of the U.S. will quickly flow toward new markets in the EU, opening the up the risks of an even deeper global trade war.  Seeking to address the problem, European Commission President Ursula von der Leyen spoke to Chinese Premier Li Qiang and discussed “setting up a mechanism for tracking possible trade diversion and ensuring any developments are duly addressed.”“President von der Leyen emphasised China's critical role in addressing possible trade diversion caused by tariffs, especially in sectors already affected by global overcapacity,” the Commission said in a read-out of the call.The outreach to China came only a day after the EU’s trade chief Maroš Šefčovič announced a European task force to monitor diversions in Luxembourg, after meeting the bloc’s 27 trade ministers.Should the diplomatic initiative with China fail, the EU would probably have to introduce “safeguard measures,” which are special duties intended block to sudden diverted trade flows.The EU and China have a prickly relationship over trade. Brussels has spent years calling out Beijing for resorting to heavily subsidizing its giant export industries like steel, aluminum, electric cars and batteries.Still, faced with a common adversary in Washington, von der Leyen “stressed the responsibility of Europe and China, as two of world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field.”One key moment for co-ordination amid a global trade war will come in July, when the EU hopes to host Chinese dignitaries for a summit with Beijing, von der Leyen announced after the call with Li. The Commission almost hid the news of the July summit timing, mentioning it only at the bottom of a read-out of the Brussels-Beijing phone call.Earlier speculation had centered on a May summit date.The European Commission’s chief spokesperson Paula Pinho declined to confirm the date but, speaking at a regular briefing, confirmed that July “would be the idea.”Gabriel Gavin contributed to this report.Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
mobility,Germany’s finance minister warns of recession risk due to Trump tariffs,https://www.politico.eu/article/germany-finance-minister-warns-recession-risk-donald-trump-tariffs/,"
				Jörg Kukies says German exports to the U.S. will decline by 15 percent if tariffs remain in place.			BERLIN — Germany’s acting finance minister Jörg Kukies warned that U.S. President Donald Trump’s ""Liberation Day"" tariffs could inflict serious damage on Germany’s export-driven economy and significantly increase the risk of recession.“If things stay as they are, our exports to the U.S. will decline by about 15 percent,” Kukies said in an interview with German broadcaster ZDF late Monday, referring to data from the Munich-based research institute Ifo. “Our growth prospects would deteriorate, and the risk of recession would increase.”Trump last week dumped the European Union in the worst category of America’s trade partners Wednesday, hitting the bloc with a 20 percent tariff on all imports. If the tariffs remain in place, they will hit the German economy particularly hard; the U.S. is Germany’s largest export destination outside the European Union.Kukies dismissed the idea that Washington has gained the upper hand in trade talks after announcing the latest tariffs.“The willingness to negotiate existed long before the tariffs were announced,” he said. “I don’t see that the U.S. has gained any great advantage.”Kukies also backed the European Commission’s strategy of  preparing tough countermeasures if talks fail, while offering to eliminate tariffs on industrial goods if the U.S. reciprocates. “There’s a broad consensus in German politics behind this strategy,” Kukies said.He also pointed to deteriorating sentiment in the U.S. economy. “All the reactions we’re seeing from U.S. businesses and surveys indicate that the risk of recession is rising,” he said. “And in a downturn, tax revenues tend to shrink — not grow.”The U.S. president’s tariffs and stance on Ukraine compelled the incoming chancellor to quickly form a stable government capable of responding.Merz signals a tougher stance on economic policy.Berlin’s economy minister talks of a pivot point in global trade — and an opportunity for the continent to forge new alliances.Berlin formally activates brigade in Lithuania, signaling a major shift in defense posture."
mobility,Trump says EU must buy $350B of US energy to get tariff relief,https://www.politico.eu/article/donald-trump-says-eu-must-buy-350b-of-us-energy-to-get-tariff-relief/,"
				Brussels’ zero-for-zero tariff offer not enough, U.S. president says, but indicates he’s open to a deal if the bloc commits to closing the trade deficit in goods.			The European Union will have to commit to buying $350 billion of American energy to get a reprieve from Donald Trump's sweeping tariffs, the U.S. president said late Monday, dismissing Brussels' offer of ""zero-for-zero"" tariffs on cars and industrial goods. Trump's comments at a White House press conference were in response to European Commission President Ursula von der Leyen saying earlier Monday that the EU had offered to drop the bloc's tariffs to zero on cars and industrial goods imported from the U.S. if Trump reciprocated. Asked by a reporter whether the offer was enough for him to back down, Trump said: ""No, it's not.""""We have a deficit with the European Union of $350 billion and it's gonna disappear fast,"" Trump said. ""One of the ways that that can disappear easily and quickly is they're gonna have to buy our energy from us ... they can buy it, we can knock off $350 billion in one week. They have to buy and commit to buy a like amount of energy.""Von der Leyen’s offer came after Trump last week slapped 20 percent tariffs on the EU and a minimum 10 percent levy on other trade partners. In response, financial markets across the world have lost trillions of dollars in value, with European stocks on Monday suffering their biggest one-day falls since the start of the Covid-19 pandemic.""A lot of people say, 'Oh, it doesn't mean anything having a surplus.' It means a lot, in my opinion. It's almost like a profit or loss statement,"" Trump said.The president was speaking in the Oval Office Monday alongside Israeli Prime Minister Benjamin Netanyahu, who traveled to Washington to hold talks with Trump and seek relief from the U.S. tariffs. In comments to the press after the meeting, the American president doubled down on his criticism of the EU but indicated he was up for doing a deal with the bloc, as long as it committed to closing its trade deficit with the U.S. by buying more American energy.The idea of buying U.S. energy in a bid to stave off tariffs is not a new one. Almost as soon as Trump was reelected, von der Leyen suggested opening negotiations to buy more American liquefied natural gas (LNG). But POLITICO reported that the U.S. had, in response, offered no clarity about how a deal would work.On Monday, asked whether his global tariffs were a strong-arm negotiation tactic or permanent, Trump said: ""There can be permanent tariffs and there can also be negotiations, because there are things we need beyond tariffs.""He added: ""If we can make a really fair deal and a good deal for the United States, not a good deal for others, this is America first. It's now America first.""Later in the press conference, a reporter asked Trump whether there were two or three countries on his list that he felt were further along in getting their tariffs lowered, and Trump name-checked the EU: ""European Union. I mean as badly as they've treated us, they've brought their car tariffs essentially off. I guess they brought it down to 2.5 and I hear maybe to nothing.""But he also indicated that he wanted the EU to reduce its standards to allow more U.S. goods to enter its market, referring to safety measures as ""non-monetary tariffs.""""It's tariffs where they put things on where they make it impossible for you to sell a car ... they make it so difficult, the standards and the tests,"" Trump said. ""They come up with rules and regulations that are just designed for one reason: that you can't sell your product in those countries. And we're not gonna let that happen. Those are called non-monetary barriers.""In an indication of what is driving Trump's actions, the president harked back to a time when U.S. tariffs were sky high.""You know our country was the strongest from 1870 to 1913,"" Trump said. ""You know why? It was all tariff-based. We had no income tax. Then in 1913, some genius came up with the idea of let's charge the people of our country, not foreign countries that are ripping off our country.""British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. Europe’s busiest airport will remain closed all day after a fire at an electrical substation led to a power cut.Asked what concessions may be discussed in the call, the American president said: “We will be talking about land. We will be talking about power plants.”Kremlin confirms that Steve Witkoff met Russian President Vladimir Putin on Thursday night, as the sides work toward a presidential summit. "
mobility,EU agonizes over using its trade ‘bazooka’ to hit back at Trump’s mega tariff,https://www.politico.eu/article/eu-trade-bazooka-anti-coercion-instrument-donald-trump-tariffs/,"
				As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. 			AI generated Text-to-speech
				This article is also available in: French			LUXEMBOURG — The European Union is negotiating with a trade bazooka in its hand, but can’t agree on whether to pull the trigger just yet.Beyond a carefully crafted message of a “proportional” and “united” response from all of the bloc’s trade ministers at their meeting in Luxembourg on Monday, the key question of how to respond to U.S. President Donald Trump’s trade broadside threatens to open cracks in the bloc’s fragile cohesion.European Commission President Ursula von der Leyen, speaking in Brussels just as the trade ministerial was wrapping up, made it clear that the EU wants first to negotiate. The bloc was offering a “zero-for-zero” tariff scheme on industrial goods, she said, covering cars, drugs, chemicals, plastics and machinery among other things. That’s the carrot. (And it's a fairly easy carrot to dangle as transatlantic industrial tariffs have traditionally been low.) When it comes to sticks, the EU wants to create the impression of negotiating from a position of strength (while hoping that the financial market turmoil unleashed by Trump’s tariff broadside will sap his fighting spirit). But EU capitals are divided over exactly which stick they should use.The Anti-Coercion Instrument (ACI), a nuclear option that has yet to be deployed, would empower the EU executive to hit U.S. service industries such as tech and banking. Trump’s tariffs — which would affect €380 billion worth of EU exports — are exactly the kind of economic bullying the EU had in mind when it designed the ACI.But just because his “reciprocal” tariff of 20 percent on all EU goods is imminent (along with the 25 percent levies on steel, aluminum and cars already in force), that doesn’t mean the 27-nation bloc is ready to activate its bazooka. Doing so, as one minister put it, would mean the bloc really is in a trade war.The Europeans view the arguments justifying Trump’s tariffs as point-blank fallacious — including the claim that value-added taxes, EU tech regulation and phytosanitary standards should be considered non-tariff barriers. The formula used to calculate them is equally nonsensical: The EU's average tariff on industrial goods, for example, is 1.6 percent.According to an internal document seen by POLITICO, the Commission is considering slapping tariffs of up to 25 percent on a broad range of exports from the U.S. in response to Trump's levies on steel and aluminum.EU governments will vote on the plan on Wednesday. It would see the bloc impose a 25 percent duty on a wide range of U.S. exports, including soybeans, sweet corn, rice, almonds, orange juice, cranberries, tobacco, iron, steel, aluminum, certain boats and vehicles, textiles and certain clothes, and various types of makeup.The total amount of U.S. exports affected would be €22.1 billion based on the EU’s 2024 imports, according to public Eurostat figures. That’s less than originally intended after EU countries lobbied to remove items — like Kentucky bourbon — from the original hit list. That was a victory for France, Ireland, Italy and Spain.Countries such as France, Germany and Spain have led calls for the bloc not to take any options off the table in dealing with the U.S. president. “One also has to look closely at [the Anti-Coercion Instrument],” Germany’s outgoing Economy Minister Robert Habeck said on his way into Monday’s meeting. “These are measures that go far beyond customs policy. They have a broad palette. They then include digital services, but have a wide range of instruments, much more than just via a digital tax.” His Spanish counterpart Carlos Cuerpo agreed.“The Anti-Coercion Instrument is there for us to use in case we find it necessary. But again, the message that the EU should just take today is a positive one,” Cuerpo told POLITICO in an interview. “We need to explore the use of all the instruments that are at our disposal. That’s for sure. We should not rule out anything.” A senior EU diplomat aware of the meeting told POLITICO that when Šefčovič, the EU trade chief, took a straw poll on which tools Brussels should use, only a handful of EU ministers called for all options to be put on the table — including the trade bazooka. “He wanted, of course, to test the member states’ unity and what instruments that were on the table. Most member states said that we were in favor of countermeasures if we were forced to,” the senior diplomat said. They noted that about 20 percent of countries called for the EU executive to make use of all the tools it had at its disposal, including the Anti-Coercion Instrument. Specifically, Ireland and Italy — whose pharmaceutical and wine sectors are in the eye of the tariff storm — were more cautious over escalating trade tensions with Trump. Irish Foreign and Trade Minister Simon Harris expressed particular caution on invoking the ACI or targeting U.S. services.“I think if you were to get into that space it would be an extraordinary escalation at a time when we must be working for a de-escalation. It is in many ways the nuclear option if you start talking about the use of the Anti-Coercion Instrument and the likes,” said Harris, who flies to Washington on Tuesday.Italian Foreign Minister Antonio Tajani went so far as to float a delay of the entry into force of the EU’s countermeasures on steel and aluminum — from April 15 to April 30. More broadly, Italian Prime Minister Giorgia Meloni, among the European leaders closest to Trump, is showing signs of wobbling on a range of issues — from trade to defense — where the bloc is trying to present a united front. She is due to visit Washington next week, Corriera della Sera reported. When you put your most powerful trade weapon on the table so early in the negotiation process, it’s hard to remove it if things turn really sour. The European Commission is due to take a decision on whether to fine Apple and Meta as soon as this week for violating the EU’s digital competition rules. The move could add fuel to the trade fire between Washington and Brussels. “At this stage, I wouldn’t go into the precise definitions or the speculation on what kind of instrument we would use or how we would describe the reasoning for the use of this or that instrument,” Šefčovič told reporters during Monday’s closing press conference. “Our response is very gradual, just reacting to steel and aluminium … It’s kind of stretched over time because we want to create the necessary negotiating space. “At the same time, until now, despite our efforts and opening, we haven’t seen the real engagement, which would lead to the mutually acceptable solution,” the trade chief added.Additional reporting by Koen Verhelst, Laura Hülsemann and Ben Munster.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,"McLaren, Aston Martin and Bentley spared from UK electric car sales quotas",https://www.politico.eu/article/mclaren-aston-martin-bentley-car-sales-electric-uk-quotas/,"
				A long-awaited review of the rules will cut fines by 20 percent, while sales of new hybrid cars will now continue until 2035.			LONDON — The U.K. government has announced that supercar brands McLaren, Aston Martin and Bentley will be exempt from new electric vehicle sales quotas, as it finalizes a long-awaited industry review.Under the Zero Emission Vehicle (ZEV) mandate, manufacturers are fined if they miss targets for new electric vehicle sales as a proportion of total sales each year. The fines ratchet up every 12 months, with an earlier intention of phasing out sales of new diesel and petrol cars by 2030.But as U.S. tariffs batter British carmakers, the Department for Transport announced on Sunday night that those fines will be cut by 20 percent from this year, while sales of new hybrid cars — like the Toyota Prius and Nissan e-Power — will now continue until 2035 (instead of 2030).There will be more flexible use of credits available to manufacturers who exceed annual targets, to either deploy in tougher future years or sell to other firms.Ford and Stellantis are also expected to benefit from a change to allow petrol, diesel, hybrid electric and plug-in hybrid electric vans to be sold until 2035.Companies which have overachieved against either the car or van targets will have the ability to transfer excess credits to the other scheme.The U.K. is maintaining existing carbon dioxide scores for plug-in hybrids, rather than the revised higher rates now being used in the EU. A U.K. official said the move would support BMW, as well as Land Rover — whose parent company has suspended shipments of vehicles to the United States this month.Exempting small volume manufacturers like McLaren, Aston Martin and Bentley means those firms will “be allowed to make combustion engine supercars” beyond 2030, but with tighter rules on carbon emissions, a Department for Transport official confirmed to POLITICO on Sunday.The exemption means “preserving some of the U.K. car industry’s most iconic jewels for years to come,” a government statement said.It said the changes would provide “certainty, stability, and support” for British manufacturing, adding that they will be kept under review as the impact of new tariffs become clear.The revised rules will come into effect this year, subject to changes to secondary legislation. The full consultation response will be published on gov.uk on Monday. A POLITICO event was also told the previous Conservative government may have missed a chance to kill off a giant solar project.LONDON — The Conservative Party “got trounced in the polls,” ex-Energy Secretary Claire Coutinho admitted earlier this month. After 14 years controlling Westminster’s levers of power, voters …Who to look out for in Liverpool this weekend.Efforts to decarbonize the U.K. energy system have become a key political dividing line."
mobility,"Musk hopes US, EU get to ‘zero-tariff situation’",https://www.politico.eu/article/musk-hopes-us-eu-get-to-zero-tariff-situation/,"
				Just days after Trump launched his trade war, Musk envisions a transatlantic free-trade zone ‘at the end of the day.’			Tesla CEO and U.S. government official Elon Musk on Saturday backed eventually ending all tariffs and creating a free-trade zone between the U.S. and the European Union, just days after U.S. President Donald Trump slapped hefty tariffs on the EU and most of the rest of the world.Musk's comments, made in a video-streamed interview at a congress organized by Italian Deputy Prime Minister Matteo Salvini and his far-right League party, followed Trump's imposition of a 20 percent tariff on all imports from the EU.""At the end of the day, I hope it is agreed that both Europe and the United States should move ideally in my view to a zero-tariff situation, effectively creating a free-trade zone,"" Musk said. It's a sign of dissent from Musk with the current U.S. administration policy. Musk has been leading cost-cutting efforts in the U.S. government through his Department of Government Efficiency (DOGE) and is a close Trump adviser. POLITICO on Wednesday reported that Trump has told his inner circle that Musk would step away from his government role in the coming weeks.Musk's Tesla has been underperforming in recent months, and the carmaker's share price has almost halved since December. The company last week posted a far steeper-than-expected decline in car deliveries in the first quarter, with sales collapsing in several European markets — a sign that Musk's political activities could impact his companies.The Tesla CEO lost billions in the wake of Trump’s Tuesday tariff announcement. Telsa relies on imported parts from China, which Trump slammed with a 34 percent tariff.In Saturday's interview, Musk also said he wanted ""more freedom of people to move between Europe and North America.""Musk also attacked Europe's regulatory burden and said it was kept in place to protect some very large companies.""There are too many rules and regulations that make it very difficult to create a company and do too much to protect large companies at the expense of small to medium-sized companies,"" he said. Brussels is ""amplifying"" that, and ""radical deregulation is necessary,"" Musk said. Separately, Musk took an apparent swing at senior White House aide Peter Navarro — one of the chief cheerleaders of Trump’s tariff plans. In the early hours of Saturday morning, Musk seemed to take jabs at Navarro on his social media platform X under a video in which he explained the Trump administration’s logic in levying tariffs during a CNN appearance.After introducing landmark laws to regulate artificial intelligence, Europe now wants to reduce the burden. Draft strategy shows EU wants to woo tech leaders with computing, data, skills — and simpler rules — to run AI.Digital services could be Washington’s Achilles heel but European officials are conflicted over how to strike it.France is also considering taxing digital services, French Economy and Finance Minister Eric Lombard tells Le Journal Du Dimanche."
mobility,Jaguar Land Rover suspends shipments to US after Trump tariffs,https://www.politico.eu/article/jaguar-land-rover-suspends-shipments-to-us-after-trump-tariffs/,"
				The company, which exports almost a quarter of its production to the U.S., is pausing shipments in April as it works out longer-term solutions. 			Jaguar Land Rover (JLR), U.K.-based luxury automaker, said it will ""pause"" shipments of vehicles to the United States this month, after U.S. President Donald Trump's imposition of hefty tariffs on foreign-made cars. The company, which exports almost a quarter of its annual production to the U.S., is suspending shipments as a “short-term action” until longer-term solutions are worked out, according to a statement sent to media outlets. ""As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,"" JLR said in a statement to the BBC and other outlets.JLR generates more of its revenue in the U.S. than in any other market, making the British car maker particularly vulnerable to Trump’s trade war, according to The Times, which reported the suspension earlier Saturday.Overall, one in eight U.K.-built cars are exported to the U.S. The new trade rules imposed this week by Trump put more than 25,000 direct jobs in the automobile-manufacturing industry at risk, with JLR and the Cowley Mini being the most exposed, according to the Institute for Public Policy Research (IPPR).France and Germany want a tougher response to Washington’s trade war. Ukrainian President Volodymyr Zelenskyy said such attacks “cannot be accidental.” Testimony in Chinese espionage case raises fresh questions for Buckingham Palace.The EU’s body for scientific research, as well as local, regional and national governments, are mobilizing to poach top U.S. scholars."
mobility,"Trump’s tariffs to hit €380B of EU goods, first estimates show",https://www.politico.eu/article/trumps-tariffs-will-get-eu-revenges-dish-but-served-cold/,"
				Seventy percent of European exports to the U.S. are at risk of being affected by tariffs, an EU official said.			The European Union estimates that Donald Trump's sweeping global tariffs would apply to around 70 percent of the bloc’s exports to the United States, in a first analysis. “Taken together, some 70 percent of EU exports will be affected by tariffs, which reflects a volume of €380 billion,” said a senior European Commission official, who was granted anonymity to discuss the internal estimates.The figure combines the 20 percent reciprocal tariff Trump announced Wednesday and the 25 percent tariff on cars, car parts and steel and aluminum disclosed last month.In an attempt to distance itself from the Trump administration's approach to calculating the tariffs, the Commission is conducting a thorough analysis of their effects.While Commission President Ursula von der Leyen vowed that the EU stands ready to retaliate, and a few national ministers and prominent members of the European Parliament also called for action, the Berlaymont did not announce any immediate measures on Thursday.Europe will have to hold its breath a while longer to see if the bloc's so-called trade bazooka will actually be used to target banks or tech, or if Brussels will stick to the realm of Harley-Davidson motorbikes and bourbon.The Commission is also being more careful this time around than when it immediately readied counter-tariffs against Trump’s steel and aluminum duties last month.“When we're formulating a response to what's a giant, complex geopolitical issue, sometimes there would be recalibration, sometimes you adjust the strategy,” Commission spokesperson for trade Olof Gill said.“If anything, it's a strength because we're consulting with our member states in real time. We're buying the space we need to negotiate with the Americans, and we're looking at targeting our response.”If that takes a few weeks, so be it. “We are now in a very different ballpark, to use U.S. terminology here,” a second senior Commission official said, comparing the new 20 percent tariff to the more specific duties Trump announced previously. “And so that requires more work, more analysis, more consultation.”An EU diplomat told POLITICO “we're not in a rush” to retaliate.If trade levels remain the same, the U.S. stands to rake in a neat €81 billion in tariff proceeds, the officials calculated, up from €7 billion last year.“The logical economic effects of tariffs [are] that trade will go down,” the second official added. “This is one of the major flaws in the U.S. analysis: When they speak about revenue, they assume that everybody keeps trading with the United States. That will not happen.”As it stands, the EU is looking at designing a two-stage process. The first stage will start in mid-April when the already announced countermeasures for Trump’s steel and aluminum tariffs kick in. EU governments will vote on the package next week and it will take effect this and next month.The second stage in the retaliation, against the 25 percent car tariff and the 20 percent overall duty, will come later.Combined, the two stages aim to motivate the U.S. to come to the negotiating table, something it has resisted so far.The Commission is also counting on separate tariff rates for semiconductors and pharmaceuticals.To prepare industry more thoroughly for the effects of the tariffs, von der Leyen will hold two dialogues next week: on steel and cars (Monday) and on pharmaceuticals (Tuesday).These are intended to follow up on the strategic dialogues on automotive and steel the Commission held earlier this year, and which yielded action plans to help those sectors face their challenges.Camille Gijs contributed reporting.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
mobility,Spain unveils €14B aid plan to counteract Trump tariffs,https://www.politico.eu/article/spain-unveils-e14-billion-aid-plan-counteract-donald-trump-tariffs-pedro-sanchez/,"
				The country’s economy stands to suffer losses of up to €4.3 billion as a result of the levies this year.			Spanish Prime Minister Pedro Sánchez announced his government will launch a €14.1 billion aid package to reduce the domestic impact of United States President Donald Trump’s 20 percent tariff on all imports from the European Union. As part of the package, Sánchez said that public loans worth €6 billion would be made available for companies affected by the levies, with an additional €400 million allocated to reinforce the automotive industry.The funds will also be used to modernize the industrial sector, and for a new campaign that aims to promote Spanish products with the slogan “Our values ​​are not for sale. But our products are.”According to projections from the Spanish Chamber of Commerce, Europe’s fastest-growing economy stands to suffer losses of up to €4.3 billion as a result of Trump’s tariffs this year. The agri-food sector is expected to be the worst hit: Exports of domestic olive oil, which currently bring in around €1 billion from U.S. consumers, could decline sharply, and the country’s wine sector could be devastated if Trump carries out his threat to respond to retaliatory EU tariffs on bourbon with a 200 percent levy on wines and spirits. While Spain’s automotive sector barely exports any cars to the U.S., it is set to be indirectly impacted by the 25 percent tariffs announced by Washington last week because the country remains a leading manufacturer of mechanical components. Spain exported machinery and electrical equipment worth more than €4 billion to the U.S. in 2024.Sánchez emphasized that his government's labor laws will be used to protect workers in sectors impacted by what he described as an “unprecedented” and “unilateral” attack from the U.S.He also rejected Trump’s assertion that the levies are “reciprocal,” describing them instead as “an excuse to punish countries, apply sterile protectionism, and raise revenue to try to mitigate a deficit caused by questionable fiscal policy.”The EU’s body for scientific research, as well as local, regional and national governments, are mobilizing to poach top U.S. scholars.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Member countries will be able to tap up to €15 billion of cohesion funds for homebuilding.The push to boost defense spending clashes with Madrid’s struggle to ensure not “a single cent” is cut from social spending."
mobility,German leaders push for tough response to Trump tariffs in hope of détente later,https://www.politico.eu/article/german-leaders-push-tough-response-donald-trump-tariffs-robert-habeck/,"
				Germany’s leaders still hold out hope that a free-trade agreement could follow Trump’s tariff “mania.”			BERLIN — Germany’s leaders aren’t concealing their preferred strategy on how to counter U.S. President Donald Trump’s “Liberation Day” tariffs: Retaliate hard enough to get Trump to come to his senses.Economy Minister Robert Habeck called for a firm response to what he termed Trump’s “tariff mania.”“The strategy [must] be aimed at, in the end, not risking or having any tariffs, no tariff war, no trade war,” Habeck said on Thursday. “But the question is, as always, how do you get there?” he added. “I advocate that Europe acts firstly with unity and secondly with determination. We are in a strong position. We can join forces with many countries, with many regions of the world and increase the pressure on the Americans accordingly.”With its export-driven economy, few countries around the world are as vulnerable to Trump’s tariff threats as Germany. After Trump dumped the European Union in the worst category of America’s trade partners Wednesday, hitting the bloc with a 20 percent tariff on all imports, Jörg Krämer, Commerzbank’s chief economist, called it a “bad day for Germany as an exporting country.” “This will reduce Germany's gross domestic product by an estimated half a percent over two years,” he said.Trump’s tariffs present a particular challenge for incoming conservative German chancellor Friedrich Merz, a longtime transatlanticist and believer in free trade who has vowed to revive Germany’s stagnating economy. Despite Trump’s move, conservatives in particular are still holding out hope that a tough EU response now will lure Trump to the negotiating table and even yield a free-trade agreement later.“In the short term, there is no getting around countermeasures to the U.S. tariffs. Otherwise there will be no movement on Washington’s side,” Jürgen Hardt, a senior conservative lawmaker told POLITICO. However, he added, no “escalation spiral” that will damage German industry even more should result.“The offer from Europe to the USA must always stand: We will work with you at all times to reduce the actual injustices in the trade system and reform the WTO,” Hardt said. “And we are still interested in deals at all stages up to and including a free-trade agreement.”Merz’s conservative bloc and the center-left Social Democratic Party (SPD), which are in the midst of coalition negotiations, vowed to aim “for a free-trade agreement with the U.S. in the medium term” in a draft coalition agreement leaked last week.Conservative and SPD politicians confirmed to POLITICO that they hoped to convince Brussels — which oversees European trade policy — to respond in three phases, first with tough counter tariffs. That retaliation should bring the Trump administration to the negotiation table, they hope, where finally a full-fledged free trade agreement — or a partial deal reducing tariffs on industrial goods on both sides — could be reached. The lawmakers spoke on condition of anonymity in order to freely discuss internal deliberations.“I believe this is an intermediate stage, at least it should be, from which we can then get back into talks and look together at what we are actually doing to international trade and then move away from customs policy again,” Alexander Schweitzer, a SPD state premier and one of the main coalition negotiators on economic policy, said in a radio interview on Wednesday in view of counter-tariffs.Berlin would, however, need a coalition of the willing in Brussels to back the revival of negotiations with the U.S. Despite Merz’s close contact to French President Emmanuel Macron and their vow to revive the German-Franco alliance, both countries have been at odds on multiple trade files in recent years.What’s more, the last attempt to strike such a deal— the Transatlantic Trade and Investment Partnership (TTIP) — collapsed after three years of tortured negotiations amid opposition from inside Germany’s center-left SPD.Hildegard Müller, the president of Germany’s car association, urged the Commission to widen its focus when concluding trade deals around the world.“The current situation also indicates what the EU needs to do. For example, the speed and determination with which free-trade agreements are concluded must be massively increased. Concrete results must be achieved with as many regions in the world as possible.”The U.S. was Germany’s most important trading partner last year, according to Germany’s statistics office. Goods worth €161.4 billion euros were exported to the U.S. The new tariffs are expected to hit Germany’s automotive industry, its pharmaceutical sector and mechanical engineering particularly hard.Israeli officials objected to a commemoration speech by philosopher Omri Boehm, grandson of a Holocaust survivor. The move aims to protect Alternative for Germany as it becomes the country’s largest opposition party.Friedrich Merz’s incoming coalition wants to press the EU to look at withholding funds and suspending voting rights from Hungary, according to a document seen by POLITICO.The ultimate decision on sending German troops would still depend on “so many parameters,” says Boris Pistorius in Berlin."
mobility,"Europe must pile pressure on Trump over tariffs, Germany’s Habeck urges",https://www.politico.eu/article/germany-economy-minister-robert-habeck-international-alliance-against-donald-trump-tariffs/,"
				Berlin’s economy minister talks of a pivot point in global trade — and an opportunity for the continent to forge new alliances.			BERLIN — Germany’s outgoing Economy Minister Robert Habeck launched a blistering attack Thursday on U.S. President Donald Trump’s new global tariff regime — and is calling on Europe and like-minded partners to form new trade alliances in response.“The logical consequence is: then he needs to feel the pressure,” Habeck said in Berlin, adding that Trump “only folds when he’s under pressure.” He called the new tariffs — a blanket 10 percent levy on all U.S. imports and much steeper rates for dozens of countries — “the most disruptive tariff hike in 90 years.”“This was a day of arbitrariness,” Habeck said. “And that will prove true in many ways — the consequences could be dramatic.”The EU, which now faces a 20 percent tariff under Trump’s policy, is preparing detailed countermeasures. Holding up a classified draft list of targeted American goods, Habeck said the bloc was “not just putting tariffs on almonds” but developing a broad, strategic response “product by product.”Yet Habeck’s message extended far beyond retaliation. He framed the moment as a pivot point in global trade — and an opportunity for Europe to forge new alliances. “An alliance with Canada and Mexico is the order of the day,” he said, pointing to informal talks with both countries during this week’s Hannover Messe, one of the world’s largest trade fairs for industrial technology. “When you speak with them, you realize they think just like us.”He also noted a rare joint statement by China, Japan and South Korea pledging to coordinate their responses — a sign, he said, of how seriously the global economic order is being challenged. “They don’t particularly like each other, but now they’re united to stop this economic blind flight,” Habeck said.Habeck was unsparing in his criticism of Trump’s rationale for the tariffs. “The core assumption is wrong,” he said. “The U.S. has profited enormously from globalization. That they haven’t distributed the gains fairly is their domestic problem. But blaming others is dishonest — and dangerous.”He warned that the tariffs risk triggering recessions worldwide. According to German economic estimates, U.S. growth could shrink by 1.9 percent if the tariffs remain in place.“This isn’t just about Europe,” Habeck said. “This is about defending the idea of fair, rules-based global trade. And we must meet this moment with unity, pragmatism — and pressure.”The U.S. president’s tariffs and stance on Ukraine compelled the incoming chancellor to quickly form a stable government capable of responding.Jörg Kukies says German exports to the U.S. will decline by 15 percent if tariffs remain in place.Merz signals a tougher stance on economic policy.Berlin formally activates brigade in Lithuania, signaling a major shift in defense posture."
mobility,Trump hits ‘pathetic’ Europe with 20 percent tariffs,https://www.politico.eu/article/donald-trump-europe-trade-tariffs-imports-liberation-day/,"
				European Union joins China, Japan, Taiwan and Korea in U.S. President Donald Trump’s trade sin bin.			AI generated Text-to-speechPresident Donald Trump dumped the European Union in the worst category of America’s trade partners Wednesday, hitting the bloc with a 20 percent tariff on all imports. Trump’s “Liberation Day” announcement puts the 27-nation bloc in the trade sin bin along with major economies like China, Japan, Taiwan and Korea. The move throws up U.S. trade barriers that haven’t been this high since the Great Depression of the 1930s. Trump said he was declaring a national emergency to impose a 10 percent tariff on imports from all countries. Aside from that, he imposed individualized additional tariffs on approximately 60 countries which he believes are the worst trade offenders.“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said in the White House Rose Garden.“Now we’re going to charge the European Union. They're very tough. Very, very tough traders. You know, you think of the European Union, very friendly. They rip us off. It's so sad to see. It's so pathetic,” Trump said. “We are going to charge them 20 percent,” the U.S. president said.A White House official said the 10 percent tariff would take effect early the morning of April 5 and the additional tariff on the worst offenders on April 9. Italian Prime Minister Giorgia Meloni was the first EU government leader to respond to Trump’s tariff blow, calling it “wrong and not in the interest of either party.”“We will do everything we can to work on an agreement with the United States with the aim of averting a trade war that would inevitably weaken the West in favor of other global players,” Meloni, who has hitherto enjoyed friendly relations with Trump, said in a Facebook post.The Trump administration estimates the tariffs charged by the European Union to the United States at 39 percent, and cuts this figure by half to come up with the 20 percent, in what Trump labelled “kind reciprocal” tariffs. The Trump administration took particular offense at what it views as the EU’s nontariff barriers, such as value-added tax and its tech regulations. It factored these into its calculations — although the Europeans flatly reject its view that either discriminate against American businesses.In fact, over 70 percent of imports to the EU are duty-free. And, on a trade-weighted basis, EU tariffs average just 2.7 percent, according to the World Trade Organization.Trump’s tariff offensive came as a slap in the face of the European Union, which sought to bring his administration to the negotiation table in the lead-up to Wednesday’s announcement. EU trade chief Maroš Šefčovič went to Washington twice to meet with his U.S. counterparts — to no avail. The European Commission said earlier it would respond in one strike to Trump’s reciprocal tariffs and auto tariffs, in addition to its answer to U.S. steel and aluminum duties already in force. Commission President Ursula von der Leyen responded in the early hours of Thursday, saying that the bloc was ""prepared to respond.""“There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created, as all U.S. trading partners will be hit,” von der Leyen said in a televised statement. The new “reciprocal” tariffs will not be stacked on top of the sectoral tariffs that Trump has already announced for autos, steel and aluminum, and that are expected for lumber, copper, pharmaceuticals, semiconductors and potentially critical minerals, White House officials said.Giovanna Faggionato contributed to this report. This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,EU to bundle response to Trump’s tariffs,https://www.politico.eu/article/eu-to-bundle-response-to-trumps-auto-and-reciprocal-tariffs/,"
				Brussels is poised to retaliate after the U.S. president’s announcement, which is expected to contain double-digit American tariffs on all EU exports. 			BRUSSELS — The European Commission said it would respond in one strike to President Donald Trump’s new auto and reciprocal tariffs, on top of its answer to U.S. steel and aluminum duties already in force.“There would be two [responses]. There will be the first response to the steel and aluminum tariffs from the U.S. And there will be a second response that clusters together everything else,” said Olof Gill, the Commission’s spokesperson for trade.“The first is going through the internal process … And the second, as I mentioned, will be issued after the expected announcements from Washington later today,” Gill said on Wednesday.  The first part is the Commission’s lists of countermeasures that would be worth a combined €26 billion to respond to Trump’s steel and aluminum tariffs imposed last month, in consultation with EU member countries and businesses.On top of that, Brussels will thus respond in one strike to Trump’s reciprocal and cars tariffs. Trump is due to make his tariff announcement, which he has styled as U.S. “Liberation Day,” on Wednesday at 4 p.m. in Washington D.C. That’s 10 p.m. in Brussels. Just last week, Trump announced he would impose a 25 percent tariffs on foreign-made cars. Those tariffs also kick in on Wednesday.While details remain sketchy, Brussels expects Trump to announce tariffs as high as 20-25 percent on all EU exports to the U.S. — a level of protectionism unseen since the Great Depression of the 1930s that threatens to disrupt global trade, hit economic output in America’s trading partners, and raise the cost of goods for U.S. consumers.Trade Commissioner Maroš Šefčovič is due to meet with EU ambassadors on Friday over lunch to plan next steps, according to two EU diplomats, ahead of a meeting of the bloc’s trade ministers in Luxembourg next Monday.Gill declined to give more details on the timing of the EU response, stressing it would come at an “appropriate time.” He also said there was no plan at present for Šefčovič to visit Washington to try and strike an agreement with the Trump administration. Šefčovič came away empty-handed from a six-hour meeting with top U.S. trade officials last week.This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,EU fines big carmakers €458M for green cartel,https://www.politico.eu/article/eu-fines-big-carmakers-e458m-for-green-cartel/,"
				European groups received some of the biggest fines.			The EU has doled out €458 million in fines to Volkswagen, Stellantis and 13 other automakers for colluding on their vehicle recycling programs.The European Commission said the 15 major carmakers and their trade association had run a long-lasting cartel concerning the terms for recycling old vehicles.While the cartel involved almost every major automaker, European groups received some of the biggest fines. Volkswagen was hit with a €127 million fine, Renault-Nissan with a  €81 million fine and Stellantis with a €75 million fine. U.S. manufacturers were also targeted, with Ford receiving a €41 million fine for its conduct.Several Asian manufacturers including Toyota were also fined.The Commission said that the manufacturers and their association, the European Automobiles Manufacturers' Association (ACEA), had colluded to fix the market for recycling end-of-life vehicles and that European consumers had suffered as a result.“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products,” said Competition Commissioner Teresa Ribera in a statement.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.The Commission’s first fines under its Digital Markets Act are expected this week.U.S. tech giants must overhaul key products, the European Commission rules.A series of decisions against Apple, Meta and Google could open up a new front in the EU-U.S. trade war."
mobility,EU readies counterstrike on Big Tech and US banks over Trump’s mega tariffs,https://www.politico.eu/article/eu-tariffs-counter-strike-big-tech-us-banks-donald-trump/,"
				Brussels sees America’s transatlantic trade surplus in services as its Achilles’ heel.			
