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Germany’s Merz floats possibility of EU-India trade deal by end of January

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January 12, 2026

German Chancellor Friedrich Merz floated on Monday the possibility that the European Union and India could sign a landmark free trade agreement by the end of January, a move that could reshape global trade ties as protectionism rises and US-India talks remain stalled.

German Chancellor Friedrich Merz walks with India’s Prime Minister Narendra Modi during his visit to Gandhi Ashram in Ahmedabad, India, January 12, 2026 – REUTERS/Amit Dave

Top EU leaders would travel to India to seal the deal if negotiations wrap up in time, Merz told reporters in the western Indian city of Ahmedabad on Monday after meeting Indian Prime Minister Narendra Modi.

“In any case, they will take another major step forward to ensure that this free trade agreement comes into being,” Merz said during his first trip to India since becoming chancellor. European Union officials have yet to comment. 

A trade deal, under ⁠discussion for years, is seen as a chance for both sides to strengthen economic ties and cut reliance on China and Russia. Bilateral trade between India and the EU totalled 120 billion euros ($140.21 billion) in 2024, making the bloc ⁠India’s biggest trading partner. 
 
Talks have gathered pace since the US, under President Donald Trump, raised tariffs on Indian goods and pressured New Delhi to stop buying Russian oil. A separate India-US trade deal collapsed last year after a breakdown in communication between the two governments. 

The EU-India pact would follow on the heels of the European Union’s recent agreement with South America’s Mercosur ‍group and support Europe’s ‌push to build new trade networks as global rules shift. Indian Trade Minister Piyush Goyal, speaking at a separate event in the western state ⁠of Gujarat, said an agreement was almost at its ‌final stages.

German officials told Reuters the latest talks between Merz and Modi were “very intensive,” raising hopes for a breakthrough. The EU is ‌pushing for steep tariff cuts on cars, medical devices, wine, spirits, and meat, along with stronger intellectual property rules, while India is seeking duty-free access for labour-intensive goods and faster recognition of its growing autos and electronics sectors.

An Indian official familiar with the talks told Reuters last month that disputes over steel, carbon levies, and market access would need further compromise. The two countries signed agreements on minerals, healthcare, and artificial intelligence ‍during Merz’s visit.

Germany relies on India as a growing market and the German chancellor said the world is experiencing “a renaissance of unfortunate protectionism” that harms Germany and India. He did not name any countries.  

While the US has imposed tariffs on trading partners, China introduced ⁠export controls on minerals used in areas such as autos, causing months of supply ⁠chain disruption last year due to the U.S.-China trade war and affecting German carmakers. 
Beijing also slapped restrictions on some semiconductors widely used in the car industry after the Dutch government’s decision to seize control of Chinese-owned chipmaker Nexperia. 

© Thomson Reuters 2026 All rights reserved.



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Underwear and lingerie producer Trucco Tessile buys rights to Italian homewear brand Happy People

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Nicola Mira

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January 13, 2026

Major developments are on the cards in 2026 for Trucco Tessile, the Cuneo-based Italian producer of pyjamas, underwear and loungewear. Trucco Tessile has bought, for an undisclosed amount, Italian homewear brand Happy People, renowned for its cheerful, insouciant, creative and colourful style. “The acquisition marks a new chapter in the history of [Trucco Tessile], as the group aims to continue to grow and innovate while abiding by its values of quality, creativity and care for people,” said Agostino Trucco, CEO of Trucco Tessile since January 1, speaking to FashionNetwork.com.

Happy People

Happy People was created with the goal of fostering joy and good cheer, and is well-known for its family-oriented collections and its distinctive depictions of two characters, a wolf and a sheep, that have become symbols of affection, close familiarity and good humour. “Happy People is much more than a brand, it’s a way of looking at life with joy,” said Trucco. “Welcoming [Happy People] into our family means believing in the value of emotions, in the power of a smile, and in the strength of stories that unite people. It’s a development that looks to the future with confidence, and goes hand in hand with our desire to keep innovating without losing our sense of humanity,” he added.
 
“[Happy People] is a label that has made history in its segment, so it cropped up on our radar. Let me underline that the company wasn’t going through a rough patch, business was buoyant, the owners simply decided to sell,” said Trucco. “As a result, we’re dealing with a brand (since we bought just the brand name – and only the rights relating to the apparel, pyjamas and underwear categories – we didn’t buy the company that produces Happy People) that is sound and well-established. It has an extremely strong identity, and is an interesting complement to our portfolio,” he added.

Trucco Tessile’s new acquisition is vertically integrated and has a strong product focus, complementing the Cuneo group’s nightwear know-how. The group’s portfolio also includes Julipet, a high-end men’s underwear brand, Boglietti, a women’s lingerie brand whose positioning was recently elevated from the market’s mid-range to the premium segment, and Alpina, a mid-range women’s and men’s underwear brand. “Style-wise, Happy People is entirely different from Boglietti, which targets elegant, understated and sophisticated women. Happy People’s brand narrative is fun, amusing and family-friendly,” said Trucco. “Besides, Happy People is a concept that goes beyond a mere product, pyjamas, and tells a love story – a strictly platonic one – between a wolf and a sheep.”

Happy People
Happy People

Happy People’s household linen range remains instead, as before, the property of Italian Textile Company, based in Ferno, near Varese. Trucco Tessile is planning to expand Happy People’s retail footprint both in Italy and abroad through the wholesale and e-tail channels. The brand is currently distributed via some 400 stores in Italy, Belgium, Spain, Germany and Greece.

