U.S. Officials Threaten Consequences Over Defense Initiatives

The U.S. has told its European partners that a new E.U. military agreement could spark retaliation if it hurts American defense companies, reports Reuters. 

If Permanent Structured Cooperation (PESCO) imposes restrictions on the participation of U.S. firms in Europe, Washington may be forced to respond in kind, Defense Dept. undersecretaries Ellen Lord and Andrea Thompson wrote to E.U. foreign affairs chief Federica Mogherini on May 1.

The letter also expressed concern about the...