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Is the US-Europe alliance permanently damaged?
Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Stockholm, Sweden.
Is the transatlantic relationship permanently damaged by what we have seen during the last 10 days or so?
Well, there is no question that the last 10 days or so have been the worst by far for the transatlantic relationship in, well, modern recorded history. You can go through all of the details if you want. It started with the shameful vote in the UN General Assembly on the same day that was three years after the war of aggression that Russia started, where the United States turned around, lined up with Russia, and with primarily a bunch of countries that you would not normally like to be seen in the company of, in order to try to defeat the Europeans, and defeat the Ukrainians, and defeat the Japanese, and defeat the Australians, defeat all of the friends who have criticized the Russians.
It was truly shameful. It was defeated, needless to say, but it left deep marks there. And then it was downhill from there, with that particular week ending with the ambush in the Oval Office, with all of the details associated with that, with sort of a childish dispute about dress codes, and respect for whatever, and total disregard for the important issues that are at stake at the moment. And to that was added, the vice president seriously insulting the allies, primarily the British and the French, and then cutting of aid to Ukraine, including intelligence cooperation, which is unheard of, unheard of when it comes to these particular issues.
So, is damage permanent? Well, one would hope that... well, hope springs eternal, that there would be a way back. But this will be remembered for a long time to come. And the reaction in Europe, well, you have to keep a straight face if you are a political leader. And they do, they hope for the best, but they're increasingly preparing for the worst. What we might be heading into is Mr. Trump, President Trump lining up with President Putin in a deal that is essentially on Russia's term over Ukraine, then trying to force Ukraine into that particular deal, a repetition of Munich 1938.
Will that work? I think it's unlikely to work because the Ukrainians are determined to stand up for their country. And they have the support of the Europeans. Czechoslovakia in 1938 didn't have much support. So, whether it will work or not is debatable, but that is the direction in which things are heading at the moment. Can this be stopped or can the trajectory of things be changed? Let's hope. There's a flurry of meetings in Europe. There will be a lot of contacts across the Atlantic. There is a strong support for Ukraine in Europe, but then deep apprehensions of where we are heading. Further four years with President Trump. After that, (possibly) four to eight years with JD Vance. Well, well, there's a lot of thinking that needs to be done on this side of the Atlantic.
The convergence of geopolitics and cyberspace
Watch the full conversation: Is the Europe-US rift leaving us all vulnerable?
This conversation is presented by GZERO in partnership with Microsoft from the 2025 Munich Security Conference in Munich, Germany. The Global Stage series convenes global leaders for critical conversations on the geopolitical and technological trends shaping our world.
Trump's Ukraine peace plan confuses Europe leaders
What is the European reaction to what President Trump is trying to achieve in terms of peace?
Well, confusion. A lot of people, and there are quite a number of European leaders here, today, don't really understand what President Trump is up to. He wants peace, that's fine. But peace can be, well, that could be the complete capitulation of Ukraine, that is the Putin definition of peace. Or it can be the victory of Ukraine, that's another definition of peace. So exactly how President Trump intends to pursue this? And without Europe, obviously, neither Putin nor Trump wants Europe around the table.
But how do you do it without Ukraine on the table? Because a lot of the things that are going to be necessary to agree with are things that have to be agreed with Ukraine, with President Zelensky. So a lot of question marks. The desire for peace is clearly here, no question about that. This war has to come to end. But the peace has to be just, it has to be stable. It has to be something that is not just a pause for Russia to recalibrate and restart the war.
So a lot of things to discuss between the European leaders and between the European leaders and President Zelensky, is happening in Kyiv here today. But also eventually, across the Atlantic, President Macron is in Washington today, Prime Minister Starmer is heading into Washington on Thursday.
Is free speech under attack in Europe? Roberta Metsola weighs in
“There is a sort of doubt about freedom of expression here or protection of free speech in Europe,” says Roberta Metsola, president of the European Parliament.
Speaking at the 2025 Munich Security Conference, she addresses Europe’s fractured political landscape. She highlights voter demands for leaders to “act faster and with determination” in defending free speech while admitting that “Europe has not shown enough self-confidence, and these last few days have laid it bare.” As debates on democracy, censorship, and leadership intensify, Metsola reaffirms that European values remain strong. She draws a powerful parallel to Europe’s past struggles under the Iron Curtain, reminding the world that Europeans have fought for and won their freedoms before—and can do so again.
Watch the full conversation: Is the Europe-US rift leaving us all vulnerable?
This conversation is presented by GZERO in partnership with Microsoft from the 2025 Munich Security Conference in Munich, Germany. The Global Stage series convenes global leaders for critical conversations on the geopolitical and technological trends shaping our world.
Lettering on a logo of the European Union, AI-Act, the symbolic image for the laws and regulation of artificial intelligence in Europe.
