Latest news with #GitanasNausėda
Malay Mail
3 days ago
- Business
- Malay Mail
Europe's strategic reset: Turning Trump's return into opportunity, a 10 is still a 10? — Phar Kim Beng and Luthfy Hamzah
JUNE 27 — With the July 9 deadline for a breakthrough transatlantic trade deal fast approaching, quiet recalibrations are already underway in Brussels. Gone is the rigid insistence on securing zero-per cent tariffs with Washington across the board. Instead, European officials are now signalling that they may accept a 10 per cent baseline tariff as the new normal in their negotiations with a returning Trump administration. As President Emmanuel Macron affirmed: 'A ten is still a ten.' In other words, it is better to handle a US tariff of ten per cent by July 9, rather than butting head with the Trump is for a complete zero perfect tariff. For many in the European Commission and key member states like France and Germany, this shift represents a calculated retreat from idealism in favour of strategic realism, for now. The goal is no longer perfect parity—but preferential predictability. If a 10 per cent tariff averts a full-blown trade war and preserves access to American markets for the EU's high-end manufacturers, especially in autos, chemicals, and green tech, then it may be the best bargain they can extract under the circumstances. This thinking was encapsulated by Lithuania's President Gitanas Nausėda, who stated that the EU could at most 'hope to be treated like the United Kingdom.' In other words, a bespoke, asymmetrical arrangement with moderate trade-offs is now being viewed not as failure, but as strategic hedging in a world of fast-shifting economic power dynamics. Rather than viewing Donald J. Trump's potential return to the White House as a catastrophe for transatlantic relations, parts of the EU are beginning to see it as a moment to reset — and even reimagine — their strategic position. Trump may be erratic, but he is also transactional. That opens space for negotiated gains — if approached with agility, focus, and a clear-eyed view of global shifts. One such shift — arguably the most significant yet under-discussed — is the recent rare earth agreement between the United States and China. At first glance, it appears contradictory: after all, Washington and Beijing remain locked in a broader techno-strategic rivalry, complete with sanctions, export controls, and decoupling rhetoric. But the deal reveals something deeper about the evolving nature of power: even rivals must cooperate in critical sectors. The US-China rare earth deal: A strategic necessity Rare earth elements — 17 obscure minerals with names like neodymium, dysprosium, and terbium — are the backbone of modern technology, from smartphones to missiles, wind turbines to EV motors. For years, China has maintained a near-monopoly over their mining and processing, controlling over 69 per cent of global supply. This strategic dominance has long worried US officials, especially as green and defence technologies escalate in both importance and demand. Against this backdrop, the United States has moved to secure a limited but crucial agreement with China: Beijing will guarantee stable exports of rare earths and certain value-added materials to American industries under a supervised, traceable regime. In return, Washington has agreed to temporarily relax specific export restrictions on American advanced mining equipment and allow non-dual-use technology exchanges in the sector. This deal — quietly negotiated between mid-level envoys in Geneva and Singapore over the past six months — is not a truce in the broader US-China contest. Rather, it is a strategic compartmentalisation, allowing both powers to secure mutual interests in one domain while continuing to compete in others. For Europe, however, the implications are profound: the two superpowers are cutting deals without Brussels at the table — and over resources that will define the 21st century. Europe's critical crossroads This US-China rare earth accord exposes a structural weakness in the EU's global positioning. Despite years of talk about 'strategic autonomy,' the EU has yet to develop significant rare earth processing capacity. Projects in Sweden, Greenland, and France remain years from operational maturity. Meanwhile, the bloc's dependency on Chinese supply remains near-total. Even worse, the EU lacks a coherent common foreign economic policy to negotiate comparable bilateral deals. Its consensus-driven model, though admirable for democratic governance, often hinders agility in crisis response and strategic industrial decisions. President Nausėda's comment reflects an awareness that the EU must now negotiate from a position of limited leverage. Trump's transactionalism may, paradoxically, offer opportunity here. If Brussels can align its interests with Washington's emerging industrial policy — particularly around clean tech, AI, and semiconductors — it may yet secure sector-specific pacts even under a sceptical or abrasive administration. US President Donald Trump gestures during a press conference at a Nato summit in The Hague, Netherlands June 25, 2025. — Reuters pic A three-pronged reset for Europe To seize this opportunity, the EU must reframe Trump's potential presidency not as a threat but as a catalyst for strategic reset. This entails a three-pronged strategy: 1. Rebuild transatlantic trust through sectoral alignment: Europe should identify sectors where mutual interests with the US are strong and immediate — such as rare earths, hydrogen energy, and cyber defence — and offer co-investment frameworks. A Euro-American Innovation Corridor could be one such proposal, linking industrial clusters across both sides of the Atlantic. 