Defending Europe's social model in an era of disruption| Editorial of Secretary General Klaus Heeger

Dear members, partners and friends,

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The past weeks have laid bare the tension at the heart of Europe’s current challenge: how to secure competitiveness without sacrificing cohesion and how to build economic strength without undermining social stability.

Two key developments brought this into focus: First, the CESI Presidium adopted a resolution placing public investment, social dialogue, and fair labour market transitions at the core of Europe’s competitiveness agenda. Second, former U.S. President Donald Trump, on so-called "Liberation Day," announced sweeping tariffs—10% on all imports and 20% on EU goods—with a devastating 25% aimed at the automotive sector.

These tariffs are more than geopolitical posturing. They threaten jobs, price stability, and economic certainty on both sides of the Atlantic. For Europe, they are a wake-up call: we must strengthen our social and economic foundations if we are to compete globally without resorting to protectionism or deregulation.

CESI’s resolution affirms that:

· Public services and social investments are strategic assets, not budgetary burdens; they underpin productivity, workforce resilience, and innovation.

· Social dialogue must be central to policymaking, especially in managing green and digital transitions.

· Fair, active labour market policies are essential to turn disruption into opportunity, particularly for workers in vulnerable sectors like automotive, steel, and manufacturing.

Trump’s tariff move underscores this urgency. The blunt-force weapon of trade wars doesn’t support long-term growth. It erodes trust, raises inflation, and jeopardises entire industrial ecosystems. It hits SMEs first and hardest, and it makes workers pay the highest price.

Europe must not respond in kind. Instead, we must respond with strategy and build competitiveness on a foundation of stable institutions, smart public investment, skills development, and robust social dialogue.

This is how we make our economy work for people—not the other way around.

We will continue to push for a European model that is both competitive and fair. A model that resists the false choice between economic strength and social progress. A model that proves the real power of Europe lies not just in markets—but in the values we defend together.

Because in the face of disruption, our best response is not fear or retaliation—but unity, investment, and an untouched social contract.

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With kindest regards,
Klaus Heeger
Secretary General of CESI