Tag Archives: European Union

EU tries to contain East-West schism as Brexit bites

European and national flags fly outside the European Parliament while European Commission President Jean-Claude Juncker presents a white paper on options for shoring up unity once Britain launches its withdrawal process, in Brussels, Belgium, March 1, 2017. REUTERS/Yves Herman

By Alastair Macdonald

BRUSSELS (Reuters) – As Britain hands the European Union its formal notice to quit this month, Brussels is resigned to losing part of the EU’s western flank but is increasingly stressed that upset in the east is pulling the survivors further apart.

Poland, the biggest of the ex-communist eastern states to join after the Cold War, has picked a fight over the fairly minor matter of who chairs EU summits. Symptomatic of a mounting east-west friction, the spat will overshadow a meeting this week that was meant to forge post-Brexit unity.

Brexit has not created that friction but made it worse, as leaders struggle to quell popular disaffection with the EU that is by no means confined to Britain. Westerners are talking up faster integration, even if that means leaving nationalistic easterners behind in a “multispeed Europe”.

When Chancellor Angela Merkel, raised in East Germany and a key defender of eastern allies, joined her French, Italian and Spanish peers at Versailles on Monday to ram home a message that unless some states press ahead the EU will stall and break, Polish ruling party leader Jaroslaw Kaczynski hit right back.

“The decisions made in … Versailles … aim to reinforce the process of European Union disintegration which has started with Brexit,” he said on Tuesday.

Kaczynski will not be in Brussels for Thursday’s summit but his prime minister, Beata Szydlo, will give voice to his refusal to endorse the reappointment of her centrist predecessor Donald Tusk as European Council president. Tusk and the right-wing Kaczynski are old and bitter rivals in Polish politics.

BREXIT HOLE

Brexit deprives the easterners, unwilling to see diktat from Brussels or Berlin replace rule from Moscow, of their strongest ally against EU centralization and euro zone domination.

It also leaves a big hole in the EU budget for paying the subsidies that fund a large slice of public spending in the east — cash that has kept voters there sold on EU membership and which Brussels fears London may now use to court eastern favor and divide the EU to extract better Brexit terms.

On Friday, leaders will work on plans for a March 25 summit in Rome where they hope to use 60th anniversary celebrations of the bloc’s founding treaty to pledge a new unity after Brexit.

Yet the road to Rome has been marked with division over the push by founding powers and the EU executive led by Jean-Claude Juncker for more differentiated EU integration.

“The key message of Rome must be the unity of the 27,” said a senior EU official involved in looking for compromises to ease the friction. “The political context of Brexit should not be a multispeed Europe. That would be completely out of tune.”

Neither side is pushing for a split and all insist they must pull together against challenges from Russia and uncertainty about U.S. support under President Donald Trump. For that reason, officials say, the words to come out of the Brussels and Rome summits will stress unity and soft-pedal the differences.

FRICTION GROWING

But east-west friction has heated up in the past two years.

There are rows over eastern reluctance to take in Syrian refugees and Kaczynski’s new policies that Brussels calls undemocratic. New border controls to curb migrants inside the passport-free Schengen zone have fueled eastern fears of losing travel freedoms cherished since the fall of the Berlin Wall.

And there is a brewing crisis over what eastern leaders see as hypocritical protectionism inside the EU single market by western governments trying to impose their own national minimum wages on enterprising — and cheap — eastern “posted workers”, who offer services like trucking and construction in the west.

Last week Poland and its allies demanded Brussels crack down on the “double standards” of firms that offer lower quality versions of western food brands in eastern markets.

It is not just outspoken Poland and Hungary who fret at fragmentation. The worry runs from the Baltic to the Black Sea. Eastern diplomats fear a new gap could open up along the old Iron Curtain that may never close, especially if the rich states play up to voters and refuse to fill the EU’s Brexit budget gap.

Prime Minister Robert Fico told Slovakia’s parliament on Wednesday he was skeptical of the Union’s future once Britain leaves in 2019.

“I’m afraid the EU will be divided by the money issue after 2020…In the spirit of Trump’s ‘America first’, we can expect to hear ‘Germany first’, ‘France first’ etc.”

Noting that current EU arrangements already allow for states to deepen their cooperation — the euro is just one of many examples — a senior diplomat from an eastern member state said he was suspicious of assurances from Merkel and others that any new moves would always be open to any member state to join.

