Policy Briefs & Testimonies

Within NATO, and in U.S.–EU and NATO–EU relations, considerable effort will have to go into: rebuilding trust; strengthening democratic governance and shared values; aligning threat perceptions; breaking down barriers to collaboration; maximizing defense value for money; and tackling new and emerging challenges collectively. No problem can be solved successfully by the U.S. alone, by NATO alone, or just in the U.S.–EU context. The most effective approaches will combine the institutional strengths of both NATO and the EU and all 36 of their respective member states.

In the foreseeable future, Russia continues to pose serious challenges to the European and international security order, democratic systems of Western countries, and cohesion of major Western organizations such as the EU and NATO. The U.S. and Europe need to tackle these challenges together and pursue a hard line vis-à-vis Russia in order to put limits to its malicious actions. Europe has to take more responsibility for defending and protecting itself and promoting stability in its neighborhood, but the U.S. contribution to European security, especially when it comes to countering and deterring Russia, remains indispensable. The U.S. and European allies need to continue to develop credible defense and deterrence against Russia in the framework of NATO.

Both sides of the Atlantic are converging in their assessment of the challenges China poses to transatlantic prosperity and democracy. The U.S. and Europe must now build on this convergence to advance a common strategy toward China. Only together can the U.S. and Europe, alongside other democratic nations, maintain the necessary leverage in trade, technology and multilateral engagement to hold China accountable to a set of standards that protects democratic societies and contributes to global stability.

To develop a stronger transatlantic approach toward China, the Biden administration must work to rebuild trust in the transatlantic relationship and recommit to multilateral alliances and institutions abandoned by President Trump. Europe for its part must unite and take action where it sees China exploiting its critical industries and infringing on its values. A common position on China at the EU–level and across several influential EU member states is critical to making transatlantic cooperation on China feasible.

The Trump administration’s short-sighted geo-economic crackdown on the main international oil and gas producers—be it Saudi Arabia, Russia, or Iran—not only came at the expense of economic interests of allied countries in Europe, but also did long-term harm to the United States itself, helping its global rival China. Sooner rather than later—and a new administration offers this opportunity—U.S. policymakers will have to address businesses’ growing interests in (green) investment strategies and the rapidly intensifying geopolitical rivalry with China. Transatlantic cooperation in the development of sustainable energy sources and technologies will be instrumental. A “Transatlantic New Green Deal” would allow allies to generate much-needed new economic growth after the COVID-19-related economic contraction and improve the energy security of consumer countries, curb the effect of greenhouse gases and realign the balance of power in world energy markets.

The recent ruling of the German Constitutional Court on the ECB was an economic and political bombshell. The deep controversy that resulted – within Germany and on a European scale – illustrates that the ambiguity surrounding the euro area’s legal order and architecture may have reached its limit.

Europe has embarked on a generationally significant increase in its defense ambition. New European Union defense policy, funding, and capability development initiatives, as well as closer EU-NATO cooperation, carry opportunities for the United States. Where EU defense efforts historically fell short, the United States can now focus on the overarching shared interest in a stronger Europe that is less dependent on the United States for its security and defense.