Europe EU discusses competitiveness after US election

Following Donald Trump's victory in the US election, the heads of state and government of the European Union will discuss the continent's economic future this Friday (10.00 a.m.). Specifically, they will discuss how the competitiveness of European companies can be strengthened, especially in the face of competition from China and the USA.

The prospect of Trump as the new US President reinforces the urgency of the debate between Chancellor Olaf Scholz and his counterparts in Budapest. During the election campaign, Trump announced his intention to introduce new tariffs of 10 to 20 percent on imports from regions of the world such as Europe. In doing so, he wants to strengthen the US as a production location and reduce the current trade deficit.

The German automotive industry and its suppliers could be particularly hard hit. Together with China, the USA is the most important sales market outside the EU for manufacturers such as Volkswagen, BMW and Mercedes-Benz. Special tariffs would probably have a considerable negative impact.

The debate is based on an analysis by the former head of the European Central Bank, Mario Draghi. This shows weaknesses as well as options for action for the international community.

SDA