EU’s Global Power Debate: Von der Leyen Defends Trade, Draghi Warns of Evaporating Illusion

Europe’s economic and geopolitical trajectory is currently framed by a critical debate between European Commission President Ursula von der Leyen and former European Central Bank chief Mario Draghi. While von der Leyen defends the EU’s active trade diplomacy as a bulwark against fragmentation, Draghi critically assesses the bloc’s diminishing global influence despite its economic scale.

• European Commission President Ursula von der Leyen advocates for proactive trade diplomacy to counter geopolitical fragmentation.
• She emphasized a crucial trade agreement with the U.S. that averted a potentially damaging trade war.
• Von der Leyen champions market diversification and a “strong and independent” Europe through internal market completion.
• Former ECB chief Mario Draghi challenges the notion that the EU’s economic size translates directly into geopolitical power.
• Draghi declared that the current year would mark the “evaporation” of this long-held illusion, calling for critical adaptation for EU growth.

Ursula von der Leyen: Defending EU Trade Diplomacy

In a major European newspaper article, von der Leyen addressed critiques of the EU’s strategic presence. She underscored the importance of a recent trade agreement with the United States, negotiated with the Trump administration, to avert a damaging trade war between the democratic world’s largest economies. Such a failure, von der Leyen suggested, would have been celebrated by geopolitical rivals.

Averting Conflict: The US Trade Agreement

The agreement, capping U.S. tariffs at 15% on key European exports—automotive, pharmaceuticals, semiconductors, and timber—was termed a “good, if not perfect agreement.” Von der Leyen emphasized tariffs invariably burden consumers and businesses, elevating costs and undermining economic competitiveness. This pact forms part of the EU’s broader market diversification strategy.

Broader Engagement and Strategic Autonomy

The Commission President cited proactive global engagement: concluded agreements with Mexico and Mercosur, strengthened ties with Switzerland and the UK, and progress toward deals with Indonesia and India by year-end. She advocated for a “strong and independent” Europe, urging single market completion and enhanced competitiveness and sustainability.

Mario Draghi’s Critical Perspective

The Illusion of Geopolitical Power

Conversely, Mario Draghi, speaking at a prominent Italian political forum, delivered a stark assessment. He argued the long-held belief in the EU’s economic size (450 million consumers) translating into commensurate geopolitical power has proven illusory. Draghi declared that “this year will be remembered as the year in which this illusion evaporated,” echoing his prior report on boosting EU growth through critical adaptation for survival.