Europe’s tech industrialists call for EU leaders to urgently...

Europe's tech industrialists call for EU leaders to urgently confront deteriorating competitiveness

The Orgalim Council, made up of leaders of Europe's high-tech manufacturing industries, has expressed its profound alarm over Europe's decline in competitiveness.

Europe is at risk of permanently falling behind the world's leading economies. In 2024, EU GDP is forecast to grow by just 1%, compared with 2.4% in the US and 3.2% in the world as a whole. Lower productivity is a major contributing factor to Europe's slow growth. In 1995, the EU and the US had similar rates of productivity. However, today, our productivity is about 20% below the US.

European way of life as we know it will face a decisive challenge.

"Our citizens' continued welfare, security and environmental standards depend on a vibrant European economy. If we cannot close the competitiveness gap that has opened up, I am deeply concerned that the European way of life as we know it will face a decisive challenge," Javier Ormazabal, President of Orgalim.

We are calling on leaders to take bold action now to tackle the root of these problems and make Europe an attractive place for industry, investment and innovation.

This has to start with tackling the stifling regulatory burden weighing down our industries. Between 2019 and 2024, the EU passed 13,000 pieces of legislation, many of which are needlessly prescriptive, unclear and incoherent and are holding back growth and productivity in our industries. By comparison, the US adopted 3,500 pieces of legislation at federal level in the same period.

EU leaders must reverse this regulatory overreach, reducing and rationalising laws wherever possible. They should also follow our industries' concrete and actionable proposals to mainstream competitiveness in policy areas from energy, climate and the circular economy to investments, digital, the single market, standardisation and trade.

Our industrialists across Europe stand ready to work closely with lawmakers and regulators on realising our shared goal of sustainable prosperity. We are calling on EU leaders to show the political courage required to rise to the situation that Europe is in - before it is too late.