Europe must bolster its tech and industrial sovereignty to remain competitive
Europe must urgently bolster its tech and industrial sovereignty in order to maintain its competitive edge in the global landscape. Against a backdrop of growing influence from China and the US, the experts gathered at the first session in the 2nd series “Geopolitics and its impact on the agenda of boards of directors”, organized by the Esade Center for Corporate Governance and EsadeGeo, warned that Europe “risks lagging behind unless it boosts its investment in the tech industry considerably.” Globalization and geopolitical polarization make it necessary for European companies to adapt speedily by integrating geopolitics into their strategies and structures in order to anticipate risks and seize future opportunities. Only by achieving greater technological independence and responding speedily to global challenges can Europe remain a heavyweight in the global economy.
Geopolitical risks: a challenge for European companies
During the event, speakers insisted on the importance of integrating geopolitics into the agenda of boards of directors, addressed risks such as the fragmentation of the value chain, and advocated a long-term strategic vision for companies. As Pilar García Ceballos-Zúñiga, an independent board member of Amadeus and Renta 4 Banco, and the president of the Spanish Association of Foundations, pointed out, “until recently, geopolitics was not a proactive factor for boards of directors but now many sectors, such as tourism and the business world, are affected by political instability particularly due to visa constraints.” In this scenario, the experts emphasized the two-fold threat facing Europe: tech reliance on foreign powers plus greater political insecurity due to global conflicts.
During his speech, General Miguel Ángel Ballesteros, former director of Spain’s Department of National Security, warned about Europe’s vulnerability in the face of global competition and highlighted the lack of tech sovereignty as one of the main challenges. “Technology is crucial for security, and the best technology is American. If Europe does not channel its tech drive, it could find itself lagging behind in the global struggle,” he said. In this respect, the Draghi Report underlines that in order to remain competitive against powers such as China and the US, more than 20% of Europe’s GDP must be generated by the tech industry.
Cybersecurity and disinformation: threats to competitiveness
During the session, the dangers of disinformation campaigns which affect both national security and business competitiveness, were also addressed. “Fake news polarizes the population and affects institutions, undermining people’s trust in companies and the State’s ability to lead,” said Ballesteros. Cybersecurity was pinpointed as a critical area needing improvement by Spanish companies, particularly at a time of disinformation campaigns based not only on hoaxes but also half-truths, creating parallel realities that distort business and social decision-making.
Impact of US policy and EU geopolitical strategy
As regards the impact of the US elections, Fiona Maharg-Bravo, a partner at the Brunswick Group, explained that Donald Trump’s policies, such as tariffs and duties, will directly impact European exports to the US, possibly causing a 25% drop in sales. This scenario heightens the need for on-going strategic planning by companies as they adapt to an increasingly volatile international landscape.
Javier Font, executive vice president of Intelligence & Public Affairs, highlighted Germany’s leadership in incorporating geopolitics into boards of directors. “Germany has created geopolitical committees for its boards, and many of its industrial companies are already contemplating the creation of a Chief Geopolitical Officer. This geopolitical-oriented approach is gaining ground amongst European boards of directors and is expected to accelerate in the coming years,” he explained.
This session entitled “A new national security scenario” was introduced by Emma Fernández, independent board member and a member of the advisory board of the Esade Center for Corporate Governance, and Mario Lara, director of Esade Madrid and the Esade Center for Corporate Governance. Juan Moscoso del Prado, senior researcher at EsadeGeo, moderated the expert panel discussions.
