NATO foreign ministers are set on Wednesday to make space a domain of warfare and agree to closely monitor China’s growing military might in decisions that many allies say shows the alliance is not dying, as <a href="https://www.wionews.com/world/french-president-says-nato-experiencing-brain-death-260582">France</a> has suggested.

Two weeks before the Western alliance meets for a summit in London to mark 70 years since its foundation, ministers aim to show they are rising to challenges despite tensions over <a href="https://www.wionews.com/world/trump-to-attend-nato-summit-in-london-days-before-uk-vote-262476">US President Donald Trump’s </a>leadership, alarm at Turkey’s ties with Russia and French doubts about NATO’s viability.

“Reports of NATO’s death are greatly exaggerated,” Lithuanian Foreign Minister Linas Linkevicius told Reuters, referring to French President Emmanuel Macron’s November 7 comments about “the brain death of NATO”.

Envoys hope two major policies - on space as a new frontier in defense and on China - will show that NATO is not a Cold War relic but a shield against threats including Russia’s decision to develop missiles capable of hitting Europe at short notice.

First reported by Reuters in June, the space policy, which has been months in negotiation, will mean that battles can be waged not only on land, in the air, at sea and on computer networks, but also in space.

NATO will not deploy weapons to space. It will begin work on protecting satellites crucial for modern communications.

NATO diplomats deny the alliance would be on a war footing in space, but say declaring it a domain would begin a debate over whether NATO should eventually use space weapons that can shut down enemy missiles and air defenses or destroy satellites.

China and Russia are also active in space.

BRAIN DEAD?

A new policy to be agreed on China will also lay the ground for NATO to focus closely on Beijing’s military ambitions and to ensure allied communications networks and infrastructure are safe from any possible foreign interference.

China had the second-largest defense budget after the United States in 2018 and has added 80 ships and submarines to its navy, the equivalent of the entire British navy, in the past five years, NATO says.

“When there is a military build-up, you have to see what you need to defend against,” U.S. Ambassador to NATO Kay Bailey Hutchison told reporters. “We are not provocative in any way.”

NATO diplomats say Macron has prompted soul-searching after expressing doubt in his interview with The Economist about US-led NATO’s security maxim. NATO allies promise that an attack on one is an attack on all. That has underpinned transatlantic ties since the alliance’s 1949 foundation.

Still, diplomats concede the Western military alliance needs to be more consistent. Macron’s comments, Trump’s confusing policy in Syria and Turkey’s decision to defy allies and invade northern Syria last month have strained the mood.

Foreign ministers, including US Secretary of State Mike Pompeo, are expected to reaffirm their commitment to the NATO security guarantee at the Brussels meeting.

NATO foreign ministers are set on Wednesday to make space a domain of warfare and agree to closely monitor China’s growing military might in decisions that many allies say shows the alliance is not dying, as France has suggested.

NATO foreign ministers are set on Wednesday to make space a domain of warfare and agree to closely monitor China’s growing military might in decisions that many allies say shows the alliance is not dying, as France has suggested. Two weeks before the Western alliance meets for a summit in London to mark 70 years since its foundation, ministers aim to show they are rising to challenges despite tensions over US President Donald Trump’s leadership, alarm at Turkey’s ties with Russia and French doubts about NATO’s viability. “Reports of NATO’s death are greatly exaggerated,” Lithuanian Foreign Minister Linas Linkevicius told Reuters, referring to French President Emmanuel Macron’s November 7 comments about “the brain death of NATO”. Envoys hope two major policies - on space as a new frontier in defense and on China - will show that NATO is not a Cold War relic but a shield against threats including Russia’s decision to develop missiles capable of hitting Europe at short notice. First reported by Reuters in June, the space policy, which has been months in negotiation, will mean that battles can be waged not only on land, in the air, at sea and on computer networks, but also in space. NATO will not deploy weapons to space. It will begin work on protecting satellites crucial for modern communications. NATO diplomats deny the alliance would be on a war footing in space, but say declaring it a domain would begin a debate over whether NATO should eventually use space weapons that can shut down enemy missiles and air defenses or destroy satellites. China and Russia are also active in space. BRAIN DEAD? A new policy to be agreed on China will also lay the ground for NATO to focus closely on Beijing’s military ambitions and to ensure allied communications networks and infrastructure are safe from any possible foreign interference. China had the second-largest defense budget after the United States in 2018 and has added 80 ships and submarines to its navy, the equivalent of the entire British navy, in the past five years, NATO says. “When there is a military build-up, you have to see what you need to defend against,” U.S. Ambassador to NATO Kay Bailey Hutchison told reporters. “We are not provocative in any way.” NATO diplomats say Macron has prompted soul-searching after expressing doubt in his interview with The Economist about US-led NATO’s security maxim. NATO allies promise that an attack on one is an attack on all. That has underpinned transatlantic ties since the alliance’s 1949 foundation. Still, diplomats concede the Western military alliance needs to be more consistent. Macron’s comments, Trump’s confusing policy in Syria and Turkey’s decision to defy allies and invade northern Syria last month have strained the mood. Foreign ministers, including US Secretary of State Mike Pompeo, are expected to reaffirm their commitment to the NATO security guarantee at the Brussels meeting.

NATO says death 'greatly exaggerated'; to adopt new strategies on space, China

British Prime Minister Boris Johnson prepared to Monday make a second attempt to ram his European Union divorce deal through parliament and avoid the political damage of delaying Brexit next week.

Another momentous week in the tortuous saga could end with Johnson engineering a divorce from Brussels that breaks many of the island nation's economic relations with Europe after 46 years of EU membership.

British lawmakers dealt a dramatic blow to Johnson's Brexit plan at the weekend by refusing to give their backing to his revised withdrawal agreement until the legislation needed to ratify it has passed.

His foes are now forging new alliances and trying to attach amendments that could either force Johnson to accept closer trade ties -- or abandon the deal and accept a third delay this year.

The option of extending Brexit past the latest October 31 deadline is now in the hands of the 27 remaining EU member states.

Britain has been struggling to agree on how to leave the EU, three-and-a-half years since a &nbsp;referendum on Brexit that has left the country deeply divided.

Johnson has built his entire Brexit strategy on the premise of using the pressures of time to force everyone to stop bickering and agree on an exit plan by the end of the month.

"This is the chance to leave the EU with a deal on October 31," Brexit minister Stephen Barclay said Monday.

But Johnson was mandated by UK lawmakers Saturday to send a letter to Brussels asking for more time.

The British leader ended up sending three letters on Saturday. The only one he actually signed said an "extension would damage the interests of the UK and our EU partners" and that he was firmly against a delay.

The maneuver&nbsp;is designed to minimize the political damage of Johnson going back on his word and seeking an extension ahead of an early general election most expect in the coming months.

The top civil court in Scotland will hear a challenge Monday on whether Johnson's half-hearted request broke the law.

But officials in Brussels said Johnson's request was valid.

German Foreign Minister Heiko Maas said he "would not rule out a short technical extension" if one was needed to get all the UK legislation approved.

<h2>Customs union plot</h2>

Johnson's first effort to get parliamentary backing for the deal he sealed against heavy odds last Thursday in Brussels was scuttled at a very rare Saturday sitting of British MPs.

Lawmakers pushed through an amendment obliging a furious Johnson to ask for an extension until the British legislation governing the withdrawal is drafted and passed.&nbsp;

Analysts said the process -- even when fast-tracked -- would generally take several weeks.

House of Commons Speaker John Bercow might tell Johnson on Monday that he cannot bring what is effectively the same legislation back for a second vote.

This would switch the focus on the government's attempt Tuesday to get lawmakers to support domestic legislation in the accompanying Withdrawal Agreement Bill.

The success or failure then would set the course for the coming week and largely determine whether Johnson's will get his October 31 divorce.

But the deck against Johnson seems stacked.

The main opposition Labour Party is trying to create a cross-party alliance that would back Johnson's deal on the condition that it is fixed to keep Britain in a customs union with the EU.

Johnson and his supporters say this would kill the point of Brexit by keeping Britain tied to Europe and unable to strike its own trade deals with powers such as China and the United States.

Labour is trying to create a quick marriage of convenience with Johnson's nominal allies in Northern Ireland's Democratic Unionist Party.

The DUP broke ranks and voted against Johnson's agreement Saturday because it created new trade regulations for goods moving between Northern Ireland and the rest of the UK.

A customs union would avoid that.

The Brexit-supporting DUP appeared open to the suggestion after rejecting another amendment backed by Labour that would put up any eventual deal for a confirmatory referendum.

Hundreds of thousands of people rallied in London on Saturday demanding a second national vote on Brexit that could overturn the results of the 2016 referendum.

British Prime Minister Boris Johnson prepared to Monday make a second attempt to ram his European Union divorce deal through parliament and avoid the political damage of delaying Brexit next week.

British Prime Minister Boris Johnson prepared to Monday make a second attempt to ram his European Union divorce deal through parliament and avoid the political damage of delaying Brexit next week. Another momentous week in the tortuous saga could end with Johnson engineering a divorce from Brussels that breaks many of the island nation's economic relations with Europe after 46 years of EU membership. British lawmakers dealt a dramatic blow to Johnson's Brexit plan at the weekend by refusing to give their backing to his revised withdrawal agreement until the legislation needed to ratify it has passed. His foes are now forging new alliances and trying to attach amendments that could either force Johnson to accept closer trade ties -- or abandon the deal and accept a third delay this year. The option of extending Brexit past the latest October 31 deadline is now in the hands of the 27 remaining EU member states. Britain has been struggling to agree on how to leave the EU, three-and-a-half years since a referendum on Brexit that has left the country deeply divided. Johnson has built his entire Brexit strategy on the premise of using the pressures of time to force everyone to stop bickering and agree on an exit plan by the end of the month. "This is the chance to leave the EU with a deal on October 31," Brexit minister Stephen Barclay said Monday. But Johnson was mandated by UK lawmakers Saturday to send a letter to Brussels asking for more time. The British leader ended up sending three letters on Saturday. The only one he actually signed said an "extension would damage the interests of the UK and our EU partners" and that he was firmly against a delay. The maneuver is designed to minimize the political damage of Johnson going back on his word and seeking an extension ahead of an early general election most expect in the coming months. The top civil court in Scotland will hear a challenge Monday on whether Johnson's half-hearted request broke the law. But officials in Brussels said Johnson's request was valid. German Foreign Minister Heiko Maas said he "would not rule out a short technical extension" if one was needed to get all the UK legislation approved. Customs union plot Johnson's first effort to get parliamentary backing for the deal he sealed against heavy odds last Thursday in Brussels was scuttled at a very rare Saturday sitting of British MPs. Lawmakers pushed through an amendment obliging a furious Johnson to ask for an extension until the British legislation governing the withdrawal is drafted and passed. Analysts said the process -- even when fast-tracked -- would generally take several weeks. House of Commons Speaker John Bercow might tell Johnson on Monday that he cannot bring what is effectively the same legislation back for a second vote. This would switch the focus on the government's attempt Tuesday to get lawmakers to support domestic legislation in the accompanying Withdrawal Agreement Bill. The success or failure then would set the course for the coming week and largely determine whether Johnson's will get his October 31 divorce. But the deck against Johnson seems stacked. The main opposition Labour Party is trying to create a cross-party alliance that would back Johnson's deal on the condition that it is fixed to keep Britain in a customs union with the EU. Johnson and his supporters say this would kill the point of Brexit by keeping Britain tied to Europe and unable to strike its own trade deals with powers such as China and the United States. Labour is trying to create a quick marriage of convenience with Johnson's nominal allies in Northern Ireland's Democratic Unionist Party. The DUP broke ranks and voted against Johnson's agreement Saturday because it created new trade regulations for goods moving between Northern Ireland and the rest of the UK. A customs union would avoid that. The Brexit-supporting DUP appeared open to the suggestion after rejecting another amendment backed by Labour that would put up any eventual deal for a confirmatory referendum. Hundreds of thousands of people rallied in London on Saturday demanding a second national vote on Brexit that could overturn the results of the 2016 referendum.

British Prime Minister Boris Johnson prepares fresh Brexit push

European&nbsp;Union&nbsp;leaders&nbsp;will&nbsp;discuss&nbsp;a new&nbsp;budget&nbsp;plan on Friday that could allow the bloc to spend up to 1.1&nbsp;trillion&nbsp;euros&nbsp;in the 2021-2027 period, but deep divisions among governments could block a deal for months.

Under a proposal prepared by Finland, which holds the EU's rotating presidency, the next long-term&nbsp;budget&nbsp;should have a financial capacity between 1.03 per cent&nbsp;and 1.08 per cent&nbsp;of the bloc's gross national income (GNI), a measure of output.

That would allow the EU to spend between 1 and 1.1&nbsp;trillion&nbsp;euros for seven years with its first&nbsp;budget&nbsp;after the <a href="https://www.wionews.com/world/boris-johnson-agrees-brexit-deal-but-must-now-win-over-parliament-256575">exit from the club of Britain</a>, one of the top contributors to EU coffers.

