^{Photo: The Parliament Magazine}

Europe is confronting a growing set of structural and economic challenges, with political and business leaders warning that the continent is struggling to implement reforms that could boost growth and innovation. Insights were shared on the sidelines of the Ambrosetti Forum, where experts highlighted systemic issues that continue to hold Europe back.

Persistent Barriers to Competitiveness

Leaders pointed to entrenched bureaucracy, regulatory complexity, and inconsistent policies across member states as key obstacles. These factors are seen as limiting Europe’s ability to compete globally, especially against fast-moving economies in North America and Asia.

Despite initiatives aimed at streamlining governance and simplifying business regulations, many European companies report that administrative hurdles and slow decision-making processes continue to stifle innovation and productivity.

Efforts to Drive Innovation and Agility

European policymakers insist they are focused on creating a more agile, business-friendly environment. Initiatives include investment in technology and research, promoting cross-border collaborations, and reforming labor and regulatory frameworks to reduce red tape.

However, experts warn that these efforts have yet to produce significant results, and Europe risks falling behind in areas such as digital transformation, AI adoption, and sustainable industrial development.

The Path Forward

Leaders at the forum emphasized the importance of stronger coordination between governments, businesses, and international partners. They stressed that overcoming bureaucratic inertia and fostering a culture of innovation will be critical to ensuring long-term economic growth, job creation, and global competitiveness.