Brussels says US trade deal is also ‘about Ukraine'
Speaking on Monday, Šefčovič said that the deal – which will impose a flat 15% tariff on most EU exports – was 'not only about trade' but tied to broader geopolitical concerns.
'It's about security; it's about Ukraine; it's about current geopolitical volatility,' Šefčovič told reporters. 'I cannot go into [all the] details [about] what was discussed yesterday, but I can assure you it was not only about trade.'
Šefčovič's comments follow growing concern in Europe over the durability of US support for Ukraine, which continues to face escalating Russian attacks more than three years after the full-scale invasion began.
Donald Trump – who had an explosive public spat with Ukrainian President Volodymyr Zelenskyy earlier this year – has repeatedly criticised previous US support for Ukraine and has sought to pressure both Kyiv and Moscow to end the war.
However, the US president has become increasingly frustrated by Vladimir Putin's refusal to agree to a ceasefire in recent weeks, and has threatened to impose "secondary tariffs" of up to 100% on countries that purchase Russian oil.
Trump also recently pledged to deliver Patriot missile defence systems to Kyiv, although he stressed they will be purchased by EU member states.
Šefčovič, however, hinted that the deal was an 'additional price' to pay for getting Washington to be 'aligned' with Brussels 'on the geopolitical issues of today'.
'It has additional worth in having this deal done, because I believe that from now, we can go only for the better,' he said. A deal to divide them all Sunday's deal – which will also see the bloc purchase $750 billion worth of US oil, gas, and nuclear energy over the next three years – was also vehemently criticised by Moscow.
'The deal is clearly aimed against Russia, as it bans Russian oil and gas purchases,' said Dmitry Medvedev, a former Russian president who currently serves as deputy chairman of the Kremlin's Security Council.
Hungarian Prime Minister Viktor Orbán – one of Trump's few EU allies and a close partner of Putin – denounced the agreement, accusing the US president of having "eaten Ursula von der Leyen for breakfast" during negotiations.
France – which has become an increasingly fierce backer of Ukraine in recent years – similarly condemned the deal, and urged Brussels to activate its much-vaunted 'trade bazooka' to target US services exports to the EU.
Several other member states including Germany, Italy, Slovakia, and Czechia offered cautious endorsements of the deal, while stressing that key details still need to be clarified.
(cs)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euractiv
5 hours ago
- Euractiv
Bulgaria's populist parties push for medicine price caps ahead of euro adoption
Bulgaria's competition watchdog has launched a sector-wide inquiry into the pharmaceutical market, just months before the country is expected to join the eurozone on January 1, 2026. The move follows rising political pressure to tackle inflation fears tied to the upcoming currency switch, with populist parties proposing price controls on basic goods and services, including medicines. The Commission on Protection of Competition (CPC) announced that it has sent questionnaires to dozens of pharmaceutical companies as part of a broader investigation into market dynamics and potential price distortions. A similar probe into the food sector was launched earlier this year amid widespread concerns that euro adoption could trigger price spikes, particularly for low-income households. 'Pharmaceuticals account for 36% of household expenses, which is an enormous share,' CPC Chair Rossen Karadimov told public broadcaster BNT. He said that following the data collection phase, the Commission may propose policy measures to reduce household spending. Industry questions data Bulgarian households spend an average of €360 per person annually on healthcare, accounting for 6.1% of total household expenditure, according to data from the National Statistical Institute. This includes out-of-pocket costs for medicines, treatments, and services not covered by the National Health Insurance Fund, which is funded by an 8% income-based solidarity contribution. However, the pharmaceutical industry expressed scepticism over the data used and the likely impact of the investigation. Speaking to Euractiv, Dimitar Marinov, chair of the Bulgarian Pharmaceutical Union, stated that he was unaware of the source behind the 36% expenditure figure. He also pointed out that the last sectoral analysis conducted by the CPC dates back to 2014 and has had no tangible impact. 'These analyses are supposed to lead to meaningful recommendations to parliament, which can then adopt legislative changes to improve the environment,' Marinov explained. 