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The European Union and Germany are making an urgent push to persuade Italy to support a long-delayed free trade agreement with South America’s Mercosur bloc, warning the deal could collapse if it is not signed soon. The pact, negotiated over 25 years, would be the EU’s largest trade agreement in terms of tariff reductions, but faces resistance from several member states, according to a senior EU lawmaker.

While Germany, Spain and Nordic countries back the agreement, arguing it would boost exports hit by U.S. tariffs and reduce reliance on China for key raw materials, opposition is mounting elsewhere. France and Poland have raised strong objections, citing concerns that cheap agricultural imports—particularly beef—could harm European farmers. With Poland firmly opposed and France seeking delays, attention has shifted to Italy as the decisive swing vote.

European Parliament trade committee chair Bernd Lange said the deal would fail without Italy’s backing, noting high-level talks involving Italy’s prime minister, Germany’s chancellor and the European Commission president. Although Commission President Ursula von der Leyen hopes to sign the deal in Brazil this weekend, approval from EU governments is still required. Lawmakers warn that if the agreement is not finalised this year, Mercosur countries may abandon negotiations and seek partnerships elsewhere.

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France is urging the European Union to delay a vote on ratifying the EU–Mercosur free trade agreement, citing strong opposition from farmers and recent protests across the country. The deal with Argentina, Brazil, Paraguay and Uruguay, signed a year ago but not yet ratified, aims to open new markets for European exporters facing pressure from U.S. tariffs and Chinese competition. However, French farmers fear an influx of cheaper agricultural imports produced under less stringent environmental standards.

As Europe’s largest agricultural producer, France is trying to build a blocking minority of EU member states to halt or postpone the vote in Brussels. While the European Commission has proposed safeguard measures for farmers, Paris has dismissed them as insufficient. Prime Minister Sebastien Lecornu has called for delaying the vote until after Commission President Ursula von der Leyen’s planned visit to Brazil later this month, arguing that farmers’ concerns have not been adequately addressed.

The debate has exposed divisions within the EU, with countries such as Poland, Hungary, Austria and Ireland expressing sympathy for France’s stance, while Germany and business groups warn against missing a strategic trade opportunity. Italy’s position could prove decisive, as its industrial sector supports the deal but its farming community opposes it. At home, resistance in France is being fuelled by political pressure, livestock disease outbreaks and broader discontent in rural areas, making the Mercosur agreement a highly sensitive issue.

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The European Union is preparing to approve a package of retaliatory tariffs on up to $28 billion worth of U.S. imports in response to President Donald Trump’s sweeping trade duties, including 25% tariffs on steel, aluminium, and automobiles. The proposed EU counter-tariffs target a wide range of U.S. goods—from chewing gum and dental floss to meat, wine, and clothing—and will likely be implemented in two phases starting April 15. This marks a significant escalation in global trade tensions, with the EU joining China and Canada in pushing back against Washington’s protectionist measures.

EU leaders will meet in Luxembourg this week to finalize a united response, aiming to send a strong message to Washington while still leaving room for negotiation. The bloc is particularly concerned about the economic fallout of a potential trade war, with President Trump’s tariffs affecting around 70% of the EU’s annual exports to the U.S., valued at €532 billion. Notably, the proposed 50% tariff on bourbon has stirred intra-EU tensions, with countries like France and Italy wary of U.S. retaliation against European wines and other key exports.

While some EU nations, like France, advocate for a broader economic strategy—including halting investments in the U.S.—others, like Ireland and Italy, urge a more measured approach. The European Commission is working to ensure broad support across the 27-member bloc to maintain unity and pressure the U.S. into talks. Final approval of the initial counter-tariffs is expected on Wednesday unless a qualified majority votes against it, which remains unlikely.

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Italy, the European Union’s top destination for migrants, is beginning a new chapter in its migration policy by opening its first camp in Albania, part of a plan to “offshore” the migrant challenge. This initiative allows Italy to house up to 3,000 migrants per month who are rescued while attempting to reach its shores. The Shengjin camp, now operational, is set to manage migrants picked up in international waters, though it excludes women, children, and vulnerable individuals.

The Italian government has fully funded the construction of these facilities, which will operate under Italian and European legislation, according to Fabrizio Bucci, Italy’s ambassador in Albania. Once in the camp, migrants can apply for asylum in Italy; those whose requests are denied will be sent back to countries considered safe.

The agreement between the Italian and Albanian governments is set for five years, with the possibility of extension if successful in alleviating Italy’s migration burden. This year, Italy has seen about 31,000 sea arrivals, down over 50% from 2023, signaling a shift in migration trends. Prime Minister Giorgia Meloni, who campaigned on strict migration policies, has made the Albania initiative a cornerstone of her administration.

