Europe Faces Growing Challenges Amid Struggles to Find Solutions

Europe is facing mounting political and economic challenges, from securing its role in the global order to maintaining business competitiveness, leaders told CNBC at the Ambrosetti Forum. Experts likened Europe to a “rabbit in the headlight,” struggling with the breakdown of the long-standing rules-based system. Economic competitiveness is declining due to slow growth, regulatory burdens, high energy costs, and a fragmented single market, causing Europe to lag behind the U.S. Initiatives like the Competitiveness Compass aim to address innovation gaps, bureaucracy, and market potential, but officials stress reforms must be actively implemented to strengthen Europe’s medium-term economic resilience.