“The only new thing they can mean is that this has changed,” he said. “They are saying ‘No, you are not welcome any more’.

“This is very dangerous.”

(Additional reporting by Lidia Kelly and Justyna Pawlak in Warsaw and Tatiana Jancarikova in Bratislava; Editing by Gareth Jones)

Northern Ireland talks to begin after transformative election

Sinn Fein elected candidates for East Belfast (L to R) Fran McCann, Orlaithi Flynn, Pat Sheehan and Alex Maskey pose on stage at the count centre in Belfast, Northern Ireland March 3, 2017. REUTERS/Clodagh Kilcoyne

By Ian Graham

DUBLIN (Reuters) – Northern Irish leaders prepared on Saturday for three weeks of challenging talks to save their devolved government after a snap election that could have dramatic implications for the politics and constitutional status of the British province.

The pro-British Democratic Unionist Party narrowly remained the largest party following the closest-ever election for the provincial assembly. But surging Irish nationalists Sinn Fein came within one seat of their rivals to deny unionist politicians a majority for the first time since Ireland was partitioned in 1921.

Major policy differences between the sides risk paralyzing government and dividing communities just as Britain prepares to leave the European Union. Northern Ireland, the poorest region of the United Kingdom, which has its only land border with the EU, is considered the most economically exposed to Brexit.

“Everything has changed and we enter into a new political landscape from Monday,” outgoing finance minister Mairtin O’Muilleoir of Sinn Fein told national Irish broadcaster RTE.

The two largest parties have three weeks to form a new power-sharing government to avoid devolved power returning to London for the first time since 2007.

With relations at their lowest point in a decade and Sinn Fein insisting among its conditions that DUP leader Arlene Foster step aside before it will re-enter government, few analysts think an agreement can be reached in that time.

An acrimonious campaign also added to the friction. Foster’s outright rejection of some Sinn Fein’s demands by saying that “if you feed a crocodile, it will keep coming back looking for more” antagonized and rallied nationalists.

Michelle O’Neill, the 40-year-old new leader of Sinn Fein whose elevation represented a generational shift within the former political wing of the Irish Republican Army, benefited most from the highest turnout in two decades.

“Foster angered nationalists and made sure they went out to vote but Michelle O’Neill is also a much more acceptable nationalist face than previously,” said Gary Thompson, a 57-year-old voter, as he went for a jog near parliament buildings.

Pensioner Tom Smyth, a DUP supporter, said Foster had to stand up to Sinn Fein but in doing so probably helped mobilize their rivals’ vote.

“This is terrible,” he said. “There will be no living with them (Sinn Fein) now. All my life there has been a Unionist political majority. I feel a bit exposed now and wonder what the future holds.”

IRISH UNIFICATION

Nationalist candidates, traditionally backed by Catholics, also narrowed the gap overall with unionists, who tend to be favored by Protestants, to just one seat. Smaller, non-sectarian parties captured the remaining 12 percent of the vote.

Northern Ireland is still marginally a mainly Protestant province but demographics suggest Catholics could become the majority within a generation. The shift in the election will embolden Sinn Fein in its ultimate goal of uniting Ireland.

The party has increased calls for a border poll since Northern Ireland, like Scotland, voted to remain in the EU while the United Kingdom’s two other countries, England and Wales, chose to leave.

Sinn Fein’s O’Muilleoir described Brexit as “the gift that keeps on giving” for those that want a united Ireland.

“The massive shift towards nationalism in this election completely changes the landscape and most certainly brings the constitutional question to the foreground,” said Peter Shirlow, Director of Irish Studies at the University of Liverpool.

Taking over the administration of Northern Ireland is not a prospect likely to please British prime minister Theresa May, already fighting a renewed independence push from Scotland as she readies her Brexit launch at the end of the month.

Her Northern Ireland Minister James Brokenshire urged the parties to engage intensively in the short time available.

Former Northern Ireland first minister David Trimble, who was instrumental to the 1998 Good Friday peace agreement that ended three decades of sectarian bloodshed, said the British government should find a way to give the parties more time.

“If we can’t do it in three weeks it could be a prolonged period of direct rule,” Jeffrey Donaldson, a senior member of the DUP told BBC Radio.

