Von der Leyen Warns Against Race to Bottom Due to Geopolitical Rivalry
Reading between the lines of the keynote address delivered by EC President Ursula von der Leyen at the World Economic Forum 2025 (#WEF2025), one gets the sense that EU is hedging its bets on US by keeping the door open with China as Trump threatens to raise tariffs on goods from the EU.
In contrast to Trump who signed off an executive order to withdraw the US from the #ParisAgreement, she reiterated EU’s commitment to the fight against #ClimateChange.
Starting her second term as President-elect of the European Commission, she plans to rekindle trade talks with India and even plans an official visit to India soon to push the cooperation agenda. In that respect, the next round of the EU-India #FTA is scheduled to take place in Brussels from 10 to 14 March 2025.
It is also worth recalling that the EU sealed an FTA with the Mercosur bloc of South American countries. The EU has also reactivated trade talks with Malaysia
“Europe will keep seeking co-operation — not only with our long-time like-minded friends — but with any country we share interests with. Our first priority will be to engage early, discuss common interests, and be ready to negotiate. We will be pragmatic, but we will always stand by our principles. To protect our interests and uphold our values –- that is the European way ”
EC President Ursula von der Leyen
In order to reinforce EU competitiveness, she announced a uniformization of certain corporate regulations across EU which will facilitate the multi-country operations and optimize the operating costs of companies across Europe.
Talking about the Ukraine-Russia war, President Von der Leyen pointed out that the EU has had to diversify its energy sources away from Russia. It has been a painful but necessary experience. The need to find affordable and renewable energy sources remain a top priority for EU.
Before the war, EU was relying on Russia for about half of its energy needs. Now, that figure has dropped down to just 3%. At the same time, the energy mix is EU has seen a notable transition towards renewable energy sources, with a ban on coal in effect.
In conjunction with the International Energy Agency represented by its Executive Director Faith Birol, she officially launched the Global Energy Transition Forum. The Forum already includes Brazil, Canada, DR Congo, Kenya, Peru, South Africa, UAE and the UK and many other states, which share the same vision and objective to accelerate the #EnergyTransition, implement flagship projects and unlock for green investment.
Geopolitical rivalry must not turn into a race to the bottom, she warned. The world’s major economies are competing fiercely on #CriticalMinerals, AI and global trade. She suggested that the EU must ‘change gears’ in order to safeguard its interests in this new global landscape.
“The rules of engagement between global powers are changing. We should not take anything for granted. And while some in Europe may not like this new reality, we are ready to deal with it. Our values do not change. But to defend these values in a changing world, we must change the way we act. We must look for new opportunities wherever they arise. This is the moment to engage beyond blocs and taboos. And Europe is ready for change!”
EC President Ursula von der Leyen