EU chief Ursula von der Leyen warned Wednesday the 27-nation bloc must move faster to boost its economy and defences, faced with a new world order defined by "raw power".
Addressing the European Parliament, von der Leyen said Europe had to toughen up to influence the world around it -- while warning the United States that strife between "allies" over Greenland would only embolden rivals of the West.
"The shift in the international order is not only seismic, but it is permanent," she told lawmakers, citing the "volatile situation" around Greenland, but also Russia's relentless bombing of Ukraine and tensions from the Middle East to the Indo-Pacific.
"Europe prefers dialogue and solutions-but we are fully prepared to act, if necessary, with unity, urgency and determination," she said.
"We will need a departure from Europe's traditional caution," said the European Commission President.
"We now live in a world defined by raw power -- whether economic or military, technological or geopolitical. And while many of us may not like it, we must deal with the world as it is now."
Von der Leyen described Trump's threat to slap tariffs on European allies as "simply wrong".
"If we are now plunging into a dangerous downward spiral between allies, this would only embolden the very adversaries we are both so committed to keeping out of the strategic landscape," she said.
"We are at a crossroads," von der Leyen told lawmakers, as EU leaders prepare to meet Thursday in Brussels to forge a common response to Trump's threats.
The term is shorthand for the bloc's Anti-Coercion Instrument, or ACI, that could sanction individuals or institutions found to be putting undue pressure on the EU.
Those sanctions could inflict untold billions of dollars in costs to US companies by restricting EU market access, barring them from EU public tenders, and potentially limiting foreign direct investment and curtailing the export and import of goods and services.
So far, there's little backing in the 27-nation EU to use it, with the exception of France.
Macron warned in Davos on Tuesday that additional tariffs by the US could force the EU to use its anti-coercion mechanism for the first time. "The crazy thing is that we could find ourselves in a situation where we use the anti-coercion mechanism for the very first time against the United States," said Macron, arguing that allied countries should be focusing instead on bringing peace to Ukraine.
"Can you imagine it? It's crazy. I regret it, but it is the consequence of unnecessary aggressiveness. Still, we must all remain calm."
Macron described the mechanism as "a powerful instrument, and we should not hesitate to deploy it in today's tough environment."
Addressing the European Parliament, von der Leyen said Europe had to toughen up to influence the world around it -- while warning the United States that strife between "allies" over Greenland would only embolden rivals of the West.
"The shift in the international order is not only seismic, but it is permanent," she told lawmakers, citing the "volatile situation" around Greenland, but also Russia's relentless bombing of Ukraine and tensions from the Middle East to the Indo-Pacific.
"Europe prefers dialogue and solutions-but we are fully prepared to act, if necessary, with unity, urgency and determination," she said.
"We will need a departure from Europe's traditional caution," said the European Commission President.
"We now live in a world defined by raw power -- whether economic or military, technological or geopolitical. And while many of us may not like it, we must deal with the world as it is now."
Von der Leyen described Trump's threat to slap tariffs on European allies as "simply wrong".
"If we are now plunging into a dangerous downward spiral between allies, this would only embolden the very adversaries we are both so committed to keeping out of the strategic landscape," she said.
"We are at a crossroads," von der Leyen told lawmakers, as EU leaders prepare to meet Thursday in Brussels to forge a common response to Trump's threats.
Macron floats idea
As EU readies counter-measures against the US, it's toolkit is mostly financial instruments, from steep tariffs on US goods to the so-called "trade bazooka" touted by French President Emmanuel Macron.The term is shorthand for the bloc's Anti-Coercion Instrument, or ACI, that could sanction individuals or institutions found to be putting undue pressure on the EU.
Those sanctions could inflict untold billions of dollars in costs to US companies by restricting EU market access, barring them from EU public tenders, and potentially limiting foreign direct investment and curtailing the export and import of goods and services.
So far, there's little backing in the 27-nation EU to use it, with the exception of France.
Macron warned in Davos on Tuesday that additional tariffs by the US could force the EU to use its anti-coercion mechanism for the first time. "The crazy thing is that we could find ourselves in a situation where we use the anti-coercion mechanism for the very first time against the United States," said Macron, arguing that allied countries should be focusing instead on bringing peace to Ukraine.
"Can you imagine it? It's crazy. I regret it, but it is the consequence of unnecessary aggressiveness. Still, we must all remain calm."
Macron described the mechanism as "a powerful instrument, and we should not hesitate to deploy it in today's tough environment."
