As Donald Trump prepares to enter the White House with his “America First” agenda, shockwaves are rippling across the Atlantic. In response, European Commission President Ursula von der Leyen is calling for a new era of EU integration and cooperation to sustain the bloc’s growth in an increasingly fractured global landscape.
The End of an Era
Speaking at the World Economic Forum in Davos, von der Leyen declared that Europe can no longer rely on the strategies that have propelled it forward in recent decades. In her view, the days of depending on booming global trade, cheap Russian energy, and outsourced security are over.
In the last 25 years, Europe has relied on the rising tide of global trade to drive its growth. It has relied on cheap energy from Russia, and Europe has too often outsourced its security. But those days are gone.
– Ursula von der Leyen
While von der Leyen did not explicitly name Trump, her vision for deeper EU collaboration appeared to be, at least in part, a response to the incoming US administration’s nationalistic bent. She noted that despite the world remaining highly interconnected, it has begun “fracturing along new lines” and the “cooperative world order” envisioned a quarter century ago has not materialized.
A Prescription for Unity
To navigate these new realities, the Commission president outlined a three-pronged approach for strengthening EU integration, building on recommendations from former European Central Bank chief Mario Draghi‘s productivity and growth report last year:
- Capital Markets Union: Von der Leyen lamented that €300 billion in EU household savings are invested overseas annually. She called for a “savings and investments union” to create innovative consumer investment products and keep capital within the bloc.
- Single Market Cohesion: Eliminating barriers in the EU single market would allow pioneering companies to operate under harmonized rules across all 27 member states, von der Leyen argued.
- Energy Union: Establishing a unified EU energy strategy and infrastructure could permanently end the bloc’s reliance on Russian gas imports, she asserted.
Notably, von der Leyen pledged that unlike other global powers, the EU would remain committed to the Paris climate accord, which she hailed as “the best hope of all humanity.” This contrasted sharply with reports of Trump preparing to withdraw the US from the landmark agreement.
Olive Branch to Washington
Despite advocating for a more unified and self-reliant Europe, von der Leyen made clear that the EU still seeks a constructive relationship with the incoming US administration. She highlighted the deep economic ties between the two powers, with European firms employing 3.5 million Americans and the US providing over half of the EU’s natural gas.
With Europe, what you see is what you get. We play by the rules. Our deals have no strings attached. The EU is ready to engage early, discuss common interests, and be ready to negotiate with the new US administration.
– Ursula von der Leyen
As the Trump era dawns and geopolitical shifts accelerate, the European Union finds itself at a critical juncture. By von der Leyen’s telling, the path forward lies in shedding outdated dependencies, leveraging the bloc’s formidable economic clout, and marching in lockstep toward a more integrated future. How Washington chooses to engage with this evolving EU will be one of the defining questions of the coming years.
