Europe is at a crossroads: Will it step up as a global power as US reassess its priorities?

On the second day of the Raisina Dialogue, an esteemed panel convened to deliberate on “The Continent Debates: Europe’s Role in the World.”

This session brought together prominent European leaders and thinkers to discuss the continent’s strategic direction in a rapidly changing world order, moderated by Vanessa Ghanem, Arab affairs editor at The National from the United Arab Emirates.

In recent years, Europe’s position on the global stage has undergone significant scrutiny and transformation. The re-election of US President Donald Trump has introduced a more inward-focused US administration, prompting Europe to reconsider its strategic autonomy and global partnerships.

This shift has raised questions about the durability of traditional alliances and the need for Europe to assert its influence independently.

The panel comprised Xavier Bettel, Deputy Prime Minister; Minister of Foreign Affairs and Foreign Trade; and Minister for Development Cooperation and Humanitarian Affairs, Luxembourg; Maria Malmer Stenergard, Minister for Foreign Affairs, Sweden; Ruben Brekelmans, Minister of Defence, Netherlands; Diego Martinez Belío, State Secretary for Foreign and Global Affairs, Spain and; Florence Gaub, Director of the Research Division, NATO Defense College, Italy.

The transatlantic alliance, once the bedrock of Western security, now faces unprecedented challenges. Trump’s critical stance on Nato and unpredictable foreign policy moves have led European leaders to question the reliability of US commitments.

This scepticism has accelerated discussions within Europe about enhancing its own defence capabilities and reducing dependency on external powers.

Europe’s role in relation to a ‘New America’

The panel explored how Europe can recalibrate its strategic objectives to establish a balanced partnership with the US, considering the latter’s shifting priorities. Stenergard acknowledged, “The US is right that Europe has not done enough for its own security.”

She highlighted Sweden’s proactive measures, stating, “We have doubled our defence and many other countries are doing the same.” This sentiment reflects a broader European initiative to bolster defence capabilities.

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Brekelmans stated the need for Europe to assume greater responsibility, referring to the ‘Coalition of the willing’, “it is very clear that European countries should do more in terms of our defence and we should do more with the coalition of the willing.”

He also noted the potential volatility within EU alliances, remarking, “You can have an election outcome that can change the position of a country,” referencing recent shifts in political narrative in European nations.

How to sustain the transatlantic alliance

The sustainability of the transatlantic alliance hinges on Europe’s ability to tackle internal political, economic, and social challenges. The rise of far-right parties and differing national interests pose significant hurdles to a unified foreign policy.

Bettel highlighted the importance of unity when it came to the recent US-brokered peace negotiations between Russia and Ukraine, asserting, “There is no decision about Ukraine without Ukraine.”

He also stressed the urgency of conflict resolution, stating, “It is important to have the ceasefire because everyday people are still dying.” Bettel praised Ukrainian President Volodymyr Zelenskyy’s commitment to peace. Highlighting the recent Oval Office incident between Zelenskyy and Trump, he noted that not many leaders would admit mistakes and seek a fresh approach, indicating a serious approach to achieving peace.

Belío echoed the sentiment, stating, “This is a matter of urgency.” He advocated for engaging with pivotal regional players, saying, “We should engage with them (Turkey) in the matter of Ukraine.”

“Turkey has played an important role, particularly in securing grain routes through the Black Sea," said Brekelmans. “Turkey is the only Nato ally that has been able to confront Russia.”

Belío also expressed support for Turkey’s potential EU accession, contingent on a merit-based approach.

How to revitalise Europe’s economy

With substantial state aid fuelling technological advancements in the US and China, Europe faces the imperative to rejuvenate its economy. Strategies to bolster innovation, support key industries, and enhance competitiveness were central to the discussion.

Stenergard advocated for open markets over protectionism, stating, “I believe in trade deals, talking about deals, not in tariffs, which are actually taxes.”

She highlighted the potential of strengthening ties with emerging economies, asserting, “Europe should do more trade with countries such as India.”

Defending Sweden’s commitment to global development, Stenergard said, “We spent 0.7 per cent of our GDP on development aid,” which she believes helps prevent extremism among other issues.

Advocating for a collective EU-backed defence policy, Bettel addressed the challenges of protectionist tendencies within Europe, noting, “Everyone wants to say to their voters that we are protecting the national industry.”

He also raised concerns about future humanitarian crises, cautioning that tomorrow “we might face climate refugees”.

Concurrently, Europe’s economic landscape is being reshaped by global competition. The US and China are heavily investing in frontier sectors, prompting Europe to rethink its economic strategies to remain competitive.

Balancing openness with economic security has become a pressing concern for the European Union, especially as it seeks to protect its technological innovations and critical industries.

EU’s distrust in Russia’s promise

Europe’s prowess in technology and digital sectors presents opportunities to amplify its global influence. The panel deliberated on how to harness these strengths to assert Europe’s position alongside other global powers.

Gaub discussed the evolving dynamics within Nato, suggesting, “It is time to be creative. I think NATO is already engaged with many global leaders.” She noted that Europe needs to think strategically beyond immediate challenges: “Europeans have a critical security vulnerability which will become worse over time.”

Putting a spotlight on the North Korean troops aiding Russia in Ukraine, Stenergard justified the reason EU was looking for new allies, with Sweden tapping into a renewed defence framework.

Bettel pointed to Europe’s potential in technological advancements while cautioning against complacency: “We have more countries wanting to join the EU than they are those wanting to leave. And if the Brits could decide again..well..,” suggesting that Brexit may have been an impulsive decision with long-term consequences.

Speaking about possible intentions by Russian President Vladimir Putin to gain more territory in eastern Europe, Brekelmans pointed to the Baltic borders that Nato shares with Russia. “Our intelligence says that it will take Russia only one year to reassign its troops across Nato borders, and any major military exercise by Russia on these borders can create a lot of panic.”

While challenges remain, the consensus among panellists was clear: Europe must take a more assertive and strategic approach to secure its place in the world.

Raisina Dialogue is a premier conference on geopolitics and geo-economics hosted by the Observer Research Foundation in collaboration with India’s Ministry of External Affairs.

The event, inaugurated by Prime Minister Narendra Modi on March 17, featured New Zealand’s Prime Minister Christopher Luxon as the chief guest and keynote speaker.