The document, seen by Reuters, is less ambitious than proposals put forward by the&nbsp;European&nbsp;Commission, the EU executive, which is seeking a&nbsp;budget&nbsp;worth 1.1 per cent&nbsp;of GNI. The EU parliament called for an even higher&nbsp;budget&nbsp;at 1.3 per cent&nbsp;of GNI.

But the Finnish proposal moves beyond a 1 per cent&nbsp;cap set by Germany, the bloc's largest economy.

Finland's midway solution has displeased most of the 27 EU states, EU officials said, anticipating long negotiations before a compromise can be reached.

Talks on&nbsp;budgets are traditionally among the most divisive in a bloc that in recent years has become increasingly prone to quarrels, as its states are deeply split over economic policies, financial reforms and how to handle migrants.

The Finnish proposal, which cuts spending on farmers and poorer regions, has managed to unite the divided EU&nbsp;leaders&nbsp;in its criticism.

"The text has caused nearly unanimous dissatisfaction," a diplomat involved in the talks said.

While the bloc has embarked on a range of new expensive policies, such as protecting its borders and increasing social security, states are reluctant to pay more.

Germany and other Nordic supporters of a smaller&nbsp;budget&nbsp;argue that because of&nbsp;Brexit, they would pay more into EU coffers even with a 1 per cent&nbsp;cap because they would need to compensate for the loss of Britain's transfers.

Eastern and southern states, who benefit from EU funds on poorer regions and agriculture, are keen to see a bigger&nbsp;budget, and are not happy with Finland's proposed cuts on these sectors.

Under the proposal, subsidies to poor regions would drop to less than 30 per cent&nbsp;of the&nbsp;budget&nbsp;from 34 per cent&nbsp;now, while aid to farmers would fall to slightly more than 30 per cent&nbsp;from over 35 per cent&nbsp;of the total.

To complicate matters, the new&nbsp;budget&nbsp;should also include rules that would suspend funding to member states with rule-of-law shortcomings, such as limits to media freedom or the independence of judges.

This is irking states like Poland and Hungary which Brussels has long accused of breaches in the rule of law after judiciary and media reforms adopted by their far-right governments.

Friday's meeting is seen as a starting point and is not supposed to find a compromise, but divisions are so deep that many officials fear a deal may not be reached by a self-imposed December deadline. A later deal would delay the launch of spending programmes.

The Finns remained confident, however, and insist their suggested spending range would eventually be backed by EU states. "The fact that almost everybody is against our text shows we have put forward a fair proposal," one diplomat said.

European Union leaders will discuss a new budget plan on Friday that could allow the bloc to spend up to 1.1 trillion euros in the 2021-2027 period, but deep divisions among governments could block a deal for months.

European Union leaders will discuss a new budget plan on Friday that could allow the bloc to spend up to 1.1 trillion euros in the 2021-2027 period, but deep divisions among governments could block a deal for months. Under a proposal prepared by Finland, which holds the EU's rotating presidency, the next long-term budget should have a financial capacity between 1.03 per cent and 1.08 per cent of the bloc's gross national income (GNI), a measure of output. That would allow the EU to spend between 1 and 1.1 trillion euros for seven years with its first budget after the exit from the club of Britain, one of the top contributors to EU coffers. The document, seen by Reuters, is less ambitious than proposals put forward by the European Commission, the EU executive, which is seeking a budget worth 1.1 per cent of GNI. The EU parliament called for an even higher budget at 1.3 per cent of GNI. But the Finnish proposal moves beyond a 1 per cent cap set by Germany, the bloc's largest economy. Finland's midway solution has displeased most of the 27 EU states, EU officials said, anticipating long negotiations before a compromise can be reached. Talks on budgets are traditionally among the most divisive in a bloc that in recent years has become increasingly prone to quarrels, as its states are deeply split over economic policies, financial reforms and how to handle migrants. The Finnish proposal, which cuts spending on farmers and poorer regions, has managed to unite the divided EU leaders in its criticism. "The text has caused nearly unanimous dissatisfaction," a diplomat involved in the talks said. While the bloc has embarked on a range of new expensive policies, such as protecting its borders and increasing social security, states are reluctant to pay more. Germany and other Nordic supporters of a smaller budget argue that because of Brexit, they would pay more into EU coffers even with a 1 per cent cap because they would need to compensate for the loss of Britain's transfers. Eastern and southern states, who benefit from EU funds on poorer regions and agriculture, are keen to see a bigger budget, and are not happy with Finland's proposed cuts on these sectors. Under the proposal, subsidies to poor regions would drop to less than 30 per cent of the budget from 34 per cent now, while aid to farmers would fall to slightly more than 30 per cent from over 35 per cent of the total. To complicate matters, the new budget should also include rules that would suspend funding to member states with rule-of-law shortcomings, such as limits to media freedom or the independence of judges. This is irking states like Poland and Hungary which Brussels has long accused of breaches in the rule of law after judiciary and media reforms adopted by their far-right governments. Friday's meeting is seen as a starting point and is not supposed to find a compromise, but divisions are so deep that many officials fear a deal may not be reached by a self-imposed December deadline. A later deal would delay the launch of spending programmes. The Finns remained confident, however, and insist their suggested spending range would eventually be backed by EU states. "The fact that almost everybody is against our text shows we have put forward a fair proposal," one diplomat said.

European Union leaders discuss $1.2 trillion post-Brexit budget

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Spot gold&nbsp;inched 0.1 per cent&nbsp;higher to $1,490.37 per ounce as of 0044 GMT&nbsp;US gold futures&nbsp;rose 0.1 per cent&nbsp;to $1,495.60.

Asian shares were subdued as the soft US&nbsp;sales data pointed to signs that the US&nbsp;economy was beginning to show signs of weakness, and a global recession was looming.

US&nbsp;retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month.

Investors awaited further news on the <a href="https://www.wionews.com/world/united-states-china-trade-mini-deal-being-papered-trump-256340">US-China trade front</a>. US&nbsp;Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month.

Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to <a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400">seal a deal on Britain's exit</a> from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget.

Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal.

Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent&nbsp;to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday.

Palladium rose 0.2 per cent&nbsp;to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day.

Gold prices held steady on Thursday as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day. Spot gold inched 0.1 per cent higher to $1,490.37 per ounce as of 0044 GMT US gold futures rose 0.1 per cent to $1,495.60. Asian shares were subdued as the soft US sales data pointed to signs that the US economy was beginning to show signs of weakness, and a global recession was looming. US retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month. Investors awaited further news on the US-China trade front. US Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month. Elsewhere, a European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to seal a deal on Britain's exit from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the EU budget. Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal. Indicative of sentiment, SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent to 918.19 tonnes on Wednesday from 919.66 tonnes on Tuesday. Palladium rose 0.2 per cent to $1,770.54 an ounce on Thursday after notching a fresh high of $1,779.23 on Wednesday.

Gold steady as disappointing US retail sales weigh on risk appetite

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">health of the economy</a> in the run-up to Brexit.

Consumer spending has been the biggest driver of British economic growth since June 2016's referendum to leave the European Union, but there have been increasing signs that this is starting to soften.

Looking at the third quarter as a whole, which strips out monthly volatility, quarterly sales growth held steady at 0.6 per cent&nbsp;while the annual pace of expansion dropped to 3.1 per cent&nbsp;from 3.6 per cent&nbsp;in the second quarter, the weakest since the late 2018.

Stripping out inflation adjustments, growth in retail spending was the weakest in more than three years.

Sterling showed little reaction to the data, with markets focused on whether Prime Minister Boris Johnson can broker a<a href="https://www.wionews.com/world/uks-johnson-says-great-new-deal-reached-on-brexit-256464"> Brexit deal</a> that is acceptable both to Brussels and Britain's parliament before the country is due to leave on October&nbsp;31.

"September's retail sales figures were perhaps a bit of a relief given the intense Brexit uncertainty, but were hardly a picture of strength," economist Ruth Gregory of consultancy Capital Economics said.

Monthly retail sales volumes were flat in September and annual sales growth picked up to 3.1 per cent&nbsp;from a weak 2.6 per cent&nbsp;in August, the Office for National Statistics said - slightly less of a recovery than economists had forecast in a Reuters poll.

"Food shops bounced back after a weak few months, but there was yet more bad news for department stores, with sales continuing to fall in September," ONS statistician Rhian Murphy said.

Some retailers said unusually rainy weather had hurt demand too, the ONS added.

Sales in the 'non-specialised stores' category - which includes department stores - dropped by an annual 2.0 per cent&nbsp;in the third quarter, the biggest decline since the first three months of 2009 when Britain was mired in recession.

At the start of this month, major retailer John Lewis Partnership said it would cut a third of senior managers and merge its supermarket and department store divisions to better tackle challenges from online stores.

The lacklustre ONS figures are less bleak than a British Retail Consortium survey that showed the biggest fall in retail spending of any September since at least the mid-1990s.

In recent months, surveys by the BRC and Confederation of British Industry have painted a weaker picture of the retail sector than subsequent official data - in part due to the former focusing more on large high-street chains.

The ONS data has a broader sample that includes more online and small retailers, and its measure of retail spending showed annual growth slowing to 3.5 per cent&nbsp;in the third quarter from 4.1 per cent&nbsp;in the second quarter, the weakest since the second quarter of 2016.

Until recently consumers appeared to have largely taken Brexit in their stride, helped by weaker inflation and stronger growth in wages which are rising at the fastest pace in more than a decade.

That has aided the world's fifth-biggest economy at a time when many companies have been cutting back on investment because of uncertainty about Brexit.

A separate Bank of England survey on Thursday showed British lenders expect business loans will dry up in the next few months at the fastest rate since the financial crisis, boding poorly for investment as Brexit nears.

There have also been signs that consumers are turning more cautious as Britain's political crisis drags on.

Several British retailers, including supermarkets Asda and Morrisons&nbsp;and home improvement group Kingfisher, have highlighted the drag of Brexit uncertainty on bigger purchases.

But clothing retailer Next&nbsp;attributed a disappointing start to autumn trading to unusually warm weather in parts of Britain, rather than shoppers holding back on buying new items because of Brexit.

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the health of the economy in the run-up to Brexit.

British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the health of the economy in the run-up to Brexit. Consumer spending has been the biggest driver of British economic growth since June 2016's referendum to leave the European Union, but there have been increasing signs that this is starting to soften. Looking at the third quarter as a whole, which strips out monthly volatility, quarterly sales growth held steady at 0.6 per cent while the annual pace of expansion dropped to 3.1 per cent from 3.6 per cent in the second quarter, the weakest since the late 2018. Stripping out inflation adjustments, growth in retail spending was the weakest in more than three years. Sterling showed little reaction to the data, with markets focused on whether Prime Minister Boris Johnson can broker a Brexit deal that is acceptable both to Brussels and Britain's parliament before the country is due to leave on October 31. "September's retail sales figures were perhaps a bit of a relief given the intense Brexit uncertainty, but were hardly a picture of strength," economist Ruth Gregory of consultancy Capital Economics said. Monthly retail sales volumes were flat in September and annual sales growth picked up to 3.1 per cent from a weak 2.6 per cent in August, the Office for National Statistics said - slightly less of a recovery than economists had forecast in a Reuters poll. "Food shops bounced back after a weak few months, but there was yet more bad news for department stores, with sales continuing to fall in September," ONS statistician Rhian Murphy said. Some retailers said unusually rainy weather had hurt demand too, the ONS added. Sales in the 'non-specialised stores' category - which includes department stores - dropped by an annual 2.0 per cent in the third quarter, the biggest decline since the first three months of 2009 when Britain was mired in recession. At the start of this month, major retailer John Lewis Partnership said it would cut a third of senior managers and merge its supermarket and department store divisions to better tackle challenges from online stores. The lacklustre ONS figures are less bleak than a British Retail Consortium survey that showed the biggest fall in retail spending of any September since at least the mid-1990s. In recent months, surveys by the BRC and Confederation of British Industry have painted a weaker picture of the retail sector than subsequent official data - in part due to the former focusing more on large high-street chains. The ONS data has a broader sample that includes more online and small retailers, and its measure of retail spending showed annual growth slowing to 3.5 per cent in the third quarter from 4.1 per cent in the second quarter, the weakest since the second quarter of 2016. Until recently consumers appeared to have largely taken Brexit in their stride, helped by weaker inflation and stronger growth in wages which are rising at the fastest pace in more than a decade. That has aided the world's fifth-biggest economy at a time when many companies have been cutting back on investment because of uncertainty about Brexit. A separate Bank of England survey on Thursday showed British lenders expect business loans will dry up in the next few months at the fastest rate since the financial crisis, boding poorly for investment as Brexit nears. There have also been signs that consumers are turning more cautious as Britain's political crisis drags on. Several British retailers, including supermarkets Asda and Morrisons and home improvement group Kingfisher, have highlighted the drag of Brexit uncertainty on bigger purchases. But clothing retailer Next attributed a disappointing start to autumn trading to unusually warm weather in parts of Britain, rather than shoppers holding back on buying new items because of Brexit.

