January 29, 2025 - 10:00am

It is not yet February, but 2025 has so far been marked by a new intensity in the AI arms race. The release of new Chinese AI models from DeepSeek, which can be produced for a fraction of the price and using far less processing power than their American rivals, is being touted as artificial intelligence’s “Sputnik moment”. Is the US capable of achieving a modern-day Apollo 11 in response?

What is most striking, however, about the battle between the superpowers is how inconsequential Europe is in the whole process. For almost 30 years, the European Union has been publishing plans on how to be an equal player on the global stage. It started with the Lisbon Strategy of 2000 that aimed to transform the EU into “the most competitive and dynamic knowledge-based economy in the world” within 10 years. After failing to achieve this, the Lisbon Strategy was replaced with the Europe 2020 strategy that promised to create “smart, sustainable, inclusive growth”. Alas, after more years of unrealised targets, another strategy will be introduced this year.

While the competitiveness compass admits that too much regulation is killing economic growth, Commission spokesman Stefan De Keersmaecker told reporters that commitments to the Green Deal “remain fully valid”. The Green Deal requirements are, however, coming under sustained criticism. Environmentalism has been a major reason for overregulation and slow growth, a situation that increasingly few national leaders are willing to tolerate.

This was made clear by Polish Prime Minister Donald Tusk, who said this month that “if we go bankrupt, no one will care about the world’s environment any more.” He also demanded a “very critical review of all regulations, including those arising from the Green Deal”. This sentiment was seconded by Jordan Bardella of France’s National Rally, who wants to suspend Europe’s Green Deal in the same way Donald Trump has stopped similar programmes in the US.

This shift in attitude also found its way into a document published this month by the European People’s Party (EPP), the largest conservative group in the European Parliament. As Politico reported last week, the Commission is being urged to postpone the implementation of the financial and corporate sustainability regulations, as well as the EU’s new carbon border tax, for a minimum of two years. The leaders expressed opposition to the renewable energy targets, a component of the Green Deal that previously had broad agreement. The EPP now advocates for a “technology-neutral” climate policy, suggesting that no technology, such as heat pumps over gas boilers or renewables over nuclear energy, should be favoured, nor should any, like combustion engines in cars, be prohibited.

Officially, the Commission remains committed to its goal of carbon neutrality by 2050, but for how much longer? Any political establishment that wants to survive must address now the growing public discontent which is fuelling the popularity of Right-wing populist parties. If these parties which are specifically anti-Green Deal gain a foothold in the national parliaments of enough EU member countries, the Commission will be under serious pressure to renege. As history shows, missing targets is part and parcel of how the EU operates. This time, it might actually be better off because of it.


Ralph Schoellhammer is assistant professor of International Relations at Webster University, Vienna.

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