‘Great power politics’ is a term that has been disconnected from much of daily life in free and open nations for the past eight decades. While great power competition has always been a part of the national psyche during this time – rearing its head repeatedly throughout the Cold War and more recently when discussing the relationship between the United States (US) and the People’s Republic of China (PRC) – the latest comments from Alexander Stubb, President of Finland, show that it is only now that politicians in free and open nations are publicly coming around to the idea that a certain degree of realism underpins relations between countries.
In Europe, this can be difficult to grasp given that American cultural influences and the European Union (EU) have now existed for multiple generations. However, of all 21st century theatres, Europe has probably one of the richest histories curated by realpolitik.
The EU’s 2026 ‘Made in Europe’ proposals are the latest in a line of diplomatic entanglements that make very clear the realpolitik forces shaping relations between the union and the United Kingdom (UK). Brussels is pushing for products within EU supply chains to have 70% of their components made within EU borders. As the British Chambers of Commerce has pointed out, this looks set to snub UK-based companies, upending possibly decades of supply chain relationships covering everything from missiles to microchips. It remains to be seen whether this requirement is simply designed to strengthen Brussels’ hand in any future negotiations, but as things stand, it would help Europeans to win commercial contracts over their British counterparts.
As Europe’s historic ‘offshore balancer’ – against continental hegemony by France or Germany – the UK has always found opportunity in this realpolitik world inhabited by free and open allied nations. The same window of opportunity is again open today.
Britain’s opportunity as ‘offshore balancer’
The security environment of 2026 has shifted the chessboard of European realpolitik to the high ground of nuclear posture, orbital infrastructure, and ease of doing business. As the EU pushes for strategic autonomy in the 21st century, the UK too has a hand to play in shaping continental politics.
Take the latest move from Paris. On 2nd March 2026, Emmanuel Macron, President of France, formally unveiled the ‘Dissuasion avancée’ (‘Advanced deterrence’) framework at the Île Longue nuclear submarine base. On the surface, this is a generous offer to shield European neighbours with French nuclear capability. In reality, while it supports pan-European security, it is a classic realpolitik manoeuvre, designed to cement France as the continent’s permanent security landlord.
The bottom line is that Britain is the only other nuclear power in Europe. France cannot ignore this.
This comes despite the Northwood Declaration of July 2025, which pitched British-French nuclear cooperation. It suggests that Macron’s plans for an ‘audacious’ era of European nuclear deterrence are more French than British-French in nature.
The UK’s opportunity here is in providing the deep-water intelligence and submarine surveillance that France cannot replicate, for example, in the Greenland-Iceland-UK (GIUK) gap. Britain’s power is not in the posturing of nuclear buttons, but in controlling the undersea intelligence architecture that keeps the continent’s security from buckling. The bottom line is that Britain is the only other nuclear power in Europe. France cannot ignore this.
Opportunities in orbit
This same logic applies to the frontier of space. While concerns over 2025’s EU Space Act regulatory framework risk blocking further progress on the continent, Britain has opted for agile commercialism. The £500 million investment, announced by His Majesty’s (HM) Government in March 2026 at this year’s Space-Comm Europe by the UK Space Agency, forms part of a budget of £2.8 billion committed to the sector through to 2030.
British entrepreneur accelerators and venture capitalists should see the demand signals from HM Government here, recognising that space as a manufacturing, service-providing, and defensive sector is projected to play an increasingly central role in the daily lives of British citizens
This ambition is not about state-led prestige; it is about infrastructure and unleashing entrepreneurial dynamism. Through SaxaVord in Shetland – one of only two vertical launch facilities in Europe – and heavy investment in in-orbit technology, Britain is positioning itself to be Europe’s first mover in a global market projected to be worth US$1.8 trillion (£1.4 trillion) by 2035.
British entrepreneur accelerators and venture capitalists should see the demand signals from HM Government here, recognising that space as a manufacturing, service-providing, and defensive sector is projected to play an increasingly central role in the daily lives of British citizens. Consideration should also be given to positive second-order effects laterally impacting other aspects of society that could stem from the sector’s maturity – for example, enhanced clean energy technology or life sciences discoveries which would further support HM Government’s ‘Invest 2035’ industrial strategy.
The European element
This brings us to ‘EU-Inc’; an attempt to create a single business entity to be used across the bloc. If executed well, this could create an economic model competitive to the Delaware Model.
Current developments suggest that the EU is not where it wants to be with EU-Inc. The latest proposals, originally leaked in March 2026, show that dispute resolution still defers to national courts. In short, rather than creating a ‘28th regime’, the EU risks creating 27 versions of EU-Inc. This falls far short of creating an attractive ‘one size fits all’ alternative to scaling in the US, which all too often many of Europe’s best and brightest end up doing.
By contrast, in the UK’s single national jurisdiction, a local founder can register a business from any county or devolved nation, and Britain comfortably looks like a more attractive place for startups. This avoids the ‘politics-first’ investment cycles that often quagmire capital flows across the continent.
Having ranked 91/100 for Business Entry in the World Bank’s Business Ready (B-READY) 2025 report; achieving second easiest place on the planet to start a business in 2025 by StartupBlink’s Global Startup Ecosystem Index Report 2025; and placing third in Europe in the Global Innovation Index 2025 (behind only Sweden and Switzerland), the UK is perfectly positioned to act as the ‘venture capitalist of Europe’.
Britain can allocate capital based on where the technology actually works, acting as a light-touch, offshore hub for the Science, Technology, Engineering, and Mathematics (STEM) and defence talent currently struggling under the weight of EU compliance. The UK can provide a faster, more agile ecosystem where innovative, high-tech talent can actually enjoy the fruits of their labours.
Conclusion
For now, Britain’s European future is not found in a seat at the table in Brussels, but in the leverage it holds outside of the EU. The UK’s blueprint for lasting cooperation with its European allies and partners is simple: be the indispensable offshore balancer. With strengths in entrepreneurship, orbital launch capability, and subsea infrastructure that powers continental security and economic sovereignty, Britain makes itself the partner that Europe cannot afford to ignore.
The final word is one of strategic realism. The future leaders of the UK yearn for closer alignment with its neighbours. However, like every nation, Britain still has to put its own national posture first. A stable and prosperous Europe is one where the UK leads from the front with other leading free and open European states, not behind, and provides the security, technology, and economic might that the continent at times struggles to provide for itself.
Dominic Selby is an exam-qualified chartered accountant, as well as an individual member of Chatham House and RUSI. He has a keen interest in international security, entrepreneurship and innovation, and holds a BSc in Economics and Political Science from the University of Birmingham.
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