The European Union will have to strike a deal with US President Donald Trump on tariffs, NATO, and the stationing of US troops in EU countries. A trade war with the US will further weaken the already modest growth prospects in EU countries. Europe also still lacks a clear plan for how to defend itself if the US were to withdraw from its security system. Turning NATO into a more “Europeanized” alliance will require the development of a homegrown European military-industrial complex, and these things take time.
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