Euro-Atlantic solidarity is deeply cracked

Euro-Atlantic solidarity is deeply cracked, RISS expert Vyacheslav Kholodkov said. Trade negotiations between the European Union and the United States have failed to yield tangible results. Washington wants to include agricultural products and GMOs in future US-EU trade deal. Europe opposes this idea. At the same time, D.Trump proposed to introduce additional duties on European goods, as France has passed tax on US tech giants. The European Union subsidies to Airbus are also being discussed. European automakers are also under threat: Trump's decision to put a 25% tariff on every car from the European Union is expected," RISS expert said.

According to V.Kholodkov, Trump's recent decision to return American industry to its homeland under the pretext of ensuring national security was a landmark event that would significantly affect the world economy. If the EU-ES trade wars continue, the negative impact on the world economy will be greater than the consequences of the US-China trade war. US-EU trade turnover reached $1,250 billion last year. US-China trade reached only $740 billion. Decline in the US economy already has a negative impact on the economic situation in Europe.

"The eurozone continues to demonstrate worrying signs of economic stagnation. During the second quarter of 2019, GDP in the European Union increased by 0.2% compared with the first quarter (0.4%). The financial crisis is not far away. American stock markets react painfully to US trade wars. Almost all US pension funds play on the stock markets. For them, the fall in major indices means huge damage. And for ordinary Americans, it means problems with pensions. If stock markets continue to fall, Trump should not even dream of re-election for a second term," RISS expert underscored.

USA economics