New European Parliament reflects divided policy options

The results of the elections for the European Parliament are broadly in line with expectations. Although pro-European Union parties have won a majority of the seats, the EP is more fragmented than before with traditional center-right and center-left parties losing seats to Liberals and Greens, and Euroskeptic parties increasing their vote share. This is likely to make it more difficult for the EU to agree new trade deals and choose new leaders for EU institutions.

The heads of government of EU states met on Tuesday to discuss who will fill the top jobs.

The new EP and the EU leadership face a difficult international environment, especially on the trade front. The United States administration, already engaged in a tariff war with China, has its sights on the EU as well, describing the bloc as "a foe". The US has imposed 25 percent tariffs on European steel and aluminum and threatened to slap similar tariffs on European cars unless the EU opens up its agricultural market.