“In those circumstances, with Brexit coming down the road, we won’t have our own administration to speak for us and offer the best prospect of delivering the kind of outcome we need.”

(Writing by Padraic Halpin; Editing by Catherine Evans)

Poll sees Irish nationalist vote up in Northern Ireland election

Tellers count ballots in the Northern Ireland assembly elections, in Ballymena, Northern Ireland March 3, 2017. REUTERS/Clodagh Kilcoyne

BELFAST (Reuters) – Turnout was higher among Irish nationalist voters than pro-British unionists in elections in Northern Ireland on Thursday, an online exit poll indicated, but it was unclear if it would be enough to shift the balance of power in the British province.

Nationalists who favor a united Ireland and unionists who want Northern Ireland to remain British are jostling for position ahead of talks on Britain’s exit from the European Union, which is set to determine the province’s political and economic future.

Opinion polls ahead of the election indicated that the pro-British Democratic Unionist Party would lose votes but remain the largest party, followed by Irish nationalists Sinn Fein.

An online exit poll by Lucid Talk found that turnout appeared to be 2-3 percent higher among nationalist voters compared to an election year ago while turnout for unionist voters was unchanged.

“People seem to be more engaged on the Republican side to come out and vote,” said Bill White, managing director at Lucid Talk. “That differential turnout could come into play when last seats are in play.”

While analysts say Sinn Fein is unlikely to become the largest party for the first time – an outcome that would turn Northern Ireland politics on its head – a strong showing could help them secure concessions from the DUP.

Sinn Fein is insisting that DUP leader Arlene Foster step aside before it will consider re-entering government. While the DUP have rejected this outright, a poor result might force her to step down.

The largest unionist and nationalist parties after the election will have three weeks to form a power-sharing government to avoid devolved power returning to the British parliament at Westminster for the first time in a decade.

While no one predicts the impasse will bring a return to the violence that killed 3,600 people in the three decades before a 1998 peace agreement, some are warning of a deterioration in community relations coupled with government paralysis as Brexit talks determine the province’s political and economic future.

Sinn Fein brought on the election by collapsing the power-sharing government in January over the role of the DUP in a scandal over heating subsidies that could cost the state 500 million pounds. The DUP deny wrongdoing.

(Reporting by Ian Graham and Conor Humphries; Editing by Angus MacSwan)

EU needs common approach on testing banks’ cyber-risks: Dombrovskis

European Commission Vice-President Valdis Dombrovskis addresses a news conference on the European Semester Winter Package in Brussels, Belgium February 22, 2017. REUTERS/Francois Lenoir

BRUSSELS (Reuters) – European Union countries should test bank defenses against cyber-attacks using a common set of requirements, a senior EU official said on Tuesday, as the bloc plans measures to boost the retail market for financial products.

Cyber attacks against banks have increased in numbers and sophistication in recent years, raising questions on lenders’ capacity to protect their customers.

Seeking to reassure savers and strengthen financial stability, several EU countries are conducting tests on banks’ security systems, but EU authorities warned national initiatives may be less effective and more costly than a common EU approach.

“We want to avoid a proliferation of testing obligations that operate in different countries,” the EU commission’s vice president Valdis Dombrovskis told a conference in Brussels.

“We believe tests that meet comparable standards should be recognized across borders,” he added. This could pave the way for common stress-tests carried out at EU level, as suggested by EU officials in past weeks.

The call for higher cyber-security comes as the Commission prepares a policy action plan on retail financial services, such as insurance, loans and payments, that will be released in the coming weeks.

Dombrovskis said the plan would encourage the use of remote identification schemes, such as e-signature and e-identification, to try to boost consumers’ access to financial services and lower costs.

It will also attempt to facilitate the take-up of new technologies in the financial sector, where emerging fintech companies are challenging traditional actors in a range of services, including payments and insurance.

“Our focus should be on removing barriers to market entry and keeping our legislation proportionate,” Dombrovskis said, noting that changes may create new risks that need to be addressed with greater sharing of information among financial firms and common testing of security systems.

