After the elections in the USA, on regarding the EU, the other important thing is that Europe will start paying market prices for everything it receives from America, such as security. That is Trump's position. This was stated in the studio of “Day Live” on NOVA NEWS Prof. Svetla Boneva, Dean of the Faculty of International Economics and Politics at UNSS.
According to her, the interesting thing is what will be the long-term economic effects of the realization of the election of the president of the USA. “This thing has to be looked at in three aspects. First of all, what will be the effect on the American economy. It is known that when “America gets sick, the world gets sick”. In the second place, it is important what the economic effects will be for the relations between the EU and America, and in the third place what the economic relations between the US and China will be, the associate professor claims.
„During his first term, Trump could not win over the administration because he is a businessman. It comes from business, and there it works in a different way. Not the typical career politician. It comes with a different charge and approach to work. There was no good team. It was not adapted to what happens in an administration. It's not right to say she sabotaged him, but she wasn't a fan. In his second term, I no longer see this problem. He has already gained experience and I think he will better push his policies. What is more interesting is that he has attracted his own kind. That is, businessmen like Elon Musk”, added Boneva.
In her words, Trump's promise is that he will reduce taxes for companies and individuals. “Undoubtedly, if this happens, the revenues in the state will decrease. Here he has two options for actions. One is to shrink budget spending. If you do it drastically, the administration will not agree with it. Most likely, it will go to the second option, in which he will slightly reduce government spending, but at the same time will look for external financing from the financial markets. In this case, global debt markets will undoubtedly be affected by US policy in this regard. From now on, it follows what his economic advisers will advise him and how the Federal Reserve will react, concluded the associate professor.