Europe at risk of economic irrelevance, leaders warn

Europe is running out of time to fix its competitiveness problem. That was the stark assessment delivered by business and policy voices at Wednesday’s Euronews event, who warned that without bold reform the EU risks drifting into economic irrelevance.

The discussion came as Commission President Ursula von der Leyen urged policymakers to “cherish the value companies bring.”

Suzana Carp, co-founder of Cleantech for Central and SouthEastern Europe, said the EU has failed to rethink its Single Market for today’s economy. “We are closing the turning point and not on the winning side,” she said. Carp called for a transformation on an unprecedented scale, warning that incremental adjustments will not be enough.

Massimo Andolina, president of Philip Morris International’s Europe Region, pointed to skills and regulation as the two levers that will determine Europe’s future.

“PMI is extremely focused on the skills of our people, upskilling, reskilling, and putting in place a journey of lifelong learning,” he told The Watcher Post EU in a sideline interview. The company invests €37 million a year in training and delivers 2.5 million hours of development across its European workforce.

On Europe’s wider challenge, Andolina emphasised the need to strike a balance between public and private roles. “Europe needs regulations that don’t suffocate companies but allow them to thrive,” he said, pointing to €14 billion invested in innovation over the past decade as proof that firms are ready to take risks when the environment supports it.

Other speakers took the point further, warning that over-regulation is weighing Europe down. They highlighted long delays in accessing InvestEU funds and complex approval procedures that leave businesses unable to scale.

“Made in Europe is not going to happen without a strategy,” Carp said, stressing that simplification must be paired with clear priorities to direct capital where it is most needed. Panellists also flagged Europe’s widening skills gap and the lack of modular training to prepare workers for AI and technological disruption.

Euronews CEO Claus Strunz summed up the mood with a stark warning. “Either we make it now or we become the fourth world, falling behind China, the US and India,” he said. He contrasted US “radical leadership” with Europe’s culture of endless dissent, insisting urgency must be impressed on decision-makers “every day.”

With the Commission preparing to overhaul rules from industrial policy to taxation, the next cycle will decide whether the EU creates a framework that attracts investment and rewards risk-taking, or watches capital and talent move elsewhere.