Europe Today: Energy shock and Russian oil sanctions dominate crunch G7 finance talks

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Europe Today: Energy shock and Russian oil sanctions dominate crunch G7 finance talks  G7 finance ministers are gathering in Paris for a second day of crunch talks on rising energy prices, sanctions, and how to contain the economic impact of disruptions in Hormuz. All this as Italian PM Giorgia Meloni urges the EU to treat the energy crisis with the same urgency as defence spending.  READ MORE : http://www.euronews.com/2026/05/19/europe-today-energy-shock-and-russian-oil-sanctions-dominate-crunch-g7-finance-talks  Subscribe to our channel. Euronews is available on Dailymotion in 12 languages

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00:14Good morning, it is Tuesday the 19th of May. I'm Maeve McMahon and this is Europe Today.

00:21Your daily dose of European news and analysis live here on Euronews.

00:25Coming up, US President Donald Trump has said he is holding off on a military strike on Iran

00:31as Gulf countries told him serious negotiations are taking place.

00:35His comments come as G7 finance ministers and central bank governors gather in Paris

00:41amid rising concern over the economic fallout from the Middle East conflict.

00:46And in a nod to farmers across Europe, Brussels will unveil its so-called Fertiliser Action Plan today.

00:53The million euro plan will be funded by leftover cap funds

00:56and aims to support farmers facing a blockage of fertiliser supplies in the Strait of Hormuz.

01:01But many farmers are concerned and are demanding an exemption from the EU's carbon border tax rules.

01:07Plus, MEPs gather in Strasbourg today to, among other things, try to, quote,

01:12Trump-proof the EU-US Turnberry trade deal.

01:15The heat is on since the US President threatened new tariffs on European cars

01:20and EU capitals are nervous about strong safeguards in case Washington retaliates will be live in Strasbourg.

01:27But we can start with that G7 finance ministers meeting taking place today in Paris,

01:32where the US Treasury Secretary has already sparked concern after announcing a pause in sanctions on Russian oil exports.

01:40The talks come as investors remain nervous about inflation, higher borrowing costs and the long-term economic impact of the

01:47war.

01:48For the latest, we're joined here in the studio by our Maria today, our Europe editor.

01:52Maria, these meetings take place at a very crucial time for the European economy.

01:56What can be achieved really today?

01:58Well, yes, for the European economy, but also the global economy,

02:01because we still see the ramifications from the situation in the Middle East

02:05and, of course, the Strait of Hormuz, which is far from operating normally.

02:10Now, for this meeting, it's day two.

02:12This is just to set the scene for our viewers.

02:14An elite gathering of G7 ministers, G7 central bankers,

02:18a head of the European Central Bank, Christine Lagarde, will also be there,

02:22and the boss of the Eurogroup.

02:24On the agenda, there's a number of issues which go from trade to sanctions to, of course, China.

02:30Increasingly, trade tensions between the European Union and the Chinese are palpable.

02:34But to start with, the sanctions yesterday, as you mentioned,

02:37the United States once again confirming and announcing that they will extend this waiver on Russian oil.

02:45That means that Russian oil that is at sea, that is in transit,

02:49countries will be able to buy it and not be in breach of U.S. sanctions.

02:54So that is significant in terms of what the U.S. is hoping to achieve,

02:58which is to ease some of the concerns of the supply,

03:00but also to bring down some of the price pressures because of the instability in the Middle East.

03:05The flip side is that Russia will financially benefit from this decision,

03:09which will be in place for the next 30 days.

03:12For the Europeans, this is bad news and it is a blow to their strategy

03:16because it means, yes, once again, sanctions will be eased on Russian energy.

03:21The Europeans argue it's the complete opposite.

03:24The strategy should be totally radically different.

03:26This is the time to increase the pressure on the Russians and not allow them to cash in on global

03:32instability.

03:32But the U.S. seems to be concerned, as I mentioned, with global supply.

03:36They say they're also doing this, quote, for vulnerable nations.

03:39They are now feeling the heat because of the war.

03:41Of course, obviously, the war is led by the U.S., Israel versus Iran.

03:46And they also argue that it will stop China from stockpiling the oil that is available for the Europeans.

