Europe’s midweek news cycle was marked by a mix of geopolitics, royal pageantry, and economic strain.
The European Commission moved to harden its stance on Israel, US President Donald Trump enjoyed a lavish state welcome at Windsor Castle, UK inflation figures offered no relief for households, and Brussels prepared to accelerate its phase-out of Russian fossil fuels.
Brussels eyes suspension of Israel trade perks
The European Commission has called for the suspension of Israel’s preferential trade access to the bloc, in its strongest response yet to the ongoing humanitarian crisis in Gaza.
Under the proposals outlined Wednesday, parts of the EU-Israel Association Agreement would be frozen, reimposing tariffs on some Israeli goods and stripping away mutual benefits such as bidding rights for public contracts and intellectual property protections.
The Commission also called for sanctions on two far-right Israeli ministers, Itamar Ben-Gvir and Bezalel Smotrich, alongside measures against violent West Bank settlers and 10 Hamas leaders.
But the plan faces political hurdles, with Germany reluctant to back such a move given its longstanding support for Israel.
Without majority support from member states, the measures could stall despite pressure on Brussels to use its economic weight to influence the Netanyahu government.
Trump greeted with royal pomp in Windsor
In the UK, President Donald Trump received a ceremonial welcome at Windsor Castle on the first full day of his state visit.
Arriving by ornate carriage with First Lady Melania Trump, the president was greeted by King Charles, Queen Camilla, and the Prince and Princess of Wales before inspecting troops assembled on the immaculate lawns of the castle quadrangle.
The display of royal pageantry set the tone for a trip that will combine tradition with hard-nosed diplomacy.
Trump is expected to push trade and investment deals while using the visit to showcase the depth of the “special relationship” as his administration presses allies in Europe to align more closely with US economic and foreign policy priorities.
Inflation steady, food prices climb in UK
Back in Britain, official data showed consumer price inflation holding steady at 3.8% in August, offering little relief to households facing persistently high costs.
The Office for National Statistics reported that airfares and hotel prices pulled down the index, but rising fuel costs and a sharp increase in food prices offset the declines.
Food inflation rose for the fifth month in a row, climbing to 5.1%, with particularly steep increases in chocolate, beef, butter, and coffee.
Markets expect the Bank of England to keep interest rates on hold at 4% when it meets on Thursday, with inflation still nearly double its 2% target.
EU to accelerate phase-out of Russian fossil fuels
Elsewhere in Brussels, Commission President Ursula von der Leyen said the bloc will propose speeding up its exit from Russian fossil fuels after a call with President Trump.
The upcoming 19th sanctions package will include measures against Russian banks, energy and crypto assets.
While the EU had previously set a 2028 deadline for ending purchases of Russian oil and gas, von der Leyen said the timeline will now be brought forward.
The move comes amid US pressure on Europe to intensify its economic squeeze on Moscow more than three years into the war in Ukraine.
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