United Kingdom retail sales growth softens as department stores disappoint

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit.

"As things stand, we could not support what is being suggested on customs and consent issues, and there is a lack of clarity on VAT (value-added tax)," the DUP, which backs Johnson's government, said in a brief statement on Twitter.

"We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom."

The statement was seen as a major setback for Johnson, who would most likely need the support of his DUP allies in parliament for any deal agreed in Brussels.

It came as British and EU negotiators worked late into the night in the hopes of presenting a<a href="https://www.wionews.com/world/brexit-deal-at-hand-in-brussels-boris-johnson-struggles-to-win-support-at-home-256400"> last-minute Brexit deal</a> to leaders meeting for a European summit.

Both sides said they were close to finding a basis for a treaty to ensure Britain heads for a managed withdrawal from the European bloc it has been part of for nearly half a century.

But officials had to iron out details on how Northern Ireland, which is part of the UK, would remain under the European scheme for sales tax.

The pound fell 0.5 per cent against the dollar and the euro within minutes of the announcement. A pound was worth 1.2759 dollars and 1.1525 euros.

Housing Secretary Robert Jenrick told BBC television: "We always knew these negotiations were going to be difficult and we're going to go down to the line."

Asked whether Johnson would meet the DUP again on Thursday, Jenrick said: "The prime minister and his team are in intensive negotiations with all parties, including with the DUP.

"We want to provide sufficient comfort for the DUP and unionists in Northern Ireland to feel that the arrangements we would put in place with this deal are sufficient to give them comfort to support it."

British politics expert Professor Tim Bale, deputy director of The UK in a Changing Europe think-tank, said the DUP would struggle with any deal that created new divisions between the province and the rest of the UK -- the antithesis of Northern Irish unionism.

"It would be seen by some on their side as representing a surrender," he said.

"They would have to explain what on Earth the last two years have been about if they were to fold."

Johnson's governing Conservatives relied on the DUP's support for a majority in parliament before a series of expulsions from the Conservative ranks last month left the government well short of a majority, even with the DUP's support.

Mairead McGuinness, first vice president of the European Parliament, from Ireland's governing Fine Gael party, told BBC radio: "Whatever optimism we had last night has been dampened a little.

"It would be quite concerning if one political party can delay everything or have a veto over everything. The numbers in the House of Commons are very tight.

"It is of concern that one party is holding this up."

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit.

Northern Ireland's Democratic Unionist Party announced Thursday it cannot support Boris Johnson's current Brexit plan, dealing a major blow to the British prime minister just hours before a crunch EU summit. "As things stand, we could not support what is being suggested on customs and consent issues, and there is a lack of clarity on VAT (value-added tax)," the DUP, which backs Johnson's government, said in a brief statement on Twitter. "We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom." The statement was seen as a major setback for Johnson, who would most likely need the support of his DUP allies in parliament for any deal agreed in Brussels. It came as British and EU negotiators worked late into the night in the hopes of presenting a last-minute Brexit deal to leaders meeting for a European summit. Both sides said they were close to finding a basis for a treaty to ensure Britain heads for a managed withdrawal from the European bloc it has been part of for nearly half a century. But officials had to iron out details on how Northern Ireland, which is part of the UK, would remain under the European scheme for sales tax. The pound fell 0.5 per cent against the dollar and the euro within minutes of the announcement. A pound was worth 1.2759 dollars and 1.1525 euros. Housing Secretary Robert Jenrick told BBC television: "We always knew these negotiations were going to be difficult and we're going to go down to the line." Asked whether Johnson would meet the DUP again on Thursday, Jenrick said: "The prime minister and his team are in intensive negotiations with all parties, including with the DUP. "We want to provide sufficient comfort for the DUP and unionists in Northern Ireland to feel that the arrangements we would put in place with this deal are sufficient to give them comfort to support it." British politics expert Professor Tim Bale, deputy director of The UK in a Changing Europe think-tank, said the DUP would struggle with any deal that created new divisions between the province and the rest of the UK -- the antithesis of Northern Irish unionism. "It would be seen by some on their side as representing a surrender," he said. "They would have to explain what on Earth the last two years have been about if they were to fold." Johnson's governing Conservatives relied on the DUP's support for a majority in parliament before a series of expulsions from the Conservative ranks last month left the government well short of a majority, even with the DUP's support. Mairead McGuinness, first vice president of the European Parliament, from Ireland's governing Fine Gael party, told BBC radio: "Whatever optimism we had last night has been dampened a little. "It would be quite concerning if one political party can delay everything or have a veto over everything. The numbers in the House of Commons are very tight. "It is of concern that one party is holding this up."

Northern Ireland's Democratic Unionist Party oppose United Kingdom government's Brexit plan

British Prime Minister Boris Johnson met with European Parliament President David Sassoli in London on Tuesday, as both the UK and the EU position themselves to avoid blame for a delay or a disorderly no-deal Brexit.

UK PM Johnson meets EU parliament president as Brexit looks uncertain

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank.

The divergence between the headline and core figures underlines the split of opinion over the state of the eurozone economy among the governors of the ECB. It wants to keep inflation below, but close to 2 per cent over the medium term but has so far failed to boost price growth despite years of unconventional steps.

Eurostat said on Tuesday that consumer prices in the 19 countries sharing the euro rose 0.2 per cent month-on-month in September for a 0.9 per cent year-on-year gain. Economists polled by Reuters had expected an unchanged reading of 1.0 per cent.

The weaker than expected September number, the lowest year-on-year figure since November 2016, was mainly due to a 1.8 per cent year-on-year fall in energy prices.

Excluding energy and equally volatile unprocessed food, price growth accelerated to 1.2 per cent in September from 1.1 per cent in August. This number is called core inflation by the ECB which it monitors for monetary policy decisions,

An even more narrowly defined core inflation measure, which excludes energy, food, alcohol, and tobacco and looked at by many market economists, also accelerated to 1.0 per cent from 0.9 per cent year-on-year.

"It should continue to rise slightly in the coming months. However, the strong increase in underlying inflation hoped for by the ECB is still not in sight," said Christoph Weil, economist at Commerzbank.

The ECB decided on September 12 to resume asset purchases to inject more money into the slowing economy and in this way make prices grow more quickly.

But the decision was opposed by a third of ECB policymakers, including Germany's Sabine Lautenschlaeger who resigned before the end of her term last week.

ECB chief economist Philip Lane said last week the division was due to "ambiguity" over the state of the eurozone economy among ECB governors.

"We expect the central bank to take time to assess the impact of last month's easing package before taking further action," a team of Morgan Stanley economists said in a note.

They saw only a minimal boost to the economy even once quantitative easing restarted in November, with inflation remaining subdued. There were also a variety of downside risks to growth.

"With fiscal policy remaining reactive for now, we expect the ECB to take further action. Our base case is for another 10 bp cut in March, though the timing remains rather uncertain at this stage," the Morgan Stanley note said.

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank.

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank. The divergence between the headline and core figures underlines the split of opinion over the state of the eurozone economy among the governors of the ECB. It wants to keep inflation below, but close to 2 per cent over the medium term but has so far failed to boost price growth despite years of unconventional steps. Eurostat said on Tuesday that consumer prices in the 19 countries sharing the euro rose 0.2 per cent month-on-month in September for a 0.9 per cent year-on-year gain. Economists polled by Reuters had expected an unchanged reading of 1.0 per cent. The weaker than expected September number, the lowest year-on-year figure since November 2016, was mainly due to a 1.8 per cent year-on-year fall in energy prices. Excluding energy and equally volatile unprocessed food, price growth accelerated to 1.2 per cent in September from 1.1 per cent in August. This number is called core inflation by the ECB which it monitors for monetary policy decisions, An even more narrowly defined core inflation measure, which excludes energy, food, alcohol, and tobacco and looked at by many market economists, also accelerated to 1.0 per cent from 0.9 per cent year-on-year. "It should continue to rise slightly in the coming months. However, the strong increase in underlying inflation hoped for by the ECB is still not in sight," said Christoph Weil, economist at Commerzbank. The ECB decided on September 12 to resume asset purchases to inject more money into the slowing economy and in this way make prices grow more quickly. But the decision was opposed by a third of ECB policymakers, including Germany's Sabine Lautenschlaeger who resigned before the end of her term last week. ECB chief economist Philip Lane said last week the division was due to "ambiguity" over the state of the eurozone economy among ECB governors. "We expect the central bank to take time to assess the impact of last month's easing package before taking further action," a team of Morgan Stanley economists said in a note. They saw only a minimal boost to the economy even once quantitative easing restarted in November, with inflation remaining subdued. There were also a variety of downside risks to growth. "With fiscal policy remaining reactive for now, we expect the ECB to take further action. Our base case is for another 10 bp cut in March, though the timing remains rather uncertain at this stage," the Morgan Stanley note said.

Euro zone inflation slows to three-year low on cheaper energy

The European Union (EU) is ready to hit the <a href="https://www.wionews.com/business-economy/huawei-first-half-revenue-up-about-30-despite-us-ban-237956">United States with extra tariffs</a> on goods worth 35 billion euros if Washington slaps duties on its cars, its trade chief said Tuesday.

The warning by EU Trade Commissioner Cecilia Malmstrom came as she said a plan by Europe and the United States to reach a limited trade deal was at a standstill.

Malmstrom's stark statement to newly elected MEPs in Brussels was a reminder that transatlantic tensions remained high despite Washington's trade war with China dominating attention.&nbsp;

"We will not accept any managed trade, quotas or voluntary export restraints and, if there were to be tariffs, we would have a rebalancing list," Malmstrom told a committee meeting in European Parliament.

"It is already basically prepared worth 35 billion euros. I hope we don't have to use that one," she said.

US President Donald Trump is still considering imposing punishing duties on automobile imports on national security grounds -- a justification that Malmstrom said was wildly unfounded.

"We welcome the decision by the <a href="https://www.wionews.com/world/us-sanctions-against-oil-companies-illegal-china-237917">US not to impose yet duties</a> on cars and car parts," she said.&nbsp;

"But of course the very notion that European cars can be a national security threat to the US is, of course, absurd," she added.

The comments were made almost a year to the day after European Commission chief Jean-Claude Juncker and Trump thrashed out a trade truce in the White House.

This followed a bitter round of tit-for-tat tariffs, that remain in place, after the US sparked the row by imposing tariffs on steel and aluminium from Europe.

Negotiating a limited trade deal was the heart of the truce, but Malmstrom said the US was unwilling to move forward with talks.

"The United States are not ready to start them if agriculture is not included which is a red line for us," she said.

"So for the moment nothing happens here," she said.

The European Union (EU) is ready to hit the United States with extra tariffs on goods worth 35 billion euros if Washington slaps duties on its cars, its trade chief said Tuesday.

The European Union (EU) is ready to hit the United States with extra tariffs on goods worth 35 billion euros if Washington slaps duties on its cars, its trade chief said Tuesday. The warning by EU Trade Commissioner Cecilia Malmstrom came as she said a plan by Europe and the United States to reach a limited trade deal was at a standstill. Malmstrom's stark statement to newly elected MEPs in Brussels was a reminder that transatlantic tensions remained high despite Washington's trade war with China dominating attention. "We will not accept any managed trade, quotas or voluntary export restraints and, if there were to be tariffs, we would have a rebalancing list," Malmstrom told a committee meeting in European Parliament. "It is already basically prepared worth 35 billion euros. I hope we don't have to use that one," she said. US President Donald Trump is still considering imposing punishing duties on automobile imports on national security grounds -- a justification that Malmstrom said was wildly unfounded. "We welcome the decision by the US not to impose yet duties on cars and car parts," she said. "But of course the very notion that European cars can be a national security threat to the US is, of course, absurd," she added. The comments were made almost a year to the day after European Commission chief Jean-Claude Juncker and Trump thrashed out a trade truce in the White House. This followed a bitter round of tit-for-tat tariffs, that remain in place, after the US sparked the row by imposing tariffs on steel and aluminium from Europe. Negotiating a limited trade deal was the heart of the truce, but Malmstrom said the US was unwilling to move forward with talks. "The United States are not ready to start them if agriculture is not included which is a red line for us," she said. "So for the moment nothing happens here," she said.

European Union threatens duties on 35 billion euros in US goods

The European Union's (EU) powerful antitrust authority launched an in-depth <a href="https://www.wionews.com/world/amazon-workers-in-germany-strike-over-pay-verdi-union-says-236173">investigation into Amazon</a> on Wednesday, amid suspicions the US-based online behemoth misuses merchant data hosted on its website.

The formal investigation opens a new chapter in the European Union's campaign to curtail the dominance of US tech firms with Google, Facebook and Apple also regular targets of regulators in Brussels.