2. Invest in rare earth autonomy, urgently: Brussels must expedite projects in Sweden and Greenland but also partner with African and South-east Asian countries rich in rare earth deposits. For example, with Malaysia already poised to position itself in rare earth processing in future, especially on non-radioactive separation technology with Japanese or Chinese assistance, the EU should offer co-financing, governance frameworks, and environmental best practices in Malaysia to create a non-China-aligned supply network. If EU wants to. Otherwise, EU would be lacking in any leverage with US and China separately. 3. Speak with one voice in trade negotiations: If individual member states — especially Germany and France — pursue bilateral deals with the US, the EU's collective weight will diminish. A unified negotiating front, supported by the European Commission and the European External Action Service, is critical to avoiding divide-and-rule outcomes under a Trump presidency. Trump's style, Europe's substance Unlike the Cold War era, today's great power competition isn't about ideology alone — it's about who controls the flows of technology, data, and critical materials. Trump's preference for deals over doctrines may clash with the EU's normative style but therein lies an opening. Europe must learn to translate its regulatory power into geo-economic leverage, and to do so swiftly. The EU can no longer afford to expect 'special relationship' privileges. It must earn them. This means real investments in defence (to answer Trump's Nato criticisms), real proposals on trade (to complement US nearshoring), and real partnerships with third countries (to diversify away from Chinese dependence). President Nausėda's statement should not be seen as defeatist, but as pragmatic. If Europe accepts the reality of Trump's worldview and responds with bold, flexible initiatives, it can avoid marginalisation. Strategic reset begins not in despair — but in clarity. Conclusion: Reset, not retreat The rare earth deal between the US and China shows that even amidst rivalry, room for cooperation exists — if interests align. For the EU, the lesson is clear: waiting for ideal conditions is no longer viable. It must act now to safeguard its industrial future, secure its place in the new trade order, and reimagine its transatlantic relationship — regardless of who sits in the Oval Office. Trump may not be the leader Europe wanted. But he may be the wake-up call it needs. *Phar Kim Beng is Professor of Asean Studies at the International Islamic University Malaysia. Director of Institute of Internationalisation and Asean Studies (IINTAS). Luthfy Hamzah is Senior Research Fellow at Strategic Pan Indo Pacific Arena (SPIPA) Kuala Lumpur. Both authors write on geopolitics, global trade, and strategic affairs in Asean, EU and US China dynamics. * This is the personal opinion of the writers or publication and does not necessarily represent the views of Malay Mail.
Yahoo
08-06-2025
- Politics
- Yahoo
Lithuanian president criticises German chancellor for inaction on Russia
Lithuanian President Gitanas Nausėda has criticised Western leaders, in particular German Chancellor Friedrich Merz, for not fulfilling threats of sanctions against Russia for the war it unleashed in Ukraine. Source: Nausėda in an interview with German tabloid Bild, as reported by European Pravda Details: When asked if Merz undermined the credibility of Europe, Nausėda replied: "Of course. It's a problem". Quote: "And this affects not only the credibility of our sanctions, but also the credibility of all our measures against Russia and our support for Ukraine." More details: After a visit to Kyiv last month, Merz, along with French President Emmanuel Macron, UK Prime Minister Keir Starmer and Polish Prime Minister Donald Tusk, called on Russia to agree to a 30-day truce. The leaders threatened sanctions in case of refusal. Russia ignored the call, but no new sanctions followed. "We have often stated that we will support Ukraine and supply combat aircraft, long-range missiles and ammunition," Nausėda added. "But we are not able to fulfil these promises." Nausėda emphasised that Ukrainians need equipment and ammunition now, not tomorrow. Background: After talks with US President Donald Trump, Merz emphasised the shared responsibility of Berlin and Washington to increase pressure on Russia. During the meeting with Trump in the Oval Office, Merz avoided direct confrontation with the US president but gently emphasised that Germany stands with Ukraine. Support Ukrainska Pravda on Patreon!
Yahoo
08-06-2025
- Politics
- Yahoo
Lithuanian president criticises Merz over inaction on Russia
Lithuanian President Gitanas Nausėda has spoken out against the failure of Western leaders to follow through on threats of sanctions against Russia for its war in Ukraine. Commenting on whether German Chancellor Friedrich Merz had undermined Europe's credibility, Nausėda told the Sunday edition of the Bild newspaper: "Absolutely. That is a problem." "And it doesn't just affect the credibility of our sanctions, but the credibility of all our measures towards Russia and our support for Ukraine," the president said in remarks published on Sunday. Following a visit last month to Kiev, Merz, together with French President Emmanuel Macron, British Prime Minister Keir Starmer and Polish Prime Minister Donald Tusk, called on Russia to agree to a 30-day ceasefire. The leaders threatened sanctions in the event of a refusal. Russia let the deadline pass - and no new sanctions followed. "We have often announced that we will support Ukraine and supply combat aircraft, long-range missiles and ammunition. But we are not in a position to keep these promises," Nausėda told the newspaper. The Ukrainians need the equipment and ammunition now, not tomorrow, he said, stressing that sanctions against Russia to date have not been sufficiently decisive.
