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From Representation to Market Maker: Why Government Affairs Now Matters to the C-Suite

By Fabio Bauer, Emily Marsh and François Reyntens
June 2025

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Geopolitics is having a moment. In an age of uncertainty, everyone seems to have an opinion — and many are reinventing themselves as armchair geopolitical analysts. But behind the noise, the shifts are real and consequential.

The global balance of power is shifting. The world is no longer unipolar — economic and geopolitical influence is being redistributed across multiple centres, from Washington to Beijing, New Delhi to Brussels. The United States is reshaping the global trade order through tariffs, industrial policy and strategic investment. In this new landscape, the European Union is also changing — moving from its traditional regulatory role into a more assertive industrial actor.

This reconfiguration is not theoretical. It is reshaping supply chains, redrawing investment priorities, and forcing companies to reconsider their global footprints. For decades, boards and CEOs could once afford to think: ‘Government, leave me alone.’ That mindset no longer holds. Geopolitics is now firmly on the corporate agenda. Leadership teams require new capabilities to navigate this age of uncertainty and fragmentation. We are in a new era. In today’s multipolar world, Brussels — once seen primarily as a producer and guardian of rules — is reemerging with a broader mandate. It now sits at the heart of Europe’s industrial policy and strategic autonomy agenda.

The EU has long been a powerful rule-maker. But today, it is deploying its institutional and financial power to steer industrial development — through initiatives like the Clean Industrial Deal, the Critical Raw Materials Act, and the EU Chips Act — and to strengthen its competitiveness, notably through a series of regulatory simplification packages. These are not just regulatory frameworks; they are industrial strategies designed to direct capital, mitigate geopolitical risk, and secure Europe’s long-term economic resilience.

This shift is unfolding just as the global trade order shows visible signs of stress. Ongoing tariff disputes signal a more interventionist era, where market access, subsidies, and supply chain security are increasingly being weaponised.

Whole industries are now battlegrounds in a new geopolitical contest for influence and power. In this context, companies need more than passive monitoring, a reactive strategy or a defensive engagement. They need Government Affairs teams who act as true business partners — capable of engaging constructively with policymakers and bringing real-world insights to the table.

This is no longer about watching from the sidelines. It’s about ensuring your company’s relevance in the markets that matter — and contributing meaningfully to how those markets are being redefined.

Today, every sector is affected by policy decisions emerging from Brussels — from tech and logistics to consumer goods, manufacturing, and defence. Whether it’s AI regulation, digital infrastructure, or industrial support frameworks, Brussels is increasingly pursuing a competitiveness agenda in response to growing global pressure. For companies operating in or with Europe (or planning to do so), this means engaging early and strategically — not just to comply, but to help shape policies that reflect business realities. And that requires active involvement from the C-suite and boards, not just Government Affairs teams.

This demands a new approach to corporate representation. The most effective Government Affairs leaders are no longer just policy experts. They are strategic business partners who:

  • Understand corporate strategy and speak the language of the C-suite
  • Are able to forge strong relationships with the business and mobilise internal stakeholders quickly to provide valuable, real-world input to policymakers
  • Translate complex policy into actionable insight — and vice versa

They don’t just track developments. They shape outcomes.

Boards and executive teams must recognise this shift. Representation in Brussels — and the broader redefinition of the Government Affairs function — is no longer a defensive exercise, nor should it sit in a silo.

It is now a core component of managing strategic risk, informing investment decisions, and helping organisations anticipate and shape what’s next. Your Government Affairs function should be fully embedded in strategic decision-making, with its agenda acting as an extension and reinforcement of your corporate strategy.

As Brussels sharpens its industrial and geopolitical focus, corporate engagement needs to move upstream. This isn’t about lobbying harder — it’s about integrating policy awareness into the DNA of your leadership team.

Boards and management teams must ensure their interests are actively and credibly represented. This is not something that can be delegated or deferred. The companies that engage early and strategically will help shape the policy and market conditions that define their industries for years to come.

What to consider — Are you geopolitically fit?

Do you have the right capabilities at board level and throughout the organisation to navigate a new era of geopolitical uncertainty?

  • Strategic foresight: The ability to anticipate geopolitical shifts and develop robust scenario planning is now a critical leadership skill.
  • Low ego, high adaptability: In an environment of constant change, it’s vital to recognise when assumptions were wrong, adapt quickly, and recalibrate. Intellectual humility is essential to keeping scenarios relevant as the landscape evolves.
  • Organisational agility: High uncertainty demands the capacity to pivot priorities, reframe stakeholder engagement, and adjust focus with speed and confidence.
  • Internal cultural influence: Modern government affairs leaders must foster geopolitical awareness across the leadership chain, embedding this perspective into organisational thinking and decision-making.
  • Collaborative mindset: Success will come from leaders who think in systems, build trust, and foster strong internal and external partnerships.

We will explore these capabilities in more detail in a forthcoming piece.

 

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