Over a year after the pivotal election that led to Donald Trump’s notable comeback, the Democratic Party has yet to release its post-election analysis. Recently, however, a significant progressive lobby group offered insights, concluding that Kamala Harris’s campaign faltered in connecting with key voter demographics due to insufficient focus on pressing economic concerns. By prioritizing the threat posed by authoritarianism, often referred to as “MAGA” (Make America Great Again), the campaign overlooked essential bread-and-butter issues that resonate deeply with everyday citizens.

As Europe braces for a tumultuous political landscape leading into the next decade, this lesson is vital for leaders in Brussels, Paris, and Berlin. The White House, as highlighted in its latest national security strategy, hopes that “patriotic” parties across Europe will mirror Trump’s electoral success. In the EU’s core, the National Rally (RN) in France and Alternative für Deutschland (AfD) in Germany currently dominate polling among working-class voters. Yet, amidst mainstream political figures, a coherent and impactful response to these challenges appears to be lacking.

Europe faces monumental challenges that will shape its future, including the ongoing war in Ukraine, the ongoing green transition, demographic changes, and the need for economic resilience against pressures from both Trump and China. A report from the Brussels-based Breugel think tank suggests that a new era of geopolitical insecurity may necessitate an additional €250 billion in annual EU defense spending. Moreover, Mario Draghi’s report on European economic competitiveness called for extensive public investment, partially funded through shared EU debt, to stimulate growth and infrastructure development.

This fundamental shift in fiscal policy could significantly enhance stagnant growth rates. However, both at the pan-European and national levels, there remains a hesitance to adopt bold revenue-raising strategies. The so-called “frugal” nations oppose collective borrowing, and the latest budget proposals coming from Brussels are seen as alarmingly lackluster. In France, support for a wealth tax on the ultra-rich is high among voters, yet President Emmanuel Macron’s administration remains reluctant to pursue this option, even as it grapples with budget deficits.

Without such fiscal reforms, those less fortunate will bear the brunt of financial adjustments, leading to increased austerity and wider income inequality. Recent disputes over pension reforms in both France and Germany highlight the ongoing struggle over the future of the European social model—an issue that parties like the RN and AfD have skillfully exploited to promote a narrative centered on welfare chauvinism. For instance, Le Pen’s party actively opposes raising the retirement age and proposes targeting benefit cuts towards non-French citizens.

In the U.S., Trump’s promises to safeguard blue-collar interests proved hollow, with subsequent cuts to Medicaid and tax breaks favoring the wealthy underscoring this disingenuousness. Still, without a compelling progressive alternative from Harris’s campaign, these narratives gained traction on the campaign trail. Unless there’s a fundamental shift in economic strategies, social contracts throughout Europe face the risk of disintegration. Governments must tread carefully to avoid capitulating to the advancing Trumpian forces already gaining ground across the continent.