'Back in 2014, the findings were completely ignored.' OTC price cap According to sources within the ruling coalition, the recent wave of regulatory scrutiny is part of a coordinated effort by independent agencies and the government to signal control over inflationary risks in the lead-up to eurozone accession. Nearly all key sectors of the economy are expected to face some form of inspection or policy intervention. Authorities frequently use the term 'speculation' to describe perceived unjustified price increases. However, Bulgaria operates under an open market economy where competition rules determine pricing, and pharmaceutical prices are already tightly regulated. On July 21, lawmakers from the populist opposition parties Velichie ('Greatness') and MECH, backed by the pro-Russian Bulgarian Socialist Party, a junior partner in the government, tabled a bill aimed at capping prices across multiple sectors. The draft law targets bank fees, telecom tariffs, fuel prices, and the prices of over-the-counter (OTC) medicines. The proposal states: 'Pharmacies and drugstores shall not charge prices for OTC medicinal products exceeding those registered by the National Council on Pricing and Reimbursement of Medicinal Products as of January 1 2025.' Yet, experts argue that the likelihood of price surges in the pharmaceutical sector is minimal. 'By law, medicine prices in Bulgaria are strictly regulated. It is impossible for [them] to exceed the lowest prices among our EU reference countries,' Marinov explained. [Edited by Vasiliki Angouridi]
Euractiv
6 hours ago
- Euractiv
Why the EU is ‘absent' in Gaza
Welcome to the Capitals by Eddy Wax. Get in touch. Were you forwarded this newsletter by a friend? Sign up here. In today's edition: Inside Europe's Gaza paralysis EU crumbles further on trade threats Spy trial could spill AfD secrets Global plastic treaty talks in Geneva 'Fake' rice threatens Valencian tradition In the Capital Nicolas Schmit, who sat in the European Commission in the aftermath of the 7 October attacks by Hamas, says the bloc's muddled stance on the Gaza war stems from something deeper than disagreement: institutional inertia and presidential control. In an exclusive interview with The Capitals, the Luxembourg socialist said the Commission did not hold proper debate about Europe's relationship with Israel during the 13 months that he was in office after the war was triggered. 'We never had a real strategic discussion on the Middle East issue from the different points of view,' he said. 'We should have debated the relationship with Israel [but] we did not." That omission, Schmit argued, was partly because President Ursula von der Leyen was aligned with Berlin and Washington, leaving little space for divergent views among the other commissioners. 'If you cannot identify and formulate collectively as a Commission,' Schmit said, 'you're just muddling through, and just crying big tears on what happens to the poor people of Gaza.' Schmit's term as commissioner for jobs and social rights ended late last year. His remarks come after his 'very good friend' and former colleague Josep Borrell, the bloc's former top diplomat, accused EU leadership of being 'complicit' in war crimes by Israel in an eyebrow-raising op-ed, published across British, French, Italian, Spanish and Belgian media. Reached for a response by Euractiv, the Commission declined to comment, saying it does not comment on comments. That Borrell, a Spaniard, would take such a position is perhaps unsurprising – Spain has emerged as one of the bloc's most vocal critics of Israel in recent months. Just last week, in a rare public rebuke of her colleagues, Teresa Ribera, one of the Commission's top-ranking vice presidents, said on Spanish national radio that she's been pushing von der Leyen to respond more forcefully. Schmit previously served as labour minister in Luxembourg – another European nation that has been loud in its criticisms of Israel. Still, he distanced himself from Borrell's words – 'it's not complicity, it's just weakness,' adding, 'there are divisions in the European Union, obviously, and Borrell must know them better than I do." Last week, member states debated the Commission's proposal to partially suspend Israel from the EU's flagship research programme, Horizon Europe, in what could become the bloc's first formal sanctions against Israel since 7 October. But no qualified majority emerged. Around 10 countries, including France, Spain, Ireland, the Netherlands and Belgium, supported the move, but Hungary, Austria, and the Czech Republic firmly opposed it. Germany and Italy, two of the largest nations which could tip the scales, said they needed more time for analysis. As the humanitarian crisis in Gaza worsens, Schmit believes the destruction is nearing a threshold the EU cannot ignore. 