Europe’s Innovation Wake-Up Call
As the world hurtles forward at breakneck speed, European business leaders are sounding the alarm: the region is falling behind its U.S. and Asian counterparts in innovation and adaptation. The warning comes as President Donald Trump’s second term is expected to bring an acceleration of global policy changes.
A Lagging Continent
Mario Greco, CEO of Zurich Insurance, emphasized that Europe has consistently trailed behind Asia and the U.S. in innovation. “In a world that’s moving very fast, with lots of innovation, it’s a wake-up call for Europe,” he urged. Greco pointed to the region’s lack of investment in artificial intelligence, digital technologies, and financial market integration, which hinders business growth.
Regulation vs. Progress
Greco believes that Europe’s preoccupation with regulation is stifling progress, particularly in new technologies needed to drive growth. This sentiment is echoed by Novartis CEO Vas Narasimhan, who warned that the Trump 2.0 era is a critical moment for Europe to deregulate and boost competitiveness.
A Call to Action
European policymakers seem aware of the urgent need to innovate and deregulate. Belgian Finance Minister Vincent Van Peteghem stated that the new Trump administration should be a wake-up call for Europe, focusing on the challenges of decreasing competitiveness and increasing productivity gaps.
Simplified Regulation and Investment
ING CEO Steven van Rijswijk emphasized the need for simplified and harmonized regulation across the EU to boost competitiveness and labor productivity. He also stressed the importance of investment in infrastructure and strategic autonomy in tech infrastructure.
Kickstarting Growth
Banco Santander Executive Chair Ana Botín highlighted the need for governments to develop frameworks that promote growth “the right way, with redistribution and thinking about what AI means.” She warned that Europe risks becoming a “museum” if it fails to support innovation and startups.
The Time for Action is Now
As the world enters a new era of rapid change, European leaders must take action to drive innovation, deregulate, and invest in growth. The region’s future depends on it.
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