To be sure, the United States has a perpetual trade deficit. In 2016, the country imported over $500 billion more in goods and services than it exported, and the United States has not had a surplus since 1975. Yet focusing solely on a country’s trade balance provides a sharply limited view of its economic health.
In 2015, the total value of US goods and services trade with the EU (27) reached $869.5 billion. The United States had $589.7 billion in total bilateral goods trade with the EU (27), its second largest goods trade partner. US trade in services (exports and imports) with the EU (27) was $279.8 billion.
The United States and Europe are each other’s primary source and destination for FDI, with the US providing the largest source of third-country FDI in the European Union (EU) on the basis of stock and flow. In 2015, the FDI net inflow accounted for 2.1 percent of US gross domestic product (GDP) and 3.4 percent for the European Union.
The European Union’s (EU) Stability and Growth Pact requires Eurozone countries to annually lay out their fiscal plans for the following three years. The European Commission (EC) then compares the member states’ reports with its own projections and those produced by independent bodies, such as the International Monetary Fund (IMF), to evaluate whether the member states are on track to reach their Medium-Term Budgetary Objectives (MTOs). It is important to note that Eurozone countries’ macroeconomic forecasts usually diverge, sometimes significantly, from the reports produced by the EC and the IMF.