Amid global autocrats and rising inequality, the European Union’s future hinges on structural reforms, ambitious investments and sustainability.
Rarely in history has the distinction between what is right and what is wrong been so stark. At the same time, the need to reform the European Union has become an absolute necessity. For this, we owe an uneasy debt to the President of the United States, the Tsar of Russia, and a host of other aspiring autocrats, both in Europe and around the world, who confront us with dangerous absurdities we had hoped were consigned to a darker past. Those who support Donald Trump endorse not only his policies, but also a particular vision of the nation and the global order—an order grounded in personal alliances (typically with strongmen) and business deals (usually favouring a coterie of cronies).
To make this palatable, they promote the narrative that defending the sovereignty and interest of one nation ultimately serves all. A brief glance at the opening chapters of any book on game theory suffices to expose this fallacy. Yet, these ideas continue to exert a dangerous allure. Here, however, I will not dwell on the reasons far-right movements have taken such deep root in our societies. Instead, I will focus on what the European Union must do, regardless of the actions of others, to become a solid geopolitical actor, deliver to its citizens and stride confidently into the future.
Multilateralism, the Economic and Monetary Union, inequality and taxation, the transition to sustainability, and the EU’s institutional architecture—in each of these areas, the economic and political cycles of recent decades have laid bare the need for a fundamental shift. The problems—and the outlines of potential solutions—have become clearer in recent years.
The protests that erupted on the streets in the late 1990s and early 2000s were an early signal. Though their message was often still immature, they rightly called out the way globalisation had reshaped everything. It was already apparent then that such a powerful force could not be steered without more integrated global governance. The rapid development of telecommunications and transport since that time has effectively forged a “global village”. People, goods, services, and capital now flow across borders with unprecedented speed. This will not change. Those left behind—whether individuals, companies, or entire regions—are those who found themselves on the wrong side of competition, lacking an international regulatory framework to shield them or point the way forward.
In this time of shifting paradigms, calls for protectionism and economic nationalism have grown louder. These voices lead us down the wrong path. We must be clear: those who champion such views are on the wrong side of history. The world will not become less interconnected. The supply and value chains built over the past two decades are now indispensable pillars of our economies; dismantling them is neither simple nor desirable. Multilateralism, expressed through robust international organisations and a binding legal framework, is an imperative. Without it, relations between states will be governed by brute force and profit-seeking.
The American economist Daron Acemoglu has shown, through rigorous research, that the quality of institutions is the most significant determinant of prosperity, well-being, and living standards. Yet, as we are witnessing all too clearly today, the political nature of institutional reform often renders it exceptionally difficult. The European Council, for instance, is not truly a European institution; it serves primarily as a forum where national interests collide. It is the weakest link in the Union’s institutional triangle.
It has also become evident that an incomplete Union cannot meet the challenges of a rapidly changing world. Yet, few European leaders demonstrate the vision and courage required. We must pursue far-reaching reform to make the EU more integrated, swifter in its decision-making—thereby moving beyond unanimity—and less vulnerable to the political cycles of individual member states. We must also explain to citizens why this is the only viable path to a better future, and why protecting narrow national interests ultimately undermines the collective good.
The financial crisis that erupted in 2008 exposed the vast power of the financial sector, underpinned by its close ties to politics and its growing detachment from the real economy. In Europe, the crisis illuminated a hard truth: the European Union cannot function without genuine economic, monetary, fiscal, and political union. This requires a Union with a meaningful budget and the power to borrow on financial markets to fund common investments. In this context, the proposals put forward by Spain’s Prime Minister, Pedro Sánchez, advocating for a more ambitious and robust Multiannual Financial Framework (MFF), represent a much-needed breath of fresh air.
Yet, even basic proposals like those regarding the MFF encounter resistance, not only from political opponents but also from some within the social democratic political family. Meanwhile, our societies remain plagued by vast and unsustainable inequalities. A new class of near-deities—a status unseen since the days of pharaohs and emperors—now controls unprecedented resources and wields extraordinary influence over politics.
As early as 2013, the French economist Thomas Piketty demonstrated that the primary driver of inequality is the tendency of returns on capital to exceed economic growth, leading to extreme disparities. Yet, as Piketty reminded us, economic trends are not acts of God; they can be corrected through political action. Fair taxation is essential—taxation that reins in excessive wealth and redistributes it equitably. This is a necessary remedy to a socio-economic imbalance created by years of poor decisions, or worse, inaction. Dutch economist Ingrid Robeyns underscores that the concentration of extreme wealth is not only morally and socially indefensible but also politically, economically, environmentally, and psychologically damaging. It hinders progress and prevents the world from becoming a better place.
The transition to environmental sustainability demands a fundamental shift—from an economy driven by fossil fuels to one powered by clean energy and sustainable production methods. Every effort must be made to drastically reduce oil extraction, consumption, and plastic production. This is no longer merely a matter of improving waste disposal; it requires a complete transformation. Predictably, the nations opposing reductions in oil and plastic use are the major producers: Russia, Saudi Arabia, and Iran. And, of course, China remains the world’s largest producer and consumer of plastic.
The notion—a falsehood—that sustainability and economic growth are mutually exclusive is one of the most dangerous myths we face. The road to sustainability involves reducing social inequality and expanding access to quality education, alongside the transition to renewable energy. Progress in these areas propels society forward. Gross Domestic Product alone is a poor measure of well-being.
Let me be clear: the European Union must not change merely in response to the threat posed by the new American administration. If anything, that should serve as the final wake-up call. We need to complete and strengthen the Union because the systemic crises of the twenty-first century demand it. If the EU is to fulfil its historic role as a builder of peace, it must enhance its capabilities, refine its institutions, and improve their efficiency.
The pressing challenges I have outlined have been widely discussed in recent years. Yet, our collective failure to address them has helped usher in Viktor Orbán, Giorgia Meloni, and Marine Le Pen. These figures stand on the wrong side of history—now more than ever. In a world where the toxic masculinity of figures like Trump and Vladimir Putin has brought us back to the brutal politics of aggression and conquest, the choice is clear: that path is the wrong one. It leads to greater inequality, injustice, ecological disaster, and inevitably, more violence and war. It is a road that must be rejected, unequivocally.
The choice before us is simple. We must present it in simple terms to the people of Europe.
Luca Fossati is Advisor for the Socialists and Democrats Group in the European Parliament. He writes in a personal capacity.