This was supposed to be an EU summit about the EU’s long-term budget. But things are never easy for EU leaders, and world events have a nasty habit of making their way onto the itinerary. That meant this European Council had a lot more on the agenda than the last handful of summits, at least: Energy, migration, enlargement, Ukraine, and more besides were covered — and very little, if anything, was decided. Have FOMO because you weren’t there? Don’t worry, we’ve got you covered. Here’s POLITICO’s rapid roundup of what we learned at the European Council. 1) ENERGY STOLE THE SHOW RIGHT OUT OF THE GATE The summit’s first major clash came Thursday morning, with EU leaders split over whether to delay ETS2, the bloc’s second phase of carbon pricing, to address high energy prices, triggering a three-hour-long standoff. Italy and Greece joined the Visegrád Four — Czechia, Hungary, Poland and Slovakia — in calling for a delay, a push rejected by the majority of countries. The debate dragged on, delaying lunch (spare a thought for our hungry leaders!) and leading to the cancellation of a press conference on Thursday night. 2) BUDGET NEGOTIATIONS ARE A MARATHON… Negotiations on the bloc’s next long-term budget were expected to be one of the summit’s most contentious topics. But they were a nothingburger, with most leaders repeating positions they have held for months. The summit brought them no closer to a breakthrough. Many countries, of course, want a smaller budget, with Swedish Prime Minister Ulf Kristersson telling reporters that his country is “not an ATM for the EU.” Belgian Prime Minister Bart De Wever, meanwhile, said he had no choice but to be frugal at the European level, arguing he is used to tightening his belt at home because his wife is Dutch. Think of Bart next time your Dutch friends ask you to pay them back for that coffee. 3) … AND A SPRINT European Council President António Costa is still aiming to get a budget deal before the end of the year, according to two EU officials. He announced that leaders will hold a special summit at the end of November to try and make progress (and there’s a December summit too). But that timing leaves them up against the clock to reach a deal by year’s end. See you all back here on Nov. 26! 4) EU LEADERS MAY NEED TO BRING EXTRA LUGGAGE NEXT TIME If leaders do hope to agree on the EU’s long-term budget this year, they should prepare for long negotiations in November and December. German Chancellor Friedrich Merz suggested the pre-Christmas summit could last longer than the scheduled two days. “For the December summit, we should pack a few more shirts than usual,” he said. Gulp! 5) YOUR NEXT HOLIDAY TO CYPRUS MIGHT BE A LITTLE EASIER Cypriot President Nikos Christodoulides told reporters he hopes EU leaders will discuss his country’s bid to join the Schengen travel zone at the December summit. “All technical preparations have already been completed, and we hope that the matter will be discussed by the relevant council in December so that the final political decisions can be made,” he said. 6) ROSE-COLORED GLASSES HAVE COME OFF WHEN IT COMES TO COSTA European Council President António Costa drew the ire of some leaders over his handling of negotiations to curb high energy prices, which had become a “mess,” three EU diplomats told POLITICO, with another two diplomats saying that leaders were fuming at Costa for allowing talks to go off the rails. 7) DRINK (A LITTLE) LESS BEER TO HELP UKRAINE Ahead of the summit, Latvian Prime Minister Andris Kulbergs told reporters that supporting Ukraine costs each European the equivalent of one beer a year. “That one beer is just a cost [for EU citizens]. There, it’s a cost of life. We drink less, their lives are saved,” he said. “Simple as that.” He didn’t say whether he meant a beer bought in Stockholm or Prague. As anyone in Belgium knows, not all beers are created equal — or cost the same. 8) THE EU PARLIAMENT WANTS YOU TO KNOW IT MATTERS TOO The European Parliament’s two lead negotiators on the EU budget made the rounds of the press room to make sure journalists heard their views. Siegfried Mureșan (of the European People’s Party) and Carla Tavares (Socialists and Democrats) both stressed that the Parliament’s position is important. Meanwhile, European Parliament President Roberta Metsola joined leaders for the first part of the summit. Metsola said she had made it clear to them that “the Parliament is not a rubber-stamp and never will be.” 9) TALKING CHINA (WITHOUT MENTIONING CHINA) Leaders discussed trade imbalances (read: China) over lunch on Thursday and welcomed the deal the European Commission struck with China last week to curb imports of Chinese hybrid vehicles. Czech PM Andrej Babiš even went so far as to call the deal “fantastic.” POLITICO scooped that the European Commission is expected to work on trade measures tackling imports of chemicals and industrial machinery in an effort to protect European industry from unfair Chinese competition. 