Stuck Between Washington and Beijing: Can Europe Close Its Competitiveness Gap?

For decades, Europe relied on the United States for security and on China for cheap goods, but it is now falling behind both economic superpowers. Growing tensions with Washington over tariffs, defence spending, and Greenland have placed significant strain on the transatlantic relationship. Meanwhile, Beijing maintains dominance over vital supply chains and raw materials that Europe continues to depend upon. Following a recent meeting between Presidents Donald Trump and Xi Jinping, where Europe was notably absent, the resulting decisions continue to directly impact the continent. Although Europe maintains leverage through its single market of 450 million consumers, overcoming its current competitiveness deficit demands profound reform and massive investment.