The EU is now officially a player in this year’s US elections: After talks in Washington failed, Pascal Lamy, the EU trade commissioner, has confirmed that progressive trade sanctions to counteract illegal US export tax breaks will be imposed from March 1st on.

After a stopover in Chicago, where he once again urged to keep more than an eye on the current Dollar weakness and Euro area interest rates (transcript in English | .doc), Gerhard Schroeder is having lunch with GW Bush today in order to further mend relations after the two leaders’ bitter disagreement over Iraq.

Europe has lost its leverage in the places that matter – Guardian columnist Martin Woolacott on Europe’s declining influence

France is sending humanitarian assistance to Haiti and is reported to be considering dispatching peacekeeping troops there as well

Palestine’s European aspirations: report in English (from EUobserver).

Palestinian Authority foreign minister Nabil Shaath sees Joschka Fischer’s suggestion of an EU/Near East free trade zone, and raises it. Speaking at the Munich security conference, Shaath suggested that an independent Palestine, after concluding peace with Israel, should join the European Union. (Der Spiegel; in German.)

According to the conservative German newspaper Die Welt(German, free registration required), the EU is about to send a team to Jerusalem to seriously investigate alligations of EU funding for the Palestinian Authorities being embezzled to the benefit of Palestinian terrorist organisations (also – EUObserver)

The Spiegel reports that Gerd Schr?der and George Bush are to kiss and make up (article in German). The White House has invited Schr?der to lunch, where he will discuss with Bush ‘the continuation of transatlantic relations’, as well as developments in Iraq, the Near East and Afghanistan.