10) NEW BROMANCE BREWING Hungarian PM Peter Magyar posted a late-night selfie with Dutch PM Rob Jetten on social media after day one of the summit. The two were all smiles and “tired, but not sad”, as Magyar put it in his tweet. In reaction to the tweet, Jetten told reporters, “We are more or less of the same generation and a tad more direct and pragmatic than some colleagues in the European Council, so there’s a click.” > We started at 7:30 this morning in Brussels. The second shift begins after 10 > PM, with Dutch Prime Minister Rob Jetten @MinPres. > Tired, but not sad. pic.twitter.com/dmtSMbqG4m > > — Magyar Péter (Ne féljetek) (@magyarpeterMP) October 15, 2026 11) BACK TO THE CASTLE António Costa announced that another competitiveness summit at Alden Biesen castle in the Belgian countryside will take place in February 2027, three EU diplomats told POLITICO. Leaders already visited the castle earlier this year, and they clearly loved the Belgian countryside so much they want to return (or Costa is forcing them to go). 12) STILL REELING FROM CEUTA Ahead of Friday’s talks, 16 EU leaders met to discuss migration over breakfast (before discussing migration over lunch with everyone else). According to one EU diplomat, leaders broadly agreed that the EU should be able to suspend asylum applications when faced with a sudden influx of migrants that may have been engineered on purpose. But would that mean the EU will implement pushbacks (which are banned under EU law)? 13) DENMARK, ITALY AND POLAND WANT TO BE TOUGHER ON MIGRATION The three leaders joined forces to argue that migration is a concern for many EU citizens and is contributing to rising crime rates. That caused a delay to an already shockingly long summit. 14) THERE WERE SOME AGREEMENTS Italy’s Giorgia Meloni and Spain’s Pedro Sánchez found some time on the sidelines of the summit to chat about Rome’s restrictions on Spanish nationals sparked by the Ceuta crisis. Plus, France and Germany said they had struck a deal to favor European-made cars under the Industrial Accelerator Act in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies. 15) EU LEADERS GET THE GOOD STUFF TO EAT Thursday’s lunch menu featured a “full-flavored vegetable jus.” Not a little flavor, not a medium amount of flavor, but the full flavor. Then on Friday there was a “rich jus”. There was also a Champagne sauce. Only the best for our leaders! 16) THE SAME CAN’T BE SAID FOR REPORTERS Some POLITICO journalists lamented the lack of vegetarian options at the Council canteen. Pray for us. 17) NO HARSH WORDS FROM EU TO ZELENSKYY At a press conference on Friday afternoon, Volodymyr Zelenskyy was asked whether EU leaders had expressed annoyance at his recent tone toward U.S. President Donald Trump. The question followed reports that some capitals were frustrated with him and worried he was further riling the White House. But it was all love from Zelenskyy, who said there had been no harsh words during his time in the summit room. “I heard from my European colleagues support and only support, and I’m grateful for this,” he said. 18) NO HUGS FOR FICO As Zelenskyy entered the European Council building, he was seen hugging and kissing fellow leaders — with one exception: Slovakia’s Prime Minister Robert Fico received no hug. That may well have been because Slovakia is preparing to revive a dormant cooperation forum with Moscow. 19) 20M UKRAINIANS COULD FLEE TO EUROPE IF RUSSIA WINS WAR Zelenskyy issued a stark warning to Europe: if Russia wins the war, as many as 20 million Ukrainians could be forced to flee to Europe. Over 4 million Ukrainians already live in EU countries under temporary protection status, according to Eurostat.  20) EU LEADERS HAVE FORGOTTEN ABOUT BRITAIN … OR HAVE THEY? There was plenty of talk across the Channel this week about the U.K. potentially rejoining the bloc, but the subject did not come up at the summit, even with an EU-U.K. summit due next month. EU leaders have more pressing issues on their minds. Still, some had things to say about the U.K.’s relationship with the EU. Foreign policy chief Kaja Kallas said “all our friends are welcome to join,” naming Britain alongside Canada, Norway and Iceland as partners seeking closer ties. Latvian Prime Minister Andris Kulbergs suggested the U.K. “should come back to the family,” although he also said that Russia “had its hands on Brexit.” 21) AT POLITICO, WE SAVE THE BEST FOR LAST Covering European Councils often involves a lot of waiting around, but during this summit conditions were a little tougher because of a phantom farter among reporters waiting for Zelenskyy’s press conference. POLITICO went viral in Brussels’ diplomatic and journalistic circles for reporting the hard facts on our live blog. While this summit’s agenda was packed, in the end not many concrete decisions were taken. Some might say the summit was a load of hot air.

