BRUSSELS (Reuters) - U.S. fears about losing European defence contracts are unfounded, Brussels told Washington on Thursday after the Pentagon demanded the European Union curtail a new military pact that it sees as a potential threat to NATO.
In a May 1 letter seen by Reuters, the U.S. government warned the 28-country EU against going too far with defence integration and hinted at retaliation should American companies not be involved in future European weapons development.
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