Story perspectives

Europe Urged to Innovate Amid Geopolitical Pressures

12/11/2025

Summary

Story summary

Europe faces competitiveness and security pressures from geopolitical shifts, including energy dependence and AI lag behind the United States and China.
Mario Draghi, former president of the European Central Bank, says Europe should remove market barriers and pursue pro-innovation industrial policies.
Europe must embrace creative destruction, letting new firms replace outdated ones.
A Danish-style flexicurity model could support displaced workers during the transition and ensure that innovation remains inclusive.

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Story summary

Europe faces competitiveness and security pressures from geopolitical shifts, including energy dependence and AI lag behind the United States and China.
Mario Draghi, former president of the European Central Bank, says Europe should remove market barriers and pursue pro-innovation industrial policies.
Europe must embrace creative destruction, letting new firms replace outdated ones.
A Danish-style flexicurity model could support displaced workers during the transition and ensure that innovation remains inclusive.