				This article is also available in: French			BRUSSELS — It’s one thing to hit Harley-Davidson motorbikes and bourbon whiskey. It’s another to go after Silicon Valley or Wall Street.The European Union is considering opening up a new battlefront as President Donald Trump prepares to impose so-called reciprocal tariffs on all of America’s trading partners on Wednesday. “Liberation Day,” as Trump has called it, would mark the biggest escalation in the trade war he first launched against Canada, Mexico and China following his Jan. 20 inauguration. Universal tariffs soon followed on steel and aluminum and then on cars — putting the onus on the European Commission, the EU’s executive, to defend the economic interests of the 27-member bloc.Brussels has so far played by the traditional trade-war rulebook, matching Trump’s broader tariffs on the industrial metals with equivalent levies on iconic American brands like Harley-Davidson. The tit-for-tat response is intended to match, or “mirror,” the administration's moves — but not to escalate.Now, with Washington threatening to punish the EU further, not only for its existing tariffs but also for what it sees as nontariff barriers such as its tech regulations, Brussels is preparing to up the ante.“We will approach these negotiations from a position of strength,” European Commission President Ursula von der Leyen said in a speech to the European Parliament on Tuesday, the eve of Trump’s big tariff announcement.“Europe holds a lot of cards. From trade to technology, to the size of our market. But this strength is also built on our readiness to take firm countermeasures. All instruments are on the table.”In targeting U.S. services, Brussels could be thinking of bulge-bracket banks like J.P. Morgan or Bank of America, or tech players like Elon Musk’s social network X, search giant Google, or Amazon, the world’s largest online retailer.“We are certainly not excluding a bigger response, a better response and an even more creative response through services, through [intellectual property rights],” a senior European Union official told reporters in mid-March.The EU is a net exporter of automobiles, pharmaceuticals and food to the U.S. But it’s a net importer of services — and that gives it more leverage in a trade dispute. (Taking goods and services together, transatlantic trade is actually broadly in balance. The EU enjoys an overall surplus of just $50 billion, or about 3 percent of the $1.7 trillion in annual transatlantic commerce.)“America’s tech giants, financial industry, and pharma companies have deep roots in Europe. Push too far, and Brussels could tighten the screws: digital levies on Silicon Valley, regulatory clamps on Wall Street, or taxes on U.S. pharma exports,” said Tobias Gehrke, a senior policy fellow at the European Council on Foreign Relations. “America may wield the bigger stick, but Europe has plenty of sharp stones to throw.”In the ring of its trade war with Trump, the EU executive has so far fought in the same weight category: blow for blow. After Washington imposed new and broader tariffs on steel and aluminum imports in mid-March, the Commission is ready to respond in kind by hitting €26 billion in U.S. goods exports. After difficult consultations with EU governments and businesses, Brussels should propose those tariff lists as soon as this week. The thing is, there are only so many goods you can hit when the damage is so big. “If Trump imposes reciprocal tariffs, we are entering a whole new game,” said an EU diplomat, granted anonymity, like others quoted in this story, to speak candidly.Depending on Trump’s own playbook, there are two broad ways the Commission could go about hitting services.First, by making use of the existing regulations it has built over the last five years, it can tighten rules governing Big Tech; tax major American banks; or slow the issuance of licenses to do business in the EU. “When you see the positioning of the big American tech companies over the last few months, who are all close to Trump, you get the impression that they’re lobbying the White House against Europe. In fact, they’re extremely vulnerable to retaliatory measures,” said Yves Melin, a founding partner at law firm Cassidy Levy Kent. A case in point is the bloc’s Digital Markets Act, which seeks to curb the power of dominant tech players and safeguard competition. The Commission is set to decide as soon as this week whether Apple and Meta are in breach of those rules. But it’s also an area where Brussels will be cautious of fanning the flames. “The problem with the digital part is that the moment the EU does that, the pressure from the U.S on the regulatory framework will even increase,” said Arnoud Willems, partner for international trade at law firm King & Spalding. Taxing financial transactions and digital flows, or making American airlines pay more to land in European airports, are other levers available to the EU, he added.The EU could also restrict the access of U.S. companies to public contracts under its new International Procurement Instrument. If Brussels shuts out American energy or consulting firms from EU public contracts, that would hit a major revenue source.As a last resort the EU can deploy its trade “bazooka” — the Anti-Coercion Instrument. As the name suggests, it would enable a broad-spectrum response, including targeting services, if Brussels concludes that U.S. actions are excessive.“These things are in principle … possible, for example, under the Anti-Coercion Instrument,” said the senior EU official cited above when asked whether the EU would hit trade in services.Within six months the Commission could go as far as to pull the plug on Musk’s X; restrict the intellectual property rights of U.S. tech giants; or bar them from investing in the EU.In an anti-coercion case “I wouldn’t be surprised if the first victims are the American tech industry,” said Melin, the lawyer.  While the EU executive would call the shots on when to use that nuclear option, it would need the support of 15 out of its 27 member countries to decide whether and how to strike. “Many member states don’t want to escalate by triggering an anti-coercion case,” said the EU diplomat quoted above.European businesses also worry about going down that route.“The problem with all these ideas of leverage is that they are not really leverage,” said Luisa Santos, deputy director general at corporate lobby group BusinessEurope. “Our economies are so intertwined … that even if you impose tariffs or any other measure on the services side, you will be hurting your own interest,” she added. And even as it signals its willingness to escalate, Brussels also hopes to bring Washington to the negotiating table. Trade Commissioner Maroš Šefčovič is hoping his U.S. counterparts can settle on a “term sheet” that sets out a framework for talks — when the next round of tariffs takes effect.These could entail lowering duties, investing in American defense firms, boosting purchases of U.S. liquefied natural gas, or softening some regulations.“We don't want to cross from trade to security. They probably don't want to cross from trade to technology, right?” said a senior official from an EU member country.“I mean, if we are fighting, let's have at least a clear box.” Koen Verhelst contributed reporting. This story has been updated with comments by European Commission President Ursula von der Leyen.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,EU on Trump car tariffs: We’ll punch back but let’s talk too,https://www.politico.eu/article/eu-donald-trump-car-tariffs-punch-back-talk/,"
				Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. 			BRUSSELS — Hit back, but let's keep channels open to talk is the message coming out of Brussels and European Union capitals in the wake of United States President Donald Trump's threat to hit all car imports with tariffs.But if the EU's past record on trade disputes involving key economic sectors is anything to go by, countries will come under increasing pressure to diverge as the car tariffs get painful.Trump announced Wednesday evening that the U.S. will impose 25 percent tariffs on all vehicles imported into the country, going into effect on April 2.An additional 25 percent tax on automotive parts will start in May, the White House said, marking a steep escalation in the transatlantic trade war that will damage an already struggling automotive sector.European Commission President Ursula von der Leyen was quick out the gate with a response, putting out a statement before Trump had finished speaking. But what it delivered in speed, it lacked in specifics.“We will now assess this announcement, together with other measures the U.S. is envisaging in the next days,” she said. “The EU will continue to seek negotiated solutions, while safeguarding its economic interests.”Berlin and Paris used more bellicose language, saying the bloc needs to retaliate while reiterating the need for negotiations to continue.The EU should “not back down in the face of the USA. Strength and self-confidence are required,” said Germany's acting Economy Minister Robert Habeck, while backing off in the next sentence, promising to support the Commission in reaching a negotiated deal.""The only solution for the European Union will be to raise tariffs on American products in response,"" French Finance Minister Eric Lombard said in a radio interview on Thursday, denouncing the U.S. for ""completely changing its economic policy in a very aggressive way.""There will be pain from Trump's tariffs. European automakers exported 749,000 cars to the U.S. last year, worth €38.5 billion, according to the European Automobile Manufacturers’ Association.European carmakers saw their stock prices plunge on Thursday.Hildegard Müller, the head of Germany's powerful VDA car lobby, called Trump's measures ""a fatal signal for free and rules-based trade"" and appealed for ""immediate negotiations.""But so far, efforts to talk  Trump down have failed.  EU trade chief Maroš Šefčovič flew to Washington this week to meet with Trump’s trade representatives. Less than 24 hours later, the president unveiled his car tariffs.For now, the message coming out of Europe is fairly unified. But that may begin to fray as the costs start to accumulate — especially as some countries, like Germany, will be hit hard, while other like France, Spain and Italy, which export few cars to the U.S., will suffer much less.There are recent examples of European unity on trade crumbling. After Trump threatened to hit the EU with 200 percent duties on booze as part of a dispute over steel and aluminum tariffs, France argued against targeting American products like bourbon and jeans, fearing U.S. retaliation hitting its lucrative wine and Champagne exports.Berlin has already gone to bat for its carmakers, lobbying frantically last year in a failed effort to stop the EU from slapping new duties on made-in-China electric vehicles.""Discussions on the anti-subsidy [duties] on Chinese EV imports last year showed how difficult it is to come to a common European position if the interests of German carmakers are at stake,"" said Nils Redeker, deputy director of the Jacques Delors Centre think tank in Berlin.While carmakers in the line of fire are pleading for a negotiated solution, their interests don't completely overlap with those of Germany. The country's foreign trade association said, “We cannot leave this unilateral, regulator behavior unanswered,” calling on the EU to target American Big Tech companies operating in Europe.The U.S. accounts for 13 percent of Germany’s total automotive exports, representing a critical lifeline as the automakers’ revenue in China — their most important market — is under pressure from cheaper and better Chinese EVs.Volkswagen, whose premium carmaker Porsche manufactures all of its models in Europe, but sells the most models in the U.S., is particularly vulnerable.But it's not just German carmakers that will be harmed by the new tariffs.Thanks to a long-standing North American free-trade agreement, automakers and their suppliers have developed a complex supply chain with parts and cars often crossing between the U.S., Mexico and Canada multiple times before landing at a dealership. European carmakers are part of that trade.“Modern vehicle manufacturing is not confined to national borders. Automotive transatlantic value chains today are deeply interwoven,” Matthias Zink, president of automotive supplier lobby CLEPA, said in a statement. “These protectionist tariffs risk breaking apart a trading partnership built over decades.”Trump is also threatening to hit back against any countries that retaliate against next week's tariffs. The trade war could not come at a worse time for Germany’s auto sector, which is “facing a perfect storm” both in China and in the U.S., said Redeker of the Jacques Delors Centre.“German manufacturers are now at risk of being shut out of the U.S., as well,” he said. “In effect, Germany’s two most important export markets outside the EU are drying up — each for different reasons, but at the same time.”Nette Nöstlinger, Camille Gijs, Joshua Berlinger and Oliver Noyan contributed reporting.To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP.“The EU must not give up on building a European battery industry,” says senior MEP."
mobility,"UK not retaliating to Trump’s latest tariff threat, chancellor says",https://www.politico.eu/article/uk-not-retaliating-to-trumps-latest-tariff-threat-chancellor-says/,"
				“We are not at the moment at a position where we want to do anything to escalate these trade wars,” says top finance minister Rachel Reeves.			LONDON — Chancellor Rachel Reeves has said the government will not do anything to “escalate” Donald Trump’s trade wars by retaliating to the U.S. president’s latest plan to slap a 25 percent duty on imported cars, as the U.K. holds out hope of an exemption.The new tariffs, announced on Wednesday night, are due to go live on April 3, when Trump also plans on unveiling reciprocal tariffs against U.S. trade partners.“This is the beginning of Liberation Day in America,” the president said from the Oval Office at the White House on Wednesday. “We’re going to take back just some of the money that has been taken from us.”Despite the escalation, U.K. Chancellor Rachel Reeves told Sky News on Thursday morning: “We are not at the moment at a position where we want to do anything to escalate these trade wars.“Trade wars are no good for anyone. It will end up with higher prices for consumers, pushing up inflation after we’ve worked so hard to get a grip of inflation, and at the same time will make it harder for British companies to export.”The chancellor added: “We are looking to secure a better trading relationship with the United States. I recognize that the week ahead is important. There are further talks going on today, so let’s see where we get to in the next few days.”British car exports to the U.S. are worth some £8.3 billion annually, making them (at 14 percent) the largest share of U.K. goods exported to the U.S.The U.K. already faces a 2.5 percent tariff on their passenger car exports to the U.S. and a 25 percent tariff on light trucks. Trump said his new duties would be in addition to those, raising the tariff rate for passenger cars to 27.5 percent and the rate for light trucks to 50 percent.“These are worrying times for U.K. vehicle makers,” Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT) said on Wednesday night. “Without substantive regulatory easements our manufacturing viability remains at risk and the U.K.’s transition to zero emission mobility under threat.”A system allowing firms to claim back EU tariffs imposed on U.S. imports is “not fit for purpose,” says Northern Ireland’s deputy first minister.British Trade Secretary Jonathan Reynolds said the U.K. would “not hesitate to act” after Trump last night announced a 10 percent tariff on U.K. goods imported into the U.S. from April 5.Food standards remain a red line in negotiations, but U.K. officials refuse to rule out concessions on lowering tariffs for some U.S. meat imports.“Single Trade Window” platform could be abandoned as government seeks savings ahead of spending review."
mobility,Von der Leyen vows EU will protect its interests as Trump announces huge car tariffs,https://www.politico.eu/article/ursula-von-der-leyen-eu-donald-trump-europe-cars-tariffs-interest-trade/,"
				The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports.			European Commission President Ursula von der Leyen responded quickly to a decision by United States President Donald Trump to slap a 25 percent tariff on auto imports.The tariffs, which Trump said will take effect April 3, are a heavy blow for the European car industry and represent the largest escalation yet in Trump’s multi-fronted trade war, which is expected to have severe global economic consequences.“I deeply regret the US decision to impose tariffs on European automotive exports,” von der Leyen said in a statement released late Wednesday evening. “Tariffs are taxes — bad for businesses [and] worse for consumers equally in the US and the European Union.”She said Europe would assess the tariffs, and anticipated that further measures would arrive from the White House in the coming days. Trump has stepped back from implementing tariffs on America's allies and adversaries several times since his Jan. 20 inauguration.""We're signing today,"" Trump said of the protectionist tariffs. ""It goes into effect April 2. We start collecting on April 3.""While von der Leyen's language was guarded, she left little doubt that the EU is prepared to retaliate.“The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” she said. “As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.”The tariffs, if implemented, will be felt around the world. The United States imported $214 billion worth of passenger cars in 2024, including from non-European allies like Japan, Mexico and South Korea.“I think this is very bad news,” European Commission Executive Vice President Teresa Ribera said in Brussels Thursday morning, commenting on Trump's tariffs announcement. “We regret the Americans, the American administration [is] playing against a well-functioning global market,” she added. “I think that it is bad for consumers … it is bad for industrials. We will have to pay attention to our own interests as Europeans.”On the next steps, Ribera said Europe needs ""to see how they are framing in exact terms what they want to do and be sure we respond accordingly.”She added: “We are going to back an industry that complies with the highest standards in terms of labor rights, in terms of environmental standards. And that is key for a well-functioning economy here in Europe and worldwide.""This story has been updated. President’s decision to pause so-called reciprocal tariffs on the same day as implementing them came after his administration previously insisted the new rates were here to stay. As the transatlantic trade war heats up, Europe’s Trump whisperer gets the chance to use her voice.Balkan leader also expects to meet American President Donald Trump in the coming months to discuss tariffs.Jens-Frederik Nielsen rebuts U.S. president’s comments that the U.S. will ‘get’ Greenland."
mobility,Victoria’s Secret and Tesla face French boycott as anti-Trump feeling surges,https://www.politico.eu/article/over-half-french-ready-boycott-us-brands-protest-against-donald-trump/,"
				Survey shows majority of citizens want to support French companies and punish American tycoons who back the White House. 			PARIS ― Donald Trump is fueling France's famous economic patriotism.A majority of the French population is considering boycotting United States brands to oppose the new American administration, which has been verbally targeting Europe since coming to office.Fifty-seven percent of the French say they are ready to boycott U.S. goods or services in the coming months as positive public perception of America falls to the lowest level in France in the past 40 years, according to a survey by polling firm Ifop for website nyc.fr published Tuesday.Sixty-two percent of the French say they broadly support the idea of a boycott.As transatlantic relations keep deteriorating following U.S. President Donald Trump's ascension to office, the French appetite for economic patriotism is only growing.Supporting French companies and punishing American tycoons who are endorsing Trump are the main reasons for the boycott, the survey shows.Almost one-third of surveyed people (32 percent) said they were already boycotting American brands, especially Coca-Cola and McDonald's.But more consumers could soon join the club: Twenty-six percent of the French said they would ""certainly"" boycott American products in the coming months, while 31 percent would ""probably"" do that.Elon Musk's Tesla would be the main target of the boycott, followed by Jeep (which is owned by multinational Stellantis), social media platform X and Victoria's Secret lingerie.While France is the third-largest European trading partner of the U.S., trade relations between the two countries are again facing turmoil after Washington started a new trade war.In the latest escalation of the ongoing trade spat, Trump targeted France specifically by threatening 200 percent tariffs on Champagne, wine and spirits coming from French producers — and the rest of the European Union.CORRECTION: This article has been updated to clarify that France is the third-largest European trading partner of the U.S. “This is a wake-up call on trade agreements,” French Trade Minister Laurent Saint-Martin tells POLITICO.Stéphane Séjourné says he expected “good news,” which will provide succor for the French booze industry. PARIS —The trade war with the United States might prevent France from bringing down its sky-high budget deficit, French Economy and Finance Minister Eric Lombard said on …Why let penguins have all the fun? "
mobility,Tesla’s Europe sales collapse as anti-Musk backlash grows,https://www.politico.eu/article/teslas-europe-sales-collapse-by-over-half-while-chinese-evs-rise/,"
				To add insult to injury, Chinese EVs are surging.			Tesla's downward spiral is turning into a rout, with its share of European electric car sales falling by 58 percent in the first two months of this year, dropping from 18.4 percent in 2024 to 7.7 percent for the same period this year, according to data from JATO Dynamics, an auto consulting firm.To add insult to injury, Chinese EV brands sold nearly 20,000 vehicles in Europe last month, far outpacing Tesla's 15,700 units.The American EV company is facing a global backlash, fueled by ire at CEO Elon Musk and his actions as a key adviser to U.S. President Donald Trump.In Europe, Germany is leading the charge in rejecting Tesla, which has one of its gigafactories outside Berlin. That's been fueled by a backlash against Musk after he spoke at a rally for the far-right Alternative for Germany party ahead of the February snap election.More than 94 percent of respondents to a recent survey of 100,000 Germans said they would no longer buy a Tesla.The steep fall in Tesla's market share comes as EV sales rebound; European electric car sales this February were 164,148, a 26 percent increase compared to the same month last year.European brands make up the bulk of EV sales on the continent, but Chinese EV makers are gaining ground, despite the duties the Commission slapped on made-in-China electric vehicles last year.BYD, the world's largest EV manufacturer, saw 4,400 vehicles registered in February, a 94 percent year-over-year increase.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP.“The EU must not give up on building a European battery industry,” says senior MEP."
mobility,Heathrow shutdown chaos: Some flights resume after massive fire,https://www.politico.eu/article/heathrow-shutdown-what-do-we-know/,"
				British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. 			AI generated Text-to-speechEurope’s busiest airport, London’s Heathrow, is beginning to resume limited flights after a dramatic day of closures Friday following an electrical substation cut power to the area.London’s counter-terror police are leading the investigation into the cause of the blaze, though for now authorities stress there is “no indication of foul play.”Heathrow had advised passengers not to travel to the airport and to contact airlines for further instructions. As of Friday evening, some flights had resumed, with more planned for Saturday.Around 1,300 flights arrive or depart from Heathrow each day, meaning thousands of travelers have likely been affected.A fire broke out Thursday night at an electrical substation in Nestles Avenue in Hayes, which is less than 5 kilometers from Heathrow.Around 70 firefighters and 10 fire engines were working to douse the fire at the substation, which authorities said was under control on Friday morning. The fire caused a power outage affecting a large number of homes, local businesses and Heathrow airport.Around 150 people were evacuated from the surrounding area and a 200-meter cordon established. The fire brigade advised local residents to keep windows and doors locked to keep smoke out of their homes.On Friday evening, the National Grid said it had found an “interim solution” to restore power to the airport and surrounding customers. Airport bosses said flights were expected to resume, with a focus on repatriations and aircraft relocation. “We hope to run a full operation tomorrow and will provide further information shortly,” a Heathrow spokesperson said.Heathrow is Europe’s — and the U.K.’s — busiest airport, handling over 1,300 take offs and landings a day.According to flight tracking site Flightradar24, 1,351 flights were scheduled at Heathrow on Friday. Many were either canceled altogether, or diverted to other airports, throwing thousands of passengers’ travel plans into chaos. Heathrow acts as a major worldwide hub for passengers flying onward to other destinations.The cause of the fire is not yet known, the London Fire Brigade said in a statement. But questions have been raised about Heathrow’s emergency preparedness and resilience. A spokesperson for London’s Metropolitan Police said Friday lunchtime there was “no indication of foul play” but detectives “retain an open mind” over the cause — with counterterror cops now leading the probe.The spokesperson said: “Given the location of the substation and the impact this incident has had on critical national infrastructure, the Met’s Counter Terrorism Command is now leading enquiries.“This is due to the specialist resources and capabilities within that command that can assist in progressing this investigation at pace to minimise disruption and identify the cause.”Citing a person familiar with the investigations, POLITICO’s London Playbook reported Friday evening that it appeared an electrical engineer had made a mistake which caused the fire. “It’s always cockup rather than conspiracy,” the person said.The response to the fire has pulled in multiple parts of the British state — although multiple government officials said a possible COBR crisis meeting to deal with the fallout of the shutdown was no longer expected. Ministers had been expecting to wargame how to handle the logistical pain if the airport continued its shutdown into the weekend, as well as related security concerns.“There are questions to answer on how this has happened and what can be done to prevent the scale of disruption we’ve seen from happening again, once the situation is under control,” a spokesperson for Keir Starmer said.Energy Secretary Ed Miliband has held talks with National Grid, which focuses on electricity transmission and distribution in the U.K.“There’s obviously been a catastrophic fire at this substation, an unprecedented event actually in their experience,” Miliband told the BBC on Friday morning. “It appears to have knocked out a back-up generator as well as the substation itself. What I know is that they are working as hard as they can to restore power as well as the fire being put out.”Britain has dealt with similar large-scale air travel disruption before. When the Eyjafjallajökull volcano erupted in Iceland in 2010, the resulting ash cloud caused Europe-wide travel chaos, and prompted emergency meetings involving several government departments.The closure of Heathrow drew the ire of the International Air Transport Association (IATA), an airline lobby, which accused the British hub of being unprepared for the emergency.“This is yet another case of Heathrow letting down both travelers and airlines,” Willie Walsh, IATA’s director general, said in a statement, as he asked how infrastructure “of national and global importance” could be left “totally dependent on a single power source without an alternative.”In a statement, Heathrow said its “un-interruptable” back-up energy systems had worked “as expected” when the fire started, allowing it to “land aircraft and evacuate passengers safely,” but not run a full service.“As the busiest airport in Europe, Heathrow uses as much energy as a small city, therefore it’s not possible to have back-up for all of the energy we need to run our operation safely,” a spokesperson for the airport said.Canceled flights are a blow to airlines, which must help stranded passengers with meals, transfers and accommodations — even if the fire is an extraordinary circumstance that exempts them from compensating travelers.But, according to Olivier Jankovec, director general of the airport lobby ACI Europe, “the operational impact on other European airports resulting from the temporary closure of Heathrow tends to be limited, with the resulting surplus of traffic volumes being thus far smoothly absorbed.”The disruption — especially if it goes on for days — could also have “far-reaching impacts” for international trade, according to Marco Forgione, director general of the Chartered Institute of Export and International Trade, who pointed out that Heathrow is the “U.K.’s largest freight hub by value.”“Essential goods due to be delivered and leave will now face days of disruption, and because it’s air freight a lot of the goods are time sensitive. Even once flights recommence planes, crew and products will all be in the wrong place,” he added. Ben Farrell, CEO of the Chartered Institute of Procurement and Supply said the disruption would take “days, if not weeks to unpick and leave goods, crew and planes out of sync.”“Supply chains work on a just-in-time basis and the whole operation is meticulously planned to ensure goods enter and exit the country in a timely fashion,” he added.Despite the disruption, Josh Fenton, a policy manager at Logistics UK, a business group, insisted the logistics industry was “flexible and adaptable and there will already be plans in place to reroute deliveries in the short term via other European airports and ports onto road to maintain supplies.”Seb Starcevic, Emilio Casalicchio and Karl Mathiesen contributed to this report.This story has been updated.Brussels’ zero-for-zero tariff offer not enough, U.S. president says, but indicates he’s open to a deal if the bloc commits to closing the trade deficit in goods.Europe’s busiest airport will remain closed all day after a fire at an electrical substation led to a power cut.Asked what concessions may be discussed in the call, the American president said: “We will be talking about land. We will be talking about power plants.”Kremlin confirms that Steve Witkoff met Russian President Vladimir Putin on Thursday night, as the sides work toward a presidential summit. "
mobility,London’s Heathrow airport shut on Friday due to nearby fire,https://www.politico.eu/article/uk-londons-heathrow-airport-shut-on-friday-due-to-nearby-fire/,"
				Europe’s busiest airport will remain closed all day after a fire at an electrical substation led to a power cut.			AI generated Text-to-speechLondon's Heathrow Airport will be closed for the entirety of Friday after a fire at a nearby electrical substation cut power to the area.Heathrow, which is Europe's busiest airport, advised passengers not to travel to the airport and to contact airlines for further instructions.""Due to a fire at an electrical substation supplying the airport, Heathrow is experiencing a significant power outage. To maintain the safety of our passengers and colleagues, Heathrow will be closed until 23h59 on 21 March,"" the airport said in a post on social media.The London Fire Brigade said in a statement that around 70 firefighters were working to douse the fire at the substation in Hayes, which is less than 5 kilometers from Heathrow. Around 150 people have been evacuated from the surrounding area and a 200-meter cordon established.""This is a highly visible and significant incident,"" said Assistant Commissioner Patrick Goulbourne in a statement. ""This will be a prolonged incident, with crews remaining on scene throughout the night. As we head into the morning, disruption is expected to increase, and we urge people to avoid the area wherever possible.""Brussels’ zero-for-zero tariff offer not enough, U.S. president says, but indicates he’s open to a deal if the bloc commits to closing the trade deficit in goods.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. Asked what concessions may be discussed in the call, the American president said: “We will be talking about land. We will be talking about power plants.”Kremlin confirms that Steve Witkoff met Russian President Vladimir Putin on Thursday night, as the sides work toward a presidential summit. "
mobility,EU rifts open even before Trump trade war gets rolling,https://www.politico.eu/article/europe-cracks-donald-trump-trade-war-tariffs/,"
				An early show of European unity is being tested as capitals seek cover from U.S. president’s tariff onslaught. 			AI generated Text-to-speechBRUSSELS — In the end, it’s always about the booze.Europe's trade war with Washington has barely started, but some EU leaders are already dropping their weapons and fleeing the battlefield in a bid to escape Donald Trump’s tariff onslaught against their exporters. In the week since the EU executive announced it would retaliate against the U.S. president’s steel and aluminum duties, the leaders of France, Italy and Ireland have publicly criticized its strategy, which includes reinstating tariffs on bourbon whiskey that date back to 2018 from the start of April. In a one-two punch, Ursula von der Leyen’s European Commission wants to add a second round of tariffs worth €18 billion on U.S. exports by April 13. Trump has been quick to escalate, threatening to slap an eye-watering 200 percent tariff on all wines, champagne and alcoholic products coming from the EU.  Italy’s Prime Minister Giorgia Meloni is now warning against a “vicious circle” of trade escalation. Her French counterpart, François Bayrou, has accused the Commission of “hitting the wrong targets.” And Ireland’s leader Micheál Martin has criticized the executive for resorting to its retaliation playbook from a similar trade fight in Trump’s first term from 2017 to 2021. It’s no coincidence that these countries are exposed to the tariffs Trump has threatened on alcohol: France, Italy, Spain, the Netherlands and Ireland are the EU countries that export the most booze to the U.S.Clearly, the EU’s initial unity on trade is crumbling before it has even agreed on a second, larger tariff package planned for mid-April to respond to Trump’s new (and broader) steel and aluminum tariffs.In his first term, Trump set U.S. tariffs on steel at 25 percent and on aluminum at 10 percent. This time he has fixed both at 25 percent — and has expanded their scope. Brussels calculates the total damage at €26 billion, and wants its retaliation to “mirror” that figure. It is seeking public feedback on a 99-page list spanning food, beverages, household goods and industrial gear. “It was always to be expected that there would be cracks in European unity when it comes to trade, because not all European countries are exposed in the same way to [a] potential trade war or U.S. tariffs,” said Agathe Demarais, a senior policy fellow at the European Council on Foreign Relations. “Every country will be very happy to have retaliatory measures against the U.S. until they realize that they harm their domestic economy. That is going to be the challenge for the EU Commission, to go for the toughest possible measures while keeping everyone on board,” she added. The Commission has been here before. “In trying to be smart about hitting the U.S., not hitting ourselves, we are also making sure that we sort of spread the pain and spread the impact as much as we look to minimize it,” said a senior EU official last week when the Commission unveiled its expanded tariff list.“To be clear, we’re also spreading them across various member states in a very fair manner,” they added. As often when it comes to navigating prickly trade tensions with the likes of China and the United States, the Commission, which calls the shots on behalf of the EU’s 27 countries, is the one waving the big stick, launching investigations and imposing duties. And so it happens, even as their diplomats back the Commission’s retaliation strategy behind closed doors in Brussels, that national leaders sound off — as Meloni did to Italian lawmakers on Tuesday — in an attempt to avoid the wrath of an antagonistic Trump.“There’s the necessity also to have messages that are politically palatable for domestic audiences,” Demarais explained. “Some countries are playing this game masterfully; of the divergence between declarations, which may be for domestic political reasons, and the reality of what is going to happen.” The same dynamic played out last year as trade tensions escalated with Beijing over electric vehicles — and a decade ago over solar panels. Responding to the imposition of EU duties on made-in-China electric vehicles in October, Beijing retaliated against premium European distilled alcohol. Everyone realized that the real target was French cognac, and that China was punishing Paris for nudging the Commission to launch an investigation that found evidence of unfair state aid to Chinese EV-makers.“The French are the most vocal. They’re the most offensive in defending their interests, which is why they get more retaliation. This is a classic example which we’ve also seen with China,” said one EU diplomat, granted anonymity because they were not authorized to speak on the record.Germany, Spain and Belgium, meanwhile, rushed to send high-level officials to Beijing to showcase their friendly ties with China. They often returned home touting symbolic concessions from President Xi Jinping — on visas, for example, or pork. “It’s a classic case of defending your economic interests,” a second diplomat observed. Giovanna Coi contributed reporting.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Belgian public transport companies quit Elon Musk’s X,https://www.politico.eu/article/elon-musk-twitter-belgian-public-transport-companies-quit-x/,"
				Get your service delay info somewhere else! 			Take that, Elon Musk! Belgian railways, Brussels metro STIB and Flemish bus company De Lijn quit social media platform X, the companies announced Wednesday.""We are leaving X. This communication tool no longer aligns with the values upheld by #SNCB,"" said NMBS/SNCB in its last post on X.The other companies did not provide a reason for their departure.X, formerly Twitter, is owned by tech billionaire Musk. He has been criticized for publicly endorsing European far-right parties, and he serves as key adviser to U.S. President Donald Trump.Belgian far-right party Vlaams Belang condemned the decision. Flemish parliamentarian Chris Janssens of Vlaams Belang said that the move ""cannot be seen in isolation from the figure of Elon Musk.""""Banning communication channels because the owner is not to their liking is not good governance,"" said Janssens.Musk's X has also been under investigation by the European Commission over its compliance with the bloc's flagship content moderation law, the Digital Services Act (DSA).Under Trump, Musk is heading the so-called Department of Government Efficiency (DOGE), which has slashed federal agencies and cut international aid.Walloon public bus company TEC last week announced its departure from X. ""The TEC on X, that's over,"" TEC posted.The decision of Belgian transport companies follows a wider trend of news outlets and nongovernmental organizations leaving X.All of the companies have accounts on Facebook, Instagram and LinkedIn. STIB also has an account on TikTok.World continues to get hotter. Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.The European Commission also recently unveiled its own preparedness strategy for citizens, while Russia’s war on Ukraine grinds forward. Critics say the bill would discredit NGOs that receive any kind of foreign funding."
mobility,"After the North Sea tanker crash, a multi-million dollar battle over who’s to blame",https://www.politico.eu/article/north-sea-oil-tanker-crash-england-solong-stena-immaculate-pollution/,"
				A week after the tanker crash off the English coast, officials are trying to work out the damage done — and who is going to pick up the bill.			AI generated Text-to-speechGRIMSBY, England — In the lobby bar of the St. James Hotel, glum-looking sailors huddled around cups of tea (or something stronger.) They were reliving the collision that days before had turned their two ships into floating infernos, killed one of their colleagues and led to charges of gross negligence manslaughter for one of the captains.Hovering nearby — and to be found in hotel bars throughout this small port town on England’s north-east coast — were shirt-sleeved company counsels, union lawyers, salvagers and government investigators, all preparing for battle over who should pay for one of the worst maritime accidents in recent British history. At the heart of the matter is why, last Monday, the cargo ship Solong drove smack into the Stena Immaculate, a tanker carrying 220,000 barrels of jet fuel. The American, Russian and Filipino crew were evacuated to Grimsby. Then, not allowed to go home to recover, they spent the rest of last week being interviewed by police and government investigators.That evidence will eventually help settle an insurance claim which could take months or even years to resolve — and could stretch into the hundreds of millions of pounds. In the meantime, the costs of the environmental damage from the collision could also be rising, after new signs of pollution emerged Monday.The investigation embroils three governments and the United States military. The U.K. government’s Marine Accident Investigation Branch (MAIB) is leading, assisted by agencies from the flag states of the two ships, the U.S. and Portugal. The Pentagon is involved because the Stena Immaculate was on a U.S. military mission delivering its cargo to an aviation fuel depot in Yorkshire. The MAIB's initial inquiries showed the Solong “regularly used the route it took on the day of the collision” between the Scottish port of Grangemouth and Rotterdam in the Netherlands. At 1:30 a.m. last Monday, the cargo ship altered course, traveling at 16.4 knots (around 30 kilometres per hour). A little over eight hours later, a camera on board a nearby vessel captured the Solong smashing into the side of the Stena Immaculate. There was a huge flash of light. Investigators said they would look into the “navigational practices on board both vessels; the manning and fatigue management; the condition and maintenance of the vessels involved; and the environmental conditions at the time.”The outcome will be highly significant to the insurers of the vessels. Like most large ships, the Stena Immaculate and Solong are covered by protection and indemnity clubs that pool insurance risk. Neither Steamship Mutual, which insures the Stena Immaculate, nor Skuld, that covers the Solong, would comment on the potential costs of the accident.Salvagers have now boarded the ships to assess the damage. Two experts told POLITICO that, based on photographs, both vessels looked as though they may be damaged beyond repair. Credit rating agency Morningstar DBS said: “Both ships may be considered a total loss.” Including the costs for containing and cleaning up pollution, Morningstar DBS estimated last week the hit to insurers could be between $100 million and $300 million (£77 million and £231 million.)The marine insurance industry could absorb the costs, said the analysts. But they warned it “raises concerns about the profitability” of the sector, coming on top of the Baltimore Bridge disaster last year and ongoing attacks on vessels in the Red Sea and Suez Canal.One of the chambers on the Stena Immaculate, containing 17,515 barrels of jet fuel, exploded on impact, setting fire to both vessels, which then burned for several days before fire crews were able to control the blaze. The U.S. owners of the tanker, Crowley, hailed the “heroic action” of the sailors who, it said, ensured cooling systems were switched on before abandoning ship, possibly saving the rest of the cargo tanks from catching alight.On Saturday, Vladimir Motin, the 59-year-old Russian captain of the Solong, appeared in Hull magistrates court charged with gross negligence manslaughter. He did not enter a plea. The Crown Prosecution Service also released the name of Mark Angelo Pernia, the 38-year-old Filipino sailor on the Solong killed in the collision.Beyond the damage to the vessels themselves and possible compensation for Pernia’s family, it is also not known what the cost of the environmental clean up will be. Crowley said it was “fully committed” to “environmental remediation” — but who ultimately pays for the clean up will depend on who is found to be at fault for the collision. Past MAIB investigations have taken several months, and in some cases years, before findings were published.Motin, who is from St. Petersburg, is due to appear at the Old Bailey criminal court in London on April 14.On Monday, the U.K. coastguard said “a sheen” had been sighted on the ocean surface “that we now know to be plastic nurdles.” Nurdles are pellets of plastic used in the production of plastic products. Some had begun washing up on British shorelines, the coastguard said. They can present a risk to wildlife if eaten.Other debris from the collision may also have begun washing up on local beaches. A bright blue barrel washed ashore at Cleethorpes, just east of Grimsby, on Friday. The coastguard cordoned off the area.The U.K. Maritime and Coastguard Agency said last week that there did “not appear to be any pollution” from either vessel. Analysts from the NGO Skytruth confirmed no slick was evident in satellite images of the vessels — although they also said rough weather could break up any oil spill, making it harder to see.But some on the ground told a different story.Two people with knowledge of the operations to rescue the stricken vessels told POLITICO there had been oil in the water around the vessels. One of them, a salver who would not give his name, said there was oil in the water, but that pollution levels were under control.In an interview on Friday, Chief Executive of the Port of Grimsby East Martyn Boyers said vessels working on the response to the accident had been forced to wash oil from their hulls before entering the port.“When they were putting the fire out, all of the oil around the vessels was still in the water and it hadn't dispersed or anything. So they were sat in it whilst they were trying to put the fire out. Which is some irony because it could have caught fire,” he said. The Grimsby Telegraph first reported the ships had required cleaning.Shortly after POLITICO enquired about this on Friday, the coastguard agency shifted its language. Where earlier in the week there “did not appear to be any pollution,” the statement that afternoon instead said: “There continues to be no cause for concern from pollution.”Unlike thick, heavy crude oil — which can cause devastating pollution, coating marine life in black scum — jet fuel is volatile, meaning most of the fuel may have burned off or evaporated. But it is highly toxic. Reports of fuel in the water were “concerning,” said Shovonlal Roy, an environmental scientist at the University of Reading. Roy said high concentrations of toxic oil could “be very detrimental to microbial organisms” and lead to “cascading effects” through the food chain.“A large amount of toxic jet fuel and chemical dispersants can severely harm the delicate balance of marine life in the region. This will directly affect seabirds, larger marine animals and the fish population, and may trigger fish kills,” he said.The causes of the collision and its impact remain unclear — and those living closest to it want answers.“There's a lot of questions about the whole episode,” said Boyer, the Grimsby port executive. “There's so much sophisticated equipment and gear and satellite navigational aids. How on Earth did it happen?”Jo Shaw contributed reporting from Hull.Europe and Washington will come together at a time when their leaders are radically divided on energy and climate policies.“Clearly we need a bit more time,” says Climate Commissioner Wopke Hoekstra.Downing Street is worried about rising energy bills. Every option for bringing them under control could bring political pain.The European Commission wants to keep a 90 percent emissions-cutting target but to change how countries calculate their progress."
mobility,Trump will make — or break — Europe’s Russia sanctions,https://www.politico.eu/article/donald-trump-europe-russia-moscow-goods-energy-oil-latvia/,"
				Western allies are worried the U.S. president could go either way on decisions that will ripple across the Atlantic.			TEREHOVA, Latvia — Behind the barbed wire fence, over the top of the snow-capped trees, a Russian flag flutters in the wind above what was once a busy crossing point.“This is the last stop on the road to Moscow,” said Raimonds Zukuls, head of Latvia’s customs service, pointing toward the demarcation line. “Before the war, 300 trucks a day used to come through here, taking goods over. Now, because of sanctions, it’s maybe half that.”Yet that traffic might soon start flowing again through the Terehova checkpoint, the main European Union crossing for cargo heading toward the Russian capital. It just depends on Donald Trump. The United States president is facing a cavalcade of decisions that will inevitably determine the EU’s path on Russian goods and energy.For years, parallel U.S. sanctions and access to American energy have buoyed EU efforts to strangle Moscow’s fossil fuel cash flow. U.S. pressure helped check sanctions evasion. American penalties stranded tankers illicitly selling Russian oil. And U.S. gas provided Europe with a reliable alternative after Russia switched off the taps in a bid to weaponize energy flows. That could all change in the coming months — in any number of ways. In a classic knot of contradictions, the current administration has both threatened to bury Russia in more sanctions while also offering to ease penalties in talks over the war in Ukraine. That easing, U.S. officials indicated, would eventually touch on the EU’s penalties. Trump also says he wants to sell Europe more gas — a step the EU says would help it fully quit Russian energy — but those talks are moving slowly.The situation has left Europe, yet again, at Trump’s whim. “U.S. support is vitally important because American sanctions are the most powerful,” said Maria Shagina, a sanctions expert at the International Institute for Strategic Studies. “Without leadership from Washington, it puts Europe in a tough spot — there is now a high concern that the U.S. sanctions will be lifted and European ones won’t be ramped up.”That reality has prompted Latvia — a Russia hawk with fresh memories of Soviet oppression — to make its case directly, and repeatedly, to Trump’s team. Latvian Foreign Minister Baiba Braže has made several recent visits to Washington, where she stressed that the U.S. and EU must work together on Russia.“The United States is a strategic partner and ally of Latvia and the entire EU,” Braže said in an interview, emphasizing the need to be partners in the face of conflict rather than rivals.Trump is already showing his power over EU sanctions.In January, Hungary threatened to veto the regular renewal of the EU’s Russia penalties, citing Trump’s return to the White House. But Trump then unexpectedly threatened to thump Moscow with more restrictions. And U.S. Secretary of State Marco Rubio called Hungarian Foreign Minister Péter Szijjártó, urging him not to derail the bloc's sanctions framework, according to two senior officials granted anonymity by POLITICO to speak freely. Diplomats said the messaging helped convince Budapest to back down, ensuring Russian assets remained frozen and trade embargoes stayed put. The Hungarian foreign ministry did not reply to a request for comment.That incident raised hopes among the EU’s Russia hawks that Trump might actually help their case. Estonian Foreign Minister Margus Tsahkna said he is “pretty convinced that we have an opportunity to put much heavier sanctions because it’s obvious that the U.S. is going to do that as well if Putin is not going to change the goal.”Yet Trump could change tack at any moment, offering to relax sanctions in his bilateral talks with Russia. If that happens, the EU will lose a critical lever in its efforts to rein in the Hungarians. Given the bloc requires unanimity to impose or renew sanctions, that could become a problem. “Theoretically, they could do more, but I’m yet to see agreement across the EU,” said Shagina, the sanctions specialist.Trump holds a similar sway over the EU’s Russian energy policy. Before Trump even entered office, European Commission President Ursula von der Leyen, the EU’s top executive, proposed buying more American liquefied natural gas to replace the bloc’s rising Russian gas purchases. “Why not replace it by American LNG, which is cheaper for us and brings down our energy prices?” she asked in November. But now the EU push to strike that LNG deal with Trump is holding up further EU energy sanctions, as well as fresh plans to fully quit Russian fuel.When the EU adopted its February wartime sanctions on Russia, officials omitted a Russian LNG ban, despite mounting pressure from capitals. The reason was the ongoing Trump talks: The EU didn’t want to propose a formal ban on Moscow’s fuel until it had a gas deal with D.C.Also paused is a long-awaited “roadmap” to ending Russian energy dependence — which officials say will focus on Moscow's gas exports, as well as oil and nuclear technology. Again, the unresolved energy talks with the U.S. are partly to blame. “We are still moving forward with the roadmap, it is being prepared, but the timing has changed in light of the latest geopolitical developments,” one senior Commission official told POLITICO, granted anonymity to discuss the sensitive issue.Trump’s decisions on both the LNG talks and Russian sanctions will help chart the EU’s own energy course.If the U.S. leader goes all in on an LNG deal, it would help unfreeze the EU’s Russian roadmap and may even restart the debate on phasing out Russian LNG. But if the talks lead to nothing — and there appears to have been little progress thus far — it’ll make life much harder for Brussels and EU countries fighting on alone.Latvia hasn’t bought Russian gas since the start of 2024 but still sees value in tighter U.S. energy bonds. The country is “interested in strengthening energy cooperation with our strategic partner, the U.S., including increasing LNG imports,” said Braže, the Latvian foreign minister.Trump's decisions on energy sanctions will be equally impactful.The outgoing Biden administration imposed heavy penalties on the Russian energy industry, including Russia’s shadow fleet — aging tankers that illicitly sell Moscow’s oil worldwide. Those restrictions have left tankers stranded off the coast of countries like China, with ports afraid of punishment for doing business with them. Trump may tighten the screws on Russia’s shadow fleet. And Tsahkna, the Estonian foreign minister, argued that such measures could be part of any transatlantic agreement.Trump could also easily walk away, however. And without American sanctions on those vessels, Europe would struggle to police them alone. Europe also couldn’t enforce Western allies’ $60-per-barrel limit on Russian oil with U.S. support, especially given that the scheme is already faltering.  “The latest U.S. sanctions package was significant, but it’s not the final blow to the Russian economy,” said Shagina. “Trump is right on one thing: Unless the oil price drops below $40 a barrel, the economy will stay resilient — the problem is I have strong doubts that Trump is interested in seriously pressuring Russia economically.”Trump’s ongoing ceasefire talks with Russia will be a determining factor. Already, some Europeans are eyeing a return to Russian energy if there’s a Trump-brokered peace deal, with countries like Hungary and Slovakia intent on buying Moscow's pipeline gas instead of slightly more expensive LNG.With Washington threatening to sideline Europe in the discussions, diplomats from a range of countries are arguing that a strong sanctions policy is the only way to ensure the bloc can get a say in the talks.""We will be invited when we are told to lift the sanctions. The sanctions are our leverage in itself,"" said one EU diplomat who has been involved in the sensitive talks but did not have the authorization to comment publicly.But there’s no EU consensus on when it might relax sanctions, no matter what Trump offers the Russians. Now, Russia's neighbors are saying it's time to lay out red lines.“Sanctions can only be eased or lifted if Russia is able to make amends and pays for the damage it has caused in Ukraine,” said Latvian special envoy for sanctions, Āris Vīgants.Even then, Vīgants warned, the EU can’t just revert to a prewar existence. ""Everyone must understand that returning to business as usual with Russia is impossible,” Vīgants said, “even if some kind of peace deal is reached.""Some European countries are already circling the wagons to try to make sure Russia never again strengthens its hold over the continent.“Russian energy is poisonous — it comes with political manipulation and blackmail,” Lithuanian Foreign Minister Kęstutis Budrys told POLITICO. “The revenues of its sales go directly to funding Russia’s brutalities in Ukraine, but also to various sabotage and disinformation campaigns in our countries.”""I believe that Europe has learned its lessons and won’t walk back into the trap of reliance on Russian energy resources."" The White House is pushing Europe to spend billions more on energy imports. That’s going to be difficult if it blows up the world economy.Brussels should plan for peace with Washington — but prepare for trade war, Prague’s top diplomat told POLITICO.EU officials had hoped to catch Trump’s interest with offers to buy more American gas. Here’s how they hit a wall of bureaucracy and disinterest.In NBC interview, U.S. president threatens to blacklist companies trading with Russia if the Kremlin doesn’t agree to a Ukraine ceasefire."
mobility,German defense giant Rheinmetall overtakes VW in market value,https://www.politico.eu/article/germany-defense-rheinmetall-vw-volkswagen-valuation/,"
				Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.			AI generated Text-to-speechWeapons manufacturer Rheinmetall's market capitalization overtook automotive behemoth Volkswagen Group on Thursday, a sign of  Germany's economic shift from cars to defense.Rheinmetall's market cap — the value of a publicly traded company — stood at €55.7 billion as of 4 p.m., compared to Volkswagen's €54.4 billion.Rheinmetall's value has more than tripled since Donald Trump became U.S. president in January, alongside those of many other big European defense companies, while their U.S.-based rivals have seen their share prices fall on rising concern that Trump's unpredictable policies could harm American arms exports.VW and Rheinmetall are heading in different directions. The arms-maker is benefiting from the surge in European defense spending as the bloc rearms to deter Russia, support Ukraine and ensure its security amid fears that Trump will back away from the continent, while Volkswagen battles headwinds caused by problems in China, Trump's tariffs and a bumpy transition to electric vehicles.Cars powered Germany's post-World War II recovery, making it the EU's economic powerhouse and allowing defense to take a back seat — especially after the end of the Cold War. Now Germany's economy could rely on tanks for growth.""An era of rearmament has begun in Europe that will demand a lot from all of us,"" Rheinmetall CEO Armin Papperger said in a statement Wednesday announcing the company's record earnings. ""It also brings us at Rheinmetall growth prospects for the coming years that we have never experienced before.""In one sign of the transition, Volkswagen is planning to end production at its Osnabrück factory, and Papperger said Wednesday that the plant would be “very suitable” as a potential tank factory.“One thing is clear: Before I build a new tank plant in Germany, we will certainly look at it,” Papperger said.While the automotive sector's problems dominated public discourse in the months leading up to Germany's snap election in February, concerns around security are shifting attention — and funding — toward defense.Incoming German Chancellor Friedrich Merz wants to exempt defense spending from the restraints of the country’s debt brake — a historic change he had previously shied away from.“In view of the threats to our freedom and peace on our continent, whatever it takes must now also apply to our defense,” Merz said when announcing the strategic change.VW Group CEO Oliver Blume acknowledged the shift during a Tuesday earnings briefing.“We need to invest more in order to be safe again,” he said.No specific conversations are taking place, he added, but the company is ready to advise other manufacturers on defense production — a role it previously played.VW produced armored vehicles for the Nazis in World War II. Its trucking  subsidiary MAN Truck & Bus is connected to Rheinmetall through a joint venture to produce logistics vehicles for the military.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP.“The EU must not give up on building a European battery industry,” says senior MEP."