03:51However, it is a blow to their strategy when it comes to the sanctions.

03:54The other issue that will feature heavily is China and the Chinese overcapacity.

03:58We've talked about this on the show repeatedly on Euronews.

04:01For the Europeans, this is key.

04:03They believe that the Chinese, with this massive overload and capacity,

04:06a lot of that could be, quote, dump, which is not a very polite term.

04:10But the idea is that they will now try to relocate some of their extra production to Europe.

04:16That could have an impact on the European industry not being able to compete on the same terms.

04:20We spoke on Euronews with the Commissioner for Trade, who said that the EU will not allow this,

04:26that they will fight and really fight hard for every industry and every job.

04:30And at the same time, you're seeing increasingly more defensive measures from the Europeans.

04:34The Financial Times, of course, yesterday reported that the EU could be prepared to intervene the supply chain.

04:39And there's also been reports that the EU will seriously now consider plans to diversify suppliers coming into Europe.

04:47So a lot of that will feature heavily in this meeting.

04:48A pretty high-stakes meeting, and this meeting comes, of course, as Vladimir Putin, the Russian president, is on his

04:53way to Beijing.

04:54But just tell us as well, speaking of energy, we've seen Italy's Georgia Maloney upping the ante over deficit rules

04:59here in Brussels.

05:00Well, she has, and these two stories, of course, are connected because energy prices,

05:05we've seen now more than three months of elevated energy prices.

05:08The Strait of Hormuzes is a crucial point for global oil and is still far from, as I mentioned, operating.

05:15Normally, all of that is having trickle-down effects on the European industry.

05:18For a country like Italy, really, it's the SMEs, it's the small and medium companies that are the backbone to

05:24this country.

05:25This is having a serious impact, and the Italian prime minister is facing an election next year, too.

05:31So she's now sending a letter, which hopefully we can put up on the screen.

05:35Maeve, everyone in Brussels got a copy of this letter yesterday.

05:38It was leaked all over the place.

05:39So really, the Italians wanted to send a big message with this.

05:43What they argue is that this is an emergency, it's just as important as defence, this is critical for Europe,

05:49and they call on the Commission to relax their fiscal rules.

05:53Remember, for European countries every year, they have to keep their deficit below 3%.

05:57What Georgia Maloney argues is that unless there is an easing on those rules,

06:02unless there's an exemption to measures related to energy,

06:06well, Italy will go above the 3%, or if they don't want to do that,

06:09they will not be able to play into a massive defence programme that the EU wants,

06:14that the Commission wants, which is the SAFE.

06:16So she's really saying, if you want me to play ball on defence, you need to help me out on

06:20energy.

06:21A lot of that, the Italians feel their concerns have not been addressed properly by Brussels,

06:25and all of this is happening in anticipation of a European leaders' summit.

06:28We now see that the Italian leader is saying either we get flexibility on energy,

06:33or this is going to have an impact on defence.

06:35We cannot spend for everything.

06:37The problem, however, is Brussels says in order to put forward extraordinary measures,

06:42you need to have a severe economic downturn, but the EU is not quite there yet.

06:47There is a risk of stagflation, but we've not seen a massive recession manifest.

06:51OK, Maria Steyo, thank you so much for that analysis,

06:53and you can catch more of Maria's analysis on her brand new newsletter that is called Off the Record.

06:58But now we can take you to the French city of Strasbourg,

07:01where MEPs are meeting for a routine voting session.

07:04Tough talks are set to take place late into the night about whether or not to rubber stamp

07:09that controversial EU-US trade deal.

07:12For a refresher first, though, to hear what's at stake, here's our Jakub Janus.

07:17Hey, what are you doing tonight at 9pm?

07:21Maybe going for a date?

07:22If so, bear a thought for European lawmakers and diplomats locked tonight in a room in Strasbourg,

07:28desperately trying to prevent an all-out transatlantic trade war.

07:32And the clock is ticking down to an unforgiving 4th of July deadline set by Donald Trump,

07:37who has threatened a 25% tariff on European cars if Brussels refuses to accept his terms.

07:43All right, so how did Europe end up in this mess?

07:49Last July, Trump and Ursula von der Leyen struck a trade deal in Scotland.