DUBLIN — The Irish capital, which doubles as Europe’s de facto tech capital, hosted two very different AI summits in the past week. Most eyes were on the International AI Summit, the signature tech event of Ireland’s six-month presidency of the Council of the EU, where top brass from the world’s biggest tech firms discussed ways to harness artificial intelligence and minimize safety risks. But the weekend before, a very different conversation was taking place at the Workers’ AI Counter Summit, as Ireland’s tech workers demanded a say in how the burgeoning technology reshapes the workplace and society. Ireland’s lucrative tech sector has been rattled by waves of AI-driven layoffs — and the country’s fledgling tech union has seen an exponential spike in sign-ups from workers who are worried about their future.   There’s an “awakening” happening right now among workers in Ireland’s tech sector, and a growing “awareness that they’re not bulletproof,” said Sinéad Gibney, a social democrat lawmaker who previously worked for Google.   “I do think what we will see is that parts of roles will be automated, which means that people will be competing more heavily for the same roles,” she said. “They won’t have the same labor power and therefore we’re going to see a drop in quality of work, we’re going to see more zero-hour contracts, in more places than we already see it.” The labor movement brewing in Ireland, where many of the world’s tech giants have their EU bases, is part of a wider trend among tech workers globally, who have seen their work disrupted by rapidly evolving AI. RISE IN LAYOFFS Ireland’s dedicated union for tech workers, the Digital and Techworker Alliance (DATA), has seen a five-fold increase in membership since it was first founded in 2023.   In its first year and a half of existence, membership hovered around 270 people. In the past year-and-a-half, it’s jumped to more than 1,350 members, DATA organizer John Bohan told POLITICO.  He added that this number tends to spike around layoffs and other actions. “The tech industry was founded on the idea that it would never have a union, because they’re making people rich, and treat them really well,” Bohan said.  “But post-Covid, workforce adjustments happened again and again, with layoffs and declining conditions in the sector. We started to see more people wanting to get organized around redundancies.”   The spike in sign-ups coincides with a wave of layoffs in Ireland’s tech bubble (and the tech sector globally), as companies corrected pandemic-era overhiring, and diverted investment to AI.   Ireland hosts the EU headquarters of most of the world’s largest tech companies, and more than 170,000 people are employed in the tech sector, according to the country’s statistics institute. Social media giant Meta has roughly halved its workforce in Ireland since the pandemic, axing well over 1,000 roles to offset AI investment and boost efficiency. Separately, Meta subcontractor Covalen also announced massive layoffs earlier this year, cutting more than 700 people.   Video-sharing platform TikTok announced this year it would shed around 300 Irish jobs, mostly from its trust and safety team, shifting the work to other countries, outsourced vendors or automated AI solutions.   A report by the IMF earlier this year warned that Ireland’s labor market is “relatively more exposed” to AI than many advanced economies, partly due to its concentration of tech workers.   The AI race is also creating new jobs on the Irish market – as AI firms like Anthropic and OpenAI are setting up Irish bases and trying to lure Big Tech workers with even bigger salaries.   Amid the uncertainty and volatility of the AI boom, tech workers are turning to unions for the first time as a safety net. One tech worker who used to work in trust and safety at a big tech firm told POLITICO that there used to be a feeling that as a “pampered” tech worker you “can’t ask for your rights, because you already have it so much better.”  But as layoffs continue and teams get leaner, workers in fields like trust and safety “now have to deal with these issues with fewer and fewer resources”, and face a “constant threat of being chopped,” the worker said.   That’s causing an “undoing of a certain perspective that we have of ourselves as tech sector workers,” they said, “because of undeniable experiences that now put us in situations where we clearly see our rights being violated, even if we may have it so much or somewhat better than most people.”  A different tech worker who currently works for Covalen told POLITICO that there is a sense that “if they believe they can replace you with AI, they will do that.”   “All these Big Tech firms only care about profit, and what I have realized is the Irish government protects that Big Tech capital [rather than workers],” the Covalen worker said. “But the question is, what’s the government going to do when the tech bros change their mind and move elsewhere?”   WORKERS AT THE CENTER The speaker list at this week’s AI summit was a flex of the country’s strength as a tech hub, as top names from the world’s biggest companies like Google and Microsoft took to the stage. Fionnuala Ní Bhrógáin, head of organizing and campaigning at Ireland’s Communications Workers’ Union (DATA’s parent union), was the only union voice on the line-up. “The fact that 36 executives and industry bosses featured on the program, compared with just one trade union speaker — invited at the last minute after attention was drawn to the absence of workers’ voices — says a lot about the value the Irish government places on AI’s impact on workers,” she told POLITICO. “The reality is that a meaningful conversation about AI’s future can only happen through genuine engagement with workers and collective bargaining,” Ní Bhrógáin added. “Without that voice, we risk deepening mistrust and resistance rather than creating the conditions for workers to shape these changes collectively.” DATA organized its counter-AI summit the previous weekend, to put “workers at the center of the debate about power, AI, technology and the future of work.”  The event cut through the “hype and futurism of politicians and industry figures to focus on the real present harms faced by ordinary workers and communities,” DATA’s Bohan said.   The union is pushing for stronger legal protections for tech workers caught up in AI-driven layoffs in Ireland, including making it mandatory for employers to recognize unions during collective bargaining. It is also calling for a ban on cooling-off clauses that prevent laid-off workers from moving between Big Tech subcontractors.   A spokesperson for Ireland’s department for enterprise told POLITICO in a written statement that the government is “committed to strengthening collective bargaining and industrial relations” and has published an action plan to do so between now and 2030.   They said that employers already have to comply with obligations under Irish employment law, including consultation and notification procedures for collective redundancies, and workers who feel those rules have been broken can complain to the Workplace Relations Commission.  Firefighting to future-proofing  Naoise Ó Cearúil, a center-right Fianna Fáil lawmaker who chairs the AI committee, pointed out that while there have been high-profile job cuts in Ireland’s tech sector, “the actual net is that there has been an increase [in jobs], particularly over the past year and even five years.”  According to Ireland’s central statistics office, total employment in tech and related sectors surpassed 177,000 in the second quarter of this year, up from around 144,000 at the same time in 2021.   Ó Cearúil pointed out that many job losses were in trust and safety jobs like content moderation that are “very difficult mentally,” and now tech firms are able to “utilize AI and software to be able to do a lot of detection, rather than using humans.”   He has called for a national program to be established, to support workers whose jobs are at risk due to AI and automation.   A spokesperson for Ireland’s department of enterprise acknowledged that the country’s tech sector has “experienced significant adjustment in recent years,” but said the changes were generally part of wider global restructuring “rather than reflecting any Ireland-specific weakness.”  They said the Irish government is currently focused on “ensuring workers and businesses are equipped to adapt to technological change through investment in education, training, lifelong learning and digital skills.”  