mobility,Europe faces battery catastrophe as Swedish champion goes bust,https://www.politico.eu/article/eu-battery-industry-independence-northvolt-bankruptcy-sweden/,"
				The disappearance of the once high-flying company is “downright disgraceful,” says an MEP.			The European Union wants to develop a homegrown battery industry that can rival China's, but the bloc's best chance for battery independence — Sweden's Northvolt — went bust on Wednesday.Northvolt's downward spiral culminated with it filing for bankruptcy in Sweden, putting a court-appointed trustee in charge of selling off what remains of the company and its assets.""Northvolt’s bankruptcy makes me absolutely furious,"" said Swedish member of the European Parliament Sofie Eriksson. ""Local communities have invested, done their part, and now Northvolt betrays them. The company has been mismanaged to such an extent that it is forced into bankruptcy. It’s downright disgraceful.""The EU has been struggling to build a European battery industry, mindful that batteries are the most valuable component of electric vehicles and their production is dominated by China and other Asian countries. The European Commission created the European Battery Alliance with the goal of grabbing about a third of the global battery market. That hasn't happened.The high-flying company counted Volkswagen and Goldman Sachs as its largest backers after its founding in 2016 by two former Tesla executives. It raised more than €15 billion and launched battery factories in Sweden, Canada and Germany.But its relentless pursuit of growth coupled with lax spending controls led to its downfall.Unable to keep costs from ballooning, production quickly got off schedule and put its contracts with automakers at risk. The first cracks began to show last summer when BMW canceled a €2 billion contract.Northvolt co-founder Peter Carlsson resigned late last year as the company filed for Chapter 11 bankruptcy protection in the United States to look for new investors.A quarter of its workers were laid off last year as part of the restructuring. Attention is now turning to the few thousand who remain. They were told the news on Wednesday morning and given the rest of the day off but are expected to return Thursday morning for their shifts.The news marks a blow to the small northern Swedish town of Skellefteå that is home to roughly 36,000 people and one of Northvolt's biggest factories.""It's sad for the people who work there and for the city, of course. There have been high hopes around this,"" resident Anders Eskilsson told Swedish outlet Dagens Nyheter.Some, like MEP Eriksson, want Sweden's government to step in and rescue the company, but the country's leaders have insisted they have no intention of throwing money at the failing company.Instead, Stockholm called on the EU to step up.Shortly after Northvolt made its Chapter 11 filing, Sweden's Deputy Prime Minister Ebba Busch descended on Brussels to urge the Council of the EU to do more to create a competitive battery industry, telling reporters: “This is not a Swedish issue. This is a European issue.”The Commission, meanwhile, avoided making any commitment while addressing the Competitiveness Council on Wednesday evening.""We want to give support for research,"" industry czar Stéphane Séjourné told ministers after bringing up Northvolt's bankruptcy in his opening remarks.The goal is to ""avoid failures in the short term"" and give funding to younger companies that ""don't have the support yet from the European Commission and the support they need for scaling up,"" he said.Stockholm may not want to save the company, but its politicians are already hunting for who to blame.Mattias Karlsson, chief whip of the liberal-conservative Moderate party, filed a complaint with the country's constitutional committee, alleging that former Prime Minister Magdalena Andersson put pressure on the country's state pension fund to invest in Northvolt while she was the finance minister.""This is not just a financial disaster. It's a political scandal,"" he told POLITICO.Andersson's office was quick to hit back.""The pension funds in Sweden independently take decisions which investments they make. No government, neither now nor in the past, has authority over their decisions,"" her spokesperson said.Although the government never directly invested in Northvolt, the state-owned pension fund put 5.8 billion kronor (€528 million) into the battery-maker. That investment, along with other investments from early backers like Volkswagen, was written off after the company's bankruptcy filing in the U.S. last year.CORRECTION: This article has been updated to correct the political affiliation of  Mattias Karlsson. He is the chief whip of the liberal-conservative Moderate party.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.“The EU must not give up on building a European battery industry,” says senior MEP."
mobility,Europe’s great battery hope Northvolt files for bankruptcy in Sweden,https://www.politico.eu/article/northvolt-files-for-bankruptcy-in-sweden/,"
				“The EU must not give up on building a European battery industry,” says senior MEP.			Swedish battery-maker Northvolt filed for bankruptcy in Sweden today, marking the final unraveling of a company once seen as Europe's standard bearer for the sector.Facing a cash crunch in November, Northvolt filed for Chapter 11 bankruptcy protection in the U.S. as it looked to raise more funds and restructure.""Ultimately, however, with limited time and financial resources available, the company was unable to conclude the necessary agreements to secure its future,"" Northvolt said in a statement.Its demise leaves Europe without a home-grown champion to compete with Chinese battery-makers that dominate the sector and the critical raw material supply chain.At its peak, Northvolt counted Volkswagen and Goldman Sachs as backers and had contracts with multiple automakers, including BMW.""This is obviously very bad news. Mistakes have certainly been made in the company's industrial and economic project,"" said Renew MEP Pascal Canfin. ""The EU must not give up on building a European battery industry.""A Swedish court-appointed trustee will oversee the company's sale and that of its assets. Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,"On the EU’s tariff hit list: American chicken wings, motorbikes and … women’s négligées?",https://www.politico.eu/article/on-the-eus-tariff-hit-list-american-chicken-wings-motorbikes-and-womens-negliges/,"
				The European Commission is seeking feedback on a 99-page hit list and respondents have until March 26 to reply.			BRUSSELS — The European Commission has published a list of U.S. products that could be subject to retaliatory tariffs after the Donald Trump administration on Wednesday imposed 25 percent global tariffs on steel and aluminum.The 99-page list is dominated by meat, poultry, fruit and vegetables and alcoholic beverages — and includes chewing gum, communion wafers, nicotine vapes and patches, and ... women’s négligées.Other items read like an attack on the American way of life — including outdoor wear, tents, workshop tools and household appliances. And then there are heavy-duty items like plant machinery, snowplows and motorcycles.Such lists are typically designed to cause economic pain in the home states of Republican lawmakers who could influence Trump to abandon his trade war. Usually straight-laced trade bureaucrats will admit if pressed that compiling them is the most fun part of their job.Earlier on Wednesday, the Commission announced a two-stage retaliation covering €26 billion in EU exports that far exceeded a trade fight that blew up in Trump’s first term.Absent a negotiated settlement it will, from April 1, reimpose measures in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member countries.The EU executive has launched a survey seeking the views of those affected by the U.S. tariffs, setting a deadline for submissions of March 26.European Union joins China, Japan, Taiwan and Korea in U.S. President Donald Trump’s trade sin bin.The first meeting since a bombshell call between Donald Trump and Vladimir Putin puts joint hydrocarbons projects back on the agenda — as Ukraine watches from the sidelines. German automakers would face increased costs while already under pressure from heightened competition.How do tariffs actually work? How far will this conflict escalate? Can Europe escape? We answer all your burning questions. "
mobility,EU wields ‘sledgehammer’ against Trump tariffs,https://www.politico.eu/article/eu-tariffs-donald-trump-diplomat-eu-war-defending-nation-bloc/,"
				Brussels strikes back against the U.S. president’s 25 percent levies on steel and aluminum.  			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — The European Union hit back hard as U.S. President Donald Trump imposed 25 percent global steel and aluminum tariffs on Wednesday, announcing a two-stage retaliation covering €26 billion in U.S. exports that far exceeded a trade fight that blew up in his first term.The European Commission said it would, from April 1, reimpose tariffs in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member states.“We deeply regret this measure,” European Commission President Ursula von der Leyen said in an early-morning statement.“Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business.”Speaking before the announcement, one European steel industry representative said that Brussels would “go full sledgehammer because they are so fed up with Trump.”The 27-nation bloc — a common market spanning 450 million people — wants to send an unmistakable message that the EU is serious about defending its economic interests should Trump launch a full-scale trade war.The $1.7 trillion transatlantic trade relationship has been pivotal to the West’s postwar prosperity. But Trump, angered by the persistent U.S. trade deficit in goods, sees tariffs as a way to force businesses to bring industrial investment and jobs back to the United States. The U.S. levies on steel and aluminum would hit Canada and Mexico the hardest — but the EU, as the No. 3 supplier of steel to America, would not survive unscathed. Brussels worries that further “reciprocal” tariffs threatened by Trump would, if implemented, hit exports of automobiles, pharmaceuticals and food.The Commission left the door open to a deal with Trump, saying it “remains ready to work with the U.S. administration to find a negotiated solution” and adding that its measures “can be reversed at any time should such a solution be found.”That cut no ice with U.S. Trade Representative Jamieson Greer. “The EU’s punitive action completely disregards the national security imperatives of the United States — and indeed international security — and is yet another indicator that the EU’s trade and economic policies are out of step with reality,” Greer said in a statement.The European Commission, the bloc’s executive, will brief member countries at breakfast time on Wednesday — just a few hours after the U.S. tariffs kicked in at one minute past midnight in Washington, or 5.01 a.m. Brussels time.In the weeks since Trump returned to the White House and started announcing tariffs, the EU has been vocal about being ready to hit back against “unjustified tariffs.” On Monday, Trade Commissioner Maroš Šefčovič said the bloc is ready “to protect its businesses, workers and consumers.”“We can’t rely on the U.S. anymore — it’s a new reality. So we have to be tough hitting back, that’s the only medicine,” one EU diplomat said.Šefčovič visited Washington last month in an attempt to initiate a dialogue on averting a trade war, only to conclude that the Trump administration was not interested. “In the end, one hand cannot clap,” he said on Monday.The United Kingdom, meanwhile, is keeping a low profile. “We’re not going to have a kneejerk reaction,” said an official from the Department for Business and Trade, pointing out that No. 10 is emphasizing the U.K. will “continue to take a cool-headed approach” to tariffs and to Trump’s antagonistic trade policy.EU diplomats, along with the steel industry representative, had expected the EU’s response package to pack more of a wallop than the suspended tariffs dating back to 2018.That’s because the Trump administration — based on his executive orders from mid-February — has changed its tariff practices substantially. Most importantly, aluminum will rise to 25 percent from 10 percent the last time.The EU will also no longer enjoy the quotas extended under the former administration of President Joe Biden, which allowed it to export tariff-free to the U.S. Meanwhile, Trump is adding products made mostly with steel — such as bolts and radiators — to the list of goods subject to tariffs.Camille Gijs, Jakob Weizman, Graham Lanktree, Doug Palmer and Giovanna Coi contributed reporting. This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
mobility,North Sea oil tanker collision: What do we know?,https://www.politico.eu/article/north-sea-oil-tanker-collision-what-we-know/,"
				A crew member is missing and the cargo ship that crashed into a tanker is still on fire. Police are questioning a man in his 50s. 			AI generated Text-to-speechLONDON — A 59 year-old man has been arrested on suspicion of  “gross negligence manslaughter” after two ships crashed in the North Sea, 56 kilometers off the British coast, local police said. U.K. and international authorities are facing urgent questions about what went wrong and how bad the impact could be. Could there be an ecological calamity on Britain’s eastern beaches? And why did the two ships collide? Here is what we know so far: The Stena Immaculate, a U.S.-flagged tanker carrying 220,000 barrels of jet fuel, reportedly for the American military, was struck while anchored offshore on Monday morning by the Solong, a cargo ship sailing under a Portuguese flag. The crews abandoned their vessels and all but one of 37 were saved as nearby ships and coast guard scrambled to the scene. One crew member from the Solong is missing and is presumed dead. Firefighters gained control of a fire on the Stena Immaculate on Tuesday, while the Solong remained ablaze. In a statement to parliament, Under-Secretary of State for Transport Michael Kane said he feared it was “unlikely” the Solong would remain afloat, but later the government suggested the vessel was no longer expected to sink. Investigators are now working to discover how the collision occurred. Kane, the junior transport minister, said there was no evidence to suggest foul play, even though enquiries into the cause of the crash have only just begun.The Stena was anchored at the time of the collision, leading to questions as to whether the tanker was incorrectly moored in a shipping lane or whether the cargo ship had been on the wrong course, said David Slater, a professor with the school of engineering at Cardiff University.But the government gave no initial assessment. “Something did go terribly wrong,” Kane said.The U.S. Coast Guard confirmed to POLITICO that investigators will be arriving in Britain “to conduct the investigation over the coming days.”Humberside Police announced on Tuesday they had arrested a 59-year-old man “on suspicion of gross negligence manslaughter in connection with the collision.” Senior investigating officer Detective Chief Superintendent Craig Nicholson said: “The man arrested remains in custody at this time whilst inquiries are under way and we continue speaking with all those involved to establish the full circumstances of the incident.”The destruction of the Stena disrupts a key U.S. military refueling plan at a time of heightened global tensions. The Stena was one of 10 tankers in the Tanker Security Program, a fleet designed to provide a back-up fuel supply to U.S. defense forces in times of emergency.  Authorities said it was too early to say whether the collision could cause a major environmental disaster. The northeastern coastline of England houses marine protected areas, important fisheries and seabird colonies.Kane, the U.K. minister, said the priority was to extinguish the fires on the vessels involved. On Tuesday the burning Solong had broken free of the anchored Stena and was drifting. Two tugboats were alongside the stricken ship, ensuring it moved no closer to shore.Once the situation is stabilized, Kane said, the authorities will assess the risks. “Counter-pollution measures and assets are already in place, and both vessels are being closely monitored for structural integrity,” he said.Experts said the jet fuel on board the Stena was extremely toxic to marine life and highly volatile, meaning its lifespan in the environment would be shorter than heavier forms of oil such as crude. Anti-pollution crews will use foam to mop the oil from the sea.Jet fuel “has minimal environmental impacts when it leaks, because it will either ignite and burn, or evaporate,” said Andy Teasdale, a marine safety advisor to the Institute of Marine Science, Engineering and Technology.  However, jet fuel is “50 times more toxic to aquatic life than diesel oil, which in turn is more toxic than crude oil,” said Alastair Grant, emeritus professor of ecology at the University of East Anglia.This means that “it will have an acute effect on organisms in the immediate aftermath of the spill and [will] lead to various degrees of stress in exposed animals,” said Heriot-Watt University marine ecotoxicologist Mark Hartl.Moreover, Teasdale said, it was still unknown what fuel both ships were carrying to power their own engines. “If the vessel sinks or tanks are breached, then the bunkered fuel may leak out and start to produce pollution,” he said. Kane said the government had yet to confirm reports that the Solong was carrying 15 containers of highly toxic sodium cyanide. The German owner of the Solong, Ernst Russ AG, said the containers had been emptied.If the chemical was released into the environment, experts said, it would also be relatively short-lived but could release poisonous gases into the air.Authorities said the air quality in the immediate area was normal, while the U.K. Health Security Agency said on Tuesday that the risk to public health onshore was “very low.”This story has been updated. Noah Keate contributed reporting.Europe and Washington will come together at a time when their leaders are radically divided on energy and climate policies.“Clearly we need a bit more time,” says Climate Commissioner Wopke Hoekstra.Downing Street is worried about rising energy bills. Every option for bringing them under control could bring political pain.The European Commission wants to keep a 90 percent emissions-cutting target but to change how countries calculate their progress."
mobility,New air traffic technology can make European skies more sustainable and competitive,https://www.politico.eu/sponsored-content/new-air-traffic-technology-can-make-european-skies-more-sustainable-and-competitive/,"The above column is sponsor-generated content. To learn more about our advertising solutions, click here."
mobility,The EU ban on combustion car engines is in trouble,https://www.politico.eu/article/why-eu-combustion-car-ban-is-in-trouble-greenhouse-gas-climate-change/,"
				Brussels caved to the auto sector’s pleas for leniency on emissions targets, giving lobbyists and politicians an opening to push for more. 			AI generated Text-to-speech
				This article is also available in: French			DOUAI, France — The EU's vision of ending sales of greenhouse-gas-spewing cars by 2035 is under fire.The idea was a key priority of the previous European Commission, which was dedicated to the fight against climate change. But war, a populist backlash, economic stagnation and a car industry hemorrhaging red ink are forcing Brussels to backtrack.Europe’s automakers scored a massive political win this week when Commission President Ursula von der Leyen gave in to their pleas for leniency on emission targets that went into force this year and for an earlier review of the 2035 legislation as part of her plan to rescue the troubled car industry.Buoyed by that success, automakers and their political backers want more.""Give the car industry an inch and they'll take a mile. Before the ink was dry on the automotive plan, there were calls for technology openness,” said Julia Poliscanova, senior director for vehicles at green NGO Transport & Environment. “The Green Deal will suffer a death by a thousand cuts unless lawmakers stand up for it.”While the original measure was approved in 2023 by all member countries (despite last-minute resistance from Germany), it's turned into a political punching bag.Over the last year, elections across the EU saw national governments, lobbyists and automakers pick up the call to weaken or reverse it.The European People’s Party — part of von der Leyen’s political family and the largest grouping in the European Parliament — promised to reverse the law.In Germany, angst over the auto sector’s decline helped fuel the winning  campaign of Christian Democrat Friedrich Merz, whose party also has its sights set on undoing the legislation. Germany is keen for an exception for e-fuels — a synthetic alternative to gasoline, but one that is much more expensive than fossil fuels and not made in large quantities.Italy wants the law changed to make an exception for biofuels, despite worries about deforestation, biodiversity loss and soil erosion from using the fuel. Poland also backs that idea.French policymakers — including Commission Vice President Stéphane Séjourné — went on a victory lap to a Renault factory on Wednesday.They were celebrating the Commission announcement that it would water down this year's emissions targets after carmakers complained they could pay billions in fines for missing the target. Now, instead of the target being based on this year’s sales, it’ll be based on a three-year average, which makes it easier to hit for companies that have done less to clean up their fleets.“I have probably been the first one to raise the hand on this,” Renault CEO Luca De Meo told POLITICO at the Renault factory at Douai in northern France. As former president of EU car lobby ACEA, De Meo beat the drum for leniency on emission targets.De Meo also welcomed the Commission’s support for technological neutrality — meaning that not only battery-powered cars can meet green targets — although he insisted he doesn't want to scrap the 2035 measure.  “It opens a window on a logic that we have always supported. Tell us where you want us to go, but don’t tell us how,” he said, noting that “the enemy is not a technology rather than another — the enemy is CO2.”Yet, not every automaker was in a celebratory mood. Swedish brand Volvo, which was bought by Chinese firm Geely in 2010, wanted the targets to remain the same.“Those that have done their homework, should not be disadvantaged by last-minute changes to existing legislation, not least during the year in which they come into effect,” the company said in a statement.Paris still defends the combustion engine ban but insists that softening this year's emission targets will help carmakers to meet the 2035 deadline. “It was paradoxical to ask manufacturers to pay fines and at the same time to support them,” Séjourné said in Douai.The Commission also agreed to move up a review of the 2035 law from 2026 to this year — another key demand from carmakers that makes it easier to undermine the overall legislation.Opponents smell blood in the water.""We have forced the Commission to remove the fines trap and to anticipate the review of the CO2 regulation. Now we must immediately make a common front to overcome the madness of the Green Deal,” Italy’s Industry Minister Adolfo Urso said in a written statement.Czech MEP Filip Turek with the far-right Patriots for Europe grouping, said that Commission's automotive plan marks the beginning of the end for the 2035 ban.Germany’s newly elected Christian Democrats called the Commission's announcement “half-hearted and unsatisfactory.”“I am convinced that the greatest threat to the European automotive market is no longer competitors from China, but the flood of European regulation,” said Thomas Bareiß, grouping's transport spokesperson in the German Bundestag. “The emission targets could have been cancelled completely; so far nobody has been able to explain to me conclusively why we need emission targets at all for successful climate protection.”Maintaining the ban, he said, is creating uncertainty in the market and delaying the uptake of alternative fuels. Bareiß and other opponents of the 2035 legislation are latching on to technological neutrality to further weaken the law, which some automakers and political groups say should allow hybrids and other types of vehicles that combine combustion engines and batteries.Hildegard Müller, president of German car lobby VDA, said more needs to be done to “implement technological openness. This also includes giving greater consideration to the role of plug-in hybrids beyond 2035.”Climate groups say that hybrids still emit CO2, violating the 2035 law.The law's defenders are fighting a rear-guard battle to keep the legislation from being so watered down that it becomes useless.“The EU Commission is opening Pandora's box, because the EPP wants to do more than just turn a few screws, it wants to completely overturn the combustion engine ban,” said Green MEP Michael Bloss.Socialist MEP François Kalfon approved the EU auto rescue package but fears the Commission’s review might turn into an effort to kill the 2035 ban.“It has to be a review clause, not a dropout clause, and that’s the risk,” he told POLITICO on a train back from the Renault factory.Gabriel Gavin and Nicolas Camut contributed to this report.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,Oil tanker collides with cargo ship in North Sea,https://www.politico.eu/article/oil-tanker-collides-with-cargo-ship-in-north-sea/,"
				Emergency services have dispatched firefighting teams to the scene, off the coast of Britain.			Two ships, including an oil tanker, have collided in the North Sea off the coast of the United Kingdom, triggering a major rescue operation and sparking fears for the environment.The British coastguard confirmed that reports of a crash had been received at 9:48 a.m. on Monday morning.""HM Coastguard is currently co-ordinating the emergency response to reports of a collision between a tanker and cargo vessel off the coast of East Yorkshire,"" the coastguard's statement said.""A coastguard rescue helicopter from Humberside was called, alongside lifeboats ... an HM Coastguard fixed-wing aircraft, and nearby vessels with firefighting capability. The incident remains ongoing.""Two sources who spoke to the BBC reported that the oil tanker was on fire. These reports could not immediately be verified.British Transport Secretary Heidi Alexander said she was liaising with officials and the coastguard and thanked all emergency service workers involved. Prime Minister Keir Starmer's spokesperson said it was an ""extremely concerning situation"" and they are helping monitor the response.Local media has reported the oil tanker involved is the Stena Immaculate, a U.S.-flagged ship that, according to data platform Kpler, was carrying almost 50,000 barrels of fuel to the port of Immingham.Britain's Yorkshire coast is home to a large  number of oil terminals, processing shipments of foreign crude destined to be refined into petrol and other fuels.In 1989, a collision between two oil tankers just off the coast of Hull saw both vessels catch fire and almost 100,000 metric tons of crude at risk of washing onshore, where it would wreak havoc on marine life. However, strong currents washed the slick away from land.This story has been updated. Noah Keate contributed reporting.The White House is pushing Europe to spend billions more on energy imports. That’s going to be difficult if it blows up the world economy.Brussels should plan for peace with Washington — but prepare for trade war, Prague’s top diplomat told POLITICO.EU officials had hoped to catch Trump’s interest with offers to buy more American gas. Here’s how they hit a wall of bureaucracy and disinterest.In NBC interview, U.S. president threatens to blacklist companies trading with Russia if the Kremlin doesn’t agree to a Ukraine ceasefire."
mobility,Trump tariff war would hurt Boeing more than Airbus,https://www.politico.eu/article/us-donald-trump-tariff-war-hurt-boeing-more-airbus/,"
				The U.S. plane-maker could be the “biggest victim” of a tariff war.			AI generated Text-to-speechBRUSSELS — Donald Trump's tariff wars are supposed to herald a new American dream but  they could become a nightmare for Boeing, which is in danger of suffering more than its rival Airbus.On Tuesday, Washington hit imports from Canada and Mexico with a 25 percent tariff, as well as a 20 percent fee on goods from China — the three largest United States trading partners. They are retaliating with countermeasures. The White House quickly backtracked on cars and subsequently delayed tariffs on all other goods from Canada and Mexico that comply with the duty-free terms of the U.S.-Mexico-Canada Agreement, but many of the tariffs are still in place.The aviation sector, which relies heavily on international supply chains, will be hurt, but Boeing will have a harder time passing on any price increases than Airbus, and also risks losing out in the fast-growing Chinese market.“Boeing is likely to absorb these additional material costs, leading to higher production expenses and reduced profit margins per aircraft,” said Wouter Dewulf, an air transport economist at the University of Antwerp. The tariffs add to Boeing's growing list of troubles, including safety problems and strikes that saw the company to lose nearly $1 billion a month in 2024.Even worse for the plane-makers, Trump has announced a plan to impose a 25 percent tariff on goods from the European Union, which he says was formed “to screw the United States.”He has also threatened to set tariffs on aluminum and steel — crucial aircraft components.Brussels responded that it's ready to hit back with its so-called trade bazooka, a cocktail of quotas and tariffs or restrictions on foreign investment.Such a development would trigger “a far more significant impact,” Dewulf said. “If the Trump administration imposes a 10 percent to 25 percent tariff on imported aircraft … this could drive Airbus’ prices up substantially,” he said.But “in response, Europe would likely retaliate, making Boeing aircraft even more expensive in key markets like Europe.”Airbus would also be partially sheltered from tariffs because it has facilities in Alabama, Mississippi and Florida; Boeing does not manufacture in the EU.In the last week, Boeing's share price has fallen by 6.5 percent, while Airbus' has risen by 3 percent.The U.S. aviation sector is warning the White House about the tariff impact.“Decades-long trade agreements enabled robust civil aviation and defense trade that resulted in a sky-rocketing positive trade balance over the last 40 years, making aerospace and defense the largest American exporting industry,” said Dak Hardwick, vice president of international affairs at the U.S. Aerospace Industries Association.“Tariffs on Canada and Mexico could change that positive trajectory,” he added.The General Aviation Manufacturers Association, a lobby representing the private jet industry, also criticized the trade war, saying: “Tariffs would affect the intricate and very complex global supply chain that can take years to establish given that it relies on suppliers with unique capabilities that are highly regulated and therefore cannot be easily replaced.”Aerospace expert Jerrold Lundquist raised the same issues, noting that “a Boeing 737 has about 2,000 parts coming from 700 separate suppliers.”Aircraft parts “frequently pass international borders more than once,” Lundquist added, noting that “this makes assigning a value to be tariffed very difficult,” and that process could cost extra time and money.Adding to the tariff uncertainty is the impact on sales in the fast-growing Chinese market.""The biggest victim will likely be Boeing … especially since China’s four largest airlines, all majority-owned by various levels of the Chinese government, will likely shift their focus to domestically produced aircraft (COMAC) and Airbus,"" Dewulf said.“I don’t see China increasing its Boeing purchases in the near future either. This situation could present an opportunity for Airbus to expand its market share in China, particularly in the wide-body segment with aircraft like the A330 and A350,” he added.Asked about the impact of potential Trump tariffs, Airbus CEO Guillaume Faury said in February that his firm may prioritize deliveries to non-U.S. customers. “As part of our standard risk management, we continuously assess how to best allocate production and deliveries in response to changing market conditions,” an Airbus spokesperson said after the tariffs went into effect.Boeing did not respond to a request for comment.It's not just Boeing and Airbus that could be harmed by a trade war between the EU and the U.S.  “It is clear that the most prominent victim in Europe will be Ryanair, who will receive about 30 additional Boeing 737 MAX aircraft in the coming months and next year,” Dewulf said, estimating that the carrier would face about €500 million in import fees.Poland's LOT, Germany's Lufthansa and discount carrier TUI also have orders for Boeing aircraft, but are less reliant on the American plane-maker than Ryanair.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”Air traffic controllers are joining a national strike to protest Belgium’s budget reform."
mobility,"Parliament to probe EU grants to Shell, VW and migrant NGOs",https://www.politico.eu/article/european-parliament-probe-grants-shell-volkswagen-migrant-ngos/,"
				A fight over how the Commission spends its cash expands to 28 NGOs and business giants.			AI generated Text-to-speechEuropean lawmakers have significantly widened the list of EU grant contracts they want to probe, turning what began as a targeted fight over funding for green NGOs into an open battle between left- and right-wing forces in the European Parliament.According to a letter addressed on Wednesday to Commissioner for Budget Piotr Serafin, obtained by POLITICO, political groups in the Parliament’s Committee on Budgetary Control now want to examine 28 Commission grant contracts to a broad range of recipients.They include contracts with the International Rescue Committee and NGOs working for the inclusion of LGBTQI+ migrants, at the request of center-right and right-wing groups; and with business giants Shell and Volkswagen and trade association BusinessEurope, at the request of left-wing groups. The list includes agreements signed between 2019 and 2024 and totaling €58.2 million, according to data retrieved by POLITICO. The letter is the latest step in a fight brewing in the budget committee over when the Commission should provide organizations with EU cash.It began when the center-right European People’s Party’s claimed the Commission had paid NGOs to lobby the Parliament in favor of the Green Deal, through the so-called LIFE funding program. The Commission later revised its contracts with the NGOs concerned.After the EPP requested that grants awarded to Transparency International and other green NGOs be reviewed, left-wing groups demanded that contracts awarded to businesses be vetted as well. Specifically, the MEPs asked to see contracts pertaining to: the Asylum, Migration and Integration Fund; the justice program of the Commission’s justice department, DG JUST; the LIFE program; support for information measures relating to the Common Agricultural Policy and contracts managed by the Commission’s agriculture department, DG AGRI; the Internal Security Fund Police program; and the Rights, Equality and Citizenship Program, as well as the Citizens, Equality, Rights and Values Program, both managed by the Commission’s home affairs department, DG HOME. They also targeted the CONNEcting Cities Towards Integration actiON project, the Integrated Projects of the European Social Dialogue, the contract of the Alternative Fuels Infrastructure Facility, and the Mobilities for EU project.The private companies and industry associations concerned include: Shell, Volkswagen, Ramboll Consulting, Ricardo Nederland, BayWa Solar Projects, BusinessEurope, the North European Oil Trade Oy, PlantPress, and AgroTV.Dolors Montserrat as the new secretary-general is a surprising choice, say critical party insiders.Schmoozing with the far right will get us nowhere, leading MEP tells peers.The outcome of a key vote on environmental laws in the Parliament this week could set the stage for the next five years.Loyalty to the political family earns MEPs rewards and influence."
mobility,"Covid lockdowns, 5 years on",https://www.politico.eu/article/europes-lockdowns-five-years-on/,"
				Former Milan city councilor Pierfrancesco Maran reflects on how the pandemic transformed European cities — a topic no one wants to talk about.			In the early morning hours of March 8, 2020, the lives of Milan's more than 1 million residents were radically upended.Just three weeks earlier, a 38-year-old man had become the first resident of Italy's northern Lombardy region to test positive for Covid-19. And after more locals developed symptoms, authorities placed a handful of towns under quarantine, with red zones declared to keep residents from spreading the mysterious new respiratory virus.During those first days of the crisis, few thought that Milan, the country's economic powerhouse, would ever face similar restrictions. But the unthinkable became inevitable as the number of confirmed cases spiked, and on that Sunday in March, then-Prime Minister Giuseppe Conte held an emergency press conference to announce that Italy's second-largest city was locked down.It was the beginning of an extraordinary period that would see Milan be transformed by measures that would ultimately endure far beyond the crisis.Pierfrancesco Maran — at the time a municipal councilor in charge of the city's powerful urbanism portfolio — recalls feeling shocked when he heard the decision.""It all seemed incredible,"" Maran, now a lawmaker in the European Parliament, told Living Cities in an interview. ""We couldn't believe that such dramatic measures were being adopted."" Leading up to lockdown, Milan was experiencing a ""fantastic moment"" in its history, Maran explained, with the city's fortunes trending up since hosting the 2015 World Expo. Its shift from industrial capital to a global hub of innovation, tourism and prosperity was finally being consolidated.""As a city councilor, it was difficult for me to accept the that the lockdown was the only way forward,"" he said. ""But it was also clear that all other attempts to contain the pandemic weren't working."" Milan's lockdown was the first to affect a major European city. But within days, the rest of the continent's metropolitan regions would find themselves under similar conditions.The entirety of Italy was declared a red zone just 48 hours after the harsh restrictions were imposed on the capital of Lombardy. Countries like Spain, Belgium and France would follow suit just days later, and by the end of the month, every European country — and, indeed, much of the world — had quarantine rules in place.Maran said that by virtue of being one of the first cities to be subject to a lockdown, Milan was among the first to start working on ""a gradual, post-pandemic reopening"" — an ambitious plan that reimagined the urban landscape to prioritize access to public spaces.""Our strategy had the reconquest of public space at its core,"" he explained, emphasizing that the outdoors was ""the safest space from the point of view of contagion."" But, he added, the city's approach aimed to make the most of the ""extraordinary opportunity"" provided by a lockdown that was, at the time, keeping everyone at home.""That made it possible to do things that would have otherwise been very difficult, if not impossible,"" he said. ""We created cycle paths on the main city arteries to manage the reduced capacity of public transport, promoted smart working, and substantially liberalized the possibility for bars and restaurants to place tables outside.""The city's tactical Strade Aperte urbanism plan capped speed limits on roads at 30 kilometers per hour, widened sidewalks, and saw the installation of low-cost temporary cycle lanes throughout the city. And Milan's approach to la nuova normalità — ""the new normal"" — quickly became an example for other cities across Europe.In Brussels, authorities similarly rolled out temporary cycling infrastructure and set 20 kilometer per hour speed limits within the Pentagon zone — the area encircled by the city's inner ring road — where pedestrians and bikers were given priority. Meanwhile, Paris Mayor Anne Hidalgo moved to make pandemic terraces permanent and put French-Colombian academic Carlos Moreno’s 15-minute city model at the heart of her successful reelection campaign.The impact of these Milan-inspired measures were far-reaching, with air quality improving in urban areas throughout Europe. They were also enthusiastically embraced by city dwellers, who overwhelmingly supported making many of the temporary changes permanent.Today, five years after the crisis began, Maran said he's proud to see so many of ""the most drastic changes adopted during the pandemic now consolidated as integral elements"" in cities that are no longer threatened by Covid-19.The temporary cycle paths installed during Milan's lockdown have blossomed into over 100 kilometers of new bike lanes, and smart working schemes have become standard in the countless businesses based in the capital of Lombardy.But Maran also noted that some of the other omnipresent lockdown practices — like public hand sanitizer dispensers or the use of face masks — were shunted as soon as the pandemic was brought under control with the roll-out of the Covid-19 vaccine.""I don't think we've left these things behind for economic reasons or anything like that, but rather because they remind us too much of that period,"" he said.This modern desire to forget the pandemic isn't unusual — our ancestors had the same reaction to the similarly devastating Spanish Flu pandemic of 1919. Once its impact subsided, the world rushed to move on, and just five years after the disease claimed between 50 million and 100 million lives, the 1924 Encyclopedia Britannica failed to even mention it in its review of the 20th century's most significant events.""I think most people want to erase anything that makes them think about it explicitly,"" Maran observed. ""It's only been five years since it happened, but nobody wants to talk about it.""But while the general public can try to forget the trauma, local authorities don't have that luxury, Maran said. And in its aftermath, municipal governments now have specific plans to put into action for the future pandemics experts say our cities will inevitably face.""We now all have pandemic management plans that are regularly updated, and our administrations have developed structures that allow us to work in even the most daunting emergency situations,"" he said. ""This experience has left us prepared to face a similar emergency, whenever it might arise.""The EU’s body for scientific research, as well as local, regional and national governments, are mobilizing to poach top U.S. scholars.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.The country’s economy stands to suffer losses of up to €4.3 billion as a result of the levies this year.Member countries will be able to tap up to €15 billion of cohesion funds for homebuilding."
mobility,Europe’s automakers caught up in Trump’s trade war,https://www.politico.eu/article/eu-automakers-caught-up-in-trumps-trade-war/,"
				U.S. tariffs on Mexico and Canada undercut automakers’ highly integrated supply chains.			United States President Donald Trump launched a trade war against Canada and Mexico. But Germany’s Volkswagen is in line to feel a lot of that pain.Last year, 44 percent of the German brand’s cars sold in the United States were produced in Mexico, according to car industry analysis firm JATO Dynamics. That’s a result of the highly integrated North American auto market under free trade agreements torn up by Trump.Trump slapping a 25 percent tariff on goods made in Canada and Mexico spells further trouble for Germany’s automakers. They are already seeing their earnings in the key Chinese market shrivel due to slowing demand and rising competition from local rivals.Trump’s move also offsets a Monday win for carmakers when European Commission President Ursula von der Leyen announced leniency on this year's EU emission targets, which the industry said would have cost billions.For years, German carmakers have used Mexico as a low-cost production hub. The country was ""the perfect destination to produce cars"" thanks to its trade deals with the U.S. — as well as with Latin America, Europe and the Middle East, said Felipe Munoz, an auto analyst at JATO.Policymakers in the European Union, aware of Mexico’s vital role in the global automotive supply chain, attempted to shield carmakers from some of Trump's threats by overhauling the bloc's trade agreement with Mexico in January, giving European vehicle manufacturers favorable export rates into the country.VW subsidiary Audi produces its Q5 SUV in Mexico for the U.S. and all other markets outside of China. The model was the brand's top-selling car in 2023.But Trump’s tariffs undercut that strategy.""Having invested millions in a plant to manufacture the Q5 in Mexico, primarily for the U.S., just one decade ago, that facility all of a sudden looks like a white elephant investment,"" said Matthias Schmidt, a European auto analyst.Parent brand Volkswagen, meanwhile, also produces its most popular U.S. model in Mexico: the Tiguan SUV. More than 30,000 of the vehicles were sold in the U.S. in the final quarter of last year — a year-on-year increase of nearly 50 percent.VW shares were down more than 4 percent on news of the Trump tariffs.The fees are also threatening domestic consumption as prices rise in the U.S. in what analysts have dubbed the Trumpcession.Over the course of one week, the Atlanta Fed’s GDP forecasting model went from predicting annualized growth for this quarter of 2.3 percent to now foreseeing a 2.8 percent shrinkage. Just one month ago, the model put growth for the quarter at close to 4 percent.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,Sustainable aviation fuel boss wants more EU regulations,https://www.politico.eu/article/sustainable-aviation-fuel-boss-wants-more-eu-regulations-safs/,"
				Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.			BRUSSELS — The EU's effort to slash CO2 emissions from flying is running into serious trouble and Brussels needs to force airlines to use more sustainable aviation fuel and even slap tariffs on imports, the head of the bloc's largest sustainable fuel producer told POLITICO.The situation for sustainable aviation fuels (SAFs) is so dire that Finland’s Neste will complete an existing refinery in Rotterdam and then halt all of its other planned projects.“We will have to hold on other investments, simply because … the amount of debt of the company has reached a level where we simply cannot continue,” Heikki Malinen, CEO of Neste, said in an interview with POLITICO. “The issue is simply the lack of demand.”That creates the danger the EU won't hit its target of cutting greenhouse gases from flying — a key part of its Green Deal project to make the bloc climate neutral by 2050. Aviation is responsible for about 2.5 percent of global CO2 emissions, and that is expected to rise as demand for flying grows.SAFs are seen as the easiest way to make flying greener. The fuels are made with plant and animal materials like cooking oil and agricultural residues and emit up to 80 percent less CO2 than fossil kerosene. SAFs can be mixed with conventional fuel and burned current jet engines.The problem is that SAFs are about 2.5 times more expensive than fossil kerosene. That makes airlines unwilling to buy the fuel, and producers are wary of investing in new refineries without assured demand. The result is there is too little production and costs remain high.The EU aims to fix that with its ReFuelEU Aviation law, which mandates that airlines and fuel suppliers use at least 2 percent of SAF for flights in Europe as of this year, rising to 6 percent by 2030 and 70 percent by 2050.That's supposed to set a baseline for demand. On top of that, several airlines pledged to use more sustainable fuel than required by EU legislation, either by setting their own targets or by offering passengers the option to pay more to offset the extra cost of flying with SAF.But Neste says that's not happening.“This voluntary demand for SAF basically has not materialized,” said Malinen.When the Finnish company started investing in SAF, “We made estimates of what the demand could be, both mandated and voluntary,” Malinen said. But the only demand comes from the EU mandate; airlines aren't buying any extra.“The market for SAF last year was less than 1 million tons, and the kerosene jet fuel market over 350 million tons, so it’s a drop in the bucket,” Malinen said.The company — which says it has invested about €10 billion in SAF, biodiesel and other types of renewable fuels — is completing a refinery expansion in Rotterdam.“Neste’s capacity alone in 2027 [will be] 2.2 million tons,” Malinen said, adding his company could satisfy “double” the current European demand for SAF. But without voluntary buying, that’s unlikely to be required.And waiting in the wings is yet another EU mandate, this one for synthetic eSAF which is made with renewable energy and CO2 captured from the air to make a truly green fuel. By 2030, 1.2 percent of aviation fuel will have to be eSAF, but the price is “at least double the cost of SAF,” Malinen said — more than four times the cost of fossil kerosene.The CEO wants Brussels to help.First, he wants to tweak the ReFuelEU mandate to avoid jumping from 2 percent to 6 percent only in 2030. Instead, the mandate should be increased smoothly.“It kind of goes hand-in-hand with the increase in supply,” Malinen said.He also wants Brussels to protect domestic producers.There is massive uncertainty in the global market thanks to U.S. President Donald Trump, who is scrapping his predecessor's green mandates. Former President Joe Biden's Build Back Better program aimed to meet 100 percent of aviation fuel demand with SAFs by 2050.But Trump's ""drill baby drill"" pledge to expand oil and gas projects could mean U.S. airlines buy less SAF than foreseen — affecting global demand. A possible introduction of SAF mandates by Beijing could also reduce imports of used cooking oil and other feedstocks from China to Europe — making SAF production even more difficult.“We're not saying that the imports shouldn't happen. Europe has always been open to global markets ... there are tariffs now for renewable diesel, but nothing for SAF and I think this is something that we really ask the regulators to seriously consider,” Malinen said.“The challenge we face is that in this world, which is geopolitically now getting quite complicated, you have a lot of divergence in terms of how different regions of the world address subsidies, how they address tariffs. And Neste, as a European company, is trying to find that balance,” he added.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”Air traffic controllers are joining a national strike to protest Belgium’s budget reform."
