EU Awaits Trump’s Return but is Ready to Collaborate with the U.S. – Miranda Sarmento

On Monday, Portugal’s Finance Minister emphasized the necessity for the European Union to wait for the inauguration of Donald Trump as the new American President before assessing his policies, especially regarding trade. He underscored the importance of being prepared to collaborate with the United States.

“We need to calmly observe the decisions of the Trump administration as he takes office today. Over the next weeks and months, we will discern his stances on various matters, particularly regarding trade policy. It’s unclear whether he will adopt a more aggressive approach solely with China or extend it to Europe as well, and we need to consider the types of products involved in these exchanges,” Joaquim Miranda Sarmento stated.

Addressing Portuguese reporters in Brussels ahead of the Eurogroup meeting on the day of Trump’s inauguration, Sarmento reaffirmed Europe’s readiness to maintain its strategic partnership with the United States, a relationship that has endured for decades.

“The main priority for Europe should be addressing its internal challenges, such as low productivity and competitiveness. The productivity gap with the United States has notably widened over the past two decades, so Europe must focus on improving its productivity, fostering innovation, enhancing value creation, and optimizing financial services, all while striving for a strong partnership with the United States,” he added.

When asked about the prospect of allocating 5% of Gross Domestic Product (GDP) for defense under NATO commitments, Sarmento expressed skepticism, stating, “In the coming years, this will not be feasible.”

“Most European nations face challenging budgetary situations, with significant deficits—France being a prime example, and even Germany is not exempt. Consequently, these countries have tighter financial constraints than Portugal does,” he concluded.

Donald Trump, 78, successfully won the presidential election in November 2024 and is now set to assume office. However, concerns are already surfacing within the European Union regarding potential impacts on transatlantic relations, reminiscent of the setbacks experienced during his previous administration.