ECB Governing Council member: It is “naive” for Europe to cling to the old economic model as the world is no longer rules-based

He pointed out that EU policymakers are still pursuing goals such as open markets and limited state aid, but these objectives no longer reflect the geopolitical reality shaped by Trump’s “America First” policy. “Open trade and strict state aid rules work in a rules-based world,” Wunsche said. “But that world is gone, and if you cling too much to a world that has disappeared, then you are being too naïve.” At the heart of his argument is that Europe has failed to internalize the fact that the global economy has moved away from a level playing field. He said the protectionist policies of the US have reshaped this landscape. “The world has changed, and we cannot keep doing the same things or giving the same answers, when these issues have in some way already failed in the past.”