"I have... decided to take a very close look at <a href="https://www.wionews.com/world/amazon-warehouse-workers-in-minnesota-set-walkout-on-prime-day-234450">Amazon's business practices</a> and its dual role as marketplace and retailer (and) to assess its compliance with EU competition rules," the EU's antitrust commissioner Margrethe Vestager said in a statement.

At the heart of the case is Amazon's service to third party merchants who use the world's biggest online retailer to access customers and broaden their reach.

In providing this service, Amazon "continuously collects data about the activity on its platform", the commission said.

Preliminary findings, according to the statement, indicate that Amazon "appears to use competitively sensitive information -- about marketplace sellers, their products and transactions on the marketplace."&nbsp;

The investigation, which has no deadline, is likely to be the final offensive by Vestager against big tech before the end of her current mandate on October 31.

In an email to AFP, Amazon said: "We will cooperate fully with the European Commission and continue working hard to support businesses of all sizes and help them grow."

In some areas, insurgents and religious leaders tell communities that vaccines are a Western conspiracy aiming to sterilise Muslim children, or that such programmes are an elaborate cover for Western or Afghan government spies.

Last year, the Taliban warned the International Committee of the Red Cross (ICRC) that the group would no longer protect its workers.

The threat forced the ICRC to significantly scale back its Afghan operations.

The European Union's (EU) powerful antitrust authority launched an in-depth investigation into Amazon on Wednesday, amid suspicions the US-based online behemoth misuses merchant data hosted on its website.

The European Union's (EU) powerful antitrust authority launched an in-depth investigation into Amazon on Wednesday, amid suspicions the US-based online behemoth misuses merchant data hosted on its website. The formal investigation opens a new chapter in the European Union's campaign to curtail the dominance of US tech firms with Google, Facebook and Apple also regular targets of regulators in Brussels. "I have... decided to take a very close look at Amazon's business practices and its dual role as marketplace and retailer (and) to assess its compliance with EU competition rules," the EU's antitrust commissioner Margrethe Vestager said in a statement. At the heart of the case is Amazon's service to third party merchants who use the world's biggest online retailer to access customers and broaden their reach. In providing this service, Amazon "continuously collects data about the activity on its platform", the commission said. Preliminary findings, according to the statement, indicate that Amazon "appears to use competitively sensitive information -- about marketplace sellers, their products and transactions on the marketplace." The investigation, which has no deadline, is likely to be the final offensive by Vestager against big tech before the end of her current mandate on October 31. In an email to AFP, Amazon said: "We will cooperate fully with the European Commission and continue working hard to support businesses of all sizes and help them grow." In some areas, insurgents and religious leaders tell communities that vaccines are a Western conspiracy aiming to sterilise Muslim children, or that such programmes are an elaborate cover for Western or Afghan government spies. Last year, the Taliban warned the International Committee of the Red Cross (ICRC) that the group would no longer protect its workers. The threat forced the ICRC to significantly scale back its Afghan operations.

European Union launches probe into Amazon's use of merchant data

The remaining parties to the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/us-grants-visa-to-irans-javad-zarif-for-united-nation-meeting-this-week-sources-236046&amp;sa=U&amp;ved=2ahUKEwi1ocnt-rjjAhVT-WEKHf-gCNAQFjAGegQIARAC&amp;usg=AOvVaw0XnDcqJYQmlBGDMAurg3Hn">Iran nuclear deal</a> do not see Tehran's breaches as significant and do not intend for now to trigger the pact's dispute mechanism, preferring more diplomacy to ease the crisis, the EU foreign policy chief said on Monday.

She spoke at the end of a European Union foreign ministers meeting after Britain said there was only a "small window" of time to salvage the deal, while Iran warned it would ramp up uranium enrichment if the EU failed to do more to that end.

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/videos/iran-hits-out-at-us-in-iaea-meet-234819&amp;sa=U&amp;ved=2ahUKEwjepLeD_LjjAhXXBIgKHbVUAt04MhAWMAR6BAgDEAI&amp;usg=AOvVaw1PH9R6SLIOtEtvmC-3HUS5">US-Iranian tensions</a> have escalated since US President Donald Trump decided last year to abandon the nuclear deal under which Iran agreed to curtail its atomic program in return for relief from economic sanctions crippling its economy.

The EU ministers drew no conclusions on what action should next be taken to head off a feared US-Iranian conflict. But by suggesting that Iran's non-compliance was not significant, it could anger the United States, which last week warned it would intensify sanctions on Iran over its breaches, and it did prompt an immediate outcry from Israel, Iran's regional arch-enemy.

"For the time being, none of the parties to the agreement has signalled their intention to invoke this article," EU foreign policy chief Federica Mogherini told a news conference in Brussels, referring to a mechanism to punish non-compliance.

"(It) means that none of them for the moment, for the time being with the current data we have had in particular from the (UN nuclear watchdog) IAEA, (consider Iran's) non-compliance...to be significant non-compliance."

Nuclear breches

IAEA inspectors last week confirmed Iran is now enriching uranium to 4.5% fissile purity, above the 3.67% limit set by its deal, the second breach in as many weeks after Tehran exceeded limits on its stock of low enriched uranium.

The level at which Iran is now refining uranium is still well below the 20% purity of enrichment Iran reached before the deal, and the 90% needed to yield bomb-grade nuclear fuel. Low-enriched uranium provides fuel for civilian power plants.

British Foreign Secretary Jeremy Hunt said earlier in the day that Iran remained "a good year away from developing a nuclear bomb". He told reporters in Brussels: "There is still some closing, but a small window to keep the deal alive."

Under the terms of the deal, if any party believes another is not upholding their commitments they can refer the issue to a Joint Commission comprising Iran, Russia, China, the three European powers, and the European Union.

This activates a dispute mechanism that could eventually end with a restoration of global, UN sanctions against Iran. Mogherini said a joint commission meeting was possible, although when and at what level had yet to be decided.

She indicated that for now the EU would focus on diplomatic efforts to save the nuclear deal, which signatories in 2015 touted as essential to ward off the risk of a wider Middle East war jeopardising global energy supplies.

"The deal is not in good health, but it's still alive. We hope and we invite Iran to reverse these steps and go back to full compliance with the agreement," Mogherini, adding that they were all reversible.

'Appeasement'

Israeli Prime Minister Benjamin Netanyahu condemned the EU's response on Monday, saying it recalled failed diplomacy with Nazi Germany in the run-up to World War Two.

"(It) reminds me of the European appeasement of the 1930s," Netanyahu said in a video statement.

"Then, too, there were those who stuck their head in the sand and did not see the approaching danger," said Netanyahu, who has often cast Iran's nuclear projects as a mortal menace to Israel and the wider world. Iran denies seeking a nuclear bomb.

The Brussels gathering had been called to flesh out ways of convincing Iran and the United States to reduce tensions and start a dialogue amid fears the 2015 deal is close to collapse.

Fears of direct US.-Iranian conflict have risen since May with several attacks on oil tankers in the Gulf, Iran's downing of a US surveillance drone, and a plan for US air strikes on Iran last month that Trump called off at the last minute.

In reaction to the reimposition of tough US sanctions, which have notably targeted Iran's vital oil revenue stream, Tehran has cut some of its nuclear commitments under the deal.

That led the European parties to the pact, France, Britain and Germany, to warn Tehran not to shred the deal's terms.

Swedish Foreign Minister Margot Wallstrom suggested the Europeans would leave the door open for diplomacy but that Tehran should exercise restraint.

"It improves their chances of having a good discussion with the EU and other partners in the JCPOA (Iran deal)," she told reporters. "We encourage them to use all diplomatic means and create new diplomatic channels ...to de-escalate the tense situation. We have to use every opportunity to keep the deal."

The Islamic Republic's nuclear energy agency said Tehran would return to the situation before the nuclear deal unless European countries fulfilled their obligations.

"These actions are not taken out of stubbornness but to give diplomacy a chance," agency spokesman Behrouz Kamalvandi said.

"And if the Europeans and America don't want to fulfil their commitments we will create a balance in this deal by reducing commitments and return the situation to four years ago."

Iran says the European countries must do more to guarantee it the trade and investment dividends it was due to receive in return for UN-monitored limits to its nuclear capacity under the deal.

Trade mechanism

The Europeans are also trying to set up Instex, a barter-based trade conduit with Iran, but an equivalent Iranian mechanism has yet to start. Should the mechanism go ahead it would initially only deal in products such as pharmaceuticals and foods, which are not subject to US sanctions.

Mogherini also said the shareholders of Instex, which now includes 10 EU members, were considering whether to include oil, something that until now has been ruled out given the threat of US blowback.

Iran has said Instex must include oil sales or provide substantial credit facilities for it to be beneficial.

The remaining parties to the Iran nuclear deal do not see Tehran's breaches as significant and do not intend for now to trigger the pact's dispute mechanism, preferring more diplomacy to ease the crisis, the EU foreign policy chief said on Monday.

The remaining parties to the Iran nuclear deal do not see Tehran's breaches as significant and do not intend for now to trigger the pact's dispute mechanism, preferring more diplomacy to ease the crisis, the EU foreign policy chief said on Monday. She spoke at the end of a European Union foreign ministers meeting after Britain said there was only a "small window" of time to salvage the deal, while Iran warned it would ramp up uranium enrichment if the EU failed to do more to that end. US-Iranian tensions have escalated since US President Donald Trump decided last year to abandon the nuclear deal under which Iran agreed to curtail its atomic program in return for relief from economic sanctions crippling its economy. The EU ministers drew no conclusions on what action should next be taken to head off a feared US-Iranian conflict. But by suggesting that Iran's non-compliance was not significant, it could anger the United States, which last week warned it would intensify sanctions on Iran over its breaches, and it did prompt an immediate outcry from Israel, Iran's regional arch-enemy. "For the time being, none of the parties to the agreement has signalled their intention to invoke this article," EU foreign policy chief Federica Mogherini told a news conference in Brussels, referring to a mechanism to punish non-compliance. "(It) means that none of them for the moment, for the time being with the current data we have had in particular from the (UN nuclear watchdog) IAEA, (consider Iran's) non-compliance...to be significant non-compliance." Nuclear breches IAEA inspectors last week confirmed Iran is now enriching uranium to 4.5% fissile purity, above the 3.67% limit set by its deal, the second breach in as many weeks after Tehran exceeded limits on its stock of low enriched uranium. The level at which Iran is now refining uranium is still well below the 20% purity of enrichment Iran reached before the deal, and the 90% needed to yield bomb-grade nuclear fuel. Low-enriched uranium provides fuel for civilian power plants. British Foreign Secretary Jeremy Hunt said earlier in the day that Iran remained "a good year away from developing a nuclear bomb". He told reporters in Brussels: "There is still some closing, but a small window to keep the deal alive." Under the terms of the deal, if any party believes another is not upholding their commitments they can refer the issue to a Joint Commission comprising Iran, Russia, China, the three European powers, and the European Union. This activates a dispute mechanism that could eventually end with a restoration of global, UN sanctions against Iran. Mogherini said a joint commission meeting was possible, although when and at what level had yet to be decided. She indicated that for now the EU would focus on diplomatic efforts to save the nuclear deal, which signatories in 2015 touted as essential to ward off the risk of a wider Middle East war jeopardising global energy supplies. "The deal is not in good health, but it's still alive. We hope and we invite Iran to reverse these steps and go back to full compliance with the agreement," Mogherini, adding that they were all reversible. 'Appeasement' Israeli Prime Minister Benjamin Netanyahu condemned the EU's response on Monday, saying it recalled failed diplomacy with Nazi Germany in the run-up to World War Two. "(It) reminds me of the European appeasement of the 1930s," Netanyahu said in a video statement. "Then, too, there were those who stuck their head in the sand and did not see the approaching danger," said Netanyahu, who has often cast Iran's nuclear projects as a mortal menace to Israel and the wider world. Iran denies seeking a nuclear bomb. The Brussels gathering had been called to flesh out ways of convincing Iran and the United States to reduce tensions and start a dialogue amid fears the 2015 deal is close to collapse. Fears of direct US.-Iranian conflict have risen since May with several attacks on oil tankers in the Gulf, Iran's downing of a US surveillance drone, and a plan for US air strikes on Iran last month that Trump called off at the last minute. In reaction to the reimposition of tough US sanctions, which have notably targeted Iran's vital oil revenue stream, Tehran has cut some of its nuclear commitments under the deal. That led the European parties to the pact, France, Britain and Germany, to warn Tehran not to shred the deal's terms. Swedish Foreign Minister Margot Wallstrom suggested the Europeans would leave the door open for diplomacy but that Tehran should exercise restraint. "It improves their chances of having a good discussion with the EU and other partners in the JCPOA (Iran deal)," she told reporters. "We encourage them to use all diplomatic means and create new diplomatic channels ...to de-escalate the tense situation. We have to use every opportunity to keep the deal." The Islamic Republic's nuclear energy agency said Tehran would return to the situation before the nuclear deal unless European countries fulfilled their obligations. "These actions are not taken out of stubbornness but to give diplomacy a chance," agency spokesman Behrouz Kamalvandi said. "And if the Europeans and America don't want to fulfil their commitments we will create a balance in this deal by reducing commitments and return the situation to four years ago." Iran says the European countries must do more to guarantee it the trade and investment dividends it was due to receive in return for UN-monitored limits to its nuclear capacity under the deal. Trade mechanism The Europeans are also trying to set up Instex, a barter-based trade conduit with Iran, but an equivalent Iranian mechanism has yet to start. Should the mechanism go ahead it would initially only deal in products such as pharmaceuticals and foods, which are not subject to US sanctions. Mogherini also said the shareholders of Instex, which now includes 10 EU members, were considering whether to include oil, something that until now has been ruled out given the threat of US blowback. Iran has said Instex must include oil sales or provide substantial credit facilities for it to be beneficial.

