EU has several strong navies, few non-meme tier armies (UK, France) and many fast growing ones, like polish one.
Having army& fully domestic arms industry that would be able to take over the world is absurdly impractical, and if we were judging everyone by living up to this metric only two, maybe 3 countries in the world would be able to pull it off and at huge cost.
I'm really unafraid about West's capacity to wage war, except full, world ending nuclear exchange maybe. Think about this: USAF has recently terminated F22 program, after nearly 3 decades of service. It's state of the art G4 air superiority jet, an icon, years ahead of competition when it released in 1990. And US has decided that in 3 decades, it hasn't actually really improved their security by any significant margin, despite huge cost.
Wanna know why?
Because they are decades ahead of literally any competition, Russian, Chinese, Hindu, you name it. Same job can be done way more effectively by modernized F16&F15 with some support of F35. And this combination, with mild iterative improvements will likely easily last for next few decades to come because that's the time horizon Air Force thinks about.
Russians will pop out itt and start screaming at top of their lungs about Su-57, but it exists only on paper, and even when it starts to exist in any other terms it will be count-on-your-figners tier numbers.
You can extrapolate from this onto basically any other area. And that's even without taking into account just how retarded and militarily incompetent 3rd worlders are (do read up on post ww2 military achievements of China, good laugh for whole afternoon)