May to Ask Leaders for Tough Action on Russia: EU Summit Update

It’s a big day in Brussels with lots on the table for European Union leaders gathered for a two-day summit. Has the 28-nation bloc succeeded in getting exemptions from the U.S. on planned tariffs? Looks like it.

Will Theresa May make a compelling enough case that Russia carried out a chemical attack on British soil and that she needs more than just words of support from them? There is also the Facebook Inc. scandal over data privacy inviting regulatory scrutiny. With all this, Brexit has been a bit pushed aside.

Theresa May in Brussels, March 22.
Photographer: Dario Pignatelli/Bloomberg

Leaders will be at various political meetings before arriving at the Justus Lipsius building for talks expected to drag into the small hours. We are following developments as they unfold. Time stamps are Brussels time.

Merkel and Macron Weigh in on Trade

The leaders of the two biggest euro economies arrived and addressed the pending trade tariff decisions. The verdict is expect at 10 p.m. Brussels time.

France’s Emmanuel Macron said the “EU spoke with one voice, united. My wish is that we can continue to preserve international trade rules, which are good.” Germany’s Angela Merkel also echoed those sentiments and spoke of the bloc acting in unison.

Russians on Offensive, Say May Can’t Be Trusted (2:09 p.m.)

In London, Russian Ambassador Alexander Yakovenko told reporters “we cannot take British words for granted.” He cited conflicts in Iraq and Yugoslavia as further examples of Britain “taking international law for granted.”

In Brussels, Greek Prime Minister Alexis Tsipras arrived moments before May. After tweeting earlier that he had congratulated Vladimir Putin on his re-election, Tsipras was non-committal about where he stood on the poisoning incident: “we need to investigate Salisbury event with great responsibility.”

May reiterated that she would be talking to her counterparts about Russia’s “pattern of aggression” in the region, not just the isolated attack earlier this month.

Lithuanian President Dalia Grybauskaite signaled that the EU is going to weigh its options. Asked by a reporter about the possibility the bloc will agree to booting out Russian officials from their own countries, Grybauskaite said “all of us, we are considering.”

Meanwhile, Turkey Is About to Get Told Off (1:43 p.m.)

In a move that could anger Ankara days before a planned summit meant to mend bilateral relations, EU will “strongly condemns Turkey’s continued illegal actions in the Eastern Mediterranean and the Aegean Sea and underlines its full solidarity with Cyprus and Greece.”

Bloomberg obtained the draft of a planned statement that does bode well for EU-Turkey relations that have been touch-and-go for the past year. To be sure the bloc has been keen to to ensure that Ankara continues to uphold an agreement to prevent an influx of Mideast refugees.

Trade Commissioner won’t say exemption in bag (1:30 p.m.)

Bloomberg caught up with European Trade Commissioner Cecilia Malmstrom and asked her about our scoop. Is the EU exempt from Trump’s tariffs?

This was her answer: “We hope so but we don’t know, it’s the decision of President Trump but we hope that we will be excluded.”

Czechs Wavering Between Support and Caution (12:43 p.m.)

Czech Prime Minister Andrej Babis was asked if he was sure the Russians were 100 percent involved. And here is how he responded: “Is there any evidence of this? I don’t know, of course we trust our allies.”

He went on to say: “If U.K. is sure then I am sure also. We will discuss it. This attack is a big problem but we hope that U.K. is really convinced that this is the case that Russia is behind it.”

Another Nation Strikes Cautious Note on Russia (12:22 p.m.)

On Russia, it’s clear May has her work cut out for her. Lots of solidarity that is falling short of commitments to action. Luxembourg Prime Minister Xavier Bettel had this to say: “I want to listen, don’t ask me to say if there is evidence or not.”

On Facebook, Bettel pointed out “we don’t have regulation on data protection.” In fact, that is not strictly true. From May 25, powerful regulation will come into effect that could address some of these concerns.

Read about how the long arm of Europe’s Data Law is about to get even longer

Finns Need More Information from May on Russia (12:13 p.m.)

May needs to convince a few countries tonight about just how damning the evidence is against Russia and its alleged use of a nerve agent to poison a former spy outside London. Greece and Hungary are still skeptical, and it seems so is Finland.

Juha Sipila
Photographer: Roni Rekomaa/Bloomberg

Speaking exclusively to Raine Tiessalo, Prime Minister Juha Sipila said that the “information we’ve got so far is not enough to make decisions, this kind of decisions need to be assessed through careful processes.”

Question: Have you received any formal request to expel Russian diplomats?
Answer: “If she has this kind of thoughts she will probably present them when we’ ll meet today.”

In fact, British officials say May will make a strong case after dinner.

Banks Want EU to Know About Financial Stakes (11:46 a.m.)

A lot of people are competing for the attention of European leaders. Among them, the City of London, John Glover and Alexander Weber write.

Britain’s banks and regulators have raised the alarm about 26 trillion pounds ($37 trillion) of derivative contracts and 36 million insurance policy holders that could be affected when the U.K. drops out of the single market. The problem is that firms could lose the authorizations they need to service these contracts in a hard Brexit with no trade deal, leaving their clients in the lurch. This is something the EU needs to factor in, they argue.

EU to Trump: Don’t Pick a Trade War with Us (11:24 a.m.)

In an interview with Bloomberg Television, European Commission Vice President Jyrki Katainen warned of the risk of a “retaliation spiral” if the EU doesn’t get an exemption.

Here’s more exclusive soundbites:

“We cannot accept that some countries or some companies in some countries are treated better than the others, because it would destroy our internal market”
“That’s why the EU must be treated as a trading bloc”
“In trade wars there are not winners, only losers”

The Lobbying Paid Off, EU Clinches Exemption? (10:27 a.m.)

After two days of talks in Washington, European Trade Commissioner Cecilia Malmstrom returns with a potential win for the EU: exemption from import duties of 25 percent on steel and 10 percent on aluminum, three EU officials said Thursday on the condition of anonymity.

To be sure, nothing is certain. U.S. President Donald Trump could shoot the whole thing down with a late-night tweet. Read more here about how the EU believes it’s dodged a trade bullet.

Earlier:
May Is Said to Tell Allies to Beware Russia, Expel Putin’s Spies
Facebook May Dodge EU Bullet as New Data Rules Come Too Late
Brexit Bulletin: Already Looking to June

Coming Up:
12 p.m. European political party groups meet before summit
2 p.m. French President Emmanuel Macron speaks at sustainable finance conference
2 p.m. Leaders start arriving, brief reporters on way in
3:30 p.m. Summit begins
7 p.m. EU Council President Donald Tusk, Commission President Jean-Claude Juncker give news conference; leaders then give briefings

— With assistance by Stephanie Bodoni, Ewa Krukowska, Francine Lacqua, John Glover, Alexander Weber, Viktoria Dendrinou, Nikos Chrysoloras, Marine Strauss, and Raine Tiessalo

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