Donald Trump’s return to the White House has forced Europe to reassess its position in the world. The issue goes beyond tariffs and trade relations with the United States. It concerns the European Union’s ability to act as a political actor in an increasingly unstable international order, marked by competition between the United States and China and by the weakening of traditional alliances. This was the perspective underpinning the fifth edition of Leggere il presente, the SDA Bocconi Roma book club.

The discussion between Lorenzo Bini Smaghi, fellow at the Institute for European Policymaking at Bocconi University and author of Da soli – Gli europei alla prova di Trump nelle sfide dell’economia globale (Rizzoli), and Paolo Gentiloni, former Prime Minister of Italy and European Commissioner for Economy, moderated by Teresa Coratella of the European Council on Foreign Relations, brought out two perspectives on the same scenario.

According to Gentiloni, Trump’s second term points to something deeper than tariffs. The distinction between allies and adversaries is fading, and the European Union itself is increasingly seen as a problem by part of American nationalism. Europe must start from the present, without waiting for a return to past balances, in a context that can no longer be interpreted through old frameworks.

Bini Smaghi, by contrast, sees the real battleground as the technological, industrial and financial competition between the United States and China — a contest driven by others, in which Europe risks remaining on the sidelines, excluded from key decision-making processes.

On one point, the two perspectives converge: the issue is political before it is institutional. The European Union works where it has real powers and stalls where vetoes and national logics prevail. The tension between decision-making capacity and unanimity has deep roots and is now more visible. Sovereignist forces have changed strategy, operating from within European institutions, pushing national interests and reducing the scope for common positions.

Defence and finance emerged as the two key areas of focus. The gradual disengagement of the United States predates Trump and requires Europe to strengthen its capacity to act. The continent must develop its own tools, both in terms of investment and defence industry. On the financial side, as long as key sectors remain dominated by American players, Europe’s autonomy remains partial. In times of crisis, capital shifts elsewhere, leaving Europe exposed and with limited room to respond.

The initial question remains open: does Trump weaken Europe, or does he push it to complete a long-overdue path of strengthening? The answer depends on concrete political choices.

Leggere il presenteis an ongoing series that uses books as a starting point for discussion of the transformations shaping contemporary Italy. To find out about upcoming events, SDA Bocconi Roma events calendar.

SDA Bocconi School of Management