EU Faces Declining Competitiveness as Energy Costs and Bureaucracy Weigh on Economy

A new EU Commission report highlights structural weaknesses, including high energy prices and workforce challenges, as Europe's economic growth lags behind global rivals.

• The EU Commission warns that Europe's appeal as a business hub is diminishing, with many start-ups relocating to the US in recent years.
• Only four of the world's 50 largest technology companies are based in Europe, reflecting a competitive disadvantage in the tech sector.
• Key obstacles include energy costs that are two to three times higher than in the US, a shortage of skilled labor, and excessive bureaucracy.
• The EU's economic growth is projected at just 0.9% for 2025, compared to 2.8% in the US, with Germany's economy expected to stagnate further.
• A major legislative initiative addressing these challenges is expected to be unveiled by the European Commission in late February.

3 Articles

FOCUS online Der Tagesspiegel Stern