European ‘predictability’ offers global competitive advantage: EU Economy Commissioner

Europe’s predictability and respect for rule of law provide the bloc with a competitive advantage amid the economic turmoil fueled by US President Donald Trump’s tariffs, Valdis Dombrovskis, EU Commissioner for Economy and Productivity, said on Wednesday.

“Already now, we see that our stability and predictability, respect for the rule of law is already proving its strengths,” Dombrovskis told Semafor’s Ben Smith at the World Economy Summit in Washington, DC. The edge has led to “a stronger investor interest in [European] denominated assets,” Dombrovskis said.

Investors have sold off US assets in recent weeks after Trump imposed tariffs on most imports to the US, and at one point, suggested that he may move to fire Federal Reserve Chair Jerome Powell. The president has since put some tariffs on hold, and said he does not intend to fire the Fed boss.

Countries are now scrambling to negotiate trade deals with the US and avoid punishing tariffs. Still, the US has not been clear about what it wants to achieve in trade talks, Dombrovskis said.

“Currently, indeed one would wish for more clarity on expectations on the US side,” he said. The EU has put forward “concrete proposals,” including free trade deals on cars and industrial goods, but so far, “we cannot get any positive feedback.”