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Is Trump on a collision course with the EU?

Wednesday, February 01, 2017 - 01:29

There are fears Donald Trump is on a collision course with the EU, after the U.S. President's top trade adviser accused Germany of using a ''grossly undervalued'' euro to gain a competitive advantage.

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Germany - the engine room of European growth. But according to Donald Trump, it's an engine fuelled by a weak currency. His trade advisor calling the euro 'grossly undervalued', and a way to let Germany exploit the U.S. A claim Angela Merkel denied. (SOUNDBITE) (German) GERMAN CHANCELLOR, ANGELA MERKEL, SAYING: "Germany is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did before the euro existed." Euro zone monetary policy is set by the ECB, whose ultra-easy stance has contributed to the euro's recent decline. But Team Trump sees it differently. The U.S. trade deficit with Germany was 77 billion dollars in 2015. A weak euro - and strong dollar - doesn't help the promise to put America first. Martin Schulz, Merkel's election rival, called Trump's policies 'un-American'. Donald Tusk, European Council President, said the new leadership was among the chief external threats facing Europe. (SOUNDBITE) (English) PRESIDENT OF EUROPEAN COUNCIL, DONALD TUSK, SAYING: "The change in Washington puts the European Union in difficult situation, with the new administration seeming to put into question the last 70 years of American foreign policy." Of greater concern to Europe, the next four years, and whether they're on a collision course with Donald Trump.

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Is Trump on a collision course with the EU?

Wednesday, February 01, 2017 - 01:29