Newsflash: Europe isn't America
04 February 2025
As US economic power surges and deregulation reshapes industries, Europe faces mounting pressures to follow suit—but should it? This blog explores the unique political, cultural, and economic landscape of Europe, arguing that while change is necessary, blindly adopting the American model could threaten our public service broadcasters, cultural identity, and long-term stability. With global tech giants seeking greater influence, Europe must find its own path, preserving what makes it strong while embracing innovation on its own terms.
One of the recurring themes in the 'blitzkrieg' opening weeks of the Trump presidency is the rise of US economic power and the decline of Europe's. The threat of US tariffs is the latest twist in the narrative, but it runs deeper than that. It is a narrative that will also impact our own media industry.
There is a lot to be concerned about. The Draghi report on the future competitiveness of Europe, written by the former President of the ECB, made for sobering reading. Very few people quote the positives in the report - and there were some - but it's hard to ignore the negatives.
The sense of pessimism has worsened with the threat of US tariffs and flatlined growth for Europe. Political uncertainty in the continent's largest economies has exacerbated this, fueling talk of a leadership vacuum.
There is also ongoing discussion about over-regulation in Europe and a lack of real financial integration.
The European Commission has, rightly, again prioritized the creation of a true European Capital Markets Union, which would help mobilize savings and investment across the EU. Why wouldn’t they? We Europeans are among the world's biggest savers. But, as Christine Lagarde has highlighted, we hoard most of it in low-risk cash and deposits - EUR 11.5 trillion, to be precise! Removing barriers to cross-border investment would make a huge difference in all sectors. And yet, critics will recall that, ten years ago, former EU President Jean-Claude Juncker tasked Lord Hill with delivering it by 2019 - and we are still waiting.
But the criticisms of Europe go beyond that. I recently heard a very pro-European former US ambassador to the European Union describe his experience of Europe's lack of a risk culture. He spoke of a greater fear of failure and a bigger stigma for those who try but crash and burn. He also pointed out that, in the US, private equity investment, which is less risk adverse, drives start-ups, whereas in Europe, more conservative merchant banks play the key role.
All of this has led to increasingly pessimistic commentary about Europe. Not so in the USA! Attendees at the recent World Economic Forum Annual Meeting in Davos could not help but be struck by the sense of optimism - bordering on euphoria - among the US business leaders present. If expectations for a Trump presidency translated directly into growth, the US economy would already be riding an Elon Musk Starship to double-digit land.
US resurgence, European decline?
So the current narrative reads: US resurgence, European decline. Is it true? It certainly has the potential to be. But the reality is, we simply don’t yet know what a Trump presidency truly means for either continent.
We don’t yet know how the contradictions in his policy statements will resolve themselves. Talk of lower inflation sits uneasily alongside new trade tariffs and mass deportations. The President’s direct call to "Drill, baby, drill" doesn’t quite align with his indirect demand to "Reduce, OPEC, reduce." Drilling is expensive, and the US financiers funding it will be wary of both pressure on OPEC for lower prices and the risk of oversupply at home.
On the macroeconomic front, Jerome Powell and the US Federal Reserve have already shown initial resistance to Trump’s demands. And last week’s announcement from the Chinese AI company DeepSeek gave the US tech sector reason to pause.
However, even though he will never admit it, President Trump inherited a growing US economy. It is hard to imagine that he will not use his executive powers to minimize regulation and take further steps to turbocharge US business - regardless of the impact on the planet or social cohesion.
What does this mean for Europe, and for media in particular?
The US tech sector - which we compete against (and whose owners are currently camped out in Washington) - clearly sees an opportunity.
Should we, then, simply follow the same freewheeling path of deregulation and social deconstruction as the US?
It is clear that bureaucracy levels across Europe are incredibly high in some areas, making them difficult to manage. National self-interest continues to make the EU cumbersome to navigate. And it’s hard to deny that some sectors of the European economy are over-regulated - we know they are.
But - and it’s a big but - the global tech sector in Europe is not one of them. It has gained dominance partly due to some of the lightest of light-touch regulation imaginable. Yes, the EU has introduced new regulatory instruments - the Digital Services Act and the Digital Markets Act - but we still don’t know how they will be enforced. While radical change in Europe is undeniably necessary, blindly following the US down a deregulation highway for big tech is dangerous.
So-called Big Government is being dismantled in the US, and many will welcome that. Some will make compelling arguments for adopting a similar approach here. But we need to think long and hard about the consequences - especially in the cultural and media sectors.
Why? Because Europe is different.
Firstly, Europe is politically distinct from the US. There are countless examples.
While there is some common ground between the European and US right, right-wing populist parties in Europe believe in the concept of public intervention and public funding. Some have even sought and spent EU funding despite their ambivalence toward the institution itself.
The Green Party has suffered in recent polls around Europe, but surveys continue to show that Europeans - especially younger generations - remain deeply concerned about climate change.
In countries like Ukraine and Georgia, people are fighting and protesting for closer integration with Europe and EU membership.
The list goes on.
We are also different culturally, despite many common touchstones. We have countless extraordinary national cultures that we do not want to see homogenized in a worldwide big-tech content blender.
In our media sector, we have seen massive and positive change with the explosion of commercial media in the last two decades. Yet public service media remains strong, relevant, and increasingly important. It also remains the most trusted media across the Continent. Compare that to the US media landscape, where public media is massively underfunded or nonexistent, and where the market is fragmented, polarized, and increasingly unable to compete with social platforms. Is that what we want here?
To counter this cultural onslaught, we need strong national media organizations - funded by the public, accountable to the public, and working together with a social, not commercial, mission.
The pressures in Europe are building. We need partners and allies. It is undeniable that Europe requires change. But we also have so much that is worth preserving and defending. We must take our own path into the future.
Relevant links and documents
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