In the midst of an economic stall vis-à-vis the United States and China, the European Union is looking for a way forward. Pressed, in particular, by Germany, which is emerging from two years of recession, and France, which has virtually no budgetary flexibility, the Commission is now prioritizing Europe's dwindling competitiveness.

On Wednesday, February 26, Ursula von der Leyen presented a series of proposals designed to reduce Europeans' energy bills – which are three to four times more expensive than those of Americans – reduce bureaucratic hurdles for businesses and support the decarbonization of industry. Von der Leyen's plan reflects a complex and delicate balancing act.

While the president of the EU's executive is keen to preserve the Green Deal – her flagship initiative from her first term of office (2019-2024), which set the EU on the path to carbon neutrality by 2050 – she also has to reckon with new realities: the return of Donald Trump, who is aggressively deregulating, prioritizing "made in America" policies and threatening his allies with a trade war; the Chinese push into green technologies, which is endangering a whole section of European industry; the rise of the far-right in Europe and in the European Parliament; and the ongoing struggle between nationalists and the dominant center-right, who are seeking to dismantle key climate legislation.

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