The EU recognizes that Trump’s victory forces it to strengthen its competitiveness, but refuses to take concrete steps International

Donald Trump’s victory in the United States has activated all alerts in the European Union. This is a common perception at the top of the community club. The return to the White House of Republicans, who have promised to raise tariffs on European products and who threaten to leave the Twenty-Seven alone in supporting Ukraine, shows the need to take immediate action. European leaders seek to leapfrog in defense by equipping themselves with more tools to guarantee economic security and sovereignty, increasing productivity to boost the competitiveness of the economy, and ceasing to depend on the US ally’s patronage. But the reality is that when it comes to agreeing on concrete guidelines that address the enormous challenges that are on the table – and finances above all – heads of state and government drag their feet.

According to a statement, the EU will meet in Budapest this Friday to “explore and take advantage of all financial tools and instruments”, as well as new formulas to boost European competitiveness, industry and the green and innovative transition and military needs. Agreed to “develop”. Signed by the leaders. He adds, “Behaving as if it’s no longer an option.” But according to multiple diplomatic and community sources, European leaders have not set any deadlines for these “new instruments”, finding their promises too “volatile and vague”. “Despite the urgency of the moment, there is a lack of ambition,” says one senior community official. “It’s a techno salad of elements,” says another.

The sense of urgency is now “even greater than a week ago,” commented Mario Draghi, former President of the European Central Bank. “Europe can no longer postpone decisions, as has been seen all these years, because we have to Consensus was not expected, it only brought low development, low growth and the stagnation we have today, so I hope we will find a united spirit to find the best part of these changes,” Italy’s former president said. The Prime Minister, who enjoys a reputation as a great statesman, presented European leaders this Friday with his long-awaited report on European competitiveness, including a common debt. The document points to the need to raise investment of 800,000 million euros per year to regain lost ground with the United States and China.

Furthermore, according to an estimate by the Institute of German Economics, a 10% or even higher increase in US tariffs on all European imports could cost the Union around €180 billion. The European Commission will present a strategy in June to implement the Draghi report, President Ursula von der Leyen announced this Friday. But this deadline does not match the urgency that leaders talk about. The head of the Community Executive emphasizes that some progress has been made in recent years, but at the same time weak points must be identified and work must be done to resolve them.

An attempt was made to make a far more ambitious declaration of intent at the Budapest meeting, but EU leaders could not agree on formulas to pay the heavy bill of not being left behind. There is no desire to put a normal debt instrument on the table to finance this at this time. Most leaders prefer to wait for the next multi-annual European budget, which is expected to be presented next summer. Or even the white paper on defense prepared by von der Leyen, which, however, is in favor of first clarifying on which projects and plans the money should be spent. Only later will we have to figure out how to bring them together.

Diplomats say it was Thursday’s summit – hosted by Hungary and the last with Charles Michel as European Council president, who will hand over the post to Portuguese Antonio Costa in December – not to take important decisions, but To debate strategically. It was also thought that given Prime Minister Viktor Orbán’s stormy start to his six-month EU presidency in Budapest with meetings with the leaders of Russia, Vladimir Putin and China, Xi Jinping, the leaders would refuse to attend the summit. Will boycott. Let’s talk about Ukraine. However, the Republican candidate’s victory in the US could be a catalyst for the EU to raise its ambitions by uniting ahead of the December summit just weeks before Trump’s inauguration.

One problem is that the 27 member states do not share a vision on how to approach the next US president. Compared to 2017, when Trump began his first term, the EU now has many more allies at the helm. This will be a big challenge for this legislature.

Agreement with the new White House

Von der Leyen assured that, for now, the European strategy regarding the new Trump administration should be to find common points and then negotiate. And one of those points, following the transactional spirit that governed the Republican’s first term, might be to strike a deal to buy more American liquefied gas, an option that would also stop buying Russian gas. “This is something that can be put on the table,” the German conservative politician said at a news conference in Budapest.

“One thing is clear, as the EU, as Europeans, we must do whatever is necessary for our security,” said German Chancellor Olaf Scholz, whose coalition government was weakened by the collapse of the Liberals. ” Italian Prime Minister Giorgia Meloni said, “Don’t ask what the United States can do for you, ask what Europe must do for itself.” “Europe has to balance competitiveness, tariffs…” the Ultra leader said.

Heads of state and government believe that Draghi’s report – and which was presented a few months ago by Enrico Letta, also a former Italian prime minister – is a good roadmap. But there is a long distance from theory to practice.

“In the economic sphere, Draghi has calculated: Achieving competitiveness will be costly at first,” says Daniela Schwarzer of the Bertelsmann Foundation. “If you do not want to accept American offers, or bow to their threats, you need the financial flexibility to withstand the conflict. Disappointment may thus create the possibility of transforming Europe so that it is subsequently in a more successful position, not only compared to the United States, but also compared to other global actors; and in defending against threats and blackmail, both economic and military,” he added.

The expert says Europe should announce a “Decade of Security Policy”, a decade-long plan with which states and the European Commission reduce the main weaknesses of their security or turn them into strengths. “It’s about money, a lot of money, but not just about that. The most difficult question will be to what extent Europe can make its new military and economic power credible and also function as a united Europe,” he commented by email.

If the community club doesn’t pick up the pace and put ambitious new systems on the table, the community club risks missing another train. “The union should act as an actor. If you are not at the table, you are part of the menu,” said Josep Borrell, the High Representative for Foreign Policy and Defence. And he added: “The most important thing is to make the EU a great power, a brilliant unit, capable of functioning. And don’t entrust your safety to anyone.”