In a stark warning to European leaders, former European Central Bank president and Italian prime minister Mario Draghi has declared that the rules-based international order is effectively "dead," as the continent faces growing threats from the United States and China.
Speaking at a conference in Brussels, Draghi minced no words, stating that "others are no longer playing by the rules, and are actively pursuing policies to enhance their competitive positions." What this really means is that the U.S. and China have abandoned the multilateral framework that has underpinned global trade and diplomacy for decades, leaving the EU scrambling to adapt.
Radical Change Needed
Draghi went on to say that the EU must undergo "radical change" to remain competitive, as the old ways of doing business are clearly no longer viable. German Chancellor Friedrich Merz has also warned that the world is entering a new era of "great power politics" dominated by force and self-interest rather than shared rules and values.
The implications for Europe are severe. As EU foreign policy chief Kaja Kallas noted, relations with the U.S. have "taken a big blow" in recent weeks due to the unpredictable actions of the Trump administration. And with China increasingly flexing its economic and geopolitical muscle, the EU finds itself caught in the middle of a superpower rivalry.
Adapting to the 'Law of the Jungle'
The bigger picture here is that the post-Cold War "rules-based order" that the EU has depended on is crumbling, and the bloc must now figure out how to navigate a world that is reverting to a more Darwinian "law of the jungle." As a recent EU report acknowledged, "a return to the previous status quo seems increasingly unlikely."
For the EU, this means abandoning its traditional reliance on multilateral institutions and finding new ways to protect its interests - whether through strategic autonomy, deeper integration, or a more assertive foreign policy. The path forward is uncertain, but one thing is clear: the rules-based order that has shaped Europe's worldview is dead, and a new era of great power competition has begun.