US threatens EU with retaliation over European preference in EU budget

Washington said that the competitiveness fund included in the budget would “impede” partnership with the US because of provisions favouring “made in Europe” products. In a document sent to EU legislators and seen by Euronews, the US has threatened the EU with retaliation if it does not scrap European preference provisions in its multiannual budget. EU member states are currently discussing the EU’s long-term budget (2028-2034), which includes a €402 billion fund dedicated to competitiveness that favours the production of key goods within the EU, including in defence. The measure would potentially exclude foreign firms from EU financing to protect...