Might an EU-US deal be struck to keep away from a full-blown commerce warfare?

Good morning. A scoop to start out: Brussels is weighing new powers to briefly cap EU fuel costs, which not too long ago hit report ranges in contrast with the US, to protect European trade from excessive power prices.

Final night time, Russia launched an American trainer from jail in a transfer Donald Trump’s White Home described as a present of “good faith” that may assist talks to finish the warfare in Ukraine.

At the moment, our tech and commerce correspondents report on yesterday’s assembly between Ursula von der Leyen and JD Vance in Paris. And our monetary correspondent previews right this moment’s first step in Brussels’ long-threatened warfare on purple tape.

Face/Off

European Fee president Ursula von der Leyen has signalled that Washington is open for offers to keep away from all-out commerce warfare after assembly US vice-president JD Vance yesterday, write Barbara Moens and Andy Bounds.

Context: Thus far, Europe’s technique with Donald Trump has favoured engagement over confrontation. However on Monday, the US president confirmed he desires to impose 25 per cent tariffs on all metal and aluminium imports on March 12. The European Fee mentioned it would retaliate in opposition to US tariffs with “firm and proportionate countermeasures”.

The assembly in Paris, along with chief EU diplomat Kaja Kallas, was the primary face-to-face dialog between von der Leyen and a senior member of the brand new US administration. An individual briefed on the talks mentioned they have been very constructive and centered on areas the place pursuits aligned.

After the assembly, von der Leyen thanked Vance for a “good discussion on our shared challenges as allies”.

In a separate assertion printed after the assembly, she “reaffirmed the EU’s commitment to a fair trade relationship [with the US], while both parties expressed their intention to prioritise economic areas of mutual interest, including energy”.

Von der Leyen has beforehand mentioned the bloc is prepared to purchase extra US liquefied pure fuel, suggesting the place a possible deal might land.

EU commerce ministers will meet for a video name this afternoon to debate the scenario, however will not be anticipated to enter any particulars of a possible retaliation. The principle goal is to “display unity,” one EU diplomat mentioned.

One other matter mentioned by von der Leyen and Vance was synthetic intelligence. The US president didn’t pull his punches on AI, utilizing a speech earlier within the day to lash out in opposition to EU tech regulation, as an example calling Brussels’ content material moderation guidelines for on-line platforms “authoritarian censorship”.

He additionally mentioned that the US “is the leader in AI, and . . . plans to keep it that way.” This comes simply because the EU introduced it will mobilise €200bn “to make Europe an AI continent”.

In addition they talked in regards to the transatlantic strategy in direction of Ukraine and China. Each Vance and von der Leyen will later this week additionally attend the Munich Safety Convention, the place the way forward for Ukraine would be the important matter.

Chart du jour: Strained relationship

Most Europeans view the US as a “necessary partner”, relatively than an “ally”, based on a brand new survey by the European Council on International Relations printed right this moment.

Street journey

The rubber on Ursula von der Leyen’s simplification drive hits the highway right this moment, because the European Fee presents plans on which areas it desires to trim, writes Paola Tamma.

Context: Fee president von der Leyen has vowed to slash purple tape to make life simpler for companies. The fee is because of suggest a so-called “omnibus” regulation later this month streamlining 4 totally different items of laws — the primary of a number of such legal guidelines. Subsequent up: enhancing entry to funding, paperless forms, less complicated chemical legal guidelines.

“The accumulation of rules over time at different levels, their increased complexity and implementation challenges are having a significant impact on Europe’s competitiveness,” the fee writes in a draft of a communication to be offered right this moment.

It pledges to “review and adapt our regulatory framework to make it more responsive to the needs of people and businesses,” based on the draft seen by the Monetary Instances.

“Companies are fed up. We have to show them that something works,” mentioned one senior EU official briefed on the hassle.

Lobbying on the primary omnibus regulation is rife, with letters from international locations together with Germany, France and trade lobbies circulating in Brussels. One by Italy, seen by the FT, asks for lowered reporting necessities for firms and to push again the implementation of sustainability guidelines “until all outstanding issues have been properly addressed”.

Brussels is eager to emphasize this isn’t a push for deregulation, however to “make the Green Deal workable,” the official mentioned. However environmental campaigners are nervous.

“If you delay something, that’s deregulation. If you remove some meaningful part of the legislation, that’s deregulation,” mentioned Sebastien Godinot from WWF Europe’s workplace.

What to observe right this moment

1. Canadian Prime Minister Justin Trudeau meets European Fee president Ursula von der Leyen, EU Council president António Costa and Nato secretary-general Mark Rutte in Brussels.

2. EU commerce ministers meet on-line to debate US tariffs.

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