(Reporting by Francesco Guarascio; Editing by Keith Weir)

UK economy picks up in late 2016 but signs of Brexit hit appear

Workers walk to work during the morning rush hour in the financial district of Canary Wharf in London, Britain, January 26, 2017. REUTERS/Eddie Keogh

By Andy Bruce and William Schomberg

LONDON (Reuters) – Britain’s economy sped up at the end of 2016, data showed, but over the whole year it was weaker than previously thought and there were signs that the Brexit vote will increasingly act as a brake on growth in 2017.

The pound fell after Wednesday’s Office for National Statistics (ONS) figures, which no longer showed Britain was the fastest-growing major advanced economy last year.

Gross domestic product rose by 0.7 percent in the fourth quarter, faster than the preliminary reading of 0.6 percent thanks to manufacturing and the strongest growth since the fourth quarter of 2015.

The figures are likely to reinforce finance minister Philip Hammond’s view that there is no case right now to borrow more to help the economy when he announces his annual budget on March 8.

But he will keep a close eye on warning signs in Wednesday’s data.

Business investment fell and slowing household spending growth raised questions about the outlook for 2017.

The ONS also trimmed its estimate for 2016 growth to 1.8 percent from 2.0 percent, due to businesses stockpiling fewer goods and materials in early 2016.

That pushed Britain’s economic growth rate slightly below Germany’s 1.9 percent.

Separate ONS data showed Britain’s dominant services sector expanded in December at the slowest pace in seven months.

Angus Armstrong, director of macroeconomics at the National Institute of Economic and Social Research, said the familiar pattern of consumers driving the economy was likely to fade.

“The UK economy needs another driver if it is not to have a significant slowdown in 2017,” he said. “The pattern of strong consumer spending and weaker business investment can only be a limited one.”

Business investment fell 1.0 percent in the fourth quarter compared with the July-September period. Investment by companies was 0.9 percent lower compared with the fourth quarter of 2015.

Firms are expected to rein in their investment plans as Britain negotiates its departure from the EU, a process that Prime Minister Theresa May is due to kick off in coming weeks.

The outlook for wages is key for spending by households who have driven Britain’s economy since the Brexit vote. Wednesday’s data showed compensation of employees edged up by 0.1 percent in the fourth quarter, the weakest rise in more than three years.

BREXIT SQUEEZE

The ONS said household spending increased 0.7 percent on the quarter, slowing from 0.9 percent in the third quarter and marking the weakest growth in a year.

Bank of England deputy governor Minouche Shafik said after the data that the central bank still expected overall economic growth this year of 2.0 percent, much stronger than most economists polled by Reuters expect.

But the bank also predicts a growing squeeze on consumers as inflation rises due to the pound’s fall since June’s vote to leave the European Union.

There are signs this has started. Data last week showed retail sales fell in each of the three months to January.

The BoE this month signaled that it is in no hurry to raise interest rates with so much Brexit-related uncertainty ahead.

The central bank expects the economy to grow at a slower pace in subsequent years than if Britain had voted to stay in the EU.

(Editing by John Stonestreet)

Pence says U.S. will stand firm with Europe, NATO

US Vice President Mike Pence

By Roberta Rampton and John Irish

MUNICH (Reuters) – U.S. Vice President Mike Pence on Saturday brought a message of support for Europe from Donald Trump but failed to wholly reassure allies worried about the new president’s stance on Russia and the European Union.

In Pence’s first major foreign policy address for the Trump administration, the vice president told European leaders and ministers that he spoke for Trump when he promised “unwavering” commitment to the NATO military alliance.

“Today, on behalf of President Trump, I bring you this assurance: the United States of America strongly supports NATO and will be unwavering in our commitment to this transatlantic alliance,” Pence told the Munich Security Conference.

While Poland’s defense minister praised Pence, many others, including France’s foreign minister and U.S. lawmakers in Munich, remained skeptical that he had convinced allies that Trump, a former reality TV star, would stand by Europe.

Trump’s contradictory remarks on the value of the North Atlantic Treaty Organisation, scepticism of the 2015 deal to curb Iran’s nuclear ambitions and an apparent disregard for the future of the European Union have left Europe fearful for the seven-decade-old U.S. guardianship of the West.

French Foreign Minister Jean-Marc Ayrault on Twitter expressed his disappointment that Pence’s speech contained “Not a word on the European Union”, although the vice president will take his message to EU headquarters in Brussels on Monday.

U.S. Senator Chris Murphy, a member of the opposition Democrats, said he saw two rival governments emerging from the Trump administration.