'What is done now to the Gaza people is just unacceptable. I do not want to enter into this legal debate if it's a genocide or not, but if it's not it's very close to [it],' he said. In Schmit's view, measures such as suspending Israel from Horizon Europe will likely have little impact on PM Benjamin Netanyahu. Instead, he suggested suspending the EU-Israel Association Agreement, describing the move as Europe's 'only weapon.' His critique that von der Leyen has mismanaged the Commission by not allowing more space for political debates on contentious subjects is not new; he also criticised his former boss on the campaign trail when he ran against her in an ill-fated bid to become Commission president last year. It is not unusual for politicians to discover their convictions once the burdens of office are behind them. Schmit and Borrell, like many before them, now seem intent on aligning themselves with what they hope will be the right side of history. But the war has also evolved drastically since they left the Commission, which could also explain why it took until July 2025 for the executive body to propose formal sanctions against Israel. As the death toll rises, von der Leyen has belatedly sharpened her rhetoric in recent months, calling for Israel to allow humanitarian aid into Gaza and denouncing the images circulating online of civilian casualties as 'unbearable.' Schmit's criticism of the Commission's chief extends beyond the war. He warned that under her leadership, commissioners 'very rarely' debated in meetings of the College. 'If you have this vertical organisation of power,' he said, 'commissioners are but the secretaries of the president. They are high civil servants.' Keep your eyes peeled for the full Q&A out later today. EU crumbles further on trade threats Amid rumours that the Commission is poised to unveil a joint statement to formalise its trade deal with the US, EU countries are expected today to delay their never used retaliation package by a whopping six months, my colleague Thomas Møller-Nielsen reports. The EU is essentially canning its €93 billion countermeasure package even though its flagship win from the much-criticised deal has yet to materialise: EU car exporters are still facing a 27.5% tariff even though the deal – such as it is – would lower the tariff to 15%. That reduced tariff is set to take effect on Friday. The timing couldn't be better – not. The EU Parliament's top trade lawmaker, Bernd Lange, told Thomas there's a risk the EU's digital rulebook could be scrapped to appease Washington, citing the 'big difference' between US and EU interpretations of the deal published last week. Read the full interview. Counterpoint : Humiliation is part of the strategy, argues SWP's Nicolai von Ondarza in this op-ed – though that's the problem. Spy trial could expose AfD secrets A Chinese espionage trial opening today reportedly threatens to spill internal secrets about the far-right Alternative for Germany. Prosecutors allege that Jian G – a former aide to Maximilian Krah, an ex-AfD MEP now sitting in the Bundestag – spied for China. G, who was arrested shortly before the 2024 European elections, allegedly compiled memos detailing attempted party coups, questionable business deals, and private details about co-leader Alice Weidel. According to German magazine Der Spiegel , these memos are part of the evidence in the case. Read more. The Capitals PARIS – LONDON | A Franco-British migration deal to limit Channel crossings comes into force today. The scheme, agreed in June, aims to send up to 2,600 rejected asylum seekers a year from Britain to France – which at current rates covers around three weeks' worth of small boats crossing the Channel. The European Commission will be part of a monitoring group to ensure the pilot project complies with EU law, and expects it will only last until the EU's new migration pact comes into force in June 2026. ROME | Italy is expanding its special economic zone to include the central regions of Umbria and Marche, extending benefits such as tax breaks and reduced red tape previously reserved for the south. PM Giorgia Meloni announced the move during a state visit to Marche, calling it a boost for entrepreneurship and investment. But with regional elections looming, critics suggest the timing appears politically motivated. Read more. BERLIN | The city of Bonn has joined several others, including Düsseldorf and Hanover, in offering to take in children from Gaza and Israel, following similar moves by France and Spain. While national support is key for entry and medical coordination, Berlin remains cautious, saying the priority is broader local aid. Chancellery Minister Thorsten Frei said Monday that transfers would help only 'individual cases.' MADRID | Spain's conservative Popular Party has demanded answers over multimillion-euro contracts awarded to Huawai for storing judicial wiretaps, calling top ministers to testify before Congress after the summer break. Party heavyweight Juan Bravo accused the government of ignoring EU and US warnings about security risks tied to the Chinese tech giant. THE HAGUE | The Netherlands will be the first NATO ally to send a €500 million package of US-made weapons, including Patriot missile systems, to Ukraine under a new European-funded deal praised by NATO Secretary-General Mark Rutte. The move is part of a broader NATO-backed push in which European countries provide US weapons from their stockpiles. Read more. WARSAW | In an official visit to Warsaw, Ukrainian Foreign Minister Andriy Sybiha announced that Kyiv has requested a €120 million loan from Poland to buy Polish-made military equipment, including Piorun missile launchers and Krab self-propelled howitzers. Also on Euractiv
