The US presidential election took place on 5 November. After a long election night, Donald Trump’s victory was uncontested. The US election has global implications, particularly for the transatlantic relationship with Europe.
US policy transcends its borders on a large number of issues of international relevance. For example, the evolution of international trade and value chains, multilateralism, global geopolitical conflicts, the fight against climate change and, in particular, everything related to the development of the digital ecosystem and internet governance. For all of these reasons, it is worth pausing to assess the possible implications of the election result from a European perspective.
Uncertainty about international trade developments
From an international trade perspective, there are concerns that the United States may initiate a tariff escalation by returning to the path of economic protectionism in a new chapter of the trade dispute with China.
Indeed, this was one of the Republican candidate’s recurring proposals during the election campaign. In a globalised world marked by economic interdependence, trade turbulence generates uncertainty. However, international trade prefers stable policies with clear rules in an environment of full legal certainty that guarantees free competition.
The evolving transatlantic relationship as an incentive for Europe’s economic and productive transformation
As far as the transatlantic relationship is concerned, however, Donald Trump’s victory can be seen from the European side as an incentive to put into practice those recipes that offer solutions to the structural problems afflicting the European Union. Thus, while the doctrine of strategic autonomy was formulated years ago as a roadmap for European external action, after the US elections it can be interpreted internally as the need for Europe to move towards building and strengthening its own capabilities and competences.
Faced with the unknowns of the new American administration, the application of the principle of strategic autonomy requires a decisive move towards the achievement of European sovereignty in the military, energy or technological fields, without this implying the pursuit of economic protectionism.
Autonomy is the ability to think for ourselves and to act according to our own values and interests
That is why the diagnosis and solutions set out in Enricco Letta’s reports on advancing the construction of the European single market and the Draghi report on European competitiveness are more timely than ever and should point the way forward. In the aftermath of the US elections, Europe´s transformation has become even more urgent.
The quest for competitiveness as a necessary condition
At this time of change it is appropriate to reflect on where Europe wants to be in the next decade and how to ensure the economic security, strategic autonomy and stability of its society in an increasingly fragmented, uncertain and complex global context.
Boosting competitiveness is crucial for the EU’s economic sustainability and future stability. Enricco Letta’s report warns about the loss of competitiveness of European firms and the need to strengthen their scale. In the same vein, Mario Draghi’s report stresses the need to increase productivity growth as a key driver of growth and welfare improvement in the long run. Without productivity growth, Draghi considers that it will be unfeasible for Europe to achieve its ambitions. Against the current international backdrop, reformulating the competitiveness strategy is the priority for the EU.
Towards European digital and technological sovereignty
In Europe, the loss of competitiveness is particularly relevant in the technological and digital sphere, an area in which the United States and China are competing for global leadership. Strengthening Europe’s digital autonomy is crucial in a context where primacy translates into economic and geostrategic power. The disruptive potential of technologies such as AI and 5G can drive innovation and productivity, generating competitive advantages amplified by global digital markets. Leadership in this area is a strategic objective and its absence a vulnerability for economic security.
Telecoms companies are leading the evolution and transformation of the digital infrastructure and services that underpin the digitisation of economies and societies. Without state-of-the-art, high-capacity and energy-efficient telecoms networks, it will not be possible to drive the EU’s digital leadership. But moving in this direction requires an economically sustainable telecoms sector.
Furthermore, it is essential to adapt the European regulatory environment to the new economic dynamics and realities in order to promote competitiveness. In the case of the telecommunications sector, regulatory modernisation requires deregulation to allow the sector to compete on a level playing field.
From the perspective of the transatlantic relationship, the outcome of the US elections poses new challenges, unknowns and uncertainties. However, in the face of this reality, Europe must move firmly forward in building its own capabilities and strengths. It is time for Europe to take control of its own destiny. The diagnosis and the solutions are on the table. It is time to put them into practice.