mobility,"EU slams US tariffs on Canada, Mexico as threat to global trade",https://www.politico.eu/article/eu-slams-us-tariffs-canada-mexico-threat-global-trade/,"
				“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty,” says EU executive, expressing solidarity with “close allies” Canada and Mexico.			BRUSSELS — The European Commission condemned the tariffs imposed by U.S. President Donald Trump against Canada and Mexico on Tuesday, as tensions over trade and the war in Ukraine soar between the historic allies.“We call on the United States to reconsider its approach and work towards a cooperative, rules-based solution that benefits all parties,” the European Union executive said in a statement.“This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty at a time when international cooperation is more crucial than ever,” it added.Trump on Monday evening announced new 25 percent tariffs on all Mexican and Canadian goods beginning Tuesday and 10 percent tariffs on energy imports from Canada, moving a step closer to triggering a full-scale trade war with America’s biggest trading partners.Brussels, speaking on behalf of the EU’s 27 member countries, expressed solidarity with Canada and Mexico, describing them as “not only close allies of the EU but also vital economic partners.” Its statement made no mention, however, of Trump’s decision to double tariffs against China to 20 percent.It was backed by Bernd Lange, chair of the European Parliament’s international trade committee: “We stand in solidarity with our Canadian and Mexican partners, whose trade relations depend almost entirely on the U.S.,” Lange said in a statement.“It is incomprehensible why the U.S. puts illegal and completely unjustified tariffs on its allies, thereby disrupting entire North American value chains and completely undermining the operations of companies,” said Lange. “Make no mistake, American companies, workers and consumers will suffer too. There is no winner in a trade war, only losers. Of course the additional tariffs on China also don’t seem to be based on an objective analysis.”Trump has also threatened to hit Europe with wide-ranging tariffs that could wreak havoc on the $1.7 trillion transatlantic trading relationship. And the EU has said it would take “firm and proportionate” measures in response to 25 percent U.S. tariffs on steel and aluminum due to take effect from March 12.Responding to the U.S. tariffs, Canadian Prime Minister Justin Trudeau said: “Canada will not let this unjustified decision go unanswered.” He announced tariffs of 25 percent on $30 billion worth of American goods immediately, and on a further $125 billion of U.S. goods in 21 days’ time.China’s Ministry of Commerce also announced it will impose up to 15 percent tariffs on select U.S. imports, including farm products such as chicken, pork, soy and beef, from March 10. The deadline is a signal that Beijing still hopes to negotiate with Trump before the duties snap into effect. It also added 15 U.S. firms to China’s export control list.In an attempt to join arms in anticipation of a Trump trade war, the EU concluded talks on a trade agreement with Mexico just a few days before his inauguration. Brussels also has an agreement with Canada.Ari Hawkins, Sue Allan, Jakob Weizman and Phelim Kine contributed reporting. This story has been updated. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Commission agrees to water down automotive emission targets,https://www.politico.eu/article/european-commission-water-down-automotive-emission-targets/,"
				The executive will put forward an amendment that calculates the target over three years, making it easier to reach.			AI generated Text-to-speechBRUSSELS — The European Commission said Monday it will change the way it calculates emissions targets for carmakers in a bid to help the deeply troubled industry.The executive will put forward an amendment to allow the targets to be based on a three-year average instead of on this year's sales — making it easier for the industry to hit the target without facing steep fines.""We need predictability and fairness for those who did their homework successfully,"" said Commission President Ursula von der Leyen after her second meeting with the bloc's biggest automakers and suppliers this year. ""We have to stick to the agreed targets, but we need to listen to voices who ask for more pragmatism and technological neutrality.""The current regulation requires carmakers to reduce their emissions by 15 percent in 2025 from a 2021 baseline or be fined €95 per gram of carbon dioxide per kilometer emitted above the target for each noncompliant vehicle sold in the bloc.The industry had complained that could see the sector hit with fines of up to €15 billion.Under the executive's latest proposal, carmakers will need to meet the emission reductions over the course of 2025-2027 instead of just 2025.The scheme was proposed by the European People's Party (EPP), which is part of von der Leyen's political family and is the largest grouping in the European Parliament. Any amendment to the law will have to be approved by both the Parliament and European Council.Von der Leyen will submit an amendment for fast-track approval later this month.Green groups were quick to condemn the decision.""Weakening the EU clean car rules rewards laggards and does little for Europe’s car industry except to leave it further behind China on electric vehicles,"" William Todts, executive director of green NGO Transport & Environment, said in a statement.The amendment is part of the Commission's broader automotive action plan. Ideas on how to pull the continent's automakers out of a spiraling crisis brought on by the transition to electric vehicles and growing competition with China will be presented to the public on Wednesday.Other components of the plan include boosting demand for electric vehicles and creating an EU battery sector, according to a draft seen by POLITICO.The 2025 emission target is part of the broader Green Deal effort to slash transport emissions by ending the sale of new combustion engine vehicles from 2035. A review of the law is set for 2026, but the Commission said on Monday it will ""speed up"" that review and include ""technological neutrality as a core principle.""The EPP and industry insiders have called for the law's review to be conducted in 2025, which could bolster their argument for tweaking the broader legislation as the review would then be based on 2024's sluggish EV sales figures.Several member countries, led by Italy and the Czech Republic, have been lobbying for biofuels and e-fuels to be included in the law going forward as the fuels can run in existing engines.While the bloc debates the future of the combustion engine, Chinese carmakers are racing ahead with EVs, producing cheaper models equipped with better technology than their European peers.An economic slowdown in China is leading to a surge of exports as local EV companies look for new markets, prompting further hand-wringing in the European Union. The Commission slapped new duties on made-in-China battery-powered cars in 2024 as part of an anti-subsidy investigation.Von der Leyen met for the second time with the CEOs of Europe's biggest automakers, suppliers and industry groups on Monday ahead of the announcement. ""Let me stress that today was not the end of the dialogue with the industry,"" she said, adding that a third meeting will take place before the summer holidays.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,Tesla’s plummeting sales risk its lucrative emissions credit earnings,https://www.politico.eu/article/tesla-plummeting-sales-risk-emissions-credit-earning/,"
				CEO Elon Musk has angered European customers and governments, undercutting his EV brand.			AI generated Text-to-speechBRUSSELS — Elon Musk's political meddling in Europe is cratering Tesla's sales — and that's putting at risk its revenue from selling credits to other automakers looking to avoid paying penalties for not meeting European Union emissions targets.European automakers face fines should they fail to meet this year's carbon dioxide reduction goals, but those selling too many CO2-emitting cars can dodge the fee by pooling with a company doing better than the EU demands. That's been a lucrative earner for all-electric Tesla.Since its founding, the electric vehicle company has brought in billions from such schemes. In 2024, it made $2.76 billion on emissions deals, a 54 percent year-over-year increase, its annual financial earnings report shows.That revenue stream is now in jeopardy as consumers across Europe shun the brand after Musk, a key adviser to United States President Donald Trump, threw his support behind far-right parties and made incendiary remarks about Germany letting go of its Nazi past.Stellantis, Toyota and Ford joined a pool with Tesla this year, opting to pay the American carmaker for its credits.""If things go bad for Tesla and they don't sell enough cars this year, they might not have enough credits for what they promised Stellantis and the others,"" said Peter Mock, managing director of the International Council on Clean Transportation. ""Tesla is under pressure.""Tesla's pool is already not meeting the 2025 emissions targets, according to an analysis from the ICCT, despite January EV sales increasing 34 percent in Europe.Tesla dealerships across the continent and the U.S. have been the object of protests and vandalism; consumers are also expressing their displeasure with their pocket books. The company's sales in Europe declined 50 percent in January year-over-year, data from car lobby ACEA shows.Musk sparked outrage in Germany — and Poland's transport minister to call for a boycott of the brand — after speaking at a rally for the Alternative for Germany party ahead of the Feb. 23 election. While overall EV sales in Germany surged more than 50 percent year-over-year in January, Tesla sales crashed by 60 percent.A similar trend is happening in Norway and France, where Tesla sales fell 38 percent and 63 percent, respectively.It's not just new Teslas taking a beating.A third of Tesla owners surveyed by Dutch outlet EenVandaag said they have either sold their Tesla or are planning to do so in reaction to Musk's remarks. ""If I had known how he is now, I would never have taken a Tesla,"" one of the respondents said.Many of those still driving Teslas are buying bumper stickers saying: ""I bought this before Elon Musk went crazy.""But Tesla's troubles aren't entirely due to Musk becoming the frontman for global right-wing populists. The company has also languished in recent years, stuck with aging models while rivals in China and Europe come up with more attractive cars. ""The much bigger impact on Tesla is the fact that the models are outdated,"" said Lukasz Pajak, co-founder of German used car platform Cardino. ""And then you have the pricing element where new players on the market are much more affordable.""Tesla will start producing an updated Model Y for the European market later this year.Tesla did not respond to a request for comment.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,EU eyes tougher deportation rules with ‘harsh consequences’ for noncompliance,https://www.politico.eu/article/europe-migration-deportation-rules-tougher-harsh-consequences-noncompliance/,"
				EU Migration Commissioner Magnus Brunner warns that most rejected asylum seekers never leave the bloc.			The European Commission is preparing to overhaul the EU’s deportation system in a bid to accelerate the return of rejected asylum seekers and criminal migrants, EU Migration Commissioner Magnus Brunner told Welt am Sonntag in an interview published Saturday.The plan, expected to be unveiled on March 11, aims to toughen rules for migrants who refuse to cooperate with authorities, including imposing “harsh consequences” for noncompliance, the German newspaper quoted Brunner as saying.“The outcome must be that when a return decision is issued, it is actually enforced,” Brunner said in the interview with the paper, which is owned by POLITICO’s parent company Axel Springer.The move comes as migration remains a top political priority for the EU executive under European Commission President Ursula von der Leyen, with Brussels under pressure from EU countries to improve enforcement coordination and tighten asylum rules. Von der Leyen has made stricter migration enforcement a key focus of her second term, backing policies to strengthen EU border security, speed up asylum procedures and improve returns.While Frontex, the EU’s border agency, recorded a 38 percent drop in irregular arrivals last year — to the the lowest level since 2021 — returns remain slow. More than 480,000 third-country nationals were ordered to leave the EU in 2023, but only one in five did so, according to Eurostat data.Brunner, an Austrian national and former finance minister, is also pushing for tighter detention rules for deportees deemed security risks.“Dangerous individuals slip through the cracks and commit crimes,” he said in the interview. “Rules for security risks must be significantly tougher — including detention to prevent them from disappearing before deportation.”The Commission is also exploring offshore “return hubs” in third countries willing to accept deportees — a legally fraught idea reminiscent of the U.K.’s Rwanda asylum plan and Italy’s Albania deal. EU attempts to establish such partnerships have struggled due to limited cooperation from origin countries, persistent legal challenges and concerns over human rights violations.Emergency regime to expire despite Kyiv’s pleas — with a fallback plan likely to preserve existing safeguards on products like sugar and poultry.A 25 percent U.S. tariff meant for aluminum caught brewers off guard — after all beer appeared to fall under its scope.As budget hawks eye the EU’s farm billions, Agriculture Commissioner Christophe Hansen and the agri world are digging in to defend the status quo.A piglet getting castrated didn’t make the cut in a photo exhibition at the European Parliament."
mobility,"EU to Trump on tariffs: Go ahead, make our day.",https://www.politico.eu/article/donald-trump-tariffs-eu-trade-anti-coercion-instrument/,"
				Brussels threatens to use its trade bazooka after President Donald Trump says the European Union was created to “screw” America.			BRUSSELS — The European Union said on Thursday it was ready to deploy its strongest trade weapon against the U.S. after President Donald Trump threatened to impose sweeping tariffs and scorned the EU as having been created to “screw” America.“We have an Anti-Coercion Instrument, and we will have to use it,” Agriculture Commissioner Christophe Hansen said in Paris after meeting with his French counterpart Annie Genevard at the Salon de l’Agriculture farming exhibition.Designed following the first Trump administration from 2017 to 2021, the bloc's “trade bazooka” provides for broad retaliation in response to trade discrimination, such as quotas and tariffs or restrictions on foreign investment. The commissioner’s comments came a day after Trump threatened to hit the EU with sweeping 25-percent tariffs ""on cars and all other things,"" provoking fury across the Atlantic — with politicians saying the time had come for Brussels to retaliate. “We will not let ourselves be bullied, not with tariffs nor with threats about our legislation,” said Bernd Lange, a usually mild-mannered German Social Democrat who chairs the European Parliament’s international trade committee.Trump’s broadside was a distillation of the trade grievances he had aired on the campaign trail and that he has stepped up since taking office a month ago. He again complained that Europe didn’t buy U.S. cars or food and lamented America's huge transatlantic trade deficit, which he pegged at a vastly exaggerated $300 billion.Although the U.S. supported a united Europe after World War II within a strategic plan to create a democratic bulwark against the Soviet Union, Trump offered a different account: “The European Union was formed in order to screw the United States,” he said. “That’s the purpose of it. They have done a good job of it, but now I am president.”For European leaders, that crossed a line.""The EU wasn’t formed to screw anyone,"" retorted Polish PM Donald Tusk in a post on X. ""Quite the opposite. It was formed to maintain peace, to build respect among our nations, to create free and fair trade, and to strengthen our transatlantic friendship. As simple as that.""Hansen’s threat to use the Anti-Coercion Instrument (ACI) also went beyond the previous position taken by EU Trade Commissioner Maroš Šefčovič, who on his first visit to Washington last week said deploying the ACI was only a hypothetical possibility.Trump plans to reinstate tariffs on steel and aluminum from March 12. More wide-ranging tariffs could land as soon as the start of April.From there, things could escalate quickly. “The European Commission must take swift countermeasures in reaction to Trump’s tariff war,” Belgian lawmaker Kathleen Van Brempt, vice chair of the European Parliament’s trade committee, posted on X.“Giving in to this bullying behaviour is not an option. We must now protect European companies and families from the impact of the American measures.”Before triggering the ACI, which would need the backing of 15 out of the EU's 27 member countries, the bloc’s first resort would be to reinstate punitive duties that it imposed in response to Trump’s first-term tariffs — on Harley Davidson motorbikes, Kentucky bourbon or Florida orange juice. These would likely be expanded to reflect the scale of Trump’s new tariffs.European automakers have everything to fear from Trump’s trade grievances — not merely that Europe’s tariff of 10 percent is four times that of the U.S., but also his team’s tendentious claim that value-added taxes of around 20 percent also represent a trade barrier.If the Commission makes good on its promises to inflict equal pain on the U.S., German luxury carmaker BMW would be the first to be caught in the crossfire. Its plant in Spartanburg, South Carolina — a conservative bastion that voted for Trump last November — exported nearly 225,000 vehicles last year, the company said before Trump’s remarks. All the more mind-boggling for European leaders is just how quickly their diplomacy wears off on Trump.Only 24 hours before, French President Emmanuel Macron had put on a masterclass in how to handle an irascible potentate. He even gave an interview on Fox News, Trump’s favorite TV channel, urging him to prosecute a trade war against China — and not against Europe.Macron’s charm offensive gave way to grim realism on Thursday, with French budget minister Eric Lombard warning that should Trump confirm the tariffs, “Europe will do the same.”“It is a scenario we are getting prepared for,” Industry Minister Marc Ferracci told reporters at a press conference in Paris after hosting a meeting of EU ministers on how to rescue the bloc’s struggling steel industry. Italy’s Industry Minister Adolfo Urso, speaking alongside Ferracci, suggested that Europe could avoid U.S. tariffs by yielding to Trump’s demands — while also calling for unity and warning against a trade war. One way to placate Trump, he hinted, would be to accommodate his demands to boost European defense spending.“Tariffs are the tip of the iceberg, but the answer to tariffs is in other aspects,” he said. Camille Gijs, Jordyn Dahl and Bartosz Brzeziński reported from Brussels. Giorgio Leali reported from Paris. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Brussels pitches €100B for grand plan to boost made-in-EU clean manufacturing,https://www.politico.eu/article/brussels-pitches-e100b-for-grand-plan-to-boost-made-in-eu-clean-manufacturing/,"
				The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.			
				This article is also available in: French			ANTWERP, Belgium — The European Commission on Wednesday announced €100 billion in short-term relief to supercharge climate-friendly manufacturing in the EU. The funding is part of the EU executive’s Clean Industrial Deal, its master plan to help traditional industries cut carbon emissions and boost the EU’s emerging clean-technology sector amid fierce competition from China and the United States.“Today, Europe has decided to invest in its decarbonization and reindustrialization. Over 100 billion euros in all,” EU Industry Commissioner Stéphane Séjourné said in a press conference announcing the strategy. “At a time when some would seek to impose their model on us, the best response is to bolster our own European model.” The Commission faces financing constraints as the bloc is only just starting to negotiate its new long-term budget. But its plan promises to “mobilize over €100 billion” for “EU-made clean manufacturing” in the short term.The funding effort centers on an “Industrial Decarbonization Bank” and is scraped together from several places.The initiative will pull €20 billion from the EU’s existing Innovation Fund, which backs low-carbon technologies, and €30 billion from “voluntary top-ups to be made by member states,” according to an accompanying document seen by POLITICO.A revision of the InvestEU program, which aims to draw in more private funding, should yield €25 billion, and the Commission is also counting on €25 billion in future revenue from the bloc’s carbon market.Whether the Commission’s definition of “short term” matches industrial ideas is another question. EU climate chief Wopke Hoekstra told reporters at the press conference that the decarbonization bank “could raise up to €100 billion in the next 10 years.” That figure could then draw in private sector money, Hoekstra said, arguing that could bring the total to €400 billion. “With this plan, we are aiming to decrease industry emissions by up to 30 percent,” he said. Still, some sectors may not have time to wait. Steel firms, in particular, have warned that they face irreversible decline without help this year. Commission President Ursula von der Leyen has announced urgent discussions with the metals sector starting next week. The Clean Industrial Deal also encompasses measures to boost investment, lower energy prices and increase demand for clean manufacturing.Those initiatives include new made-in-EU criteria for climate-friendly materials bought by governments and other public authorities. “This deal proposes to totally rethink the logic behind public procurement, which until now has been based solely on the cost criteria,” Séjourné said. “We’re going to be adding new criteria of sustainability, resilience, performance and European preference in public contracts, and more generally, in public assistance.” The private sector will be included, too, he added: “We’ll also be taking a look at the private sector, such as company car fleets.”Other measures include joint purchasing of critical raw materials. “We need to do with lithium or cobalt what we did with Covid vaccines,” Séjourné said. The Commission also released a separate but closely linked plan to lower energy prices for European businesses, proposing measures to slash electricity taxes, speed permits and help companies sign longer-term power contracts.""We're pulling out all the stops to bring energy prices down,” Hoekstra said.  Teresa Ribera, the Commission’s vice president for climate and competition, emphasized the green transition’s potential to create jobs in clean manufacturing and adjacent sectors. “By 2030, the EU’s renewable targets alone will generate over 3.5 million new jobs in the renewable sector,” she said. “But this transition means change — some sectors will need to face challenging circumstances.” The Clean Industrial Deal includes a section on retraining and social issues, promising an upcoming strategy “to give people the skills they need.” But it is not the document’s primary focus.Collectively, the EU commissioners struck a bullish tone, arguing that Europe’s economic malaise is solvable — and that they have a plan to do so.The world, Ribera said, is “changing, shifting fast and so must we.”She added: “Our vision is for Europe to lead as a clean-manufacturing power.”Aude van den Hove, Marianne Gros, Jordyn Dahl, Victor Jack and Gabriel Gavin contributed reporting. Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities.Formal proposal to amend overarching climate law will accompany Clean Industrial Deal."
mobility,"Macron to Trump: Make trade war with China, not with us",https://www.politico.eu/article/emmanuel-macron-donald-trump-make-trade-war-china-not-us/,"
				“Come on, you cannot have a trade war with China and Europe at the same time,” Macron tells Fox News in an interview.			French President Emmanuel Macron hopes he convinced United States President Donald Trump not to wage a trade war against Europe — and to instead focus on China.“Come on, you cannot have a trade war with China and Europe at the same time. I hope I convinced him,” Macron told Fox News in an interview after meeting Trump in Washington Monday.Macron said Washington’s “priority is to put tariffs on China” and that fighting a trade war with Europe at the same time would go against U.S. interests.“I hope I did convince him on trade and tariffs,"" Macron told Trump’s favorite TV station. “I told him: It’s very important for you not to launch new tariffs.”Macron’s visit to the White House to discuss the war in Ukraine was the first by a European leader since Trump dramatically reversed the U.S. position on the war in Ukraine, accusing President Volodymyr Zelenskyy of being “a dictator without elections” and opening talks with aggressor Russia on how to end a three-year-old war.In Washington, the two leaders tried to convince the world of their special relationship, exchanging compliments, hugs and jokes. But they still disagreed on how to end the Russia-Ukraine war, and on how to head off a full-scale transatlantic trade war.Earlier this month, Trump floated 25 percent tariffs on a wide range of imports, including from Europe. He also threatened “reciprocal” tariffs in retaliation against a wide range of regulations and taxes that Washington sees as discriminatory, including value-added taxes that are collected by the vast majority of nations of the world.Macron said he tried to convince Trump not to impose those tariffs, stressing that Europe has not done anything that deserves a U.S. retalation. “VAT is not a tariff, and I argued it,” Macron said, adding that “we didn't tariff the U.S.”Macron also stressed that European countries will be unable to boost defense spending, as demanded by the U.S., if they also face a transatlantic trade war.“How do you want us to increase security and defense expenditure if we are in a trade war?” Macron said.Macron will brief leaders of other EU countries Wednesday on his meeting with Trump, ahead of a special gathering of EU leaders scheduled for next week.“This is a wake-up call on trade agreements,” French Trade Minister Laurent Saint-Martin tells POLITICO.Stéphane Séjourné says he expected “good news,” which will provide succor for the French booze industry. PARIS —The trade war with the United States might prevent France from bringing down its sky-high budget deficit, French Economy and Finance Minister Eric Lombard said on …Why let penguins have all the fun? "
mobility,Commission pushes EU’s 2040 climate law into spring,https://www.politico.eu/article/commission-pushes-eus-2040-climate-target-law-into-spring/,"
				The 2040 target “will be presented soon,” said European Commission spokesperson.			BRUSSELS — The European Commission will not unveil its long-awaited proposal to enshrine into law the European Union’s new 2040 climate target on Wednesday, a spokesperson told POLITICO Tuesday.A senior official told POLITICO over the weekend that the Commission had agreed to publish an amendment to the bloc’s climate law this week alongside a strategy to boost and decarbonize the EU's struggling manufacturing industries.The 2040 target “will be presented soon, but not as part of tomorrow’s Clean Industrial Deal package,” said Commission spokesperson Anna-Kaisa Itkonen, adding that there was no specific date yet.The amendment will formalize last year’s Commission recommendation to cut emissions by 90 percent by 2040, kicking off the EU's legislative process involving national governments and the European Parliament.With the proposal not coming before March, more than a year has now passed since the February 2024 recommendation. That’s in part due to EU lawmaking grinding to a halt in the bloc’s election year. But the proposal’s timing is also subject to political pressures. Poland, which holds the rotating Council of the EU presidency, hopes to avoid dealing with the issue until after its May election.Meanwhile, Commission President Ursula von der Leyen’s center-right European People’s Party, the largest faction in the European Parliament, is divided over whether to back the 90 percent goal. In the Council, only eight countries have explicitly supported it."
mobility,EU eases sanctions on Syria,https://www.politico.eu/article/eu-suspends-economic-sanctions-on-syria/,"
				The relief aims to support “an inclusive political transition in Syria,” says Council of the European Union.  			AI generated Text-to-speechThe EU on Monday lifted a number of economic sanctions on Syria, after the fall of Bashar Assad's regime late last year.“We will go forward with the suspension of sanctions against Syria,” the EU's foreign policy chief Kaja Kallas said before a meeting of foreign ministers in Brussels. “This includes the transport, energy and banking sectors.”The sanctions relief aims to support ""an inclusive political transition in Syria, and its swift economic recovery, reconstruction and stabilization,"" said the official Council of the EU statement.The EU had previously agreed to gradually ease sanctions it imposed on the country as a result of the violent 2011 crackdown on protesters by Assad's government, resulting in a civil war that killed hundreds of thousands of people. Assad, who ruled Syria with an iron fist for almost a quarter of a century, fled to Russia after opposition forces swept the country and stormed the Syrian capital in December. The country is now governed by a new president, Ahmad al-Sharaa, formerly known as Abu Mohammed al-Jolani.The EU continues to list Al-Sharaa’s organization, Hayat Tahrir al-Sham, as a terrorist organization, while European Commission President Ursula von der Leyen in December warned that the regime change in Syria “offers opportunities but is not without risks.”World continues to get hotter. Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.The European Commission also recently unveiled its own preparedness strategy for citizens, while Russia’s war on Ukraine grinds forward. Critics say the bill would discredit NGOs that receive any kind of foreign funding."
mobility,"EU’s 2040 climate target to come this week, Commission official says",https://www.politico.eu/article/eu-2040-climate-target-come-this-week-european-commission-official/,"
				Formal proposal to amend overarching climate law will accompany Clean Industrial Deal.			BRUSSELS — The European Commission on Wednesday will publish a long-awaited revision of the bloc's climate legislation to set a new emissions-reduction goal for 2040, a senior Commission official told POLITICO.One year ago, the EU executive recommended the bloc target a 90 percent cut in planet-warming emissions by 2040 compared to 1990 levels as an intermediate step between its 55 percent reduction goal for 2030 and its net-zero aim for 2050.But the Commission did not follow up with a formal proposal to enshrine the new target in law, meaning the EU's legislative process involving national governments and the European Parliament has not yet started.The official, granted anonymity to disclose internal planning details, said the plan was now to publish an amendment to the European Climate Law on Feb. 26 — at the same time as the Commission releases its Clean Industrial Deal, an overarching plan to revitalize industry and help it decarbonize. That was not a given. Conservative politicians, including within Commission President Ursula von der Leyen's center-right European People's Party, have raised concerns over whether 90 percent is feasible at a time of economic turmoil. Poland, which holds the rotating Council of the EU presidency, had hoped to delay debates on the issue until after its May elections.The formal 2040 proposal will also spur discussions about the EU's non-binding 2035 target, which the bloc has to submit to the United Nations this year under the terms of the Paris Agreement.Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities."
mobility,"EU should force big polluters to clean up the atmosphere, top advisers say",https://www.politico.eu/article/eu-pollution-greenhouse-gas-c02-carbon/,"
				The bloc’s scientific advisory board on climate change wants the EU to scale up carbon removals.			BRUSSELS — You made this mess. You clean it up. That’s how the European Union should treat companies polluting the atmosphere with planet-warming greenhouse gases, the bloc’s climate science advisers say. On Friday, the EU’s scientific advisory board on climate change issued a blockbuster report focused on scaling up carbon removals — an essential but underdeveloped element to curbing global warming. Taking CO2 out of the atmosphere is necessary to compensate for emissions that can’t be avoided, as well as to lower global temperatures in the second half of the 21st century, scientists say. But reliable, CO2-hoovering technologies haven’t yet been proven at scale, and the required research and deployment requires tons of money. Meanwhile, Europe’s forests and soils have a dwindling and only temporary capacity to absorb carbon dioxide. In Friday’s report, the advisory board — an independent consortium of senior researchers that gives the EU climate policy guidance — issued nine recommendations for tackling those problems. One proposal is to force big polluters to help clean up the CO2 they’ve emitted to boost the takeup and financing of carbon removal tech — similar to new rules the EU agreed to this week on textile waste, which require fashion brands to pay a fee to finance waste collection. The board doesn’t prescribe specific options, however. “We leave it open if this is something which could be part of a voluntary contract or take the form of a heavy tax on the fossil fuel capital stock,” the board’s director, Ottmar Edenhofer, told POLITICO. Ideas include getting companies to pay a deposit they get back once they’ve removed a certain amount of CO2, a “clean-up certificate” integrated into the EU carbon market, or debt-like financial obligations reflected on a company’s balance sheet.In general, Edenhofer said, the idea is that the EU “could say to an oil refinery: ‘You are allowed to emit one ton of CO2 today, but you have to remove it later.’ We could even say it’s not just one ton, but you have to remove two tons.” The board’s recommendations have proven influential in the past. Its report suggesting the EU set a 2040 emissions-cutting target of at least 90 percent became the de facto baseline for the new climate milestone, pushing the European Commission to adopt the same goal.But it’s now high time for the EU to look past climate neutrality in 2050, Edenhofer said: “What we’re saying is that net-zero is not the focal point. It should be net-negative.” Scientists have found that even in the most optimistic scenario, the world will warm beyond 1.5 degrees Celsius above preindustrial levels — a threshold after which catastrophic, irreversible climatic changes such as the disappearance of ice sheets become more likely. Removing carbon dioxide could return temperatures to just below the 1.5C barrier. While it’s impossible to reverse global warming, doing so would put the planet in safer climatic conditions — meaning fewer disasters, less intense heat waves and a far lower chance of triggering cataclysmic changes. European lawmakers should therefore set specific CO2 removal targets, the board’s report says — with one important condition: The EU must distinguish between the two categories of removals and set separate goals for each. Carbon can be withdrawn from the atmosphere using natural methods — for example, planting trees to boost forests’ ability to sequester CO2 — or technological solutions. For now, the EU relies on nature, as carbon-removing tech is still in its infancy. But CO2 stored in trees or soils only stays there for a few decades — not exactly a long-term solution — and natural absorption capacity has declined by a third between 2013 and 2022 due to overexploitation and climate-fueled disasters such as wildfires. In contrast, technology allows for long-term storage — for example by injecting CO2 into rocks deep underground, where it stays for millennia. Yet these methods — which include directly sucking carbon from the air — haven’t been tested at the scale required. (The report describes the current efforts as “minuscule.”) Pipelines to transport the captured CO2 and sites to store it aren’t available yet, either. The EU urgently needs to boost research and deployment of these technologies, the board said. It argued that setting separate, legally binding targets for technological and nature-based removals would send investors a major signal.The report adopts the EU’s newfound obsession with economic “competitiveness” to make its case, linking their advice to Europe’s ambitions to become a clean-technology leader. But it’s not all about industry. The EU must take urgent steps to reverse its natural carbon absorption capacity decline — boosting nature restoration efforts and aligning the EU’s agricultural policies with its climate targets. The bloc’s new Nature Restoration Law and green standards for farmers triggered tractor protests and a political backlash against environmental legislation last year, prompting the Commission to weaken sustainable agriculture requirements. Scientists say that boosting nature’s carbon removal capacity should benefit farmers, too, giving them a chance to earn additional income by sequestering CO2 on their land. But natural and technological removals must be kept separate, they insist. A new carbon market could put a price on emissions and removals in the land and agriculture sector. Meanwhile, permanent technological removals should be gradually integrated into the EU’s existing carbon market covering power plants and heavy industry. Some additional regulations will also be required — including a thorough reporting framework to ensure removals placed on the market are really gone from the atmosphere, the scientists say. Although even the world’s top climate science body considers carbon removals essential to fighting global warming, climate campaigners have raised concerns that boosting carbon removals could deter companies and governments from reducing emissions. The report stresses that carbon removals cannot replace deep, fast cuts in the EU’s CO2 emissions. Removals should only be used to compensate for emissions that are difficult or impossible to eliminate, such as in aviation or agriculture, and to reduce the CO2 concentration in the atmosphere. Yet there’s no specific definition of emissions considered hard to avoid. Finally, there’s the funding question. And the scientists seem convinced that joint EU debt must play a role. The bloc should consider extending its pandemic recovery fund, financed by joint borrowing, “beyond 2026 to ensure continued support for long-term removal projects,” they write. Given the controversy surrounding common debt, the idea of getting big polluters to pay for removals might be more attractive to EU governments — though the report cautions that even with such measures, “additional funding mechanisms will be required.”Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities."
mobility,"EU and India to inch closer on trade, EVs and chips at upcoming meet",https://www.politico.eu/article/eu-and-india-to-inch-closer-on-trade-evs-and-chips-at-upcoming-meet/,"
				Ursula von der Leyen is leading her new College of Commissioners on their first visit to India.			AI generated Text-to-speechBRUSSELS — The European Union is looking to keep India on its side as geopolitical tensions mount with the United States and China, according to the draft joint statement from a top-level visit by EU leaders seen by POLITICO.European Commission President Ursula von der Leyen will lead her team on a visit to India next Friday, while Brussels and New Delhi will also convene their second-ever Trade and Technology Council to strengthen ties and counter America’s tariff threats and China’s assertive trade practices.President Donald Trump’s global retreat poses an opportunity for rivals like China to fill the void, particularly in funding developing countries’ technology initiatives. The agreement on the table would help the EU maintain a critical foothold in the Asia-Pacific.“The deepening of bilateral relations and the growing strategic convergence between the EU and India respond to the shifting dynamics of the global geopolitical landscape and a common interest in promoting global stability, economic security, and sustainable and inclusive growth,” reads the seven-page draft statement. The get-together comes as von der Leyen sets her sights on strengthening the EU’s strategic partnership with India and reviving slow-moving negotiations on a free-trade agreement.India is pushing for stronger commitments from the EU on market access, according to two EU diplomats briefed on the back and forth. Differences have emerged on how best to express this aspiration, with the Indian side seeking stronger wording in the TTC statement and the Europeans preferring to confine the point to the ongoing talks on the FTA.India has frustrated its Western partners by hanging tough in trade talks and is especially playing hardball at the World Trade Organization to defend its food security strategy. EU trade chief Maroš Šefčovič hosted his Indian counterpart Piyush Goyal in Brussels in January, when both also met WTO chief Ngozi Okonjo-Iweala. The two sides will also vow to deepen their “commitment towards the multilateral trading system as an anchor in the current challenging geopolitical context.” That affirmation could be a balm for Europe’s struggling automakers. They are in sore need of new export markets, under threat from China’s world-beating electric vehicles and at risk of a massive hit to their bottom lines from Trump’s threat to impose 25 percent tariffs on autos.India, the world’s fifth-largest economy, is expected to maintain a growth of over 6 percent between 2026 and 2031, S&P Global estimates — similar to rates in China in the early 2000s that helped European carmakers earn record profits there.It is also shifting quickly from combustion engines (ICEs) to EVs, with S&P predicting the share of ICEs will decline to 35 percent by 2035. The biggest challenge for the country in transitioning, however, is charging infrastructure.The two sides will pledge to cooperate on harmonizing standards for EV charging infrastructure and set up a “joint research cooperation” focusing on recycling batteries for electric cars, the statement says. The projects will have a budget of €60 million that is expected to come from the Horizon Europe program and “matching Indian contributions.”Brussels and New Delhi also want to join forces on artificial intelligence, semiconductors, and telecoms, alongside a push for “secure and trusted” connectivity — code for Chinese-free networks. Plans include more joint R&D in chip design, talent exchanges, a new memorandum of understanding on 6G, and stronger ties between the Commission’s AI Office and the Indian AI Mission as India gears up to host the next international AI summit.The statement could still change in the days leading up to the Feb. 28 talks in New Delhi. After a two-year hiatus since the first TTC, the two sides will host their third meeting “within one year from now,” the document adds. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Friedrich Merz wants to lead Europe on the economy. Can he?,https://www.politico.eu/article/friedrich-merz-wants-to-lead-europe-on-the-economy-can-he/,"
				Germany’s likely next chancellor wants to reboot ties with France, do a free-trade deal with Donald Trump and get tougher on China and Russia.			Friedrich Merz was prematurely introduced as Germany’s chancellor at the Munich Security Conference last weekend — and proceeded to talk like he was already Europe’s economic leader.The 69-year-old Christian Democrat won’t have long to wait: He is the favorite to win Sunday’s early general election, according to opinion polls that put support for his center-right party at around 30 percent. That should be enough to form a majority with one or two other parties from the political center.“I fully agree with all those who are demanding more leadership from Germany and frankly I’m willing to do that because I’m seeing that Germany is in a strategic position in the center of Europe,” Merz told the security forum.The former business executive spent years in the political wilderness during Angela Merkel’s rule, before capturing the Christian Democratic Union leadership in 2021 at the third attempt. On the campaign trail he has broadcast strong views on the economy and trade — calling to revive the Franco-German relationship at the heart of the European Union, for the bloc to recommit to free trade and to safeguard transatlantic relations.For more polling data from across Europe visit  POLITICO Poll of Polls.It won’t be hard to improve on the lackluster leadership of Olaf Scholz, the Social Democrat chancellor who has presided over more than two years of economic stagnation and is almost certainly headed for the political exit.But with American President Donald Trump apparently intent on launching a trade war of unprecedented aggression, and President Emmanuel Macron and the entire French political class retreating into their protectionist shell, is Merz’s resort to the free-trade formula that has so long served Exportweltmeister Germany timely or even relevant?Here’s where Merz stands on the issues:Merz, a convinced Atlanticist, sees Germany’s status as Europe’s largest economy as an opportunity to “not be a dwarf” versus an “unpredictable” Trump.He says he hasn’t given up hope of reviving talks on an EU-U.S. trade deal — nearly a decade after they fell apart. With Trump on the trade warpath that looks a mighty stretch, however — although experience of the U.S. president’s first term might suggest that he is staking out maximum positions with an eventual “deal” in mind.“Merz is rare in Germany for presenting Trump’s re-election as a justification for transatlantic engagement,” wrote Jeremy Cliffe and Jana Puglierin in a think piece for the European Council on Foreign Relations. Cliffe and Puglierin added one rider: “He recognises that the transatlantic relationship must change radically to survive, with a more balanced burden of responsibility.”Even if Trump is willing to parley, Merz would need to win over Paris to the cause — and that looks an impossibly tall order at a time when France is digging its heels in over ratifying a long-awaited free-trade agreement finalized in December with Mercosur, a South American bloc that groups Argentina, Brazil, Paraguay and Uruguay.“We have to overcome our dispute on Mercosur,” Merz told the World Economic Forum in Davos last month, saying he was in regular close contact with Macron.Merz has taken a less pliant line on China than Scholz, whose Social Democratic Party, or SPD, has close ties to Volkswagen. The country’s biggest automaker has fallen off the pace in China, its largest market, and faces a moment of truth as its local competitors take a commanding lead in electric vehicles both there and on the world market.Merz has served notice that no German carmaker is too big to fail and ruled out any possible bailouts. “Under no circumstances should you come to the state … to help you economically in such a situation,” he said in a keynote economic policy speech. “That is out of the question.”Scholz — fearful of retaliation from Beijing — opposed duties on Chinese electric vehicles imposed after an investigation found evidence of unfair state subsidies. But Berlin was outvoted by other EU members and the duties entered into force last October.No matter who sits in the chancellor’s office, Berlin will always remain critical of a European Commission that wants to extend its trade defenses to cover issues like screening outbound investments or imposing duties on Chinese companies. Merz has admitted Germany has an unhealthy dependence on China, unlike Scholz. Teaming up in a coalition with the Greens, who are also hawkish on China, would allow Merz to pull back. With the SPD in his passenger seat, that would be less likely.Other European governments worry that even a Merz-led Germany will continue to frustrate the adoption and enforcement of sanctions against Russia. One senior EU diplomat — on the political level — recently confided in POLITICO that “the biggest problem still is Germany.”“It’s still German national due diligence systems that are not in place. And I have no idea what the [reason for this] is,” this diplomat said. They added that the election and expected change in government might not bring relief for countries pushing to support Ukraine more.Merz is clearly more hawkish on Russia than Scholz, who has campaigned as a Friedenskanzler (peace chancellor) and often created the impression that he merely wants Ukraine to avoid defeat, but not necessarily win, the three-year-old war. Scholz, under pressure from German business groups, last year blocked a rule that would bar EU-owned  companies registered abroad from exporting to Russia.With German exports groaning under high energy costs and chafing at the loss of the Russian export market, Merz’s pro-business party can also be expected to exert a net drag on attempts to extend sanctions or toughen their enforcement. Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen."
mobility,Germany’s economy is driving off a cliff. The car industry is behind the wheel.,https://www.politico.eu/article/germany-economy-car-industry-automotive-crisis-tariffs-china-energy-costs/,"
				The incoming chancellor will inherit a host of problems buffeting carmaking, including high energy and labor costs along with a looming trade war.			The automotive industry fueled Germany’s rise as Europe’s economic powerhouse. Now, that same sector is in crisis — and is taking the country down with it.Automakers are facing a perfect storm: a shift from the combustion engine, which showcased German engineering, to less complex electric vehicles where Germany doesn’t control crucial battery technology. They are also battling slumping demand for electric vehicles in Europe, high energy and labor costs, a collapse of sales in their key market of China, and the arrival of aggressive Chinese rivals on the continent.A further blow could be on the way from United States President Donald Trump, who is threatening tariffs that would upend the free-trade system underpinning Germany’s export-driven economic success.“The economy has been under a huge amount of pressure [that] was hidden by the fact that there was the pandemic and then the war,” said Nils Redeker, deputy director of the Jacques Delors Center think tank in Berlin. “It’s now coming to the forefront again and people are very, very concerned.”That’s having a knock-on effect on German politics.The troubles roiling Germany’s key sector are a major factor in Chancellor Olaf Scholz's likely ouster in the Feb. 23 election as voters sour on his economic agenda.With less than a week to go until the vote, Scholz’s opponent — the conservative alliance of Friedrich Merz — has 29 percent support in polls, while his own Social Democratic Party (SPD) is third on 16 percent.But even a conservative win is unlikely to deliver a quick fix to the problems ailing Germany’s car industry.Layoffs across the sector, anemic economic growth, and the sense that Germany is no longer on the path of prosperity is deepening gloom in the country. That has aided the rise of the far-right Alternative for Germany (AfD) party, now second in the polls (21 percent), and has provided oxygen to the left-populist Alliance Sahra Wagenknecht (5 percent), known by its German acronym BSW.Although Germany is entering its third consecutive year of recession, the country’s economic woes can be traced back to 2019, when decarbonization efforts kicked off in earnest, threatening its traditional industrial prowess. Meanwhile, China, the country German industry once relied upon for massive profits, has become its biggest competitor.Germany’s auto giants got rich in China, entering the market decades ago when domestic car sales were just starting to creep up; their Asian success helped support higher wages at home.That trend reversed in 2018 when China’s market for new cars contracted for the first time since the 1990s, falling 3 percent. It went down 8 percent more in 2019 before the pandemic ground global markets to a halt.These days, the market shares of the big three German automakers are shriveling as Chinese rivals introduce cheaper electric vehicles that often sport better technology.In 2024, BMW’s sales fell 13 percent in China; Mercedes-Benz dropped 7 percent; and Volkswagen — which counts China as its largest market — declined 10 percent.“It was so good in China for so long that the German carmakers, despite the troubles that they’re experiencing now, are trying to recreate the magic of past decades,” said Noah Barkin, a senior adviser with consultancy Rhodium Group.But Germany, and by extension Europe, has more on the line in China than just corporate profits.German automakers’ reliance on the Chinese market gives Beijing leverage over Berlin “because they can essentially weaponize these dependencies,” Barkin said.That, in turn, further endangers European Commission President Ursula von der Leyen’s China derisking strategy. The Commission last year slapped duties on made-in-China EVs even though Germany lobbied against the measures, citing retaliation concerns.Merz vows to break that dependence on China — even if it costs carmakers. He has warned German companies against making bigger investments in China and has said not to come crawling back for a bailout should such wagers blow up.Adding to the troubles of carmakers are higher energy costs, which soared in the aftermath of Vladimir Putin’s full-scale invasion of Ukraine, underscoring the risk inherent in Germany’s decision to make its economy dependent on cheap Russian gas.Pricey energy is also causing the costs of steel and aluminum — crucial inputs for the car industry — to gyrate. Worse still, Trump is targeting the two metals with his new tariffs.German carmakers are also saddled with the highest labor costs in the world — a legacy of powerful unions and decades of fat profits from China. Efforts to escape those costs are impacting the broader economy. From 2018 to 2023, as German automakers relocated to cheaper countries, production in Germany fell by 8 percent, according to a deindustrialization report from the Commission.Squeezed by sagging sales and falling profits, the industry is scrambling to cope.Volkswagen last year stunned its unions by calling for a 10 percent pay cut and the closure of three car factories in Germany — the first time that’s happened in the company’s 87-year history. VW walked this back in the face of labor outrage and warning strikes, leaving the plants open — though workers did agree to pay and benefit cuts.German automakers have also bet big on the electrification of cars, investing billions in developing new models and retooling factories. But a decision in late 2023 by Scholz’s coalition to end generous EV subsidies kicked the legs out from under electric car sales in Germany.The shocks buffeting Germany’s largest industry and biggest employer are drawing in politicians.Together with other conservatives, Merz wants the European Union to scrap its planned phaseout of combustion engine cars by 2035. Both the AfD and the BSW are pushing for the same.That creates yet another potential post-election headache if Merz tries to build a grand coalition with the SPD or link up with the Greens, both of which back the 2035 measure.But carmakers aren’t all sold on the idea of messing with the EU targets, as that could throw their long-term investment plans geared toward going electric into disarray.Trump has thrown another curveball into that calculation by scrapping U.S. EV subsidies and demanding a “drill, baby, drill” return to oil and gas.Moreover, if he unleashes tariffs against Canada and Mexico, he could upend decades of careful planning for the North American market by German carmakers — adding to their bottom-line woes.Faced with the collapse of the model that made them — and Germany — rich, automakers face an existential challenge. Above all, they must figure out if Germany’s traditional engineering prowess is still capable of producing attractive EVs that defeat the Chinese competition and again make cars the driving force of the German economy.Merz would have to reform Germany’s sclerotic economy, notorious bureaucracy, high costs, and the ingrained risk aversion that is baked into policies ranging from dropping the debt brake preventing government borrowing to slashing cherished welfare benefits.That likely means closer cooperation with Brussels as the EU works to save the bloc’s industrial base from U.S. and Chinese competition, Redeker said. “The fact that Germany is part of the problem now maybe also makes it realize that Europe needs to be part of the solution,” he said.Merz has signaled a willingness to do just that, saying in a January speech that he will provide more robust leadership within Europe. The question is whether that’s enough to save Germany and its carmakers.“I would love to see Germany be a strong Germany in an even stronger Europe, but I have my doubts,” said Matthias Zink, president of auto supplier lobby CLEPA and CEO of car parts maker Schaeffler.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,European aviation ‘dumbstruck’ by Musk’s takeover of US air traffic control,https://www.politico.eu/article/europe-aviation-dumbstruck-elon-musk-takeover-united-states-air-traffic-control-spacex-donald-trump-doge/,"
				The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”			AI generated Text-to-speechBRUSSELS — European aviation experts are aghast at the Trump administration's decision to have Elon Musk's employees investigate its troubled and understaffed air traffic control system following several high-profile air crashes.Aviation professionals, experts and politicians warn that the world's richest man doesn't have a good track record when it comes to safety and of the possible implications of involving his SpaceX company in U.S. air traffic safety.“Is Mr. Musk the right person? I mean, all of the things he builds have a terrible tendency to burst into flames,” said Andrew Charlton, managing director of the Aviation Advocacy consultancy.Asked if the European aviation sector was concerned about the X boss' new task to fix U.S. air traffic management, Charlton said: “Yes, 100 percent. I think the word you're after is dumbstruck. I mean, they're freaking out. They're watching with slack-jawed amazement.”In the aftermath of the Jan. 29 mid-air crash between a passenger jet and a U.S. Army helicopter over Washington that claimed 67 lives, Musk promised that his cost-cutting Department of Government Efficiency (DOGE) team would look to make “rapid safety upgrades” to the country's air traffic control sector.And on Monday, U.S. Transport Secretary Sean Duffy, who was recently appointed by President Donald Trump, announced the involvement of Musk's employees in a post on X saying the team was expected to “get a firsthand look at the current system, learn what air traffic controllers like and dislike about their current tools, and envision how we can make a new, better, modern and safer system.”In recent years, the U.S. has seen a steep spike in near-collisions involving commercial airplanes at airports, with five incidents in 2022 and 11 incidents in 2023. The FAA’s air traffic control workforce has been playing catchup for decades due to a wave of retirements that has left the controller workforce understaffed by thousands.The new Trump administration's approach to aviation safety clashes with its effort to slash government spending; DOGE is firing thousands of probationary employees who maintain critical infrastructure.“It’s obvious that Elon Musk's business is not about safety, but about his money, which is OK. He’s a businessman,” said Daniel Liebhart, an Austrian air traffic controller and chair of the aviation section of the Vida union.“But when it comes to air traffic control … it's about people's lives. And their safety should be the No. 1 priority,” Liebhart added.“If people without the necessary technical expertise carry out opaque interventions in such a complex sector, it may have serious implications for aviation safety,” said Jan-Christoph Oetjen, a German member of the European Parliament from the Renew Europe group who sits on the legislature's transport committee. “In the interests of all people, it must be ensured that air traffic control remains fully operational and that significant changes are not implemented carelessly,” Oetjen said.On Monday, SpaceX employees visited the Federal Aviation Administration's Air Traffic Control System Command Center in Virginia.There is no question that the U.S. system could use reform. ""Air traffic management in America and globally needs a massive technological upgrade,” Charlton said.But “every change you make [in air traffic control] has got to be incremental, evolutionary, not revolutionary,” he added, “and you've also got the problem of bringing your staff with you.”In addition to the well-documented problems of understaffing in U.S. control towers, “I know that [they] are through the roof in terms of working time for the current air traffic controllers. So that's really alarming,” said Gauthier Sturtzer, a French air traffic controller and chair of the CGT union’s air traffic management committee.“Does that make flying unsafe? Well, I hope not. But I cannot be sure of the current trend,” Sturtzer said.In addition to safety concerns, Musk's involvement with the FAA also raised eyebrows as the federal agency sought to fine SpaceX last year for a series of alleged safety violations on two rocket launches in 2023.According to Sturtzer, Musk “is not going to be helpful to the sector. He wants to serve his own interests by keeping the FAA away from space operations.”British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.Air traffic controllers are joining a national strike to protest Belgium’s budget reform."
