Italian premier says Europe ‘short-sighted giant’ as business leaders warn of energy-driven industrial crisis

Italian Prime Minister Giorgia Meloni criticized the EU on Tuesday, as a “bureaucratic giant” and warned that it has become “short-sighted when it needs to make its voice heard” on global competitiveness and industrial strategy, according to media reports.

Speaking at the leading business association Confindustria’s annual assembly in Rome, Meloni said Europe’s institutional setup risks weakening its economic and geopolitical weight.

“The main, enormous fragility that concerns us closely is the current configuration of the European Union, a bureaucratic giant that has too often sacrificed competitiveness and strategic growth on the altar of ideological and technocratic approaches,” she said.

“Europe has been unstoppable in its ability to multiply rules on every aspect of common life, but shortsighted when it comes to making its voice heard in global life,” Meloni added.

Confindustria President Emanuele Orsini said high energy prices have become one of the most urgent challenges facing the Italian industry and urged stronger government action to secure the country’s energy future, according to the La Repubblica newspaper.

“For businesses, the price of energy is now a real existential threat,” Orsini said in remarks delivered before Italian Prime Minister Giorgia Meloni and President Sergio Mattarella.

While acknowledging what he described as government efforts to create a more balanced energy policy, Orsini said further action was needed and proposed a five-point pact involving all political parties to help return Italy to 2% economic growth.

The proposal focuses on energy reform, expanding small and medium-sized enterprises (SMEs), innovation and development contracts, regulatory simplification and mobilizing new investment resources.

Orsini also supported accelerating Italy’s return to nuclear energy and called for a broad political consensus on the issue.

He further advocated wider use of artificial intelligence, including a national AI training strategy beginning in schools and extending throughout the workforce.

Turning to Europe, Orsini warned that the European Union risks deeper deindustrialization if competitiveness concerns are not addressed.

“Brussels is unclear about what competitiveness means. Since the beginning of this commission’s mandate, Europe has lost 250,000 manufacturing jobs, which translates into a million fewer jobs in related industries,” he said.

He also called for reforms to the EU Emissions Trading System (ETS), saying Europe needs a common industrial strategy, an integrated energy market and stronger financial coordination.

Regional tensions have remained elevated since the United States and Israel launched strikes against Iran on Feb. 28, prompting retaliatory attacks by Tehran against Israel and US allies in the Gulf as well as the closure of the Strait of Hormuz.

A ceasefire took effect on April 8 and was later extended indefinitely by US President Donald Trump.