They have been enough for ten days since the inauguration of the United States presidency by Trump so that something begins to move in Europe. The announcement of a battery of deregulatory measures, the repeal of ESG and environmental regulations, and the demand for more defense expenditure by Trump, have served for In the Eurozone, government voices are criticizing the European regulatory sponator. Voices that, until now, had been very complicating with the growing European regulation.
It will coincide over time, but it is the first time that governments such as French or German raise their voice against the regulatory excess of Brussels that reduces the competitiveness of European companies.
Last Friday, the French government issued a document urging to modify the European regulatory framework to boost competitiveness, starting with ESG standards, including environmental ones. The French government, until now one of the flag bearers in the green and ESG Agende, asks for a pause in the application of new regulations and a review of the current regulation in a context of enormous international competition. It should be remembered that in 2022 Macron was the promoter of this regulation on companies.
For his part, the still German Chancellor, Olaf Scholz, has formally requested the European Commission for a two -year pause in the new information obligations to companies about sustainability. It is something totally insufficient, but it is a beginning. From the private sector the complaints are not new. In 2024, the main employer of the German industry already stated that, in current conditions, German industrial companies will invest in other countries rather than in Germany.
The reality is that Trump’s measures and bravuces, at least, are serving to timidly open their eyes on the real situation of Europe: without energy, without defense, without technology.
Without energy
In energy trilema (supply security, energy affordability and environmental sustainability), the European Union prioritizes sustainability over the safety and affordability of energy.
So, Although nuclear energy is considered green energy since 2022 and the gas in a transitory way, the reality is that Germany has closed its nuclear power plants and Spain is in it. The temporary limitation of gas consideration as green energy prevents long -term contracts (20 or 30 years), which places European buyers at a disadvantage in international gas markets.
Gas producers, who also have to make investments to maintain and increase their production, prefer to sell with long -term contracts. Additionally, obtaining gas by hydraulic fracturing (Fracking) is very limited in Europewith total prohibition in countries such as Spain or France.
Europe continues to bet on decarbonization solo, although Europe is only 7% of CO2 emissions to the atmosphere. The reality is that 60% of the energy used in the European Union is imported.
Undefended
Trump has remembered Europe that most NATO members (including EU’s main economies) must increase their defense expenditure.
The United States contributes two thirds of the alliance budget, equivalent to 3.5% of its GDP, while eight European countries do not reach 2% and only five countries exceed 3%. Spain is in line in defense spending.
The problem of Europe is not only of defense spending, but of a multitude of uncoordinated armies with respect to their investments in defense. As shown, nine European countries of the alliance have 10 different types of tanks. The lack of synergies is evident.
Without technology
Europe is highly dependent on the great technological giants, mainly American. Punteras technology companies in Europe can count on a hand fingers, with a value fraction with respect to American giants. In the career for artificial intelligence, it is essential to have high volumes of cheap investment and energy. Despite some small European operators, the distance with US and Chinese leaders is abysmal.
Welcome are the official voices that begin to timidly recognize regulatory asphyxiation to companies, as well as the recent report by the European Commission “destined to win competitiveness”.
Every year Europe invests 250,000 million dollars in the United States. The question that authorities should ask is why these investments prefer the United States instead of materializing in Europe. Investors and companies are free to choose the best destination of their investments.
At least large European companies are multinational whose investments and sales are global. To show a button: lAs companies included in the Dax index of the German stock market carry out 80% of their sales outside Germany. This allows, despite the German economic situation, its stock market is in historical maximums.
#energy #defense #technology #Trumps #bravuces