Europe’s AI Act starts to take effect
As of Sunday, companies in Europe cannot legally use AI for facial recognition, emotion detecting, or scoring social behavior. The penalty is steep: up to $36 million in fines or 7% of global annual revenue.
The AI Act was formally adopted in September after years of deliberation in the European Union’s deliberative bodies. This is the first major government to bring comprehensive AI regulation to bear, and the rest of the law’s provisions will roll out over the next year and a half.
Europe had already gone much further on AI safety than the US federal government under Joe Biden, but with Donald Trump in office — who recently scrapped Biden’s safety-focused AI executive order — the gap in regulation between America and Europe promises to be even greater.
Trump has vowed to retaliate against the EU over the AI Act, which he previously called a “form of taxation,” but that threat wasn’t enough to deter Brussels from plowing ahead.
EU rolls back Syria sanctions for economic rebound
Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Abu Dhabi, UAE.
Is the European Union opening up to cooperation with the new government or regime in Damascus?
Yes, they are gradually. The foreign minister of the European Union took the decision early this week to start to ease sanctions on Syria that have been in place for years. And that is very important in order to start to get the economy going in the country. And that, of course, is very important in terms to start addressing all of the humanitarian needs. And also, eventually getting the economy going so that at some point in time perhaps people can start to move back to the country that they were forced to flee from during the years of civil war and repression.
Why was the prime minister of Serbia sacked?
That was part of a bigger move, defensive move, you can say by the president, by President Vučić. He has been under intense pressure due the last few months. There was an accident in Novi Sad, the second-biggest city that was blamed on the roof fell in, and that was blamed on bad construction and corruption. That has crystallized massive opposition to his regime, which has been there for a long time and is seen as increasingly authoritarian. So, pressure has been building up and he was now forced to concede sacking the prime minister and announcing new elections in April. So new elections in April in Serbia. There will be elections in Kosovo before that. There will be elections also in Albania. So, a lot of things are in flux in the Southern Balkans.
At Davos, all eyes are on Trump
Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Davos, Switzerland.
What’s been going on here?
It’s been Trump, Trump, Trump, Trump. It’s been very much dominated by assessments, curiosity, concern about the transition in the US. A lot of businessmen are fairly, sort of, upbeat. They think there’s sort of a deregulation and lower taxes, that’s good. Economists are more worried. Debts and deficits, that’s not good. And those dealing with geopolitics, like myself, are deeply concerned.
Is he going to go to war with Denmark over Greenland? What’s going to happen with the Panama Canal? Is their Middle East policy that is credible? And what is he really up to when it comes to dealing with Mr. Putin on Ukraine? There are lots of questions, lots of concerns. But, upbeat assessment, in spite of that.
Container ships in front of the port of Bremerhaven.
How scared should the world be of Trump’s economic threats?
On Wednesday, President Donald Trump used his social media platform to threatenVladimir Putin with “high levels of Taxes, Tariffs, and Sanctions on anything being sold by Russia to the United States” unless he struck a bargain over Ukraine.
There’s just one problem: Russia has very little trade with the US. Americans imported just $2.8 billion in goods from Russia from Jan. to Nov. 2024, less than a tenth of the pre-war figure and less than 1% of all US imports over the same time period. The extensive sanctions already in place have hardly brought Moscow to its knees, and arguably benefited US rivals like China, Iran, and North Korea. It’s tough talk, but it’s not likely to push Putin to the table.
China is a different story. Trade with the US added up to an average of $54 billion per month in 2024, and the 60% tariffs Trump threatened to put on China on the campaign trail would cause severe damage to both economies. That may be why Trump is backing off the high sticker number and said Tuesday he is considering imposing at 10% tariffs on Chinese goods as soon as Feb. 1.
Now, 10% is a number that Beijing feels is much more manageable. China is experiencing price deflation — a really damaging phenomenon with one silver lining in that it could mean US consumers wind up paying about the same prices even if Trump hikes tariffs. The central government is also promising funds to stabilize the stock market in the face of potential tariffs and prevent investors from seeking safer shelter for their cash.
The fears are more real in Europe, where Trump threatened to impose tariffs without specifying a rate on Tuesday. Growth in the region’s most important economies is already stagnating, and even small barriers to trade with their most important partner will have serious consequences. Further economic troubles could empower far-right movements across the continent, which may suit Trump just fine. We have our eye on Germany, which will hold elections in precisely one month.
And don’t forget Canada and Mexico, which are staring down the barrel of 25% tariffs that Trump threatened on Tuesday as well. It’s creating a decidedly tense atmosphere in North America, with Canadian Prime Minister (for now) Justin Trudeau promising retaliation, which Mexican President Claudia Sheinbaum has hinted at as well.
The bottom line? You’re probably in for rising prices in the near future … unless everyone can come up with a reason for Trump to let them slide. We’re watching what Trump says when he speaks at the World Economic Forum in Davos on Thursday.