The sense of urgency has become Europe’s new normal as we navigate from one crisis to another. Yet “emergency” has become the universal excuse for any policy or corporate decision, whether justified or not. As always, workers and their trade unions are asked to be reasonable and act responsibly, told there is “no alternative” to the solutions presented by politicians and employers. But alternatives always exist.
We all agree that the tariff war initiated by the United States has made uncertainty the only certainty. For many of Europe’s core industries—especially those already struggling with the energy crisis, restructuring, overcapacity and weak demand—the tariffs represent yet another devastating blow. An immediate response to save our industry is crucial. Yet so far we see only the business-as-usual recipe of austerity, deregulation and wage moderation.
We need instead investments, a coordinated European industrial policy and a new approach based on internal demand management. If Europe can no longer count on the US as an export market, and the situation in other markets remains complicated, then why not strengthen our internal market by fostering domestic demand?
The sole exception to business as usual, so far, is the defence sector. The European Commission found 800 billion euros overnight for rearmament, proving once again that resources exist when the political will materialises. However, it remains unclear whether this money will support European companies or be spent on off-the-shelf arms from third countries—most notably the US, given the announcements regarding 600 billion euros of EU investments in the new EU-US trade deal.
Despite the dire economic situation, the new discourse on rearmament is creating a sense of naive optimism in Europe, suggesting that boosting defence will compensate for losses in other sectors like automotive or steel. But unless we plan to replace our cars and corporate fleets with tanks, this idea is simply unrealistic—not to mention the ethical problems it raises. Protecting Europe means more than rearming. Our internal strength depends on economic security underpinned by social stability. Both are now under severe threat, and so far no political solutions have been proposed to safeguard them.
On the contrary, we hear calls for wage moderation, cuts to social security systems and limitations to workers’ rights in the name of simplification. But moderate wages to finance what exactly? Consumer prices have increased in the US due to tariffs, forcing companies to offer discounts to retain customers. Are we moderating wages in Europe to finance cheap prices in the US?
Meanwhile, there are no guarantees for investments and jobs in Europe. We see instead profit maximisation on both sides: companies enjoy higher prices in the US whilst demanding moderated wages in Europe. This is simply unacceptable. Workers have reached their limits after years of a cost-of-living crisis that continues to squeeze their incomes. Their mounting anxiety manifests at the ballot box. Meanwhile, the planned austerity and deregulation threaten to jeopardise our democracy itself.
It is high time European politicians think outside the box. The economic model needs correction through active demand management. This requires investments with social conditionality that create good industrial jobs in Europe. The alternative to business as usual is not just possible—it is essential for Europe’s economic and democratic survival.
Judith Kirton-Darling is general secretary of industriAll European Trade Union. She was a British member of the European Parliament between 2014 and 2020 and confederal secretary of the European Trade Union Confederation.
Isabelle Barthès is deputy general secretary of industriAll Europe.
