If the security of the EU is linked to its resilience

Does the European model have a future? According to economist Dani Rodrik (Project Syndicate, Feb. 10, 2026), in a scenario where China and the United States are unlikely to be inspiring models for those who value social justice, democracy and human rights, Europe is a crucial player and should quickly assume a leadership role in order to contribute to the construction of a more stable multipolar order in which democratic aspirations can continue to find a place. Despite economic and political weaknesses, Europe retains many assets: a social market economy model associated with relatively higher levels of equality and a more robust middle class than the US; a broad economic base - comparable to that of the US on a purchasing power parity basis - that includes many innovative industries.

The crucial question is how to make this model structurally sustainable in the current international scenario of geo-economic and political competition. The European Union as an institution -according to Rodrik- is not fully equipped to develop the bold new vision that circumstances require. Its founders believed that economic union would eventually produce political union; however, this prediction has not materialised. Today, geopolitical challenges require Europe to act swiftly in a coordinated manner on defence and security, while economic conditions call for a relaxation of certain Brussels constraints to allow experimentation at national level or in coalitions of countries. The test for the continent's leaders will be in reconciling these demands without weakening the European Union, on which our economic security ultimately depends.

Regarding the competitive challenge posed by China in manufacturing, an appropriate response consists of industrial policies targeted at strategic sectors, capable of directly stimulating innovation and focusing on advanced manufacturing segments where Europe is most likely to achieve technological leadership.

For decades, the economic power of the European Union was considered to be based on the promotion of free trade abroad and the pursuit of competitiveness within the Single Market, with the state acting predominantly in a regulatory capacity. In recent years, this paradigm has lost much influence in Brussels and in many member states. On the contrary, there is a growing realisation among elites that if the EU wants to continue to play an international role and maintain its status as an economic power, it must adapt its conception of economic power to an increasingly contested international context dominated by geo-economics.

More than ever before, the EU's security is deeply intertwined with its ability to become more resilient and reduce risks from economic ties that in past decades were considered benign. Profound technological changes intensify this competition and make economic and security challenges more complex.