The European Union and the Mercosur bloc of South American countries have formally signed a long-sought landmark free trade agreement.

The heads of state of all 27 European Union nations will meet for an "extraordinary meeting" later this week, European council president Antonio Costa said on Sunday.

European Union ambassadors reached a broad agreement on Sunday to intensify efforts to dissuade US President Donald Trump from imposing tariffs on European allies, while also preparing retaliatory measures should the duties go ahead,

European Defense Commissioner Andrius Kubilius observed that the United States had one army, not 50—and was far stronger for it.

European Union leaders meeting in Davos this week can be forgiven for fixating on the multiplying threats to the world order - such as U.S. President Donald Trump's bid to acquire Greenland - but they cannot afford to do so at the expense of their long overdue economic reform.

South American and European Union officials on Saturday signed a major trade deal, which they hailed as sending a powerful message at a time of tariff threats, global uncertainty and protectionism.