Yahoo
02-06-2025
- Business
- Yahoo
NATO summit must demonstrate Alliance's commitment to Ukraine, say presidents of Lithuania, Poland and Romania
The presidents of Lithuania, Poland and Romania have stated that the NATO summit in The Hague, scheduled for the end of June, must demonstrate the Alliance's commitment to Ukraine. Source: a joint statement from the summit in Vilnius involving leaders of the Bucharest Nine and the Nordic countries, as reported by European Pravda Details: According to the statement by Gitanas Nausėda, Andrzej Duda and Nicușor Dan, who co-chaired the meeting in Vilnius, "the Summit in The Hague must demonstrate NATO's continued support and commitment to Ukraine". Quote: "We stand firm on Allied decision and commitment regarding Ukraine's irreversible path to full Euro-Atlantic integration, including NATO membership. Ukraine has the right to choose its own security arrangements and to decide its own future, free from outside interference." Background: On 2 June, NATO Secretary General Mark Rutte stated that all NATO member states had agreed on Ukraine's membership, emphasising that this issue cannot be part of any peace negotiations between Kyiv and Moscow. In an interview with ABC News, Keith Kellogg, US President Donald Trump's special envoy for Ukraine, stated that the United States considers Russia's concerns about NATO expansion fair and is ready to discuss the matter. Support Ukrainska Pravda on Patreon!
CNN
23-05-2025
- Politics
- CNN
Germany deploys permanent troops to another country for the first time since World War II
Chancellor Friedrich Merz inaugurated a groundbreaking German brigade in Lithuania that is meant to help protect NATO's eastern flank and declared Thursday that 'the security of our Baltic allies is also our security' as worries about Russian aggression persist. He said Berlin's strengthening of its own military sends a signal to its allies to invest in security. The stationing in Lithuania marks the first time that a German brigade is being based outside Germany on a long-term basis since World War II. 'This is a historic day,' Lithuanian President Gitanas Nausėda said after meeting Merz. 'This is a day of trust, responsibility and action.' Germany has had troops in Lithuania — which borders Russia's Kaliningrad exclave and Moscow-allied Belarus — since 2017, as part of efforts to secure NATO's eastern fringe, but the new brigade deepens its engagement significantly. An advance party started work on setting it up just over a year ago and expanded into an 'activation staff' of about 250 people last fall. The 45 Armored Brigade is expected to be up to its full strength of about 5,000 by the end of 2027, with troops stationed at Rukla and Rudninkai. Dozens of military helicopters roared over the central cathedral square in Lithuania's capital, Vilnius, as the inauguration wrapped up on a rainy Thursday afternoon, with hundreds of troops and spectators attending. Merz told the event that 'protecting Vilnius is protecting Berlin.' The deployment in Lithuania has been taking shape as Germany works to strengthen its military overall after years of neglect as NATO members scramble to increase defense spending, spurred by worries about further potential Russian aggression and pressure from Washington. Merz said that, beyond the new brigade, 'Germany is investing massively in its own armed forces.' 'With this, we also want to send a signal to our allies: let us now invest with determination in our own security,' he added. 'Together with our partners, we are determined to defend alliance territory against every — every — aggression. The security of our Baltic allies is also our security.' Shortly after Russia launched its full-scale invasion of Ukraine in 2022, then-Chancellor Olaf Scholz pledged to increase Germany's defense spending to the current NATO target of 2% of gross domestic product and announced the creation of a 100 billion-euro ($113-billion) special fund to modernize the Bundeswehr. Germany met that target thanks to the fund, but it will be used up in 2027. Even before it took office earlier this month, the new governing coalition pushed plans through parliament to enable higher defense spending by loosening strict rules on incurring debt. Merz, the first chancellor to have served in the Bundeswehr himself, told parliament last week that 'the government will in the future provide all the financing the Bundeswehr needs to become the strongest conventional army in Europe.' Host Lithuania said in January that it would raise its defense spending to between 5% and 6% of GDP starting next year, from a bit over 3%. That made it the first NATO nation to vow to reach a 5% goal called for by US President Donald Trump. A plan is in the works for all allies to aim to spend 3.5% of GDP on their defense budgets by 2032, plus an extra 1.5% on potentially defense-related things like infrastructure — roads, bridges, airports and seaports. Merz said in Lithuania that those figures 'seem sensible to us, they also seem reachable — at least in the time span until 2032 that has been stipulated.' German Defense Minister Boris Pistorius said earlier this week that the plan is to increase defense spending by 0.2 percentage points each year for five to seven years. Merz has plunged into diplomatic efforts to bring about a ceasefire in Ukraine since taking office earlier this month. 'We stand firmly by Ukraine, but we also stand together as Europeans as a whole — and, whenever possible, we play in a team with the US,' he said.