mobility,"Europe’s peace offerings to Trump: Gas, cars and guns.",https://www.politico.eu/article/europe-peace-offerings-to-us-donald-trump-gas-cars-and-guns-maros-sefcovic/,"
				The European Union’s top trade official brings a suitcase full of proposals to persuade President Donald Trump to call off his trade war threats.			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — EU trade chief Maroš Šefčovič was flying to Washington on Tuesday with a suitcase full of gifts that he hopes can buy peace with United States President Donald Trump and head off a spiraling trade war. Promising a “package of cooperation” to the new administration in a bid to avert Trump’s tariffs, Šefčovič is expected to meet on Wednesday with Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer — both still to be confirmed in their posts — and Kevin Hassett, Trump’s top economic adviser.The visit comes at a perilous time for the bloc, after Trump said he would reinstate duties on steel and aluminum next month, effectively canceling an earlier truce. He has also taken a step toward imposing reciprocal tariffs that would harm Europe’s exporters — especially the auto industry. While Brussels has spent the last four years strengthening its toolkit of trade weapons, it wants first to attempt a deal with Trump. POLITICO details the carrots that Brussels could offer in search of a peace deal:Trump’s obsession over America’s €198 billion trade deficit with the European Union is at the heart of his threats to impose hefty tariffs that could cost the bloc billions. However, his simultaneous pledge to “drill, baby, drill” for more fossil gas has raised hopes that European countries can head off the prospect of a trade war by buying more fuel from across the Atlantic — which could also help the bloc reduce its imports of Russian liquefied natural gas (LNG).“Why not replace it by American LNG, which is cheaper for us and brings down our energy prices?” European Commission President Ursula von der Leyen asked in November.In practice, though, EU countries like Germany have queried how much more American LNG the bloc can buy on top of existing volumes. At least one EU country is pitching the idea of a subsidy scheme to make American LNG cargoes more affordable in the name of energy security. But stumping up cash for fossil fuels would be controversial.Meanwhile, industry voices are pushing for the EU package to include pledges not to punish importers of American fuel for methane emissions — given that Trump is poised to slash environmental standards at home, and energy giants could face heavy fines from European countries if they take advantage of the rule changes. Trump’s complaints against the EU center on cars and the bloc’s 10 percent import tax on vehicles. The U.S. has a 2.5 percent tariff, though that rises sharply to 25 percent for light trucks.The president has promised to erect reciprocal tariffs to match those of other countries, and to impose auto tariffs — while his advisers take the controversial view that European value-added taxes represent a de facto tariff that deserves a U.S. retaliation. While it’s unclear whether the auto-specific tariff would come on top of existing tariffs, any new trade barriers pose considerable risk to Europe’s automotive sector, especially Germany’s big three automakers.The most obvious answer would be to lower the bloc’s tariffs to match those of the U.S., an approach that carmaker BMW and Bernd Lange, the head of the European Parliament’s international trade committee, have advocated. Yet under global trade rules, any reduction in EU tariffs would have to apply to all of its trading partners. That would represent a win for China, whose electric vehicle incumbents are desperate for new markets. Following its anti-subsidy investigation, the Commission slapped new duties on made-in-China EVs last year.Because they were enacted as part of an anti-subsidy investigation, those duties would remain in place even if the EU matches the U.S.’s 2.5 percent vehicle tariff, said Sam Lowe, a partner at Flint Global.Officials in Brussels are starting to realize that Trump might not be the China hawk he appeared to be on the campaign trail.The 60 percent tariffs he repeatedly vowed to impose on goods from China quickly turned into 10 percent (while he slapped 25 percent on free-trade allies Canada and Mexico — before suspending them for a month). Trump has also delayed a ban against China’s TikTok app. Trump’s initial softball moves toward Beijing are setting off alarm bells across the EU, which has already taken steps to jointly tackle China’s market-grabbing practices, taking the view that this would better align Brussels with Washington.Šefčovič has already suggested strengthening the EU’s focus on economic security, for instance in overseeing outbound investments in key technologies, such as artificial intelligence, semiconductors or quantum technology. It’s a step that Washington has already taken.In another move that would echo Trump’s first term, Brussels wants to team up with the U.S. in tackling China’s so-called non-market practices, such as lavishing subsidies on companies or excluding Western firms from public tenders.In 2023, Washington and Brussels tried, but failed, to set up a “green” metals club that would impose duties on steel and aluminum imports from non-market economies such as China. If the two sides can agree on the Global Arrangement on Sustainable Steel and Aluminum, that could lay to rest their tariff fight that dates back to Trump’s first term.Getting European countries to buy more American weapons would have the added advantage of convincing the Trump that the bloc is serious about its own security, just as his administration is flirting with the idea of pulling troops out of Europe and has repeatedly called on EU countries to boost their defense spending. The approach has gained traction in Germany and Italy and was floated last November by European Central Bank (ECB) President Christine Lagarde, who said that EU countries could, in a “cohesive” approach, buy weapons systems they can’t make themselves.This idea would, however, likely face resistance in Lagarde’s home country, France, where President Emmanuel Macron is the most vocal proponent of the EU’s “strategic autonomy” and a strong backer of national defense champions like Dassault.Washington meanwhile promised late last week to speed up arms shipments to Europe, acting on years-old frustrations among its allies about the slow process of buying American-made weapons.Despite warnings from Washington, the EU doesn’t intend to veer from its path of regulating major tech companies, most of which are American, and won't be open to negotiating on its tech legislation, according to a senior European lawmaker.The enforcement of the bloc’s three main rulebooks governing U.S. tech giants like X and Amazon — the AI Act, the Digital Services Act and the Digital Markets Act — cannot be used to appease Washington in a trade conflict.Brando Benifei, the chairman of the European Parliament’s delegation to the U.S., said “we cannot accept this approach, because we do not think that our legislation is part of a negotiation.” That’s why the EU isn’t requesting changes to the U.S. policy, he stressed in an interview with POLITICO.Pieter Haeck, Caroline Hug and Giovanna Coi contributed reporting. This story has been updated to confirm Šefčovič’s schedule.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,UK’s Starmer to attend emergency European summit in Paris,https://www.politico.eu/article/uk-keir-starmer-paris-emergency-europe-macron/,"
				French Foreign Minister Jean-Noël Barrot said the “main European countries” would meet on Monday to discuss European security.			U.K. Prime Minister Keir Starmer is expected to attend an emergency summit of European leaders that is being organized for Monday in Paris.French Foreign Minister Jean-Noël Barrot confirmed on Sunday that the ""main European countries"" would meet on Monday in the French capital to discuss European security. He didn't give details or say which leaders have been invited. In confirming he would attend the Paris gathering, Starmer said Europe is at a ""once-in-a-generation moment for our national security,"" according to media reports.  ""It's clear Europe must take on a greater role in NATO as we work with the United States to secure Ukraine's future and face down the threat we face from Russia,"" Starmer said, according to the media reports.Polish Foreign Minister Radosław Sikorski talked about the meeting at the Munich Security Conference on Saturday, saying his country’s Prime Minister Donald Tusk will be heading to Paris. Sikorski said he expects the emergency meeting to discuss the challenges posed by U.S. President Donald Trump.It’s still unclear who else will be attending the Paris meeting. German Chancellor Olaf Scholz and Italy’s Prime Minister Giorgia Meloni have been invited, Bloomberg reported.European Commission President Ursula von der Leyen is scheduled to meet with Keith Kellogg, U.S. President Donald Trump's special envoy for Ukraine and Russia, on Monday in Brussels.Plans for the informal summit come after a week that saw Trump hold a phone call with Russian President Vladimir Putin about peace talks over the war in Ukraine, and an announcement of a face-to-face meeting proposed to take place in Saudi Arabia.Trump officials are heading to Saudi Arabia in the coming days to start the talks. The European Union hasn’t been invited to the negotiating table. Meanwhile, Ukrainian officials aren’t aware of any talks, and no delegation is travelling to Saudi Arabia.Victor Goury-Laffont contributed reporting.“Europe cannot afford to remain reactive,” the European Commission will warn in strategy to be unveiled on Wednesday.State aid rules underpinning the Clean Industrial Deal aim to boost renewable power, decarbonization and clean tech.A European Commission draft sets out ways for governments to subsidize and boost clean-tech investments.The attack at the Clemenceau metro station is the latest in a series of violent incidents rocking the city."
mobility,"Macron calls emergency European summit on Trump, Polish minister says",https://www.politico.eu/article/macron-convenes-european-emergency-summit-in-paris-on-sunday-polish-minister-says/,"
				It was not immediately clear which European leaders would be invited to the emergency meeting. 			MUNICH — French President Emmanuel Macron is convening European leaders for an emergency summit in Paris on Monday, according to Polish Foreign Minister Radosław Sikorski at the Munich Security Conference on Saturday.France has yet to confirm the meeting. There are “ongoing discussions about holding an informal meeting, but nothing has been decided yet,” an official in Paris said.Sikorski said he was ""very glad that President Macron has called our leaders to Paris,"" adding that he expects the European leaders to discuss ""in a very serious fashion"" the challenges posed by U.S. President Donald Trump.""President Trump has a method of operating which the Russians call razvedka boyem —reconnaissance through battle: You push and you see what happens, and then you change your position. ... And we need to respond,"" the Polish minister said at the Munich conference.The Paris meeting will take place on Monday, according to two EU officials.It was not immediately clear whether the meeting would involve all EU leaders, or only a smaller group of countries, and if other European leaders like U.K. Prime Minister Keir Starmer would also be invited.A French spokesperson was not immediately able to comment. French Foreign Minister Jean-Noël Barrot, who was on the panel with Sikorski in Munich, didn’t confirm or deny the emergency summit.Sikorski said later that Polish Prime Minister Donald Tusk will travel on Monday at Macron's invitation to the meeting. ""We need to show our strength and unity,"" Sikorski said in a post on social media. Suzanne Lynch and Antoaneta Roussi contributed reporting.Chancellor-in-waiting Friedrich Merz wants to subsidize German industry. Other European governments worry about unfair competition.Meeting comes amid efforts to reach ceasefire agreement and follows meeting of EU leaders on Thursday.Ekrem İmamoğlu’s detention “is depressing for democracy in Turkey, but it is certainly also depressing for relations between Europe and Turkey,” says German chancellor. A new deal with the Greens could allow for as much as €1 trillion in new spending for defense and infrastructure over the next decade."
mobility,Šefčovič to visit Washington as trade war looms,https://www.politico.eu/article/sefcovic-to-visit-washington-as-trade-war-looms/,"
				The European Commission is trying to head off a transatlantic trade conflict.			MUNICH — EU trade boss Maroš Šefčovič will travel to Washington next week for high-level meetings as Europe braces for a potential trade war with the United States, three officials confirmed to POLITICO.The European Commission executive vice president is poised to hold meetings with senior members of Donald Trump's administration including Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer — who have not yet been confirmed — as well as Kevin Hassett, Trump’s top economic adviser.A European Commission spokesperson later confirmed Šefčovič's trip.The U.S. president unveiled a proposal on Friday to impose reciprocal tariffs on U.S. trading partners which he said would come into effect as early as April. The EU is one of America’s largest economic partners, with more than €1.5 trillion worth of goods and services traded each year. The 27-member bloc runs a trade surplus in goods with the United States, which Trump has frequently criticized. However, the U.S. runs a surplus in services; the overall U.S. trade deficit with the EU was a relatively small €48 billion in 2023.The Commission on Friday denounced Washington’s announcement of new tariffs as “a step in the wrong direction.”“The EU maintains some of the lowest tariffs in the world and sees no justification for increased US tariffs on its exports,” the Commission said in a statement. European Commission President Ursula von der Leyen doubled down on a pledge to take action if the United States imposes tariffs.“We will use our tools to safeguard our economic security and interests. And we will protect our workers, businesses and consumers at every turn,” she said at the Munich Security Conference on Friday.The threat of reciprocal tariffs from Washington comes on top of trade action on steel and aluminum imports announced by Trump last week. The U.S. president hit the European Union with tariffs on steel and aluminum in 2018 during his first presidential term, which prompted reciprocal action from Brussels which imposed tariffs on U.S. products like bourbon and Harley Davidson motorcycles.POLITICO reported last week that top von der Leyen aide Bjoern Seibert has traveled to Washington in recent weeks for talks on avoiding a trade war.Šefčovič, the Slovak commissioner, would be the most senior EU figure to visit Washington since Trump assumed office on Jan. 20.Koen Verhelst contributed reporting.U.S. vice president stunned the audience with his broadside on the way Europe is run.… and he’s running America.Sannino’s departure leaves gap at top of foreign policy wing.As political winds shift on both sides of the Irish border, the diaspora eyes the reunification of Ireland."
mobility,EU warns of ‘immediate’ retaliation against Trump’s reciprocal tariffs,https://www.politico.eu/article/eu-warns-of-immediate-retaliation-against-trumps-reciprocal-tariffs/,"
				Brussels has strengthened its trade defense arsenal since a skirmish in U.S. President Donald Trump’s first term.			AI generated Text-to-speechBRUSSELS — The European Commission fired a warning shot against the United States on Friday, vowing to react “immediately” if President Donald Trump implements tariffs that match those of America’s trade partners.After reinstating this week duties on steel and aluminum, Trump signed a memo Thursday that sets out a process for imposing so-called “reciprocal” tariffs. These would effectively raise tariffs on a country’s exports to the U.S., based on the level of tariffs or non-tariff barriers that country imposes on U.S. goods.“Unjustified tariffs against the European Union will not be left without a response. We will take proportional and clear countermeasures,” EU chief executive Ursula von der Leyen in her first public reaction to Trump’s announcement.Speaking during a security conference in Munich, von der Leyen said that trade wars and tariffs don’t pay off for anyone; that they would drive up costs for consumers and businesses; and disrupt transatlantic supply chains. In an earlier statement, the European Commission said: “The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”Trump’s team has taken particular exception to value-added taxes levied on sales of all goods by European countries — complaining that these add around 20 percent to the 10 percent duty the EU charges on auto imports. The U.S. has 2.5 percent tariffs and no federal sales tax.Since the trade skirmishes of Trump’s first term, the EU has expanded its trade defense arsenal in a way that would enable it to strike back against measures it views as unlawful.Brussels also recalled its attachment to rules-based trade, accusing Washington of undermining its existing commitments. The U.S. has effectively hamstrung the World Trade Organization, having blocked the appointment of judges to its highest appeals court since Trump’ s first term.“For decades, the EU has worked with trading partners like the U.S. to reduce tariffs and other trade barriers worldwide, reinforcing this openness through binding commitments in the rules-based trading system — commitments that the US is now undermining,” the Commission said.This story has been updated with comments from Ursula von der Leyen.Additional reporting by Csongor Körömi.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,The EU’s strategy to counter Trump’s tariffs: An iron fist in a velvet glove,https://www.politico.eu/article/eu-strategy-donald-trump-tariffs-trade/,"
				Brussels has strengthened its trade toolkit since Donald Trump’s first term. But it would need the broad support of EU countries to strike back hard.			AI generated Text-to-speechBRUSSELS — German Chancellor Olaf Scholz says the European Union would be ready to retaliate if Donald Trump imposes tariffs “within an hour.”Not so fast. The U.S. president this week reinstated duties on steel and aluminum that he hit the world with in his first term — and on Thursday announced he would impose “reciprocal” tariffs that could inflict huge harm on the European auto industry. The European Commission, which represents the bloc’s 27 countries on trade, responded by seeking dialogue. Yet should negotiations fail, the bloc claims to be far better prepared than last time around. Its strategy: an iron fist in a velvet glove.“Especially with a personality like Trump, if we don’t react, he’ll trample us,” says Jean-Luc Demarty, who headed the Commission’s trade department during Trump’s first term. “We have all the instruments and we must react effectively on principle. ”Commission President Ursula von der Leyen has vowed a “firm and proportionate” response to the 25 percent U.S. steel and aluminum tariffs. Calling them unlawful, she said that Trump’s protectionist policies “will not go unanswered.” But she also extended an olive branch when she met Vice President JD Vance on Tuesday in Paris, in the first high-level meeting between the two administrations. She called for cooperation in tackling a Chinese steel glut, describing it as a “critical” challenge for the two historic allies.EU trade chief Maroš Šefčovič also urged constructive dialogue in a call on Wednesday with Trump’s designated Commerce Secretary Howard Lutnick and nominee for Trade Representative Jamieson Greer. He won strong support for the Commission’s approach from EU trade ministers at an emergency video call directly after.For now, at least.It’s a balancing act for von der Leyen and Šefčovič as Trump sees red over America’s transatlantic trade deficit. The EU is a net exporter of autos, pharmaceuticals and food to the U.S. But it’s also a big importer of services — and that makes Big Tech a potential target for European retaliation. After the shock of Trump’s first mandate, and nudged by France, the EU has strengthened its trade defense arsenal — first by revamping its Enforcement Regulation, which enables the EU to respond if breaches by partners in trade agreements harm its commercial interests.“Those who say the EU is ill-prepared are wrong: During the past term we have prepared ourselves exactly for a scenario that is unfolding at the moment. Because we have expanded our toolbox, we can now better defend our interests,” said Bernd Lange, a senior lawmaker who chairs the European  Parliament’s trade committee.Its first line of retaliation could be symbolic — reinstating the €2.8 billion in tariffs it imposed in response to Trump’s steel and aluminum tariffs back in 2018, including on Harley-Davidson motorcycles, Levi jeans and cranberry juice. But Brussels knows symbolism alone won’t be enough to deter Trump.“What we did in 2018 was targeting products that don’t hurt us, but hurt them,” said Demarty, who also worked as economic adviser to Jean-Claude Juncker, the Commission president at the time. “Politically symbolic products: Harley-Davidson, bourbon whiskey, corn. I was the one who personally added these products back then. My troops were totally tetanized at the idea of adding such sensitive products,” he added. Another possible leverage is the EU’s regulatory arsenal, especially the bloc’s grip on Big Tech. It’s an area where Washington has skin in the game, with Elon Musk’s X or Mark Zuckerberg’s Meta in the EU’s crosshairs over the tech giants’ content regulation and sharing of data with authorities.As the world’s largest exporter of services, the U.S. could be a prime target for EU retaliation. Here, Brussels could add restrictions on American consulting and financial firms, revoking intellectual property rights, further restricting data flows, or increasing digital taxes on U.S.-based platforms. It was with a Trump 2.0 scenario in mind that the European Commission devised a way to hit back if one of its member states were subjected to economic blackmail, its Anti-Coercion Instrument. “We now see in this Trump administration that coercion may become a standard form of behavior in U.S. trade policy,” said Ignacio García Bercero, who was the Commission’s point person on U.S. trade during Trump’s first term from 2017 to 2021.While the tool was designed to put the Commission in the lead, EU countries sought to ensure they would still get to call the shots in determining whether Washington or Beijing crossed the line, and how any injury should be repaired. A textbook scenario to deploy the tool might be if Trump — with his eye on annexing Greenland — imposes tariffs in a bid to pressure Denmark into surrendering control over the strategic Arctic island.Although it would first have to negotiate with Washington, the EU could then pull the trigger on its trade “bazooka,” with a process that could lead in as little as six months to increasing customs duties on specific goods, imposing quotas or excluding U.S. companies from public contracts in the EU. But that all depends on national capitals — where a qualified majority of 15 out of the EU's 27 member countries would be needed to back the Commission’s proposed course of action. Should that not happen, “there is a fundamental problem with the way the European Union is working,” García Bercero concluded.Put another way, the EU may have equipped itself to fight the last trade war — rather than the next one. For that, argues David Kleimann of the ODI think tank, it needs to create the legal basis for a new tool to respond in real time to a systemic trade threat — like the universal tariffs that Trump threatened on the campaign trail.“This gap can be temporarily addressed through ad-hoc stand-alone legislation once the need arises,” writes Kleimann. “But the time is now for the institutions to consider adding a more robust instrument of general application to its armoury to equip the Union for the coming era of trade wars.”This story has been updated.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Von der Leyen aide held secret talks with Trump team amid trade war,https://www.politico.eu/article/ursula-von-der-leyen-aide-bjoern-seibert-held-secret-talks-with-donald-trump-team-to-avert-trade-war/,"
				Bjoern Seibert visited Washington ahead of high-level contacts between the Commission president and JD Vance.			AI generated Text-to-speechOne of the European Union's most senior officials embarked on a previously undisclosed trip to meet U.S. President Donald Trump's inner circle last week, in a last-ditch effort to de-escalate tension and avoid a full-blown trade war, three senior EU diplomats told POLITICO.Bjoern Seibert, European Commission President Ursula von der Leyen's head of cabinet, held talks in Washington before the U.S. imposed across-the-board tariffs on steel and aluminum, said the diplomats, who were granted anonymity to reveal details of the sensitive visit.Brussels has started working on presenting a package of trade options to the Trump administration, which is likely to include an offer to purchase more American natural gas. The European Commission’s chief spokesperson, Paula Pinho, confirmed the meetings took place “as part of the ongoing contacts with the new U.S. administration” and said Seibert met with members of both the National Security Council and the National Economic Council.Seibert did not immediately respond to a request for comment from POLITICO. Outreach from Seibert came amid preparations for U.S. Vice President JD Vance to sit down with von der Leyen on Tuesday this week in Paris.According to a Commission readout from the closed-door meeting between Vance and von der Leyen, she ""reaffirmed the EU's commitment to a fair trade relationship, while both parties expressed their intention to prioritize economic areas of mutual interest, including energy.""Following the announcement of the tariffs, the Polish Presidency of the Council of the EU called a virtual meeting of the bloc’s 27 trade ministers to agree a strategy which is expected to include sweeping “reciprocal” tariffs that could disrupt the $1.3 trillion transatlantic trade relationship.The EU's diplomatic contacts with the Trump administration have been hindered by uncertainty over who has a genuine mandate to negotiate on behalf of the Oval Office, and the slow pace of appointments to key teams in Washington responsible for maintaining relations with Europe.Earlier this week, Brussels' Trade Commissioner Maroš Šefčovič spoke with Trump’s pick for Commerce Secretary Howard Lutnick, designated U.S. Trade Representative Jamieson Greer and Kevin Hassett, director of the National Economic Council.This story has been updated. The White House is pushing Europe to spend billions more on energy imports. That’s going to be difficult if it blows up the world economy.Brussels should plan for peace with Washington — but prepare for trade war, Prague’s top diplomat told POLITICO.EU officials had hoped to catch Trump’s interest with offers to buy more American gas. Here’s how they hit a wall of bureaucracy and disinterest.In NBC interview, U.S. president threatens to blacklist companies trading with Russia if the Kremlin doesn’t agree to a Ukraine ceasefire."
mobility,Trump’s ‘reciprocal’ tariffs could target EU’s value-added taxes,https://www.politico.eu/article/trumps-reciprocal-tariffs-could-target-eus-value-added-taxes/,"
				President Donald Trump is expected to sign a reciprocal tariff executive order Thursday.
			AI generated Text-to-speechPresident Donald Trump could go after “value-added tax” schemes used throughout Europe as he ramps up tariffs threats against the rest of the world.Such an approach would vastly expand the definition of what is considered a trade barrier, with consequences for U.S. trade relations far beyond Europe. According to the Paris-based Organization for Economic Cooperation and Development, over 170 countries now have a VAT, making it a major source of revenue for governments worldwide.Other major U.S. trading partners with a VAT include China, India, Canada, Mexico and countries throughout Latin America, Africa and Asia.Economists who spoke to POLITICO argue that the idea makes little sense — despite White House assertions that the European tax systems unfairly discriminate against American companies — because VATs are a tax on what consumers buy that treats products equally, regardless of where they are made.“VAT is neutral with respect to trade,” said Erica York, vice president at the Tax Foundation, a policy group. “If you are a person who operates under this ideology where exports are good and imports are bad, a foreign VAT seems like it is discriminatory. But that ignores all the economic effects that VAT has.”Value-added taxes treat domestic and foreign goods the same, unlike a tariff that blatantly discriminates against imports, explained Kimberly Clausing, an economist and former Biden administration Treasury official who is now a professor of tax law and policy at UCLA.Governments who have a VAT are “trying to tax all consumption in their economy, regardless of where it comes from. So because they're taxing the domestic firms, they also have to tax the imports,” she said.Trump has told reporters he plans to move forward this week with a new “reciprocal” tariff scheme, where the United States presumably would match the tariffs imposed by every other country on U.S. exports. And they’ve suggested that they would consider countries’ VATs as tariffs for those purposes.White House press secretary Karoline Leavitt told reporters on Wednesday that she believed the announcement on the new reciprocal tariffs would come before Trump meets with Indian Prime Minister Narendra Modi at the White House on Thursday.“It's very simple logic as to why the president wants to impose reciprocal tariffs,” Leavitt said. “It's the golden rule, which we all learned when we were growing up in school. Treat others the way you want to be treated, and far too many nations around this world have been ripping off the United States of America for far too long.”A few hours later, Trump also indicated he would be signing the reciprocal tariff executive order on Thursday, although he joked to reporters he might do it Wednesday evening instead. The White House did not respond Wednesday to a request for comment on the economists’ criticism of treating VATs like a trade barrier.The administration's VAT rhetoric: The president has kept trade experts guessing over the precise details of his reciprocal tariff plans, but White House deputy chief of staff Stephen Miller hinted over the weekend at the possibility that it could consider non-tariff measures, such as European VATs and European digital services taxes.“Other nations all around the world use the VAT to get an unfair trade advantage against the United States,” Miller said in an interview on Fox News, where he asserted that American cars shipped to Europe are taxed at 30 percent because of a combination of the VAT and a 10 percent tariff. That compares unfairly to the 2.5 percent U.S. tariff on German and other European cars, he said.“This is a major reason why the U.S. auto industry has been getting hammered and hemorrhaging jobs for so long,” Miller said. “It is massively unfair treatment, and the president is making clear that we are going to pursue a policy of reciprocity.”White House trade counselor Peter Navarro, in an interview Tuesday on CNN, confirmed that the reciprocal tariff plan would go after both tariff and non-tariff barriers.But he also suggested that Trump could only start the process this week, rather than immediately implement a reciprocal tariff scheme.Trump’s top economic advisers — Treasury Secretary Scott Bessent, Commerce Secretary nominee Howard Lutnick and U.S. Trade Representative nominee Jamieson Greer — are “going to study the landscape,” Navarro said.“We’re going to look at all of our trading partners, starting with the ones which we run the biggest deficits with, find out if they're cheating the American people, and if they are, we're going to take measures to correct that wrong,” he said.Robert Lighthizer, who was U.S. trade representative in Trump’s first term, also railed against European value-added taxes in his 2023 book, “No Trade is Free.”“A machine that an American company could sell at home for $100 would sell for $125 in France” because of the VAT, Lighthizer wrote. “A machine that a French company could sell at home for $100 could sell in the United States for $75” because of VAT rebates that European companies receive, he added.How VATs work: However, both Miller and Lighthizer are misrepresenting how VATs work, York said. They are actually a tax on domestic consumption, collected incrementally at each stage of the production process, rather than a tax on imports.They are the equivalent of a sales tax system, but the tax is imposed on every transaction in the value chain instead of just when a good is purchased at the retail level. Producers receive a credit for taxes paid at a lower level, but the final person who buys the item essentially ends up paying the full tax on the value of the good, York said.It’s like a consumer in York’s home state of Kansas paying a sales tax on a product they buy. The Kansas consumer pays the same sales tax regardless of whether the product was made in Kansas or nearby Missouri, she said.And if a Kansas company sells a good to a customer in Missouri, that person would not have to pay the Kansas sales tax because the consumption is happening in Missouri, York said.Under Germany’s VAT system, the government collects “a little bit of money at each stage of production, and they're collecting it from the German manufacturers and the dealerships and the customers,” said Ed Gresser, vice president at the Progressive Policy Institute, a Democratic think tank.“In the same way, if you’re buying a European-made car here in Maryland or Virginia, you will pay a sales tax on it, just like if the car is made in the United States,” he said.Implementing reciprocal tariffs: Gresser, an economist who formerly worked for the Office of the U.S. Trade Representative and the Senate Finance Committee, also criticized Trump’s plan to impose a reciprocal tariff system that matches tariffs imposed by other countries.Taken to the extreme, the number of product lines in the U.S. tariff code could explode from around 11,400 now to about 2 million, making it very difficult for customs officials to administer, Gresser said.That’s because each of the world’s nearly 200 countries has a unique tariff system that has developed over the years. Many include products that are not in the U.S. tariff system, involving the creation of new U.S. tariff lines if Trump’s idea is taken literally.Although Trump complains that other countries have generally higher tariffs, the difference between average tariffs rates in the United States and other developed countries is not that great, Gresser said.They are wider between the United States and some big developing countries like India and Brazil. But it’s also true that some foreign tariff levels are lower than U.S. rates.“Japan has a zero tariff on automobiles,” compared to the 2.5 percent U.S. tariff on cars and 25 percent U.S. tariff on trucks, Gresser said. “Is the idea that we need to cut U.S. tariffs if we're going to be reciprocal? Or is the idea that all of the U.S. tariffs that are lower should go up, but none of the higher tariffs should go down?”Even if Trump’s plan matches both the high and low tariffs imposed by every other country, “it doesn't make economic sense,” York added. “It's almost like saying, ‘Hey, we're just gonna outsource our tariff system to reflect whatever other countries do’.”Economists broadly agree higher tariffs encourage less efficient production and raise costs for consumers. So if India has a higher tariff on motorcycles — an example that Trump likes to cite — the United States would be “dumb” to follow New Delhi’s example and raise its own motorcycle tariffs, Clausing said.“If you look back in U.S. history, when the U.S. economy was strongest relative to those in the rest of the world, we often had far lower tariffs,” Clausing said, referring to the period between World War II and the end of the 20th century.Brooke Rollins said countries are “burning” up the phone lines to talk trade.

At issue is a nearly-50-year-old law, the International Emergency Economic Powers Act, that Trump is citing to impose tariffs.The tariffs, which the U.S. will start collecting on April 3, are likely to drive up car prices domestically, dealers warn.The president also said he would be announcing pharmaceutical tariffs in the “not too distant” future."
mobility,EU’s red tape bonfire stokes tech patent rows,https://www.politico.eu/article/eu-cuts-standard-essential-patent-bill-tech-telecom-companies-legal-battles/,"
				A move by the European Commission to kill its standard essential patent rules has alarmed companies that license connectivity technology.			How do you manage to upset carmakers, Big Tech and center-right lawmakers at one stroke?The European Commission's junking of its standard essential patents bill — intended to curb lengthy legal battles over patents in the telecoms sector — has been damned by a key lawmaker as a ""complete mistake"" and mourned by companies that license such patents as ""a terrible signal to innovative businesses.""European tech firms such as Nokia, on the other hand, which depend on licensing connectivity technology to an increasing range of connected devices, have been delighted by the bill's demise. A Nokia spokesperson cheered what they called the end of a ""flawed regulation""; the firm's chief executive had earlier blasted the bill as a ""disaster"" that undermined European research.The bill's withdrawal was part of a larger pruning of red tape within the bloc. Unlike some other proposals that have failed to inch toward agreement, however, its inclusion on the Commission's kill list late on Tuesday was a surprise. The European Parliament has already voted on it and EU governments were due to discuss it later this month.Fierce lobbying had surrounded the bill, which aimed to set guardrails for legal fights over how the patents used in critical technology like the 4G mobile phone standard and wireless internet should be licensed to cars and fridges.Patents can be cash cows, generating huge revenues from licensing technology that becomes an industry standard. Patent owners such as Sweden's Ericsson and U.S.-based chip designer Qualcomm get paid by companies that use their technology in a growing range of smart devices.German center-right lawmaker Marion Walsmann, who steered the file through the Parliament, said the Commission had made “a complete mistake” in dropping a proposal that could have cut costs and litigation risk for smaller businesses.“This is not just a missed opportunity, but a real slap in the face for European companies,"" she said. Walsmann blamed “pressure from a small number of very influential companies, mostly from third countries,” which “has brought the Commission to its knees.”The Fair Standards Alliance — which represents patent users such as Amazon, Apple, BMW and Ford — was “stunned by the Commission’s decision to abruptly scrap” the proposal, warning that it “sends a terrible signal to innovative businesses that depend on predictable and fair SEP licensing,” according to its secretary general, Evelina Kurgonaite.Car parts manufacturer Continental warned that the current licensing environment forces it to  ""accept licensing terms for technologies such as 4G no matter how unfair."" Carmaker Volvo and Dutch electronics manufacturer Fairphone also expressed dismay.Fairphone Chief Executive Raymond van Eck said the proposal had been a potential ""lifeline for SMEs — without it, they are left defenseless in a minefield of opaque negotiations, legal threats, and exploitation by patent assertion entities.""On the other side, patent holders at IP Europe — including Nokia, Ericsson, Qualcomm and Orange — welcomed the Commission efforts as ""encouraging research and development, innovation, and growth,"" adding that ""the innovations and open standards that we champion are part of the solution.""The Commission said Tuesday that it would withdraw the proposal in the next six months because “no foreseeable agreement” was forthcoming. It said it would assess whether to submit another proposal or find another approach.Walsmann said the Commission's rationale was “completely false, as the Council has already scheduled several working group meetings specifically on this dossier.”Asked about the withdrawal at a Wednesday press conference to present the Commission’s work program, Trade Commissioner Maroš Šefčovič and the European Union’s simplification chief, Valdis Dombrovskis, drew a blank. A spokesperson promised to come back with an answer later.Koen Verhelst and Max Griera Andreu contributed reporting to this article.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.The EU is set to fine Apple and Meta for rule breaches in the coming days.The Commission’s first fines under its Digital Markets Act are expected this week.The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports."
mobility,"Climate change threatens EU’s survival, German security report warns",https://www.politico.eu/article/climate-change-eu-germany-bnd-report-security-global-warming/,"
				Global warming will exacerbate conflicts, hunger and migration worldwide, with growing risks for Europe.			BRUSSELS — Global warming represents an existential threat to the European Union, according to a landmark German government report. Germany’s federal intelligence service (BND) teamed up with researchers and the country’s foreign office to draw up a first-of-its-kind assessment of the dangers climate change poses to German and European security over the next 15 years. The report, published Wednesday, shows that climate change’s destabilizing effects will drive up migration and food prices, threatening economic and political upheaval in Europe. The authors also warn that the unequal impact of rising temperatures in the EU — with southern countries hit worse than others — risks tearing the bloc apart. “Southern EU member states, in particular, will not only experience severe economic losses due to climate effects, but will also feel the consequences of political instability in their geographical vicinity,” the report reads. “Tensions resulting from unequally distributed burdens might weaken cohesion within the EU as well as both its ability to act and its future viability,” it adds. The so-called National Interdisciplinary Climate Risk Assessment — drawn up by the BND, the Bundeswehr University Munich, the Potsdam Institute for Climate Impact Research and think tank adelphi — has a wide scope, tackling climate change’s effects on food security, migration, economic prosperity, global conflict, trade tensions, extremism, military mobility and more. “This publication spells it out: Anyone thinking about security needs to think about climate as well,” German Foreign Minister Annalena Baerbock writes in the report’s foreword. “Every tenth of a degree less in global warming makes our lives safer.” BND chief Bruno Kahl described climate change as “one of the five major threats our country is facing,” listing the others as Russian aggression, China’s geopolitical ambitions, cyber threats and international terrorism. The most straightforward threat to European security comes from increasing disasters and extreme heat at home. As global temperatures increase, so do the frequency, severity and intensity of flood-triggering extreme rainfall, deadly heat waves, harvest-destroying droughts and the conditions that allow wildfires to spread easily. This will remain the case for the coming decades even if the world makes deep cuts to planet-warming emissions.The authors also note that once global warming passes 1.5 degrees Celsius above pre-industrial levels, there’s a growing risk of reaching so-called tipping points leading to irreversible and abrupt changes — such as the collapse of Atlantic Ocean currents that would cool down Europe significantly. For now, current policies have the world on track for 2.7 degrees Celsius of warming, and emissions are still rising. Climate disasters not only represent a growing threat to European lives, but also come with  a hefty price tag for reconstruction and economic losses. That will “lower the potential for investments in national and European resilience and security,” the report notes. Drought, for example, is already hitting farmers hard, while forcing power plant shutdowns when cooling water becomes scarce. But low river levels in Europe have also restricted transport, with “repercussions for economically and militarily relevant supply chains,” the authors warn. And speaking of the military — “personnel, infrastructure and equipment will be exposed to more extreme climate conditions in the future,” the report notes. “Ships, aircraft and combat vehicles that are planned and built today will be operating in the climate conditions of 2040.” The report also warns that green policies will cause tensions, noting that carbon pricing — the backbone of EU climate efforts — disproportionately affects poorer households. “In Germany and Europe, the cost of decarbonisation and its (perceived) unfair distribution … provide space for populism, right-wing and left-wing extremism, and disinformation campaigns,” the authors warn, calling on European governments to ensure climate efforts are “socially responsible.” Despite the risks to European unity, the continent is better equipped to deal with the consequences than poorer countries elsewhere. But the impact elsewhere will have ripple effects for European security. Crop failures and droughts, as well as other harvest-wrecking disasters, will cause more people to go hungry around the world, exacerbating conflict and displacement, while also driving up food prices in Europe. Growing water scarcity, too, has the potential to cause conflict within and between countries, the report says. Conflicts threaten global supply chains and increase calls for European aid, putting more strain on public purses and the economy, which “may cause tensions at domestic political level” within the EU, the authors write.And inevitably, climate change will also drive people from their homes, as extreme heat and humidity push people to seek more temperate climates.  “These include Germany and other parts of the European Union,” the report notes.The consequences of climate change “are aggravating conflicts over ever scarcer resources which are destabilising states and societies and forcing countless people to leave their homes. They are also having an ever greater impact on us in Europe,” Baerbock said.“That makes this crisis the biggest security challenge of our time.” Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities."
mobility,"EU trade chief calls Team Trump, urges dialogue as tariff tensions escalate",https://www.politico.eu/article/sefcovic-aims-for-call-with-trumps-trade-boss-ahead-of-eu-minister-debrief/,"
				“Cooperation is our preferred option,” is the line from Brussels as Trump’s tariffs threaten to kick off transatlantic trade war.			AI generated Text-to-speechBRUSSELS — The European Union’s top trade official stressed the bloc’s commitment to constructive dialogue in a first call with his U.S. counterparts on Wednesday, ahead of an emergency meeting of the bloc’s ministers to discuss how to respond to President Donald Trump’s imposition of tariffs on steel and aluminum.Trade Commissioner Maroš Šefčovič spoke with Trump’s pick for Commerce Secretary Howard Lutnick, designated U.S. Trade Representative Jamieson Greer and Kevin Hassett, director of the National Economic Council, his spokesperson Olof Gill confirmed.“Cooperation is our preferred option. So, we remain committed to constructive dialogue and finding negotiated solutions, while protecting the EU interests — the same way the U.S. is protecting theirs,” Gill said in a statement. “The counterparts have agreed to meet soon.”The EU executive, which is in the lead on trade policy for the bloc, vowed on Tuesday to respond to what it called the “unlawful” U.S. tariffs in a firm and proportionate manner. Commission President Ursula von der Leyen also met with Vice President J.D. Vance on Tuesday.The Polish presidency of the Council of the EU called a virtual meeting of the bloc’s 27 trade ministers to brief them on how the Commission will respond to Trump’s trade offensive, which is also expected to include sweeping “reciprocal” tariffs that could severely disrupt the $1.3 trillion transatlantic trade relationship.Lutnick, yet to be formally confirmed as Commerce secretary with strategic oversight over trade policy, has also threatened to go after EU business regulations like its supply-chain oversight rules. After his nomination, Lutnick said it would not make sense to put tariffs on products that the U.S. doesn’t produce domestically.This story has been updated with comment from the European Commission.Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen."