BRUSSELS — France and Germany said Friday they had struck a deal to favor European-made cars under a landmark EU industry bill in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies. Under the agreement, Germany would accept stricter “Made in Europe” — or local content — requirements for the automotive industry in the proposed Industrial Accelerator Act, a longstanding French demand, while France would back Berlin’s push to relax the EU’s plan to phase out new combustion-engine cars. The EU’s current target is for companies to reduce emissions from new vehicles by 100% from 2021 levels by 2035, with the possibility to “earn” 10% of emissions leeway through initiatives like offsets and investments. France and Germany now want to soften the 2035 target to 90% but without having  to offer investments in alternative fuels to compensate the remaining 10%, as proposed by the European Commission. “This balanced approach will enable the European Union to pursue its climate objectives while strengthening the technological sovereignty, industrial base and international competitiveness of its automotive industry,” the two countries said in a joint statement. The agreement, first reported by POLITICO in July, was due to have been announced Thursday, during a meeting of EU leaders in Brussels. But it was held up at the last minute by disagreements within Germany’s governing coalition. “We hope that this Franco-German dynamic can swiftly lead to an agreement with our partners, for our jobs and our industry,” French President Emmanuel Macron said in a post on social media. An Elysée official on Friday made clear that, under the Franco-German deal, the scope of Made in Europe for automotive can be extended to the U.K. and Switzerland under certain conditions. — addressing a key concern of Prime Minister Andy Burnham’s government ahead of a Nov. 20 U.K.-EU summit in Brussels. The agreement was reached after the German Social Democratic Party, the junior partner in Chancellor Friedrich Merz’s coalition government, dropped its opposition. “This is a modern realignment of German industrial policy that places significantly greater emphasis on preserving jobs and production sites,” said German Environment Minister Carsten Schneider, who is from the SPD. “The clear expectation for German companies is that they will use these new opportunities to make investments and guarantee jobs here in Germany,” he added. CORRECTION: This article was updated on Oct. 16 after an earlier version misrepresented the figures in the Franco-German proposal on the softening of 2035 targets.

LONDON — Britain’s Labour MPs are talking furtively about ousting their leader. There’s just one hurdle: they need to work out how. Prime Minister Keir Starmer is facing renewed outrage in his party after he admitted knowing that Peter Mandelson continued his friendship with the convicted sex offender Jeffrey Epstein, but appointed him as ambassador to the U.S. anyway. It’s the latest crisis for Starmer, whose personal popularity has tanked despite Labour winning in a 2024 landslide. Yet while MPs have anonymously thrown around potential challengers’ names for months, nothing has happened. They include former Deputy PM Angela Rayner, Health Secretary Wes Streeting, Home Secretary Shabana Mahmood, Defence Secretary John Healey and 2024-entry minister Al Carns. (All publicly insist they are loyal to Starmer.) The upshot is that Starmer could remain in office for months or even years, even while his own MPs drift from his leadership. The hurdles are mostly political, given local elections looming in May and there is no single heir apparent, but procedure is to blame too. Labour’s internal rules, which have changed since the last time a sitting leader was challenged in 2016, are notorious for being far more opaque than in the opposition Conservative Party. Challengers need 80 fellow MPs to back them in order to trigger a contest, but the exact process is “concerningly vague” and “muddy,” one Labour official said. They added: “Everyone is fumbling around in the dark, hoping that they get enough momentum that it’s overwhelming and carries them over the line.” A second Labour official said: “I would assume that 95 percent of MPs don’t actually understand how this works, hence there are widespread fantasies about being able to have a coronation.” They added: “I’m reasonably confident that people just won’t get their shit together.” So POLITICO is here to help. We spoke to four Labour officials with knowledge of the process to clarify exactly how a hypothetical challenge would unfold, if it ever happens. All were granted anonymity to discuss internal processes. STEP 1: FIND 80 FRIENDS — IN SECRET It will kick off a mile and a half from Downing Street, in the office of a Labour Party official who is seldom seen in the public eye. Any challenger or their supporters must write to General Secretary Hollie Ridley with the names of 81 MP backers, including the challenger themselves. This can happen either by email or with signatures on paper delivered to the party’s London headquarters. “I assume they would walk in and dump 80 letters on Hollie’s desk,” said one of the four officials noted above. It’s unclear whether challengers should send one message signed by 81 people, or 81 letters (some officials who spoke to POLITICO were unsure; others thought either would be fine). Either way, this means plotters must sign up one fifth of their party to a coup … without their efforts leaking and fizzling out midway through. And backers must be ready to be named publicly hours later. Given the level of gossip among Labour MPs, good luck with that. These are much higher hurdles than in Britain’s Conservative Party, whose MPs can submit no-confidence letters anonymously and don’t need to attach them to a named challenger. Politics will probably overtake the process in the end. The last leadership challenge, against left-winger Jeremy Corbyn in 2016, was plain for all to see before it reached the formal stages — because a wave of ministers resigned and MPs passed a symbolic no-confidence vote in his leadership. STEP 2: A PAUSE — THEN A WHIRLWIND  There will be a short pause while Ridley seeks internal and legal advice before the 81 names are published — and Labour hits a thousand miles per hour. The party will convene a meeting of the 10 officers of Labour’s ruling national executive committee (NEC), which will make recommendations on the timetable and procedure to the wider NEC to wave through. Other MPs will be invited to nominate rival challengers. As the sitting prime minister, Starmer will have a place on the list automatically. But they will have to act fast. During the contest to find Labour’s