World Economy

EU Criticizes Trump’s ‘Risky’ Economic Policy

EU Criticizes Trump’s ‘Risky’ Economic PolicyEU Criticizes Trump’s ‘Risky’ Economic Policy

The European Union’s economic and financial committee has criticized US President Donald Trump’s economic policy and is worried that his efforts to boost protectionism pose a threat to the global economy, a German magazine reported.

“The effects of that could be much more damaging than had been thought until now,” Der Spiegel said, citing an internal paper from a committee of top officials from the finance ministries of EU member states, Reuters reported.

It also said the Europeans were concerned by the Trump administration’s spending plans, saying that because “public debt is already on a path that is not sustainable” this policy contained “short-term risks for the global economy”.

It said lenders had recently avoided the United States. “The decline in international investments is a possible vulnerability,” Der Spiegel cited the paper as saying of the United States.

It also said plans to reform taxes in a way that would especially reduce the burden on top earners would “exacerbate the challenges the US economy faces rather than alleviate them”.

Trump has listed his broad principles for tax reform as simplifying the US tax code and providing tax relief to middle-class Americans, ideas he has been talking about since his 2016 presidential campaign.

The European Commission declined to comment when contacted by Reuters. A spokesman for the Estonian Presidency said he was unaware of any paper singling out Trump.

Meanwhile, according to another report, Trump is now irrelevant to corporate America. That is the unequivocal message coming from some CEOs, and the Wall Street bankers who work most closely with them.

The new strategy by corporate executives to get the policies they once hoped Trump would deliver to them—tax reform, the repatriation of corporate profits, regulatory relief, and a comprehensive infrastructure plan—is to forget about Trump altogether and to work directly with congressional leaders to craft bipartisan legislation that Trump will have no choice but to sign.

These CEOs and bankers say they are focusing their attention almost exclusively on working with Mitch McConnell, the senate majority leader, and Paul Ryan, speaker of the house, who both have had their differences with Trump of late.

“The business community has been very aligned privately with leaders on the Republican caucus, both house and senate,” a Wall Street executive, who demanded anonymity, said.

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