Markus Schmidt, Europe region analyst at Worldwise Analytica

Markus Schmidt

Analyzing Today, Anticipating Tomorrow

Europe Grapples with Russian Gains, Arctic Rivalries, and Political Polarization Amid Heightened Security Risks

Russian advances in Ukraine continue unabated, as Moscow seizes control of Novoielyzavetivka in Donetsk, pushing closer to the strategic hub of Pokrovsk. These gains highlight the sustained momentum of Russian forces, with implications for European security as the conflict draws closer to NATO's eastern borders. The European Union and NATO must recalibrate their support for Kyiv, ensuring that military aid is coupled with enhanced logistical and intelligence support to counteract Russia's tactical advantages.

The Arctic emerges as a critical zone of geopolitical rivalry, with Denmark's military investment in Greenland underscoring the region's growing strategic importance. As U.S. President Trump reiterates American claims over Greenland, European Council President Antonio Costa's defense of Danish sovereignty reflects broader European concerns over external pressures. The EU's lack of a unified Arctic strategy risks leaving Europe sidelined in a region crucial for global trade routes, resource extraction, and military logistics.

Energy security remains a pressing concern, as Ukraine faces near-critical gas storage levels amid ongoing Russian strikes targeting its energy infrastructure. Moldova's dependency on Russian gas and the broader regional energy crisis necessitate accelerated EU investments in renewables and infrastructure to mitigate Moscow's leverage. A strategic pivot toward sustainable energy sources is essential for reducing vulnerabilities and enhancing Europe's long-term resilience.

Germany's political landscape faces turbulence, as Friedrich Merz's reliance on far-right AfD support for migration crackdowns risks fracturing the country's political consensus. The CDU leader's controversial motions, passed with AfD backing, threaten to erode Germany's democratic foundations and could embolden populist elements across Europe. The EU must reinforce democratic norms and counteract the normalization of extremist alliances that undermine regional unity.

Hybrid threats escalate, with China's Spamouflage operation targeting Spain's political stability through disinformation campaigns. These activities, leveraging sensitive issues like flood relief, represent a broader strategy of exploiting internal divisions within Europe. Enhanced EU coordination on counter-disinformation measures, coupled with robust cybersecurity frameworks, is crucial to safeguarding democratic processes and public trust.

Economic pressures mount, as Germany's Thyssenkrupp seeks state guarantees to secure a submarine contract with Argentina, reflecting broader challenges for European defense industries in a competitive global market. Meanwhile, Nokia's strong profit growth in North America and India contrasts with Europe's slower recovery, highlighting the need for strategic economic diversification and industrial policy reform.

Migration and human rights issues persist, with Italy's legal battles over regional renewable energy restrictions in Sardinia and controversial detention practices for migrants in Albania. These developments spotlight the EU's fragmented approach to migration and environmental policy, underscoring the need for comprehensive frameworks that balance economic, environmental, and humanitarian concerns.

In conclusion, Europe must confront its multifaceted challenges'ranging from external security threats to internal political polarization'through a cohesive and forward-looking strategy. Strengthening defense cooperation, enhancing energy independence, and safeguarding democratic values are pivotal to preserving Europe's stability and strategic autonomy in a volatile global context.

Geopolitical Risk Assessment for the Europe
(30-01-2025)

Europe's geopolitical landscape remains fraught with security threats, economic instability, and political fragmentation. The escalation of the Ukraine war, Arctic tensions, and internal EU divisions underscore the urgent need for a coordinated and resilient European strategy. Effective management of hybrid threats, energy dependencies, and migration pressures will be critical to safeguarding regional stability.

Geopolitical Risk Index

Developments to Follow for the Europe (See All Global)