However, the plan has faced scrutiny over its estimated cost of over €650 million (£547), with critics like MP Riccardo Magi calling it excessive for detaining a limited number of migrants. Concerns have also been raised about the ability to adequately screen rescued individuals for vulnerabilities.

Despite criticism, the initiative has garnered support from 15 EU member states, who see it as a potential model for addressing migration. As Albania seeks EU membership, the agreement could bolster its international standing, though some remain skeptical about the motivations behind it. If successful, this model may pave the way for similar arrangements with other countries in the future.

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Viktor Orban arrived in Ukraine on Tuesday for an unannounced visit shortly after assuming the role of rotating president of the European Union. While in Kyiv, the Hungarian prime minister suggested that a ceasefire between Russia and Ukraine could expedite negotiations to end the ongoing conflict, which began with Russia’s full-scale invasion in 2022.

Orban, known for his critical stance on Western support for Ukraine and close ties with Russian President Vladimir Putin, has not visited Ukraine in 12 years but has met with Putin several times. During his joint appearance with Ukrainian President Volodymyr Zelensky, their body language was notably reserved, and neither took questions from the media.

Orban previously delayed the agreement on a €50 billion EU aid package meant to support Ukraine against Russia. However, his new role as head of the European Council for the next six months grants him significant influence as a European figurehead. He emphasized the need to resolve past disagreements and focus on future cooperation during his discussions in Ukraine.

Zelensky stressed the importance of maintaining Europe’s support for Ukraine and fostering meaningful, mutually beneficial cooperation among European neighbors. Orban highlighted the necessity of collaboration and proposed a ceasefire to hasten peace negotiations with Russia, expressing gratitude for Zelensky’s candid responses.

Orban stated that his visit underscored the importance of peace not just for Ukraine but for all of Europe, acknowledging the war’s profound impact on European security. Zelensky did not publicly respond to Orban’s ceasefire comments but later posted on X, emphasizing the significance of European unity and collective action. He described their discussion as focused on achieving a just, lasting, and fair peace.

Many Ukrainians view a ceasefire as potentially solidifying Russia’s control over seized territories and prefer negotiations from a position of strength. Ukrainian Foreign Minister Dmytro Kuleba expressed openness to working with all parties to solve problems, acknowledging the challenges but emphasizing the potential for tangible results.

During Orban’s visit, he and Zelensky also addressed bilateral issues, including the status of the 100,000 ethnic Hungarians living in Ukraine. Orban expressed optimism about progress on the rights of ethnic Hungarians and wished Ukraine success. The EU had initiated membership talks for Ukraine just before Hungary assumed the EU Council Presidency.

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Volkswagen (VW), the German automotive giant, has announced an investment of up to $5 billion (£3.94 billion) in Rivian, a competitor to Tesla. This partnership forms a joint venture allowing both VW and the US-based electric vehicle (EV) manufacturer to share technology. Following the announcement, Rivian’s stock surged nearly 50%.

The collaboration comes amid increasing competition among EV manufacturers and the imposition of tariffs on Chinese imports by Western nations. VW will start with an initial $1 billion investment in Rivian, with an additional $4 billion planned by 2026.

Founded in 2009, Rivian has yet to achieve a quarterly profit, reporting a net loss of over $1.4 billion in the first quarter of 2024. VW, facing pressure from competitors like Tesla and China’s BYD, is working to transition from fossil fuel-powered vehicles to EVs.

The partnership provides VW with immediate access to Rivian’s software, which it can integrate into its vehicles. The deal also comes as Chinese EV manufacturers expand globally, increasing competition. The European Union (EU) recently announced plans to raise tariffs on Chinese EV imports by up to 38%, following an investigation that found Chinese EV companies had been unfairly subsidized. China criticized these tariffs as violating international trade rules and labeled the investigation as protectionist.

The tariff increase by the EU follows the United States’ decision to raise import duties on Chinese EVs from 25% to 100%. Canada is also considering similar measures to align with its allies.

Separately, Tesla announced a recall of over 11,000 Cybertrucks sold in the US due to issues with windscreen wipers and exterior trim. The Cybertrucks were first released at the end of November last year.

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Georgia’s parliament is on the verge of passing a highly controversial “foreign agent” law, despite facing significant opposition from both within and outside the ruling Georgian Dream party. Critics of the proposed legislation, often referred to as the “Russia law,” argue that it poses a severe threat to civil liberties within the country.

The bill has sparked weeks of mass protests, with thousands of people gathering near the parliament building to voice their opposition. Protesters fear that if the law is enacted, it could be exploited by the government to suppress dissenting voices and undermine Georgia’s aspirations to join the European Union.

