Europe is at a crossroads, and if its leaders don’t act fast, the continent could become nothing more than a historical museum. Former Polish Prime Minister Mateusz Morawiecki has raised serious concerns about the European Union’s economic decline, comparing its trajectory to that of the United States. According to Morawiecki, “16 years ago, the economies of the U.S. and the EU were at a similar level. Today, America’s economy is about 50% larger.”
America’s Boom vs. Europe’s Red Tape
How did this happen? Morawiecki points to the stark contrast between the two economic models. While the United States has embraced innovation and rapid economic growth, Europe has become bogged down in bureaucracy and excessive regulations. “Europe chose regulation and focused on pointless matters, while the U.S. chose innovation and economic expansion,” he said.
The numbers speak volumes. America is home to nine companies valued at over a trillion dollars—Europe has none. Instead of fostering business-friendly policies, the EU has created what Morawiecki calls a “factory of regulations” that stifles entrepreneurship. “Instead of the world’s largest semiconductor factory, we have a factory of rules and red tape,” he remarked.
Regulation: A Roadblock to Prosperity
Morawiecki warns that the EU’s overregulation is pushing startups, scientists, and investors to flee to the U.S. “Why do they choose America? Because excessive regulations kill business in Europe,” he explained. High taxes, rigid labour laws, and radical climate policies have made the EU less attractive for companies looking to innovate and expand.
Take the EU’s obsession with climate regulations. While environmental responsibility is important, excessive restrictions have driven up energy costs, making it harder for European industries to compete globally. Similarly, inflexible labour laws discourage companies from hiring, preventing economic growth and job creation.
Is Europe Doomed to Stagnation?
Morawiecki doesn’t mince words: “We must act—and act quickly—before Europe turns into a museum, a ‘skansen’ of past glory, while its economy sinks further into stagnation.” If EU leaders refuse to change course, the consequences will be dire: slower economic growth, higher unemployment, and a diminished role on the world stage.
USA🇺🇸 vs UE🇪🇺 – zobaczcie, jak Stany Zjednoczone odjechały Europie! Innowacje vs regulacje – takie są skutki polityki obecnego kierownictwa Unii. Czas to zmienić! #MEGA pic.twitter.com/ixK0xJrMeH
— Mateusz Morawiecki (@MorawieckiM) February 16, 2025