Open but Secure Europe%E2%80%99s Path to Strategic Interdependence 2025

capabilities. Proposals such as a “CERN for AI” could pool resources – computing power, talent and infrastructure – into a European innovation hub to drive breakthroughs and establish the bloc as a global technology leader. Together, these measures would weave resilience, innovation and security into the fabric of Europe’s technological future. Until these domestic policies bear fruit, however, it is crucial to maintain a high degree of trade openness with key technology suppliers. Achieving this means navigating geopolitical challenges, including fostering a workable relationship with the US under a Trump presidency. Refining the EU-US Trade and Technology Council to focus on strategic collaboration on topics such as export controls, AI, semiconductors, biotech and defence technologies would be a pragmatic step towards fostering shared objectives. These efforts should be complemented by an EU commitment to increase international alignment on trade, industrial policies, investment screening, market access and competition policy. As part of this, the EU should pursue closer administrative cooperation to reduce regulatory friction and streamline trade with partners. As discussed in Laurence Tubiana’s chapter, the EU’s Global Gateway investment initiative can be expanded to support high-tech cooperation in AI, rare earth extraction and processing, and semiconductors. Together, these policies would reflect the EU’s commitment to international collaboration, not as a passive actor but as a proactive architect of a multipolar global order. By integrating smarter technological investments, industrial policy and better trade relations into a cohesive strategy, Europe can foster a form of interdependence that strengthens both global partnerships and its own resilience. Indeed, the future of Europe’s competitiveness and security hinges on placing research and innovation, science and technology at the heart of Europe’s economy.  Proposals such as a “CERN for AI” could pool resources into a European innovation hub to drive breakthroughs and establish the bloc as a global technology leader. Summary of recommendations –First, the EU should review its regulation and withdraw any unnecessary regulatory and administrative barriers, streamline member state policies (e.g. regarding funding) and help companies navigate legal complexities. –To ensure competitiveness and security, the EU should rethink its approach to technology and innovation by playing to its strengths. –To boost public funding for innovation, the European Innovation Council could tap into pension and insurance funds and develop schemes to coordinate investments across member states to unlock the advantages of the single market. –To entice more private sector funding, the EU could minimize investor risk by introducing robust de-risking tools, such as loan and guarantee programmes backed by EU institutions. –Greater investment in Europe’s infrastructure is needed, especially in water supply, hydrogen pipelines, charging points, renewable energy technologies and 5G networks. Funding should be directed towards creating a European innovation hub to pool talent and computing power. –To bridge the gap until these policies take effect, the EU should prioritize robust trade openness with technology suppliers (e.g. by refining the EU-US Trade and Technology Council), seek closer alignment with partners on technology policies and expand Global Gateway investments. Open but Secure: Europe’s Path to Strategic Interdependence 19