Foreword Børge Brende President and CEO, World Economic ForumMark Leonard Director, European Council on Foreign Relations (ECFR) Arancha González Laya Dean, Paris School of International Affairs (PSIA), Sciences Po Open but Secure: Europe’s Path to Strategic Interdependence January 2025 Europe is at a defining moment. The world’s shifting power dynamics, the accelerating climate crisis and rapid technological change are testing the continent’s resilience. More than ever, Europe must confront its vulnerabilities and rethink its role in this new global landscape. The column of Russian tanks that rolled towards Kyiv in 2022 was a geopolitical awakening for Europe, shining an unforgiving light on debilitating dependencies in energy, security and supply chains that had been built up over decades. Meanwhile, structural challenges loom large: while Europe accounted for almost a quarter of global GDP at the beginning of the millennium, it is now at 15%. Mario Draghi, former Prime Minister of Italy and President of the European Central Bank, warns that unless decisive action is taken, Europe risks a “slow agony”, with productivity growth stagnating at just 0.7% annually, far behind the United States (1.8%) and China (9%). At current productivity and demographic trends, Europe’s economic output is forecast to remain the same in 2050 as it is today . Relying on acute crises to overcome political deadlock might have been enough for the generations of leaders that followed Jean Monnet, a pioneer of European integration, but it is no longer enough in a context of chronic economic stagnation, a widening technology gap and Russia’s creeping territorial ambitions. The concept of European strategic interdependence offers a pathway forward. It calls for embracing interconnectedness while building resilience and autonomy. To succeed, Europe must safeguard its sovereignty while fostering collaboration – balancing self-reliance with strategic partnerships in a world of shifting alliances and growing geopolitical complexity. In 2024, the World Economic Forum, in collaboration with the European Council on Foreign Relations, convened the High-Level Group on European Strategic Interdependence, bringing together over 40 leaders from government, business and academia. Their deliberations in Madrid, Warsaw and Berlin focused on how Europe can navigate the world as it is. This report reflects the group’s discussions and presents ways for Europe to achieve strategic interdependence and adapt to an increasingly multipolar world. With unity and determination, the continent can confront its vulnerabilities and shape a clear, ambitious path forward to remain a decisive force on the world stage. Open but Secure: Europe’s Path to Strategic Interdependence 3

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