Challenges for European industry: Persistent stagnation and the search for new directions

6. 04. 2024 | Natalie Bezděková

The European Union faces significant challenges that require urgent action and restructuring ahead of the upcoming European Parliament elections. The political direction is gradually changing, highlighting the need to respond to stagnation and lack of investment. The European Commission, most likely to be led again by Ursula von der Leyen, recognises the need to reassess priorities in the light of ensuring competitiveness.

The current policy focus on regulation and climate action has hit its limits. Europe is facing an exodus of foreign investment and a shift of production to other regions where conditions are more business-friendly. This trend is particularly evident in the automotive industry, where competition from China and the United States is seriously threatening European manufacturers.

Prominent industrialists and entrepreneurs are beginning to urge European leaders to rethink their approach to regulation and encourage innovation. They stress the imbalance in the provision of state subsidies and highlight the importance of competitiveness and investment in new technologies.

The European Union is thus at a stage where bold action is needed to restore the economy and increase competitiveness. The possibility of joint indebtedness is being discussed, but finding a consensus will be difficult. Nevertheless, this is a key step that could contribute to the recovery and future prosperity of the European Union.

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Author of this article

Natalie Bezděková

I am a student of Master's degree in Political Science. I am interested in marketing, especially copywriting and social media. I also focus on political and social events at home and abroad and technological innovations. My free time is filled with sports, reading and a passion for travel.


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