Pence, Trump’s defense secretary Jim Mattis and his foreign minister Rex Tillerson all delivered messages of reassurance on their debut trip to Europe.

But events in Washington, including a free-wheeling news conference Trump gave in which he branded accredited White House reporters “dishonest people”, sowed more confusion.

“Looks like we have two governments,” Murphy wrote on Twitter from Munich. The vice president “just gave speech about shared values between US and Europe as (the U.S. president) openly wages war on those values.”

The resignation of Trump’s security adviser Michael Flynn over his contacts with Russia on the eve of the U.S. charm offensive in Europe also tarnished the message Pence, Mattis and Tillerson were seeking to send, officials told Reuters.

U.S. Republican Senator John McCain, a Trump critic, told the conference on Friday that the new president’s team was “in disarray,” breaking with the American front.

The United States is Europe’s biggest trading partner, the biggest foreign investor in the continent and the European Union’s partner in almost all foreign policy, as well as the main promoter of European unity for more than sixty years.

Pence, citing a trip to Cold War-era West Berlin in his youth, said the new U.S. government would uphold the post-World War Two order.

“This is President Trump’s promise: we will stand with Europe today and every day, because we are bound together by the same noble ideals – freedom, democracy, justice and the rule of law,” Pence said.

MUTED APPLAUSE

While the audience listened intently, Pence received little applause beyond the warm reception he received when he declared his support for NATO.

Ayrault, in a speech defending Franco-German leadership in Europe, lauded the virtues of multilateralism at a time of rising nationalism. Trump has promise ‘America First.’

“In these difficult conditions, many are attempting to look inward, but this isolationism makes us more vulnerable. We need the opposite,” Ayrault said.

Pence warned allies they must pay their fair share to support NATO, noting many lack “a clear or credible path” to do so. He employed a tougher tone than Mattis, who delivered a similar but more nuanced message to NATO allies in Brussels this week, diplomats said.

The United States provides around 70 percent of the NATO alliance’s funds and European governments sharply cut defense spending since the fall of the Soviet Union. Russia’s resurgence as a military power and its seizure of Ukraine’s Crimean peninsula in the Black Sea has started to change that.

Baltic states and Poland fear Russia might try a repeat of Crimea elsewhere. Europe believes Moscow is seeking to destabilize governments and influence elections with cyber attacks and fake news.

Pence’s tough line on Russia, calling Moscow to honor the international peace accords that seek to end the conflict in eastern Ukraine, were welcomed by Poland.

“Know this: the United States will continue to hold Russia accountable, even as we search for new common ground, which as you know, President Trump believes can be found,” Pence said.

Polish Defence Minister Antoni Macierewicz said Pence’s speech “highlighted on behalf of President Trump that the U.S. supports NATO, Ukraine and Europe.

“They want to show the U.S. military potential,” he said.

(Additional reporting by Noah Barkin, Andrea Shalal, Vladimir Soldatkin, John Irish and Jonathan Landay; Writing by Robin Emmott; Editing by Janet Lawrence)

Russia tells White House it will not return Crimea to Ukraine

Submarine in Crimea

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Wednesday it would not hand back Crimea to Ukraine or discuss the matter with foreign partners after the White House said U.S. President Donald Trump expected the annexed Black Sea peninsula to be returned.

Moscow says an overwhelming majority of Crimeans voted to become part of Russia in a 2014 referendum wanting protection from what the Kremlin cast as an illegal coup in Kiev.

Ukraine says the referendum was a sham held at gunpoint after Russian troops illegally annexed the peninsula, that Russia-friendly president Viktor Yanukovych was ousted by people power, and that Moscow should return Crimea.

“We don’t give back our own territory. Crimea is territory belonging to the Russian Federation,” Maria Zakharova, spokeswoman for the Russian Foreign Ministry, told a news briefing on Wednesday.

The 2014 annexation prompted the United States and the European Union to impose sanctions on Russia, plunging Western relations with the Kremlin to their worst level since the Cold War.

White House spokesman Sean Spicer said on Tuesday that Trump expected and wanted to get along with Russia, but was expecting Moscow to hand Crimea back.

Kremlin spokesman Dmitry Peskov, when asked about Spicer’s comments, said President Vladimir Putin had already explained why Crimeans had turned to Russia.

