Airlines in Europe are bracing for fuel supply shocks caused by the war in the Middle East. The severity of the impacts on passengers will be determined in the coming days and weeks depending on whether a recently announced ceasefire between the United States and Iran holds.
We want to achieve stability and predictability in trade relations. A united stance within the European Union is important in this regard. Businesses need planning security, and that applies on both sides of the Atlantic. We therefore expect clarity from the US government on the next steps.
She had intended to speak about the flashpoints in international politics, Greenland and Ukraine, and US President Donald Trump, but the journalists present kept returning to the issue of the Mercosur agreement and how her party scuppered its ratification. Mercosur, the EU's major trade deal with the four South American countries of Argentina, Brazil, Paraguay, and Uruguay, was meant to be a sign of hope in a world of increasing nationalism a boost to trade based on rules, not punitive tariffs.
Germany and Italy are deepening defense and economic cooperation with the leaders of the two countries signing an agreement in Rome. German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni agreed on closer cooperation in the production of drones, naval vessels, underwater systems and air and missile defense systems. The leaders are also looking to collaborate in the development of electronic warfare and aerial combat defense systems.
