The Transatlantic Truth: Why Western Democracies Need Each Other 🌍🤝

There is a growing trend of polarization between countries and general tension in the world. I actually find it normal for citizens to want their country to do well and to prioritize its needs, but this must be logical. I see an increasing narrative, especially coming from the U.S., that it doesn’t need Europe, that Europe takes advantage of the U.S., and that the U.S. should not care about Europe because there is an ocean between us. In Europe, I also frequently hear claims about the U.S. such as, “These people don’t know what they are doing,” “Let’s become more independent,” or “We don’t need them.” 🇺🇸🇪🇺🗣️

In this article, I want to talk about two metrics: U.S. foreign affiliate sales in Europe and Household Final Consumption Expenditure (HFCE) per capita. 📊📈

U.S. foreign affiliate sales in Europe basically estimate how much money U.S. companies generate within Europe. For example, if Tesla sets up a manufacturing plant in Europe and sells cars there as a European company, that would count toward U.S. foreign affiliate sales. It is estimated that U.S. companies generate around $4 trillion annually. The argument is that while these entities operate as European companies that pay taxes and build infrastructure, their profits ultimately end up in consolidated corporate statements, allowing these parent companies to grow indefinitely. 💸

Household Final Consumption Expenditure (HFCE) per capita measures the total value of goods and services purchased and consumed by households. So, if you want to sell your products, you look at who is going to spend the most money. If you look at the top 20 countries globally, more than half of them are European. Statistically, European consumers pay significantly more. 🛍️

My final point is regarding language. Roughly 50% or more of Europeans speak conversational English. Essentially, when U.S. companies expand to Europe, they can set up entities with almost no language barriers and distribute their services across unified markets. 🗣️🏢

If Europe falls into a recession and significantly decreases its spending power, there is no substitute market for the U.S. If Europe falls, it is almost guaranteed that the U.S. will fall with us, and vice versa if the U.S. falls, we fall with them, too. The idea of stopping military cooperation between the U.S. and Europe, or refusing to share the latest technology with European countries, is crazy. Europe and the U.S. cannot replace each other. Instead of competing, every discussion should start with how we can benefit together as Western democracies. If this cooperation stops and both sides begin working in silos, Western democracies will face a serious existential crisis. ⚠️

Do I agree with all the regulations we have in Europe? No. Do I think bureaucracy has sometimes absolutely gone crazy? Yes. Are we struggling to keep Europe-based startups at home because they lack sufficient access to private capital? Yes. There are many flaws on both sides, but the only way forward is to sit down, have an open discussion, and figure out how we can move forward together. 🤝