The way out of the crisis: a strong social Europe

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Europe can do more than crisis management

The global order is changing rapidly and Europe needs to reposition itself. While the USA and China compete for world supremacy and Russia destabilises Europe with war and disinformation, the question arises: Does the EU want to remain a spectator in a multipolar world or be a player itself?

Decades of dependencies in the areas of defense, energy and technology have weakened the EU's capacity to act. The answer cannot be retraction and nationalism – but determined cooperation, strategic autonomy and strong alliances. Europe can only exist as a sovereign actor in a world of upheavals when it joins its forces.

Democracy under pressure

However, Europe is threatened not only from the outside, but also from within, as right-wing populist and radical movements have changed their strategy. “The EU faces mounting pressure to address economic, security, and climate challenges, but the rise of radical right parties threatens to derail the reforms needed to secure Europe’s future.”, states Catherine de Vries in the article series „EU Forward: Shaping European Policy in the second half of the 2020s“ by the online magazine Social Europe.Once they demanded withdrawal from the EU, today they are trying to sabotage it from within. Right-wing parties such as the AfD, Rassemblement National and Fidesz have worked their way deep into the political structures of the EU. Instead of constructive policies, they deliberately block reforms and paralyse decision-making processes. Their strategy is clear: the more incapable of action the EU appears, the easier it becomes to sow doubt about its legitimacy.

The nationalist US government under Trump is driving the division of Europe even further. “America First” policies and protectionism are threatening global trade and putting pressure on the European economy and security. The answer to these challenges can only be a determined strengthening of democracy.

Europe's strength: social protection as an economic driver

Strict austerity policies have slowed Europe down. While the USA and China are investing massively, rigid fiscal rules in Europe are preventing urgently needed future spending. Now is the time to rethink. Instead of cuts, we need targeted investments – in green energy, digital transformation and social protection. While other global powers are focusing on deregulation and pure competitive pressure, Europe has a unique opportunity: it can use its social protection as a foundation for sustainable and resilient growth. The welfare state is not a cost factor, but an investment in people – and therefore also in economic prosperity and long-term competitiveness.

Europe must not solely rely on the economic status quo, but must actively pursue new paths. Too little venture capital, too many regulatory hurdles, too little coordinated strategy. Instead of national solo efforts, a European solution is needed. Security and progress must be considered together in this context: Defense, energy and digital policy must not be viewed in isolation, but need to have a common direction.

The future of Europe is not a sure-fire success. It must be shaped – with courage, investment and the will to expand the strength of the European model. The European idea has always been at its most powerful when it was understood as a project of renewal. But this requires decisive political decisions that focus on European cohesion. A self-confident Europe that not only reacts to crises, but overcomes them. 

Karl Aiginger, for example, in his article on industrial policy for Social Europe, stresses that: "Europe can assume a greater role, but must uphold its ambitions and forge partnerships with parts of the Global South."

And so, those who continue firmly on this path will recognise: The light at the end of the tunnel is not a vague promise, but a strong, Social Europe that we are shaping today.