new deputy leader in the fall, formal MP nominations were only open for three days and the entire contest was over in eight weeks. NEC officers are largely pro-Starmer — they include Starmer himself, though any candidate would be recused from discussions — and were the same people who blocked Greater Manchester Mayor Andy Burnham from attempting to return to parliament in January. They may have an interest in moving quickly, to avoid destabilizing the prime minister on the world stage or allowing a left-wing candidate to gain traction. STEP 3: CHOOSE YOUR FIGHTERS CAREFULLY One piece of advice to warring MPs: Get it right first time. The four officials all said that once MPs pick who to nominate, they are “locked in” and cannot transfer to another candidate unless their pick drops out of the race. The full tally of MP nominations — with names — will be published daily on the Labour Party website, unlike the Tory system which uses a secret ballot. STEP 4: GET YOUR RUBBER CHICKEN OUT Candidates who pass the 81 MP threshold will then go through to a second stage, where they spend weeks touring the country to persuade local parties and unions to back them. They must win the support of 5 percent of Labour’s constituency parties, or at least three of the party’s formal “affiliate” bodies including two trade unions. This is not always a formality, as Emily Thornberry — now chair of the Commons’ foreign affairs committee — discovered when she failed to reach the local party threshold when running against Starmer in 2020. Two of the four officials noted above suggested that Wes Streeting — despite being widely seen as a frontrunner — could struggle during this stage, as many unions and constituency parties regard his politics as not left-wing enough. A third official said this was inaccurate, given there has been an exodus of left-wing members from the party. STEP 5: GO TO THE PARTY Whoever pulls through the initial stages — probably three candidates at the most — will go through to a final vote of Labour’s members. The result is difficult to predict, as many of the most left-wing members who joined under Jeremy Corbyn in the late 2010s have exited the party. In October’s deputy leadership vote, Bridget Phillipson — who was widely painted as being aligned to Starmer — lost by only a small margin. The winner will be Labour leader, and therefore prime minister. If Keir Starmer wins, he will stay in No. 10, secure until the next time a critic is strong enough politically to come for him. If a rival wins, Starmer will visit King Charles III to tender his resignation as PM.

LONDON — Britain has signed a new critical minerals partnership with the Trump administration, as it seeks to diversify supply chains away from China. Foreign Minister Seema Malhotra signed the partnership in Washington with U.S. Under Secretary of State Jacob Helberg on Wednesday night. “As demand for critical minerals around the world continues to rise, this Memorandum of Understanding with the United States underscores our commitment to working as close allies to build resilient, diversified global supply chains,” Malhotra said in a statement. Under the terms of the deal, the two countries have agreed to use economic policy tools and coordinated investment to secure supplies of critical minerals and crack down on subsidized imports that risk undercutting domestic production. They will jointly identify priority projects, mobilize financing for developments, and share intelligence on investments that could threaten domestic capabilities in either country. The partnership signals a tougher stance on market distortion, with both sides pledging to protect their industries from “non-market policies and unfair trade practices” — including by working with allies on a global approach to pricing challenges. The agreement also states both sides will use existing legislative and diplomatic tools to review, deter and potentially block critical minerals and rare earths asset sales on national security grounds. U.S. and U.K. ministers are expected to convene within the next six months to take the partnership forward. The Trump administration, which has announced similar agreements with Mexico, the European Union and Japan, ultimately wants to establish a critical minerals trading bloc, first floated on Wednesday by Vice President JD Vance to 54 countries. Speaking to reporters in London on Thursday, U.K. Trade Secretary Peter Kyle said the trading bloc with Washington “makes perfect sense.” “On critical minerals, the alliances make perfect sense, as long as they take into account the specific peculiarities of domestic markets,” Kyle said.  “In all of the alliances, all of us have different needs, and all of us are producing different minerals, so we have to make sure that it’s completely cooperative, but we should be approaching it with a ‘how do you make it work?’ — rather than how to avoid it,” he added.

BRUSSELS — The European Parliament’s top trade lawmakers failed on Wednesday to reach a common position on the EU-U.S. trade deal, in a move that risks fueling Washington’s impatience against the EU’s slow pace in finally implementing its side of a bargain struck last summer. Negotiations will continue until next week, two people who attended a meeting of the lawmakers told POLITICO. One said that committee vote was penciled in for Feb. 24 and a final plenary vote for March. Both were granted anonymity to discuss the closed-door talks. The meeting failed to clear remaining hurdles regarding the Parliament’s position on the removal of tariffs on U.S. industrial goods and lobsters — a precondition for Washington to reduce its own tariffs on European cars.  Lawmakers from the international trade committee disagreed on the length of a sunset clause which would limit the proposals’ application to 18 to 36 months, as well as whether the EU should withdraw any tariff concessions until a solution is found between Brussels and Washington on the 50 percent tariff the Trump administration has put on steel derivatives. With the EU still processing the shock of Trump’s threats against the territorial sovereignty of Greenland and the Kingdom of Denmark, the liberal Renew group and the Socialists & Democrats are pushing to Trump-proof the deal by inserting suspension clauses into enabling legislation in case the U.S. president turns hostile again.  The center-right European People’s Party has pushed to sign off the deal following calls from EU leaders to unfreeze the implementation of the deal.  Failure to reach an agreement on Wednesday throws into disarray the timeline for parliamentary approval, and further delays the start of negotiations with EU capitals and the European Commission.

