Europe is overly dependent on exports to the United States and American support in defense, as well as on imports of consumer goods from China and energy from Russia. Such dependence is a sign of the European Union’s weakness. As one of the world’s three largest economies—alongside the United States and China—Europe possesses vast financial resources, human capital, and knowledge. However, instead of taking on the role of a major global player, it has relegated itself to the status of a bystander. The Draghi Report warns that if Europe continues to “sleep,” it will lose its rightful place in the world and the wealth it has accumulated. In the face of a global technological race and economic competition, both authorities and citizens must take action to maintain their position.
– Why has this happened? Decisions made in Europe, including those made before our accession to the EU, have certainly played a role. The weaknesses highlighted in the Draghi Report are a clear example of this – said Prof. Witold Orłowski, an economist at the Vistula University of Finance and Business and the Warsaw University of Technology, in an interview with eNewsroom.pl.
– In the United States, spending on scientific research is comparable to that in Europe, although slightly higher in the US. However, the key issue is how the funds are allocated. In the US, 90% of research funding is distributed centrally by the federal government, which allows for the support of breakthrough projects such as space programs or military research. In contrast, in Europe, 90% of research funding is allocated by individual countries, with only 10% managed centrally. Each country decides on its expenditures independently, leading to duplicated research efforts and a lack of so-called critical mass. Europe has the potential to be one of the main players on the global stage. However, its challenges lie in complacency, inertia, and a lack of willingness to cooperate. This could turn Europe into a spectator rather than a leading actor.
There is hope, however, that the shocks caused by Trump’s presidency or, earlier, by Putin’s actions, might serve as a wake-up call for Europe. Only time will tell. Europe, wake up! As the old saying goes, “If you snooze, you lose!” But will the disruptions caused by Trump and Putin be enough? That remains to be seen – reflects Prof. Witold Orłowski.
Source: https://managerplus.pl/trump-i-putin-jako-katalizatory-zmian-czy-europa-sie-obudzi-88942