Nuclear deal parties not ready to launch dispute mechanism against Iran, prefer more diplomacy: European Union

Home-made explosives found on the day the Tour de France was launched in <a href="https://www.wionews.com/world/european-union-building-in-brussels-evacuated-over-bomb-threat-204327">Brussels</a> belonged to an "unstable" former Russian soldier who died in 2011, prosecutors said Thursday.

A worker found a stash of weapons Saturday in the step of a stairway of a building near where cyclists raced.

"The bag containing explosives, knives, and brass knuckles belonged to a man, G.A., a former Russian soldier who was born in 1965 and died in 2011," the Brussels prosecutor's office said.

It said the stash was found in the first step of the stairway leading to the landing where the Russian's apartment was located in the Anderlecht neighborhood.

The building's owner told investigators that the Russian was known to possess knives in the 2000s and was "mentally unstable and inclined to paranoia," the prosecutors said.

Fingerprints of the man, who was only identified by his initials, were also found on the cellophane tape covering one of the knives, they added.

The prosecutor's office said it intended to close the case given that the man died in 2011.&nbsp;

It added there was no link to the "festive events" at the weekend or to the country's terrorism cases. &nbsp;

Belgium has been hit by several Islamist extremist attacks, the worst being suicide bombings on March 22, 2016, at Brussels airport and a city metro station that killed 32 people and wounded hundreds of others.

Security was high for the Tour de France, an epic three-week cycling competition around France, which was launched from the cobbled streets of Brussels on Saturday.

Home-made explosives found on the day the Tour de France was launched in Brussels belonged to an "unstable" former Russian soldier who died in 2011, prosecutors said Thursday.

Home-made explosives found on the day the Tour de France was launched in Brussels belonged to an "unstable" former Russian soldier who died in 2011, prosecutors said Thursday. A worker found a stash of weapons Saturday in the step of a stairway of a building near where cyclists raced. "The bag containing explosives, knives, and brass knuckles belonged to a man, G.A., a former Russian soldier who was born in 1965 and died in 2011," the Brussels prosecutor's office said. It said the stash was found in the first step of the stairway leading to the landing where the Russian's apartment was located in the Anderlecht neighborhood. The building's owner told investigators that the Russian was known to possess knives in the 2000s and was "mentally unstable and inclined to paranoia," the prosecutors said. Fingerprints of the man, who was only identified by his initials, were also found on the cellophane tape covering one of the knives, they added. The prosecutor's office said it intended to close the case given that the man died in 2011. It added there was no link to the "festive events" at the weekend or to the country's terrorism cases. Belgium has been hit by several Islamist extremist attacks, the worst being suicide bombings on March 22, 2016, at Brussels airport and a city metro station that killed 32 people and wounded hundreds of others. Security was high for the Tour de France, an epic three-week cycling competition around France, which was launched from the cobbled streets of Brussels on Saturday.

Explosives found in Brussels belonged to ex-Russian soldier: Official

<a href="https://www.wionews.com/world/belgian-police-arrests-man-suspected-of-plotting-attack-on-us-embassy-in-brussels-230066">Belgian police are investigating</a> the discovery of home-made explosives, knives and brass knuckles, but nothing immediately points to an attack plot, including against the Tour de France, prosecutors said Monday.

A worker found the arms on Saturday evening hidden by a stairway of a building in Anderlecht, a neighbourhood of the capital Brussels through which the tournament's cyclists raced at the weekend.

"At the current time, nothing suggests that these are explosives designed to commit a future attack," the Brussels prosecutor's office said in a statement.

"Nothing allows us to say that the Tour was being targeted," prosecutor's spokesman Denis Goeman told AFP.&nbsp;

"The theory of the discovery of an old cache of explosives is also being looked at," the prosecutor's office added.

The statement said investigators were alerted to a bag containing explosives, knives and brass knuckles at around 7:30 pm (5:30 pm) on Saturday.&nbsp;

Upon examination, the office said, they amounted to several "home-made" type explosives. No suspect has been identified in the case and an investigation continues, it added.

Belgium has been hit by a number of Islamist attacks, the worst being suicide bombings on March 22, 2016 at Brussels airport and a city metro station that killed 32 people and wounded hundreds of others.

Security was high for the Tour de France, an epic three-week cycling competition around France, which was launched from the cobbled streets of a festive Brussels on Saturday.

Belgian police are investigating the discovery of home-made explosives, knives and brass knuckles, but nothing immediately points to an attack plot, including against the Tour de France, prosecutors said Monday.

Belgian police are investigating the discovery of home-made explosives, knives and brass knuckles, but nothing immediately points to an attack plot, including against the Tour de France, prosecutors said Monday. A worker found the arms on Saturday evening hidden by a stairway of a building in Anderlecht, a neighbourhood of the capital Brussels through which the tournament's cyclists raced at the weekend. "At the current time, nothing suggests that these are explosives designed to commit a future attack," the Brussels prosecutor's office said in a statement. "Nothing allows us to say that the Tour was being targeted," prosecutor's spokesman Denis Goeman told AFP. "The theory of the discovery of an old cache of explosives is also being looked at," the prosecutor's office added. The statement said investigators were alerted to a bag containing explosives, knives and brass knuckles at around 7:30 pm (5:30 pm) on Saturday. Upon examination, the office said, they amounted to several "home-made" type explosives. No suspect has been identified in the case and an investigation continues, it added. Belgium has been hit by a number of Islamist attacks, the worst being suicide bombings on March 22, 2016 at Brussels airport and a city metro station that killed 32 people and wounded hundreds of others. Security was high for the Tour de France, an epic three-week cycling competition around France, which was launched from the cobbled streets of a festive Brussels on Saturday.

Explosives found in Brussels, no sign Tour de France targeted: Prosecutors

Pakistan will insist on proper labour rights for an army of its citizens working on <a href="https://www.wionews.com/sports/fifa-to-stick-with-32-teams-for-2022-football-world-cup-in-qatar-220740">Qatar's football World Cup</a> infrastructure, the country's foreign minister said Monday, after repeated reports of abuses.

The gas-rich Gulf state has embarked on a huge construction programme to get ready for the 2022 tournament, drawing intense scrutiny from rights and labour campaigners.

Earlier this year Amnesty International warned that despite "nascent reforms", Qatar was running out of time to stamp out widespread and serious exploitation of tens of thousands of migrant labourers, many of them from South Asia.

There have been reports of wages going unpaid, passports being held by unscrupulous bosses and some labourers working up to 148 days in a row.

<a href="https://www.wionews.com/south-asia/pakistan-ready-to-hold-talks-with-new-indian-government-shah-mahmood-qureshi-221736">Pakistani Foreign Minister Shah Mehmood Qureshi</a> welcomed Qatari plans to offer his countrymen up to 100,000 work permits but insisted World Cup workers' rights must be respected.

"Certainly we will ask our embassy and we will ask the recruiting agencies to give better terms," he told AFP during a visit to Brussels.&nbsp;

"Where we feel Pakistani labour is contributing, we feel they should be looked after as well." Qatar insists it is committed to labour reform.

Since it was chosen as World Cup host it has introduced a monthly minimum wage of 750 riyals ($206) and partially scrapped the exit visa system which required workers to obtain their employers' permission before leaving the country.

Qureshi welcomed the changes but said Pakistan would push for more.

"I think other facilities like health cover and stuff like that can be negotiated and we will talk with them about that," he said.

Qureshi's trip to Brussels comes as cash-strapped Pakistan seeks foreign investment, with the government forced to announce an austerity budget after securing a $6 billion bailout from the International Monetary Fund.

After talks with senior EU officials on Tuesday, the minister will sign a "strategic engagement plan" with the bloc's diplomatic chief Federica Mogherini.

Pakistan will insist on proper labour rights for an army of its citizens working on Qatar's football World Cup infrastructure, the country's foreign minister said Monday, after repeated reports of abuses.

Pakistan will insist on proper labour rights for an army of its citizens working on Qatar's football World Cup infrastructure, the country's foreign minister said Monday, after repeated reports of abuses. The gas-rich Gulf state has embarked on a huge construction programme to get ready for the 2022 tournament, drawing intense scrutiny from rights and labour campaigners. Earlier this year Amnesty International warned that despite "nascent reforms", Qatar was running out of time to stamp out widespread and serious exploitation of tens of thousands of migrant labourers, many of them from South Asia. There have been reports of wages going unpaid, passports being held by unscrupulous bosses and some labourers working up to 148 days in a row. Pakistani Foreign Minister Shah Mehmood Qureshi welcomed Qatari plans to offer his countrymen up to 100,000 work permits but insisted World Cup workers' rights must be respected. "Certainly we will ask our embassy and we will ask the recruiting agencies to give better terms," he told AFP during a visit to Brussels. "Where we feel Pakistani labour is contributing, we feel they should be looked after as well." Qatar insists it is committed to labour reform. Since it was chosen as World Cup host it has introduced a monthly minimum wage of 750 riyals ($206) and partially scrapped the exit visa system which required workers to obtain their employers' permission before leaving the country. Qureshi welcomed the changes but said Pakistan would push for more. "I think other facilities like health cover and stuff like that can be negotiated and we will talk with them about that," he said. Qureshi's trip to Brussels comes as cash-strapped Pakistan seeks foreign investment, with the government forced to announce an austerity budget after securing a $6 billion bailout from the International Monetary Fund. After talks with senior EU officials on Tuesday, the minister will sign a "strategic engagement plan" with the bloc's diplomatic chief Federica Mogherini.

Pakistan insists on workers' rights for its citizens working on Qatar World Cup

Belgian counter-terror police have arrested a man suspected of plotting an attack against the US embassy in Brussels, federal prosecutors said on Monday.

The federal police's counter-terrorism unit on Saturday arrested a man following "converging signs raising fears of an attack against the US embassy," the prosecutor's office said.

"The suspect has been detained for an alleged attempted attack within a terrorist context and preparation of a terrorist offence," it said in a statement.

The suspect identified only as M.G. appeared before an investigating judge on Monday morning, it added. He denies any involvement in the alleged plot.

The federal prosecutor's office said no other details would be released for the time being.

Belgian counter-terror police have arrested a man suspected of plotting an attack against the US embassy in Brussels, federal prosecutors said on Monday. The federal police's counter-terrorism unit on Saturday arrested a man following "converging signs raising fears of an attack against the US embassy," the prosecutor's office said.

Belgian counter-terror police have arrested a man suspected of plotting an attack against the US embassy in Brussels, federal prosecutors said on Monday. The federal police's counter-terrorism unit on Saturday arrested a man following "converging signs raising fears of an attack against the US embassy," the prosecutor's office said. "The suspect has been detained for an alleged attempted attack within a terrorist context and preparation of a terrorist offence," it said in a statement. The suspect identified only as M.G. appeared before an investigating judge on Monday morning, it added. He denies any involvement in the alleged plot. The federal prosecutor's office said no other details would be released for the time being.

Belgian police arrests man suspected of plotting attack on US embassy in Brussels

<a href="https://www.wionews.com/world/blow-for-president-emmanuel-macron-as-le-pen-tops-european-union-election-in-france-221915">Emmanuel&nbsp;Macron&nbsp;</a>may have ended up with a disappointing second place in the European election in France, but his battle for&nbsp;influence&nbsp;in&nbsp;Brussels&nbsp;can now begin in earnest - and he is in a stronger position to wage that fight than two years ago.

The French leader may have failed to defeat Marine Le Pen's far-right party on Sunday, a duel&nbsp;Macron&nbsp;had played up ahead of the vote, but he now has a troop of European lawmakers he can call his own, giving him more leverage on the European stage.

"Even if he finished second behind Le Pen,&nbsp;Macron's party has more chances of being in a pivotal role - even one of kingmaker - than Marine Le Pen's party," Manuel Lafont Rapnouil, head of the ECFR think-tank's Paris office, told Reuters.

"Of course in terms of political capital, in terms of image, it's not very good for&nbsp;Macron," he said. "But from an institutional point of view, with this new European parliament configuration, he is now in a better position."

Macron's party, the pro-European Republique En Marche, was only created in 2016, which means he had no lawmakers in the European Parliament until now, limiting his&nbsp;influence.

