EU nations eye benefits amid Trump's trade tactics and tariffs
Selected EU countries could potentially gain from Donald Trump's policies and the trade war, in which the main adversaries will be the US and China, according to the consulting firm Crido. They also suggested that investments in European energy should prioritize reducing energy costs.
According to Crido, the decisions of US President-elect Donald Trump regarding state protectionism, such as increasing tariffs, might adversely affect the appeal of the European Union and Poland as investment destinations.
How some countries might benefit from Trump's policies
Despite this, some EU countries might benefit from Donald Trump's policies and the trade war, where the primary parties to the conflict will be the US and China.
"This will occur if trade transactions in the defense or energy sectors between European NATO countries and the United States, along with potential benefits for the American budget, lead to easing trade policies concerning the export of European goods to the US," they indicated.
As the authors noted, if this happens, EU countries could expect to attract some American investments into Europe, including those redirected from China.
In another scenario, which may overlap with the first, there is expected to be a "drive for stronger competitiveness and independence from the US by the EU, after years of being behind."
According to Crido, in both these scenarios, "Europe must invest in new technologies and innovation, but also reduce legal barriers and bureaucracy," which, in the company's view, negatively impacts European businesses. Additionally, they emphasized that investments in energy transformation should not focus "exclusively on ecological outcomes, but also on reducing electricity prices in EU countries."
The consulting firm notes that the decisive factor in choosing an investment location will be innovation, energy efficiency, and the availability of modern technologies. "Keeping pace with technological progress and providing cheap energy for a partner like the USA will require massive capital expenditure from EU countries," they stated. Thus, as they added, the European Commission is expected to initiate funds supporting energy, innovation, industry, and science.
