Why the European Union Needs to Take the Lead

Maybe the current condition of the European Union is not the best it has ever been, but its value is nevertheless shining through. While US tariffs, trade wars, and a never ending Brexit in combination with signs of an economic slowdown sour business prospects, many organizations are looking for stability. And the European Union definitely has the ingredients to deliver that.

For the longest time it seemed like the looming threat of an international trade war with a key battlefield on the American-Chinese front did not have any major impact on the global economy. But lately things are beginning to change. Many US businesses have started to redesign their supply chains to respond to the peril of a stand-off with China. The logistical redirect seemed like a perfect fix until Donald Trump threatened to bring about additional tariffs on Mexico. And even though the US President meanwhile discarded the move, no one knows whether it will remain that way. To call this state volatile would certainly be an understatement. Things have become unpredictable. Even more so since these kind of sanctions do not just affect the US, Mexico, and China.

What organizations are now looking for is a state of accountability and dependability so that they can do business and prepare for it accordingly. That said, it is clear that lawmakers need to listen to their needs. Take China for one: While many countries around the world grow increasingly skeptical when it comes to China, many German businesses beg to differ hoping that trade relations can be improved as a recent article in the German weekly "Die ZEIT" points out.

No war is easy to win - and that certainly goes for trade wars, too. Particularly so if they include the two biggest economies in the world. The truth of the matter is: Every war comes with a death toll that inflicts pain and misery on all involved parties. And American businesses are beginning to feel that. Nevertheless, this may be the time for the European Union to step up and underscore its strength so it can become the anchor of stability that world trade is desperately looking for.

From day one, the Union has been international by design - which certainly is yet another expression of today’s business expectations in the sense that it encourages multinational supply chains, trade and business on the basis of a constructive dialogue. What the European Union will now need to maintain are clear positions on trade and the determination that it will not back down.  But if that is accomplished, it is certain that Europe can set an example that other countries can and will follow - as has been shown by the sanctions the Union has set for tech giants such as Google.

With that in mind it is important to underscore that this is not the time to sit back and hope that things may be different after the US presidential elections in 2020. Because while it may seem incomprehensible to many Europeans, President Trump’s chances to be reelected are not that bad.

So now is the time for European economies to rely on their European framework and focus on their strengths. That certainly pertains to traditional industries such as engineering, manufacturing. And while we may need to improve in some respects (e.g. AI), we have reason to be reassured by the fact that we are leading in many others (e.g. automation).  

We can certainly take the lead with regards to industrial wearables. After all, this is a fairly recent trend that - among other things - stresses the significance of the human worker and explores ways to connect them to the industrial Internet of Things. In other words: A key objective of the European Union that may bring about considerable benefits for world trade.