Back to the only bastion left of Western style democracy aka Europe.
One thing that i see it's the European nation not even thinking about a reduction of the military budget, it's even more probable that the armed forces will obtain a lot more fund than OTL, due to the fact that this world is a lot more chaotic than our and frakly Europe need a military strong enough to keep the Soviets honest in their deal. Naturally this without even considering the interwiew of Rumsfy...for christ sake, the man is in the stage of real believing his own propaganda and with the add that with years of cowed media having to face a real journalist show totally his true colors, people in the continent will litterally scared to death, demonstration in front of the US embassy will be both daily and enraged and the various goverment will need to show the people that they are doing something (even because this is just the final straw, after supporting terrorist and separatist, Greece intervention, etc. etc.) as the electors will be feed up.
This mean that the various socialist/labour/eurocommunist will need to show to their electorate that they are not weak in defence or a pawn of the soviets, and this mean, contrary at kinnock (and probably many other across europe) desire a continue series of military intervention will continue and frankly they feel compelled to anwer at any military challenge with overwhelming force...basically the feel the need to be more royalist than the royals.
On the bright side, this mean a greater European cooperation, probably even a common procurament program, for nothing else than saving money on the not so bright side, as said above, the EDC will begin to stir his military muscle for show to both US and Soviet that they are not pushovers. In general there will be much more pressure for a true federal reform of Europe, hell i see EEC and EDC quickly merge in a single organization.
Stalinist Portugal seem like the ally that the Soviet really don't want...maybe when the current regime is strong enough they can safely discard the Portughese, even allow a true democratic goverment to rule the place, as a 'gift' the their best patner/good neighbourgh aka Europe
I see alternative energy source and nuclear become widespread in the old continent at a quicker pace than OTL (and probably without much backlash), due to the Arabian situation and with the clear even if not openly said intention to be not to dependent of the Russian oil and gas
Space wise, the US will probably lead or at least will be on par with Ariane regarding the commercial launch, but the real developement of research and innovation will be almost exclusive of the Euro-Russian, this thing are not really immediately bankable or alluring to the private sector and honestly only a goverment funded agency can lead the way
Economy in the US seem in a state of 'calm before the catastrophic storm' and ironically the Christian Value people will be the one to benefit more, at least initially, with the TRW and sisters, try to salvage what they can and maybe even opting to jump from the boat and relocate in other nations...move that probably will not end well for them. In general the various CEO and board of administrators are toasted, if not by the CV by the post-Rusmfeldia goverment and while the middle management can be let go with a slip of the wrist due to pratical reason like keeping the boat afloat and try to do a 'healing of the nation', they are too tie with the past goverment, to know to be left alone...so they will become example.
Naturally this implie the fact that they survive the clusterfuck that happen when the economy tanks, as Tsarist Russia teach, people tend to be violent if they and their family are at risk to die of hunger and without the social net things will gonna go ugly quiclky (normal privatisation will have caused a general downgrade of the service...but here? Corruption, cronism and a little of incapacity will make a lot of damage
