In April 2023, The Economist published an article pointing to the vast amounts of electricity infrastructure needed to reach energy transition goals. 

For what may be its most significant stress test since the end of the Cold War, European deterrence is under strain. Russia’s war against Ukraine has demonstrated Moscow’s willingness to use force and its ability to combine conventional operations with nuclear signalling, coercive rhetoric, and hybrid actions. At the same time, the gradual deterioration of transatlantic relations has revived concerns about the reliability of extended deterrence.

Germany is facing fundamental challenges to its economic and social model and is seeking a new course. The German post-war model was hugely successful, leading to economic strength and prosperity over many decades, but now it is steadily faltering. The previously latent fear of deindustrialization is becoming more concrete, particularly due to the weakening of a key sector: the automotive industry.

Over the past two years, Spain has emerged as one of the most vocal countries in supporting the Palestinian cause. While Madrid initially aligned with the prevailing European position, recognizing Israel’s right to self-defense after the 7 October attacks, it soon distinguished itself from most European Union (EU) Member States by questioning and later condemning Israel’s conduct of war in Gaza.

After Albania and Denmark in 2025, it will be Armenia’s turn to host the next summit of the European Political Community (EPC). As Yerevan gets ready to welcome the leaders of more than 40 European countries, the location of the summit in the heart of the South Caucasus draws attention to the geopolitical significance of the format, launched in Prague in 2022.

China’s rapid expansion in electric vehicle production is reshaping global automotive competition for both European and Japanese automakers. Japan —a pioneer in hybrid vehicles— is struggling to translate this leadership into battery electric vehicles (BEVs), as Chinese manufacturers rapidly scale production and exports. At the same time, China’s dominance in battery manufacturing and critical mineral processing exposes upstream vulnerabilities for Japan’s automotive industry. Together, these developments create a dual challenge: intensifying downstream competition in electric vehicle (EV) markets and continued dependence on Chinese-controlled supply chains.

At the World Economic Forum in Davos on January 20, 2026, Ursula von der Leyen, the President of the European Commission, stated that "geopolitical shocks can and must serve as opportunity for Europe".

In December 2025, Germany refused to split its bidding zone despite recommendations from ENTSO-E, in order to preserve its federal unity, market liquidity, and the competitiveness of its industry, at the cost of persistent North-South imbalances.