EU leaders meet for defence talks in Brussels as spectre of Donald Trump looms – Europe reside

The European Union should stay united to reply to US president Donald Trump’s threats to levy tariffs on its merchandise, Spanish financial system minister Carlos Cuerpo mentioned on Monday, Reuters reviews.

The EU was open to commerce and in favour of a globalised world market, although the bloc shouldn’t be “naive” and defend its firms and will be certain they had been able to compete in equal situations with rivals from different nations, Cuerpo mentioned in an interview with Spanish radio station RNE.

In case you are enthusiastic about all the most recent enterprise response and inventory markets actions after Trump’s tariffs, you’ll be able to observe all of this on our enterprise reside weblog right here:

Spoiler alert: it’s not fairly.

German DAX, French CAC 40, Danish C25, Spanish IBEX, Italian FTSE MIB, British FTSE 100 all going in a single course.

EU leaders are gathering in Brussels this morning for an “casual retreat” to debate European defence, together with nearer cooperation on procurement of defence capabilities.

Should you’re excited about a calming spa-like retreat, suppose once more.

It’s the first time EU leaders meet to debate defence, however there are already some vital variations in how capitals appear to be excited about these points: French president Emmanuel Macron is known to be pushing for the EU to primarily Purchase European, whereas others fear that will additional antagonise already fragile relations with the US.

As a result of, as has been a recurrent theme during the last two weeks, there’s now no dialogue on any subject that doesn’t ultimately result in Donald Trump. Even when the query of coping with his disruptive model of politics shouldn’t be explicitly on the agenda and would in all probability fall underneath “another enterprise,” he’s looming over virtually each single factor the leaders will talk about in the present day.

What is supposed to be primarily a dialogue on defence is subsequently more likely to at the least contact upon questions on broader relationship with the US underneath Trump, after a frantic weekend throughout which he imposed “probably the most stunning phrase within the dictionary”, tariffs, on Canada, China, and Mexico. They’re resulting from kick in tomorrow.

Trump made it abundantly clear in a single day that the EU is subsequent, saying he would “positively” go forward with tariffs on the bloc “very quickly” as it’s “out of line.” “They take virtually nothing, and we take every part,” he mentioned in his distinctive model. “I wouldn’t say there’s a timeline, however it will be fairly quickly,” he added.

The EU has beforehand signalled that it could retaliate and “reply firmly”. EU commerce ministers are assembly in Warsaw on Tuesday, however it is going to be as much as the leaders to determine the road on this and the way a lot, if in any respect, they wish to poke the bear additional by turning solely to European suppliers in defence.

Within the meantime, the retreat on Monday additionally marks one other event with British prime minister Keir Starmer attending an EU summit for the primary time since Brexit 5 years in the past. He’ll name upon all allies to “step up,” and urge EU leaders to “sustain the stress” on Russian president Vladimir Putin to deliver peace within the Ukraine warfare.

He’ll solely be part of for a “working dinner” to debate EU-UK defence, however his EU counterparts may wish to ask him on the sidelines to say a phrase or two about how he’s labored his allure on Trump.

The US president repeated on Sunday that whereas the UK was additionally “out of line,” “that one could be labored out,” and praised his relationship with Starmer, who is seemingly “very good.”

And as if all of that was not sophisticated or difficult sufficient, regardless of all of the discuss potential thawing in relations with the previous member state, the EU is reportedly contemplating stalling a brand new defence and safety pact with the UK due to a dispute over fishing rights.

Nobody mentioned it could be straightforward.

As this morning’s publication from the Polish each day newspaper Gazeta Wyborcza depressingly notes, “Tomorrow was meant to be higher, however it isn’t.”

Elsewhere in Europe, we can be wanting on the state of affairs in France, the place prime minister François Bayrou is anticipated to attempt to push his price range by with no vote utilizing a bit constitutional mechanism 49.3. Be careful for reactions and if there’s an try and pressure a confidence vote on the again of it, which might even see him passed by the tip of the week.

I will even regulate the state of affairs in Greece, the place authorities are on excessive alert after tons of of seismic tremors in Santorini, with fears {that a} greater earthquake may very well be coming quickly. Let’s hope not.

It’s Monday, 3 February 2025, and that is Europe reside. It’s Jakub Krupa right here.

Good morning.