Having finished less than one percentage point behind Le Pen, who did less well than five years ago, he is now on course to match the far-right leader's 23 seats in the new assembly.

That should be enough to become the biggest national contingent in the third-largest bloc in parliament, the centrist group currently known as ALDE, where&nbsp;Macron&nbsp;will now call the shots, bringing his youth and the weight of France to the fore.

As German Chancellor Angela Merkel gradually leaves the stage after almost 15 years in power,&nbsp;Macron&nbsp;is keen to take over the unofficial mantle of leader of the European project.

With the two hitherto dominant forces in the European assembly - the European Peoples' Party (EPP) to the right and the Socialists &amp; Democrats (S&amp;D) on the left - short of the 376 seats needed for a majority in the European Parliament, ALDE will become crucial for any coalition.

That's why&nbsp;Macron's strategists were sanguine about "disappointing" but "honourable" results that contrasted sharply with the bruising mid-term defeats handed out to previous French governments.

In&nbsp;Brussels,&nbsp;Macron's aides see themselves as essential: whoever wants to build a majority in the European Parliament will have to do so with&nbsp;Macron&nbsp;and ALDE.

"For the first time, the EPP and the S&amp;D will have to compromise with a centrist, pro-European force - in which we'll have a central and crucial role - and which will be a totally indispensable partner," a presidential adviser said.

REBALANCED FRANCO-GERMAN RELATIONSHIP

Macron's aura - inherited from his landslide 2017 defeat of Le Pen when other countries such as Britain and the United States were succumbing to populist forces - will be dented at the European Council table of EU leaders.

And with eurosceptic Viktor Orban securing a 52 per cent victory in Hungary,&nbsp;Macron&nbsp;will struggle to impose his integrationist, pro-EU agenda, Christopher Dembik, an economist at Saxo Bank in Paris, told Reuters.

However, with Merkel's conservatives losing seven percentage points from five years ago as the German far-right made gains,&nbsp;Macron&nbsp;could establish a more equal relationship with Germany, which over the past two years has frustrated most of his plans from trade policy to eurozone reform.

Macron&nbsp;should at least be able to block Merkel from imposing her lead candidate for the European Commission, Manfred Weber.

"In our view, Angela Merkel's favourite candidate is totally disqualified today," Pascal Canfin, number two on&nbsp;Macron's list of candidates told France Inter radio on Monday. The EPP will have to eject Orban from its ranks for any coalition deal to be approved by&nbsp;Macron's group, he added.

Elysee officials took heart in the surge by Germany's Greens, who have expressed more support for his pro-European agenda than conservatives and liberals in Berlin, and who could be tempted to collaborate in&nbsp;Brussels.

Other European politicians also see&nbsp;Macron&nbsp;playing a leading role in the EU stage.

"You may like him or not, but there's no doubt he will be the leader of the coming months in Europe, with a crucial role of kingmaker," Italy's former prime minister Matteo Renzi told the Journal du Dimanche newspaper.

Portugal's prime minister, Antonio Costa, a Socialist, also voiced support for&nbsp;Macron's European plans ahead of the vote, suggesting the French leader might be able to win allies beyond his centrist family in the European parliament.

With his eyes on the top EU posts,&nbsp;Macron&nbsp;didn't waste any time before starting negotiations with his European counterparts.

He called Merkel on Sunday night and will talk to other EU leaders ahead of an informal&nbsp;Brussels&nbsp;meeting on Tuesday which will kick off weeks of bargaining over who will run the EU's main institutions.

Spain's Pedro Sanchez, whose Socialists are on course to have the biggest contingent in the EU assembly's Socialist group, will dine with&nbsp;Macron&nbsp;at the Elysee Palace on Monday evening, a sign the two leaders see each other as powerbrokers.

Elysee strategists have long hoped to lure Spanish Socialists into their "grand coalition" of pro-EU progressive forces.

Macron's allies in the EU Parliament see a new, more influential era for the centrists, with outgoing ALDE leader Guy Verhofstadt rejecting the idea that&nbsp;Macron's second-place showing to Le Pen was even a "defeat".

"What you call a defeat I call a victory," he said.

Emmanuel Macron may have ended up with a disappointing second place in the European election in France, but his battle for influence in Brussels can now begin in earnest - and he is in a stronger position to wage that fight than two years ago.

Emmanuel Macron may have ended up with a disappointing second place in the European election in France, but his battle for influence in Brussels can now begin in earnest - and he is in a stronger position to wage that fight than two years ago. The French leader may have failed to defeat Marine Le Pen's far-right party on Sunday, a duel Macron had played up ahead of the vote, but he now has a troop of European lawmakers he can call his own, giving him more leverage on the European stage. "Even if he finished second behind Le Pen, Macron's party has more chances of being in a pivotal role - even one of kingmaker - than Marine Le Pen's party," Manuel Lafont Rapnouil, head of the ECFR think-tank's Paris office, told Reuters. "Of course in terms of political capital, in terms of image, it's not very good for Macron," he said. "But from an institutional point of view, with this new European parliament configuration, he is now in a better position." Macron's party, the pro-European Republique En Marche, was only created in 2016, which means he had no lawmakers in the European Parliament until now, limiting his influence. Having finished less than one percentage point behind Le Pen, who did less well than five years ago, he is now on course to match the far-right leader's 23 seats in the new assembly. That should be enough to become the biggest national contingent in the third-largest bloc in parliament, the centrist group currently known as ALDE, where Macron will now call the shots, bringing his youth and the weight of France to the fore. As German Chancellor Angela Merkel gradually leaves the stage after almost 15 years in power, Macron is keen to take over the unofficial mantle of leader of the European project. With the two hitherto dominant forces in the European assembly - the European Peoples' Party (EPP) to the right and the Socialists & Democrats (S&D) on the left - short of the 376 seats needed for a majority in the European Parliament, ALDE will become crucial for any coalition. That's why Macron's strategists were sanguine about "disappointing" but "honourable" results that contrasted sharply with the bruising mid-term defeats handed out to previous French governments. In Brussels, Macron's aides see themselves as essential: whoever wants to build a majority in the European Parliament will have to do so with Macron and ALDE. "For the first time, the EPP and the S&D will have to compromise with a centrist, pro-European force - in which we'll have a central and crucial role - and which will be a totally indispensable partner," a presidential adviser said. REBALANCED FRANCO-GERMAN RELATIONSHIP Macron's aura - inherited from his landslide 2017 defeat of Le Pen when other countries such as Britain and the United States were succumbing to populist forces - will be dented at the European Council table of EU leaders. And with eurosceptic Viktor Orban securing a 52 per cent victory in Hungary, Macron will struggle to impose his integrationist, pro-EU agenda, Christopher Dembik, an economist at Saxo Bank in Paris, told Reuters. However, with Merkel's conservatives losing seven percentage points from five years ago as the German far-right made gains, Macron could establish a more equal relationship with Germany, which over the past two years has frustrated most of his plans from trade policy to eurozone reform. Macron should at least be able to block Merkel from imposing her lead candidate for the European Commission, Manfred Weber. "In our view, Angela Merkel's favourite candidate is totally disqualified today," Pascal Canfin, number two on Macron's list of candidates told France Inter radio on Monday. The EPP will have to eject Orban from its ranks for any coalition deal to be approved by Macron's group, he added. Elysee officials took heart in the surge by Germany's Greens, who have expressed more support for his pro-European agenda than conservatives and liberals in Berlin, and who could be tempted to collaborate in Brussels. Other European politicians also see Macron playing a leading role in the EU stage. "You may like him or not, but there's no doubt he will be the leader of the coming months in Europe, with a crucial role of kingmaker," Italy's former prime minister Matteo Renzi told the Journal du Dimanche newspaper. Portugal's prime minister, Antonio Costa, a Socialist, also voiced support for Macron's European plans ahead of the vote, suggesting the French leader might be able to win allies beyond his centrist family in the European parliament. With his eyes on the top EU posts, Macron didn't waste any time before starting negotiations with his European counterparts. He called Merkel on Sunday night and will talk to other EU leaders ahead of an informal Brussels meeting on Tuesday which will kick off weeks of bargaining over who will run the EU's main institutions. Spain's Pedro Sanchez, whose Socialists are on course to have the biggest contingent in the EU assembly's Socialist group, will dine with Macron at the Elysee Palace on Monday evening, a sign the two leaders see each other as powerbrokers. Elysee strategists have long hoped to lure Spanish Socialists into their "grand coalition" of pro-EU progressive forces. Macron's allies in the EU Parliament see a new, more influential era for the centrists, with outgoing ALDE leader Guy Verhofstadt rejecting the idea that Macron's second-place showing to Le Pen was even a "defeat". "What you call a defeat I call a victory," he said.

Despite bruised ego, Macron starts real campaign for Brussels influence

Mike Pompeo leaves Moscow out of Russia Visit. He is heading to Russia after visit to Brussels

Pompeo leaves Moscow out of Russia Visit

The US on Monday threatened to impose <a href="https://www.google.com/url?q=https://www.wionews.com/world/european-union-set-for-trade-talks-with-us-on-march-6-amid-concern-over-tariffs-201134&amp;sa=U&amp;ved=0ahUKEwi2vPzDmMLhAhWad94KHch8DJIQFggLMAI&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1Yk0M-aoR0ub3iSWNaTvJu">tariff</a> counter-measures of up to $11.2 billion on a host of European products in response to subsidies received by aircraft maker Airbus.

For more than 14 years, Washington and Brussels have accused each other of unfairly subsidising Boeing and Airbus, respectively, in a tit-for-tat dispute.&nbsp;

In a statement Monday, the office of the US Trade Representative (USTR) said the World Trade Organization (WTO) had repeatedly found that European subsidies to Airbus have caused adverse effects to the United States. &nbsp;

"This case has been in litigation for 14 years, and the time has come for action," said US Trade Representative Robert Lighthizer.

"Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. &nbsp;When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted."

The statement added that the final amount it would seek in duties was subject to arbitration at the WTO, the result of which was expected in the summer.

The USTR's preliminary list extends to 14 pages and contains a number of products in the civil aviation sector, including Airbus aircraft.

It also contains food products such as swordfish, salmon, cheeses, fruits, olive oil and wines, along with clothes.

Complicated trade spat&nbsp;

The Boeing-Airbus spat is the longest and most complicated dispute dealt with by the WTO, which aims to create a level playing field in global trade.

Both Airbus and Boeing have scored points along the way.

The WTO ruled in March 2012 that billions of dollars of subsidies to Boeing were illegal and notified the United States to end them.

But a few months later, the European Union filed a new complaint, alleging Washington was not complying with that order.

In a ruling published in June 2017, the WTO said the US had brought 28 of 29 programmes into compliance but agreed with Brussels that Washington had not taken "appropriate steps to remove the adverse effects or... withdraw the subsidy" in the case of Washington state.

The EU and the US appealed against that to the WTO Appellate Body, which on last month echoed the 2017 finding, although it appeared to take a harsher line against the American side.

The EU was also reprimanded by the WTO during the tit-for-tat conflict between Airbus and Boeing, and the US asked the WTO to determine the amount it could impose in sanctions against the European Union for failing to comply in removing subsidies.&nbsp;

The USTR said Monday that once that report is issued, it will announce a full product list, which comes after months of trade tensions between the US and the EU.&nbsp;

US President Donald Trump's administration has made punitive tariffs something of a signature, imposing many and frequently threatening them as a negotiation tactic: and the EU was no exception.

The EU and the US have been working to set in motion a limited trade pact as part of a truce agreed in July when Trump and European Commission President Jean-Claude Juncker pledged no new tariffs following those imposed on steel and aluminium.

The USTR's statement also comes as Boeing faces a crisis over its 737 MAX aircraft, which is grounded over safety fears following two fatal accidents.

The US on Monday threatened to impose tariff counter-measures of up to $11.2 billion on a host of European products in response to subsidies received by aircraft maker Airbus.