mobility,All flights to and from Belgium canceled on Thursday,https://www.politico.eu/article/all-flights-to-and-from-belgium-canceled-on-thursday/,"
				Air traffic controllers are joining a national strike to protest Belgium’s budget reform.			BRUSSELS — All commercial flights to and from Belgium on Thursday have been canceled as air traffic controllers plan to join a nationwide strike against the new government.The controllers' walkout will begin at 6:45 a.m. and lasts until 10:15 p.m., public broadcaster RTBF reported, halting all air traffic below 7,500 meters at Brussels, Charleroi, Liège, Antwerp and Ostend airports.The cancelation of all departing flights from Brussels and Charleroi was announced on Monday due to a planned walkout by baggage handling and security staff.The ACV Transcom union later announced that air traffic controllers would also protest in solidarity with other workers most affected by the Belgian government's new plan to cut costs in public services, including a pension reform.Rescue and medical flights will continue operating during the strike.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”"
mobility,EU vows ‘firm and proportionate’ response to Trump’s tariffs,https://www.politico.eu/article/von-der-leyen-vows-firm-and-proportionate-answer-to-trumps-tariffs/,"
				“Unjustified” 25 percent tariffs on steel and aluminum “will not go unanswered,” says European Commission President Ursula von der Leyen.			BRUSSELS — European Commission President Ursula von der Leyen vowed on Tuesday to take “firm and proportionate” measures after United States President Donald Trump announced tariffs on imports of steel and aluminum overnight.“Tariffs are taxes — bad for business, worse for consumers,” von der Leyen said in a statement.The “unjustified” 25 percent tariffs on steel, aluminum and reciprocal tariffs on other products “will not go unanswered,” she said.Trump expanded his steel and aluminum tariffs to cover all imports, effectively canceling earlier tariff deals with the European Union, the United Kingdom, Japan and others.But after meeting Trump’s Vice President JD Vance in Paris on Tuesday, von der Leyen struck a more nuanced tone, calling the meeting “a good discussion on our shared challenges as allies.” She also hinted at cooperating on global overproduction of steel, mainly coming from China. The Commission has been ready to woo Trump over a coordinated approach on dealing with Beijing.“From security and stability to the great promise of technology and the critical challenge of non-market overcapacity,” she said.Non-market overcapacity is trade lingo for China and a host of other countries making more steel than the EU requires, often assisted by state aid that Europe, the U.S. and Japan cannot offer. Vance, in turn, called for a “a security partnership” that works for both sides.When Trump announced the tariffs formally on Monday night, he called them “a big deal. This is the beginning of making America rich again.”Back in 2018, when Trump first imposed tariffs on steel and aluminum imports, the EU responded by slapping its own premiums on Harley Davidsons, jeans, lighters, cranberry juice and bourbon. The two sides subsequently de-escalated that fight and the tariffs were suspended.Addressing the European Parliament, the EU’s top trade official, Maroš Šefčovič, denounced the latest tariffs as “a lose-lose scenario.”“By imposing tariffs, the US will be taxing its own citizens, raising costs for its own business, and fueling inflation,” Šefčovič told European lawmakers in Strasbourg, adding they would have “disruptive effects” on the global trading system. Both Von der Leyen and her trade chief assured the response will come soon. “We are currently assessing the scope of the measures announced overnight,” Šefčovič said. “[We] will be responding in a firm and proportionate way by countermeasures.”According to figures from Eurofer and German steelmakers, the bloc sends about 20 percent of its output to the U.S. That would get hurt by tariffs, at a time when steel giants in Europe are scaling down under pressure from across the globe.Overall, the EU is the U.S.’s third-largest source of steel and aluminum combined. Trump’s tariffs are expected to enter into force on March 12.This story is being updated.Giovanna Coi contributed to this report.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
mobility,European carmakers in crossfire of US-EU trade war,https://www.politico.eu/article/european-carmakers-crossfire-united-states-europe-trade-war/,"
				German automakers would face increased costs while already under pressure from heightened competition.			AI generated Text-to-speechBRUSSELS — U.S. President Donald Trump’s promise to implement new tariffs this week matching those of other countries would hit the EU’s automotive sector hardest in an escalating transatlantic trade war.Trump frequently cites Brussels’ higher tariffs on vehicles as a source of his ire — the bloc charges a 10 percent import tax on vehicles compared to the 2.5 percent levied by the U.S. On top of that, senior Trump administration officials complain, is Europe's value-added tax of around 20 percent — bringing the total cost to 30 percent.Any Trump tariffs would hit Germany’s automakers the hardest. The big three German firms accounted for 73 percent of the 820,000 units exported from the EU to the U.S. last year, according to research platform JATO Dynamics.“We have millions of cars coming in, BMW and Mercedes-Benz and Volkswagen and just so many different cars. And we don’t do anything about that,” Trump told reporters on Feb. 3, in his strongest direct warning to Europe’s top carmakers.As Trump’s trade war unfolds at speed on multiple fronts, he has already imposed a 10 percent across-the-board import duty on China while suspending 25 percent tariffs against Mexico and Canada for a month. Germany’s carmakers would also be harmed by any tariffs against Mexico as many have substantial production there.Any increased costs on EU carmakers will put further pressure on an industry already facing declining market share in China and low demand in Europe.“We are deeply concerned about the possible imposition of tariffs by the U.S,” said Sigrid de Vries, secretary-general of EU car lobby ACEA. “Instead of tit-for-tat tariffs, the EU and U.S. should work together for a grand bargain to avoid a potential trade conflict.”The lobbying group started the year calling for European lawmakers to preemptively strike a deal with Washington to avert a trade war. BMW has gone a step further, saying the bloc should lower its tariffs to match those of the U.S. in an effort to appease Trump — and lower its own export costs.BMW has a large footprint in the United States, manufacturing the bulk of its X-series SUVs at its Spartanburg, South Carolina plant, which it then exports to the rest of the world.Such a proposal, however, would be a gift to China.Reciprocal U.S. tariffs would take a wrecking ball to the most-favored nation (MFN) principle that has underpinned the post-World War II trading system. Under it, countries that are members of the World Trade Organization extend their lowest tariffs on a particular good to all of their trading partners.If the EU offers to cut its tariffs on cars to 2.5 percent from 10 percent, it would have to offer the same MFN terms to Chinese manufacturers — undermining the additional duties it imposed last year on made-in-China electric vehicles after an investigation found evidence of huge state subsidies.“It would be a big present for countries like China that we would be reducing our duties without getting anything in return. This would go against the whole philosophy underlying tariff negotiations,” said one Brussels-based trade lawyer, who was granted anonymity due to the sensitivity of the issue.With European carmakers in the firing line, Trump’s other protectionist moves on trade are likely to throw manufacturing economics out of whack on both sides of the Atlantic. He has also flagged 25 percent tariffs on imports of steel and aluminum — likely adding to input cost pressures in the U.S. while diverting excess supply of the metals to Europe.Worse, potentially, is a complaint already aired by senior Trump administration officials that European VAT amounts to an additional barrier on U.S.-made autos.“Did you know when you ship a car from the United States to Europe, if they let it in at all because they have many nontariff barriers, that between the VAT and duties, that car is taxed at 30 percent?” White House deputy chief of staff Stephen Miller told Fox News on Monday.“The German car — or a European car sent to America is taxed at 2.5 percent — or basically zero. This is a major reason why the U.S. auto industry has been getting hammered and hemorrhaging jobs for so long,” Miller added. “If they want to be charged less than 30 percent, they’re going to have to lower their barriers, so that it’s fair and equal and, yes, reciprocal treatment.”VW subsidiary Porsche exports all of its models from the EU to the U.S., where it sold a record 76,000 cars last year, making it the brand’s largest market. Under pressure in other regions, especially China, the automaker is in discussions to oust its CFO and head of sales before their contracts expire.Audi, another VW brand, similarly exports all of its models to the U.S. from Europe, with the exception of the Q5 that is produced in Mexico.While the U.S. is a bright spot for Porsche, Audi saw its sales dwindle 14 percent last year compared to 2023. Any additional costs will just eat away at their profit margins and exacerbate the problems plaguing parent company Volkswagen.Audi has one option that eludes Porsche, however, and that is shifting production of its Q4 to the U.S. where Volkswagen makes its electric ID.4.“It’s essentially the same car, and they have capacity,” said Matthias Schmidt, a European auto analyst.As for Trump, if he is sincere about reciprocity, he would have to cut the 25 percent tariff on light trucks that the United States has levied since Lyndon B. Johnson was president. The duty is the main reason why U.S. automakers still dominate the domestic market for pickup trucks, with the Ford F-Series once again the top seller last year.Giovanna Coi contributed reporting. This story has been updated.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,EU airlines slam Qatar aviation deal amid corruption allegations,https://www.politico.eu/article/eu-airlines-question-qatar-aviation-deal-corruption-allegation/,"
				An aviation lobby wants “full transparency and a legal investigation” into the open skies deal with Gulf state. 			AI generated Text-to-speechBRUSSELS — Europe's top airlines are questioning the validity of the EU-Qatar aviation deal after allegations of corruption in its preparation, according to a letter to the European Commission seen by POLITICO.The European Network Airlines Association (ENAA), a lobby representing Lufthansa and Air France-KLM, among others, sent the letter to the Commission's transport department DG MOVE on Feb. 3.The document calls it “alarming” that the European Public Prosecutor's Office opened a criminal investigation into Henrik Hololei, the former director general of DG MOVE. The Estonian official reportedly passed confidential information to Qatar in exchange for luxury vacations and gifts for himself and his family.He left his post in March 2023 after POLITICO revealed that he accepted free flights on Qatar Airways while his team negotiated the aviation deal with the Gulf state.In a comment after the report, Hololei said he had acted in accordance with the rules. The allegations have the airline lobby questioning the open skies deal with Qatar.In its letter, the ENAA called for “full transparency and a legal investigation … to clarify if the validity of the Agreement can be upheld.”The Commission did not immediately respond to a request for comment on the ENAA letter.The prosecutor's office did not comment on the state of progress on the investigation into the former DG MOVE director.The lobby also objected to what it called a “continued lack of financial transparency from Qatar” in meeting its obligations under the aviation agreement, which includes rules on fair competition between European airlines and Qatar Airways.The letter said when Qatar was asked about Qatar Airways' financial situation and possible violations of the rules, “Qatar has only submitted unsubstantiated written answers, without any solid evidence.” It called Qatar's most recent responses in November “self-declarations.”“The European Commission must therefore act now to ensure that compliance with the Agreement is safeguarded,” the ENAA added, calling on DG MOVE to invoke an article of the aviation deal requiring Qatar to provide “the necessary evidence that it respects the Agreement's fair competition obligations within 30 days.”The EU-Qatar air transport agreement was signed in 2021 and announced as a “new global benchmark by committing both sides to fair competition, and by including social and environmental protection.”It allows  EU airlines to operate direct flights from any airport in the bloc to Qatar and vice versa for Qatari airlines.The Gulf state has been accused of subsidizing Qatar Airways with public funds, something European airlines can't do. The state-owned airline rejects those accusations, but EU carriers feel that the Commission hasn't been strict enough in enforcing the open skies deal.“It remains unclear to me to what extent the transparency and fair trade clauses in the agreement have been enforced with Qatar,” said Wouter Dewulf, an air transport economist at the University of Antwerp. “Qatar Airways and Doha Airport are the primary beneficiaries of this agreement,” he said, while very few European airlines are taking advantage of the deal to operate out of the Doha hub. “Many European airlines, such as KLM and Lufthansa, have been forced to scale back their networks to the east due to increasing competition from Middle Eastern carriers.”The ENAA letter comes after Lufthansa on Dec. 5 directly asked European Commission President Ursula von der Leyen to “immediately” suspend the agreement.In January, Air France-KLM CEO Benjamin Smith called for the deal to be revoked because it gives Qatar Airways full access to the European market, while EU airlines have no market in Qatar.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”"
mobility,EU vows to react to Trump’s ‘unlawful’ tariffs,https://www.politico.eu/article/france-calls-on-eu-to-react-to-trumps-tariffs-threats/,"
				A truce on a 2018 trade dispute on steel and aluminum between Brussels and Washington is set to lapse at the end of March. 			AI generated Text-to-speechThe European Commission on Monday pledged to react to U.S. President Donald Trump’s threatened imposition of 25 percent tariffs on steel and aluminum, slamming them as “unlawful” and “counterproductive.” “By imposing tariffs, the U.S. would be taxing its own citizens, raising costs for business, and fueling inflation. Moreover, tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets,” the Commission said in a statement.Trump, flying to the Superbowl on Sunday, told reporters he would announce the tariffs on Monday and further “reciprocal” tariffs on Tuesday.Imposing the tariffs is likely to trigger a forceful reaction from Brussels. Steel and aluminum are at the center of an unresolved dispute between Washington and Brussels dating back to 2018, when Trump imposed tariffs that were later suspended.The EU’s retaliatory tariffs on bourbon whiskey, motorbikes and cranberry juice were paused during the Joe Biden administration. The truce is expected to lapse on the European side at the end of March. Labeling the tariffs as unlawful is paving the way for the EU to respond according to its usual rulebook, including by launching a challenge at the World Trade Organization or deploying safeguard measures. France, meanwhile, already urged Brussels to react to Trump’s threats, with French Foreign Minister Jean-Noël Barrot telling the European Commission that “the time has come.”The European Commission “has assured us that it would have been ready to pull it out when the time came. The time has come,” he said. “We should not hesitate when defending our interests.”Just moments before Trump vowed to hit steel and aluminum imports, German Chancellor Olaf Scholz said that the EU can act “within an hour” if Trump makes good on his tariff promises.Robert Habeck,  Germany's economy minister and challenger as chancellor candidate from the Greens, said Monday that “the export-oriented German economy benefits more than almost any other from open markets.”""I therefore view the tariff announcements with concern,"" he said, following a phone call with the EU trade chief Maroš Šefčovič.The bulk of U.S. steel and aluminum imports come from Mexico and Canada, leaving those two countries mostly at risk of Trump’s imposition of the 25 percent levy. In 2023, the U.S. mostly imported its steel from Canada, Mexico and Brazil, according to the U.S. Department of Commerce. Canada, the United Arab Emirates and China are its biggest aluminum suppliers. However, the reciprocal tariffs flouted by Washington as soon as Tuesday are set to put specific industries in the crosshairs, including the EU’s car industry as well as its agriculture and pharmaceutical sectors. Trump’s vice-president J.D. Vance and European Commission President Ursula von der Leyen are expected to meet on Tuesday in Paris on the margin of an AI summit, marking the first official meeting between the two administrations since Trump took over as U.S. president. Hans von der Burchard and Giovanna Coi contributed reporting.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Von der Leyen to host CEOs after unveiling EU’s economic plan,https://www.politico.eu/article/von-der-leyen-to-host-ceos-after-unveiling-eus-economic-plan/,"
				Leaders from the bloc’s biggest companies will convene in Antwerp for the Feb. 26 event.			European Commission President Ursula von der Leyen will present her plan to revive the European Union’s flagging economy to over 300 industry leaders in Antwerp on Feb. 26, multiple attendees confirmed to POLITICO.The afternoon will feature several back-to-back sessions and occur shortly after von der Leyen officially releases the Clean Industrial Deal — her overarching plan to ensure EU industries remain competitive with the United States and China.For von der Leyen, the event will offer a chance to convince prominent European executives that Brussels can address their complaints about excessive, overlapping and confusing regulations — not to mention the high energy prices manufacturers say are crippling their business models.Von der Leyen is also under pressure to show that U.S. President Donald Trump’s regulatory bonfire abroad won’t leave EU countries fighting an unfair battle with transatlantic competitors.The attendees will be from companies that signed the Antwerp Declaration — a cross-sector call launched in February 2024 pressing Brussels to make competitiveness central to its work after last June’s EU election. As the brainchild behind the declaration, chemical lobbying group Cefic is organizing the gathering, which will start at 1 p.m. and likely last until 6 p.m.Thus far, von der Leyen has heeded the industry appeal. Since launching her second five-year term last year, the EU’s top executive has doggedly injected the word “competitiveness” into nearly every speech. Her first major initiative was even dubbed the “Competitiveness Compass.” Choosing to host CEOs right after launching her most highly anticipated proposal of the year will only strengthen that theme.At the February event, von der Leyen will open with a keynote address before hosting a roundtable with some of the EU’s most prominent CEOs, said an attendee who was granted anonymity because they were not authorized to speak publicly.The rest of the attendees are expected to break into separate groups for other roundtables with multiple European commissioners in attendance.The Commission declined to comment on the event.“As per usual practice, we will announce the agenda of the President for that week only closer to the date,” a spokesperson said in a statement.Aude van den Hove, Eddy Wax, Victor Jack and Francesca Micheletti contributed reporting.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,EU hires Trump-linked lobbying firm to survive trade war,https://www.politico.eu/article/eu-hires-donald-trump-lobbying-firm-to-survive-trade-war-election-victory-bloc-member-countries/,"
				DCI Group has worked with sanctioned organizations, the Azeri government and oil companies.			AI generated Text-to-speech
				This article is also available in: French			BRUSSELS — European Union diplomats in the United States have hired a prominent Republican-linked lobbying firm with ties to the first Donald Trump administration to advise on trade and investment communication strategy, according to documents seen by POLITICO. “DCI Group AZ, L.L.C, shall advise the Delegation of the European Union to the USA on communications and public engagement strategy for external stakeholder audiences, with an emphasis on promoting EU trade and investment in the United States,” said the form, filed to the US Foreign Agents Registry (FARA) on Nov. 1, 2024.The filing came days before Trump’s Nov. 5 election victory, as the bloc’s 27 member countries scrambled to understand whether he would follow through on campaign threats to throw up a protective tariff wall around the U.S. market. So far he has hit China with universal import duties of 10 percent, while giving Canada and Mexico stays of execution on even higher tariffs. He hasn’t yet targeted the EU directly, but has called its trade policy an “atrocity” and wants the continent to buy more American gas, cars and farm products. The EU’s top trade official, Maroš Šefčovič, has yet to meet Trump administration officials.DCI Group said it had signed a contract with the EU delegation, serving under the auspices of the bloc’s diplomatic service, in Oct. 2024, according to the FARA disclosure, which is required of any group taking on work to further the interests of foreign governments. Hiring a well-connected lobbying outfit follows experiences dating back to Trump’s first term, when the EU delegation lacked access to administration officials and had to rely on national embassies to get a clearer idea of their thinking.“The D.C. delegation has been accused of intelligence failure in the past,” said one former European trade diplomat, granted anonymity due to the sensitivity of the matter. DCI Group might not be able to open doors at the highest level, but would at least be able to explain what is actually going on, and provide introductions to movers and shakers in the Republican party, this person said.When asked if the EU delegation hired DCI Group preemptively to deal with a second Trump presidency, the bloc’s diplomatic service did not respond.It’s unclear how long DCI Group will have the contract with the EU delegation and how much the diplomatic service has paid the lobbying firm for their work. When those questions were put to the European External Action Service, the EU’s diplomatic service, they said: “The EU Delegation in the U.S. engages different resources to advance public outreach across the United States. DCI is currently advising the Delegation on public communication with an emphasis on promoting EU trade and investment in the United States.”When asked, the EEAS declined to to say if it had worked with DCI Group previously. DCI Group is well known in Washington. In the middle of his 2016 campaign, Trump hired its former president, Jim Murphy, as his national political director. Since it was founded in 1996, DCI Group has also worked on behalf of the military junta in Myanmar, Azerbaijan’s interests in the U.S., and industries ranging from tobacco, telecoms, hedge funds and energy firms.The Department of Justice is currently investigating a sprawling criminal case related to the hacking of climate advocates, which occurred allegedly at the behest of DCI Group for Exxon Mobil, one of the firm’s biggest clients at the time of the alleged hacks.Neither company has been accused of wrongdoing by U.S. authorities, and both denied any awareness of or involvement with the hacking. “The firm has not been accused of any wrongdoing,” said Craig Stevens, a partner at DCI Group, in a written statement. “We direct all our employees and consultants to comply with the law.”According to the DCI’s latest filings to the U.S. Senate’s lobbying disclosure, the firm works for EN+ group, an aluminum producer that appeared on a list of 38 Russian entities sanctioned by the U.S. in response to Russian interference in its elections, violence in Ukraine, cybercrimes, and for supplying Syria with weapons. The sanctions against EN+group were lifted in 2019.Among DCI Group’s other clients was SCM Consulting Limited, an entity owned by Ukraine’s wealthiest man, Rinat Akhmetov. The oligarch was accused by President Volodymyr Zelenskyy of staging a coup in Ukraine, which Akhmetov called “an absolute lie.” DCI Group did not disclose the amount for the contract in the public document. Asked to comment on the duration, scope and precedent for such a contract, DCI Group declined to comment. Asked how the firm would manage potential conflicts of interest with its mission to represent the EU’s interests, DCI Group again declined to comment.Douglas Busvine contributed reporting.This story has been updated.Four employees from the Chinese tech giant have been represented before judges in recent days.Three Huawei employees and a managing director from Brussels conference organizer Forum Europe were represented in court.OLAF chief Ville Itälä defends his agency’s handling of a tip on Huawei, now under investigation in Belgium.It’s EPPO’s first suspension and internal investigation into allegations of prosecutor misconduct."
mobility,Brussels metro reopens as police continue to hunt shooting suspects,https://www.politico.eu/article/shooting-in-brussels-disrupts-metro-as-police-hunt-suspects/,"
				Subway had been shut down between European Quarter and Anderlecht during underground manhunt. 			The Brussels metro faced severe disruption Wednesday morning after a shooting near Clemenceau station in Anderlecht around 6 a.m. triggered a major police manhunt. The Brussels prosecutor's office told POLITICO in the early afternoon that a massive search was underway, but so far no one has been arrested and the investigation is continuing. The prosecutor added that there was ""no indication of a terrorist motive"" in the shooting.The metro reopened in early afternoon after widespread interruptions all morning affecting the lines running to the European Quarter, according to a statement by underground network operator STIB. Law enforcement had said that the suspects may be in the metro tunnels, according to a local media report, and several stations were closed in the morning. ""A shooting took place. The images from the surveillance cameras show that the suspects fled towards the Clemenceau metro station,"" Sarah Frederickx, spokesperson for the Brussels South police, told POLITICO. ""For security reasons we had to shut down the metro line. There are no victims.""SNCB, Belgium's national railway company, said: ""The impact is mostly located on the metro lines.""This story has been updated.Hipster beer and pub food in a conveniently central location. Key adviser to U.S. President Donald Trump signals he will make the French far-right standard-bearer a new cause célèbre.As International Olympic Committee president, she will be the most powerful sporting official on earth — and is set for regular encounters with U.S. President Donald Trump. The clip features a song with the lyrics: “Donald Trump will set you free, bringing the life for all to see, no more tunnels, no more fear, Trump Gaza is finally here.”"
mobility,Where are the pain points of a transatlantic trade war?,https://www.politico.eu/article/eu-us-trade-war-donald-trump-tariffs-imports-exports-numbers/,"
				Trump calls the EU an “atrocity” for running a huge trade surplus with the U.S., but that largely overlooks America’s massive services sector.   			It’s happening: Donald Trump has launched his global trade war — and has Europe in his sights.After slapping tariffs of 10 percent on China, the United States president called the European Union an “atrocity” on trade and said he’d “definitely” impose duties on imports from the bloc.Trump’s threats have sent Europeans scrambling for a response. While the European Commission vowed “firm” retaliation, some European leaders have tried to strike a conciliatory tone, with German Chancellor Olaf Scholz offering an “outreached hand” to solve outstanding disputes.The impending trade war is a major headache for the EU: The bloc is a major exporter to the U.S., and tariffs would deal a significant blow to European companies and consumers.But while it’s a truism of trade spats that everyone loses something, some sectors — and countries — stand to lose more than others. We crunched the numbers to find out who is most at risk:The U.S. is the EU’s top commercial partner, with total trade in goods and services exceeding €1.5 trillion in 2023.Trump has repeatedly taken aim at the EU’s allegedly “unfair” trade practices, blaming them for America’s large deficit with the bloc, which amounted to some €157 billion in 2023. However, when services are taken into account, this deficit is offset substantially. The U.S. enjoyed a €109 billion surplus in services with the EU, thanks mainly to professional and management services, intellectual property and financial services.Should Trump slap blanket tariffs on all imports from the EU, car and machinery manufacturers and pharma companies would be the most affected.The EU exported more than €90 billion worth of vehicles to the U.S. in 2023 — a sore point for Trump, who lamented that EU countries “send cars to us by the millions” but “won’t take our foreign products, and they don’t take our cars.”That claim is not entirely correct. The EU bought nearly €14 billion-worth of U.S. vehicles in 2023 — which is admittedly far fewer than it sold.If the Commission were to deliver on its promise to retaliate against U.S. levies, it would find itself in a pickle.As part of its plan to phase out Russian energy imports, the EU has increasingly relied on the U.S., which is now the bloc’s second-largest gas partner and largest supplier of liquefied natural gas. The Commission would have to choose between hitting the U.S. where it hurts and preserving the bloc’s energy supply. Some countries would suffer the impact of a trade war more than others. Germany, Italy and Ireland alone accounted for more than 50 percent of exports to the U.S. in 2023.Tariffs on cars — which were narrowly avoided during Trump’s first term — would deal a potentially fatal blow to European (and specifically German) automakers, who are already dealing with lower sales and concerns over a possible flood of Chinese cars into the EU.What’s more, many of these companies have operations in Mexico — another target of Trump’s trade wrath. Should those tariffs take effect, they would face the expensive prospect of shifting production to the U.S.The EU’s options are limited and unappealing.EU countries could opt for a truce, offering to buy more U.S. liquefied natural gas and boosting their defense spending, or get tougher on China — which would potentially trigger another trade war with the bloc’s second-largest partner.Alternatively, the EU could retaliate by imposing its own tariffs, like it did during Trump’s first term. But studies have shown it might end up hurting itself in the process.Whatever happens next, Trump is dead set on waging a war he believes he can win — and Europe doesn’t seem adequately prepared to stop it.European trade officials sure know how to have fun.World continues to get hotter. EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month.As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. "
mobility,China hits back at Trump’s tariffs and complains to the WTO,https://www.politico.eu/article/china-hits-back-at-trumps-tariffs-and-calls-on-the-wto/,"
				Chinese measures won’t take effect until Feb. 10, leaving Donald Trump and Xi Jinping time to defuse their growing trade war.			AI generated Text-to-speechBeijing struck back on Tuesday after U.S. President Donald Trump imposed 10 percent tariffs against China, announcing levies of 15 percent on U.S. liquefied natural gas and coal, and 10 percent on crude oil, farm equipment and some autos.Beijing also set further export controls on rare metals, and announced an anti-monopoly investigation into Google, the search engine owned by Alphabet, and a number of other U.S. companies. The Chinese measures will take effect on Feb. 10, leaving time for Trump to talk to President Xi Jinping about how to avoid further trade escalation. The U.S. president on Monday suspended higher tariffs against Canada and Mexico for 30 days after Prime Minister Justin Trudeau and President Claudia Sheinbaum pledged action to shore up U.S. border security.While the U.S has applied tariffs across the board for Chinese goods, China’s response was cautious in comparison, only applying levies to specific imports. Beijing also filed a complaint to the World Trade Organization (WTO), invoking its dispute settlement procedure. “The U.S.’s unilateral imposition of tariffs seriously violates the rules of the World Trade Organization,” read a statement from the finance ministry. “It is not only unhelpful in solving its own problems, but also damages the normal economic and trade cooperation between China and the U.S.”Trump told reporters in the Oval Office on Monday that his trading partners want to avoid U.S. tariffs, and “in all cases, they all want to make deals.”Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. Brussels should plan for peace with Washington — but prepare for trade war, Prague’s top diplomat told POLITICO.Why let penguins have all the fun? "
mobility,EU risks fragile unity by whacking China to woo Trump,https://www.politico.eu/article/eu-fragile-unity-woo-china-trade-us-donald-trump-tariffs/,"
				Leaders are negotiating their response to the U.S. president’s tariff threats.			AI generated Text-to-speechBRUSSELS — Europe’s leaders are searching for an offering to get U.S. President Donald Trump to spare the EU from his global trade war — and that could mean provoking a battle with China.Trump last week threatened to make good on his campaign promise to slap 25 percent tariffs on Mexico and Canada, before walking back on the threats on Monday after securing border-related concessions from both countries. Meanwhile, he threatened to impose a 10 percent levy on Chinese goods. The EU worries it could  be next. Over the weekend, Trump called the bloc an “atrocity” on trade.As a way of wooing Washington, pressure is building within the EU to harden the bloc’s trade stance toward China. It’s a wager that taking on Trump’s biggest foe will keep Europe out of the tariff firing line.Just last week, EU trade chief Maroš Šefčovič floated the idea of teaming up with Washington to “deal with the joint challenges coming from China’s non-market policies.” It was the first time Brussels has explicitly linked its policy toward Beijing with an effort to keep Trump on side. Despite Trump’s recent actions, there is still a preference in Brussels for sticking with the alliance with America.“If the U.S. starts a trade war, then the one laughing at the side is China. We are very interlinked, we need America and America needs us as well,” said Kaja Kallas, Europe’s top diplomat, on her way into a meeting of European leaders on Monday. But opening a front against Beijing could be a dangerous miscalculation as it might undermine Europe’s credibility in future negotiations and fracture EU unity, warned Agathe Demarais, senior policy fellow at the European Council on Foreign Relations.“Given the high level of divergence across EU member states on how to approach relations with Beijing, there is virtually zero chance that the bloc could adopt measures that would prove strong enough to appease Trump in the field,” said Demarais, adding that the EU’s policies “are unlikely to impress Trump much.”EU countries have widely different approaches toward China. Lithuania was hit by a Beijing boycott for maintaining relations with Taiwan, while Germany is deeply entwined despite the bloc’s overall strategy of de-risking by lessening dependence on China.China is the EU’s second-largest trading partner, just after the U.S., with bilateral trade reaching €739 billion in 2023; Germany accounted for €250 billion of that.That’s led to big problems in holding a unified stance against China. When the European Commission slapped duties on made-in-China EVs last year, Berlin led a coalition of countries with strong industrial ties to China in a failed effort to block the duties.Rather than rush to join Trump in bashing China, the bloc should “keep quiet but build up counter-measures,” said François Godement, a resident fellow on the U.S. and Asia at the Paris-based Institut Montaigne think tank.“Don’t counter-provoke because that would only feed the public social media mud-slinging contest,” he said, particularly given the power Trump ally and adviser Elon Musk has as the owner of social media platform X in swaying public discourse. “Don’t insult and don’t grandstand.”Ketrin Jochecová contributed to this report.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,Donald Trump says trade wars are easy to win. Is that true?,https://www.politico.eu/article/donald-trump-says-trade-wars-are-easy-to-win-are-they/,"
				How do tariffs actually work? How far will this conflict escalate? Can Europe escape? We answer all your burning questions. 			AI generated Text-to-speech
				This article is also available in: French			BERLIN — Donald Trump makes light of trade wars, claiming they are easy to win. We’re about to find out if he’s right.The U.S. president has imposed tariffs of 10 percent on China from Tuesday, while Mexico and Canada won last-minute stays of execution on 25 percent tariffs. He’s also threatening to hit the European Union — a major exporter of cars, medicines and food to the United States.Trump says he wants to use the tariff weapon to halt the flow of fentanyl and illegal migrants across the northern and southern borders of the United States. To do so he has invoked emergency powers — even though the U.S. economy is growing strongly and is at full employment.He also wants to close the $1 trillion U.S. trade deficit with the rest of the world. Team Trump argues that throwing up a tariff wall will force companies to move investment and jobs back to the U.S. — think of all those silicon chips now made in Taiwan or iPhones made in China.But critics warn that Trump’s trade war will result in higher prices, lower growth, lost jobs and disrupted supply chains — both at home and abroad. They also argue that tariffs are the wrong tool to fix a trade deficit caused by America’s borrowing and consumption habits.Here’s what Trump’s trade war is all about:First up, a trade war isn’t an actual war: It’s a conflict that results when one side feels that a trading relationship is unfair. Let’s say you flood my market with cheap steel, at prices below the cost of production. Companies in my country are going to the wall. They are laying off workers. My voters. That’s dumping and, under the rules of global trade, I can retaliate by imposing tariffs on your steel.For a trade conflict like this to turn into a trade war, things need to escalate. And that’s what is happening here: Trump is still threatening to hit America’s closest trading partners with tariffs on pretty much everything. That means we could be about to embark on the biggest trade war since the 1930s.Trump claims that his new tariffs will make Americans rich — he’s even promised to set up a new External Revenue Service to collect all the revenues that they throw off. He also says foreign companies will pay them and that they won’t hurt U.S. consumers.That’s not how they work, however. Tariffs are a tax that is paid by the importer at the border. If they go up, the importer faces a choice — to pass on the price increase to the consumer, or to accept a squeeze on their profit margins.Price increases from Trump’s across-the-board tariffs would show up immediately in consumer inflation, economists say. And although he has promised to offset their impact with tax cuts elsewhere, there is no sign of that happening yet.As for the potential revenue from tariffs, Trump likes to hark back to the late 19th century, when tariffs accounted for over half of U.S. federal revenues. But that was before income tax — which today supports a government much larger in relation to the overall economy. There is just no way that tariff revenues can pay for a modern state.In Trump’s first term. He imposed 25 percent duties on steel and 10 percent on aluminum in 2018 — while the European Union responded by slapping $6 billion in tariffs on Harley Davidson motorbikes, Levi’s jeans and bourbon.Trump threatened to escalate by hitting imports of European cars — but it never came to that. Eventually, the tariffs were suspended by both sides. The EU truce expires at the end of March, meaning that even if Trump doesn’t hit Europe with tariffs now, their trade dispute could still get out of hand.The clearest precedent is likely the so-called Nixon shock of 1971. The starting point was comparable to today: The costs of the Vietnam War and of the Great Society policies of the 1960s had tipped the United States from surplus into deficit.In an attempt to restore the balance, President Richard Nixon abolished the gold standard — forcing the trading partners of the U.S. to revalue their currencies. He ordered a 90-day freeze on wages and prices. And he imposed a 10 percent import tax.Nixon’s actions are considered to have been a political success but an economic failure. The import tax was scrapped within months. And the U.S. economy struggled for years with stagflation — a combination of low growth and high inflation — that was only squeezed out of the system in the 1980s by Federal Reserve Chair Paul Volcker’s tough monetary policies.China. Although Trump has only threatened to hit China with tariffs of 10 percent, the tariffs still hanging over Canada and Mexico are indirectly aimed at Beijing.That’s because, under the USMCA trade accord (the successor to NAFTA), Chinese companies — e.g. makers of electric vehicles — would normally enjoy duty-free access to the U.S. market if they locate production in North America.In recent years there has been bipartisan consensus in Washington on the need to fight back against China and its economic model, which has created vast industrial overcapacity and has flooded world markets with surplus production. Since taking office, however, Trump has dialed back the rhetoric, saying he just wants a “fair” trading relationship with China.One thing to watch: Will Trump drop the tariffs against America’s allies if they agree to align with the United States in shutting out China? That’s one straw the European Union is clutching at in the hope of keeping the transatlantic peace.Trump, in his second incarnation as U.S. president, has shown no inhibitions in questioning the territorial integrity of other nations — jibing that Canada should become the 51st U.S. state or staking a claim to Greenland, a protectorate of EU member Denmark.A greater concern is that, in playing fast and loose with international law, Trump is playing into the hands of leaders — like Russia’s Vladimir Putin — who want to overturn the status quo. In a world where multiple fires are burning, Trump is liberally splashing gasoline and tossing matches to start new ones.The U.S. president has been amping up his rhetoric, on Sunday night calling the EU an “atrocity.” Brussels is desperate to engage, offering to buy more U.S. liquefied natural gas or weapons as Trump presses European governments to spend more on defense.Last time, Brussels answered Trump’s steel and aluminum tariffs by retaliating against motorbikes, jeans and bourbon — measures targeted to cause maximum pain in Republican strongholds. The EU could do the same again — or wield its trade “bazooka,” the anti-coercion instrument, which would put retaliation on a stronger legal footing. Experts worry, though, that the anti-coercion instrument may be too slow, because it foresees a period of consultation before action. The EU needs a new, bigger bazooka that can be fired in real time, they argue.Trump is, for the first time, invoking emergency powers under the 1977 International Emergency Economic Powers Act (IEEPA), so far only used by Joe Biden to impose sanctions against Russia over Putin’s war against Ukraine. The IEEPA hasn’t yet been used to justify tariffs — and it’s possible that business groups which suffer financial injury as a result will take legal action. It’s unlikely, however, that a judge would issue an immediate injunction against the tariffs. Any litigation would likely be drawn out.The U.S. Congress might also have the power to halt Trump’s trade war. On top of the doubtful justification that fentanyl and illegal immigration represent an economic emergency, the legislature has also delegated broad responsibility for trade policy to the president — it first did so to Franklin D. Roosevelt back in 1934 — and can take it back.But with both the Senate and the House of Representatives under Republican control, a major rift would have to open up on trade to stop him in his tracks. And that looks unlikely right now.Then there’s the World Trade Organization — a global body created 30 years ago to act as an umpire in trade disputes. It’s currently unable to fulfil that role, however, after both Trump and Biden blocked the appointment of judges to its Appellate Body, or highest court of appeal.For Trump there are no rules. It’s the law of the jungle out there. So unless there is a strong political or judicial backlash in the United States against his trade war, he will be hard to stop. Then again, he might just do a deal.This story has been updated.European Union joins China, Japan, Taiwan and Korea in U.S. President Donald Trump’s trade sin bin.The European Commission is seeking feedback on a 99-page hit list and respondents have until March 26 to reply.The first meeting since a bombshell call between Donald Trump and Vladimir Putin puts joint hydrocarbons projects back on the agenda — as Ukraine watches from the sidelines. German automakers would face increased costs while already under pressure from heightened competition."
mobility,Elon Musk’s Tesla showroom defaced with swastikas in the Netherlands,https://www.politico.eu/article/tesla-elon-musk-showroom-the-hague-swastika-anti-nazi-graffiti/,"
				Tech billionaire continues to attract vitriol after his controversial salute at Donald Trump’s inauguration party. 			AI generated Text-to-speechVandals sprayed swastikas and anti-fascist slogans on a Tesla car showroom in The Hague on Sunday night in a jab at owner Elon Musk, who is an adviser to U.S. President Donald Trump and faced outrage for delivering a ""Nazi salute"" last month.The perpetrators defaced the building's facade with slogans like ""No to Nazis"" and ""Fuck off fascist,"" and drew swastikas on the entrance door of the building, echoing a similar incident that took place in Berlin last week.During that protest, political activists projected an image of Musk's stiff-arm salute and the word ""Heil"" onto the Tesla factory just outside the German capital. The police have started investigating the matter.Dutch police in The Hague did not immediately respond to POLITICO's request for comment. Musk's salute at the Trump inauguration party immediately generated a viral and divided response, with online critics attacking the tech billionaire for the gesture and supporters minimizing its significance. Musk defended himself online, denouncing the attacks as “dirty tricks” from his opponents. “The ‘everyone is Hitler’ attack is sooo tired,” he said.Musk has also expressed his support for the far-right Alternative for Germany (AfD) party in recent months, interviewed party leader Alice Weidel on his X social media platform ahead of the Feb. 23 national election and controversially urged Germans to forget their ""past guilt"" right before Holocaust memorial day.World continues to get hotter. Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.The European Commission also recently unveiled its own preparedness strategy for citizens, while Russia’s war on Ukraine grinds forward. Critics say the bill would discredit NGOs that receive any kind of foreign funding."
