For a long time, one of the crucial mechanisms to transmit EU policy priorities to the rest of the world has been the so-called Brussels effect: the adoption of EU guidelines and regulations in other jurisdictions or the compliance with them by private actors such as firms, driven by the attractiveness of the EU as a large market and the absence of similar frameworks elsewhere. While its potency has been waning – reflecting Europe’s declining economic weight, lagging in many crucial new technologies and the lack of EU investment in global mechanisms active in this area – the effect remained noticeable.
However, what we are witnessing at the moment in the US is sounding the final death knell of the Brussels effect. Elon Musk’s political interference, along with the likes of Meta abolishing its independent fact-checking, show this effect is being trumped by US economic might and Trump’s/Musk’s priorities. In future, globally, few will heed EU rules, with the extraterritoriality of US actions becoming the prime driver for countries and companies. Global practice will be shaped by US economic interest but also an ideology that believes that might is right, and that the best rules are no rules.
In part, this will be contested by China, which has heavily invested in global standardisation bodies in recent years. But whoever prevails, there is little comfort for the EU, the economic and political benefits of the Brussels effect will be permanently out of reach.
Fabian Zuleeg is Chief Executive and Chief Economist at the European Policy Centre.
The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein.