Good morning from Brussels. The EU should start discussions with Donald Trump “relatively early” to avoid the imposition of tariffs, economic think tank Bruegel has proposed. Jonathan Packroff, who analysed the report, writes that one option could be buying more US energy and military equipment, which will simultaneously have a positive political impact on the approach toward Russia. Moreover, the EU could offer a reduction in tariffs on car imports to the bloc. However, the EU should also brace for the worst-case scenario and prepare retaliatory measures in case negotiations fail. At the same time, the think-tank warns the Europeans to remain united and coordinated in these talks. As US-EU trade relations remain uncertain, the bloc seems open to alternatives. UK Finance Minister Rachel Reeves will attend Monday’s Eurogroup meeting and will stress that removing trade obstacles will benefit both the UK and the EU economies. In addition, the EU has signed the controversial Mercosur deal with Latin American countries, triggering the reaction of France and Poland, who are now banking on Italy to form a blocking minority and prevent it from coming into force as it stands. The issue has been politicised to the extent that Ursula von der Leyen did not attend the reopening of Notre Dame Cathedral in Paris on Saturday. |