• Tom van der Heijden, Partner |

In 2025 the world will be different than it was before. Autocracy is rising everywhere, and America – once the leader of the free world – is changing it’s tune. “America First” is taking shape through decrees and decisions: anti-woke, anti-sustainability, and without any breaks on far-reaching tech. It’s no coincidence that America’s oligarchs were front and centre at the new president’s inauguration. They now have – either outside or inside the government – a deciding voice in making policy. What does this mean for the rest of the world and especially Europe’s position in it? Take Elon Musk, he doesn’t just “control” an increasingly extreme voice through platform X, but with Starlink, he has a communication system that plays a key role in a major conflict on European soil. While at the same time he is an Administrator of the Department of Government Efficiency. It’s a mix we haven’t seen before and he already uses his position to try and influence politics in European countries.

The question is, do we in Europe need to panic, or is it a perfect opportunity?

A Strong Foundation in Europe

Let’s start with the positives: Europe (and especially the Netherlands) is far from doing badly. Six European countries make the top ten performing economies, with the Netherlands in ninth place. And while the EU is lagging behind when it comes to AI, more on that later, we’re one of the world’s leading players in producing high end chips thanks to ASML. There’s a good reason for that – because although companies in Europe don’t have free rein, there’s strong cooperation between governments, businesses, and knowledge institutions that has the potential to strengthen the position of our businesses. And although America’s wealthiest might be richer than the average European, the average European is far wealthier and healthier than the average American. That translates to a healthy, expansive sales market and a stronger bargaining position than we often realize. There’s a lot to be gained in Europe for many countries.

The Discontent Continent

There are certainly challenges as well. World power is defined by military spending, manufacturing, and finance. The US dominates the first and third, while China controls manufacturing, putting Europe at a disadvantage. Especially worrying since Presidents Xi and Trump don’t seem to be seeking global order; they seem to thrive on chaos each for their own purposes. At the same time it’s Europe that’s vulnerable to that chaos. Whether it’s goods, raw materials, or energy; our value chain is complex and dependent on suppliers from other continents. We’re also falling behind in AI, a technology poised to change the world in the coming years. Like many technologies, it’s shaping up to be a “winner takes all” situation, a zero sum game, and at the moment no one is betting on the EU to take the prize. But the biggest disadvantage we face: there’s a massive lack of optimism in Europe. We’re discontent, and that’s reflected in the ballots, with Europe-critical parties gaining power.

The Government-Business Combo

So what’s needed to utilize our strengths and overcome our weaknesses? First off, Europeans and European businesses need to start believing that we can make a difference. And we need to act with the energy to match. To move forward, we need a clear, ambitious European strategy on subjects like digitalization, the energy transition, and healthcare. In which collaborations between business, governments and knowledge institutions are essential, where we work together to find common ground and combine interests. It is that combination that makes society stronger than the sum of its parts. Of course, that includes the already existing plan of the EU to reduce bureaucracy. It also means questioning how we invest in our European economy. Right now European capital is investing in American growth, leading to the acquisition of European companies that can’t find investment at home. Lastly, it’s crucial to recognize that the world is bigger than the West and China. There are valuable friends to be made in the Global South and BRICS, including fast-growing countries like India and Indonesia that we’ve neglected for too long.

Don’t Let Fear Win

Incidentally, it is important to realize that Trump’s strategy is all about creating confusion – or better yet, panic – in others. Through the “policy fog” of his decrees, crazy promises, and bold statements, it seems like he’s rewriting the world with his custom made Sharpies. But in practice, there’s still the brake of the House of Representatives, the Senate, the Supreme Court, and America’s legal system. As long as we in Europe don’t let ourselves be intimidated and instead focus on clear agreements, shared interests, smart investments, new friends and thoughtful policy, we can go really far, really fast. What do we need to make this happen? Brave decisionmakers in both politics and boardrooms who can work together on results that move all Europeans forward and reignite our belief in what’s possible. We don't need to give an answer. We need to show the rest of the world how we think it should be done.