Australia news live: Albanese to meet von der Leyen in Rome amid hopes EU free-trade deal can be revived | Australia news

Hopes of EU trade deal revival as Albanese meets von der Leyen

Dan Jervis-Bardy

Anthony Albanese and the European Commission president, Ursula von der Leyen, will meet on the sidelines of Pope Leo XIV’s inauguration amid fresh hope a free-trade deal with the bloc can be revived.

Albanese is also hoping to hold talks with the Ukrainian president, Volodymyr Zelenskyy, and the new Canadian prime minister, Mark Carney, after the inaugural mass in Vatican City, due to start at 10am local time (6pm AEST).

Australia walked away from talks on an EU trade deal in 2023 after refusing to accept proposed restrictions on agricultural products, including beef, sugar and dairy, and limits on the use of terms such as feta and prosecco.

But the two parties could be brought back to the negotiating table as Donald Trump’s tariffs threaten to reshape global trade.

Speaking to reporters in Rome ahead of the inauguration and meeting with von der Leyen, Albanese reportedly said Australia was “up for a deal but not any deal at any price”.

We’re up for a deal that’s in Australia’s national interest. The last time around, we weren’t able to achieve breakthroughs on agriculture.

Albanese’s potential one-on-one meeting with Zelenskyy comes after news of Oscar Jenkins’ 13-years jail sentence in Russia for fighting alongside Ukrainian forces.

The prime minister described the sentence as an “outrage”.

It is a continuation of the way that they [Russia] have behaved, abrogating their international responsibilities.

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Key events

Interest rate cut tipped despite Trump tariff backdown

The Reserve Bank is widely expected to deliver a second interest rate cut as global trade uncertainty threatens to rain on Australia’s economy.

A clear majority of economists believe the Reserve Bank of Australia will cut interest rates at its next meeting, but developments abroad mean it’s no longer a sure thing.

US President Donald Trump recently slashed tariffs on China to 35 per cent from a whopping 145 per cent, prompting Beijing to lower its own tariff wall and triggering a rebound in values for riskier assets such as shares.

Following strong labour market data released on Thursday, the market now predicts three rate cuts by year’s end, down from four priced in at the start of the week.

But traders are still nearly fully priced in for a 25 basis point cut to the cash rate, which sits at 4.1 per cent, on Tuesday.

Almost nine in 10 economists agreed in a survey by comparison website Finder.

Economists at all four big banks also expect a cut, with NAB still holding onto its prediction of a turbocharged 50 basis point cut.

The central bank will also update its quarterly economic predictions on Tuesday in an otherwise quiet week on the data front.

The Victorian government will unveil its budget on the same day, with ratings agency S&P Global warning the nation’s most indebted state to rein in spending or risk seeing its AA credit rating downgraded further.

AAP

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