Euroleaders tasked European Commission President Ursula von der Leyen with developing a new strategy and timeline for strengthening the EU economy and raising of its competitiveness, the agencies reported, BNT reported.
Von der Leyen must find a way to improve the EU's financial, energy and telecommunications sectors by promoting investment and growth, said the closing statement from the bloc's informal summit in Budapest.
The revival of the economic competitiveness of the European Union at a level comparable to that of the US and Chinese economies becomes even "even more urgent", Von der Leyen pointed out at a press conference on the sidelines of the forum after its end.
The EU is trying to recover its economic growth after being hit by the COVID-19 pandemic and a sharp rise in energy prices following Russia's invasion of Ukraine in 2022.
"For all these years, such important decisions have been postponed waiting for a consensus," said former Italian Prime Minister Mario Draghi upon his arrival to participate in the meeting. "But there was no consensus. There was only weaker development, lower growth, and now stagnation."
Donald Trump winning another term in the White House adds even more importance to solving the growth problem, as the US president-elect wants to impose tariffs of 10-20% on all goods imported into his country.< br />
According to the Republican, the US is being unfairly treated by the EU, China and other trading partners, so he wants to fill his country's trade deficit by increasing its production capacity.
"The most important and urgent task" it is up to the EU to avoid a trade war with the US, Austrian Chancellor Karl Nehhammer said. "No one will benefit from it, it will harm all economies."
Belgian Prime Minister Alexandre de Cro pointed out that the EU and the US have a "common competitor" in the face of China, therefore, according to De Cro, if Washington wants to solve the issue of Beijing's trade practices, the US and the EU must do it together.
German Chancellor Olaf Scholz said that Europe "will continue to work well with the next American president".
Von der Leyen pointed out that the EU continues to receive too much liquefied natural gas from Russia and added that it could be replaced by American ones. The EU should interact with the US, consider common interests and then negotiate, she said.
The problems of the European economy are compounded by those in the various industrial sectors of Germany, which is the largest economy in the EU and is practically the engine of its growth, but has been stagnant for years. A new note of instability in all these processes is brought by the political crisis that has been shaking the Federal Republic for several days after the collapse of Chancellor Scholz's governing coalition.
The US election victory of former President Donald Trump has sent shivers across Europe, which fears a déjà vu of transatlantic tensions over defense spending and tariffs on EU goods sold in the US. What is at stake for Europe and the EU when Trump returns to the White House? Summarizes the European Newsroom – a platform for cooperation between 23 European news agencies, among which is BTA.
The impending return to power of Republican Donald Trump, former president of the United States of America, has sent shock waves across Europe and the European Union after he triumphed in the election against Democrat Kamala Harris on Wednesday. Foremost among the threats posed by Trump's re-election are fears that he could undermine European security and cut off support for Ukraine while unleashing a trade war with high tariffs on European goods.
At the same time, Europe is in a delicate situation, as on the same day the governing coalition of the continent's largest economy, Germany, collapsed over disagreements over spending and economic reforms.
A number of European leaders publicly welcomed Trump's victory, 78, expressing a willingness to cooperate to improve transatlantic relations and work together for peace. Among them were the cautious German Chancellor Olaf Scholz and the French President Emmanuel Macron, as well as the jubilant Hungarian Prime Minister Viktor Orbán, and also the Ukrainian President Volodymyr Zelensky called for a "just peace" in Ukraine.
In Serbia, President Aleksandar Vucic said he expected good relations with the US and that this victory would "have a healing effect on the global situation". He emphasized that he expects pressure from the US in connection with Serbia's close cooperation with China, which, according to him, Trump perceives as a strategic opponent of the US on the world stage.
In Bosnia and Herzegovina (BiH), society is deeply divided and different communities reacted differently to Trump's election victory. She was welcomed in Republika Srpska - the region with a Serbian majority. BiH Presidency members Željko Komšić and Denis Bečirović emphasized the importance of the US as a strategic partner and saw an opportunity to strengthen bilateral relations. Analysts, however, believe that US policy towards BiH - support for regional stability and integration in European and Western institutions - will remain unchanged.
The second deputy prime minister in the Spanish government, Yolanda Díaz, said that "Trump's victory is bad news for all citizens who understand politics as a tool that improves our lives, not one that poisons it with hatred and misinformation".
European leaders gathered on shaky ground
European Commission President Ursula von der Leyen recalled "the true partnership between our people, uniting 800 million citizens", and urged Trump to "work together on a strong transatlantic agenda that continues to deliver results for" all these people.
Hungary's ultra-nationalist Prime Minister Viktor Orbán welcomed Trump's victory and called on the European Union to develop a new strategy for Ukraine. Orbán is a close ally of Trump. Hungary is rotating president of the Council of the EU for six months until the end of this year.