07:53And the maths looked simple.

07:55Zero tariffs on US industrial goods against a 15% cap on European exports.

08:00And all of that was built to protect a relationship with almost 1.7 trillion euros.

08:06And that's a lot of zeros.

08:08But now the European Parliament is pushing back.

08:12After a US Supreme Court ruling against the tariffs,

08:16Washington introduced new duties on steel and aluminium,

08:19effectively violating the treaty before signature.

08:22And European lawmakers argue Europe cannot be bullied,

08:25so they are baking free defensive shields into the text.

08:29The known as Sunrise Clause stoles the deal until Washington drops these steel duties.

08:34And there is also the Sunset Clause,

08:37which automatically ends the agreement in March 2028,

08:40so just before Trump leaves office.

08:43Finally, there is also the Greenland Clause,

08:45allowing Brussels to suspend everything,

08:48if Trump threatens European territorial integrity again.

08:52And quite predictably, this has split Brussels.

08:55The center-right EPP wants a quick deal to avoid industry chaos,

08:59but the socialists are digging in.

09:02And top European Parliament negotiator,

09:04Bern Lange,

09:05insists European legislation must not be dictated by threats from Washington.

09:10So if negotiators reach a compromise tonight,

09:13the text heads to a plenary vote in June.

09:15But if the deadlock holds,

09:17this massive trade relationship hits a cliffhedge.

09:21And that 4th of July deadline will bring a wave of American tariffs

09:25straight to Europe's doorstep.

09:26So if you are going on a date tonight,

09:29you now have a perfect iceberg, a topic.

09:32And no, you don't have to thank me for that.

09:40Jakub Janus there.

09:41Well, our correspondent in Strasbourg,

09:43Vincenzo Genovese, has plans for tonight.

09:45He'll be covering these crunch talks for Euronews.

09:48And he's standing by for us this morning

09:49in the very European Parliament in Strasbourg.

09:52So good morning, Vincenzo.

09:53Just tell us, it is make or break time now for the EU-US trade deal.

09:57Tell us more.

10:00It is, Maeve.

10:01Good morning.

10:02Good morning from Strasbourg.

10:03As you said, as you explained,

10:05the clock is ticking,

10:06pressure is mounting from the US administration

10:09to get this deal done.

10:10But there are still some clauses,

10:13some details to fix.

10:14And we are here with Geliana Zovko,

10:17who is one of the people who will be in the room.

10:19She's the negotiator from the European People's Party.

10:22Why is it taking so long?

10:26We must understand that we are here represented by different political groups.

10:31So on one hand, I'm representing the European People's Party,

10:35the central-right party that is pro-business jobs-orientated

10:40and it's trying to save the European industry and European jobs

10:43and to give them certainty by making this deal done

10:46and by closing this deal.

10:48But on the other hand,

10:49you have groups who are really advocating

10:52ideological fight on the other side of the ocean,

10:56which I'm strictly against.

10:58And we are having all these geopolitical changes

11:01being a part of the deal,

11:04which is not from the start meant to be.

11:08So the prolongation extension is despite our will,

11:12despite the will of European People's Party.

11:15The socialists are trying to stick to stricter clauses,

11:18let's say like this.

11:20OK, but US President Donald Trump said there is a deadline.

11:24For July, after this, much higher tariffs.

11:27So do you feel the pressure?

11:29But that's a part of the interpretation

11:33how this European Union is treating the deal

11:37that was done in August last year.

11:39I mean, if I was an American,

11:40I would also be confused about our side of respecting the deal

11:46because Americans have started his part immediately.

11:50The process is much more simple,

11:53but the complex procedure that is completely acceptable from this side

11:59and all this legislative procedure is taking a long time.

12:03And ideological fight, as I already said,

12:07in what is going on in the United States.

12:09We, the European People's Party,

12:11wanted this deal done immediately,

12:14but I'm afraid we cannot do it on our own.

12:18But do you feel confident for tonight?

12:19I mean, what are the most contentious points?

12:22I know it's a difficult question.

12:23I mean, I felt confident yesterday.

12:27It's like the weather in Brussels or here in Strasbourg.

12:32It changes, you know, every hour.