“The theme of returning Crimea will not be discussed … Russia does not discuss its territorial integrity with foreign partners,” Peskov told a conference call with reporters.

Trump had not raised the Crimean issue in a Jan. 28 phone call with Putin, Peskov noted, saying the Kremlin would try to make contacts with the Trump administration to try to improve ties which he said were in “a lamentable state.”

Vyacheslav Volodin, speaker of the State Duma, the lower house of parliament, told MPs any talk of Crimea’s status amounted to a challenge to Russia’s territorial integrity.

Volodin, a close Putin ally, told the Interfax news agency Trump had promised in his election campaign to work to improve relations with Russia.

“Let’s wait for some first-hand words from the U.S. president,” said Volodin. “When people get elected by voters it’s not merely for warm words and the ability to speak, but for concrete promises … that will be fulfilled.”

(Additional reporting by Maria Tsvetkova/ Alessandra Prentice; editing by John Stonestreet)

United Nations, EU condemn Israel legalizing settlements on Palestinian land

European Union foreign policy chief condenming israel

BRUSSELS/UNITED NATIONS (Reuters) – The European Union’s foreign policy chief and the United Nations secretary-general on Tuesday criticized an Israeli move to legalize thousands of settler homes on Palestinian land in the occupied West Bank.

The EU’s Federica Mogherini said that the law, if it was implemented, crossed a new and dangerous threshold.

“Such settlements constitute an obstacle to peace and threaten the viability of a two-state solution,” she said.

“(It) would further entrench a one-state reality of unequal rights, perpetual occupation and conflict,” she said, highlighting that the EU sees Israeli settlements in the occupied Palestinian territories as illegal.

The Israeli parliament passed the legislation two weeks after the inauguration of President Donald Trump as the new U.S. president. Trump has signaled a softer approach to the settlement issue than that of the previous U.S. administration.

It retroactively legalizes about 4,000 settler homes built on privately owned Palestinian land.

U.N. Secretary-General Antonio Guterres said the action went against international law and would have legal consequences for Israel.

“The Secretary-General insists on the need to avoid any actions that would derail the two-state solution,” his spokesman Stephane Dujarric said in a statement, referring to longstanding international efforts to resolve the Israeli-Palestinian conflict.

French President Francois Hollande also added his voice to the condemnation, saying it paved the way for the annexation of the occupied Palestinian territories.

“I think that Israel and its government could revise this text,” Hollande said at news conference after meeting Palestinian President Mahmoud Abbas.

Abbas called the law an aggression against the Palestinian people. Other Palestinian leaders described it as a blow to their hopes of statehood.

Most countries consider the settlements, built on land captured by Israel in the 1967 Middle East War, illegal and an obstacle to peace as they reduce and fragment the territory Palestinians seek for a viable state in the West Bank, East Jerusalem and the Gaza Strip.

Israel disputes this and cites biblical, historical and political connections to the land, as well as security needs.

Though the legislation was backed by Prime Minister Benjamin Netanyahu’s right-wing coalition, it has raised tensions in the government. Israel’s attorney-general has said the law is unconstitutional and that he will not defend it at the Supreme Court.

A White House official said on Monday that, given the new law is expected to face challenges in Israeli courts, the United States would withhold comment for now.

The Trump administration has signaled a far softer approach to the settlement issue than that of the Obama administration, which routinely denounced settlement announcements.

(Writing by Gabriela Baczynska; Editing by Angus MacSwan)

U.S. must go on taking refugees, EU migration chief to say in Washington

EU dude for migration saying that the U.S. needs to take migrants/refugees

BRUSSELS (Reuters) – The European Union’s top migration official will tell the new U.S. Homeland Security Secretary John Kelly in Washington on Wednesday that the United States cannot shut its doors on refugees despite President Donald Trump’s orders.

The EU’s migration commissioner, Dimitris Avramopoulos, will be the first senior Brussels official to visit Washington since Trump’s inauguration more than two weeks ago.

Much of this time has been dominated by uproar over Trump’s decision to stop allowing refugees into the United States and barring almost any travel from seven Muslim-majority countries, a move he said was needed to ensure his nation’s safety.