Orbán denied being isolated in the EU.
"Let's get this straight. If you have a different opinion than (the other 26 countries of the European Union), that is not isolation. These are discussions, this is democracy," Orbán said at the end of the forum in Budapest.
This comment of his, however, caused laughter among those present, notes AFP.
Hungary's nationalist prime minister is rarely on the same page with his European partners. Orban regularly vetoes their decisions and criticizes Brussels on a number of issues - from aid to Ukraine to the rights of the LGBT community to migration, according to AFP.
"To be isolated is to not participate in discussions. And we are constantly fighting for them to hear our arguments," Orbán also said. He drew attention to the fact that the leader of no country of the European political community had boycotted the high-level meeting in Budapest, although it was preceded by months of tension.
"We will fight our battles back in Brussels", emphasized the Hungarian Prime Minister and promised "other surprises" during the nearly two months until the end of the Hungarian rotating presidency of the Council of the EU.
US defense commitments are called into question
The incoming US president has repeatedly questioned US security commitments to NATO, a 32-nation military alliance angered by low defense spending by European allies. Trump also criticized US President Joe Biden for providing military aid to Ukraine and claimed he was able to end Russia's war of aggression within a day of taking office, sparking fears that Ukraine could be pressured into handed over.
Trump has criticized some European allies for falling short of the alliance's defense spending targets, set at 2 percent of gross domestic product (GDP), and has cast doubt on whether the U.S. will fully meet its commitments under his leadership. However, Trump did not repeat previous threats to withdraw from the alliance.
The hand of cooperation with Trump to promote peace came from NATO Secretary General Mark Rutte. "Thanks to NATO, the US has 31 friends and allies who help advance American interests, multiply American power and keep Americans safe," said the former Dutch prime minister. "Together, NATO allies represent half of the world's economic power and half of the world's military power," he noted.
Rutte also said that Trump "demonstrated strong US leadership throughout his first term in office, which reversed the trend in European defense spending, improved transatlantic burden sharing and increased alliance capabilities.
Former Lithuanian Prime Minister Andrews Kubilius, who is expected to be officially confirmed in his new role as European defense commissioner, has indicated that European countries have increased their budgets since Russia invaded Ukraine in 2022. The bloc should spend more on rearmament because of threats from Russia, not because US President-elect Donald Trump is asking for it, he said.
Bulgarian MEP Eva Meidel (EPP) predicts "difficult negotiations" with the US on NATO defense spending, but pointed out that many countries have realized that 2 percent is the minimum that should be spent on defense. “The question now is whether we can allocate more than that percentage. We don't know what Donald Trump's attitude to NATO will be, whether he will want to reform (the organization), whether he will want to stay in it," she added.
Renewed threat of EU-US trade dispute
During the election campaign, Trump announced his intention to introduce new tariffs of 10 to 20 percent on EU imports into the US and as much as 60 percent on products from China. Its purpose is to strengthen the US as a manufacturing base and reduce the current account deficit.
In 2018, during his first term, the volatile US leader imposed tariffs on steel and aluminum imports from the EU, forcing the union to respond with higher tariffs of its own. "For me "duty" is a very beautiful word," he repeated during the election campaign this year.
The fact that European companies sell significantly more goods to the US than American ones to the EU is a thorn in Trump's side. The US was the most important export market for EU companies last year.
In Brussels, Trump's comments on tariffs are being taken very seriously. In the months leading up to the election, the European Commission tasked a group of officials with preparing the EU for both Trump and Harris to win, in an attempt to neutralize any painful fallout.
If Trump imposes new tariffs, the EU will likely respond with retaliatory tariffs on US imports. France's central bank governor Francois Villerois de Gallo said Trump's victory "increases the risks to the global economy" and will bring "probably more protectionism" and a larger United States budget deficit.
In Slovenia, business representatives also warned of possible excessive protectionism after Trump's victory. The Slovenian Chamber of Commerce and Industry emphasized that there should be no measures that would lead to the relocation of production to the USA and that would be in conflict with the principles of free trade.
The situation is likely to be particularly difficult for the German car industry and its suppliers. Along with China, the US is the largest non-EU sales market for manufacturers such as "Volkswagen" (Volkswagen), Be Em Ve (BMW) and "Mercedes-Benz" (Mercedes-Benz). The special tariffs are likely to have a significant negative impact on the automotive industry.
"Trump is fully aware that Germany sells a lot of cars to the United States and can limit any European response to (imposed) tariffs," said Sylvie Mattelli, head of the Jacques Delors Institute think tank.