Listen on * Spotify * Apple Music * Amazon Music Im März stehen die ersten zwei von insgesamt fünf Landtagswahlen an. Baden-Württemberg und Rheinland-Pfalz sind der Auftakt. In der CDU derweil sind Vorschläge zur Abschaffung der”Lifestyle-Teilzeit” und der Streichung von Kassenleistung für den Zahnarztbesuch derweil Anlass für Unruhe. Die einen äußern sich, die anderen sind verärgert und kassieren die Ideen so schnell ein, wie sie gemacht werden.  Eine Partei sucht öffentlich ihre Linie und das macht die Wahlkämpfer unglücklich. Rasmus Buchsteiner berichtet von der Flatterstimmung und dem Versuch, unter anderem vor und auf dem CDU-Parteitag in Stuttgart den Schaden zu begrenzen. Außerdem bespricht er mit Gordon, wie die ausbleibenden Fortschritte bei den versprochenen Reformen die Situation mit ausgelöst haben. Gleichzeitig geht es für die SPD in den Umfragen bergauf. Zumindest in Mecklenburg-Vorpommern. Dort ist die AfD der Hauptgegner für die amtierende Ministerpräsidentin Manuela Schwesig. Im 200-Sekunden-Interview spricht sie darüber, wie sie den Moment für sich nutzen und für ihre Partei nutzen will. Außerdem: Der Kanzler bricht heute zu seiner ersten offiziellen Reise in die Golfregion auf. Tom Schmidtgen vom Pro-Newsletter ‘Industrie und Handel am Morgen’ über den neuen wichtigen Partner Saudi-Arabien, der sich nicht nur seiner strategisch guten Lage, sondern auch seiner wirtschaftlichen Stärke bewusst ist.  Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. POLITICO Deutschland – ein Angebot der Axel Springer Deutschland GmbH Axel-Springer-Straße 65, 10888 Berlin Tel: +49 (30) 2591 0 information@axelspringer.de Sitz: Amtsgericht Berlin-Charlottenburg, HRB 196159 B USt-IdNr: DE 214 852 390 Geschäftsführer: Carolin Hulshoff Pol, Mathias Sanchez Luna

The Trump administration wants to work with traditional allies to secure new supplies of critical minerals. But months of aggression toward allies, culminating with since-aborted threats to seize Greenland, have left many cool to the overtures. While the State Department has drawn a lengthy list of participating countries for its first Critical Minerals Ministerial scheduled for Wednesday, a number of those attending are hesitant to commit to partnering with the U.S. in creating a supply chain that bypasses China’s current chokehold on those materials, according to five Washington-based diplomats of countries invited to or attending the event. State Department cables obtained by POLITICO also show wariness among some countries about signing onto a framework agreement pledging joint cooperation in sourcing and processing critical minerals. Representatives from more than 50 countries are expected to attend the meeting, according to the State Department — all gathered to discuss the creation of tech supply chains that can rival Beijing’s. But the meeting comes just two weeks since President Donald Trump took to the stage at Davos to call on fellow NATO member Denmark to allow a U.S. takeover of Greenland, and that isn’t sitting well. “We all need access to critical minerals, but the furor over Greenland is going to be the elephant in the room,” said a European diplomat. In the immediate run-up to the event there’s “not a great deal of interest from the European side,” the person added. The individual and others were granted anonymity to discuss sensitive diplomatic relationships. Their concerns underscore how international dismay at the Trump administration’s foreign policy and trade actions may kneecap its other global priorities. The Trump administration had had some success over the past two months rallying countries to support U.S. efforts to create secure supply chains for critical minerals, including a major multilateral agreement called the Pax Silica Declaration. Now those gains could be at risk. Secretary of State Marco Rubio wants foreign countries to partner with the U.S. in creating a supply chain for the 60 minerals (including rare earths) that the U.S. Geological Survey deems “vital to the U.S. economy and national security that face potential risks from disrupted supply chains.” They include antimony, used to produce munitions; samarium, which goes into aircraft engines; and germanium, which is essential to fiber-optics. The administration also launched a $12 billion joint public-private sector “strategic critical minerals stockpile” for U.S. manufacturers, a White House official said Monday. Trump has backed away from his threats of possibly deploying the U.S. military to seize Greenland from Denmark. But at Davos he demanded “immediate negotiations” with Copenhagen to transfer Greenland’s sovereignty to the U.S. That makes some EU officials leery of administration initiatives that require cooperation and trust. “We are all very wary,” said a second European diplomat. Rubio’s critical minerals framework “will not be an easy sell until there is final clarity on Greenland.” Trump compounded the damage to relations with NATO countries on Jan. 22 when he accused member country troops that deployed to support U.S. forces in Afghanistan from 2001 to 2021 of having shirked combat duty. “The White House really messed up with Greenland and Davos,” a third European diplomat said. “They may have underestimated how much that would have an impact.” The Trump administration needs the critical minerals deals to go through. The U.S. has been scrambling to find alternative supply lines for a group of minerals called rare earths since Beijing temporarily cut the U.S. off from its supply last year. China — which has a near-monopoly on rare earths — relented in the trade truce that Trump brokered with China’s leader Xi Jinping in South Korea in October. The administration is betting that foreign government officials that attend Wednesday’s event also want alternative sources to those materials. “The United States and the countries attending recognize that reliable supply chains are indispensable to our mutual economic and national security and that we must work together to address these issues in this vital sector,” the State Department statement said in a statement. The administration has been expressing confidence that it will secure critical minerals partnerships with the countries attending the ministerial, despite their concerns over Trump’s bellicose policy. “There is a commonality here around countering China,” Ruth Perry, the State Department’s