Josh Lipsky, Senior Director at the Atlantic Council’s GeoEconomics Center, and Eva Maydell, a Bulgarian MEP, engage in a lively discussion on Europe's geopolitical turmoil under Trump’s leadership. They examine the shifting power dynamics between Europe and the U.S., especially in tech and trade. The duo highlights Europe's struggles for economic relevance while adapting to the new global landscape. They also touch on citizen engagement in environmental decisions and the urgent need for proactive reforms to maintain EU resilience amid rising challenges.
Europe must redefine its global governance strategy to uphold democratic values and strengthen ties with the U.S. amid rising competitive pressures from China.
Ongoing trade tensions and the need for a balanced regulatory approach highlight Europe's struggle to maintain competitiveness while adapting to technological advancements.
Deep dives
The Changing Mood in Davos
This year's World Economic Forum in Davos reflects a shift in global sentiment, particularly with Donald Trump's return to the White House. Attendees are navigating a mix of uncertainty, hope, and skepticism about the new administration's direction and its impact on international relations. Europe's leaders, facing challenges like the ongoing war in Ukraine and shifting power dynamics, are questioning the continent's role in a rapidly changing geopolitical landscape. The mood contrasts sharply with past events, as attendees find themselves pensive, closely observing developments rather than engaging in the usual optimistic discourse.
Europe's Position on Global Governance
European Commission President Ursula von der Leyen emphasized the need for Europe to redefine its approach to global governance amidst uncertainties. She noted the importance of adapting values and actions in light of altered global circumstances, highlighting the necessity for Europe to assert its agency and influence on the world stage. Von der Leyen's speech suggested that Europe must not only uphold its democratic values but also be proactive in addressing issues, underscoring the urgency of establishing stronger relationships with the U.S. while navigating the complexities introduced by China's growing economic power. The questions remain whether Europe can effectively navigate these dynamics and reclaim its standing in global affairs.
Trade Relations and Economic Priorities
Trade tensions are a prevailing concern, especially with Trump's administration signaling potential tariffs on European goods. Experts noted that while the absence of immediate tariff announcements provided some relief, uncertainty regarding future trade policies remains high. European leaders face the challenge of not just reacting to potential tariffs, but also finding proactive strategies to strengthen economic ties with the U.S., such as increasing gas imports. As Europe grapples with high energy prices and the urgency for a capital markets union, prioritizing economic resilience becomes essential to counteracting potential repercussions from U.S. trade actions.
Innovations and Regulatory Challenges
The ongoing debate around innovation versus regulation remains a key focus, with many tech leaders arguing that Europe's regulatory frameworks hinder competitiveness. European lawmakers are recognizing the need for a balanced approach that fosters innovation while maintaining necessary oversight to protect citizens. The push for reforms is underscored by the requirement for Europe to integrate technology more effectively within existing industries, reflecting a broader understanding of the economic landscape. The discussion also centers on how Europe can attract investment and navigate its regulations while responding to emerging technologies like AI without stifling growth.
As Donald Trump settles back into the White House, all eyes—even in snowy Davos—are on Washington. Host Sarah Wheaton reports from the World Economic Forum, joined by Josh Lipsky, Senior Director at the Atlantic Council’s GeoEconomics Center, and MEP Eva Maydell, to discuss Europe’s weakening relevance amid tariff threats, tech battles, and shifting power dynamics.
Plus, a special Davos update from our sister podcast Power Play— host Anne McElvoy shares a secret fondue tip and reflects on the Davos vibe after producing daily episodes featuring, among others, historian Niall Ferguson and former Trump insider Anthony Scaramucci.