The US on Monday threatened to impose tariff counter-measures of up to $11.2 billion on a host of European products in response to subsidies received by aircraft maker Airbus. For more than 14 years, Washington and Brussels have accused each other of unfairly subsidising Boeing and Airbus, respectively, in a tit-for-tat dispute. In a statement Monday, the office of the US Trade Representative (USTR) said the World Trade Organization (WTO) had repeatedly found that European subsidies to Airbus have caused adverse effects to the United States. "This case has been in litigation for 14 years, and the time has come for action," said US Trade Representative Robert Lighthizer. "Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted." The statement added that the final amount it would seek in duties was subject to arbitration at the WTO, the result of which was expected in the summer. The USTR's preliminary list extends to 14 pages and contains a number of products in the civil aviation sector, including Airbus aircraft. It also contains food products such as swordfish, salmon, cheeses, fruits, olive oil and wines, along with clothes. Complicated trade spat The Boeing-Airbus spat is the longest and most complicated dispute dealt with by the WTO, which aims to create a level playing field in global trade. Both Airbus and Boeing have scored points along the way. The WTO ruled in March 2012 that billions of dollars of subsidies to Boeing were illegal and notified the United States to end them. But a few months later, the European Union filed a new complaint, alleging Washington was not complying with that order. In a ruling published in June 2017, the WTO said the US had brought 28 of 29 programmes into compliance but agreed with Brussels that Washington had not taken "appropriate steps to remove the adverse effects or... withdraw the subsidy" in the case of Washington state. The EU and the US appealed against that to the WTO Appellate Body, which on last month echoed the 2017 finding, although it appeared to take a harsher line against the American side. The EU was also reprimanded by the WTO during the tit-for-tat conflict between Airbus and Boeing, and the US asked the WTO to determine the amount it could impose in sanctions against the European Union for failing to comply in removing subsidies. The USTR said Monday that once that report is issued, it will announce a full product list, which comes after months of trade tensions between the US and the EU. US President Donald Trump's administration has made punitive tariffs something of a signature, imposing many and frequently threatening them as a negotiation tactic: and the EU was no exception. The EU and the US have been working to set in motion a limited trade pact as part of a truce agreed in July when Trump and European Commission President Jean-Claude Juncker pledged no new tariffs following those imposed on steel and aluminium. The USTR's statement also comes as Boeing faces a crisis over its 737 MAX aircraft, which is grounded over safety fears following two fatal accidents.

US threatens new tariffs on EU products over Airbus subsidies

The EU's chief <a href="https://www.google.com/url?q=https://www.wionews.com/world/will-step-down-before-next-phase-of-brexit-negotiations-pm-theresa-may-to-mps-206112&amp;sa=U&amp;ved=0ahUKEwiTvMG1_sLhAhXZaN4KHWZ_AfsQFggRMAQ&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1L4nZ4o56VAJrs2PA-3M8F">Brexit </a>negotiator Michel Barnier said Tuesday that the length of any delay to the divorce that the bloc may grant Britain will depend on what plan Prime Minister <a href="https://www.google.com/url?q=https://www.wionews.com/world/british-pm-theresa-may-seeks-new-brexit-delay-to-approve-deal-207606&amp;sa=U&amp;ved=0ahUKEwiTvMG1_sLhAhXZaN4KHWZ_AfsQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3Ux7ecZiOFtQ_2bPlp1-3F">Theresa May </a>brings to a crunch summit.

The British leader is making a last-gasp diplomatic dash to Paris and Berlin on the eve of an emergency summit in Brussels, where she hopes the other 27 EU chiefs will agree to postpone Brexit to June 30.

She needs more time to try to strike a compromise with the opposition that will let Britain's bitterly divided parliament back an orderly divorce plan at the fourth attempt.

Without such a delay, the United Kingdom is scheduled to crash out with no deal on Friday.

But the EU has already granted one delay -- the original deadline was March 29 -- and negotiator Michel Barnier said May must explain what another postponement would achieve.

"The length of the extension must be linked to the purpose -- what it's for -- and that depends on what Mrs May will say to European leaders tomorrow," Barnier told reporters after a meeting of EU Europe ministers to discuss the Brexit crisis.

"She is coming back to indicate the way forward, that is what is expected by European leaders... It is for her to bring the roadmap."

Barnier insisted it would not be the EU's fault if a chaotic "no deal" departure -- predicted to have a calamitous impact -- came to pass.

"No deal will never be the EU's decision, it will always be the responsibility of the United Kingdom to tell us what it wants," Barnier said.

May's talks with the main opposition Labour Party have made little tangible progress, making an imminent breakthrough seem unlikely, but Barnier said he was still hopeful the process could bear fruit.

The EU's chief Brexit negotiator Michel Barnier said Tuesday that the length of any delay to the divorce that the bloc may grant Britain will depend on what plan Prime Minister Theresa May brings to a crunch summit.

The EU's chief Brexit negotiator Michel Barnier said Tuesday that the length of any delay to the divorce that the bloc may grant Britain will depend on what plan Prime Minister Theresa May brings to a crunch summit. The British leader is making a last-gasp diplomatic dash to Paris and Berlin on the eve of an emergency summit in Brussels, where she hopes the other 27 EU chiefs will agree to postpone Brexit to June 30. She needs more time to try to strike a compromise with the opposition that will let Britain's bitterly divided parliament back an orderly divorce plan at the fourth attempt. Without such a delay, the United Kingdom is scheduled to crash out with no deal on Friday. But the EU has already granted one delay -- the original deadline was March 29 -- and negotiator Michel Barnier said May must explain what another postponement would achieve. "The length of the extension must be linked to the purpose -- what it's for -- and that depends on what Mrs May will say to European leaders tomorrow," Barnier told reporters after a meeting of EU Europe ministers to discuss the Brexit crisis. "She is coming back to indicate the way forward, that is what is expected by European leaders... It is for her to bring the roadmap." Barnier insisted it would not be the EU's fault if a chaotic "no deal" departure -- predicted to have a calamitous impact -- came to pass. "No deal will never be the EU's decision, it will always be the responsibility of the United Kingdom to tell us what it wants," Barnier said. May's talks with the main opposition Labour Party have made little tangible progress, making an imminent breakthrough seem unlikely, but Barnier said he was still hopeful the process could bear fruit.

Any Brexit delay depends on Theresa May request: EU's Michel Barnier

EU leaders still want to avoid the chaos of a "no deal" Brexit, but concern is rising that giving Britain <a href="https://www.wionews.com/world/uk-lawmakers-to-try-to-force-pm-may-to-seek-further-brexit-delay-207516">a long delay</a> poses risks of its own and would solve little.

With less than two weeks until Britain ends its four-decade-old EU membership, UK lawmakers are still deadlocked over what kind of divorce they want.

European negotiators insist the deal they signed with Prime Minister Theresa May last November is the only guarantee of an orderly exit.

But May has repeatedly failed to ratify the accord, and lawmakers are toying with options for a "softer" Brexit -- or an abrupt "no deal" departure.

If May gets the deal through parliament, Brexit can be postponed until May 22. If she fails again, she may have to ask for more time before a crisis summit next week.

But will the other 27 EU capitals grant a new delay?

So far they have been publicly unified in their approach to the Brexit talks, and they still agree on the "fundamentals", as one diplomat put it.

But, the source added, there may be more "nuance" between their positions on whether to give May more time when she next meets them on Wednesday next week.

Political chaos 
Some things seem clear: the EU 27 will not renegotiate the November withdrawal agreement nor rewrite the "Irish backstop" clause protecting peace in Ireland.

And if Britain plans to remain in the union beyond May 22 it will have to take part in the European parliamentary elections that start the next day.

If May puts aside her objection to this in exchange for time to seek a majority or agree a route to closer economic ties, a long delay would be needed.

And — with political chaos in London, and European business rattled by the uncertainty surrounding Brexit — Brussels is unenthusiastic.

"Such an extension would carry significant risks for the EU, therefore a strong justification would be needed," negotiator Michel Barnier said Tuesday.&nbsp;

"Many businesses in the EU warn us against the cost of extending uncertainty," he said, citing economic but also political "costs".

Until Britain is outside the union, the EU member states can not legally negotiate a new trade relationship.

And Barnier and others fear UK officials half-in and half-out of the bloc would "pose a risk to our decision-making autonomy" as trade talks take shape.

It is still hard to imagine, however, that EU leaders would turn down a chance to allow Britain to abandon Brexit altogether or to seek a formal customs union.

Britain's neighbours, in particular Ireland, are vulnerable to disruption to trade and supply chains if Britain leaves the bloc without a plan.&nbsp;

Barnier and other EU officials have stressed that Brussels is ready for such a scenario, even if some see this a bluster to keep pressure on Britain.

Irish premier Leo Varadkar was in Paris on Tuesday for talks with President Emmanuel Macron and will meet Germany's Chancellor Angela Merkel in Dublin.

Ireland and Germany are understood to be more open to May requesting an extension, with France and some others ready to push May for more commitments.

Some British MEPs are ready to stand for re-election in May if Britain seeks a delay, and some feel their colleagues would welcome a softer Brexit.

But the vote itself is an unmoveable date, and EU legal experts fear that if Britain fails to take part the new parliament could face a legal challenge.

Only deal possible 
And in the end, the debate will simply return to the deal signed in November, Barnier warns.

Some in London might dream of a clean break from Brussels, but if they leave without signing the accord, its terms will come back to haunt them.

"The prolongation of the negotiation is a prolongation of the uncertainty," Barnier warned.

"For what, I don't know. Is it for organising a new referendum, is it for organising new elections, is it because the House of Commons needs time?"

And if there's a no deal?

"A few months after, I'm sure the UK will ask the EU for negotiations on some sectors: aviation, transport and -- obviously -- trade," he said.

"In that case, the withdrawal agreement or the Brexit points we put on the table at the start of the negotiation will still be there."

In other words: Britain will still face a divorce bill, must still guarantee EU citizens' rights and must still respect the Irish backstop.&nbsp;

EU leaders still want to avoid the chaos of a "no deal" Brexit, but concern is rising that giving Britain a long delay poses risks of its own and would solve little.

EU leaders still want to avoid the chaos of a "no deal" Brexit, but concern is rising that giving Britain a long delay poses risks of its own and would solve little. With less than two weeks until Britain ends its four-decade-old EU membership, UK lawmakers are still deadlocked over what kind of divorce they want. European negotiators insist the deal they signed with Prime Minister Theresa May last November is the only guarantee of an orderly exit. But May has repeatedly failed to ratify the accord, and lawmakers are toying with options for a "softer" Brexit -- or an abrupt "no deal" departure. If May gets the deal through parliament, Brexit can be postponed until May 22. If she fails again, she may have to ask for more time before a crisis summit next week. But will the other 27 EU capitals grant a new delay? So far they have been publicly unified in their approach to the Brexit talks, and they still agree on the "fundamentals", as one diplomat put it. But, the source added, there may be more "nuance" between their positions on whether to give May more time when she next meets them on Wednesday next week. Political chaos Some things seem clear: the EU 27 will not renegotiate the November withdrawal agreement nor rewrite the "Irish backstop" clause protecting peace in Ireland. And if Britain plans to remain in the union beyond May 22 it will have to take part in the European parliamentary elections that start the next day. If May puts aside her objection to this in exchange for time to seek a majority or agree a route to closer economic ties, a long delay would be needed. And — with political chaos in London, and European business rattled by the uncertainty surrounding Brexit — Brussels is unenthusiastic. "Such an extension would carry significant risks for the EU, therefore a strong justification would be needed," negotiator Michel Barnier said Tuesday. "Many businesses in the EU warn us against the cost of extending uncertainty," he said, citing economic but also political "costs". Until Britain is outside the union, the EU member states can not legally negotiate a new trade relationship. And Barnier and others fear UK officials half-in and half-out of the bloc would "pose a risk to our decision-making autonomy" as trade talks take shape. It is still hard to imagine, however, that EU leaders would turn down a chance to allow Britain to abandon Brexit altogether or to seek a formal customs union. Britain's neighbours, in particular Ireland, are vulnerable to disruption to trade and supply chains if Britain leaves the bloc without a plan. Barnier and other EU officials have stressed that Brussels is ready for such a scenario, even if some see this a bluster to keep pressure on Britain. Irish premier Leo Varadkar was in Paris on Tuesday for talks with President Emmanuel Macron and will meet Germany's Chancellor Angela Merkel in Dublin. Ireland and Germany are understood to be more open to May requesting an extension, with France and some others ready to push May for more commitments. Some British MEPs are ready to stand for re-election in May if Britain seeks a delay, and some feel their colleagues would welcome a softer Brexit. But the vote itself is an unmoveable date, and EU legal experts fear that if Britain fails to take part the new parliament could face a legal challenge. Only deal possible And in the end, the debate will simply return to the deal signed in November, Barnier warns. Some in London might dream of a clean break from Brussels, but if they leave without signing the accord, its terms will come back to haunt them. "The prolongation of the negotiation is a prolongation of the uncertainty," Barnier warned. "For what, I don't know. Is it for organising a new referendum, is it for organising new elections, is it because the House of Commons needs time?" And if there's a no deal? "A few months after, I'm sure the UK will ask the EU for negotiations on some sectors: aviation, transport and -- obviously -- trade," he said. "In that case, the withdrawal agreement or the Brexit points we put on the table at the start of the negotiation will still be there." In other words: Britain will still face a divorce bill, must still guarantee EU citizens' rights and must still respect the Irish backstop.

Brussels increasingly wary of long Brexit delay

<a href="http://www.wionews.com/world/huawei-said-to-be-preparing-to-sue-us-government-report-201063">Huawei, in the spotlight</a> over the security risks of its telecom equipment gear, urged governments, the telecoms industry and regulators on Tuesday to work together to create a common set of cybersecurity standards.