mobility,"The EU cheers, but Mexico fears, their new trade accord. Why? Donald Trump.",https://www.politico.eu/article/eu-trade-cheers-mexico-fears-new-trade-accord-donald-trump-tariffs/,"
				Brussels celebrates its new friendships. But Mexico, in the firing line of the U.S. president’s tariffs, has every reason to stay quiet.			BRUSSELS — The European Commission’s trade department took a victory lap. The Mexican government was silent.It was a strange way to announce the renewal of a bilateral trade deal that had been years in the making. But the timing, on Jan. 17 — three days before Donald Trump was sworn in for a second term as U.S. president — said it all.In Brussels, chief executive Ursula von der Leyen and trade czar Maroš Šefčovič were keen to demonstrate that the European Union — under fire from Trump over a yawning transatlantic trade deficit — has other friends it can trade with. The Mexico update followed a major deal with South America, another win with Switzerland, and the revival of talks with Malaysia.But for Mexico, facing Trump’s threats to impose 25 percent tariffs across the board along with Canada, there was no reason to shout news of the EU accord from the rooftops. Trump last Saturday issued an order to hit Mexico with those tariffs, affecting imports worth $500 billion, only to suspend them on Monday for 30 days. Economists at EY estimate that, if they enter force, they would cause Mexico’s economy to shrink by 1.6 percent this year and by 4.5 percent in 2026, with inflation rising due to a weaker peso and higher import costs.“Trade relations with the United States are already tense, and perhaps announcing a Mexico-EU deal in January would not have been well received,” said Cesar Guerra, Mexico’s former chief negotiator on the EU deal. Guerra now represents MexChamEU, a business group, which he said was “pleased with the conclusion of the negotiations.”Despite the commotion across the pond, Šefčovič has defended the decision to make the announcements on the deal right before Trump took office. Speaking to European lawmakers last Wednesday, he said that the EU “had to seize the momentum, take a chance, and go for it.”Carlos Mota, a senior economic journalist, confirmed the fears in Mexico City over Trump’s resolve to reassert U.S. dominance in global trade and eradicate the structural trade deficit — even at the expense of its closest trading partners. “The Mexican government does not want to announce or celebrate it because of potential U.S. tariffs. Here in Mexico, European diplomats are very puzzled about this,” Mota, a columnist for El Heraldo de Mexico, told POLITICO before Trump’s weekend tariff order. There’s more to the puzzle. President Claudia Sheinbaum told her daily press conference on Jan. 22 that “the work continues, and there is still no final agreement; everything must align with our plan, the Mexico Plan, which focuses on strengthening production within Mexico.” Sheinbaum won election last year as Mexico’s first woman president on a progressive ticket. Her Mexico Plan aims to create 1.5 million jobs — putting national development ahead of opening up to foreign investment. So, while the EU stands to gain greater access to the Mexican market in the modernized trade deal, the country’s nationalized energy sector remains out of bounds.Her comments caused confusion on both sides of the Atlantic, but European Commission trade spokesperson Olof Gill confirmed afterwards that official deal documents would be published within days.Guerra also believes that the texts are indeed ready, “but it’s difficult to be published when the other party is taking some time to assess the implications. The Mexican government has not made any announcement about concluding the negotiations.” Borja Giménez Larraz, an MEP overseeing the deal on behalf of the European  Parliament, acknowledged the uncertainty surrounding Mexico’s position but emphasized the European Commission’s confirmation that the deal has been finalized. “It is understandable that Mexico faces this situation with caution. But, at the same time, I believe that finalizing the agreement just three days before Trump's inauguration reflects the urgency of diversification,” Larraz, from the European People’s Party, told POLITICO.Diversifying its trading relationships won’t come easy for Mexico, whose free-trade agreement with the U.S. and Canada Trump has just blown up. Its economy is deeply intertwined with that of its northern neighbor, with bilateral trade reaching nearly $800 billion in 2023, according to U.S. Census Bureau figures.Still, on the EU side, Larraz is confident that formalities will go smoothly. With negotiations officially closed, according to the Commission, the agreement should now undergo legal scrubbing. A vote by the 27 EU countries is expected in late spring, with the Parliament’s green light in September.This story has been updated.Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.As the European Commission plans levies of up to 25 percent on many exports from the U.S., it holds an olive branch in one hand and its Anti-Coercion Instrument in the other. Brussels should plan for peace with Washington — but prepare for trade war, Prague’s top diplomat told POLITICO.Why let penguins have all the fun? "
mobility,UK urged to probe spate of Chinese flights for forced labor,https://www.politico.eu/article/new-china-uk-freight-routes-likely-carrying-forced-labor-goods-warns-david-alton-uyghurs/,"
				Three new routes connecting China’s Xinjiang province to major U.K. airports have opened up since last summer.			AI generated Text-to-speechLONDON — A flurry of new cargo flights from China’s Xinjiang province to Britain may be trafficking goods made with forced labor, the U.K. government is being warned.Three brand-new routes connecting Xinjiang — at the center of international human rights concerns over the treatment of the Uyghur ethnic group — to major U.K. airports have opened up since last summer.It's prompted demands for an investigation from the head of the British parliament's cross-party human rights committee, who fired off a letter to the U.K. government earlier this month — and is considering calling freight bosses to give evidence in Westminster.“I fear that these routes are being used to bring goods made with forced labor into the U.K.,” said David Alton in a Jan. 17 letter to Home Office Minister David Hanson, seen by POLITICO. The fresh trade routes all sprang up in 2024, and come amid increased popularity for a host of Chinese e-commerce platforms in the U.K. European charter airline Titan Airways operates what has been billed as the first direct route between Xinjiang and London. Data shows that flights run every one to two days. The route, which became operational in December, specializes in e-commerce cargo.European Cargo meanwhile launched a new direct route from Xinjiang to Cardiff airport in October. It flies three times every week, and deals primarily with e-commerce cargo. It was launched last year with talk of a “milestone flight” carrying 59 tons of e-commerce packages.The same cargo carrier also expanded its operations, connecting Xinjiang to Bournemouth airport last August, with four flights per week. Also specializing in e-commerce goods, it carried 58 tons in its maiden voyage.Both Titan Airways and European Cargo have issued statements saying that they comply with the U.K.'s Modern Slavery Act, which requires firms to be vigilant and report on steps to guard against forced labor in their supply chains. European Cargo declined to comment when approached by POLITICO, and Titan Airways did not respond to a request for comment.Alton’s human rights committee is now weighing up whether to call in cargo carriers using these routes to give evidence in an ongoing forced labor inquiry.The e-commerce imports, flown into Stansted, Cardiff and Bournemouth, are “most likely tainted by Uyghur forced labor,” Alton wrote to the Conservatives’ Shadow Foreign Secretary Priti Patel in a separate letter. He sent a similar letter to Conservative Leader Kemi Badenoch, whose constituency neighbors Stansted airport.It comes as pressure mounts on U.K. ministers to crack down on forced labor in international supply chains. This month Alton’s committee launched an inquiry into forced labor, and has been pressing the government to update laws. MPs on the House of Commons business and trade committee are also preparing to push for stricter regulations.Some British lawmakers argue that the U.K.’s Modern Slavery Act 2015 — passed by the Tories — lags behind similar measures in the EU and United States.The U.K. “lacks a forced labor due-diligence screening mechanism compared to our partners in Europe and the USA which has the Uyghur Forced Labor Prevention Act,” Alton said in his letter to the Home Office.Under the current law, U.K. firms making more than £36 million must file an annual report about how they’ve prevented modern slavery in their operations.The Home Office’s Border Force “does not routinely assess whether goods on freight entering the U.K. may have been made using forced labor,” Minister Hanson said in a parliamentary reply to Alton this week. But he insisted: “The government encourages businesses to monitor their global supply chains with rigor, uncover and remedy any instances of modern slavery they may find.”It is a government “failure” that Border Force isn’t required to check imports for using slave labor, Alton said in an interview with POLITICO. “The U.K. has opened itself up as a dumping ground,” he warned.That view was echoed by China-watchers in the U.K., who have long warned about Beijing's treatment of the Uyghurs people. China has detained Uyghurs at camps in the northwest region of Xinjiang, where there have been allegations of torture, forced labor and sexual abuse. The Chinese government claims the camps carry out “re-education” to combat terrorism.“Without a forced labor screening regime, the U.K. is fast becoming a dumping ground and potentially a re-export market for goods made with Uyghur forced labor,” said Sam Goodman of the hawkish China Strategic Risks Institute think tank.“The U.K. should have no direct imports from the Uyghur region,” warned Chloe Cranston, a supply chain expert at Anti-Slavery International. “Due to the scale of the persecution and the systematic nature of state-imposed forced labor across the Uyghur region, we have to presume all products made in the Uyghur region, whether factory or farm, are very likely made with Uyghur forced labor,” she added.New airfreight routes connecting Xinjiang to the U.K. show a “critical need for import controls,” Cranston added.The U.K. government needs to take forced labor seriously, Alton said. “It’s like semaphore. It’s all dependent on the signals you send.”A system allowing firms to claim back EU tariffs imposed on U.S. imports is “not fit for purpose,” says Northern Ireland’s deputy first minister.POLITICO delves into the frenetic tactics Britain was — and still is — employing to win a carve-out from Donald Trump’s tariffs. No one yet knows if the president will listen.“We are not at the moment at a position where we want to do anything to escalate these trade wars,” says top finance minister Rachel Reeves.Britain’s GDP faces a 1 percent hit in the most extreme scenario modeled by the Office for Budget Responsibility."
mobility,Slovak PM’s meeting with von der Leyen axed amid Brussels air traffic control chaos,https://www.politico.eu/article/meeting-between-slovakia-robert-fico-and-ursula-von-der-leyen-canceled-brussels-fog/,"
				Robert Fico was due to discuss his gas transit dispute with Ukraine with EU leaders.			AI generated Text-to-speechA plane ferrying Slovak Prime Minister Robert Fico to Brussels for a meeting with European Commission top brass was turned around as a result of a technical problem that closed Belgian airspace on Thursday.Fico was due to arrive in Brussels to meet Commission President Ursula von der Leyen. The pro-Kremlin Slovak leader has been embroiled in a high-profile spat with the European Union and with Ukrainian President Volodymyr Zelenskyy over Kyiv’s decision to halt Russian gas transit through Ukraine. Slovakia — and Hungary — wanted to extend a deal that allowed them to continue importing Russian fuel through Ukraine, but Kyiv rebuffed their requests.A spokesperson for Brussels Airport said the airspace over the EU capital was closed for around an hour on Thursday afternoon due to an unspecified technical problem with air traffic control.A Commission spokesperson confirmed the Fico meeting would be postponed, but did not say to when.Fico was also scheduled to meet with Europe's Energy Commissioner Dan Jørgensen.""As usual, man makes up his mind and God changes his mind,"" Fico told reporters on the plane back to Bratislava in a video posted on his Facebook page.Fico said he planned to return to Brussels on Monday to attend an informal European Council summit, but in addition to meeting EU leaders, he would also try to talk one-on-one with von der Leyen and Jørgensen about a gas deal. ""The issue is of enormous importance,"" Fico said.Earlier this week, Fico had called Zelenskyy an “enemy” of Slovakia due to the gas transit dispute.MAGA’s biggest cheerleaders struggle to justify “Make America Wealthy Again” measures.Decision in Yerevan paves the way for a long and winding (and potentially fruitless) quest toward a place in the bloc.Romania, one of the last EU members not included in the Visa Waiver Program, had been due to join in March.German and Finnish authorities have taken similar steps, and Belgium is planning to do the same, as the Trump administration removes some protections for sexual minorities. "
mobility,EU decorum cracks over green agenda,https://www.politico.eu/article/eu-decorum-cracks-over-green-agenda-trade-climate-action-agriculture/,"
				Normally taciturn officials spar online over climate policy and reveal a deep split within the EU.			AI generated Text-to-speechIt was the Brussels equivalent of pistols at dawn.Pious adherence to public unity — a watchword among European Commission officials — was briefly cast aside Tuesday in a mild spat between the current head of the EU’s climate department and its former trade lead.While the exchange was a gourmet meal compared to the dry food the EU executive typically serves in public, it was far more notable for what it revealed about a raging debate over the past five years of fervent environmental regulation: The Brussels elite was openly quibbling over what was recently unimpeachable climate orthodoxy.Tuesday’s dispute took place in the polite environs of LinkedIn. The Commission’s current Director General for Climate Action Kurt Vandenberghe had posted that with the U.S. stepping back from climate action, the EU’s strong green laws “may turn out to be a great asset to attract investment.”This was too much for Jean-Luc Demarty, who led the Commission’s trade department for most of the last decade and the agriculture department before that. Demarty called the argument “not serious.” Green industries were not about to arrest the EU’s decline against overseas competitors, he said.Even worse, the EU’s goal to zero out emissions by 2050 was “not doable” without killing key industries like car manufacturing and agriculture, added the Frenchman, whose roots are deep in the Champagne region’s farming industry. “People are waking up. They don’t want your irrealistic dream becoming their nightmare,” Demarty concluded.Vandenberghe’s riposte was swift and laden with statistics outlining the enormous cost burden that fossil fuels represented for the economy. The EU spends more than €1 billion a day importing coal, oil and gas, he pointed out. Backing old industries risked turning all of Europe into “one big Charleroi” — a reference to a deindustrialized city south of Brussels. “Does Europe want to own its future (and invest) or rent it (and continue spending as before)?” Vandenberghe asked. “Yes, climate action has a cost. The cost of non-action is higher.” The exchange raised eyebrows. Two lifetime eurocrats having it out in public was “not usual,” said an EU official, who has worked with both men and spoke on condition of anonymity. “But it is both funny and healthy.”The timing was salient. For the last five years, the EU has favored top-down regulation to tackle problems like climate change and biodiversity loss. Now, the top political priority for leaders across the bloc is keeping industries alive. Deregulation is du jour. On Wednesday, the Commission presented a sweeping set of reforms that mentioned “simplification” 17 times, often in connection to green legislation.Some of this is viewed as a necessary streamlining. But “existing laws are in danger of being weakened, under the guise of simplification,” warned Mohammed Chahim, the vice president of the Socialist group in the European Parliament, also on LinkedIn.It’s not just the EU. On Wednesday, U.K. Chancellor Rachel Reeves told environmentalists to “stop worrying about the bats and the newts” as she rolled out her own program for economic growth. ""We are reducing the environmental requirements placed on developers when they pay into a nature restoration fund... they can focus on getting things built and stop worrying about the bats and the newts,"" Chancellor Rachel Reeves saysFollow live https://t.co/w9c4HFDNVS pic.twitter.com/QnYkhPzwDdDemarty’s intervention revealed the level of frustration among some in EU circles who believe the green agenda has been mismanaged and who sense the time for a correction has come. “We are clearly at the turning point,” Demarty said during a phone call on Wednesday. Demarty was keen to affirm his “loyalty” to the Commission and said he broadly supported its efforts to contain climate change. He also conceded he is “not a specialist” in this area.However, he said he had been particularly “triggered” by Vandenberghe’s assertion that the EU’s green agenda was a competitive advantage. He said Trump’s expected rollbacks in the U.S. meant the EU would be forging forward alone on environmental issues, disadvantaging its traditional industries while doing little to impact the planet's health.Why, he asked, would the EU disadvantage itself, especially when it emits only 6 percent of global greenhouse gases?“I take the experience of agriculture, which is one of my specialties,” he said. “In agriculture, the EU is alone to act where the rest of the world is not acting.”This is a point of dispute. The Commission’s “Competitiveness Compass,” released on Wednesday, maintained that clean industries were the EU’s pathway to economic renewal. Vandenberghe did not respond to an invitation from POLITICO to comment. “Having great respect for your leadership at the Commission, I would welcome constructive solutions” he said on Tuesday to Demarty.“Let us continue our dialogue in private,” the Frenchman demurred.Decorum had been restored.Europe and Washington will come together at a time when their leaders are radically divided on energy and climate policies.“Clearly we need a bit more time,” says Climate Commissioner Wopke Hoekstra.Downing Street is worried about rising energy bills. Every option for bringing them under control could bring political pain.The European Commission wants to keep a 90 percent emissions-cutting target but to change how countries calculate their progress."
mobility,What’s in von der Leyen’s plan to save the EU economy?,https://www.politico.eu/article/wheres-the-eu-competitiveness-compass-pointing/,"
				We analyzed every line of Brussels’ Competitiveness Compass proposal (so you don’t have to).			AI generated Text-to-speech
				This article is also available in: French			The European Commission’s Competitiveness Compass plots a course — or a “growth strategy,” according to Commission President Ursula von der Leyen — for policymakers to follow over the next five yearsIt’s a dense 27-page document crammed with recommendations to get the European Union’s economy going.We’ve boiled down the main points and explained where they’re heading.Von der Leyen told reporters she’d had a “very clear signal from the European business sector that there is too much complexity” in EU regulation, much of it stemming from new climate-related laws.A move to simplify legislation for sustainable finance, due diligence and taxonomy rules — the “omnibus package” — will be the first of several, she said, promising these will ultimately save companies €37 billion a year by 2029. The plans have alarmed climate campaigners and others that Brussels’ new deregulation agenda might prioritize innovation and growth over the environment and echo conservative demands, including a mention of allowing e-fuels to keep combustion engine cars alive, and the “simplification” of a carbon border tax.Von der Leyen insisted that the European Union was “staying the course on the objectives of the European Green Deal” and that climate targets wouldn’t change. The Commission even rearranged some paragraphs while drafting the Compass to emphasize innovation and decarbonization.The green transition of traditional industry and the expansion of new, climate-friendly technologies are at the heart of the Competitiveness Compass. More detailed measures on how to achieve that are expected in next month’s Clean Industrial Deal, due Feb. 26.The Commission will, as expected, also focus on “resource efficiency and boosting circular use of materials” — signaling that niche sustainability topics like recycling and eco-design are highly strategic. We knew the Circular Economy Act would not land before 2026, and the Compass confirms the Commission’s plans for the last quarter of that year.Bowing to carmakers’ pleas for leniency over looming fines for failing to hit new emissions targets, the document promises “immediate solutions to safeguard the industry’s capacity to invest, by looking at possible flexibilities.”What that means will be negotiated during a strategic dialogue with the automotive industry that kicks off Thursday. Car lobby ACEA estimates that the industry will pay €15 billion in fines if the Commission doesn’t act.Industry Commissioner Stéphane Séjourné pushed for the language to be included over the objections of Climate Commissioner Wopke Hoekstra, said an EU official privy to the discussions and granted anonymity because they are not authorized to comment.European companies pay significantly more for electricity and gas than do their U.S. and Chinese counterparts. That’s a problem, and von der Leyen is keen to fix it. Her plan, in short, is to invest in more grids and connect them up, and also change how contacts are made and fees are charged.That costs money — and so far there isn’t much of that. The EU also can’t wave a wand and make some of its other preferred reforms happen overnight.Still, the ambition is there, which has encouraged energy and industrial lobby groups. But the vital details are still to come: For starters, an Affordable Energy Action Plan is due at the end of February.Von der Leyen said improving competitiveness means “that we really have to focus more on breakthrough innovation and breakthrough technologies.” She promises a startup and scaleup strategy as well as a “broad AI strategy for our continent.”U.S. President Donald Trump’s $500 billion artificial intelligence infrastructure plan and the emergence of a cut-price AI model, China’s DeepSeek, show that the global AI race is on. The EU wants to get in the game and needs computing power, cloud infrastructure and access to data, the document said.The Commission has already doled out funding for AI factories and AI-optimized supercomputers. It plans to follow that up with a cloud and AI development plan to enable the training of very large AI models, a plan expected late this year or early next. It will separately try to address the feeble adoption of AI by companies (only 13 percent of businesses are using the tech so far). An Apply AI strategy due later this year aims to fix that.Taking action means lots of tech action plans, with von der Leyen promising strategies for advanced materials, quantum, biotech, robotics and space technologies, all “components of the markets of the future.”The EU plans to make it easier for businesses to access private funding by making progress on the long-discussed but never-completed capital markets union, now rebranded as the Savings and Investment Union.In concrete terms, that means the EU investment programs will be wider and the European Investment Bank will be asked to offer more public guarantees, loans and even investments in equities, starting with a new fund to help companies buy growing businesses or to support their going public.The EU’s executive is also working on a 28th business code that offers an alternative to fragmented national systems and will cover “aspects of corporate law, insolvency, labor, and tax law.”While the Compass promotes better coordination of national government investments, it lacks a clear plan on other common sources of money. It does, however, pave a way for countries to repurpose regional funds — often used to build schools and bridges — for critical technologies.This is only a taster of what’s to come. Von der Leyen supported linking public funding under the next budget from 2028-2034 to implement key economic reforms that will make countries more competitive.Governments could favor Made-in-Europe goods via planned public procurement reforms, potentially a powerful boost for local companies and an irritant for trading partners since such tenders account for 14 percent of the EU’s gross domestic product. Like the carbon border tax or deforestation regulation, it may amount to protectionism in all but name.The EU executive also plans to set up an industry platform for buying strategic raw materials. The bloc is dependent on imports of scarce minerals such as the lithium used in electric vehicle batteries — where industry leader China dominates both supply and processing.Competition policy is “an important lever,” the compass said, pitching a review of merger guidelines to take account of innovation and “investment intensity” in strategic sectors. The steel and metal industry will get an action plan this spring that will cover investment, inputs and the use of trade defense measures against cheap imports. The chemicals industry will get a similar plan near the end of the year.A Competitiveness Coordination Tool aims to knock some EU government heads together and funnel money to joint industrial goals, building on the Important Projects of Common European Interest that have funded hydrogen, battery and semiconductor projects.A High-Speed Rail Plan will arrive this year to “strengthen EU cross-border rail connectivity,” the final document said. It also plans a European Port Strategy this year along with an Industrial Maritime Strategy. Aviation doesn’t get a mention, but attention will likely focus on a Sustainable Transport Investment Plan, due in the third quarter, which is expected to stimulate investment in sustainable aviation fuels along with other low-carbon transport fuels.The European Biotech Act will provide a forward-looking framework “conducive to innovation” in clinical trials, the document said, ditching a suggestion in earlier drafts of a more radical reworking of clinical trial regulations. The Life Sciences strategy has been penciled in for the second quarter and a Critical Medicines Act will drop by mid-March. The new draft also mentions short-term measures to simplify rules on medical devices.Since the war in Ukraine started, Brussels and EU capitals have urged defense contractors to ramp up production, but companies have complained that the current rules and regulations are too burdensome and that finding financing is too difficult. The broader simplification push may help them.One of their key asks of Brussels is to “defense-optimize horizontal instruments,” as the  Aerospace, Security and Defence Industries Association of Europe put it last year. Defense companies are now likely to start lobbying the EU executive to ensure their sector is at least taken into account, if not prioritized in future proposals.Tucked into the fine print of the Compass are a few modest nods to farming — because it’s hardly Europe’s next economic rocket.The strategy gestures at fostering agricultural entrepreneurship and linking farming to the bioeconomy. But let’s be real — no one expects farmers to start churning out unicorn startups. Still, the Commission wants to squeeze out more efficiency and ease the administrative burden on both farmers and regulators.A Vision for Agriculture and Food lands on Feb. 19, promising sustainability and resilience. The EU also aims to cut red tape and push circular economy principles. But will it bring real change? Expect consultations, strategies, and tweaks — but not so much game-changing shifts.Marianne Gros, Zia Weise, Gabriel Gavin, Pieter Haeck, Giovanna Faggionato, Gregorio Sorgi, Kathryn Carlson, Douglas Busvine, Jordyn Dahl, Tommaso Lecca, Aoife White, Rory O'Neill, Laura Kayali, Bartosz Brzeziński, Aude van den Hove, Francesca Micheletti, Giovanna Coi and Hanne Cokelaere contributed to this report.The lessons we can take from how easily institutions have folded to Trump’s remarkable revenge campaign.Canada’s prime minister prides himself as a fighter, but he just announced he won’t lead the Liberals’ next battle.Americans are rejecting some liberal values.So much happened this cycle. At the end of the day, where did it get us?

"
mobility,EU offers teamwork with US on China in bid to woo Trump,https://www.politico.eu/article/eu-trade-donald-trump-team-up-us-china-competitive-threat/,"
				The EU, the U.S. and Japan already teamed up in Trump’s first term to counter the competitive threat posed by China.			AI generated Text-to-speechBRUSSELS — Europe’s top trade official, seeking to win over U.S. President Donald Trump, said on Wednesday that Brussels was ready to team up with Washington to strengthen economic security in the face of the competitive threat posed by China.The pitch, by Trade Commissioner Maroš Šefčovič, added shape to a promise he made last week in a POLITICO interview to propose “a package of cooperation” to Washington. It follows a rocky first 10 days in office in which Trump has shocked European leaders by staking a territorial claim to Greenland — a protectorate of EU member Denmark.“We should also be ready to explore deeper EU-U.S. cooperation on economic security —an area where both the EU and the U.S want to progress, including on how to deal with the joint challenges coming from China’s non-market policies and practices,” Šefčovič told the European Parliament’s international trade committee.On top of his territorial claim against Denmark, a NATO ally, Trump has threatened across-the-board tariffs of up to 20 percent that, if implemented, would deal a massive blow to the $1.3 trillion transatlantic trading relationship.To placate him, European Commission President Ursula von der Leyen proposed buying more U.S. liquefied natural gas soon after Trump’s election victory in November.“On the commercial area is of course the LNG purchases, where there is a very clear opportunity to increase imports while phasing out Russian gas,” the Slovak commissioner said, adding that von der Leyen and Trump had discussed this during their first introductory call.During Trump’s first term, the U.S., EU and Japan joined forces to clamp down on what they considered Beijing’s anti-competitive or “non-market” practices — such as lavishing subsidies on companies to grab global market share.The comments come at a time of uncertainty in the relationship between Brussels and Beijing — the Commission imposed duties on imports of Chinese electric vehicles last year after an investigation found evidence of massive state subsidies. Talks continue with a view to de-escalating the trade row ahead of an EU-China summit penciled in for May.“China is our third-biggest and most challenging trade partner. We need to rebalance this relationship between transparency, predictability and reciprocity. This means being more assertive in challenging China’s structural imbalances ... and non-market practices driving overcapacity,” the EU trade chief said.“There is also room to expand our trade and investment ties with China,” Šefčovič added, noting that Europe wanted “to pursue a more balanced relationship in the spirit of openness.”Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Von der Leyen’s bid to boost business relies on government help,https://www.politico.eu/article/ursula-von-der-leyen-competitiveness-compass-pitch-relies-on-government-help/,"
				The European Commission lays out its policy plans for the next five years to help turn the continent’s economy around.			AI generated Text-to-speech
				This article is also available in: French			European Commission President Ursula von der Leyen called on governments to help turn around the region’s sluggish economy, laying out her Competitiveness Compass with policies to boost growth.""Our business model has basically relied on cheap labor, from China presumably, cheap energy from Russia and partially outsourcing security and security investment,"" she told a press briefing. ""These days are gone.""""We have a plan, we have a road map. We have the political will. Now, what matters and really matters is speed and unity,"" she said, touting efforts to boost innovation, push on with decarbonization and secure energy supplies and trade flows.The plan comes with a stark warning: Do nothing and Europe ""risks to be stuck on a low-growth path, with less income for the employed, less welfare for the disadvantaged, and less opportunities for all.""Bowing to European Union capitals’ calls to slash red tape that hampers businesses, she’s promising to make an “unprecedented effort to produce simpler rules” and speed up administration. Some of that will mean cutting back new climate-friendly regulations even as von der Leyen insisted that ""the EU stays on course for Green Deal objectives without any question.""But her policy roadmap stresses that governments will have to step up since ""many key levers, from taxation to labour markets to industrial policies, are largely or partly in the hands of EU governments"" and they should coordinate national reforms and investment via a Competitiveness Coordination Tool.It offers a high-level blueprint for how von der Leyen wants to direct the EU during her second term. The message is unequivocal, if vague: Europe must become more business-friendly to match the United States and China, without sacrificing its climate goals in the process. Making that happen, however, will be a titanic feat.Energy is a big focus as companies complain that high power prices, which soared after Russia invaded Ukraine, make it difficult for them to compete with other parts of the world. The Commission pleads with governments to step up investments in Europe’s power grids and storage facilities to enable the switch toward more renewable power sources.The compass also vows to help carbon-belching industries cut their planet-warming emissions, promising targeted plans for steel and chemical manufacturers. Notably, it explicitly mentions a 2040 goal to cut 90 percent of EU emissions — a figure some conservatives have criticized that still needs to be enshrined in law.One big problem with von der Leyen's overarching vision is the limited funding available for new investment. Even large countries like France and Germany are struggling with debt and deficits, a situation that trade tensions with the United States and China could worsen.The Commission is planning to repurpose unspent regional funding for projects that meet its competitiveness agenda and call on state-backed lenders like the European Investment Bank to funnel funding towards programs such as a TechEU investment program to bridge the financing gap for innovative firms. A forthcoming Competitiveness Fund will also try to make funds flow toward key projects and there'll be a new push to unlock private funding with a Savings and Investment Union.The plan is wide-ranging, picking up on criticisms from Mario Draghi’s competitiveness report of a range of policy areas where the EU is slow or fragmented.It also touches on social issues usually outside of the Commission’s purview by asking governments to open up labor markets as the working population ages and pushing for action to address failings in education where children’s math and reading skills have worsened. None of these things can be remedied overnight, the plan warned: “Boosting competitiveness is not a quick fix.""This article has been updated with additional comment from Ursula von der Leyen.Giovanna Coi, Hanne Cokelaere and Cory Bennett contributed to this report.“Europe cannot afford to remain reactive,” the European Commission will warn in strategy to be unveiled on Wednesday.State aid rules underpinning the Clean Industrial Deal aim to boost renewable power, decarbonization and clean tech.A European Commission draft sets out ways for governments to subsidize and boost clean-tech investments.The attack at the Clemenceau metro station is the latest in a series of violent incidents rocking the city."
mobility,EU space commissioner calls for ‘European Space Shield’,https://www.politico.eu/article/eu-space-commissioner-calls-for-european-space-shield/,"
				Member countries should “unite our defense efforts in space” Andrius Kubilius says.			BRUSSELS — European Defense and Space Commissioner Andrius Kubilius called today for a ""European Space Shield"" to unite its defense efforts in space.""I want to set up a dialogue with member states and space commands to look at options towards a European space domain awareness to monitor threats, including military threats"" he said in a speech at the 17th European Space Conference.These moves would be ""building blocks towards a European Space Shield to unite our defense efforts in space"" he added.Countries are increasingly competing for dominance in space, with Russia and China in particular teaming up after the Russian invasion of Ukraine for projects such as a joint lunar nuclear plant,  but ""we cannot leave space to the axis of aggressive authoritarians,"" he told attendees. ""Europe must maintain leadership in space,"" he said. The EU currently spends around €2 billion a year on space.Kubilius also sounded a note of caution against Elon Musk and other private entrepreneurs with space ambitions.""Space entrepreneurs are doing exciting things in space,"" the commissioner said, adding that while ""structural problems"" are holding the EU back, ""if we do nothing, we risk stagnation."" He also called for member countries to ""buy European.""The Italian government is currently in talks with Musk's SpaceX for a €1.5 billion  deal to provide encrypted telecommunications services via his Starlink satellite internet provider."
mobility,Poland urges Tesla boycott after Musk’s call to ‘move past’ Nazi guilt,https://www.politico.eu/article/poland-urges-tesla-boycott-after-musks-call-to-move-past-nazi-guilt/,"
				“There is no justification for any reasonable Pole to continue purchasing Teslas,” says minister Sławomir Nitras.			AI generated Text-to-speechOutrage over Elon Musk’s support of the far-right Alternative for Germany (AfD) party and call for Germany to “move past” its Nazi history could start impacting his financial interests after Polish Tourism Minister Sławomir Nitras called for a Tesla boycott.“There is no justification for any reasonable Pole to continue purchasing Teslas. A serious and strong response is necessary, including a consumer boycott,” Nitras told Polish media.Musk is a key advisor to U.S. President Donald Trump and heads up a new department in the administration focused on increasing government efficiency. But he has maintained his status as CEO of EV company Tesla and his various other companies like SpaceX and social media platform X.The bulk of his wealth, however, comes from Tesla stock.On Saturday, Musk virtually joined an official election campaign for the AfD, giving a speech in which he said Germany “focuses too much on past guilt,” endorsing a taboo stance that has been a rallying cry from the far-right for Germans to move on from Erinnerungskultur or its “culture of remembrance.”“Children should not be guilty of the sins of their parents or even their great grandparents,” Musk said ahead of Germany’s Feb. 23 election.His remarks came two days before the 80th anniversary of the the liberation of the Nazi camp at Auschwitz.They have caused particular offense in Poland — which was the first country to be invaded by  Adolf Hitler’s forces at the start of World War II. Poland lost around 6 million people in the war — half of them Jews, many of whom died in Nazi camps like Auschwitz that were sited on its territory. Millions more were rounded up and put to work as forced laborers.Musk will be addressing financial analysts on Wednesday in the U.S. during his first Tesla earnings call since Trump took office.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,Car industry wants EU to clone US local content rules,https://www.politico.eu/article/car-industry-eu-us-local-content-regulation/,"
				Lobbyists want the Commission to beef up rules protecting the domestic auto industry, but that may not help the car sector.			The EU should impose “minimum local content” rules to protect the industry from foreign competition, according to a demand from a coalition of some of Europe’s biggest automotive suppliers.It’s a response to the growing troubles of the car industry, which has seen demand for electric vehicles slump while worries rise about a possible flood of Chinese cars into the EU and whether U.S. President Donald Trump will unleash a global tariff war.In a letter to the European Commission, obtained by POLITICO, the group says the executive needs to create a regulation mirroring the one among the U.S., Canada and Mexico requiring 75 percent local production content in North America. The European letter doesn’t specify what percentage the group wants. “It is time for Europe to take similar action and implement comparable regulations which require added-value content in Europe,” the letter says. “Without such a mechanism, we risk a major loss of value among automotive suppliers and equipment manufacturers, which would significantly weaken the whole sector.”Under the post-Brexit trade agreement with the U.K., 45 percent of the components in cars entering the EU must be made in either the U.K. or the EU, or face a tariff of 10 percent. Signatories include major suppliers from Italy and France, including Forvia, Adler, OP Mobility or Valeo, along with French and Polish car supplier lobby groups.“We urgently need to correct this situation, as the risks to employment are imminent,” said Valeo CEO Christophe Périllat. “There are solutions. We need to implement them very quickly.”Separately, the IG Metall union, which represents most auto workers in Germany, proposed a similar scheme during a press conference in Frankfurt.The letter comes as executives and lobby groups across Europe’s automotive value chain press lawmakers to take action to help the industry stave off competition from Chinese rivals eager to find new markets as they struggle with overcapacity at home.Chinese competitors produce cheap, high-value EVs thanks to a robust supply chain and lower energy and labor costs.But the letter isn’t backed by the whole industry.“The auto industry depends on globally integrated supply chains and trade. Solutions to restore the level playing field should be assessed both on the degree of protection, as well as [on the] potential negative unintended consequences on supply chains and trade,” said Benjamin Krieger, secretary-general of CLEPA, the suppliers’ EU association, which did not sign.Carmakers with large investments in China are worried about a backlash from Beijing; that concern is shared by many parts-makers with factories there.Even if the Commission agrees, any action on setting local content rules is unlikely to rescue the industry. Batteries are the most valuable component of an EV and the bloc does not have its own champion, with carmakers instead relying on Chinese giants like CATL which are also developing factories in Europe.Any local content rule would just be the latest effort by the EU to protect its car industry.The Commission has already hit Chinese-made EVs with new duties ranging from 8 percent to 35 percent. Analysts, however, warn that Chinese carmakers have sufficiently low costs to still make a profit even after accounting for the duties — so the levies aren’t a panacea for European firms.And suppliers say the new tariffs do little to protect them because they target the final vehicle, not components within the car.“This industry faces the risk of massive delocalization” if no action is taken, Périllat said. “Tariffs only protect final assembly, but are inadequate to maintain the European industry.”While EU-level discussions have primarily centered around automakers, their suppliers are becoming more vocal in Brussels to reverse policies they say hurt not just car brands but companies up and down the value chain.The sector “is not limited to carmakers but involves a whole network of suppliers and indirect contributors responsible for 75 percent of the content value of vehicles,” the letter says.The suppliers and others will bring their demands to the strategic dialogue on the future of the automotive industry that kicks off on Thursday and will be chaired by Commission President Ursula von der Leyen.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,How China tries to strong-arm Europe on connected car patents,https://www.politico.eu/article/china-europe-car-patents-manufacturing-trade/,"
				Western carmakers quietly sulk that their Chinese competitors are getting a free ride.			BRUSSELS — In the global struggle to pay as little as possible for using protected technology, the European Union is suing China for valuing patents much lower than their current price.The EU wants to put a stop to this and last week started a case at the World Trade Organization, complaining that Beijing “has empowered its courts to set binding worldwide royalty rates for EU standard essential patents, without the consent of the patent owner.”While that precise case relates to mobile phones, an EU official told POLITICO “we are, of course, worried that this could be used in other sectors.”The automotive industry is another battleground over these essential patents used in industry standards, several industry sources told POLITICO. Chinese carmakers might enjoy an unfair advantage over their Western competitors by not paying their share — or not paying at all — for patents they are using in vehicles.Say you buy a BMW or a Toyota. Since these companies aren’t in the business of developing 5G connectivity hardware, they use patented technology from other players. There’s broadly two ways to then pay the owner of the patent: You can enter lengthy direct negotiations or buy a license that covers thousands of patents from a platform.A company called Avanci, for instance, offers a license for all 5G-related tech per car of $32 (€31). When multiplied by the output of a major carmaker, this number can quickly grow into the millions. All Western carmakers are mentioned on Avanci’s website as licensees, but no Chinese manufacturer is among them.The license covers no less than 72 tech companies and their patents. Avanci, which is headquartered in Dallas, Texas, was founded by a former executive at Swedish network equipment group Ericsson.Patent donors do include Chinese players who receive royalties who “license their cellular standard essential patents via Avanci,” the company’s communications director, Mark Durrant, said in a statement. “We have had many in-depth conversations with Chinese automakers over the years and continue to invite them to obtain the [intellectual property] rights they need to sell cars worldwide with 4G and 5G technology.”Instead, Chinese car companies have been told by the government that they should neither enter individual talks with Western tech companies, nor seek to obtain any kind of license.“There have been some concerns,” a technology industry executive said of car producers in Europe, “that many of their counterparts in China are not paying at the moment.” The executive, like the EU officials quoted in this piece, was granted anonymity because they weren’t allowed to speak on the record.While the Chinese are accused of not paying, they’re hardly the only ones looking to strike a deal with the telecom companies. European automakers, particular the German brands, are also looking to bring down the price from historic levels.Meanwhile, Beijing is positioning its courts to lower prices on patented technology. In its complaint to the WTO, the EU refers to a 2023 decision by a court in Chongqing which ruled against Nokia’s objections after it set the price Chinese cell phone-maker OPPO had to pay for its technology usage. Worldwide, mind you, not just in China.“It’s been for a long time that Chinese courts maintain that there should be a big discount for the Chinese market,” a second EU official explained. “We do not consider that it should be a Chinese court, in the Chongqing region, deciding for the rest of the world what should be the rate ...”It’s the EU’s second case in this sphere, after raising in 2020 how Chinese courts try to ban European companies from getting paid via EU courts. A panel decision on this is expected this quarter, a third EU official told POLITICO.The fresh case comes after a December publication from the China Automotive Technology and Research Center and a Chinese university, which estimates the price for a 5G license at a range between €1.17 and €2.60 — less than a tenth what Western carmakers pay via Avanci currently.Eurpean Commission officials have tried to bring up this issue with Beijing several times, with little success. Despite some technical answers, the second EU official said he saw “no real willingness to actually discuss the issue.”Because patented technology is often made public so it can be built upon by companies small and large, unnotified usage can remain completely invisible to the patent owner.This is essential for innovation, though, as the technology executive told POLITICO: “It’s a problem for those who develop the technologies because they want to be able to invest in future standardization initiatives to bring the technologies to market that the car companies want to see.”In a reaction, the Chinese Chamber of Commerce to the EU said it “regrets the EU’s decision to initiate this legal action,” hoping Beijing and Brussels can find “a constructive solution.”Camille Gijs contributed to this report.Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen."
mobility,"As Trump returns, the EU rediscovers the art of the trade deal",https://www.politico.eu/article/donald-trump-eu-trade-deals-tariffs-ursula-von-der-leyen-maros-sefcovic/,"
				The European Union has clinched a string of pacts after the United States, its top trading partner, flipped into full protectionist mode.			
				This article is also available in: French			DAVOS, Switzerland — After years in which trade deals just kept slipping away, all the European Union needed was the shock of Donald Trump’s return to the White House to get its act together.Chief executive Ursula von der Leyen and her trade czar Maroš Šefčovič haven’t merely hung about. They moved fast after Trump’s election triumph in November to close out deals that have been stuck in the works for years — even decades — and want to build new relationships to compensate for his threats to throw up a tariff wall around the United States. “Europe will keep seeking cooperation — not only with our long-time like-minded friends, but with any country we share interests with,” von der Leyen said in a keynote address at the World Economic Forum Tuesday, less than 24 hours after Trump was sworn in on Monday. In her first term, von der Leyen’s Commission sought to attach human rights and green conditions to trade deals — which proved to be more than its partners were prepared to take. As a result, a trip in late 2023 to seal a Latin American trade deal was called off at the last minute. Another, with Australia, collapsed after EU bigwigs flew around the world for a signing ceremony that never happened. The setbacks exposed von der Leyen’s lofty first-term trade aspirations as unrealistic. A shift in mindset has been on full display in the weeks leading up to Trump’s inauguration. “My view from the last two months, and I think it was also very clearly confirmed here in the last two days in Davos, is that there is enormous interest in accelerating free trade negotiations with the European Union,” Šefčovič told POLITICO at the World Economic Forum when asked in an interview whether he perceived a shift in the EU’s trade policy. Trump hasn’t yet followed through on his campaign threats to impose universal tariffs of 10 to 20 percent on the rest of the world — and more for Canada, Mexico and China. But the mere prospect has had a galvanizing effect.“Trump does — unintentionally —  help to facilitate trade agreements between the EU and third parties. You can see there is a change of mind, a certain new dynamic,” said an EU diplomat who, like others in this story, was granted anonymity to speak candidly. After two decades of back-and-forth on Mercosur, a South American trade bloc, the European Commission sealed a political deal in early December. In one major concession, it agreed that parties can seek compensation over losses arising from strict EU regulations, such as one aimed at curbing deforestation. This so-called rebalancing mechanism was a first for an EU trade deal, said a senior EU official.Similarly, just three days before Trump’s inauguration, Brussels finally agreed to upgrade its trade deal with Mexico. The talks had floundered for years — but Trump’s tariff threat on Mexico encouraged the two sides to display a united front.In its rush to get the agreement over the line, Brussels admitted it was “less ambitious” than previously envisaged. If other trade partners would swoop in and do deals with Mexico, it could put the EU “in a worse position” for the future, a second EU official said.The alacrity from Brussels on updating the Mexico accord appeared to have caught that country’s president, Claudia Sheinbaum, by surprise. “The work continues, and there is still no agreement. Everything must align with our plan,” she said at a press conference on Friday.EU officials have since sought to clarify that the deal had been agreed at the political level, though the legal text still needs to be finalized.In other trade wins, the EU has deepened and widened its agreements with Switzerland, and relaunched talks on a trade deal with Malaysia after a decade-long hiatus. Von der Leyen plans to lead her entire College of Commissioners on a mission to India next month in search of a strategic partnership pact and progress in their long-running, but slow-moving talks, on a trade deal.One damper on the EU’s free-trade ambitions has been a deep rift between its two biggest economies, France and Germany, which don’t see eye to eye on many trade files. That includes Mercosur or the Commission’s tougher line on China, which has resulted in duties on electric vehicle imports.Going in to bat for his country’s exporters, Friedrich Merz — Germany’s likely next chancellor — wants the EU to move faster to boost trade. In a campaign speech Thursday, he called for Brussels to do EU-only trade deals that can be fast-tracked, skipping the need for ratification by all 27 member countries.Merz, whose Christian Democrats are on course to win a snap election in late February, is also speaking freely about how best to avoid a tariff war with the United States. And he’s calling to revive talks on a transatlantic free-trade deal that fell apart nearly a decade ago.That won’t go down well with French President Emmanuel Macron, who over the past year was politically weakened by election defeats and has presided over four different governments. Macron is lacking a stable majority in a parliament that is unanimous on one point: Its opposition to free trade.Which brings von der Leyen and Šefčovič back to the biggest trade challenge that they will face: Trump’s tariffs — when they do finally materialize.João Vale de Almeida, a former EU ambassador to Washington, has some advice on how to handle him.“We need to engage early, but not in a needy way. We should not be a demandeur,” Almeida told a panel hosted by the European Policy Centre, a Brussels think tank. “We need a combined offensive and defensive agenda.”Nicholas Vinocur, Jakob Weizman and Douglas Busvine contributed reporting. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Thousands protest over deadly train crash in Greece,https://www.politico.eu/article/greece-protests-demand-justice-deadly-train-crash/,"
				Clashes erupted at the end of the protests in Athens and Thessaloniki.			ATHENS — Tens of thousands of Greeks poured into the streets on Sunday to demand justice over a crash that killed 57 people — the country's worst.One of the largest demonstrations in recent years took place in the capital's Syntagma Square in front of the parliament, while protests took place in more than 100 cities in Greece and abroad.Protesters were holding banners reading ""I have no oxygen,"" echoing a young woman’s last words in a call to an emergency line, published by local media last week.“Citizens are disillusioned. The growing crisis of trust in institutions is evident as the distinction between executive power and the judiciary continues to erode, especially in cases like the Tempe tragedy,” said Nikos Androulakis, the leader of the main opposition party Pasok.“This is what in history we call a breakthrough,” New Left leader Alexis Charitsis said. “The social front has shaken the whole country.”The head-on collision of a freight train and a passenger train packed with students took place just before midnight on Feb. 28, 2023. Almost two years later, a trial is yet to start and keeps getting pushed back by delays in key parts of the investigation.Greece’s ruling New Democracy government failed to heed a call from the European public prosecutor to take action regarding the potential criminal liability of two former transport ministers following the train crash.The government, which was reelected after the railway tragedy, denies the accusations.The latest call for answers comes after audio evidence leaked last week indicated that some 30 of the 57 victims of the tragedy were still alive after the crash and died later, possibly as a result of asphyxiation or burns, as the collision caused a massive explosion and fire.The government’s proposal of former parliament speaker Konstantinos Tasoulas for the Greek presidency last week, further angered the relatives, who say that under his watch the parliament refused to attribute any political responsibility.“We want to ensure that no crime goes unpunished,” said Maria Karystianou, a representative of the association of families the victims, who lost her daughter and called the events a “mafia-style operation to cover up the truth.”Clashes erupted at the end of the protests in Athens and Thessaloniki.“The government responded to the request for oxygen with tear gas and flash grenades,” the opposition Syriza party said in a statement.Greece has the highest number of open investigations on its practices across the European Union. The country is splashing the cash on its military after years of austerity.Ankara is too important an ally to alienate, no matter what happens on the streets of Istanbul, politicians and officials tell POLITICO.Prosecutors have launched an investigation into the fire, which broke out early Sunday morning. "
mobility,Tesla also sues EU over electric vehicle  duties,https://www.politico.eu/article/tesla-also-sues-eu-over-electric-vehicle-duties/,"
				Tesla joins BYD, SAIC and Geely in suing the EU in Luxembourg.			BRUSSELS — Elon Musk’s Tesla will face off with the European Commission in court in Luxembourg after joining three Chinese carmakers in suing the bloc over duties on made-in-China electric vehicles, two industry sources told POLITICO on Friday.Tesla, despite being headquartered in the U.S., makes most of its vehicles destined for Europe in China. The cars also have Chinese batteries inside. The complaint at the EU’s court in Luxembourg is perhaps surprising, as Tesla underwent individual scrutiny by Commission investigators, including site inspections, and ended up getting the lowest duty rate for all exporters of 8 percent. By contrast, Volkswagen’s Chinese joint venture partner SAIC was hit with 35 percent.The Commission reckons it is on solid ground, however, having compiled evidence  in its year-long anti-subsidy investigation that Beijing underwrote the Chinese EV industry’s rise to global dominance. That compares with arbitrary decisions taken by the U.S. and Canada to slap 100 percent duties on Made-in-China EVs.  “We’re ready,” the Commission’s trade spokesperson Olof Gill said on Thursday, responding to challenges already filed by the three top Chinese EV-makers BYD, SAIC and Volvo-owner Geely. “We’re a rules-based club here in the EU. If they want to take us to court, they can take us to court.”POLITICO granted anonymity to the two industry sources familiar with the Tesla suit — they had direct knowledge of the matter but were not authorized to speak on the record.The goal of the lawsuits would be to annul the law that imposed the duties. If the court sides with the exporters, they could then attempt to claim back the losses.A lobby group representing several Chinese exporters — the China Chamber of Commerce for the Import and Export of Machinery and Electronics (CCCME) — also is understood to have filed a case.The Commission now has two months and 10 days to prepare its defense for the cases in Luxembourg.Gill said the EU’s negotiations with the carmakers and the Chinese government continue in parallel: “Technical conflict continues,” he said, mentioning that EU trade boss Maroš Šefčovič had met with China's EU ambassador last week for a first get-together since taking over the trade portfolio.Šefčovič, speaking to Morning Trade in Davos, expressed confidence that the EU was in the right and that it was willing to keep talking in search of a compromise. This would include so-called undertakings designed to offset the competitive advantage gained by Chinese EV-makers from subsidies extending all along the supply chain, from batteries to shipping. From 2021 and 2024, the number of cars shipped from China surged 300 percent, propelling China past Japan to become the world’s largest car exporter by units.“We continue the discussions,” Šefčovič said in an interview. “This issue is clearly not resolved, and therefore … these import duties stay in place.”China has also initiated a case against the duties at the World Trade Organization.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen.Beijing’s counterattack against Donald Trump comes after Wednesday’s wide-ranging measures."
