Brussels Edition: Trump envoy takes on ‘Made in Europe’

Donald Trump's ambassador to the EU issues a warning over EU's 'Made in Europe' ambitions

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Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you're signed up. Donald Trump's envoy to the EU took aim at the bloc's ambitions for a "Made in Europe" package for economic growth, saying that passage of the Industrial Accelerator Act that includes local-content requirements would be a "serious mistake." In an interview with Bloomberg Radio, US Ambassador Andrew Puzder said the plan — a key element of the EU's bid to boost growth and stem industrial decline — would risk damaging allies' defense efforts and weaken Ukraine's ability to fight Russia. Approval of the draft being prepared by the European Commission would also be a "a direct contravention" of the terms and spirit of a trade deal the US and EU struck last year, Puzder told us. "We've agreed not to have those kinds of preferences between our two countries," Puzder said. The EU and US have "a very intermixed defense industrial base," he added, noting that many companies producing weapons for NATO allies and Ukraine "have production capacities in Europe as well as the United States." The warning from an administration built on Trump's America-First rally cry dovetails with criticism of EU-preferential measures from the UK. London is lobbying countries including Germany, Italy and the Netherlands to push back against clauses that would exclude Britain from participating in public procurement bids. US Ambassador to the EU, Andrew Puzder, speaking to Bloomberg TV Puzder also chided the EU over its €150 billion ($177 billion) defense loan program, known as SAFE. The initiative prioritizes local purchases, but is open to non-EU countries on certain conditions. "To put in European preference language can be a very dangerous thing because it weakens our joint defense efforts," he said. As the commission prepares to unveil the package as early as next week, it's facing pushback from within different parts of the executive arm itself as well as some EU members. France has been one of the strongest proponents of the local-content requirements, which will affect everything from cars to manufacturing. But German Chancellor Friedrich Merz has warned that the rules should only be used for strategic sectors — and as a last resort.  The Latest Europe is rushing to safeguard its most critical institutions ahead of a presidential election in France in which surveys show a commanding lead for the far-right National Rally. Fourth-quarter negotiated wages, a key measure of euro-area pay growth, rose 3% from a year ago, supporting the ECB's view that there's currently no need to lower interest rates further. Europe's five biggest military spenders — UK, France, Germany, Italy, Poland — are set to jointly develop low-cost air defense weapons based on lessons learned on the battlefield in Ukraine, according to a draft statement that we've seen. Polish Foreign Minister Radoslaw Sikorski issued a public rebuke of President Karol Nawrocki, calling his suggestions that the country should obtain nuclear weapons "irresponsible and harmful." Germany is looking to dispel concerns that its planned €3 billion ($3.5 billion) order for attack drones from a Peter Thiel-backed defense start-up could pose a security threat due to the role of the controversial US investor. Seen and Heard on Bloomberg Lagarde at a Eurogroup meeting in Brussels. Photographer: Simon Wohlfahrt/Bloomberg ECB President Christine Lagarde's apparent openness to stepping down a year early is raising the alarm after a similar move by French central bank head Francois Villeroy de Galhau write Bloomberg Opinion columnists Lionel Laurent and Marcus Ashworth. The cumulative effect is of an establishment battening down the hatches ahead of next year's presidential election in France and election-proofing stewardship of the single currency. Chart of the Day Denmark's economy barely expanded at the end of last year as a slump in the pharmaceutical industry, dominated by Novo Nordisk, weighed on overall growth. GDP rose 0.2% in the fourth quarter from the previous three months, adjusted for seasonal swings, Statistics Denmark said today in a preliminary reading. It was the slowest pace in three quarters. Coming up CDU party delegates vote on party leadership including Friedrich Merz as chairman this afternoon Latvian central-bank chief Martins Kazaks speaks this evening Paris International Agricultural Show begins tomorrow Final Thought Pedro Sanchez Photographer: Michael Nagle/Bloomberg Spain is planning to build more political and financial links to China as the US under Trump upends the global economic order. The tactic is part of a new Asia-Pacific strategy document that outlines Madrid's priorities for the next three years, calling for more high-level meetings and economic exchanges between the two nations, while encouraging other European countries to coordinate on their relationship with Beijing. Prime Minister Pedro Sánchez will visit China from April 13 to 15, marking his fourth appearance in just over three years. Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. 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