In 2040, Europe found democratic decision-making paths that all citizens take with them and address. The European Union has withdrawn as many regulatory areas, leaving enough room for national states and regions to develop in their respective political and social cultures. Reducing the strict regulation of the economy and social systems creates space for self-responsibility and prosperity gains. The family retains its importance as the nucleus of society.
The center political parties recognized this liberal restraint after the turbulent 2020s and regained voters from the extreme parties through a program with "less state" and a departure from leftist paternalism ideology.
The lower tax and regulatory burden allows the economy to keep up with more advanced economies such as China or the US. Europe has also recognized militarily that it must be able to act independently.
In summary, the state institutions should focus on core tasks such as defence to the outside world and security and order inside.