Svantesson opens up about EU trade bazooka - always loaded

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Svantesson opens up about EU trade bazooka - always loaded
Photo: Wiktor Nummelin/TT

Finance Minister Elisabeth Svantesson (M) does not rule out using the EU's "trade bazooka" in the battle over Greenland. Commission President Ursula von der Leyen promises an "unwavering" response to the United States.

In a speech to the World Economic Forum (WEF) in Davos, von der Leyen calls the U.S. tariff threat against the EU "a mistake."

Especially between allies who have been together for a long time. The EU and the U.S. agreed on a trade deal last July. And in politics - just like in the business world - a deal is a deal. And when friends shake hands, it has to mean something, says von der Leyen.

Our response will be firm, united and proportionate, says the Commission President.

“Blackmailing us”

Finance Minister Elisabeth Svantesson is currently in Brussels to meet with her EU colleagues and promises that the EU will not back down.

"Sad and absurd that we have an American president who is blackmailing us. A new low point," says Svantesson on her way into the meeting.

If we are not tough and stand together now, what will be the next step? asks the Minister of Finance.

She does not rule out the EU resorting to its anti-coercive instrument - the so-called bazooka - which makes it possible to act in various ways against a country that is considered to be harming the EU's economy unduly.

I don't think it should be ruled out. We have that tool and can use it. It is always loaded - but you should only use it when necessary, says Svantesson.

Andersson: Unparalleled

Social Democratic Party leader Magdalena Andersson agrees that the response from the EU must be forceful.

United and powerful. What Trump is doing now is unprecedented.

At the same time, a trade war would be bad for the U.S., Europe, Sweden and the entire world economy, she continues. The government must therefore prepare for the situation to escalate further. She refrains from criticizing Prime Minister Ulf Kristersson (M).

I will work to support the government in this situation. If I have any comments, I will present them directly to him.

If Trump raises tariffs in February, he will violate the trade agreement with the EU, according to Andersson.

“Obstructs the view”

No decisions on EU measures are expected until after the extraordinary summit held in Brussels on Thursday evening. At the same time, Elisabeth Svantesson is concerned that all the focus on Greenland is causing other important issues to be overshadowed.

"It's like five-year-olds playing soccer: everyone is running after the same ball. This will obscure the view of other important issues, such as the Ukraine issue," says the finance minister in Brussels.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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