European business leaders warned on Tuesday that the region risks falling behind its US and Asian counterparts if it fails to innovate and adapt to a rapidly changing world that is expected to see global policy changes accelerate during President Donald Trump's second term in office. .
Europe has been “always lagging behind” its counterparts in Asia and the United States when it comes to innovation, said Mario Greco, CEO of Zurich InsuranceHe told CNBC from the World Economic Forum in Davos, Switzerland.
“In a world that is moving so fast forward, with so many innovations, this is a wake-up call for Europe again. I hope Europe takes it seriously,” Greco said.
“Take all the developments in artificial and digital intelligence. Europe has not invested in that, as America and China have done. It is also the integration of financial markets in Europe. It is still (a question of) how complex it is to do business in Europe,” Greco added. “And that is why I say it again: Europe must wake up.”
Greco added that Europe has become too preoccupied with regulation and is stifling progress, especially in the area of new technologies needed to drive growth — and as we enter the Trump 2.0 era of “America First” policies, the region will need to defend itself more. Economic interests.
President Donald Trump signed on A series of executive orders On his first day in office on Monday, including withdrawing from the Paris climate agreement and scrapping the 50% electric vehicle target, as well as moves to crack down on immigration.
Globally, along with male That a 25% tariff could be imposed on Mexico and Canada as early as FebruaryTrump also sent a warning signal that the European Union needs to buy more American goods, as well as oil and gas, or it will be a target for tariffs.
Vas Narasimhan, CEO of Novartis, told CNBC that the era of Trump 2.0 was “a big moment for Europe,” during which the region needs to deregulate and boost competitiveness.
“Europe has to decide now, in a world where the United States is significantly deregulating and trying to increase competitiveness, is Europe going to continue to sit idly by, continue to increase regulation in the (European) Commission, and increase regulation in various areas? Individually, Or will we finally have a more conducive environment for competition and innovation in Europe?
“We have to see. History suggests that although there has been a lot of talk, there has not been a lot of action on the part of the (European) Commission. Now, this is the right moment. Because if not, I think Europe will.” “. “We will fall further behind the United States,” he said.
Enhancing competitiveness
European policymakers appear to recognize the urgent need for innovation and deregulation in the face of burgeoning economic competition and rivalry from the United States and China.
“The new Trump administration should serve as a wake-up call for Europe,” Belgian Finance Minister Vincent Van Petegem said, Reuters reported on Monday. “Instead of focusing on retaliation (against US tariffs), we should focus on the challenges Europe faces – the declining competitiveness and the growing productivity gap we face,” he said.
Europe needs more streamlined and harmonized regulation across the bloc in order to boost competitiveness and labor productivity, which is a growing concern for the continent, said Steven van Rijswijk, CEO of ING. He noted that more investment is also needed.
“There are a lot of investments to be made in infrastructure, a lot of investments to be made in the strategic autonomy of Europe when it comes to technological infrastructure, these are the things that need to be stimulated,” he told CNBC. On the sidelines of the World Economic Forum.
Speaking during a panel discussion on the future of growth, Banco Santander chief executive Ana Botín said governments needed to develop frameworks to start growth “in the right way, with redistribution (and) thinking about what artificial intelligence means”.
“We are not a museum,” she said of Europe. “We are in danger of becoming a museum. But who is developing the latest vaccines? A lot of innovation is already happening in Europe. We have a large number of startups. The problem is that they start here and then move to the United States.” “.
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— CNBC's Karen Gilchrist and Chloe Taylor contributed to this story
