Europe is confronted with an existential question regarding its role in a world increasingly influenced by artificial intelligence, economic protectionism, and the growing power of China and India, according to former Portuguese minister Bruno Macaes. Speaking at the EY Cyprus Future Realised Forum 2026, Macaes described the global order as "metamorphic," driven by rapid technological, trade, and geopolitical shifts. He highlighted China's rise as a serious rival to the US and India's significant income growth, emphasizing that Beijing no longer depends on Washington's approval in trade matters.

Macaes warned that protectionism is resurging, with US tariffs nearing their highest level in a century, affecting global trade dynamics. For Europe, the challenges extend beyond tariffs to investment and productivity, with capital and technological focus shifting to other continents. He stressed that Europe's future depends on redefining its global position rather than relying on past economic strengths.

Further, Macaes underscored the renewed importance of geography, resources, and industrial capacity amid recent conflicts. He compared the current AI investment boom to historical technological surges but noted it is evolving at an unprecedented pace. The continent faces pressure to compete with the US in technology and capital while confronting a more confident China, with the imperative to use technology to reshape economic and political systems for future dominance.