mobility,EU trade chief to Trump: Let’s deal,https://www.politico.eu/article/eu-donald-turmp-maros-sefcovic-ursula-von-der-leyen-lets-deal/,"
				“Our message is very clear: We are ready to engage,” Trade Commissioner Maroš Šefčovic tells POLITICO.			AI generated Text-to-speechDAVOS, Switzerland — The European Union has a clear message for Donald Trump: We are ready to deal. EU trade chief Maroš Šefčovič extended an olive branch to Washington on Wednesday, two days after the U.S. president was sworn in. He told POLITICO that Brussels was ready to talk with the new Washington administration — despite the repeated threats that Trump has made to hit the 27-nation bloc with tariffs.“We listen very carefully to the messages coming from there, from the White House,” Šefčovič, speaking on the sidelines of the World Economic Forum, said in his first print interview since taking on the job in December. “Our message is very clear: We are ready to engage. We want to put on the table [a] package of cooperation. And we are ready to discuss all the concerns of our American partners and take it from there.”Trump’s tariff threats have sown fear in Brussels and governments across the bloc at a time when the continent’s economy is flagging. His vow to impose higher, punitive, tariffs on China has leaders worrying that cheap exports once destined for the U.S. market will end up flooding the European market.Willing to offer carrots to Washington, Šefčovič’s comments add to the plan laid out by Ursula von der Leyen, the chief of the EU executive, who issued a veiled warning to Trump on Tuesday. Without name-checking him, she spelled out the many options the EU has, such as boosting cooperation “not only with our long-time like-minded friends, but with any country we share interests with.” Von der Leyen had already suggested that one way to deter Trump from imposing new tariffs is for Europe to buy more U.S. liquefied natural gas. Loading up on American military gear would be another way to buy favor in Washington.Even though Trump has not followed through on his threat to impose universal tariffs on Day One, he has continued since taking office to trash talk the EU, blaming it for a yawning transatlantic trade deficit. “They don’t take our cars at all. They don't take our farm products, essentially. They don't take very much. We have a $350 billion deficit with the European Union. They treat us badly so they are going to be in for tariffs,” Trump told reporters in the White House. Šefčovič, a European Commission veteran known for his calm demeanor, didn’t take the bait.“This relationship is so massive and so important that we just have to treasure it. We just have to look at how we can improve it,” he said, stressing that transatlantic ties account for over 40 percent of the world’s gross domestic product. Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,EU regulator backs away from allowing lone pilots to fly airliners,https://www.politico.eu/article/eu-regulator-backs-away-from-allowing-single-pilots-to-fly-airliners/,"
				Airlines want to cut the number of pilots to save money, while unions are opposed. The EU Aviation Safety Agency is in the middle.			BRUSSELS — The need to have two pilots at all times in passenger airplane cockpits is being challenged by new technologies — to the dismay of pilots and their unions.That resistance is starting to pay off.On Tuesday, the EU Aviation Safety Agency (EASA) published its annual update of the European Plan for Aviation Safety, which sets out safety priorities while identifying risks and mitigation measures.In the document, the agency waters down its previous openness to single pilot operations — adding an extra regulatory hurdle.“EASA has adjusted its rulemaking program to make clear that we will focus first on evaluating the development and deployment of such advanced cockpit technologies,” said  EASA spokesperson Janet Northcote.Single pilot flying does not entail having only one pilot at the controls of an airliner for the duration of a flight. Instead, it would allow one pilot to be alone in the cockpit when the airplane is cruising, allowing the second pilot to step away from the controls.For that to happen, aircraft manufacturers must ensure that the technology is up to snuff so safety isn’t compromised. EASA would have to approve single-pilot operations, called extended minimum crew operations (eMCOs).An eMCO-equipped plane would tempt many airlines, which currently have to keep two pilots in the cockpit for the entire flight. Four pilots are needed if the flight lasts longer than the length of one pilot shift.In Tuesday’s update, EASA said it will set up a study to assess the impact of “new advanced flight deck technologies” and “propose a regulatory framework that ensures the safe integration of smart cockpits in commercial air transport operations.”That adds a new regulatory step before considering single-pilot operations.While the previous rulemaking study, launched by EASA in 2023, was aimed at developing rules that would allow for the “safe implementation of eMCO,” the latest action announced by the regulator only looks at the smart cockpit concept.EASA explained Tuesday’s shift as part of an effort to remove any doubt that safety is paramount.“EASA in November last year clarified its approach to the concept of eMCO to make absolutely clear to all parties that safety comes first and must be enhanced by any changes to the cockpit or to operations,” Northcote said.EASA’s more conservative approach to single-pilot operations comes after Florian Guillermet took over as executive director of the EU agency in April. He succeeded Luc Tytgat, who had been acting executive director for the previous seven months, and Patrick Ky, who led the agency for 10 years and was an open supporter of single-pilot operations.But pilots aren’t reassured by EASA’s new course.“Under its previous leadership, the agency leaned worryingly toward ‘enabling’ single pilot flying, aligning too closely with industry players,” said Tanja Harter, president of the European Cockpit Association pilots union.“But the operational concept of flying with only one pilot during cruise is still alive and [was] explicitly mentioned,” in Tuesday's document, she added. “Manufacturers and certain airlines will keep pushing, but regulators must stay laser-focused on safety.”The main impetus for the development of single-pilot capability comes from Europe — where the world leader in the sector, Airbus, is working on autonomous flight along with other manufacturers such as Dassault.Unions have fought back, warning that cutting the number of pilots poses safety risks.“Can you handle two emergencies at the same time?” asks a recent union ad, which shows a toilet in the middle of a flight deck and no pilot in the cockpit.The sudden death of a Turkish Airlines pilot during a flight from Seattle to Istanbul in October prompted pilots to underline that the additional crew was crucial in helping the plane land safely. British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”"
mobility,Trump’s US-Mexico tariffs threaten to hammer European carmakers,https://www.politico.eu/article/donald-trump-mexico-us-border-european-carmaker-china-automobile/,"
				European automakers may be forced to shift production from Mexico to the U.S., costing them time and money.			AI generated Text-to-speechBRUSSELS — President-elect Donald Trump’s return to the White House on Monday and his threatened trade wars against America’s neighbors could put a massive strain on European automakers caught in the crossfire.Trump has pledged to slap a 25 percent tariff on all imports from Mexico and Canada to pressure the two countries — America's closest trade partners — to curb illegal immigration and stop cross-border fentanyl shipments.Should Trump make good on his promises, European automakers will face yet another high-cost problem as they will be forced to shift production to the United States. The brands are already struggling with lower sales and declining revenue from China and potential fines in Europe should they fail to meet new emission targets this year.“We believe the financial impact of the tariff alone will be manageable for most [European] automakers, but the tariffs add to what is an already challenging market environment for 2025,” said Lukas Paul, auto director at S&P Global Ratings.A long-standing trade agreement among the U.S., Mexico and Canada created permeable borders that has integrated the North American auto industry. Many companies use Mexico as a low-cost production site thanks to its proximity to the U.S.Close to 90 percent of vehicles produced in Mexico are exported, with three-quarters directed to the U.S., according to data from the U.S. Department of Commerce.During his last term, Trump set his sights on Mexico over concerns that Chinese automakers would use the country as a back door to sell their vehicles in the U.S. In response, he negotiated a new trade agreement, called the USMCA, that went into effect in July 2020 with updated rules of origin for cars.Under the pact, 75 percent of a vehicle’s content has to be produced in North America, with core parts originating from the U.S., Canada or Mexico. The agreement is set for a review in mid-2026, but on the campaign trail, Trump indicated he would take action before then.Today, Audi, BMW, Mercedes-Benz, Stellantis and Volkswagen all have operations in Mexico.German automotive suppliers have more than 330 locations in the country, according to German car lobby VDA, with manufacturers hitting “a new production record” of 716,000 cars in 2023.If the 25 percent tariff goes into effect, Audi — a subsidiary of Volkswagen — would be hard hit, said Matthias Schmidt, a European auto analyst. The brand has no U.S. production sites, instead relying on its Mexico facilities, including for manufacturing the Q5 SUV, its top-selling U.S. model.Last year, 29 percent of Audis registered in the U.S. were shipped from Mexico, according to Schmidt.Premium carmakers BMW and Mercedes also have extensive manufacturing hubs in the U.S., making them more insulated from Trump's tariffs than their mass-market peers.Volkswagen’s most popular model for American consumers is the Tiguan, an SUV that is entirely manufactured in Mexico. The German automaker sold over 30,000 of the vehicles in the final quarter of last year, a nearly 50 percent year-over-year increase.S&P believes that French-Italian-American automaker Stellantis is the most exposed of Europe’s automakers as it makes several Jeep and RAM models in Mexico — all of which are mainstays on American roads.“The worst-case impact of a 25 percent tariff on finished cars from Mexico could be up to 15 percent operating profit,” Paul said.Even without the tariffs, Stellantis is under pressure in the U.S., struggling with overcapacity and a potential legal battle with striking workers.The tariffs will make European automakers’ Mexican factories largely redundant, forcing them to shift production to the U.S. That is theoretically feasible but the brands will “need time to adapt,” said Pedro Pacheco, an auto expert at consulting firm Gartner.“They won’t be completely exposed … but it makes things harder,” he said, especially when coupled with the various headwinds already buffeting the sector.Another big problem is  that most parts come from Mexican factories. The country is the world's fourth-largest automotive parts producer, most of which are sent north to U.S. assembly plants.In an attempt to shield automakers from some of Trump’s threats, European Union policymakers on Jan. 17 overhauled a trade agreement with Mexico that gives European car manufacturers favorable export rates into the country.German car lobby VDA hailed the deal as an “important political signal, especially in times of increasing protectionism,” while citing the importance of the Mexican market to its members.The agreement could help Volkswagen. Looking to reduce high domestic labor costs, VW announced in December that it will move production of its Golf model from Germany to Mexico beginning in 2027.The bulk of those vehicles will be exported back to Europe, giving some insulation to VW but not completely protecting it from the impact of any U.S.-Mexico trade war.Germany’s automakers will feel the brunt of the Trump administration’s 25 percent vehicle tariff that is set to go into effect on April 2. To add insult to injury, Chinese EVs are surging.Germany’s economic agenda is shifting from cars to defense as the United States retreats and Russia threatens.The disappearance of the once high-flying company is “downright disgraceful,” says an MEP."
mobility,EU and Mexico revamp trade deal before tariff man Trump takes office,https://www.politico.eu/article/eu-and-mexico-revamp-trade-deal-before-us-donald-trump-is-sworn-in/,"
				The European Union and Mexico link arms to fend off the impact of tariffs threatened by incoming U.S. President Donald Trump.			AI generated Text-to-speechBRUSSELS — The European Union and Mexico wrapped up talks on Friday to overhaul their trade agreement, strengthening a partnership that is crucial for European auto makers three days before Donald Trump, who campaigned on a protectionist ticket, is due to be sworn in as U.S. president.The announcement represents a pre-emptive move to link arms after Trump threatened to hit U.S. neighbors Mexico and Canada with tariffs of 25 percent on taking office. The EU meanwhile faces U.S. tariffs of 10 percent to 20 percent — with analysts saying its car industry is at particular risk.The modernization of the “global agreement” between the 27-nation bloc and Mexico will expand opportunities in services, strengthen supply chains and bolster investment protections, the European Commission said in a statement after talks between EU trade chief Maroš Šefčovič and Mexican Economy Minister Marcelo Ebrard.“This landmark deal proves that open, rules-based trade can deliver for our prosperity and economic security,” European Commission President Ursula von der Leyen said. The bilateral trading relationship is worth more than €100 billion a year — four-fifths in the form of goods and one-fifth in services.Echoing the apprehension around Trump’s tariff ideas, the German car lobby VDA said “the conclusion of a modernization of the agreement is also an important political signal —especially in times of increasing protectionism.” Cars and spare parts are one of the largest export categories from Europe to Mexico. In 2022, Germany alone sold €2.5 billion worth of these products to Mexican importers.EU car exporters will be at an advantage over their Mexican counterparts in this deal, because they will qualify for certain lower tariffs in Mexico under less strict rules than the other way around.The EU executive also trumpeted export opportunites for agri-food exporters, with the deal removing tariffs that had been as high as 100 percent on exports of products such as cheese, pork, pasta, apples, jams, and marmalades — as well as chocolate and wine.Protection of geographical indications — a kind of trademark brand for premium produce — will be expanded to 568 products. And export procedures will be simplified, the Commission said, outlining details of the agreement.The original deal between the two sides dates back to 2000, meaning it was due for a revamp. The EU also redid its agreement with Chile in a similar manner two years ago. A senior EU official admitted the latest deal was less ambitious than at a previous stage in the talks in 2020.The Commission wanted to avoid Mexico slipping away, the official said. If other trade partners would swoop in and do deals with Mexico, it could put the EU “in a worse position.”Ahead of Trump’s inauguration on Monday, the deal sends a signal to Washington that the EU has plenty of diplomatical clout — and trade options — around the world.A “process of reform in the energy dimension” allowed for the deal to be concluded now, though that also meant a key ask from the EU could no longer be granted by Mexico, the official explained.It boils down to how EU energy companies are treated in the Mexican market. “Mexico has come back from a 2013 law to liberalize the energy market, so Mexican companies will continue to be granted rights and priviledges.”On the flip side, the deal reduces maximum import volumes from Mexico to Europe on sensitive imports like beef and ethanol, by cutting the quota in half compared to a near deal in 2020.Additional reporting by Jordyn Dahl. This story has been updated.Europe exhales as U.S. president hits pause button on most severe tariff regime.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. Ursula von der Leyen spoke to Chinese Premier Li Qiang in an attempt to stop goods hit by Donald Trump’s tariffs flooding into Europe. “Europe is always ready for a good deal,” says Commission President Ursula von der Leyen."
mobility,Musk stands to get even richer off this UK government plan,https://www.politico.eu/article/elon-musk-british-carbon-credits-automakers-tesla-net-zero-policy-keir-starmer/,"
				The billionaire Tesla owner might be feuding with Keir Starmer’s government, but he can expect a big payday thanks to one of Labour’s key schemes.			LONDON — British carmakers are expected to put money straight into Elon Musk’s pocket under a key government climate policy — even as the world’s richest man publicly feuds with Prime Minister Keir Starmer.How much cash exactly isn’t clear — but two senior figures from a United Kingdom automaker said the billionaire’s electric vehicle firm Tesla can expect a bumper pay day under Britain’s scheme to boost EV production.It comes even as the adviser to President-elect Donald Trump — and Tesla and SpaceX boss — attacked Starmer on multiple fronts, posting dozens of political attacks to whip up discontent on his social media platform X.As the feud deepens, carmakers are expected to turn even more sharply toward Musk’s Tesla as they race to meet the U.K.’s ambitious net-zero climate targets.As one of Britain’s key green policies, the zero emission vehicle (ZEV) mandate forces carmakers to transition away from petrol and diesel vehicles faster than in any European Union country.And pure electric vehicle carmakers like Musk's Tesla can help them handle fines for missing targets under the mandate. Under the U.K. system, carmakers who don't make the shift must pay fines of £15,000 per combustion car sold to make up the difference, borrow from their future production — or buy credits at a cheaper price from competitors. Automakers owe £1.8 billion in fines from 2024, according to analysis by the Society of Motor Manufacturers and Traders. The Department for Transport insisted it “does not recognize” that figure. The U.K.’s market share for EVs reached a record 19.6 percent last year, but the industry collectively missed its 22 percent ZEV mandate sales target.Carmakers who miss ZEV targets will need to approach “not only the Chinese manufacturers, [but] also Tesla” to buy carbon credits to help them avoid fines, said one of the two senior automotive figures, granted anonymity to speak freely.That Starmer’s Labour government is helping enrich Musk is “a reminder of the overlap of the political and business worlds that will be intensified under President Trump,” said David Henig, director of the U.K. trade policy project at the European Centre for International Political Economy.Tesla dominates the global carbon credit market, earning nearly half of its net profit from credit trading in the first nine months of last year. In 2024 it was also the largest seller of EVs in the U.K., which is now its biggest European market.But Musk’s lobbyists spy an even bigger prize in Britain.Just days after Labour swept to power last July, Tesla wrote to the new government, calling on ministers to tighten the zero emissions vehicle rules and make consumers “pay more” for combustion engine cars.The firm also advocated for the rules to be extended to trucks, driving demand for its new vehicles while also opening up a lucrative an extra credit trading market.“Government should begin consulting on a ZEV mandate for [heavy goods vehicles], as soon as possible,” Tesla’s letter to Labour’s future of roads minister, Lilian Greenwood, stated.It’s not yet possible to calculate how much Musk’s firm stands to benefit from the trading scheme. The value of credits is set by demand and “how much surplus there is and the willingness of [firms] selling credits to a settled price,” Mike Hawes, head of the U.K.’s SMMT, told reporters in a recent briefing.The credit trading scheme’s workings aren’t transparent to the industry, Hawes said, with no view into the value of credits or which automakers are buying and selling.But the automotive sector is “aware that some manufacturers are in discussion about potentially purchasing credits from those who have overachieved,” Hawes said.For Henig, Musk’s carbon credits payday is a reminder that the relationship between business and politics will become increasingly entangled as Trump returns to power.“How these interact with the U.K.-U.S. agenda on trade is unknown but they will almost certainly play a part,” he said.A system allowing firms to claim back EU tariffs imposed on U.S. imports is “not fit for purpose,” says Northern Ireland’s deputy first minister.POLITICO delves into the frenetic tactics Britain was — and still is — employing to win a carve-out from Donald Trump’s tariffs. No one yet knows if the president will listen.“We are not at the moment at a position where we want to do anything to escalate these trade wars,” says top finance minister Rachel Reeves.Britain’s GDP faces a 1 percent hit in the most extreme scenario modeled by the Office for Budget Responsibility."
mobility,Europe’s urban air quality is killing you. Blame gas-guzzling vehicles.,https://www.politico.eu/article/europe-air-quality-pollution-is-a-killer-petrol-vehicles-top-culprit/,"
				Pollution in EU cities, while slowly improving, is still killing more than a quarter million people each year, a new report finds.			AI generated Text-to-speechEurope's cities are failing to rein in pollution fast enough, leaving hundreds of thousands of people to die each year as a result of poor urban air quality.That's according to a new report from the European Court of Auditors, which examines whether European Union rules to improve air quality and noise pollution are working.The current picture isn't pretty. Air quality, while slowly improving, is far from safe, the report finds. At least a quarter of a million people die each year in the EU as result of pollution from particulate matter, nitrogen dioxide and ozone. Transport and domestic heating are the top emitters of these.Noise pollution, mostly caused by transport, also contributes to around 12,000 early deaths a year in Europe, and 48,000 cases of heart disease. “The fact is that cities struggle to address air and noise pollution effectively,” said the external auditor of the EU in a new report. “Reasons for this range from poor coordination by the authorities to the questionable effectiveness of measures, not to mention local resistance against them.”The EU is making progress on reducing pollution — but it’s still a way off from more ambitious targets due to come in from 2030. Road traffic remains one of the major contributors to air and noise pollution in the EU’s large cities, said the auditors, who argue that antipollution measures in cities should “target the transport sector.”Other key pollution sources include manufacturing and extractive industry, waste and agriculture.Air pollution generated by cars and lorries is the biggest contributor to nitrogen dioxide (NO2) pollution and is a “major problem” for cities, according to the ECA. The report focuses on Greek capital Athens,  Kraków in Poland, and Barcelona in Spain — all facing the scourge of NO2 pollution.High concentrations of NO2 can damage the human respiratory system. Across the bloc in 2020, 49,000 premature deaths were attributable to exposure to NO2 concentrations above the World Health Organization guideline level of 10 µg/m3, according to the European Environment Agency. That's more than double the number of annual deaths in road traffic accidents across the EU.Transport also contributes to other kinds of pollution, like high levels of ozone.""Ozone is generated on the basis of the precursor emission — so NO2 coming from road transport,"" said Katarzyna Radecka-Moroz, a member of the audit team. ""So what the authorities should concentrate on is the reduction of NO2.""While transport is responsible for most NO2 pollution, the biggest killer is fine particulate matter (PM2.5), accounting for 253,000 deaths in 2021. PM pollution predominantly comes from domestic heating using solid fuels like coal or wood, the report finds.Sixty-two percent of PM2.5 pollution and 43 percent of the chunkier PM10 pollution comes from domestic heating.The report finds switching from solid fuels to nonsolid fuels improves air quality, taking the example of Kraków. That could mean switching from a coal, wood or gas powered heater to an electric heat pump — which would be good for both air quality and climate.But it could also mean  switching from wood (classed as a renewable fuel) to natural gas (a fossil fuel), which would improve air quality but increase net CO2 emissions.Road traffic is also the main source of noise pollution, followed by railways and aircraft. The WHO considers environmental noise to be the second-greatest environmental contributor to disease burden in the EU after air pollution.A 2030 target of a 30 percent reduction in the number of people harmed by transport noise is unlikely to be met, said the ECA. The EU is looking at a decline of 19 percent at best — while a worst-case scenario could even see levels increase by 3 percent by 2030.The ECA wants the European Commission to look into introducing EU noise reduction targets and limits in the Environmental Noise Directive, and to align noise exposure reporting thresholds as closely as possible with WHO recommendations.""The numbers are quite clear,"" said Klaus-Heiner Lehne, the ECA member responsible for the audit. ""This is a key health aspect, and so from it [it] is quite logical that something has to be done on this because obviously it's one of the key jobs of politicians to protect people.”Cities and countries have been slow to comply with existing EU air and noise quality rules, according to the ECA. Environmental law accounts for the largest number of infringement cases launched by the Commission against countries, with more than 100 cases concerning air quality and noise pollution directives.The report also found that the Commission’s infringement procedures were ""often quite lengthy"" — two unresolved cases on pollution had been open for over a decade — and sometimes ""partially ineffective in resolving the underlying non-compliance issue.""The ECA says low-emission zones can help to reduce air and noise pollution, while acknowledging that they're an ""increasingly sensitive issue."" The schemes exclude some polluting vehicles from driving in certain areas to improve air quality — and can be politically risky and socially divisive.Some rebel cities across Spain have been refusing to implement them (going against national law) while London last year saw a wave of vigilante vandals destroying ULEZ monitoring cameras.To fix that, the ECA's Lehne called for ""better planning and some more flexibility, not such strict thresholds,"" in order to ""take the people with you.""""If you have a city where the average age of the car is 12 years or even more, and you forbid cars that that are older than 12 years in the low-emission zone area, it's obvious that you will face a problem,"" he added.A ‘critical chemicals act’ would keep production of key molecules on EU soil, countries argue.Air pollution exceeds safe levels in nearly every EU country — but it’s nothing compared to New Delhi.Goals on boosting carbon sequestration, the circular economy, organic farming and reducing the EU’s consumption footprint are most at risk.The law should list certain chemicals as critical to Europe’s strategic autonomy, copying similar policies for minerals and medicines. "
mobility,German farmers fear ‘massive’ hit from foot-and-mouth outbreak,https://www.politico.eu/article/germany-farmer-fear-massive-hit-foot-and-mouth-outbreak/,"
				Several countries have already taken precautionary measures or imposed bans, as the German livestock sector braces for longer-term impact.			German livestock farmers fear they could suffer crippling costs after the country’s first case of foot-and-mouth disease (FMD) in nearly four decades was detected in a farm near Berlin last Friday.The disease has the potential to devastate animal agriculture. An outbreak in the United Kingdom in 2001 caused an agricultural and tourism crisis costing more than €15 billion. Authorities slaughtered more than 6 million animals in efforts to eradicate the disease.“We should concentrate on preventing the spread of the disease,” European Agriculture Commissioner Christophe Hansen told German Radio on Wednesday, while also acknowledging the “direct impact on the economic situation of businesses” that trade restrictions will bring.FMD is a contagious viral disease of cloven-hoofed animals such as cattle, sheep, goats and pigs. Symptoms include fever, sores, blisters and overall reluctance to move or eat. While the mortality rate is less than 5 percent in adult animals, they’re often slaughtered to contain outbreaks.After the first case was confirmed in water buffaloes, local authorities quickly moved to ban animal transport in the state of Brandenburg, ordering the killing of the whole herd as well as 200 pigs from a nearby farm.In addition, Germany has suspended veterinary certificates for any live animal exports as a precaution for up to nine months after the eradication of the disease. However, some of Germany’s largest trading partners outside of the EU have taken matters into their own hands and imposed import bans. The U.K. — Germany’s biggest animal products customer outside of the bloc — has halted the import of cattle, pigs and sheep on Tuesday, causing a backlog of shipments. following similar moves by South Korea and Mexico.“We definitely have to prevent it from becoming a chain reaction,” warned Hansen, who praised German Agriculture Minister Cem Özdemir’s handling of the crisis.The EU’s most recent FMD outbreak happened in 2011 in wild boar in Bulgaria. “The outbreak was managed under EU regulations, which included measures such as culling and a standstill on animal movements,” a spokesperson for the European Food Safety Agency told POLITICO, adding that no vaccination was needed.However, “while mortality rates in animals are generally low, the disease can lead to severe economic losses in production animals and disruption in the national and international trade,” the spokesperson added.In 2024, German meat exports reached almost €5 billion, but according to the Federal Ministry of Agriculture “it is too early at this stage to make any statements about the extent of the economic damage — be it within the EU or with non-EU countries.”On the other hand, the German Farmers Association (DBV) already expects the cost to be “massive,” its General Secretary Bernhard Krüsken said. He suspects that the virus has been around for longer than a week and has urged federal leaders to find a way for animal products from FMD-free areas to continue to be exported.For animal welfare campaigners, this is only a part of a broader, systemic problem.“One disease chases the other (African swine fever, bluetongue, FMD), quickly causing hysteria in governments and fear for national economies due to industrial farming and a globalised trade in live animals,” Iris Baumgärtner of the Animal Welfare Foundation, a German NGO, told POLITICO.Under the bloc’s rules, intra-EU movement of animals could continue from FMD-free German regions, but some countries are also taking their own measures.The Netherlands quickly imposed a ban on the transport of thousands of German calves in the country. According to Agriculture Minister Femke Wiersma, at least 3,600 calves originating from the affected German state have been distributed across more than 125 Dutch farms. Similarly, the Belgian food safety agency has blocked 16 farms that received around 150 cows from Germany.“I have huge concerns about the welfare of unweaned male calves, [which have] anyway [been] degraded to a by-product of milk production, if they cannot be sold. Dairy farmers have no use, space or time for them due to their high level of specialisation,” Baumgärtner added.Özdemir met with livestock producers on Monday and said that trade from FMD-free areas in Germany was still possible while the ministry is “doing everything we can to enable exports to as many [extra-EU] markets as possible as quickly as possible.” The minister also wants to use the upcoming International Green Week, an annual agrifood fair in Berlin, to reassure trading partners. Hansen is also expected at the event — but has canceled a visit to a farm in Brandenburg. “I don't want to be responsible for the spread of a virus myself,” he said.Hansen will discuss next steps with Özdemir on Thursday. “This is the first [FMD] case. For the second case, should it come, we would sit down together and talk,” Hansen said, “but we have to go one step at a time.”With an $8.1 billion shortfall and the U.S. leading other Western countries in pulling support, the World Food Programme is making drastic aid cuts and scrambling to find donors.Christophe Hansen says his new vision for agriculture and food will be “different” and exclude “eat it or die” targets.MEPs hold back the green light for the controversial Hungarian Commission nominee.Hungarian candidate didn’t snap under pressure despite repeated grilling on abortion rights."
mobility,"Russia plotted terror attacks on airlines around the world, Poland’s Tusk says",https://www.politico.eu/article/russia-planned-terror-attacks-airlines-around-world-donald-tusk-says/,"
				Polish PM makes bombshell accusation against Moscow. 			WARSAW — Polish Prime Minister Donald Tusk on Wednesday accused Russia of planning a major terrorist campaign against aircraft.""I can only confirm that Russia planned acts of air terror, not just against Poland but against airlines across the globe,"" said Tusk during a meeting with Ukrainian leader Volodymyr Zelenskyy.The New York Times reported in recent days that U.S. intelligence warned the White House that Russia was planning to smuggle incendiary devices onto cargo planes heading to the U.S. The White House, according to the Times, warned the Kremlin to stop the operation.Tusk did not immediately elaborate on his remark about Russian terror attacks on aircraft. Moscow has been previously accused of sabotaging European transport infrastructure and jamming GPS signals by several countries as part of a campaign of hybrid warfare by Russian leader Vladimir Putin against the continent.In April 2024, Czech Transport Minister Martin Kupka warned that Russia has conducted ""thousands of attempts"" to attack European railways since the beginning of Moscow's full-scale war on Ukraine. Kremlin spokesperson Dmitry Peskov called the accusation ""baseless.""Most recently, Russia was accused of shooting down an Azerbaijani passenger jet that crashed in Kazakhstan, killing 38 people. The incident echoed the downing of the MH17 plane in 2014 over eastern Ukraine in territory controlled by Russian-backed separatists, which killed 298 people.While Putin apologized without shouldering the blame for the Azerbaijani crash, Russia has never accepted responsibility for the MH17 disaster.This story is being updated.World continues to get hotter. Foreign Minister Jan Lipavský tells POLITICO that the potential new PM is propagating “Russian narratives” in Europe.The European Commission also recently unveiled its own preparedness strategy for citizens, while Russia’s war on Ukraine grinds forward. Critics say the bill would discredit NGOs that receive any kind of foreign funding."
mobility,EU eyes summit date with China as new Trump era looms,https://www.politico.eu/article/eu-summit-china-donald-trump-antonio-costa-december-chinese-president-xi-jinping-trade/,"
				The proposed meeting signals to Washington, days before Trump’s inauguration, that Brussels wants to keep its options open toward Beijing.			BRUSSELS — The European Union is considering holding a Brussels summit with China in May in a bid to soothe ties with Beijing early in Donald Trump’s second term as U.S. president.The news comes as António Costa, who took office in December as president of the European Council, held an introductory phone call Tuesday with Chinese President Xi Jinping. The two agreed that “the 50th anniversary of diplomatic ties could be a good opportunity for a successful EU-China Summit later in the year,” said an EU official, who was granted anonymity as they were not authorized to speak on the record.Although the official stressed that no date had yet been set, China and the European Union established diplomatic relations on May 6, 1975, making early May a likely date for a summit.Trump, who has threatened to impose a 60 percent tariff on all Chinese goods, is expected to further antagonize Beijing during his upcoming term and to push the EU to fully decouple its supply chains from China. Hinting at such a summit just days before Trump is inaugurated signals to Washington that the bloc wants to keep its options open toward Beijing.Trade relations between Brussels and Beijing remain tense, however, with the European Commission ruling on Tuesday that China’s market access rules for medical devices are unfair to EU exporters. The decision followed a nine-month probe.The last summit between the EU and China came at the end of 2023 in Beijing, just as trade tensions between Beijing and Brussels soared over a high-profile investigation into the subsidies enjoyed by Chinese electric vehicles. The Commission imposed duties of up to 35 percent on China-made EVs in October, and talks have so far failed to resolve the tariff fight.In another indication that high-level contacts are intensifying, the EU’s recently appointed trade chief, Maroš Šefčovič, will meet China’s Ambassador to the EU Cai Run on Friday.Brussels is now set to strike back against U.S. president’s steel and aluminum measures. The world’s two largest economies send tariffs spiraling in unprecedented trade war escalation.European trade officials sure know how to have fun.EU considers €22 billion hit on American goods in response to tariffs U.S. president imposed on steel and aluminum last month."
mobility,Commission’s competitiveness proposal gets bumped to Jan. 29,https://www.politico.eu/article/commissions-competitiveness-proposal-gets-bumped-to-jan-29/,"
				The EU’s Competitiveness Compass, aiming to set out the bloc’s economic strategy, has now been delayed by another week, according to a fresh agenda.			The European Union’s Competitiveness Compass has been postponed by another week to Jan. 29, according to an agenda obtained by POLITICO. The delay was confirmed by a European Commission official and an EU diplomat, who both spoke on condition of anonymity because planning details aren’t yet public. The proposal, which aims to set the economic strategy for the Commission's work until 2029, was initially due to be unveiled on Wednesday, but was postponed after Commission President Ursula von der Leyen became ill with pneumonia. How sick she was only became clearer last week when the Commission confirmed that she had been hospitalized and is now recovering at her home in Germany.An earlier agenda showed the proposal would be presented next week but the latest planning document, dated Jan. 13, shows another week of delay.“I hope the date will remain Jan. 29,” the Commission official told POLITICO.The Competitiveness Compass is the keystone for a series of initiatives the Commission has scheduled for the next few months, including the Clean Industrial Deal due in February.Drawing from reports from Mario Draghi and Enrico Letta on how to boost the EU’s economy, the initiative aims to tackle the EU’s innovation gap with global rivals, ensure the bloc’s economic security and make progress on decarbonizing EU industry. “Europe cannot afford to remain reactive,” the European Commission will warn in strategy to be unveiled on Wednesday.State aid rules underpinning the Clean Industrial Deal aim to boost renewable power, decarbonization and clean tech.A European Commission draft sets out ways for governments to subsidize and boost clean-tech investments.The attack at the Clemenceau metro station is the latest in a series of violent incidents rocking the city."
mobility,Flying in a time of war: EU aviation agency warns of ‘high risk’ in western Russia,https://www.politico.eu/article/european-union-aviation-safety-agency-russia-war-in-ukraine-azerbaijan-airlines-flight-8243/,"
				Non-EU carriers that continue to fly over the country are expected to ignore the recommendation, however.			BRUSSELS — The European Union Aviation Safety Agency (EASA) has a message for airlines flying over Russia: Stop it.It’s a response to the Christmas Day crash of Azerbaijan Airlines flight 8243 — which was likely shot down by a Russian air defense missile. Despite the urgency, however, the likelihood  that non-EU carriers will listen to the regulator and end flights to Russian cities or through Russian airspace is close to nil.Meanwhile, although the EASA warning is motivated by aviation safety, European airlines are complaining they’re having a tough time competing against non-European carriers offering cheaper airfares to Asia thanks to their ability to fly over Russia.The Azerbaijani airliner that crashed Dec. 25 had been trying to land at Grozny, capital of the Russian region of Chechnya, which was under attack by Ukrainian drones.Russian President Vladimir Putin offered a vague apology for the incident, but didn’t take responsibility for what happened — a response that infuriated his Azerbaijani counterpart, Ilham Aliyev, who is demanding justice.Ukraine is building more missiles and drones with greater capabilities, and they are increasingly hitting military and economic targets deep inside Russia. Chechen leader Ramzan Kadyrov is a prominent Putin ally, and his soldiers are taking part in the war against Ukraine.“The ongoing conflict following the Russian invasion of Ukraine poses the risk of civil aircraft being unintentionally targeted in the airspace of the Russian Federation, due to possible civil-military coordination deficiencies, and the potential for misidentification,” EASA said in a bulletin issued on Jan. 9. EASA’s Conflict Zone Information Bulletin is aimed at non-European airlines that still operate in Russia. European carriers — along with those from the U.S. and many other countries that support Ukraine — have been blocked from Russian airspace since Moscow’s invasion of Ukraine in February 2022. The bulletin is advisory and is not a legal ban.But non-EU airlines, which benefit from the exclusion of their European competitors from Russian airspace, are expected to ignore the new warning: Flying over Russia is simply too convenient and too profitable.The Russian Federal Air Transport Agency (Rosaviatsia) called the ban “absurd” and said the European regulator was trying to restrict the number of Asian airlines overflying Russia. EASA, it said, “is simply trying to regain a competitive advantage for its companies.”The EU agency delineated a no-go zone for airlines covering all of western Russia — where about 80 percent of the country’s population lives — which would put Moscow, St. Petersburg, Kazan and Samara out of reach. EASA advised airlines “not to operate within the affected airspace of the Russian Federation located west of longitude 60° East at all altitudes and flight levels.” The move was necessary in light of the new unsafe environment, with more frequent combat taking place over Russian territory closest to Europe.“The activation of Russian air defense systems, capable of operating at all altitudes, in response to Ukrainian missile and drone launches, which have extended deep inside Russian territory, may have a direct impact on flight operations at several locations, including major international airports,” the EU agency said. The higher level of risk was demonstrated “by the [Dec. 25] incident involving Azerbaijan Airlines flight 8243.”But experts doubt that non-EU airlines will pay much heed to EASA. “Turkish, Middle Eastern and Chinese airlines are taking advantage of this and gaining market share,” said Wouter Dewulf, an air transport economist at the University of Antwerp. EU-based airlines are at a disadvantage because avoiding Russia’s vast airspace costs them time and money for fuel and crew on flights between Europe and Asia.“You have to count about $10,000 an hour [in] costs for a flight. That’s a lot of money,” Dewulf said, noting that this explains why EU airlines are either cutting Asian destinations or reducing the frequency of their flights.He called the EASA recommendation “more a kind of political move rather than a real safety move.”Even when it comes to flight safety, Dewulf found some ambiguity in the EASA bulletin. “You have to make a distinction: Landing and taking off is, of course, more dangerous because then you can easily be hit by missiles and anti-aircraft systems,” he said, while overflying the area doesn’t pose the same problems.“When flying at an altitude of 10 to 12 kilometres, you need a surface-to-air missile with highly advanced technology to successfully reach and target that flight.”“Don’t forget that the European airlines now still fly over Iran, Afghanistan and even over Israel during certain periods,” he added. That said, Malaysia Airlines Flight 17 was shot down by a Russian anti-aircraft missile over eastern Ukraine in 2014, killing all 298 people aboard. That prompted many airlines to reassess their policies on flying near conflict zones.EASA’s no-go zone in western Russia was introduced “to send a signal, in the hope that some anti-competitive practices will stop. But these airlines will never stop flying over Russia,” Dewulf added.Jan-Arwed Richter, CEO of JACDEC, a company that provides safety analyses for commercial aviation, agrees that non-EU airlines will ignore EASA. “Maybe China will reconsider whether their airlines are supposed to go on flying through Russian airspace, but as far as I can foresee, the economics are likely to win at the end of the day,” he said. “I still believe the vast majority of Russian airspace is safe for international air travel,” Richter added, “but its western and southern edges have become the acting ground for all sorts of military air-defense installations that are not fully reliable in properly identifying incoming traffic.”European airline lobby A4E was more optimistic about the impact of the recommendation.“I can’t speak for extra-EU airlines, but I trust and hope that all airlines, not just A4E members, will pay big attention to anything that raises safety and risk concerns,” said Ourania Georgoutsakou, managing director of A4E.  “I imagine that EASA will share this kind of recommendation with their partners around the world,” she added.  In the immediate aftermath of the Dec. 25 crash, some airlines, including Azerbaijan Airlines, Kazakhstan’s Qazaq Air and Israel’s El Al, limited flights to Russia. In the week since the EASA bulletin, however, no airline has said it would follow the agency’s recommendation.Turkish Airlines, one of the carriers that continues to operate in Russia, did not immediately respond to a request for comment on the EASA recommendation.British police investigate electrical substation fire that brought Europe’s busiest airport to a standstill. The U.S. plane-maker could be the “biggest victim” of a tariff war.Finland’s Neste blames the airlines for not keeping their promise to guarantee voluntary demand for sustainable aviation fuel.The billionaire’s people have marched into the Federal Aviation Administration, and Europeans are “freaking out.”"
mobility,Commission’s delayed competitiveness proposal is now due next week,https://www.politico.eu/article/commissions-delayed-competitiveness-proposal-is-now-due-next-week/,"
				Paused due to the European Commission president’s illness, the Competitiveness Compass will now see the light of day on Jan. 22.			The European Union's key competitiveness initiative will be announced next week, four EU officials told POLITICO of the strategy delayed after European Commission President Ursula von der Leyen was hospitalized with pneumonia.The so-called Competitiveness Compass was due to be unveiled on Wednesday but was postponed, initially without a fresh date, after von der Leyen was taken ill. The Commission only confirmed late last week that von der Leyen had been hospitalized and is now recovering at her home in Germany.It's now scheduled to be adopted at the next commissioners' meeting on Jan. 22, according to two Commission officials and two diplomats from EU member countries. They spoke on condition of anonymity because planning details aren't yet public. One Commission official said that the text had not yet been approved to be shared for comments.Commission spokesperson Paula Pinho on Monday told reporters that ""regarding the Competitiveness Compass (...) it turns out that the file is not yet mature for adoption this week. It is postponed. But the idea is to still adopt it in the course of this month.""POLITICO previously reported that the delay was caused by von der Leyen's absence as she was meant to present the initiative. The initiative aims to set the economic strategy underpinning the Commission's work until 2029. It is the keystone for a series of initiatives the Commission has scheduled for the next few months, including the Clean Industrial Deal due in February.Drawing from reports from Mario Draghi and Enrico Letta on how to boost the EU’s economy, the initiative aims to tackle the EU’s innovation gap with global rivals, ensure the bloc’s economic security and make progress on decarbonizing EU industry. The Commission’s secretariat-general will lead the work.Controversial move to make green investment standards voluntary sparked “huge fight” within the EU executive.The strategy is a response to mounting competition from China and the U.S. and argues Europe can win on green technology.One German aluminum factory decided to go green and close its smelter. The EU faces a similar choice, with Europe’s future at stake.Eyeing Donald Trump and Vladimir Putin, Europe scrambles to ramp up production of military equipment and boost its defense capabilities."
mobility,Belgian transport faces severe disruption by national strike on Monday,https://www.politico.eu/article/belgian-transport-faces-severe-disruption-monday-by-national-strike/,"
				Trade unions called the strike to protest against government plans for pension reform.			A national strike in Belgium is set to heavily disrupt public transport in Brussels on Monday, as well as rail and air travel.Belgian trade unions have called a general strike on Jan. 13 to protest against government plans for pension reform.The capital city’s public transport network will be “severely disrupted,” according to a warning by STIB, the company managing the Brussels metro, tram and bus services. People needing to travel within the city are advised to find alternatives, it said.Trains across the country will also be impacted, with only one in three running between major cities, according to a statement by the national rail service SNCB. In addition, travelers planning to fly through Brussels airport run a high risk of seeing their flights canceled, warned Brussels Airlines.The bloc’s Digital Markets Act is about compliance, not fines, says Olivier Guersent.The EU is set to fine Apple and Meta for rule breaches in the coming days.The Commission’s first fines under its Digital Markets Act are expected this week.The U.S. has escalated its trade war with Europe by implementing a 25 percent tariff on automobile imports."