During our Political Stammtisch in Vienna, United Europe President Günther H. Oettinger and former Austrian Chancellor Wolfgang Schüssel offered a striking diagnosis of Europe’s geopolitical and economic situation. The message was clear: Europe is at a decisive moment, and the choices we make now will determine whether we remain relevant in a rapidly shifting global power landscape.
1. A World Divided by Systems
Authoritarian leaders and dictators share one core objective: undermining the West—its democratic values, its freedoms, and its social market economy. Together, they represent more than a third of the world’s population, and their influence is growing.
2. Europe’s Competitive Disadvantage
Current trade dynamics show how vulnerable the EU has become:
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U.S. exports to Europe: zero tariffs on key sectors like chemicals and pharmaceuticals
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European exports to the U.S.: 15% tariffs on goods, and up to 50% on steel, copper and others semi-finished products
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And Europe agreed to this.
Meanwhile, 90% of critical raw materials are owned or controlled by China, and nearly all global refining capacity sits within Chinese borders.
The consequence:
“We are no longer competitive, no longer relevant. We have no power.”
Europe’s priorities for the coming years must therefore focus on just two essentials:
Security and competitiveness.
3. The Need for European Power and Strategic Focus
In a world shaped by Trump, Xi Jinping, Putin and rising blocs, Europe must consolidate its strengths and build stronger competencies at the European level. Future generations will ask what we did at this turning point.
Yet today, Europe is burdened by excessive bureaucracy, particularly affecting SMEs, multinational companies, and innovation ecosystems.
To find solutions, we must first understand the big picture.
4. A Wake-Up Call: Slow Progress, Real Opportunities
Europe has been stagnating economically since 2015. But the wake-up call—triggered by war, geopolitical tensions and supply chain shocks—has begun to take effect:
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Europe is increasing defense budgets
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NATO cooperation among major powers is stronger than before
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A capable new European Commissioner for Defence is coordinating efforts
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Awareness of supply chain vulnerabilities is rising
Critical priorities are now clear: raw materials, semiconductors, pharmaceutical resilience, AI, space technology, and secure cloud infrastructure.
These sectors offer real growth potential—with pharma and deep tech already emerging as engines of innovation. But Europe must move faster.
5. Innovation as Europe’s Lifeline
To regain competitiveness, Europe must:
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Fully support innovators, researchers, universities, and deep-tech companies
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Build a genuine European capital market, including an open pension capital system
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Reduce bureaucratic barriers
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Foster trust in younger generations and their entrepreneurial ambitions
6. Breaking the Status Quo
At the heart of the discussion stood one powerful message from Wolfgang Schüssel:
“We love the status quo—and the status quo is now the greatest danger that exists.”
Europe must choose between preserving a comfortable but declining system or embracing the difficult reforms necessary to stay a powerful democratic actor in the world.