12:35And by the news that I'm receiving,

12:39I'm also receiving different messages from my colleagues.

12:42And I'm not so confident this morning by the...

12:47What did it change?

12:50No, but I haven't seen that the position has changed.

12:52So we will see.

12:54We have a shadows meeting

12:55and I will discuss with my colleagues

12:57how serious we are to enter into negotiations

13:00to get this deal done tonight.

13:02But what happens if you can't strike a deal?

13:04I mean, this is one of the last chances to get the deal done

13:08and for it to be approved in June plenary session

13:11so to match Trump's deadline.

13:14What will happen?

13:16It will happen a perfect storm

13:17for our industry, for our jobs, for our tourism.

13:20I'm from Croatia, everything will, you know, spiral

13:24from German car industry to Italian cheese industry,

13:28wine and everything to Croatian tourism industry.

13:32The perfect storm will happen

13:33and then the consequences will be clear

13:36who will be paying it.

13:38And from the start, I was saying

13:39I was for our part of the deal to be respected

13:42and I'm not responsible for a perfect storm

13:44we are running into.

13:46Okay, let's hope not.

13:47Jelena Zovko, thank you very much

13:49and good luck, I think.

13:51I think you need it.

13:52Mayf.

13:52Of course, good luck.

13:54We'll all keep a very close eye

13:55on whether that does end out to be a perfect storm

13:57and report it here on Euromut News.

14:00But Vincenzo, before you go,

14:01tonight MEPs or today

14:02will also be taking a moment out

14:04to hand out the so-called European Order of Merit prize.

14:07It goes to a figure

14:08who's been working towards pushing EU values

14:11and integration.

14:12There's some well-known figures up for the prize.

14:14Tell us more.

14:17Yes, indeed.

14:18The European Parliament President Roberta Metsola

14:20will honour the laureates

14:22of the European Order of Merit.

14:24Twenty prominent European figures

14:26have been selected

14:27including Ukrainian President Volodymyr Zelensky,

14:31Moldovan President Maya Sandu,

14:33former Polish President Lech Walesa.

14:35There are also the Irish rock band U2

14:37that you know very well

14:38and basketball player Gianni Santetokounmpo.

14:41But the most controversial name

14:43is probably former German Chancellor Angela Merkel.

14:47We know her legacy is quite disputed.

14:50She has been a stabilizing force

14:53during her 16 years in power.

14:56She was a reassuring presence.

14:59Indeed, Germans nicknamed her Mutti,

15:02which means mom.

15:03But she had also, let's say, dark sides.

15:07Well, for example, the debt crisis,

15:10Germany's interdependence with Russia,

15:13the appeasement towards Vladimir Putin

15:15after the annexation of Crimea in 2014.

15:19The shutdown of nuclear energy

15:21was also a contentious point.

15:23And Commission President Ursula von der Leyen

15:25criticised it like in the past months.

15:30So opinions are quite divided on Merkel's legacy

15:33and it will be very interesting

15:35to see how the hemicycle will react today

15:39to her brief address here in the plenary

15:43in Strasbourg at 11.30.

15:45And, of course, we will follow it on Euronews, Maeve.

15:48We will indeed.

15:49A long morning and night for you there in Strasbourg.

15:51Vincenzo Ginovese, thank you so much

15:53for that live update.

15:54But now, back in Brussels, exactly 25 years ago,

15:58EU member states agreed to set up

16:00an EU military committee

16:01to respond initially to the Balkan conflicts

16:04of the 90s.

16:05And this week, EU chiefs of defence

16:07from all across Europe

16:08will be flocking to Brussels to celebrate.

16:10But souring the mood, of course,

16:11will be the ongoing war in Ukraine

16:13and the conflict in the Middle East.

16:15For more, I'm joined here in the studio

16:16by General Sean Clancy,

16:18that's the chairman of the EU military committee.

16:20Good morning.

16:21Good to have you with us.

16:22So this week, as I said,

16:23chiefs of defence will be flocking

16:24to Brussels to celebrate.

16:26But are you all on the same page

16:27when it comes to the threats

16:28facing the union today?

16:30Oh, very much so.

16:31I think flocking into celebrations,

16:32I think it's a moment of reflection

16:34more than celebration.

