The author, a professor at Georgetown University, and co-author of ‘Underground Empire: How America Weaponized the World Economy’ with Henry Farrell, sheds light on the potential implications of Donald Trump’s recent trade deal with Europe. While rumours circulated about possible compromises on the EU’s Digital Services Act in exchange for tariff concessions, the European Commission stood firm. However, the threat of US pressure looms, prompting concerns about prioritizing economic regulations over democratic values. This mindset, labeled the “Brussels defect,” poses risks as global politics increasingly shift towards national security and democracy preservation.
Europe’s historical success in leveraging market rules as a tool of global power faces challenges in the era of heightened geopolitical tensions. The once-effective Brussels effect, which translated political disputes into technical solutions through market mechanisms, is losing relevance. With American tech giants circumventing regulations and dominating key sectors, Europe’s regulatory approach appears inadequate. As the focus shifts towards safeguarding democracy and national security, Europe must reconsider its reliance on the American platform economy and prioritize developing its own technology and regulations based on democratic principles.
The Trump administration’s criticism of Europe’s social media regulatory framework as Orwellian underscores the need for Europe to assert its independence and redefine its technological landscape. Initiatives like the proposed EuroStack offer a strategic path towards fostering innovation and asserting European values in the digital realm. By shifting the narrative from regulation to innovation, Europe can address the Brussels defect and assert its sovereignty in the evolving global landscape.
