This commentary is part of our Watch List 2017 – First Update.

Over the past few months, military operations have eaten deep into the Iraqi and Syrian heartlands of the Islamic State (ISIS). Much of Mosul, the group’s last urban stronghold in Iraq, has been recaptured; Raqqa, its capital in Syria, is encircled. Its Libyan branch, with closest ties to the Iraqi leadership, has been ousted from the Mediterranean coastal strip it once held. Boko Haram, whose leaders pledged allegiance to ISIS, menaces the African states around Lake Chad but has split and lost much of the territory it held a year ago. Though smaller branches exist from the Sinai to Yemen and Somalia, the movement has struggled to make major inroads or hold territory elsewhere.

ISIS’s decisive defeat remains a remote prospect while the Syrian war rages and Sunnis’ place in Iraqi politics is uncertain. It will adapt and the threat it poses will evolve. But it is on the backfoot, its brand diminished. For many adherents, its allure was its self-proclaimed caliphate and territorial expansion. With those in decline, its leaders are struggling to redefine success. Fewer local groups are signing up. Fewer foreigners are travelling to join; the main danger they represent now is their return to countries of origin or escape elsewhere.

Al-Qaeda, meanwhile, is increasingly potent. It, too, has evolved. Its affiliates, particularly its Sahel, Somalia, Syria and Yemen branches, are more influential than the leadership in South Asia. Osama bin Laden’s successor, Ayman al-Zawahiri, inspires loyalty and offers guidance but has little say in daily operations. Al-Qaeda’s strategy – embedding within popular uprisings, allying with other armed groups and displaying pragmatism and sensitivity to local norms – may make it a more durable threat than ISIS. Its strategy also means that affiliates’ identities are more local than transnational, a shift that has sparked debate among jihadists. Although Western intelligence officials assert that cells within affiliates plot against the West, for the most part they fight locally and have recruited large numbers of fighters motivated by diverse local concerns.

U.S. national security policy looks set to change too. Much about new President Donald Trump’s approach remains uncertain, but aggressive counter-terrorism operations for now dominate his administration’s policy across the Muslim world. Protecting U.S. citizens from groups that want to kill them must, of course, be an imperative for American leaders. But since the 9/11 attacks a decade and a half ago, too narrow a focus on counter-terrorism has often distorted U.S. policy and at times made the problem worse.

Some early signs are troubling. Past months have seen a spike in civilian casualties resulting from U.S. drone and other airstrikes. The degree to which the administration will factor in the potential geopolitical fallout of operations against ISIS and al-Qaeda is unclear. U.S. allies could misuse counter-terrorism support against rivals and deepen chaos in the region. Nor it is clear that the U.S. will invest in diplomacy to either end the wars from which jihadists profit or nudge regional leaders toward reforms that can avert further crises. The new administration may also escalate against Iran while fighting jihadists, creating an unnecessary and dangerous distraction.

Though the influence of European leaders and the European Union (EU) on Arab politics and U.S. counter-terrorism policy has limits, they are likely to be asked to bankroll reconstruction efforts across affected regions. They could use this leverage to:

1. Promote a judicious and legal use of force: Campaigns against jihadists hinge on winning over the population in which they operate. “Targeted” strikes that kill civilians and alienate communities are counterproductive, regardless of immediate yield. Indiscriminate military action can play into extremists’ hands or leave communities caught between their harsh rule and brutal operations against them. European leaders should press for tactical restraint and respect for international humanitarian law, which conflict parties of all stripes increasingly have abandoned.
    
2. Promote plans for the day after military operations: Offensives against Mosul, Raqqa or elsewhere need plans to preserve military gains, prevent reprisals and stabilise liberated cities. As yet, no such plan for Raqqa seems to exist – it would need to involve local Sunni forces providing security, at least inside the city. As operations against ISIS and al-Qaeda linked groups escalate, the EU could seek clarity on what comes next and how operations fit into a wider political strategy.
    
3. Identify counter-terrorism’s geopolitical side effects: The fight against ISIS and al-Qaeda intersects a tinderbox of wars and regional rivalries. Frank discussion of the potential consequences of military operations could reduce risks that they provoke a wider escalation. The Raqqa campaign, for example, should seek to avoid stimulating fighting elsewhere among Turkish and Kurdish forces and their respective allies. Success in Mosul hinges on preventing the forces involved battling for territory after they have ousted ISIS. European powers’ own counter-terrorism support should not result in allies being more resistant to compromise.
    
4. Reinforce diplomatic efforts to end crises: From Libya to Syria, Iraq, Yemen and Afghanistan, no country where ISIS or al-Qaeda branches hold territory has a single force strong enough to secure the whole country. Unless the main non-jihadist armed factions in each country can arrive at some form of political accommodation among each other, there is a risk they either ally with jihadists against rivals or misuse counter-terrorism support for other ends. European powers should step up support for UN-led diplomacy if the U.S. neglects such efforts.
    
5. Protect space for political engagement: Over recent years, as jihadists have gathered force on today’s battlefields, Western powers have tended to draw a line between groups they see as beyond the pale and those whom they envisage as part of settlements. The EU should keep the door open to engagement with all conflict parties – whether to secure humanitarian access or reduce violence. It should be made clear to groups on the wrong side of the line how they eventually can cross it. Al-Qaeda affiliates’ increasingly local focus makes this all the more vital.


6. Warn against confronting Iran: Such a confrontation would be perilous. Militarily battling Tehran in Iraq, Yemen or Syria, questioning the nuclear deal’s validity or imposing sanctions that flout its spirit could provoke asymmetric responses via non-state allies. Iran’s behaviour across the region is often destabilising and reinforces the sectarian currents that buoy jihadists. But the answer lies in dampening the rivalry between Iran and the Gulf monarchies, not stimulating it, with the attendant risk of escalating proxy wars. This will mean resuming a tough but professional senior-level U.S.-Iranian channel of communication, something the U.S. administration seems reluctant to do but that Europe could encourage. And, for the EU and its members states (notably France, Germany and the UK), it means clearly signalling to the U.S. administration that any step to undermine the Joint Comprehensive Plan of Action (JCPOA) – in the absence of an Iranian violation of the deal – will leave Washington isolated and unable to recreate an international consensus to sanction Iran.

The roots of ISIS’s rise and al-Qaeda’s resurgence are complex and varied. Patterns of radicalisation vary from country to country, village to village and individual to individual. Clearly, though, war and state collapse are huge boons for both movements. Both groups have grown less because their ideology inspires wide appeal than by offering protection or firepower against enemies, or rough law and order where no one else can; or by occupying a power vacuum and forcing communities to acquiesce. Rarely can either group recruit large numbers or seize territory outside a war zone. The EU’s investment in peacebuilding and shoring up vulnerable states is, therefore, among its most valuable contributions against jihadists. European leaders must do everything within their power to disrupt attacks, but they should also put conflict prevention at the centre of their counter-terrorism policy.