New Year’s resolutions can be a tricky thing. In that weird period after Christmas, when many people are in a state of suspended animation, resolutions are eagerly made—and then, come February, easily forgotten. And while such resolutions are generally totally achievable (eg, eat better, read more, scroll less), people often fail to prioritise, are too distracted, or too hesitant to embrace change.
As the new year begins, Europe faces multiple pressure points: the upcoming French presidential election, an increase in China’s predatory economic practices, and geopolitical turmoil in full swing from Ukraine to Greenland, to name but a few. And there is only a narrow window for Europe to act before the cost of political and economic inaction become irreversible.
Now is the time for Europeans to decide what they can do better in 2026. These resolutions are not only nice to have, but a matter of survival.
Three resolutions for 2026
Here ECFR’s new DARE* initiative comes in. Its ideas and activities can help Europe prioritise, encourage and commit to three highly achievable, high priority and high-impact resolutions to set it up better for 2026.
Europe needs to diversify its industrial partners, enhance its industrial competitiveness and improve its resilience. DARE* will serve as the equivalent of a smartwatch, a personal coach and a group of public challengers holding Europeans accountable to their resolutions.
1. Reframe de-risking as re-engagement
The largest and most immediate risk to Europe’s economy comes from China. In 2025, China’s export restrictions on the rare earths critical for the clean technology and defence industry, and permanent magnets used in smartphones, motors and wind turbines, were just a taste of the country’s ability to strangle the European economy.
Now Chinese overcapacity is challenging European industry at home and abroad; its monopolistic drive and innovation capacity has the power to enhance de-industrialisation at speed.
The Chinese leadership is making its ambitions very clear: it plans to dominate not only the next generation of technology but all relevant sectors of traditional manufacturing. Germany alone has lost more than 50,000 jobs in the car industry in the last 18 months. China’s economic practices will lead to a loss in jobs, production capacity and innovation potential in Europe’s core industries while enhancing its blackmailing potential.
De-risking and diversifying from dependence on China are nominally European priorities. But in the spirit of New Year’s resolutions, European leaders and the European Commission should seek to reframe derisking as a chance to expand global trade. This pro-cooperation, pro-industry and pro-growth agenda should be embraced by all self-identifying free traders and liberal economists. De-risking can be the opposite of protectionism; setting boundaries for Chinese products keeps international trade alive.
End-of-year expectation
Europe has already declared its intent to re-engage through its Critical Raw Materials Act and the EU economic security doctrine. A series of free trade agreements are also in the pipeline. Now, in 2026, member states must take the collective decision to follow through on these commitments.
The first step would be a narrative shift from “de-risking” to “re-engaging” by the commission and as many member states as possible. The second step is finalising an EU-India Free Trade Agreement in the first quarter of 2026. These shifts would allow Europe to reduce its heavy reliance on China for critical goods by finding alternative suppliers and encourage Europe to discover its options—and its strengths—again.
For additional punch, the bloc and its member states should develop an integrated, joint platform that links de-risking needs with potential partners outside and inside the EU. Such a platform should also provide an overview of existing programmes or funding sources through which Europeans could facilitate this process.
2. Unleash the single market
The second resolution focuses on Europe’s existing strengths. The single market remains its biggest asset, which if unleashed further has the potential to reshape global trade—and benefit European prosperity. This is not news, just as classic resolutions like stopping smoking and exercising more are not highly innovative concepts to improve wellbeing. However, they can be highly effective.
Removing barriers in energy, telecommunication and capital markets would ramp up demand and scale. Widespread European demand for electric vehicles and batteries, wind power and biosolutions can steer global supply chains away from dependency on single sources of supply—which, in almost all cases, means China. But it also challenges an emerging global economic order moving toward fragmentation and monopolies, and away from rules-based trade.
Coordinated public procurement, predictable regulatory frameworks and joint investment in these industrial value chains could make European demand a geopolitical and geoeconomic asset—and an instrument of climate ambition. But this only works if Europeans develop concrete steps towards reducing internal obstacles.
End-of-year expectation
In the spirit of prioritisation, over the course of 2026 the EU and European leaders should concentrate on creating the conditions for a fully integrated energy market.
Driving up efficiency, predictability and resilience—while driving down costs—is core to European competitiveness. A 2023 report by the former prime minister of Italy, Enrico Letta, called the single energy market “Europe’s best asset to ensure its success in a novel global order”. A lot has happened since but Europe’s single energy market—a long-promised system for seamless cross-border power trading—remains fragmented, despite the 2025 European Grids Package’s promising start.
Building on one of Letta’s many sensible suggestions, in 2026 Europe could establish a single executive entity to manage EU clean-energy funding programmes and incentive schemes. This should be relatively easy to put into action and will immediately benefit consumers, companies and public stakeholders. Such an entity could serve as a blueprint for other policy areas while emphasising future-oriented energy sources.
3. Focus on electrification
The last resolution builds on the first two. If completed, all should produce mutually beneficial results. Europe is a net importer of fossil fuels; through electrification, Europeans can increase their resilience and independence while fostering trade relations with hubs of the energy revolution. These include countries in North Africa and the Middle East, and Asian clean tech manufacturers in India, Indonesia or Australia.
The commission is already focusing on European Energy Highways, with the aim to unblock key cross‑border bottlenecks. However, these also have the potential to become a flagship for transmission, interconnectors, storage and industrial clusters such as wind‑to‑hydrogen‑to‑steel or battery value‑chain corridors, with political sponsorship and faster permits granted for new energy projects. Only real political commitment can generate the necessary dynamic for successful investments in this sector.
End-of-year expectation
The upcoming EU Electrification Action Plan could be the starting point for this new dynamic. Member states should embrace the momentum the plan generates and champion individual policies to reduce electricity costs for industries and households.
At the same time, a working group—with support of the DARE* grid taskforce—should be set up to identify any lessons learned from the blackout across Spain and Portugal in April 2025. It should also focus on preparing European grid infrastructure for a big push on wind energy, solar energy integration and electrified transportation.
For those who DARE to act
As 2026 begins, shifting geopolitical alignments and external pressures are creating a rare moment for Europeans to mobilise the political will to act. However, this window will close quickly if elections across member states result in more nationalist victories.
Europe’s fatalism and self-flagellation are disproportionately high when it comes to dealing with China, Russia and the United States; the single market; the future of free trade; or populist blame games. But instead of giving up before even trying, Europeans are well-advised to use the first few weeks of an already chaotic start to the year to focus on what is realistically possible—and work hard at sticking to a clear set of priorities.
About the Authors:
Nina Schmelzer is a research assistant for the DARE* initiative at the European Council on Foreign Relations, based in Berlin.
Janka Oertel is a distinguished policy fellow with the European Power programme at the European Council on Foreign Relations.