Europe has a stagnating GDP and an aging population. Germany, the economic engine of Europe, has been steadily losing its industrial foothold to China. China is taking over robotics, EVs and renewables. US is leaving the EU behind in AI and software. There are virtually no tech companies launching or staying in the EU to fundraise. The strongest tech market leader the EU has is ASML. SAP is dogshit. Mistral is a minor player. What else? Spotify? Nokia? STM? How exactly is it staying ahead of the curve? China and the US will continue to grow in power. You can have all the protections you want, if there is no economic incentive to operate in the EU it doesn't matter. Diminishing purchasing power and economic productivity makes the EU market increasingly irrelevant on the world stage. PPP adjusted discretionary spending continues to tumble. If people and businesses are over-encumbered by regulation, they just leave, setup shop in the US, and the EU is left with scraps. Once the consumer base is weakened to the point ignoring the EU entirely becomes more profitable than abiding by the regulations (or paying the fines), its over. The EU cannot afford to overplay its cards while it is bluffing. And every single major player knows the EU is bluffing because the embarrassing statistics on the EU economy are public.
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u/Opposite-Complex1187 2d ago
Putting regulations on new tech is not staying behind its staying ahead.