European strategic autonomy has returned to the centre of EU politics after European Commission President Ursula von der Leyen said in Davos on 20 January 2026 that Europe should seize today’s “geopolitical shocks” as an opportunity to build “a new, independent Europe”. Her remarks came as European capitals weigh how to respond to President Donald Trump’s tariff threats tied to Greenland.
Why Davos made the case for an independent Europe
Von der Leyen argued that recent security and trade disruptions are not temporary, and that Europe can no longer assume that predictable global trade and stable alliances will automatically protect its prosperity. In Davos, she framed the moment as a political opening: the EU should act more cohesively, invest more strategically, and reduce vulnerabilities that can be exploited through economic pressure.
Greenland and tariffs are testing the EU executive’s red lines
The immediate backdrop is Greenland. Von der Leyen said the EU executive views the sovereignty and territorial integrity of Denmark and Greenland as non-negotiable, while warning that tariff threats risk damaging cooperation between Europe and the USA in areas where interests still overlap, including Arctic security.
At the same time, she signalled that the EU wants to keep working with the USA in the High North, but would respond in a firm, united and proportional way if trade pressure escalates.
A new security strategy, icebreakers and investment in Greenland
Von der Leyen said the EU is preparing a dedicated security strategy, and linked it to a stronger Arctic posture. The discussion in Brussels has included practical capability gaps, such as Europe’s limited access to icebreakers and other specialised equipment needed for sustained operations in Arctic conditions.
Alongside security measures, von der Leyen also pointed to “massive” investment plans for Greenland. For the EU, that reflects a broader assumption shaping the strategic autonomy debate: resilience is not only about defence spending, but also about infrastructure, supply chains and the ability to support partners economically.
Competitiveness is now part of strategic autonomy
Von der Leyen’s message in Davos was not only about defence. She linked European strategic autonomy to the EU’s ability to remain competitive in critical sectors such as digital infrastructure, energy technology and industrial supply chains.
This is the context for a growing policy push to reduce dependencies in the green transition. Draft EU proposals discussed in recent weeks would introduce stronger “made in Europe” requirements for public procurement of key green technologies, from batteries to parts of wind and solar supply chains. Supporters see these tools as a way to protect industrial capacity and jobs, while critics warn they could increase costs or weaken competitiveness.
EU Inc and the 28th regime: making it easier to scale across borders
One of the most persistent constraints on Europe’s competitiveness is fragmentation. Even inside the single market, startups and scale-ups still face different national company-law frameworks, funding ecosystems and compliance burdens.
That is why the EU–INC idea is gaining attention, often discussed under the broader “28th regime” concept used in the Letta’s report: an optional EU-wide legal framework that would allow innovative companies to operate across borders with fewer legal frictions. Supporters argue that this would help European firms grow faster, raise capital more easily, and compete more effectively with the USA and China.
