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National

Prime Minister Anthony Albanese hopeful European Union free trade deal can be revived in coming months

Prime Minister Anthony Albanese hopes to see Australia resume free trade negotiations with the European Union in the coming months. (ABC News: Matt Roberts)

Prime Minister Anthony Albanese is hopeful free trade negotiations with the European Union may be revived in coming months, and has expressed a desire for Australian diplomats to return to Ukraine.

Free trade negotiations with the European Union have stalled, with just one meeting held in the past 12 months, a delay that Mr Albanese attributes to the Morrison's government's diplomatic fallout with France and its record on climate change.

Mr Albanese is attending the NATO summit in Madrid and has told reporters that Spain's President, Pedro Sánchez, expressed his support for negotiations around resuming during a bilateral meeting.

"It was clear that there were two impediments there," Mr Albanese said.

"Australia's relationship with France and the breakdown that had occurred in recent times, given France's leadership role in Europe.

"The second was Australia's position on climate change, which was viewed by Europe — and, indeed, by the world — as a handbrake on global action on climate change … clearly hindering our capacity to enter into relationships with our European friends."

Australia's Prime Minister said Mr Sánchez acknowledged the change of climate policy in Australia, just days before Mr Albanese is expected to meet French President Emmanuel Macron.

"That was something that was having an impact on our relations with our friends in Europe," Mr Albanese said.

France was furious when Australia cancelled a $90 billion dollar submarine contract with a French company and some EU politicians also expressed concerns.

In solidarity with France, European Commission president Ursula von der Leyen questioned whether the bloc could strike a trade deal with Australia.

Australia's second-largest trading partner subsequently postponed multiple rounds of negotiations.

"I am hoping in coming months to really see an acceleration of that," Mr Albanese said.

He described his upcoming meeting with President Macron as a chance to reset relations and "a concrete sign of the repair that's been done already".

Prime Minister Anthony Albanese arrives in Spain for NATO Summit.

'We would like a diplomatic presence in Ukraine'

The Prime Minister also joined the international condemnation of Russia's bombing of a shopping mall in Ukraine, which killed at least 18 people.

"This is a civilian target [and] this reinforces the atrocities committed in this illegal war of aggression by Russia and why it must be stopped," Mr Albanese said.

He said Australia was also one of several Western nations contemplating the return of diplomats to Ukraine.

Australia evacuated its embassy in Ukraine's capital, Kyiv, in February, shortly before Russia invaded its neigbour.

"Australia is considering [returning its diplomats] and it's one of the issues that has been examined in recent days and weeks and we will continue to do that," Mr Albanese said.

"We would like to have a presence on the ground there to assist and be able to provide that on-ground presence."

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