Four world powers dominated the world scene in the early 25th century, and PanEurope was not one of them. Although known for their scientific achievements, they did not have an effective enough military to protect themselves, especially from the incursions of the Indian Conglomerate. That is, until the perfection of the controversial (Officially Deplored by World Council Declaration of 2422) Positronic Synanochip, together with cybernetic implants used for the handicapped. Adapted by the military, man and machine could finally be united in an unfeeling, totally loyal fighting force. The Borg, as the new army came to be known, were humans with implants that boosted their strength and skills as warriors, while simultaneously cutting off individual personalities. Indeed, with the BorgNet, a cybernetic mental connection that was in effect a hive mind, the only individual amongst them was their leader, Jan Boorts. Using nanotechnology, the Borg could also "infect" others with self-replicating machines in the bloodstream that worked their way to the brain - and into the BorgNet. Their bodies could then be enhanced for involuntary military service. 
The Borg were, indeed, an unmatched fighting force, and PanEuropa not only repelled the Conglomerate, but actually succeeded in acquiring about half of their territory. Unfortunately for the PanEuropeans, General Boorts decided that his own nation needed a new government run by his nearly unstoppable military. By 2438 C.E., all of PanEurope had fallen to the Borg hive master - ironically losing in the process the creativity that had made the Borg possible in the first place.