In 2024, Trucco Tessile generated a revenue of €9 million, with e-tail sales growing and accounting for 10% of the total. “Through the new three-year business plan I have drawn up,” said Trucco, “we’ll try to align our three channels, i.e. e-commerce, the DTC channel consisting of our physical stores (we have a dozen) and the wholesale business, to become as much as possible an omni-channel company.”
 
As for Trucco Tessile’s other brands, Boglietti has developed a range that utilises natural fabrics like cotton, cotton-linen and cotton-bamboo blends, characterised by an “elegant, pared-down style consistent with the brand identity strategy we have implemented for the underwear and nightwear lines,” said Trucco.

Happy People

Julipet’s new nightwear is an ode to colour: “we’re well aware that blue is the colour of the night and of Julipet, and is synonymous with elegance, but we’re bringing alternatives to the market. Our watchwords this year are colour, colour, colour. The same goes for [Julipet] swimwear, and of course there’s a whole range of Julipet apparel, chiefly travelwear, featuring ultra-resistant, breathable, fresh and lightweight high-tech fabrics. Our new Oxford line, with a dozen SKUs, is absolutely innovative. It’s a highly streamlined range in a wide variety of colours, whose key feature is the use of high-tech  fabrics with specific functions. The garments are comfortable, extremely functional, and highly suitable for people who travel a lot,” said Trucco.
 
Alpina, which operates a handful of monobrand stores in Piedmont and is designed for everyday use, has functionality as its key feature. The brand’s hero products are its signature pyjamas, but Trucco Tessile is working to expand Alpina’s assortment to include sportswear, starting from the Fall/Winter 2026-27 season.

Copyright © 2026 FashionNetwork.com All rights reserved.



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Sophie Fontanel receives Legion of Honor

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January 12, 2026

Le Tout Paris celebrated France’s most famous fashion writer Sophie Fontanel this weekend, when the noted scribe was awarded the Chevalier de Légion d’Honneur.

Sophie Fontanel

 
Presented inside the Left Bank’s most happening art space Nemmours Gallery, there was practically designer gridlock at the event: with Jean Charles de Castelbajac, Simon Porte Jacquemus, Alexandre Mattiussi, Rabih Kayrouz, Elite Top, and Ines de la Fressange all in attendance.
 
After celebrating her 21 published books, dating back to her 1995 debut Sacré Paul, French costume designer and film producer Rosalie Varda pinned the famed medal onto the lapel of the classic two-button black Yves Saint Laurent jacket Fontanel wore with white sailor pants.

Sophie Fontanel with guests
Sophie Fontanel with guests

 
“When I acquired this jacket in a vintage store, the boutique owner told me when I put it on that it would lead to something historic. And looks like he was right,” joked Fontanel, whose invitation read Sacré Sophie.

In a novel touch, the new chevalier pinned personal notes to scores of guests on the gallery’s white walls. “Honour to Veronique Nichanian for our so French stateless voyages,” read one referring to Hermès soon to depart menswear designer. “Honour to Simone Porte Jacquemus, for a regard that says everything,” or “Honour to (documentary filmmaker) Loïc Prigent for the fraternité carried out to this extent.” While de Castelbajac was lauded for his “true nobility. A smile.”

Notes by Sophie Fontanel
Notes by Sophie Fontanel

 
Colleagues were also kindly treated: Madame Figaro’s fashion editor Delphine Perroy praised “for the smile that heals everything,” while yours truly had a note that read: “Honour to Godfrey Deeny for the tender authority.”
 
In an impressive career, Fontanel has been editor in chief of French Cosmopolitan; TV star Nulle part ailleurs- France’s number one talk show of the 90s; Grand Reporter of Elle; and, for the past decade, columnist for news weekly L’Obs.  Plus, her pithy commentary on all things fashionable has won her 489K followers on Instagram.

Sophie Fontanel's note to Godfrey Deeny
Sophie Fontanel’s note to Godfrey Deeny

 
Not bad going for a lady whose grandmother fled the Armenian genocide to France a century ago clutching, legend has it, a page of Vogue up her sleeve.

Copyright © 2026 FashionNetwork.com All rights reserved.



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Dior names Josh O’Connor as latest brand ambassador

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January 12, 2026

The house of Dior has named UK actor Josh O’Connor to be its latest brand ambassador, joining soccer legend Kylian Mbappé in the brand’s style diplomatic corps.

Josh O’Connor for Dior – George Eyres

 
“Dior is delighted to welcome Josh O’Connor as the new ambassador for Jonathan Anderson’s collections,” the Paris-based house said in a release.
 
The actor had previously been a presence at several runway shows of J.W. Anderson, who was appointed overall creative director of Dior in June 2025.

O’Connor first grabbed attention and international fame with his performance as Prince Charles in hit series The Crown- for which he won a Golden Globe Award for Best Actor .
 
Subsequently, he has garnered critical acclaim in a variety of films, including Luca Guadagnino’s Challengers, in which he wore clothes designed by Anderson in this studied melodrama about competing players and emotions in tennis.
 
O’Connor has also worked with Guadagnino in an ad campaign for Aston Martin, shooting an elegiac road movie short in sun-dried Sicily.

“Josh O’Connor embodies a singular, sensitive, and undeniably modern expression of masculine elegance, perfectly in sync with the contemporary Dior style,” added Dior about the Cheltenham, England-raised thespian.

Copyright © 2026 FashionNetwork.com All rights reserved.



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