By John Q. Hosedrinker 
EU leaders, meeting in Budapest, have signed a declaration aimed at boosting the bloc’s competitiveness, driven by concerns over US protectionist trade policies and a need to address Europe’s own economic stagnation. The declaration calls for reduced bureaucracy, increased investment, easier access to capital, and higher productivity, echoing the recommendations of a report by former Italian prime minister and European Central Bank chief Mario Draghi. This report, warning of a “slow and agonising decline” for the EU, proposes radical reforms, including increased common borrowing and a “true single capital market,” to avert this fate. The summit also recognized the urgency of the situation, with leaders acknowledging the need to address both the economic challenges and the implications of the changing geopolitical landscape.
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Italy’s Prime Minister Giorgia Meloni has sent a stark warning to the European Union: they can no longer rely on the United States for their security. She’s concerned about the potential economic consequences of a Trump administration, citing his past threats to impose tariffs on European goods if they didn’t buy more American products. This echoes a growing sentiment amongst many European leaders who believe the US has become unreliable in its commitments to the continent.
It’s not just about trade disputes either. Meloni, along with others, are increasingly worried about the US’s wavering commitment to NATO and its support for Ukraine in the face of Russian aggression. The US has long been considered the bedrock of European security, but the recent rise of populist, nationalist leaders like Trump and Meloni, and their differing views on global alliances, has shaken that foundation.
This sense of uncertainty has been amplified by the US’s focus on its own domestic issues and a growing tendency to prioritize its own interests over those of its allies. The EU is being forced to confront a harsh reality: it can no longer rely on the US for its security and economic well-being. This is a significant shift, especially since the US has played a pivotal role in shaping the post-World War II order.
Meloni’s message is a call to action for the EU, urging them to take a more independent approach to their defense and economic interests. This means strengthening their own militaries, diversifying their trade relationships, and becoming more self-sufficient. It’s a daunting task, but the potential consequences of relying on a volatile US are too great to ignore.
This situation has been simmering for years. Many have argued that the EU should have been more proactive in building up its own defense capabilities instead of relying on the US. The US, in turn, has expressed frustration with European nations not fulfilling their NATO commitments by failing to spend the required 2% of their GDP on defense.
The situation has reached a tipping point, and the EU is at a crossroads. Will it continue to rely on the US, hoping for the best, or will it finally take the steps necessary to become a truly independent and self-sufficient entity? The answer will have significant implications for the future of Europe and the global order.