A chance for a bold approach from the EU
A week after Donald Trump's inauguration, nobody in Brussels is really any the wiser. The US President has refrained from immediately imposing tariffs on imports from Europe and China. But after the threats against Mexico and Canada, the concern that something else could follow has not diminished. In this respect, there can be no talk of giving the all-clear. On the contrary: in Brussels, measures are being worked out at full speed to deal with the fact that the USA is turning from a partner into an adversary.
Interestingly, the focus is not on counter-tariffs, as hardly anyone wants to get involved in an almost hopeless trade war with America. Instead, the focus is on exploring how the EU can increase its competitiveness and thus its resilience. And quickly at that.
The pressure is intense, and intensified by Trump's unpredictability. So intense that measures are being explored that are downright radical by Brussels' standards. Such as the slimming down of reporting obligations. Such as the abandonment of indicators like the Green Asset Ratio. Or the abandonment – not just the postponement – of critical Basel III rules for the trading book. What may sound like a mere ploy could turn out to be a major step that would finally allow the EU to shake off the accusation of being too set in its ways. Of course, this would not automatically get Europe's economy humming again. But the EU would send an important signal to investors that it is capable of moving forward.
Chance of a majority
Of course, there is still a catch. Many people are keeping their feet on the brakes. Governments that have no interest in reversing EU regulations. Parties who suspect that the reduction of reporting obligations would mean abandoning climate policy goals. Or consultants for whom less regulation ultimately means less business. Nevertheless, there is currently an opportunity to find a majority in Europe in favour of the EU actively changing and taking care of its resilience.
Trump is to blame for this. With his confused statements and provocations, he has fuelled concerns that the EU could become a pawn of the US. The EU Commission has already announced its so called „omnibus package“, which is intended to embody new and bold approach, by making significant cuts to reporting requirements. If it turns out to be a disappointment, the credibility of the new EU Commission will be demolished before it even gets off the ground.