Good morning. Nato leaders weathered the Trump storm yesterday, with the US president departing The Hague after what he known as a “super” summit that noticed allies pledge to jack up defence spending to five per cent of GDP. Now comes the laborious a part of really paying up.
Right now, a lot of those self same leaders will reassemble in Brussels for an EU summit that my colleagues clarify will flip to the opposite thorny Trump subject: commerce. And our tech correspondent hears a plea for the EU to carry agency on its AI guidelines.
On to the following
Having survived Donald Trump’s assault on Nato in The Hague, EU leaders are shifting on to the following transatlantic rift as they meet in Brussels to debate commerce, write Andy Bounds, Alice Hancock and Barbara Moens.
Context: The summit features a dinner debate on “geoeconomics” that may focus on boosting EU competitiveness and independence, with the principle course a possible deal to cut back US tariffs earlier than a July 9 deadline.
In the course of the assembly, European Fee president Ursula von der Leyen desires to get a steer from EU leaders on how a lot leeway she has to appease Trump.
One senior EU diplomat described it as a “postmortem” of the Nato summit. “I believe we must always all see them as a bundle, you understand, transatlantic relations and safety,” mentioned a second.
Because the deadline looms, stress is rising to seal a take care of Washington to keep away from “reciprocal tariffs” of fifty per cent.
Von der Leyen hopes to get steerage from EU leaders on whether or not she ought to intention for a fast take care of Trump, which may depart some tariffs in place as additional negotiations proceed, or whether or not the bloc ought to take a extra confrontational strategy to construct leverage, officers say.
However whereas the fee desires to place a “credible threat” on the desk, some member states are cautious of the consequences on their economies, seeking to exempt objects reminiscent of Boeing planes or alcoholic drinks from the proposed €95bn retaliation listing. Others are involved to rock the boat an excessive amount of given the continued dependency on the US for safety.
“We’ve got a giant stick,” mentioned one EU diplomat, but when “member states nibble an excessive amount of away from it for their very own authentic defensive curiosity, then the rebalancing measure weakens.”
Trump mentioned yesterday Spain ought to endure commerce punishment for refusing to sign up to Nato’s new 5 per cent defence spending goal.
However commerce received’t be the one potential bust-up tomorrow. In a shock transfer, France and different international locations mentioned they wish to increase the bloc’s upcoming 2040 climate target, which is already being contested though the fee received’t desk that laws till subsequent week.
Some international locations concern the goal will hurt the bloc’s economic system and trade, diplomats mentioned. One steered that the talk on the summit could be second to gauge assist for having the goal in any respect.
Chart du jour: Steeled
Excessive power prices are among the many myriad challenges faced by European steel producers, alongside little demand for costlier inexperienced merchandise.
Maintain the road
The European Fee should not water down upcoming guidelines on AI, a bunch of distinguished AI researchers, civil society leaders and trade figures instructed Barbara Moens.
Context: The EU is struggling to agree on the precise timeline and circumstances to implement its landmark synthetic intelligence act, amid warnings from tech firms that the regulation may hinder innovation.
The fee is dragging its ft on publishing its so-called code of observe which is ready to supply steerage to AI firms on the best way to implement the act, which from August will apply to highly effective AI fashions reminiscent of Google’s Gemini, Meta’s Llama and OpenAI’s GPT-4.
In a joint letter seen by the FT, greater than 40 signatories — together with Nobel laureates Daron Acemoglu and Geoffrey Hinton — urge the fee “to withstand pressures that may compromise this regulatory framework”.
Pushing again in opposition to pressure from massive tech firms warning that strict guidelines may stop much-needed investments, the signatories argue that authorized certainty on the rule e-book is vital, and that the principle impediment isn’t regulation however inadequate adoption of AI within the bloc.
Sturdy guidelines will assist promote “the uptake of human-centric and reliable AI, whereas mitigating systemic dangers,” they argue.
To make sure that, the signatories name for third-party testing of high-risk AI fashions and organising an AI workplace inside the fee.
In the meantime, the Laptop & Communications Business Affiliation, which incorporates various massive tech firms, urged the fee to pause implementation of the AI Act, as trade wants extra time to undertake the steerage when it comes.
A European Fee spokesperson mentioned that the fee “isn’t watering down the AI Act; we’re absolutely dedicated to the targets”.
What to observe immediately
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EU leaders meet for a summit in Brussels.
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German international minister Johann Wadephul hosts his Canadian counterpart Anita Anand in Berlin.
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