Prime Minister Irakli Kobakhidze has remained steadfast in his support for the bill, vowing that it will pass despite the ongoing protests. He has issued warnings about the consequences of not implementing the law, drawing parallels to the situation in Ukraine without providing specific details.

President Salome Zurabishvili, although an opponent of Kobakhidze, has expressed her intention to veto the law. However, Georgian Dream holds sufficient parliamentary support to override her veto, indicating that the bill is likely to be approved.

The proposed legislation would require NGOs and independent media outlets that receive more than 20% of their funding from foreign sources to register as organizations with foreign interests. They would be subject to government monitoring and could face significant fines if they fail to comply with the regulations outlined in the law. Critics argue that this would create a chilling effect on freedom of expression and civil society in Georgia.

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EU member states’ ambassadors have tentatively agreed to redirect windfall profits from frozen Russian assets towards financing arms supplies for Ukraine, pending approval by EU finance ministers next week. This decision follows the freezing of hundreds of billions of euros in Russian assets after the 2022 invasion of Ukraine. If approved, the accrued interest, estimated at up to €3 billion per year, will be allocated for purchasing weapons for Ukraine.

European Commission President Ursula von der Leyen emphasized the significance of this action, stating it would contribute to enhancing the safety of Ukraine and Europe. Valdis Dombrovskis, European Trade Commissioner, echoed this sentiment, urging swift delivery of the funds to Ukraine, with an initial tranche of €1 billion intended for military support ideally reaching the country by summer.

German Chancellor Olaf Scholz advocated that approximately 90% of the revenues from frozen Russian assets be allocated to arms purchases for Ukraine. The value of these assets in the EU stands at nearly €211 billion, with the majority of profits held by Euroclear, a Belgium-based clearing house.

The decision to utilize these funds had been delayed due to objections from EU members regarding a 25% tax imposed under Belgian law, which has since been waived. Despite concerns raised by Europe’s central bankers about potential legal ramifications and impacts on global financial stability, the decision reflects a determination to hold Russia accountable for its actions. The Kremlin has criticized this move as undermining European and international legal frameworks.

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In a significant speech at Sorbonne University, French President Emmanuel Macron issued a stark warning to Europe, stating that the continent must shed its self-imposed naivety or risk its demise. Macron emphasized the urgent need for Europe to adapt to a rapidly changing global landscape, highlighting challenges such as Russian hostility, diminishing US interest, and Chinese competition that could marginalize the EU.

Macron urged European leaders to make decisive moves toward bolstering defense and the economy, advocating for increased protectionism and the development of an independent defense capability. He stressed the importance of Europe asserting itself in international trade, particularly as major players like China and the US disregard established norms.

Addressing concerns over Russia’s actions, Macron defended his stance of strategic ambiguity regarding potential military involvement in Ukraine, emphasizing the need for Europe to assert its independence from the US and reject a bipolar world order.

Macron also warned against Europe’s internal demoralization, urging a reconnection with the values that distinguish the continent. He highlighted the dangers of online disinformation and advocated for stricter regulations, including imposing a minimum age for social media access.

While Macron’s speech aimed to position France at the forefront of European leadership and boost his party’s electoral prospects, it also underscored concerns about the party’s dependence on Macron’s leadership.

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Slovakia’s government, led by Robert Fico’s populist-nationalist coalition, has approved a plan to abolish the current public broadcaster, Radio and Television of Slovakia (RTVS), and replace it with a new entity called Slovak Television and Radio (STVR). The move has raised concerns about media independence.

The decision, backed by the cabinet and proposed by the culture ministry, involves replacing the current director general and appointing a new one through a council influenced by government appointments. Culture Minister Martina Simkovicova, associated with the ultra-nationalist Slovak National Party, claims the changes aim to address perceived bias in RTVS’s news coverage.

Critics question Simkovicova’s suitability for making such decisions, citing her past involvement with an online TV channel known for promoting pro-Russian narratives and COVID-19 misinformation.

The government’s proposal has sparked protests in Bratislava and garnered criticism from journalists, opposition parties, and the European Union. However, Simkovicova argues that the draft law aligns with the European Act on Freedom of the Media, despite concerns about potential state control over the broadcaster.

While the government has scaled back some of the more contentious proposals, such as granting the board of governors the power to dismiss the director general without cause, concerns remain about political interference. Instead, the new director general will be chosen by a council with members appointed by government officials and parliament.

RTVS staff have voiced opposition to the changes, highlighting the importance of independent public media and expressing concern about political influence. They plan to protest by wearing black attire and displaying ribbons representing RTVS’s colors.

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