Germany's Merz casts doubt on Ukraine EU entry by 2034
"For us, the absolute top priority is, first and foremost, to do everything possible to end this war," Merz said on Friday after a meeting with Romanian President Nicușor Dan in Berlin.
"Then we'll talk about the reconstruction of Ukraine... but that's going to take a number of years ... It will probably not even affect the EU's current medium-term financial outlook," the chancellor said.
European Commission President Ursula von der Leyen said in Kyiv in February that Ukraine could join the EU before 2030 if the country continues reforms at the current speed and quality. EU leaders have also said accession to the EU would be the most important security guarantee for the future of Ukraine. REUTERS
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
40 minutes ago
- Straits Times
German army prepares to develop deep-strike drones, Handelsblatt reports
Find out what's new on ST website and app. BERLIN - The German armed forces are preparing to develop long-range combat drones capable of striking targets deep in enemy territory, the Handelsblatt newspaper reported on Monday. Three consortia are working on concrete concepts after the Luftwaffe airforce sent a request for deep-strike drones to leading defence companies and startups, the report said. According to the report, Airbus Defence is contributing to the project alongside U.S. startup Kratos, while Germany's Rheinmetall has teamed up with drone specialist Anduril. Munich-based startup Helsing is also involved, the report said. The German defence ministry confirmed preparations for such a project to Handelsblatt, saying that initial talks had taken place but that no formal tender had been issued. The ministry and the companies mentioned did not respond to emailed requests for comment from Reuters. REUTERS

Straits Times
an hour ago
- Straits Times
US and EU avert trade war with 15% tariff deal
Find out what's new on ST website and app. US President Donald Trump meets with European Commission President Ursula von der Leyen, in Turnberry, Scotland, on July 27. TURNBERRY, Scotland - The United States struck a framework trade deal with the European Union on July 27, imposing a 15 per cent US import tariff on most EU goods, half the threatened rate, and averting a spiralling battle between two allies which account for almost a third of global trade. US President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Mr Trump's luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations. 'I think this is the biggest deal ever made,' Mr Trump told reporters, lauding EU plans to invest some US$600 billion (S$769.07 billion) in the United States and dramatically increase its purchases of US energy and military equipment. Mr Trump said the deal, which tops a US$550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of US exporters. Dr von der Leyen, describing Mr Trump as a tough negotiator, said the 15 per cent tariff applied 'across the board', later telling reporters it was 'the best we could get'. 'We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability,' she said. The deal, which Mr Trump said calls for US$750 billion of EU purchases of US energy in coming years and 'hundreds of billions of dollars' of arms purchases, likely spells good news for a host of EU companies, including Airbus, Mercedes-Benz and Novo Nordisk, if all the details hold. Top stories Swipe. Select. Stay informed. Singapore Tanjong Katong sinkhole backfilled; road to be repaved after LTA tests Asia 4 killed in mass shooting in Bangkok: Thai police Singapore 'Medium risk' of severe haze as higher agricultural prices drive deforestation: S'pore researchers Singapore Jail for former pre-school teacher who tripped toddler repeatedly, causing child to bleed from nose Singapore Police statements by doctor in fake vaccine case involving Iris Koh allowed in court: Judge Singapore Woman allegedly linked to case involving pre-schooler's sexual assault given stern warning Asia Cambodia says immediate ceasefire purpose of talks; Thailand questions its sincerity Singapore SMRT reports unauthorised post on its X account, says investigation under way German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. German carmakers, VW, Mercedes and BMW were some of the hardest hit by the 27.5 per cent US tariff on car and parts imports now in place. The baseline 15 per cent tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal. But Mr Bernd Lange, the German Social Democrat who heads the European Parliament's trade committee, said the tariffs were imbalanced and the hefty EU investment earmarked for the US would likely come at the bloc's own expense. Mr Trump retains the ability to increase the tariffs in the future if European countries do not live up to their investment commitments, a senior US administration official told reporters on July 27 evening. The euro rose around 0.2 per cent against the dollar, sterling and yen within an hour of the deal's being announced. Mirror of Japan deal Mr Carsten Nickel, deputy director of research at Teneo, said the July 27 accord was 'merely a high-level, political agreement' that could not replace a carefully hammered out trade deal. 'This, in turn, creates the risk of different interpretations along the way, as seen immediately after the conclusion of the US-Japan deal.' While the tariff applies to most goods, including semiconductors and pharmaceuticals, there are exceptions. The U.S. will keep in place a 50 per cent tariff on steel and aluminium. Dr Von der Leyen suggested the tariff could be replaced with a quota system ; a senior administration official said EU leaders had asked that the two sides continue to talk about the issue. Dr Von der Leyen said there would be no tariffs from either side on aircraft and aircraft parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. 