16:34I think it's, you know,

16:36it's a time to pause

16:36and reflect how far

16:38the European military committee,

16:40but the European paradigm

16:41of security and defence

16:42has come as a whole

16:43over that period of time.

16:44No more so in the last four years,

16:45and you've mentioned it,

16:46Ukraine, which is the number one priority

16:48for all of us

16:48and the focus of everyone.

16:50Although we do come

16:51from the geographical spaces

16:52throughout Europe,

16:54so it's north, south, east and west,

16:56and we take all of these things

16:57into consideration.

16:58But Ukraine, of course,

16:59is the primacy

17:00and the priority

17:01in which we examine it.

17:02And this week, of course,

17:04with the chiefs of defence,

17:05we will be looking at shaping

17:07the challenges

17:07that influence all of us,

17:10what our responses are to that,

17:12and through our reflections

17:13in our meetings,

17:14then we will be looking

17:15at the key issues

17:16such as the European security strategy,

17:18the defence readiness,

17:20and primarily then,

17:21of course, Ukraine,

17:22where will we be joined

17:23by General Siersky

17:24from Ukrainian forces himself.

17:26And you just mentioned Ukraine

17:26this morning,

17:27reporting of reports

17:28of 500 drones,

17:29dozens of missiles

17:30being fired into Ukraine,

17:31a serious escalation

17:32in the last couple of days there.

17:34Does this forum,

17:35though, carry any weight?

17:36Well, this isn't serious escalation.

17:38This, unfortunately,

17:39is happening on a regular basis.

17:41And the extraordinary resilience

17:43of the Ukrainian armed forces,

17:45but the Ukrainian people

17:45as a whole,

17:46has transformed Ukraine

17:48into a fortress nation now.

17:50And Ukraine,

17:52from an European point of view,

17:53is integral

17:53to the future security of Europe.

17:56So this isn't just

17:57beneficiaries

17:58of European charity.

17:59This is strategic initiative

18:01and imperative for Europe.

18:02But can the EU ever transition

18:04to this military powerhouse?

18:07The EU doesn't have to transition

18:08to a military powerhouse.

18:10Let's be very clear.

18:11The defence and deterrence

18:12of the Euro-Atlantic area,

18:13the responsibility for this

18:14lies with NATO.

18:15Europe brings huge strengths

18:17in terms of military advices,

18:19in terms of economic power,

18:21industrial power,

18:22and its ability then

18:23to, through its common security

18:25and defence policy instruments,

18:27to bring stability, security

18:29to many areas.

18:30We've seen it in the Western Balkans,

18:32which was the initial,

18:33I suppose,

18:33start out through Concordia

18:35of the EU military committee

18:36way back 25 years ago.

18:38But since then,

18:38when we reflect

18:39on what the EU has done,

18:41we see it in the Middle East

18:42through what the EU

18:43is trying to do

18:43in terms of the Lebanon

18:45going forward

18:46with the withdrawal of UNIFIL.

18:47We see it in terms

18:49of our missions and operations,

18:5015 of which we have completed

18:51in the last 25 years.

18:53Currently,

18:53there are nine live missions

18:54and operations.

18:55And the power of the EU

18:57is exercised,

18:59for instance,

18:59through our EU

19:00military assistant mission,

19:02where we have trained

19:0393,000 soldiers

19:04of the Ukrainian armed forces

19:06to date.

19:06And we will continue

19:07unrelentily,

19:08unrelentily doing this.

19:10And we will shape

19:11the future of the armed forces

19:12of Ukraine

19:14with the help

19:15of the 27 member states

19:16working coherently together.

19:19Okay.

19:19Sean Clansky,

19:20thank you so much

19:20for coming into us today

19:21on Your News

19:22on Europe Today.

19:23And for all other news

19:24and analysis

19:25on what's going on today

19:26in Strasbourg

19:26and across Europe,

19:27do visit euronews.com

19:28or reach out to us

19:29at europetoday

19:30at euronews.com.

19:31Take care

19:31and see you soon

19:32on Euronews.

19:33Euronews.

19:36Euronews.

19:38Euronews.

19:41Euronews.

19:42Euronews.

19:43Euronews.

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