MUNICH
Europe has lost competitiveness but has the potential to get better, the prime minister of Luxembourg said Sunday.
The EU needs to do more as a bloc to become more competitive, Luc Frieden said on the final day of the three-day Munich Security Conference.
Speaking at a panel on reviving European competitiveness, he said the American economy has not changed in the three weeks since President Donald Trump came to power as the previous Joe Biden administration passed the Inflation Reduction Act and similar legislation.
“The US has done a lot to attract investment, and we as Europeans need to build on our strengths,” said Frieden, adding that the EU has a huge market of 400 million people, but Europeans need to do more to become more competitive.
On the obstacles to make the European market more attractive, he highlighted that the bloc needs to deepen the single market as there are still “a lot of hurdles to cross-border activities.”
“We do not think enough as one bloc, but we very often think as 27 member states. So we have the tools to do more and I think we need to do more on research, on innovation,” added Frieden.
He added that although the European Commission is encouraged by a review of quite a number of regulations “we (will) take some time to implement it.”
Frieden said the EU’s challenge is to be as fast as other competitors, such as the US and China.
“I think we lost competitiveness, that’s for sure. But we have the potential to become better,” he noted.
Saying that Europeans should speak “more positively” about Europe, the premier added that they can achieve “a lot” on the European continent.
His remarks came amid growing debate over the future of US-EU trade ties as US President Donald Trump last week announced 25% tariffs on foreign steel and aluminum.
