Customs dispute with the USA
How will Europe become more independent?
The tariff dispute with the USA, which flares up again and again, makes Europe’s dependence painfully clear. Economist Lars Feld explains why Europe must stand on its own two feet.
The demand for more European independence from the USA is becoming louder and louder. Ever since US President Donald Trump repeatedly tried to enforce his economic and trade policy interests with tariffs and trade restrictions, the question of Europe’s independence has become the focus. The economist Lars Feld emphasizes in ARD podcast Plusminus: Europe must finally ensure its own security.
Although we are already on the way to expanding conventional defense capacities, it is not enough. Ultimately, Europe must also replace the protection that American nuclear weapons have previously offered.
Security as Europe’s Achilles heel
This would require a fundamental change. The European Union would have to assume security policy sovereignty; national solo efforts would have to be given up in favor of common structures. Individual states – such as France with its nuclear deterrent – would have to cede competences.
Only then can Europe act on an equal geopolitical level. Feld puts it in a nutshell: Europe is an economic superpower, but so far it has been a dwarf in terms of security policy.
A home-made problem
The economist also sees the fact that things have gotten this far as a home-made problem. Europe has relied on US protection for too long and used the so-called peace dividend to avoid spending on defense.
Previous warnings from Washington had been ignored. Now this convenience is taking its toll – not least in the customs conflict that keeps flaring up.
Economic Strength as a counterweight
Despite all its dependencies, Europe is not defenseless against the USA, says Feld. As one of the most important markets for American companies, the EU has significant economic power. Access to this market is a powerful means of pressure, emphasizes Feld. Europe doesn’t have to put up with everything.
He considers the most recent reactions to pressure from Washington to be correct: the threat of counter-tariffs, countermeasures in trade or the temporary freezing of agreements.
Do not leave the path of diplomacy
At the same time, the diplomatic level should not be neglected. Discussions on the international stage – for example at the World Economic Forum in Davos – are crucial to avoid escalations and negotiate solutions.
In the long term, Europe must broaden its trade relationships, enter into new partnerships and focus less one-sidedly on the USA. This is the only way to gradually reduce economic dependence.
Don’t pay for independence with debt
More European independence will cost money. Building an independent defense and investing in the competitiveness of the economy require significant financial resources. Feld believes that financing this solely through new debt is dangerous.
National debt is already high in many places. The peace dividend of the past decades has been used primarily to expand the welfare state.
Cuts to the welfare state?
This prioritization must change. The population must be prepared for the fact that not all the projects they love will remain financially viable in the long term. Otherwise, if debts continue to rise, there is a risk that old financial crises will flare up again.
Nevertheless, Feld is fundamentally optimistic. Europe has options and room for maneuver. The path to greater independence is possible – but it requires political unity, strategic decisions and the willingness to make painful reforms. Realistically, it could take up to ten years before Europe takes this course as a whole.
