“He may never be Europe’s president, but he can be its godfather,” said one EU diplomat who, like others in this piece, was granted anonymity to speak candidly. “The appropriate analogy is more criminal. We’re dealing with a mafia boss exerting extortionate influence over the businesses he purports to protect.”
“Brussels effect”
It was not long ago that the EU could describe itself credibly as a trade behemoth and a “regulatory superpower” able to command respect thanks to its vast consumer market and legal reach. EU leaders boasted of a “Brussels effect” that bent the behavior of corporations or foreign governments to European legal standards, even if they weren’t members of the bloc.
Anthony Gardner, a former U.S. ambassador to the EU, recalls that when Washington was negotiating a trade deal with the EU known as the Transatlantic Trade and Investment Partnership in the 2010s, the U.S. considered Europe to be an equal peer.
“Since the founding of the EEC [European Economic Community], America’s position was that we want a strong Europe,” said Gardner. “And we had lots of disagreements with the EU, particularly on trade. But the way to deal with those is not through bullying.”
One sign of the EU’s confidence was its willingness to take on the U.S.’s biggest companies, as it did in 2001 when the European Commission blocked a planned $42 billion acquisition of Honeywell by General Electric. That was the beginning of more than a decade of assertive competition policy, with the bloc’s heavyweight officials like former antitrust czar Margrethe Vestager grandstanding in front of the world’s press and threatening to break up Google on antitrust grounds, or forcing Apple to pay back an eye-watering €13 billion over its tax arrangements in Ireland.
Compare that to last week, when the Commission was expected to fine Google for its search advertising practices. The decision was at first delayed at the request of EU Trade Commissioner Maroš Šefčovič, then quietly publicized via a press release and an explanatory video on Friday afternoon that did not feature the commissioner in charge, Teresa Ribera. (Neither move prevented Trump from announcing in a Truth Social post that his “Administration will NOT allow these discriminatory actions to stand.”)