Denmark is ‘sure’ EU will negotiate a ‘good’ US trade deal as deadline nears

Good morning from Aarhus, where European Commission president Ursula von der Leyen and her college of commissioners are in town to kick off Denmark’s six-month EU presidency.

Here’s a scoop to start: Large European companies including Airbus and BNP Paribas have urged Brussels to halt its landmark AI rules, as the EU considers watering down key elements amid pressure from the US.

Today, I explain Denmark’s stance on trade talks with the US, as pressure mounts to clinch a deal within a week. And our parliament correspondent hears from the man who triggered a no-confidence vote in von der Leyen.

Doing their best

Denmark has praised the European Commission’s strategy for negotiating a tariff deal with US President Donald Trump as the deadline to stave off a full blown trade war draws closer.

Context: Trump has threatened to impose 50 per cent tariffs on goods from the EU, unless both sides can clinch a deal by July 9. While the commission is leading talks for the EU, member states have struggled to display a united front as their economic interests diverge.

Germany has criticised Brussels’ approach as too “complicated” and called for a quick deal that would help its industry, while France has asked for an extension to continue haggling and get a better agreement.

“We should . . . make sure that we actually find good solutions, even though they also take longer to find,” Danish economy minister Stephanie Lose told journalists in Copenhagen yesterday, seemingly joining the French rather than the German camp.

EU trade commissioner Maroš Šefčovič is in Washington today for another round of talks with his US counterparts, after almost three months of negotiations.

“The commission has negotiated and behaved in a very clever way,” Lose said. “I’m very sure that they will also do their very best to find solutions that are in all of the European continent’s interests.”

Denmark has just taken over the EU’s rotating six-month presidency, and will be responsible for navigating any fallout from the discussions.

“I definitely don’t think that Europe should be escalating. We should try to find solutions,” Lose said. “Of course, if there are no solutions in sight, we shouldn’t just accept anything.”

An EU official yesterday said that there would likely only be an agreement in principle on lower tariffs, while negotiations continued past July 9. But even that was not guaranteed, and the EU remained ready to retaliate with tariffs of its own, they added.

EU ambassadors will meet tomorrow in case there is a deal to endorse.

Chart du jour: Uneasy

Just weeks after European Central Bank chief Christine Lagarde hailed a “global euro” moment, some inside the bank are wondering if the euro’s strength could become too much of a good thing.

Not very confident

The man behind an attempt to topple the European Commission said he expects it to fail, but promises that commission president Ursula von der Leyen will get a tough grilling from European parliamentarians, writes Andy Bounds.

Context: Romanian nationalist Gheorghe Piperea last week tabled a motion of no-confidence, which was accepted by party leaders yesterday after confirming he had reached the minimum of 72 signatures supporting the move, or 10 per cent of MEPs.

A parliamentary debate on the motion will take place on Monday, with the vote scheduled for Thursday, according to officials.

While von der Leyen is likely to survive the vote, Piperea said his main aim was not to bring down the commission — which last happened in 1999 — but to hold von der Leyen accountable over the so-called Pfizergate affair.

The EU’s general court in May ruled against the commission over its refusal to share private text messages between von der Leyen and Pfizer’s chief executive Albert Bourla during negotiations to supply Covid-19 vaccines.

The New York Times had sued the commission over its refusal to reveal the messages exchanged in 2021. The court rejected the commission’s argument that it could not find the texts, forcing it to search again or provide a better explanation for why they cannot be made public.

“The commission has not yet complied with the court. This is about accountability of government,” said Piperea, of the right-wing nationalist AUR party. “I cannot accept impunity. The president will have to come and answer questions from MEPs.”

Piperea said three people had removed their names from the motion under political pressure, as the 27-member commission has representatives from five different parties. He declined to publish the remaining names.

“This pressure is a scandal. This is democracy in action,” Piperea said.

What to watch today

Danish Prime Minister Mette Frederiksen and European Commission president Ursula von der Leyen hold a press conference in Aarhus.

German foreign minister Johann Wadephul hosts Chinese counterpart Wang Yi in Berlin.

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