Markus Schmidt, Europe region analyst at Worldwise Analytica

Markus Schmidt

Analyzing Today, Anticipating Tomorrow

Europe Faces Shifting Alliances, Hybrid Threats, and Arctic Rivalries Amid Ukraine Escalation and Political Instability

Hybrid warfare remains a critical threat to European security, as Russian-linked sabotage activities in the Baltic continue to undermine maritime and energy infrastructure. The Eagle S investigation highlights the persistent risks posed by shadow fleets, underscoring the urgent need for NATO and EU integration in maritime security. Without decisive action, hybrid threats will continue exploiting systemic vulnerabilities, risking broader disruptions in energy supply and communication networks.

The Arctic emerges as a focal point for strategic competition, with Denmark reaffirming Greenland's sovereignty amidst U.S. calls for greater influence. The Arctic's vast resource reserves and strategic positioning make it a key area for military and economic dominance. Europe must counterbalance external pressures through a cohesive Arctic strategy that incorporates defense readiness and sustainable resource management, ensuring stability in this increasingly contested region.

The Ukraine conflict escalates further, with Russia intensifying drone and missile strikes on civilian and energy infrastructure, including major cities like Kyiv and Zaporizhzhia. Ukraine's defensive successes, including the interception of Russian drones, highlight its operational resilience but underline the need for sustained Western military aid. The involvement of North Korean troops on Russian soil introduces a troubling international dimension, further complicating NATO's strategic calculus and increasing the risk of broader regional instability.

Political instability undermines governance and EU cohesion, with Slovakia, Hungary, and Romania showcasing internal and external pressures. Slovakia's dispute with Ukraine over gas transit highlights Moscow's continued leverage over European energy markets, threatening solidarity within the EU. Meanwhile, Hungary's anti-corruption office faces internal turmoil, raising questions about its credibility amid persistent rule-of-law concerns. These dynamics necessitate a robust EU framework to counter political fragmentation and reinforce democratic governance.

Shifting alliances between global adversaries exacerbate Europe's vulnerabilities, as Russia's deepening ties with Iran and North Korea create a united front against Western interests. Moscow's agreements with Tehran extend beyond military cooperation, encompassing energy and trade, while Iran's provision of drones underscores its pivotal role in the Ukraine conflict. These alliances demand heightened vigilance and coordinated countermeasures from the EU and NATO to contain their strategic implications.

Economic fragility continues to challenge Europe, with Italy's rising debt levels and Germany's stagnation reflecting broader eurozone vulnerabilities. The EU's revived trade deal with Mexico is a step toward diversification, but the bloc must accelerate innovation and intra-European trade to mitigate external shocks, including protectionist policies anticipated under the incoming Trump administration. A cohesive economic strategy is essential to preserve the EU's global competitiveness and fiscal stability.

Migratory and humanitarian challenges persist, as the Canary Islands report another migrant shipwreck, emphasizing the need for a unified EU migration policy. Fragmented national approaches continue to strain regional stability and exacerbate political tensions, necessitating a comprehensive strategy that balances border management with humanitarian obligations.

In conclusion, Europe faces an intricate web of interconnected crises that demand a unified and proactive response. Strengthening EU-NATO collaboration, addressing hybrid threats, and advancing governance reforms are critical to safeguarding the region's stability and strategic interests in an increasingly polarized global landscape.

Geopolitical Risk Assessment for the Europe
(18-01-2025)

Europe's geopolitical landscape faces unprecedented complexity, shaped by hybrid warfare, shifting alliances, and economic vulnerabilities. With escalating Arctic rivalries, the Ukraine conflict intensifying, and political instability weakening internal cohesion, the EU and NATO must adopt proactive strategies that align defense, governance, and economic resilience to ensure stability.

Geopolitical Risk Index

Developments to Follow for the Europe (See All Global)