Euractiv
8 hours ago
- Euractiv
Brussels might scrap digital laws to appease US, warns top EU lawmaker
The European Commission risks caving to US pressure to weaken its landmark digital regulations as it seeks to finalise last month's preliminary trade agreement with Washington, according to Bernd Lange, chair of the European Parliament's international trade committee. Speaking to Euractiv, the German MEP said 'there is a risk' that the EU's flagship Digital Services Act (DSA) and Digital Markets Act (DMA) – which regulate online content and curb market abuse by major tech platforms – could be scrapped to appease Washington, despite repeated assurances from the Commission that the bloc's digital rulebook is not up for discussion. Previous pledges, such as Brussels' promise to reject any deal that retained US President Donald Trump's 10% baseline tariff, were ultimately dropped to secure the so-called 'framework' agreement. The deal will expose most EU exporters to a 15% US levy, though key details remain under negotiation. 'Of course, there is a risk' that the EU could jettison its digital laws, Lange warned, citing the 'big difference' between US and EU interpretations of the deal published last week. A White House 'Fact Sheet' stated that both sides 'intend to address unjustified digital trade barriers', and pledged to 'maintain zero customs duties on electronic transmissions' and ensure that the EU 'will not adopt or maintain network usage fees'. By contrast, the European Commission's official summary of the deal made no reference to the EU's digital regulations. Adding to the confusion, US Commerce Secretary Howard Lutnick told CNBC last week that the EU's digital services taxes and 'attack' on US tech firms were still 'on the table'. Commission spokesperson for trade Olof Gill pushed back, saying the bloc's digital rulebook is 'absolutely not' up for discussion. The DSA, which targets harmful online content, has been repeatedly criticised by US officials – including Vice President JD Vance – for enabling 'digital censorship' and the 'silencing' of Brussels' political opponents. The DMA, meanwhile, has been central to the Commission's antitrust probes and fines targeting US tech giants like Google, Apple, and Meta, drawing backlash from Trump and Silicon Valley. A debatable deficit Lange said that fears over the Commission abandoning its digital laws are compounded by Brussels' capitulation in the dispute over the size of the EU's trade surplus with the US. Ahead of last week's agreement, EU Trade Commissioner Maroš Šefčovič repeatedly emphasised that the EU's €200 billion trade surplus in goods with the US was 'nearly balanced out' by its €150 billion deficit in services. He also pledged to 'solve' the 'problem' by increasing EU imports of US energy and food by €50 billion annually. However, under last month's agreement, the EU committed to purchasing $250 billion worth of US energy annually over the remaining three years of Trump's presidency – effectively endorsing Washington's argument that only trade in goods, but not services, is economically salient. 'Maroš said: 'We have to combine trade in goods and services as well, and then the trade deficit is so small, only €50 billion,'' said Lange. 'And then [Commission President] Ursula [von der Leyen] said: 'Oh yeah, there is a trade deficit on the US side, and we have to rebalance this.' So in this talk with President Trump, she took on board the argument of Trump.' Lange, a Social Democrat, also criticised the Commission – which oversees EU trade policy – for sidelining the European Parliament, the bloc's only directly elected institution, during negotiations. 'We had some discussions [with Commission officials] but there was, clearly, no taking on board of the Parliament's view, that's for sure,' said Lange. He added that it is 'really not acceptable' that von der Leyen – a fellow German from the rival centre-right European People's Party (EPP) – had centralised so much decision-making power on 'the thirteenth floor of the Berlaymont'. 'The US has specific interests,' Lange said. 'I hope that the Commission will [not] give up – but it's in the hands of Ursula.' (de)