The call by Huawei Chairman Ken Hu came as the world’s largest telecoms equipment maker opened a cybersecurity centre in Brussels, allowing its customers and governments to test Huawei’s source code, software and product solutions.&nbsp;

The company has similar facilities in Britain, Bonn, Dubai, Toronto and Shenzhen.&nbsp;

"The fact is that both the public and private sectors lack a basic common understanding of this issue. As a result, different stakeholders have different expectations and there is no alignment of responsibilities," Hu told a news conference.&nbsp;

"As a whole, the industry lacks a unified set of technical standards for security, as well as systems for verification. This is complicated by globalisation of the value chain," he said.

Hu said a common standard, verified legally and technically, would help create trust in the industry.&nbsp;

Hu, who met with European Commission digital chief Andrus Ansip on Monday, said they had discussed the possibility of setting up a cybersecurity standard along the lines of the GDPR, the landmark EU data protection law adopted last year which gives Europeans more control over their online information and applies to all companies that do business with Europeans.

Huawei, in the spotlight over the security risks of its telecom equipment gear, urged governments, the telecoms industry and regulators on Tuesday to work together to create a common set of cybersecurity standards.

Huawei, in the spotlight over the security risks of its telecom equipment gear, urged governments, the telecoms industry and regulators on Tuesday to work together to create a common set of cybersecurity standards. The call by Huawei Chairman Ken Hu came as the world’s largest telecoms equipment maker opened a cybersecurity centre in Brussels, allowing its customers and governments to test Huawei’s source code, software and product solutions. The company has similar facilities in Britain, Bonn, Dubai, Toronto and Shenzhen. "The fact is that both the public and private sectors lack a basic common understanding of this issue. As a result, different stakeholders have different expectations and there is no alignment of responsibilities," Hu told a news conference. "As a whole, the industry lacks a unified set of technical standards for security, as well as systems for verification. This is complicated by globalisation of the value chain," he said. Hu said a common standard, verified legally and technically, would help create trust in the industry. Hu, who met with European Commission digital chief Andrus Ansip on Monday, said they had discussed the possibility of setting up a cybersecurity standard along the lines of the GDPR, the landmark EU data protection law adopted last year which gives Europeans more control over their online information and applies to all companies that do business with Europeans.

Huawei calls for common cybersecurity standards amidst concerns

Brussels Chocolate Salon exhibits delectable feasts in innovative forms

<a href="http://www.wionews.com/opinions/theresa-may-survives-confidence-vote-but-her-brexit-deal-is-still-in-deep-trouble-183608">British Prime Minister Theresa</a> May has rejected the idea of targeting a customs union with the European Union, pouring cold water on hopes from some that she could shift her Brexit policy to win over the opposition Labour Party.

Britain is due to leave the EU on March 29 but has yet to find a deal which is acceptable to both Brussels and lawmakers at home, raising the prospect of a disorderly exit that could damage the world's fifth largest economy.

Brexit has divided Britain at every level from voters to the cabinet and raised fears internationally that it will weaken the West. Brexit supporters hail it as casting off a failing German-led project.

Last week, Labour leader Jeremy Corbyn set out the conditions under which he would instruct his party to support an exit deal in parliament. Foremost was a demand that May seek a "permanent and comprehensive UK-wide customs union".

The EU has urged May to grasp Labour's compromise offer rather than press ahead with her preferred option of getting her own divided party onside by renegotiating a clause in the exit agreement relating to the Northern Irish border.

But May's office published her reply to Corbyn late on Sunday, showing little appetite for a U-turn which would risk splitting her fractious party by ruling out the scope for Britain to strike its own trade deals around the world.

"I am not clear why you believe it would be preferable to seek a say in future EU trade deals rather than the ability to strike our own deal?" May wrote in a three-page letter.

May and her government have repeatedly said membership of a customs union would prevent it from having an independent trade policy - something they have promoted as one of the main economic benefits of leaving the EU.

Although May welcomed the prospect of future talks with Corbyn to try and find a compromise, the letter gave no ground on their central point of disagreement.

That leaves May battling to persuade a reluctant EU to look again at the Irish backstop - a fallback policy designed to prevent the resurrection of a hard border in Ireland if talks to find a long-term trade arrangement fail.

Brexit minister Stephen Barclay will meet EU negotiator Michel Barnier on Monday ahead of a crunch moment in parliament on Thursday when lawmakers will try to force May to change course or give up control of the exit process.

May will promise lawmakers a second opportunity to influence the Brexit talks later in the month in a bid to stave off any rebellion from within her own party by those who fear Britain could end up leaving without a deal.

British Prime Minister Theresa May has rejected the idea of targeting a customs union with the European Union, pouring cold water on hopes from some that she could shift her Brexit policy to win over the opposition Labour Party.

British Prime Minister Theresa May has rejected the idea of targeting a customs union with the European Union, pouring cold water on hopes from some that she could shift her Brexit policy to win over the opposition Labour Party. Britain is due to leave the EU on March 29 but has yet to find a deal which is acceptable to both Brussels and lawmakers at home, raising the prospect of a disorderly exit that could damage the world's fifth largest economy. Brexit has divided Britain at every level from voters to the cabinet and raised fears internationally that it will weaken the West. Brexit supporters hail it as casting off a failing German-led project. Last week, Labour leader Jeremy Corbyn set out the conditions under which he would instruct his party to support an exit deal in parliament. Foremost was a demand that May seek a "permanent and comprehensive UK-wide customs union". The EU has urged May to grasp Labour's compromise offer rather than press ahead with her preferred option of getting her own divided party onside by renegotiating a clause in the exit agreement relating to the Northern Irish border. But May's office published her reply to Corbyn late on Sunday, showing little appetite for a U-turn which would risk splitting her fractious party by ruling out the scope for Britain to strike its own trade deals around the world. "I am not clear why you believe it would be preferable to seek a say in future EU trade deals rather than the ability to strike our own deal?" May wrote in a three-page letter. May and her government have repeatedly said membership of a customs union would prevent it from having an independent trade policy - something they have promoted as one of the main economic benefits of leaving the EU. Although May welcomed the prospect of future talks with Corbyn to try and find a compromise, the letter gave no ground on their central point of disagreement. That leaves May battling to persuade a reluctant EU to look again at the Irish backstop - a fallback policy designed to prevent the resurrection of a hard border in Ireland if talks to find a long-term trade arrangement fail. Brexit minister Stephen Barclay will meet EU negotiator Michel Barnier on Monday ahead of a crunch moment in parliament on Thursday when lawmakers will try to force May to change course or give up control of the exit process. May will promise lawmakers a second opportunity to influence the Brexit talks later in the month in a bid to stave off any rebellion from within her own party by those who fear Britain could end up leaving without a deal.

UK PM May rejects pivot towards Brexit customs union compromise

<a href="http://www.wionews.com/world/european-union-now-sees-brexit-unstoppable-aims-to-avert-fiasco-195657">Britain's Prime Minister Theresa May</a> heads back to meet EU leaders in Brussels on Thursday as she seeks a way to avoid a no deal Brexit in 50 days time.

Expectations for the visit were already modest when, on Wednesday, EU kingpins Donald Tusk and Jean-Claude Juncker torched May's prospects of winning changes to the withdrawal agreement.

The president of the European Commission, Juncker, told reporters May already knows and accepts that the Union will not re-open talks on the deal.

And Tusk, who represents EU member governments as head of the European Council, triggered outrage across the Channel by damning pro-Brexit politicians for -- in his view -- recklessly failing to plan.

"I've been wondering what that special place in hell looks like, for those who promoted Brexit without even a sketch of a plan how to carry it out safely," Tusk said.

Juncker, at a later news conference, did not use the same language, but cheerfully laughed off Tusk's remark.

But he also repeated the same warning that the withdrawal agreement, and the backstop clause designed to keep the Irish border open if no future trade deal is agreed, will not be changed.

"She knows that the commission is not prepared to reopen the issue," Juncker said, after talks with Irish Prime Minister Leo Varadkar, who also insisted on the need for the backstop.

This apparently united front did not daunt Number 10, who insisted that the British parliament's rejection of the deal meant that May must seek material changes to the accord or see it fail.

According to talking points provided by Downing Street ahead of the visit, May will admit that: "Securing such changes will not be easy."&nbsp;

But she will add: "Last week, Parliament made clear that for the first time it could support the withdrawal agreement, subject to changes to the backstop.

"The Government now wants urgently to work with the EU to secure such changes. The EU shares the UK's commitment to leave with a deal. We must show determination and do what it takes to now get the deal over the line."&nbsp;

The impasse in Brussels has led to heightened fears Britain could crash out of the EU without a deal on March 29, disrupting trade and supplies to manufacturing.

Tusk and Juncker said they look forward to hosting May on Thursday, and Varadkar will have dinner with her in Dublin on Friday.

Offering warm support for his Irish guest, Tusk said the European Union "will not gamble with peace" on the Irish border by removing the backstop from the deal.

"I hope that tomorrow we will hear from Prime Minister May a realistic suggestion on how to end the impasse," he said.

But he added: "A sense of responsibility also tells us to prepare for a possible fiasco."&nbsp;

Varadkar, whose government has stressed the importance of maintaining an open border between Ireland and Northern Ireland after Brexit, thanked Tusk.

"While we expect the backstop will never be used, we agreed again today it is needed as a legal guarantee to ensure there is no return to a hard border," he said.

On Wednesday, May discussed the issue with Northern Irish leaders in the British province.

Last month, the House of Commons overwhelmingly rejected the Brexit deal that May had negotiated with the EU after 18 months of painstaking diplomacy.

May is now looking into changes to satisfy her MPs, who fear the backstop would keep Britain indefinitely tied to EU rules with even closer alignment for Northern Ireland.

May's spokesman stressed that she wasn't coming to Brussels to ask for more time and remained determined to deliver a Brexit deal before the March 29th deadline.

Britain's Prime Minister Theresa May heads back to meet EU leaders in Brussels on Thursday as she seeks a way to avoid a no deal Brexit in 50 days time. Expectations for the visit were already modest when, on Wednesday, EU kingpins Donald Tusk and Jean-Claude Juncker torched May's prospects of winning changes to the withdrawal agreement.

Britain's Prime Minister Theresa May heads back to meet EU leaders in Brussels on Thursday as she seeks a way to avoid a no deal Brexit in 50 days time. Expectations for the visit were already modest when, on Wednesday, EU kingpins Donald Tusk and Jean-Claude Juncker torched May's prospects of winning changes to the withdrawal agreement. The president of the European Commission, Juncker, told reporters May already knows and accepts that the Union will not re-open talks on the deal. And Tusk, who represents EU member governments as head of the European Council, triggered outrage across the Channel by damning pro-Brexit politicians for -- in his view -- recklessly failing to plan. "I've been wondering what that special place in hell looks like, for those who promoted Brexit without even a sketch of a plan how to carry it out safely," Tusk said. Juncker, at a later news conference, did not use the same language, but cheerfully laughed off Tusk's remark. But he also repeated the same warning that the withdrawal agreement, and the backstop clause designed to keep the Irish border open if no future trade deal is agreed, will not be changed. "She knows that the commission is not prepared to reopen the issue," Juncker said, after talks with Irish Prime Minister Leo Varadkar, who also insisted on the need for the backstop. This apparently united front did not daunt Number 10, who insisted that the British parliament's rejection of the deal meant that May must seek material changes to the accord or see it fail. According to talking points provided by Downing Street ahead of the visit, May will admit that: "Securing such changes will not be easy." But she will add: "Last week, Parliament made clear that for the first time it could support the withdrawal agreement, subject to changes to the backstop. "The Government now wants urgently to work with the EU to secure such changes. The EU shares the UK's commitment to leave with a deal. We must show determination and do what it takes to now get the deal over the line." The impasse in Brussels has led to heightened fears Britain could crash out of the EU without a deal on March 29, disrupting trade and supplies to manufacturing. Tusk and Juncker said they look forward to hosting May on Thursday, and Varadkar will have dinner with her in Dublin on Friday. Offering warm support for his Irish guest, Tusk said the European Union "will not gamble with peace" on the Irish border by removing the backstop from the deal. "I hope that tomorrow we will hear from Prime Minister May a realistic suggestion on how to end the impasse," he said. But he added: "A sense of responsibility also tells us to prepare for a possible fiasco." Varadkar, whose government has stressed the importance of maintaining an open border between Ireland and Northern Ireland after Brexit, thanked Tusk. "While we expect the backstop will never be used, we agreed again today it is needed as a legal guarantee to ensure there is no return to a hard border," he said. On Wednesday, May discussed the issue with Northern Irish leaders in the British province. Last month, the House of Commons overwhelmingly rejected the Brexit deal that May had negotiated with the EU after 18 months of painstaking diplomacy. May is now looking into changes to satisfy her MPs, who fear the backstop would keep Britain indefinitely tied to EU rules with even closer alignment for Northern Ireland. May's spokesman stressed that she wasn't coming to Brussels to ask for more time and remained determined to deliver a Brexit deal before the March 29th deadline.

Government wants to urgently work with  EU: May on Brexit plan

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