Ukraine’s president, Volodymyr Zelensky, thanked European leaders for “staying” with his country as they gathered for a defence summit in Brussels. Kaja Kallas, the European Union’s top diplomat, said that “all options are on the table” to boost the continent’s military spending. That includes grants, reallocation of European cohesion funds and changing fiscal rules. Earlier this week Germany’s probable next chancellor announced a fiscal revolution to revamp its defences.
Donald Trump said he would pause tariffs on imports from Mexico that comply with its trade agreement with America. The reprieve lasts until April 2nd. America’s president did not mention tariffs on Canada, which is part of the same trade pact. Earlier America’s commerce secretary, Howard Lutnick, said that tariff exemptions could be extended to all goods that fall under the America-Canada-Mexico deal.
The European Central Bank lowered interest rates by a quarter of a percentage point, to 2.5%. It was the bank’s sixth cut since June. The euro zone’s annual inflation rate was 2.4% in February, according to an initial estimate. But the ECB’s governor, Christine Lagarde, hinted that the bank could be more cautious about future cuts.
Mr Trump issued a “last warning” for Hamas to release all hostages held in Gaza. In a break with longstanding policy, the White House started direct engagement with the militant group that it deems to be a terrorist organisation. Hamas said that the threats amounted to support for Israel, encouraging the country to back out of the fragile Gaza truce.
France offered to share intelligence with Ukraine a day after America suspended its co-operation. France’s defence minister, Sébastien Lecornu, said his country had “resources” to help Ukraine fight off Russia’s invasion; he noted that Britain’s situation was “more complicated” as the country is in an “intelligence community” with America. On Monday America suspended military aid to Ukraine to pressure the country to negotiate with Russia.
Lithuania became the first country to withdraw from an international convention banning cluster munitions. The controversial weapons scatter hundreds of smaller “bomblets” over a large area. The Baltic country’s parliament approved the decision last July citing fears about Russia, which is not a signatory and has deployed the weapons in Ukraine. Dovile Sakaliene, the defence minister, said the move was intended as a “strategic message”.
Cyclone Alfred continued its passage across the Pacific, and is forecast to hit Brisbane, on Australia’s east coast, over the weekend. Though cyclones are not uncommon in Australia, Alfred—a category-two storm—stands out for its southern trajectory. A cyclone has not struck that part of Australia since 1974. An estimated 20,000 homes could be affected by flooding.
Figure of the day: 3.6m. The numbers of cars that America imported from Canada and Mexico last year. Read the full story.
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