The age of the feet is old enough. Remember that Joe Biden provides a subsidy of hundreds of billions of dollars for green technology, but Europe is panicked. In the past week, Donald Trump has canceled the industrial policy of Biden, and promised to panic again for AI and fossil energy (AI)-Europe again. No matter what the US president is doing, Europeans have seen crisis.
This should give us some views on "peak pessimism" expressed by Davos. Maybe, maybe it reflects the attitude of Europe, not the objective prospects of the European Union. This is not to deny that Trump's second government will constitute a huge challenge to the group's economic and geopolitical models. But this model has matured. This will be suitable for the European Union's fear of more entrepreneurs, and with the source of Trump's arrival-it can be easier to make long-term overdue changes, and it will benefit itself from the United States will benefit from the upcoming self-harm of the United States.
Starting from trade. Trump wants to reduce the trade deficit of the European Union. European leaders hope to increase investment at home. These desires are equal to the same thing. As the EU leaders are increasingly recognized, the EU's trade surplus is also a huge savings surplus exported to foreign investment. One penny needs to be given up: redirecting these saved money to domestic investment means leaving a growth model driven by export surplus.
Understanding European instinct is to appease Trump and want to save their US market. But this instinct is outdated. Instead, learn from the clearer (everything is relative) strategy: hair loss, although it is not for off. Possibly the next German Prime Minister Friedrich Merz correctly warned that companies relying on Chinese must face the risk of destruction. The same mentality can be extended to the United States.
Then there is defense. Europeans must spend more about this-not because the US president said so, but because Russia's war threatened their freedom. However, Trump's demand for raising national defense expenditure to 5 % of GDP may be that the possibility of political inertial inertia is destroyed by transfling questions from whether to transfer more money to how to spend.
In the short term, this means buying more weapons from American manufacturers. This is an easy promise that can trade other offers in Washington. Ironically, as European weapon manufacturers have obtained the confirmation of persistence and higher demand, it may lead to the opposite situation, especially if their government finally manifests standardized specifications and purchased together.
The next energy. The European Union struggled at high energy prices and has not yet tried to abandon Russian pipeline oil and liquefaction natural gas. Trump just wants to push oil and natural gas to Europe. The fastest way to achieve this goal is to complete the European Union's sanctions on the purchase of Russian fossil fuel-but this needs to be consistent. This is consistent. Russian-friendly member states are resisted. What is wise to do is, please point out that the admiration of the admiration from Budapest to Bradisla requested the help of Trump, which hindered greater books.
In addition to the political springboard for the existing European priority, Trump's destruction also provides new opportunities for use. If Biden's subsidy of renewable energy and green technology absorbs investment from Europe to the United States, then today's approximately the opposite of logic. These fears are more likely to be overly excessive. However, Maga Antipathy, the green, has strengthened the incentive measures that make Europe more profitable, and the degree of decreased carbon investment has decreased.
Also consider immigration. For a long time, Europe has provided talents for the United States, and the shortage of qualified employees is a general complaint of high -tech companies. If Maga America proves that the young workers (and the United Kingdom still have nerves to immigrants) proved to be too extreme to the world's well -educated young workers in the world, then the open -end EU may become attractive global attractiveness. The high -skilled immigration plan that allows EU countries (such as Blue Card) to move between EU countries should be strengthened. Perhaps Brucel has promised to deliver with the European science and technology companies' innovative companies required by European technology companies.
Europe should pay attention to the earliest President of the United States: apart from fear itself, there is no demand. The best response to Trump's aggression is to use it to make Europe great again.
martin.sandbu@ft.com