#BTC Not Happy? "Just Kidding" Agreement? | EU Admits It Cannot Fulfill $600 Billion Investment Promise to Trump

The EU has acknowledged its inability to fulfill its commitment to invest $600 billion in the U.S. economy, just a day after making that promise during a landmark trade negotiation held in Scotland.

Two EU officials stated that this funding would entirely come from private sector investments, over which the EU has no jurisdiction.

On Sunday, EU Commission President Ursula von der Leyen reached an agreement with U.S. President Donald Trump to avoid a full-blown trade war between the EU and the U.S. The agreement includes a commitment from the EU to invest an additional $600 billion in the U.S. over the coming years.

However, two senior officials from the EU Commission indicated on Monday that the funding would come entirely from European private companies, with no contribution from public investment.

A senior EU official stated, "This is not something that the EU as a public institution can guarantee; it depends on the willingness of private enterprises." The EU Commission has yet to announce any incentives to ensure the private sector meets the $600 billion investment target, nor has it provided a specific timeline.

Nevertheless, the official noted that the $600 billion figure was "derived from detailed discussions with various business associations and companies to understand their investment intentions."

Avoiding Tariffs

Trump had threatened to impose a 30% tariff on most EU imports starting August 1, but after Sunday’s negotiations, he lowered that rate to 15%.

The EU's promised €600 billion played a critical role in facilitating this agreement, but it soon faced criticism, claiming that such a large-scale investment would come at the expense of internal European investment.

The EU Commission emphasized that this funding would come from private enterprises, not European taxpayers, contrasting sharply with Japan's recent trade agreement, which committed to invest $550 billion in public and private investments in the U.S.

However, the notion that the private sector could provide such large-scale investment has been questioned.

"This part of the agreement is largely symbolic," Nils Redeker from the Jacques Delors Centre think tank told European politicians. "No one can tell private enterprises how much to invest in the U.S."