Europe's 5 answers to Trump and "A new era of harsh geostrategic competition"

European Commission President Ursula von der Leyen delivered one of her most important speeches today, hours after President DonaldTrump resumed office and fired off a multitude of executive orders and outlined his understanding of the global order for the years to come. 

Here are the 5 key pillars and what businesses can expect: 

1️⃣ 28th Regime: One single framework in corporate law, insolvency, labour law, taxation. Previous attempts had the right intention, but didn't replace national regimes after all (Societas Europe, anyone?). But: If this is set up right, in a hassle-free way, designed for startups and SMEs and implementation in member states delivers, it could actually make businesses' lives easier. Operating across members states is still painful (I know what it means to provide services across borders). And I admit: I dig the name 28th regime (sounds like another Star Wars pre-quel .. or rather "one framework to rule them all" - what do you think?) 

2️⃣ Capital Markets: A European Savings and Investment Union will be presented to unlock funding for innovation & create the long awaited consolidated European capital market. Europe only has access to a fourth of venture capital, as compared to the US - if the ESIU delivers, this would be a major step in European integration. 

3️⃣ Energy: Von der Leyen remains committed to the fight against climate change. But the narrative has shifted: clean energy independence is not only a question of environmental scrutiny, but rather a geopolitical necessity to cut ties and global dependencies. 

4️⃣ Tech & AI: Von der Leyen pledges to close the innovation gap and responsibly advancing AI, quantum, and cleantech, without giving specifics (expect for being open to cooperation and being in "a race against time", not each other). It remains to be seen what the Trump administration, notably David Sacks, will propose after revoking former President Biden's AI Executive Order today. 

5️⃣ Transatlantic & Geopolitics: Europe is open to negotiate with everyone, if there are mutual benefits (so far so good). Summing up: India is a top priority (again) for a renewed trade agreement. Europe intends to strengthen and de-risk EU-China relations. After being asked, Von der Leyen confirms that EU "will stand with Ukraine, as long as it takes", amidst a looming US withdrawal. 

As I highlighted yesterday in our #transatlantictechtalk with Stephan Rihs (find the video recording here https://www.linkedin.com/events/trump2-0-implicationsfortechand7285391439524433920/comments/) : 

🇺🇸 If the US mantra is "Drill, baby, Drill"

🇪🇺 then Europe’s needs to be "Deregulate, baby, Deregulate". 

It’s high time to kickstart & re-shore investments to the EU. 

I am keen on reading your thoughts. What do you think? 

Contact me to find out how to navigate these imminent changes.

The full speech at WEF in Davos can be found here https://ec.europa.eu/commission/presscorner/detail/en/speech_25_285 – let’s see what next week’s competitiveness package will look like in detail.