However, time can change perspectives and compulsions completely. It is India which is now getting all the attention from the until now utterly snooty Europeans. So much so, that the chief of European Commission, Ursula van der Leyen, herself announced from the vaunted platform of World Economic Forum that a trade deal would be signed with India next week.

In her enthusiasm, or desperation, she described the trade agreement with India as a “mother of all trade deals”. It will be a deal for the old continent with a forward looking, robustly growing, innovative and, often called talented, India. Von der Leyen referred to the deal encompassing close to two billion people and accounting for one-fourth of global GDP.

What were the compulsions for EU now? The Europeans are today painted into a corner. After all, their most rusted ally and protector, America, appeared to have reneged them. Since Donald Trump became the US president for the second time, the Americans have lost no opportunity to disparage the Europeans.

Trump himself time and again drew pointed attention to Europeans riding piggy-back for decades on American strategic defence. The Europeans have not been spending on their own defence and been depending on the fat American budget to buck up their defence. Trump wanted European countries to pay for their own defence, rather Americans paying for it.

As if trump’s rebuke was not enough, worse came from his accolade, vice president J.D, Vance, followed up with invectives about Europe’s impotence in the face of a Russian aggression. Trump himself had insulted the British prime minister in session at the Oval office in the presence of his pet press. Others had also followed with blank insults and admonitions.

But for Europe, the alternatives are worse, Russia is gaining in Ukraine and increasingly threatening rest of Europe with dark words of war. In the present situation, Russian friendship cannot give any solace from Trump’s insults. The other big player, China brings no comfort.

If at all, China is proving to be an existential threat to Europe’s economy. Chinese electric cars have been blowing up the long-established automobile markets in Europe. Hallowed names in auto industry, BMW, Mercedes, Volkswagen or Renault are hardly able to withstand Chinese competition. In steel, China is flooding the market with far cheaper products. A deal with China, free trade or even a limited trade, is a best suicidal.

In the situation, India possibly appears a safe bet. Not yet that powerful or big to threaten the Europeans altogether. Yet, this is the only country which has the girth — a big population, a young cohort and growing middle class demanding even better products. India has the lucre of the market. Not surprisingly, an increasing number of economic blocs are seeking trade deal with India. So in the context of the US president’s latest salvo, India became an ideal choice.

As a counterpoint to Donald Trump’s threat to impose another 10% tariff on Europe for backing Denmark and Greenland against America’s unilateral grabbing of Greenland, European Commission announced concluding what it described as “the mother of all trade deals” with India.EU wants to show Trump also deals are made through dialogue not through threats and coercion.EU wants to clinch the deal by January end. This will cover a total of two billion people of the two continents taking care of one fourth of global GDP.

When America is bad-mouthing its allies, Europe was seeking to forge collaboration with new growth centres and economic powers of the future. In this new power-play of geo-economics, India has assumed a central position in EU’s calculus. The two sides have been working on the deal for a long time but it was fast forwarded at this point of time crucially to send out messages to America.

From the pulpit of World economic Forum, which is the gathering of the high and mighty of the world economic players from heads of multinational corporations, bankers, financiers, and decision makers. From that platform, von der Leyen was seeking to convey a message which was directed at the USA in the context of its latest assault on Europe from none else than Donald Trump.

Von der Leyen said that Europe was looking forward to establishing a comprehensive economic relations with India which was making rapid progress. She observed that Europe was taking advantage of the vast growing markets of India for a variety of products at the same time offering its best to India.

As the Indo-US trade dialogue in is in limbo, von der Leyen pointed out that with this trade deal between the two, EU would gain the “first mover advantage” with a region which was moving extremely fast and providing rising economic and strategic opportunities.

As a result of the Indo-EU trade deal, whole range of products from Europe would find entry on the basis very low tariffs which would throw open vast segments of the bulging middle class market in India.

At the same time, EU has been sensitive to India’s trade concerns. In view of the sensitivities, the Indo-EU would not cover the farm sector, sugar industry and several other products. High tariffs on European spirits and wines would be reduced by India. Whereas some of Europe’s GIs would be left out of the trade deal.

The announcement highlights the need for fast movement and a new order based on the recognition of realignment of the world economy. There is no doubt that India is a far more important player than many of the European countries which have been dwarfed in the twenty-first century. (IPA Service)