acting principal deputy assistant secretary for ocean, fisheries and polar affairs, said at an industry event on offshore critical minerals in Washington last week. “Many of these countries understand the urgency.” Speaking at a White House event Monday, Interior Secretary Doug Burgum indicated that 11 nations would sign on to a critical minerals framework with the United States this week and another 20 are considering doing so. Greenland has rich deposits of rare earths and other minerals. But Denmark isn’t sending any representatives to the ministerial, according to the person familiar with the event’s planning. Trump said last month that a framework agreement he struck with NATO over Greenland’s future included U.S. access to the island’s minerals. Greenland’s harsh climate and lack of infrastructure in its interior makes the extraction of those materials highly challenging. Concern about the longer term economic and geostrategic risks of turning away from Washington in favor of closer ties with Beijing — despite the Trump administration’s unpredictability — may work in Rubio’s favor on Wednesday. “We still want to work on issues where our viewpoints align,” an Asian diplomat said. “Critical minerals, energy and defense are some areas where there is hope for positive movement.” State Department cables obtained by POLITICO show the administration is leaning on ministerial participants to sign on to a nonbinding framework agreement to ensure U.S. access to critical minerals. The framework establishes standards for government and private investment in areas including mining, processing and recycling, along with price guarantees to protect producers from competitors’ unfair trade policies. The basic template of the agreement being shared with other countries mirrors language in frameworks sealed with Australia and Japan and memorandums of understanding inked with Thailand and Malaysia last year. Enthusiasm for the framework varies. The Philippine and Polish governments have both agreed to the framework text, according to cables from Manila on Jan. 22 and Warsaw on Jan. 26. Romania is interested but “proposed edits to the draft MOU framework,” a cable dated Jan. 16 said. As of Jan. 22 India was noncommittal, telling U.S. diplomats that New Delhi “could be interested in exploring a memorandum of understanding in the future.” European Union members Finland and Germany both expressed reluctance to sign on without clarity on how the framework aligns with wider EU trade policies. A cable dated Jan. 15 said Finland “prefers to observe progress in the EU-U.S. discussions before engaging in substantive bilateral critical mineral framework negotiations.” Berlin also has concerns that the initiative may reap “potential retaliation from China,” according to a cable dated Jan. 16. Trump’s threats over the past two weeks to impose 100 percent tariffs on Canada for cutting a trade deal with China and 25 percent tariffs on South Korea for allegedly slow-walking legislative approval of its U.S. trade agreement are also denting enthusiasm for the U.S. critical minerals initiative. Those levies “have introduced some uncertainty, which naturally leads countries to proceed pragmatically and keep their options open,” a second Asian diplomat said. There are also doubts whether Trump will give the initiative the long-term backing it will require for success. “There’s a sense that this could end up being a TACO too,” a Latin American diplomat said, using shorthand for Trump’s tendency to make big threats or announcements that ultimately fizzle. Analysts, too, argue it’s unlikely the administration will be able to secure any deals amid the fallout from Davos and Trump’s tariff barrages. “We’re very skeptical on the interest and aptitude and trust in trade counterparties right now,” said John Miller, an energy analyst at TD Cowen who tracks critical minerals. “A lot of trading partners are very much in a wait-and-see perspective at this point saying, ‘Where’s Trump really going to go with this?’” And more unpredictability or hostility by the Trump administration toward longtime allies could push them to pursue critical mineral sourcing arrangements that exclude Washington. “The alternative is that these other countries will go the Mark Carney route of the middle powers, cooperating among themselves quietly, not necessarily going out there and saying, ‘Hey, we’re cutting out the U.S.,’ but that these things just start to crop up,” said Jonathan Czin, a former China analyst at the CIA now at the Brookings Institution. “Which will make it more challenging and allow Beijing to play divide and conquer over the long term.” Felicia Schwartz contributed to this report.

BRUSSELS — European Commission President Ursula von der Leyen is planning to travel to Australia this month to clinch a security and trade deal, according to a person familiar with the talks. Her trip will follow a meeting next week between European Trade Commissioner Maroš Šefčovič and his Australian counterpart Don Farrell in Brussels, a second person said. Both people were granted anonymity because the schedules are still tentative. The EU and Canberra are moving to revive trade negotiations that collapsed at the end of 2023 amid disagreements over quotas of beef and lamb. The quotas are still being negotiated between Canberra and Brussels, the first person familiar with the talks said. Von der Leyen will take the 20-hour-plus flight to Australia directly after she attends the Munich Security Conference, which takes place in the German city on Feb. 13-15, according to Australian digital newspaper The Nightly, which broke the news of the Commission chief’s four-day trip. EU countries last December allowed the Commission to negotiate a defense deal with Australia. Sealing such a deal would come on the heels of security and defense partnerships signed with the U.K., Canada and most recently India. An agreement with Australia would represent a win for the EU, as it would open access to the country’s vast reserves of strategic minerals. Australia is the world’s largest producer of lithium and also holds the world’s second-largest copper reserves. Coming after the EU’s fraught Mercosur deal with South American countries — criticized by farmers, France and skeptical lawmakers — the pact with Canberra is expected to also trigger pushback due to its significant agricultural component.

