I am resisting the temptation to write a lamentation of anger and sorrow about Trump’s second victory. What is more useful is to think about what Europe can do to protect its environment, its people and its economy in a world where the Trump administration may act, in many ways, to undermine and even destroy it.
The EU’s first bold move to lead by example in the new Trump era should be to seize 200bn euros’ worth of frozen Russian central bank assets and transfer them to Ukraine as a form of pre-emptive reparations. The European Parliamentary Research Service and outside experts have proposed ways in which it could be done in full accordance with international law. But this alone won’t obviate the need for the EU to borrow more to boost its common defence and green infrastructure spending, even though it will increase its debt.
Part of the money raised should be earmarked for the European Space Agency to develop a crewed vehicle that can guarantee European astronauts independent access to orbit and beyond without having to turn to Elon Musk and SpaceX (or other US-based companies). Other spending might be used to boost research in ways that help Europe’s economy rebound and stay competitive.
But the real step the EU can take towards protecting its economy (and with it, its citizens’ wellbeing, optimism and faith in democracy) involves things that are less sexy than building a spaceship, such as finishing the capital markets union that could enable more European tech start-ups to borrow money. The EU has spent the better part of a decade wringing its hands over the absence of European substantial tech companies compared with the US and China. A big reason for this is that it’s simply easier to raise funds in the US because private and public pension funds allocate a greater part of their investments towards venture capital than European pension funds do.
As the former Italian prime minister Enrico Letta said on French radiorecently, each year European savers send about €300bn to US stock markets, primarily because that’s where their banks focus their activities. This money helps boosts the valuation of US companies, which can result in them being able to finance buying out European firms.
Europe already exports tech-startup founders to the US rather than keeping them at home – which, according to a US-based French investor – has resulted in French tech in the US being worth far more than French tech in France. For instance, Snowcloud and Datadog, both founded by French entrepreneurs in the US, are many times more valuable than France’s largest unicorns or biggest recent stock market flotation. A situation where the continent is exporting founders, their startups, and the capital that is funding them makes absolutely no sense.
This matters because, as Stanford academic and author Mariejte Schaake argues in the FT, we need European tech to embody democratic values. On that front, the EU should feel vindicated that its attempt to regulate disinformation on social media is the correct strategy. Democracy is untenable when voters are subjected to algorithms weaponised to constrict their worldview and flood them with disinformation. In Musk’s hands, X is an extraordinarily dangerous tool for election engineering. Europe was already on the verge of fining X 6% of its global revenue (and potentially including Tesla and SpaceX in its calculation). Musk, who spent at least $130m to help elect Trump, is already seeing the return on his investment, with vice president-elect JD Vance suggesting the US might withdraw from Nato if the EU takes action against him. Whether through enforcement, some new type of regulatory agency or a future ban on X, this is not a fight the EU can back away from because the existence of European democracy itself is at stake.
The EU can also do something unexpected. Trump has made no secret of his desire for vengeance and retribution against his enemies: tens of thousands of civil servants ; universities, professors and students. He has fantasised and encouraged violence against journalists, protesters, judges, immigrants and political opponents, and has promised to set the justice department and even the military on them. It bears repeating: a second Trump administration will not have the guardrails of the first, where Mike Milley and Mike Esper ignored orders to “just shoot” antiracism protesters.
American dissidents abroad might one day be targeted as well. The EU should announce a principle of non-compliance with any US attempt to extradite or harass US citizens being targeted for political reasons or for civil disobedience – such as engaging in tax resistance against a Trump administration, as some Americans did in small numbers during his first time in office and which has its roots in opposition to the Vietnam war.
Finally, Europe has an opportunity to invert the transatlantic brain drain. This time really is different and Americans know it: searches for “move to Europe,” or for individual European countries are on a totally different scale than ever before. There is a unique chance for Europe to roll out a red carpet of special visas and ease the path for highly educated Americans who want to flee Trumpmerica (like climate scientists sure to have their funding slashed). Or perhaps to partner with US universities that might eventually seek to establish satellite campuses for students and staff who can no longer be located in the US.
Underlying all Europe’s failures to solve its collective action problems is the same phenomenon – sometimes it thinks and acts like a continent but too often actually behaves like a group of small, fragmented nations. In 2003, the German philosopher Jürgen Habermas proposed that Europe might surpass this tendency by constructing European identity in opposition to theUS. Two decades later, he may inadvertently get his wish.
Alexander Hurst is a Guardian Europe columnist
Source: US Politics - theguardian.com
