EU-US Trade Talks And NSA : Britain and Sweden block crucial espionage talks between US and Europe - by Ian Traynor

NSA surveillance scanda

The first talks to soothe transatlantic tensions to be restricted to data privacy and Prism program after Britain and Sweden's veto 

Britain has blocked the first crucial talks on intelligence and espionage between European officials and their American counterparts since the NSA surveillance scandal erupted.

The talks, due to begin in Washington on Monday, will now be restricted to issues of data privacy and the NSA's Prism programme following a tense 24 hours of negotiations in Brussels between national EU ambassadors. Britain, supported only by Sweden, vetoed plans to launch two "working groups" on the espionage debacle with the Americans.

Instead, the talks will consist of one working group focused on the NSA's Prism programme, which has been capturing and storing vast amounts of internet and mobile phone metadata in Europe.

The disclosures in the Guardian over the past month have triggered a transatlantic crisis of confidence and threatened to derail crucial free trade talks between the EU and the US, also due to be launched in Washington on Monday.

The talks on Prism and data privacy have been arranged to coincide with the trade talks in an attempt to defuse the transatlantic tension. EU diplomats and officials say the offer of talks by the Americans is designed to enable the leaders of Germany and France to save face following revelations about the scale of US espionage – particularly in Germany, but also of French and other European embassies and missions in the US.

Other aspects of the dispute, such as more traditional spying and intelligence matters, will be off limits for the Europeans after Britain insisted the EU had no authority to discuss issues of national security and intelligence.

"It was decided. It finished successfully," said Dalia Grybauskaitė, the president of Lithuania, which has just assumed the EU's six-month rotating presidency and which mediated the sensitive talks in Brussels over the past two days.

Note EU-Digest: Several members of the EU-Parliament have said in relation to the above that the EU-Commission is showing "no balls" when it comes to confronting the Americans about their spying activities on European Citizens. As one parliamentarian noted: "who needs enemies when you have friends like this".

Read more: NSA leaks: UK blocks crucial espionage talks between US and Europe | World news | The Guardian