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Tuesday, November 30, 2021

EU plans for ESM and tariff "battle" - Trump fires on military spending


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The tariffs imposed by Donald Trump unite EU leaders who are seeking a common answer to the "battle" of trade with the United States. At the same time, the Summit is unfolding its plans, gradually, for the completion of the banking union and the strengthening of the role of the European Stability Mechanism.

Across the Atlantic, however, the US president fired again at the EU countries' financial involvement in defense spending and NATO.

The president of the Commission Z.K. Juncker will meet in late July in Washington with US President Trump, given the support of the 28 states as the Summit was a single vision for recourse to the World Trade Organization (WTO)

"The EU must react to all actions that have a clear protectionist character," the 28-year-old said in a statement.

The chairman of the Commission criticized the attitude of the American president who seeks to negotiate bilaterally instead of the EU as a whole.

"I will go to Washington and present the European perspective. I do not like this idea… the US government (wants) to divide the European Union… when it comes to trade. "This is the responsibility of the European Union," Juncker told reporters. "We need to dramatize these relations." "We need these relationships. The US needs these relations. "I am not sure we will reach an agreement between the US and the EU, but we will try," he said.

For her part, German Chancellor Angela Merkel, assured that "we will try to do everything on our part to avoid a trade war."
"I am pleased that Europe appears to be absolutely stable and united against an unacceptable US attack on its European allies," said French President Emmanuel. Macron, referring to Brussels imposing additional duties on a number of US products in retaliation.
In the financial agenda, the final decisions on the completion of the banking union and the role of the European Stability Mechanism, the issue of the deposit guarantee and the European Monetary Fund will be referred to the meeting next December. Ε

According to the conclusions, an agreement was reached on a "banking package" that will allow "work on a roadmap to start political negotiations on a European deposit insurance scheme" to begin.

Military spending

The NATO summit will be held in Brussels in two weeks, and Donald Trump has continued to criticize countries such as Germany that do not spend enough on the alliance.

"Germany needs to spend more money. Spain, France (also). "What they are doing in the United States is not fair," Trump told reporters on the presidential plane.

Last month, Trump said he would "solve" the issue of countries not contributing to NATO, and criticized Germany in particular for not doing enough.

The member states of the Atlantic Alliance have agreed to increase their military spending to 2% of GDP on an annual basis by 2024, but Germany and Spain are among those whose spending is not expected to reach that figure. France plans to increase its spending by more than a third from 2017 to 2025 to achieve the Pact target.

Another aspect of the geopolitical turmoil is the possible withdrawal of US troops stationed in Germany, the newspaper reported. The Washington Post cited Pentagon study.

For many European officials, the possibility is a question mark. In other words, if Trump really intends to make this decision, is it a means of pressure in view of his Summit? NATO in Brussels, on the 11th and 12th of July.

Trump sent a "warning" letter to seven NATO members, including Germany, to recall their commitment to dedicate 2% of their GDP each year to military spending by 2024.

A White House National Security Council spokesman denied the allegations in a statement issued Friday stating "Similar, baseless allegations concerning Russia's intelligence have been made more than once.

US troops have been present in Germany since the end of World War II, and the country is the most important rear base for US operations in Africa and the Middle East.


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