'We will keep working to add more products to this list,' Dr von der Leyen said, adding that spirits were still under discussion. A US official said the tariff rate on commercial aircraft would remain at zero for now, and the parties would decide together what to do after a US review is completed, adding there is a 'reasonably good chance' they could agree to a lower tariff than 15 per cent. No timing was given for when that probe would be completed. The deal will be sold as a triumph for Mr Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, and has already reached similar framework accords with Britain, Japan, Indonesia and Vietnam, although his administration has not hit its goal of '90 deals in 90 days'. US officials said the EU had agreed to lower non-tariff barriers for automobiles and some agricultural products, though EU officials suggested the details of those standards were still under discussion. 'Remember, their economy is US$20 trillion... they are five times bigger than Japan,' a senior US official told reporters during a briefing. 'So the opportunity of opening their market is enormous for our farmers, our fishermen, our ranchers, all our industrial products, all our businesses.' Mr Trump has periodically railed against the European Union, saying it was 'formed to screw the United States' on trade. He has fumed for years about the US merchandise trade deficit with the EU, which in 2024 reached US$235 billion, according to US Census Bureau data. The EU points to the US surplus in services, which it says partially redresses the balance. Mr Trump has argued his tariffs are bringing in 'hundreds of billions of dollars' of revenues for the US, while dismissing warnings from economists about the risk of inflation. On July 12, Mr Trump threatened to apply a 30 per cent tariff on imports from the EU starting on Aug 1, after weeks of negotiations with the major US trading partners failed to reach a comprehensive trade deal. The EU had prepared counter tariffs on €93 billion (S$140 billion) of US goods in the event a deal to avoid the tariffs could not be struck. REUTERS
Business Times
2 hours ago
- Business Times
Defiant Fed chief to send clear signal he calls the shots on US monetary policy
[WASHINGTON] US President Donald Trump has gone to extraordinary lengths to pressure US Federal Reserve chairman Jerome Powell to cut interest rates, but Trump's decision to feud with the central banker is having the opposite of its intended effect. Anyone who watched the both of them during Trump's tour of the Fed's building renovation project on Thursday (Jul 24) could easily tell that the two are on a collision course. Powell, however, remains unbowed. Rather than being defensive when Trump confronted him about the budget overrun of the renovation, Powell instead corrected Trump on his cost estimates. Trump is bound to keep berating Powell until his term ends in May 2026, and Powell is very unlikely to cut rates any time soon. As the central bank's Federal Open Market Committee prepares to meet this week, Wall Street economists are expecting the benchmark rate to stay in a range of between 4.25 and 4.5 per cent for the fifth straight meeting. Markets are likely to await Powell's press conference on Wednesday to gauge whether this is a 'dovish' hold, where the rate-setting committee leans towards a rate cut as the next move, or a 'hawkish' hold, where the committee is becoming more concerned about inflation. One brokerage said that Powell will likely keep his cards close to his chest. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We expect the Fed to maintain maximal optionality at its July meeting,' said economists at Bank of America Global Research, in a note to clients. 'Powell would prefer to see the July data before potentially guiding the markets for September at (the Fed's annual economic symposium in) Jackson Hole.' The economists added that 'markets will be focused on whether Powell underscores the Fed's desire to cut rates this year, or if he remains non-committal'. Nonetheless, Powell could give a hawkish signal if he emphasises the continued threat of tariffs, or a dovish one 'if he focuses on the stability of services inflation and expectations'. In the second-quarter earnings season, most companies – with rare exceptions such as German automaker Volkswagen, which is heavily dependent on US exports – seem to be taking tariffs in their stride. Of course, that could simply mean that US households are bearing more of the pain as corporations successfully pass on the costs of new tariffs. While Trump appears to have succeeded in forcing a new protectionist trade regime on the world without the kind of market meltdown that seemed imminent in the aftermath of his 'Liberation Day' in April, the Fed and other economists still view short-term or even long-term consumer-price increases as a likely result. At his press conference this Wednesday, Powell is likely to flex the Fed's muscle as an independent agency. Any sign that he was bowing to Trump's pressure campaign would represent more than reputational damage. The Fed has the ability to act as the backstop of the US Treasury market and only as long as market participants trust the central bank to police inflation. If markets sniffed out signs that the Fed had shifted its mission to a fiscal one – concentrating solely on economic stimulus, as Trump seems to be advocating, and as less influential central banks elsewhere often do – the Treasury market would simply cease responding to the Fed. This happened in the 1970s, when inflation was out of control. In those years, Treasury yields, and hence mortgage rates and other consumer loans, spiked above 10 per cent. 'We think Trump's pressure on the Fed to cut rates makes rate cuts less likely,' said strategists at BNP Paribas. The pressure campaign has made Treasury markets jumpy, however, because of fears about the role of politics at the Fed, they said. Powell pushed back on Trump's esimates of renovation costs on Thursday's tour of the Fed building. This week, he's likely to push back again to remind global markets – and more importantly, Trump – who calls the shots on US monetary policy.