EU slams Trump's economic policy

The European Union's economic and financial committee has criticised US President Donald Trump's economic policy and is worried that his efforts to boost protectionism pose a threat to the global economy, a German magazine reported on Saturday.

"The effects of that could be much more damaging than had been thought until now," Der Spiegel said, citing an internal paper from a committee of top officials from the finance ministries of EU member states.

It also said the Europeans were concerned by the Trump administration's spending plans, saying that because "public debt is already on a path that is not sustainable" this policy contained "short-term risks for the global economy".

It said lenders had recently avoided the United States. "The decline in international investments is a possible vulnerability," Der Spiegel cited the paper as saying of the United States.

It also said plans to reform taxes in a way that would especially reduce the burden on top earners would "exacerbate the challenges the US economy faces rather than alleviate them".