For decades, the EU was a beacon of economic prosperity, global trade leadership and political stability.
Yet today, it faces an undeniable challenge – its global influence is waning due to systemic economic and geopolitical setbacks. The rapid pace of technological innovation in the US and China’s assertive expansion in trade and infrastructure projects, including the Belt and Road initiative, have left the EU struggling to assert itself.
Despite having a large and skilled workforce, Europe's productivity growth has stagnated, with real income per capita rising at a significantly slower rate than in competing economies. Additionally, the bloc’s reliance on external suppliers for critical technologies and raw materials has deepened its vulnerabilities.
A combination of technological stagnation, industrial fragmentation, energy insecurity and weak geopolitical positioning has left Europe struggling to maintain relevance in an increasingly competitive world, with many industries shifting their high-value operations outside the continent.
The EU must now confront these pressing issues head-on or risk long-term economic and political decline.
Productivity and innovation deficit
Europe's economic stagnation is rooted in its inability to keep pace with global productivity growth. While the US has embraced technological revolutions in artificial intelligence, semiconductors and digital platforms, Europe has failed to produce major tech giants.
Since 2000, real disposable income per capita has increased at nearly double the rate in the US compared with the EU, according to economic assessments. This widening income gap reflects deeper systemic issues, including rigid labour markets, regulatory hurdles and a lack of risk capital for high-growth industries.
The EU’s structural deficiencies extend to its failure to translate research into economic leadership. While European universities and research institutions produce cutting-edge discoveries, the region consistently lags in commercialisation, Mario Draghi, former president of the European Central Bank and former Italian prime minister, said in a recently released report, The Future of European Competitiveness.
Unlike the US, where start-ups are quickly scaled through deep capital markets, European innovators struggle with funding constraints, bureaucratic red tape and fragmented regulatory regimes. As a result, many of Europe’s most promising entrepreneurs relocate to Silicon Valley or China, where they find greater opportunities to expand.
Industrial fragmentation
Another major reason for Europe’s decline is its fragmented industrial landscape. Unlike China, which integrates its industrial policies with trade and state financing, or the US, where federal funding supports strategic industries, Europe operates under a patchwork of national interests.
The lack of a unified industrial strategy has weakened the continent’s ability to compete globally. Mr Draghi’s analysis notes that Europe’s corporate structure is "concentrated in mature industries".
The problem is particularly evident in sectors such as defence, semiconductors and clean energy. While the EU collectively spends as much on defence as some of the world’s largest military powers, inefficiencies abound. European nations maintain separate procurement policies, leading to duplication of efforts and reduced efficiency. For example, European militaries operate 12 different types of battle tanks, whereas the US has standardised production, enabling economies of scale and increased military readiness. The lack of co-ordination in defence procurement weakens Europe’s ability to establish a self-sufficient security framework.
In the semiconductor industry, the EU remains heavily dependent on imports, particularly from Asia, despite its critical role in the digital and AI-driven economy. While efforts like the European Chips Act aim to bolster domestic production, Mr Draghi says its "fragmented market structure and lack of integrated supply chains have hindered its ability to compete with semiconductor leaders like the US, Taiwan and South Korea".
Furthermore, the EU’s clean energy transition, while ambitious, is hindered by its lack of a co-ordinated industrial approach. Unless the EU streamlines its policies and accelerates investment in domestic production, it will remain dependent on foreign suppliers, undermining both economic growth and energy security.
Energy insecurity
Europe’s energy crisis has deep roots in its long-standing dependence on external energy sources, particularly Russian fossil fuels. Historically, the EU imported more than 40 per cent of its natural gas and 30 per cent of its crude oil from Russia, making it highly susceptible to geopolitical disruptions. When tensions with Moscow escalated, European nations were forced to scramble for alternative suppliers, leading to extreme volatility in energy prices. This sudden shift placed an enormous strain on European economies, contributing to inflationary pressures and widening the competitiveness gap with the US and China.
Despite efforts to transition to renewable energy, the EU faces an uphill battle. While the bloc leads in wind and solar capacity, its reliance on Chinese-manufactured components for clean energy infrastructure remains a major weakness. Mr Draghi’s analysis warns that "China controls more than 80 per cent of the global solar panel supply chain and dominates battery production, making Europe vulnerable to trade and geopolitical shocks”.
Additionally, fragmented national policies and slow permitting processes have delayed the expansion of critical energy infrastructure. Without a co-ordinated EU-wide energy policy that ensures both security and affordability, European businesses and consumers will continue to face high costs and uncertainty.
Geopolitical irrelevance
The EU is also struggling to assert itself as a geopolitical power, with the bloc often reacting to crises rather than leading the response. The absence of a coherent foreign economic policy has left Europe vulnerable to trade disruptions, supply chain dependencies and external pressure from geopolitical rivals. The EU’s diplomatic efforts often lack a unified voice, as individual member states prioritise national interests over collective strategy.
Moreover, while the US and China pursue aggressive industrial and military strategies to secure their global influence, Europe remains constrained by political disunity and slow decision-making.
Can Europe reverse the path?
The EU stands at a crossroads, where hesitation is no longer an option. If it seeks to regain its place as a global leader, it must embrace economic reforms, drive innovation and foster unity in industrial and geopolitical strategies. Without decisive action, the continent risks further decline, falling behind competitors.
The EU’s future will not be shaped by rhetoric but by the ability to act swiftly and strategically.
Falah Mousa is a Brussels-based government affairs specialist and researcher
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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- 600-seat auditorium
- Spaces for historical and cultural exploration
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- Specialist robotics and science laboratories
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- Disruption Lab and Research Centre for developing entrepreneurial skills
The specs
Engine: 4-litre twin-turbo V8
Transmission: nine-speed
Power: 542bhp
Torque: 700Nm
Price: Dh848,000
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RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The five pillars of Islam
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Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Killing of Qassem Suleimani
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
What is safeguarding?
“Safeguarding, not just in sport, but in all walks of life, is making sure that policies are put in place that make sure your child is safe; when they attend a football club, a tennis club, that there are welfare officers at clubs who are qualified to a standard to make sure your child is safe in that environment,” Derek Bell explains.
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
EXPATS
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UAE currency: the story behind the money in your pockets
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
ZIMBABWE V UAE, ODI SERIES
All matches at the Harare Sports Club:
1st ODI, Wednesday - Zimbabwe won by 7 wickets
2nd ODI, Friday, April 12
3rd ODI, Sunday, April 14
4th ODI, Tuesday, April 16
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
More from Rashmee Roshan Lall
Mohammed bin Zayed Majlis
Company%20Profile
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
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Teams
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals
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