Making Europe Great Again ETF Report | January 2026

Making Europe Great Again ETF – Key Takeaways

Greenland Becoming the Litmus Test for European Autonomy – Unilateral military action in Venezuela and renewed interest by the US to acquire Greenland from Denmark has become a test of European sovereignty.  When a member of the EU bloc is threatened, can it ensure its own security?  Critics point to fragmented national priorities, over-reliance on U.S. defence supplies, and coordination gaps, as reasons why true strategic independence remains a distant prospect.  The U.S. National Security Strategy (NSS) has already indicated that Washington intends to move away from unconditionally guaranteeing European defence, pressing European allies to assume primary responsibility for their own security. And recent aggressive actions by the U.S. have become a litmus test.  Technically, Greenland falls into a political grey zone as it is not technically an EU or NATO country, but the EU commissioner warns that a US military takeover over Greenland could mark the end of NATO. This is forcing EU countries to consider pre-emptive measures.  A joint statement was issued on January 6th by 7 European countries, France, Germany, Italy, Poland, Spain, the UK and Denmark making it clear to the U.S. that “Arctic security remains a key priority for Europe, and it is critical for international and transatlantic security.”  The EU Commission is actively updating its EU Arctic policy and Bloomberg reported that a group of European countries, led by the UK and Germany, is discussing plans for a military presence in Greenland to counter U.S. threats.[1][2][3]

Gaps in Defence and Inefficiencies Remain a Key Challenge

One of the core pillars of European strategic autonomy is in the area of defence, namely the ability of Europe to defend itself without external reliance on partners like the U.S. This includes independence in military industry, intelligence, and cross-border operations. In 2025, the prolonged Ukraine conflict and tensions with the U.S. prompted the EU to strengthen its plans for self-defence. The ReArm Europe Plan/Readiness 2030 project aims to invest over 800 billion euros ($941 billion USD) in the defence industry. The creation of a Military Schengen zone is intended to improve cross-border military movement and France, Germany, and Spain have agreed to jointly develop a next-generation fighter jet. But while significant financial resources are being mobilised, the technology gap is around 5 years.  And even domestic programs rely on the U.S. for things like software and maintenance. And pooling funds for joint procurement is another obstacle as investments remain fragmented across member countries. The EU Defence Commissioner has said the bloc should be considering a standing military force of 100k troops given Russian aggression and the U.S.’s shift of focus. “Would the United States be militarily stronger if they would have 50 armies on the States level instead of a single federal army?”, he argued. “Fifty state defence policies and defence budgets on the states level, instead of a single federal defence policy and budget?” EU Commissioner Kubilius said Europe’s defence readiness depends on three pillars: more investment in production capacity; institutions that are prepared and organised; and the political will to deter and, if needed, fight.[4][5]

Reducing Energy and Economy Security Dependencies

The EU is prioritising economic security by reducing its dependence on Russian oil and increasing investment in areas such as semiconductors and critical raw materials. In December 2025, the EU agreed to phase out liquefied natural gas (LNG) and pipeline gas imports from Russia, with full bans effective at the end of 2026 and autumn 2027, respectively. At the same time, the EU introduced the RESourceEU plan, allocating 3 billion euros (3.53 billion U.S. dollars) to support alternative critical raw material supplies. But the EU has also committed to purchasing up to $750 billion USD in Energy products from the US by 2028 and the US is already the EU’s largest LNG supplier, providing about 55% of LNG in 2025. In essence, the EU has merely traded one energy dependency for another.  To achieve full energy security, the EU must work to phase out fossil fuels and develop its own homegrown clean energy. In the semiconductor and raw materials sectors, the EU is pursuing a path of joint procurement but is still not there in terms of domestic manufacturing and resourcing.[6]

EU Clears 235 Cross-Border Energy Projects

The European Union has cleared 235 cross-border energy projects as part of its new list of energy projects that will connect the European nations through a litany of cross-border projects, including hydrogen and CO₂ infrastructure. The EU has been fostering a welcoming environment for the renewable energy sector with aims to connect the continent and develop a new era of cross-border cooperation. These projects are more than cross-border infrastructure projects, they are the lifelines of our Energy Union that will empower the EU energy system by unifying the strengths of 27 complementary systems, paving the way for a Europe for a green, competitive, and secure energy future. To meet today’s challenges of security, competitiveness, and decarbonisation, Europe needs an energy system that is both resilient and future-proof. According to EU Commissioner for Energy and Housing, Dan Jørgensen, the projects chosen for support will play a vital role in delivering cleaner, cheaper and more secure energy to our citizens and businesses.[7]

European Grids Package a Positive Shift

The European Commission just unveiled the European Grids Package. As one of the core deliverables under the Clean Industrial Deal and the Action Plan for Affordable Energy, the Grids Package is a response to the urgent need for more coordinated and forward-looking grid governance, planning, and permitting. The Commission is moving to a more integrated model for infrastructure planning, with stronger EU-level direction and better coordination across Member States. The many jurisdictional layers in electricity system planning, the lack of harmonisation in analysis and planning remains a key gap in Europe that needs to be addressed. The announcement assigns the Commission a new role: developing a central EU scenario for the electricity, hydrogen, and gas sectors within the next two years. This is a highly significant and welcome step towards using a consistent and common basis for the ten-year network development plan (TYNDP). Complementing these measures, the Commission also expanded on the Energy Highways Initiative with the intention to speed up immediate progress over the next six to nine months on eight critical projects – including electricity interconnections, storage, and hydrogen – addressing key bottlenecks that hamper their implementation.[8]

Macro Outlook – U.S Testing European Resolve

U.S. military actions in Venezuela and threats to invade Greenland have been another test of Europe’s commitment to strategic autonomy. While Europe is actively engaged in measures to reduce its dependence on the U.S. and other foreign countries, overcoming those gaps takes time and a complete overhaul of the decision and financing structure in Europe. European countries must act together as opposed to individually to achieve their common goals of defence and energy autonomy, infrastructure support, and expanded onshore industrial and manufacturing capabilities. Recent escalation by the U.S. is both testing and reaffirming Europe’s desire and resolve to coordinate resources and create unified Eurocentric solutions. But questions remain on how these goals will be achieved, over what timeframe, and how they will be financed.[9]

Key Charts in Focus

[1] https://x.com/Statsmin/status/2008498610263257368

[2] https://english.news.cn/20260108/6432e278842e4f5e8d6167069d9f3a98/c.html

[3] https://www.bloomberg.com/news/newsletters/2026-01-12/germany-and-the-uk-have-plans-for-a-military-presence-in-greenland

[4] https://english.news.cn/20260108/6432e278842e4f5e8d6167069d9f3a98/c.html

[5]https://www.politico.eu/article/eu-needs-100000-strong-army-defense-commissioner-andrius-kubilius-military-overhaul/

[6] https://english.news.cn/20260108/6432e278842e4f5e8d6167069d9f3a98/c.html

[7] https://energiesmedia.com/european-union-energy-projects-renewable/

[8] https://www.catf.us/2025/12/europes-grids-package-marks-positive-shift-coordinated-eu-wide-infrastructure-planning-permitting/

[9] Source: Vettafi

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