United States

Rehn, left, with President José Manuel Barroso at Wednesday's press conference

It may have appeared that Olli Rehn, the EU’s economic chief, today was siding with Washington in the going transatlantic tussle over Germany’s current account surplus by launching an inquiry into whether the surplus was harming growth in the rest of Europe.

But Rehn went out of his way to make clear that he was no fan of the US Treasury department report that pushed the dispute into overdrive last month.

Speaking at a press conference announcing the European Commission’s decision to launch the “in-depth review” of Germany’s surplus, Rehn said the US Treasury’s report was “to my taste somewhat simplified and too straight forward”. 

The Brussels Blog team will be trying something new on Wednesday: a Twitter interview. Brussels bureau chief Peter Spiegel will be tweeting with the outgoing US ambassador to the EU, William Kennard, at 4pm Brussels time/3pm London time, asking questions from the account associated with this blog, @FTBrussels, with the ambassador answering from his official account, @USAmbEU

Actor Brad Pitt is interviewed at last week's Paris premiere of his new film "World War Z"

When EU and US officials launched new talks on a transatlantic trade deal earlier this year – an issue of such import that President Barack Obama announced it in his February State of the Union address – many thought the most contentious issues would be agricultural, like US exports of beef with synthetic hormones.

But even before the talks have formally begun, an altogether different issue has threatened to derail the deal: France’s insistence that the so-called “cultural exception” – the ability of European governments to establish quotas and subsidise their home-grown film and music industries – be completely off the table.

The US has insisted on no “carve outs” before the talks even begin, and EU officials worry that if cultural issues are put aside pre-emptively, it will give the Obama administration fodder to respond in kind with an issue that may be sensitive for a wider number of countries – like agriculture.

In an effort to bridge the gap, the Irish presidency last week circulated a new draft of the mandate that will be given to the European Commission in the trade talks which contains new language assuring France that, while audiovisual issues will not be excluded, there will be clear red lines in the EU’s negotiating position. Brussels Blog got its hands on the 12-page document, which is marked “trade-sensitive” across every page and “EU restricted” at top, and posted it here

It was buried amid the excitement of the European Union’s summit in Brussels, but I’d like to draw your attention to a revealing report published on Thursday on the subject of European access to strategic raw materials.  Prepared under the supervision of the European Commission, the report names 14 critical materials that Europe risks not having enough of in the future – with potentially far-reaching implications for Europe’s economic development, not to mention its defence and security.