Trade conflict
US customs dispute: Who pays the Leyens billions of bills?
At its customs deal with the United States, the EU also prospect of purchases and investments. US President Trump now reveals his interpretation. Who pays the invoice in the end?
Around a week after the fundamental agreement has been concluded on the customs conflict between the EU and the USA that has been going on for months, there is a lot unclear. “I also look at some of this agreement with a few question marks,” Germany’s finance minister Lars Klingbeil (SPD) told Deutschlandfunk. A final trade deal must still be signed .x
The EU says that another $ 600 billion should be invested in the United States in the coming years. The EU Commission refers to the expression of interests of companies. A commission officer made it clear that this was a matter for private companies that the Commission as a public authority could not guarantee this. The Commission did not say which companies have expressed investment intentions and to what extent.
How does Trump interpret the commitments?
According to its President Donald Trump, the United States is at the freely available to investments. “You gave us $ 600 billion that we can invest in everything we want,” he said in a conversation with the broadcaster CNBC. Trump described the sum as a “gift”. This contradicts the information from the EU Commission.
When asked what happens if the EU does not deliver the investments in question, Trump threatened tariffs of 35 percent. Since the investment commitments are designed for several years, it is unclear when this point could be reached.
What do business representatives say about the 600 billion commitment?
At the request of the German Press Agency, the Business Association announced that the EU would already flow investments in the United States in the amount of around 2.4 trillion euros. “These investments will probably increase, but that also depends on the economic conditions in the USA,” said the association. Security and predictability are just as important for investors as access to qualified workers.
In addition, it was said that the agreement was not what you wanted. “We are not for the increased tariffs and have preferred a balanced agreement,” said Business Europe. Under the given circumstances, however, it is a better result than an escalation of the trading dispute.
What else did the EU Commission promise?
The EU has guaranteed Trump to buy US energy worth $ 750 billion by the end of its term. According to Commission President Ursula von der Leyen, liquid gas (LNG), oil and nuclear fuel from the United States should fill the gaps that will arise after the planned complete waiver of Russian gas and oil.
Who should pay the bill for this?
So far, it has not been known for example who should buy the American gas and the other energy sources. According to his words, Germany’s Vice Chancellor Klingbeil does not know whether it is about private investments, for example. These are things “who have agreed between Donald Trump and Ursula von der Leyen and where it is about clarifying the details”.
In a statement by the EU Commission, the authority announced that although the contacts between buyers and sellers can be simplified, “but of course the commercial decisions are among the companies”. At the same time, the United States would have to ensure unhindered access and sufficient production and export capacities.
How much energy from Russia does it fall away?
The EU Commission expects US energy worth $ 250 billion a year in the future. According to the information, it is currently around 100 billion. Part of the missing around 150 billion is to be achieved by bought energy from the USA instead of Russian gas.
According to official information, 15 percent of EU LNG imports from Russia still came in the first few months of this year. But even if this proportion were replaced entirely by the US LNG, that would only be a fraction of the promised increase. According to its own information, the EU imported fossil fuels from Russia worth 22 billion euros. In addition, according to a plan of the Commission, the EU only claims to have completely discontinued Russian gas imports from 2028.
Are there any other ways to achieve the billion-dollar commitment?
Several experts have already expressed doubts that the EU can achieve the promised increase solely through energy imports. According to the EU Commission, the third large pillar to reach the promised billions are imported of American nuclear technology.
The Commission also announced that there were forecasts, but “the final quantities and the division to oil, LNG and nuclear fuel as well as fuel services will depend on various factors”.
dpa
Source: Stern
