The return of Donald Trump to the White House, just months into his second term, has sent shockwaves across Europe — and understandably so. From erratic tariffs and incendiary rhetoric to growing doubts over NATO commitments, Trump’s approach to foreign policy has strained the transatlantic alliance. His administration has dismissed European concerns, insulted key leaders like Ukraine’s Volodymyr Zelenskyy, and made overtures toward authoritarian regimes like Russia. On the surface, it seems as though Europe is poised to be sidelined.
But within this chaotic moment lies an unprecedented opportunity for Europe — not just to respond, but to rise. The instability radiating from Washington may finally force European leaders to confront long-standing structural weaknesses, mobilize political will, and turn adversity into agency. Rather than mourning the loss of predictability from their closest ally, European policymakers have a historic chance to deepen integration, strengthen strategic autonomy, and build a Europe that is more cohesive, capable, and confident.
Here is how European leaders can turn Trump’s disruption into a defining moment for the continent.
Capital Markets and Banking Union
Europe sits on a vast pool of savings — nearly €3 trillion — yet struggles to deploy it effectively due to fragmented capital markets. National regulatory barriers and a lack of harmonization have prevented the EU from developing a unified financial system comparable to that of the United States. Now is the time to change that.
A completed Capital Markets Union (CMU) would allow capital to flow more freely across borders, improve access to funding for small and medium enterprises, and provide a deeper pool of liquidity for innovation and green investment. Similarly, a completed Banking Union would reduce risk in the banking sector and ensure financial stability across the Eurozone.
These structural changes will make Europe more resilient in the face of economic nationalism from Washington and less vulnerable to financial shocks from global trade disruptions.
Independent Trade Agreements
Trump’s weaponization of tariffs has once again exposed the risks of relying heavily on any single trade partner. The EU must now seize the initiative and strike bilateral and regional trade agreements with nations and blocs that seek a rules-based trading environment. Countries in Latin America, Southeast Asia, and Africa are eager to do business with a reliable and stable partner.
The EU’s trade pact with Mercosur has stalled for years but could be revived with renewed urgency. Deals with Australia, Indonesia, and India can also be accelerated. By becoming the champion of free but fair trade, Europe can strengthen its global economic footprint and provide an alternative to the zero-sum logic of Trump-era protectionism.
Develop a Unified European Defence
Trump’s mixed signals about NATO — casting doubt on America’s willingness to defend allies under Article 5 — are a wake-up call for Europe. For too long, EU nations have underinvested in collective defense, relying on the U.S. security umbrella. That era is over.
It’s time to move toward real strategic autonomy. This does not mean abandoning NATO, but strengthening Europe’s capacity to defend itself — within NATO where possible, and independently when necessary. A European Defence Union with integrated command structures, pooled procurement, and shared rapid deployment forces is essential.
The European Defence Fund is a good starting point, but it must be expanded and institutionalized. Joint exercises, standardized equipment, and coordinated threat assessments will improve efficiency and readiness. The goal is clear: a credible European pillar of NATO that can operate with or without U.S. leadership.
Step Up Support for Ukraine
Trump’s recent statements undermining support for Ukraine have deeply alarmed European capitals. If Washington steps back, Europe must step forward.
This means increasing military aid, especially in the form of medium-range missile systems, drones, and air defense capabilities. It also means logistical and intelligence support, financial assistance for Ukraine’s economy, and preparing a long-term security guarantee post-conflict.
A stronger, sovereign Ukraine is in Europe’s core strategic interest. It acts as a buffer against Russian expansionism and upholds the principle that borders cannot be changed by force. Europe should also help lead postwar reconstruction, creating a Marshall Plan-style model for Ukraine’s recovery and integration into the European family.
Liberal Democracy & Multilateralism
As the U.S. retreats from its traditional leadership role in defending liberal democracy and promoting a rules-based global order, Europe must step up. The EU should take the lead in building coalitions to counter authoritarianism — not just through military alliances, but through institutions, values, and global governance.
Working with partners like Canada, Japan, Australia, and India, Europe can champion free media, judicial independence, human rights, and democratic elections. It can support civil society in countries at risk of democratic backsliding and offer a robust alternative to Chinese and Russian influence in the developing world.
A enewed focus on values-driven foreign policy will differentiate the EU on the world stage and rebuild its moral credibility.
Engagement with the Global South
Trump’s erratic foreign aid cuts and nationalist rhetoric have opened a vacuum in many parts of the world. In Asia, Africa, and Latin America, the EU is increasingly seen as a more stable and reliable partner. Europe should capitalize on this perception by expanding economic partnerships and development assistance.
By offering infrastructure investment (via the Global Gateway initiative), digital cooperation, climate finance, and vocational training, Europe can build sustainable relationships that go beyond short-term trade deals. This approach also helps counterbalance both Chinese debt diplomacy and American unpredictability.
These relationships are critical not just for economics but for security and migration management. A more connected and prosperous Global South is in Europe’s long-term interest.
Attract Displaced Talent
Trump’s crackdowns on immigration, including restrictions on student visas and cuts to university funding, have created an opening for Europe to position itself as a magnet for global talent. A special visa initiative targeting U.S.-based scientists, researchers, and tech workers disillusioned by the political climate could help boost European innovation.
Germany, France, the Netherlands, and the Nordics already have competitive higher education systems and research institutions. By offering scholarships, academic freedom, and easier residency options, the EU can turn America’s brain drain into its own brain gain.
Revive Political Leadership
European unity has historically advanced during crises — from the postwar founding of the EU to the response to the Eurozone debt crisis. Trump’s antagonism and Russia’s aggression now present a twin external threat that may catalyze the next leap in integration.
A reinvigorated Franco-German-Polish axis could provide the leadership needed. Germany’s new chancellor, Friedrich Merz, has already signaled a more ambitious economic and defense policy, moving away from the fiscal conservatism of previous governments. His centrist coalition with France’s Macron and Poland’s Tusk could deliver progress on long-delayed reforms.
Merz also aims to bring the UK into closer security cooperation, working with British Prime Minister Keir Starmer to align defense priorities and potentially lay the groundwork for a long-term economic re-engagement. Overcoming Brexit’s scars will be difficult but necessary in the face of transatlantic volatility.
Coalitions of the Willing
A major obstacle to European integration has been the unanimous decision-making rule. If pro-Russian populist governments in Hungary or Slovakia block progress, willing countries must move ahead without them. Mechanisms already exist — enhanced cooperation, intergovernmental treaties, or “coalitions of the willing” — to allow ambitious groups to advance common goals without being held hostage by dissenters.
