Europe Repositions in an Increasingly Complex Geopolitical Landscape

Research evidence excerpt

Europe Repositions in an Increasingly Complex Geopolitical Landscape

EUROPE | Sustainability & Transition

Strategy June 16, 2026

Europe Repositions in an Increasingly

Complex Geopolitical Landscape

We present our highlights from an investor lunch with Sylvie Matelly,

Director at the Institut Jacques Delors. KTs: 1) Structural shifts in relations

with China, US, & Russia has led the EU to take a firmer stance on policy.

2) The EU is deepening internal integration (Single Market, CMU) while

strengthening ties with middle powers. 3) This drive for strategic autonomy

is creating investment opportunities in European companies positioned to

enhance resilience.

A new multi-crisis phase has emerged for Europe amid an increasingly contested global

order. Several structural ruptures are reshaping the global landscape, with more fluid but also

predatory dynamics to secure resources and influence. China is executing a long-term strategy

of asymmetric dominance; Russia has revived territorial conquest as a tool of foreign policy;

and the US has pivoted toward Asia, showing less strategic interest in Europe while taking a

harder line on trade.

The bloc's structural vulnerabilities leave it caught between superpowers, prompting efforts

to turn its weaknesses into strengths. Global influence is increasingly shaped by digital and

financial powerhouses, leaving Europe at a relative disadvantage in these strategic sectors.

At the same time, a “return of scarcity” in critical resources, which is being exacerbated by

the green energy transition, supply chain tensions, and demographic pressures, further strains

Europe’s position. The bloc's progress in renewables and electrification has eased some

energy security pressures; however, managing energy costs and supplies remains challenging