BERLIN — Friedrich Merz embarks on his first trip to the Persian Gulf region as chancellor on Wednesday in search of new energy and business deals he sees as critical to reducing Germany’s dependence on the U.S. and China. The three-day trip with stops in Saudi Arabia, Qatar and the United Arab Emirates illustrates Merz’s approach to what he calls a dangerous new epoch of “great power politics” — one in which the U.S. under President Donald Trump is no longer a reliable partner. European countries must urgently embrace their own brand of hard power by forging new global trade alliances, including in the Middle East, or risk becoming subject to the coercion of greater powers, Merz argues. Accompanying Merz on the trip is a delegation of business executives looking to cut new deals on everything from energy to defense. But one of the chancellor’s immediate goals is to reduce his country’s growing dependence on U.S. liquefied natural gas, or LNG, which has replaced much of the Russian gas that formerly flowed to Germany through the Nord Stream pipelines. Increasingly, German leaders across the political spectrum believe they’ve replaced their country’s unhealthy dependence on Russian energy with an increasingly precarious dependence on the U.S. Early this week, Merz’s economy minister, Katherina Reiche, traveled to Saudi Arabia ahead of the chancellor to sign a memorandum to deepen the energy ties between both countries, including a planned hydrogen energy deal. “When partnerships that we have relied on for decades start to become a little fragile, we have to look for new partners,” Reiche said in Riyadh. ‘EXCESSIVE DEPENDENCE’ Last year, 96 percent of German LNG imports came from the U.S, according to the federal government. While that amount makes up only about one-tenth of the country’s total natural gas imports, the U.S. share is set to rise sharply over the next years, in part because the EU agreed to purchase $750 billion worth of energy from the U.S. by the end of 2028 as part of its trade agreement with the Trump administration. The EU broadly is even more dependent on U.S. LNG, which accounted for more than a quarter of the bloc’s natural gas imports in 2025. This share is expected to rise to 40 percent by 2030. German politicians across the political spectrum are increasingly pushing for Merz’s government to find new alternatives. “After Russia’s war of aggression, we have learned the hard way that excessive dependence on individual countries can have serious consequences for our country,” said Sebastian Roloff, a lawmaker focusing on energy for the center-left Social Democrats, who rule in a coalition with Merz’s conservatives. Roloff said Trump’s recent threat to take over Greenland and the new U.S. national security strategy underscored the need to “avoid creating excessive dependence again” and diversify sources of energy supply. The Trump administration’s national security strategy vows to use “American dominance” in oil, gas, coal and nuclear energy to “project power” globally, raising fears in Europe that the U.S. will use energy exports to gain leverage over the EU. Last year, 96 percent of German LNG imports came from the U.S, according to the federal government. | Pool photo by Lars-Josef Klemmer/EPA That’s why Merz and his delegation are also seeking closer ties to Qatar, one of the world’s largest producers and exporters of natural gas as well as the United Arab Emirates, another major LNG producer. Last week, the EU’s energy chief, Dan Jørgensen, said the bloc would step up efforts to to reduce it’s dependence on U.S. LNG., including by dealing more with Qatar. One EU diplomat criticised Merz for seeking such cooperation on a national level. Germany is going “all in on gas power, of course, but I can’t see why Merz would be running errands on the EU’s behalf,” said the diplomat, speaking on condition of anonymity. ‘AUTHORITARIAN STRONGMEN’ Merz will also be looking to attract more foreign investment and deepen trade ties with the Gulf states as part of a wider strategy of forging news alliances with “middle powers” globally and reduce dependence on U.S. and Chinese markets. The EU initiated trade talks with the United Arab Emirates last spring. Gulf states like Saudi Arabia also have their own concerns about dependencies on the U.S., particularly in the area of arms purchases. Germany’s growing defense industry is increasingly seen as promising partner, particularly following Berlin’s loosening of arms export restrictions. “For our partners in the region, cooperation in the defense industry will certainly also be an important topic,” a senior government official with knowledge of the trip said.  But critics point out that leaders of autocracies criticized for human rights abuses don’t make for viable partners on energy, trade and defense. Last week, the EU’s energy chief, Dan Jørgensen, said the bloc would step up efforts to to reduce it’s dependence on U.S. LNG., including by dealing more with Qatar. | Jose Sena Goulao/EPA “It’s not an ideal solution,” said Loyle Campbell, an expert on climate and energy policy for the German Council on Foreign Relations. “Rather than having high dependence on American LNG, you’d go shake hands with semi-dictators or authoritarian strongmen to try and reduce your risk to the bigger elephant in the room.” Merz, however, may not see a moral contradiction. Europe can’t maintain its strength and values in the new era of great powers, he argues, without a heavy dollop of Realpolitik. “We will only be able to implement our ideas in the world, at least in part, if we ourselves learn to speak the language of power politics,” Merz recently said. Ben Munster contributed to this report.