Wanted: European Optimism

Recent developments in the United States are causing uncertainty in Europe. Some fear significant consequences for our economy, geopolitical position, and transatlantic relations. But let’s keep our heads cool: the EU is resilient and stronger than some would have us believe. Our societal norms and values define our role on the world stage, and our moral compass guides us in the right direction. This is not an existential crisis for Europe but an opportunity to strengthen our strategic autonomy and international position.

Perception plays a crucial role in this situation. American politics today is marked by chaos and provocation. This affects not only internal relations in the U.S. but also geopolitical perceptions worldwide. Europe must not be swept up in this dynamic but should act pragmatically from its own position and strengths. Economically and diplomatically, Europe has a solid foundation. The internal market is robust, innovation remains strong, and our regulatory framework provides stability. While declining U.S. engagement in the global order is seen as a risk, it actually presents an opportunity for Europe to take a leading role in diplomacy and trade.

This changing world compels us to be strategically flexible—something Europe excels at. Our economy and institutions have demonstrated agility and resilience for decades. Businesses play a crucial role in this. Belgian financial service providers are well-positioned to foster economic cooperation and forge partnerships with the government. The rising costs of an aging population limit the government’s financial capacity to pursue a stimulating policy. However, our strong pension institutions provide a solid foundation to distribute these costs more effectively across the three pension pillars. This creates financial room to breathe for both institutions and the government, allowing continued investment in key areas crucial for our autonomy. By offering innovative solutions in climate finance, reinsurance, infrastructure, and trade, we strengthen not only businesses but also Europe as an economic powerhouse. The retention of headquarters of leading institutions such as Euroclear in Brussels reinforces this position. This is not just about jobs—it’s about influence and autonomy.

On the international stage, we also have a unique opportunity to position ourselves as a stable and reliable trade partner in a world where the U.S. increasingly follows its own path. As American trade conflicts disrupt markets, we can smartly capitalise on shifts and establish new partnerships, particularly with Asian economies. This presents opportunities not only to gain market share but also to build long-term, sustainable trade relationships.

European modesty should not hold us back. We remain an economic superpower, an innovation hub, and a diplomatic force to be reckoned with, with values and norms that serve as a benchmark for many. Instead of being paralysed by geopolitical shifts, we must seize them. It is time to recognise and strategically deploy our own strength. The current situation presents opportunities, and we must grasp them with confidence.