*
European corporate spending could help re-industrialise US
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Trump backtracked on threat of 50% tariffs following call
with
Commission president
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Some German companies are losing interest in US
investment,
survey finds
(Updates with BusinessEurope confirming request, paragraph 6)
By Victoria Waldersee and Christina Amann
BERLIN, May 27 (Reuters) - European Union policymakers
have asked the EU's leading companies and CEOs to swiftly
provide detail of their U.S. investment plans, according to two
sources familiar with the matter, as Brussels prepares for trade
talks with Washington.
Members of the Confederation of European Business, also
known as BusinessEurope, an alliance of 42 federations across
the region, received a survey from the European Commission on
Monday. It requested information on upcoming U.S. investments
with an instruction to respond as soon as possible, one source
said.
A similar note seeking information on investment plans for
the next five years was sent to the 59-person European
Roundtable for Industry, a second source said, with a note that
the request came personally from European Commission President
Ursula von der Leyen.
The roundtable's members include the CEOs of companies
ranging from chip equipment maker ASML to chemicals
group BASF to software company SAP, as well
as automakers BMW and Mercedes-Benz.
BusinessEurope's members include employer and industry
associations representing an equally wide range of companies,
notably Germany's auto sector, as well as the aerospace and
pharmaceutical industries.
BusinessEurope confirmed it had been contacted to assist
with collecting the most recent data on European investment in
the U.S. to demonstrate the importance of EU-U.S. economic ties.
The European Roundtable for Industry did not immediately
respond to a request for comment, while the Commission declined
to comment.
The sources asked not to be named because they were not
authorised to speak publicly on the issue.
UNCERTAINTY SAPS INVESTOR APPETITE
The Commission, which oversees trade policy for the
27-nation European Union, is stepping up efforts to secure a
deal with the United States to end U.S. import tariffs on EU
goods, or at least prevent any increases.
The Commission is trying to establish what might satisfy
U.S. President Donald Trump, having offered a deal in which both
sides move to zero tariffs on industrial goods, and the EU buys
more soybeans, arms and liquefied natural gas.
Trump has made clear a chief goal of his tariffs is to
re-industrialise the United States, towards which European
corporate investment could contribute.
Some of the biggest investment announcements from Europe so
far have come from the pharmaceutical sector, with Swiss pharma
companies Roche and Novartis pledging $50 billion and
$23 billion respectively. France's Sanofi has said it
wants to invest at least $20 billion through 2030.
However, further plans are under threat by Trump's executive
order on drug pricing, Roche flagged earlier in May.
At least seven other European companies have said they would
increase investments in the U.S., but gave no specific details
on spending plans, a Reuters review of releases and executive
comments on earnings conference calls over the last two months
shows.
A survey by Germany's Chamber of Commerce and Industry this
month found that 24% of companies planned higher investments in
the U.S. in the coming year, but 29% were reducing their
investments.
An industry association source speaking on condition of
anonymity said the uncertainty caused by Trump's volatile policy
announcements had reduced interest in U.S. investment.
Italian tyre maker Pirelli said it had to suspend
its plans to invest further in the U.S. as it needed to ease
tensions with Chinese state-owned group Sinochem,
one of its major shareholders.