The Trump administration has intensified its stark critique of the European Union, framing a recent controversial national security document not as an insult but as a necessary warning to revive the bloc's flagging economy.
A 'Warning, Not an Insult'
Speaking to reporters, Jacob Helberg, the US Under Secretary of State for Economic Affairs, addressed the fierce backlash across Europe. The strategy, published last month, contained dark references to 'civilisational erasure', citing migration, censorship, cratering birth rates, and a loss of national identity as sources of strife.
Helberg clarified the administration's intent. "That language is a warning. It's not an insult," he stated, explaining it stemmed from "a growing sense of concern and alarm in the United States" over Europe's relative economic decline as a share of global GDP.
"There is a degree of alarm in Washington about the need for serious reforms in order to jolt the European economy back to life," Helberg added, expressing belief that recovery is possible with the right policy changes.
The Call for Deregulation and Trade Pressure
The core US demand centres on a sweeping reduction of the regulatory burden in Europe. Helberg argued that drastic simplification would free up talent and capital, making the continent more attractive for US investment.
This push is backed by tangible trade threats. The US has repeatedly warned it will not lift its 50% tariffs on EU steel unless the bloc rolls back tech legislation affecting American billionaires like Elon Musk.
The document's threat to interfere in European politics to oppose "elite-driven, anti-democratic restrictions on core liberties" was previously condemned as unacceptable by European Council President António Costa.
Diverging Economic Fortunes
The US argument is underpinned by a significant growth gap. While expressing a desire for a strong Europe to maintain the historic 70-year transatlantic alliance, US officials point to stark economic contrasts.
The US economy grew at an annualised rate of 4.3% in the third quarter of 2025, rebounding from a contraction earlier in the year. Meanwhile, European growth remains modest.
- Germany recorded no growth in Q3 2025, with projections of 1.3% growth in 2026.
- The European Commission's own estimates project growth of just 1.4% for the EU in 2025 and 1.5% in 2027.
This disparity, from Washington's perspective, validates its urgent call for pro-growth reforms and frames its harsh rhetoric as a tough-love strategy for an essential ally.
