European Commission President Ursula von der Leyen declared that the foundational assumptions underpinning Europe’s old economic model have completely disappeared.

 

FR - Von der Leyen Warns Europe’s Old Economic Model Has Disappeared!

European Commission President Ursula von der Leyen declared that the foundational assumptions underpinning Europe’s old economic model have completely disappeared. Speaking at the annual La REF (Meeting of French Entrepreneurs) business conference in Paris, von der Leyen warned that European businesses are facing unprecedented structural shocks and must adapt to a new paradigm.

The 5 Disappeared Certainties

According to her speech published by the European Commission, Europe can no longer rely on the five historical advantages that previously guaranteed its economic comfort:

• Cheap imported energy: The era of low-cost fossil fuel imports (primarily Russian gas) has officially ended.
• Open global trade: Rising geopolitical tensions and fragmentation have restricted global supply lines.
• Expanding access to China: The EU's trade deficit with China has widened drastically, approaching €1 billion a day, making the current imbalance unsustainable.
• American strategic protection: Global shifts mean Europe must take greater responsibility for its own security and strategic independence.
• Western technological leadership: Rapid global advancements mean Europe's technological edge is under fierce competition.

The Strategy: "Produce, Invest, and Protect"

To rebuild competitiveness, von der Leyen outlined a strategy focused on shifting Europe into a continent that aggressively manufactures and self-sures:

• Slashing Bureaucracy: The EU aims to cut administrative burdens by 25% for large enterprises and 35% for small and medium-sized businesses (SMEs) by 2029, saving an estimated €37.5 billion annually.
• Tackling Energy Competitiveness: European energy prices remain two to three times higher than in the US and China. The Commission intends to accelerate domestic low-carbon energy production and industrial electrification.