Politico: EU admitted it has no way to fulfill promise made to Trump

(Patria) - The EU has admitted it has no way to fulfill the promise made to US President Donald Trump of an additional $600 billion in investments in the US economy, just hours after an agreement was reached in Scotland, according to Politico magazine sources.

The agreement between Trump and European Commission President Ursula von der Leyen, which averted a full-blown trade war between the EU and the US, also includes a promise of an additional $600 billion in European investments in the US in the coming years.

Commission officials clarified that this refers exclusively to private sector investments, without any contribution from public funds.

"This is not something the EU as a public authority can guarantee. These are the intentions of private companies," said one of the senior officials.

The Commission has not announced any incentives to ensure that the private sector actually reaches this level of investment, nor has it published a precise timeframe.

One official said the $600 billion figure was "based on detailed discussions with business associations and companies to assess their investment intentions".

Trump had threatened to impose 30 percent tariffs on most imports from the EU starting August 1, but during yesterday's negotiations, he agreed to a lower tariff of 15 percent.

The promise of $600 billion in investments was key to reaching that agreement.

The Commission emphasized that this involves money from private companies, not European taxpayers, which is a difference compared to the recent trade agreement between Japan and the US, in which Tokyo promised $550 billion in combined public and private investments.