Ursula von der Leyen casts Europe as an economic heavyweight that can forge new alliances during another “America First” presidency.
The EU is in no mood to beg for favorable treatment in the face of U.S. President Donald Trump’s “America First” agenda.
Instead, European Commission President Ursula von der Leyen on Tuesday mapped out an upbeat vision of the EU as an economic heavyweight that was beating the U.S. in many key respects and was open for business with countries such as Mexico and China — while Trump sets himself on a collision course with those nations.
Speaking at the World Economic Forum in Davos in her first major policy address since Trump’s Nov. 20 inauguration for a second term, von der Leyen avoided direct criticism of the president but drew clear and stark contrasts with America, especially by underlining the EU’s commitment to the Paris climate pact that Washington is ditching.
Europe, she said, still has the “biggest trading sector in the world” as well as “longer life expectancy, higher social and environmental standards, and lower inequalities than all our global competitors.”
In contrast to the maverick strongarm tactics of Trump, Europe’s “large and attractive market” was a predictable partner, von der Leyen said. “With Europe, what you see is what you get. We play by the rules. Our deals have no hidden strings attached.”
All in all, von der Leyen sought alliances rather than showdowns, particularly with those in Trump’s crosshairs. “Europe will keep seeking co-operation — not only with our long-time like-minded friends, but with any country we share interests with,” she stressed.
As for Europe’s many problems — which range from war on its doorstep to industrial decline and a far-right surge — von der Leyen chose not to dwell on them.
Instead, the German politician tried to inspire confidence in the bloc’s ability to change, laying out plans for reforms to be presented in February that aim to unify the bloc’s fragmented capital markets, slash red tape and foster world-beating companies.
How she intends to enact those reforms at a time of increasing divisions among the bloc’s leaders is anyone’s guess.
Overall, her Davos stump speech was as remarkable for what it didn’t say as for what it did. There was no mention of the far-right’s recent electoral successes in Europe, for example, nor even of Trump. The traditional encomium to the once-sacrosanct transatlantic relationship was another notable omission, while the war in Ukraine received only a passing reference.
Instead, von der Leyen’s address was all about Europe as a global economic player, with prominent mentions of South America, Africa, China and India, where she intends to make her first major trip since being re-elected, and placed far less emphasis on the United States.
Here’s how it went down in real-time:
1. Things are a little crazy, right now, OK?
With a war raging in Ukraine and Trump in the White House, von der Leyen faced a challenge describing “the situation” without sending her audience into a clinical depression.
She did this by staying aloof, describing a “new era of harsh geostrategic competition” in which Europe would have to get tougher.
In classic EU form, von der Leyen pleaded with her audience to “avoid a race to the bottom” and not flout global rules to gain an economic edge over rivals. In almost the same breath, however, she recognized that the “cooperative world order” that Europe anticipated had never materialized, and that now was the time to get real.
2. But Europe has a lot going for it. Promise!
Then came the pep talk. With Elon Musk’s X platform flooded with content attacking the EU as a declining museum resort, von der Leyen did her best to tout the bloc’s qualities. “We have a huge single market … unique social infrastructure … credible and independent institutions … [and] an unshakeable commitment to the rule of law.”
Even the bloc’s ability to innovate was “under-appreciated,” she said, noting that Europe registers nearly as many patent applications as China and the U.S.
Even so, she allowed, “the world is changing. So must we.”
3. Don’t worry. We have a plan.
While everything is great in Europe, the place still needs a total overhaul — which von der Leyen pledged to kick off in February when she presents a big reform plan.
This big leap will aim to unleash Europe’s economic might by unifying its fractured capital markets and channeling billions of euros in savings accounts toward investment. It will also aim to ease the bureaucratic burden on companies by giving them “one single set of rules” applicable across the union.
Not mentioned: The fact that Europe’s leaders remain hopelessly divided on how to move forward, with multiple countries opposed to a capital markets union (an attempt to get the conversation started last year died miserably).
4. BTW, we are still into this globalization thing.
At a time when Trump is touting trade tariffs and “America First,” von der Leyen’s speech seemed designed to send the opposite signal: We’re open to doing business with anyone. Von der Leyen addressed potential trading partners directly, saying: “If there are mutual benefits in sight, we are ready to engage with you.”
Indeed, a key message from the speech was that Europe wants to diversify its trading relationships away from America.
While Trump is declaring an emergency on America’s southern border and gearing up for tariffs against Mexico, von der Leyen gave special mention to EU trade relations with Latin America.
While acknowledging the economic threat from unfair Chinese trading practices, she also said Europe had to “engage constructively” with Beijing.
5. America? Who?
Tellingly, von der Leyen spoke about Africa, the Asia-Pacific region, China and India before her first mention of the United States.
Even then, von der Leyen signaled the EU will be ready to stand its ground in any impending stand-off.
“We will be pragmatic, but we will always stand by our principles. We will protect our interests and uphold our values — because that is the European way.”
At the final reckoning, she hinted the EU might move out of its old diplomatic comfort zones and find new friends: “We must look for new opportunities wherever they arise. This is the moment to engage beyond blocs and taboos. And Europe is ready for change.”