The EU is also trying to curb immigration after some 1.6 million people arrived in the bloc in 2014-2016, an uncontrolled influx that caught it unprepared, triggered bitter political disputes between member states and raised security concerns.

The bloc has resorted to tightening its borders, rejecting labor migrants more stringently and tightening asylum rules for refugees. These measures, however, do not go anywhere near Trump’s ban on refugees, which the EU has criticized.

“Refugee resettlement is a global responsibility and it cannot be shouldered by just a handful of countries,” Avramopoulos told Reuters on the eve of his talks with Kelly.

“Nations with a long experience in this field, having hosted millions of migrants and refugees, I hope will continue playing their responsible leading role,” he said in emailed comments.

Should the United States rescind more permanently the international law obligation to help people fleeing war or persecution, it would leave the EU under even more pressure.

Separately on Tuesday, a European court cast doubt on the bloc’s strategy to deal with the migration crisis, by saying EU countries cannot refuse entry to people at risk of torture or inhuman treatment. [nL5N1FS27L]

Avramopoulos and Kelly will also discuss security during their first face-to-face meeting that comes at a delicate time for the transatlantic relationship, with the EU worrying Trump could turn his back on America’s European allies.

“Democracy, equality, the rule of law – these are all values we share with the US. Of course our openness should not come at the expense of our security – but our security objectives should never come at the expense of our fundamental values of openness and tolerance either,” Avramopoulos said.

(Reporting by Gabriela Baczynska; Editing by Alison Williams)

Divided on Trump, EU insists on European unity

German Chancellor Angela merkel speaks to EU commission

By Alastair Macdonald and Gabriela Baczynska

VALLETTA (Reuters) – European Union leaders said they agreed to stick together in dealing with Donald Trump, but at their first summit since he took office they were at odds on how far to confront or engage with the new U.S. president.

Trump and his policies, from questioning the value of NATO and free trade to banning Muslim refugees, came up repeatedly in discussions in Malta on external “challenges” facing the Union.

British Prime Minister Theresa May, about to lead her country out of the EU, briefed peers on her visit to Washington last week and assured them Trump was committed to cooperating in their defense — just as Britain would also be after Brexit.

Francois Hollande, the outgoing Socialist president of France, led criticism of Trump, calling it “unacceptable” for him to applaud Brexit and forecast the break-up of the EU. In thinly veiled rebukes to May and some eastern states, he warned of trying to cut their own transatlantic deals.

“A lot of countries should think of their future first of all in the European Union rather than imagining I don’t what kind of bilateral relationship with the United States,” he said.

Lithuanian President Dalia Grybauskaite, who like many in the east is alarmed by Trump’s conciliatory noises to Moscow, poured cold water on May’s suggestion Britain could be a link to Washington. Europe did not need a “bridge”, she was quoted as saying, because it could communicate with Trump on Twitter.

But her Polish neighbor, Beata Szydlo, reserved her main criticisms for her predecessor as prime minister, EU summit chair Donald Tusk, who described Trump this week as a “threat” to the EU, along with Russia, China and militant Islam.

“European politicians trying to build this sense of fear … are making a mistake,” said Szydlo, whose government, like Trump, has spoken out against Muslim immigration. “One cannot be confrontational in our relations with the United States.”

MERKEL CAUTIOUS

Stressing the need for unity, the bloc’s dominant leader, German Chancellor Angela Merkel, said Europeans still had common ground with the United States in many areas, while not sharing Trump’s scepticism about many international institutions.

“We have again made very clear our common values and our faith in multilateralism,” she told a news conference.

The Union would, she said, push for free trade deals with more nations as Trump pulls back. But cooperation with the United States against militant threats would continue, she said.

One EU diplomat said France was clearly pushing to use the Trump presidency to rally Europeans behind a policy of greater distance from Washington and turning to the EU, rather than NATO, for their security.

“The Germans are much more cautious,” the diplomat said. “There is a clear issue to be decided: whether we seek common ground to engage with the United States, or turn our backs.”

Summit host Joseph Muscat, the Maltese prime minister, chose to emphasize balance in summing up the discussions, speaking of “concern” at Trump’s policy but “no sense of anti-Americanism”.

“There was a sense that we need to engage with the U.S. just the same,” Muscat said. “But we need to show that we cannot stay silent where there are principles involved.”

(Writing by Alastair Macdonald, editing by Larry King)