George Papandreou at LBS: Why Europe must lead with trust in a fragmenting world
Former Greek Prime Minister George Papandreou says Europe must renew democracy and lead globally to secure its future
As geopolitical fragmentation accelerates and global trust erodes, Europe faces an existential choice: retreat into irrelevance or articulate a renewed mission grounded in democracy, cooperation and shared rules. That was the central message from George Papandreou, former Prime Minister of Greece, in a wide-ranging conversation at London Business School hosted by the Wheeler Institute for Business and Development.
Speaking on 15 January at LBS, Papandreou drew on his experience leading Greece through the height of the sovereign debt crisis and navigating complex diplomatic terrain as Foreign Minister to challenge the idea that power belongs only to large states. “There is no such thing as a small country,” he argued, pointing to the global repercussions Greece’s crisis once posed for financial markets worldwide. In an interdependent world, he said, trust and rules matter more than raw power.
Moderated by Elias Papaioannou, Professor of Economics at LBS and Co-Academic Director of the Wheeler Institute, the discussion explored how Europe and smaller open economies can act strategically as the international order shifts from rules-based cooperation toward power-based rivalry. Papandreou warned that abandoning multilateralism would leave countries seeking “protectors” and risk proxy conflicts, particularly in regions such as the Balkans and the Eastern Mediterranean.
Drawing on examples from Greek–Turkish rapprochement and regional diplomacy in the Middle East, Papandreou emphasised trust-building, humanitarian cooperation and ethical leadership as practical tools of statecraft. Defence investment, he argued, should serve deterrence and diplomacy rather than escalation, while energy autonomy, social cohesion and democratic legitimacy are critical to Europe’s resilience.
The conversation also turned inward, addressing Europe’s democratic deficit. Papandreou called for bolder institutional reform, including stronger citizen participation and deliberative democracy, to bridge the gap between public demand for “more Europe” and widespread dissatisfaction with how the EU currently operates. Without legitimacy, he warned, Europe risks being torn apart by oligarchic influence, inequality and political disengagement.
On transatlantic relations, Papandreou urged Europe not to “wait and see” but to prepare, organise and speak with confidence. “If Europe does not act, it will become irrelevant,” he said, arguing that the continent’s economic weight and values give it more leverage than it often assumes.
The event highlighted the Wheeler Institute’s mission to connect business, policy and development, offering the LBS community a timely perspective on leadership, geopolitics and Europe’s role in a rapidly changing world.