Europe: Geoeconomic reset and US relations – Rabobank

Rabobank analysts note Europe’s evolving geoeconomic stance and its complex relationship with the United States. The report notes expectations that the US will use the Munich Security Conference to reset strained EU ties, even as Europe aligns with US critical minerals policy and advances an EU-US trade deal, while preparing new security measures to restrict Chinese access to public funding.

Munich focus on security and trade

"Finland’s President expects the US will use the looming Munich Security Conference to reset strained EU ties."

"That follows Europe agreeing to join the US critical minerals plan, which limits its options for strategic autonomy, and as: the EU parliament agreed to proceed with the EU-US trade deal;"

"EU capitals say deleting US tech is not realistic; US-backed start-ups won a major German military drone contract; ‘even some of Mercosur’s biggest fans are nervous about moving too fast’, and the European Commission will unveil new security measures on access to public funding in March designed to shut out Chinese companies in particular."

"Or Munich could go as badly as last year."

"The US is likely to be enraged by recent EU actions against its tech firms and claims of election interference, as the conference report released ahead of it warns Trump is a “demolition man” and “most of Europe is watching the US’ descent into ‘competitive authoritarianism’ with rising concern or even horror, wondering how resilient US democracy really is.”"

"That said, the US ambassador to NATO just underlined the US just wants Europe to take primary responsibility for European defence as soon as possible, not as soon as comfortable – and there is a short shortlist of EU geostrategic options if Munich sees a new crisis."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)