The Old World still has strong assets.
Europe is facing mass unemployment if it does not immediately deregulate its economy, said Morten Wierod, head of ABB – one of the largest industrial conglomerates in Europe. In an interview with the Financial Times, he explained that the EU is currently facing an energy shock due to the war in the Middle East.
The entrepreneur pointed out that European lawmakers are slow to implement reforms, even though rising gas prices and other energy sources are already undermining the EU's competitiveness compared to the United States.
"I hope we do not have to see a much more serious crisis that leads to mass unemployment. This should not be a necessary condition to gain that sense of urgency," Wierod warned.
He reminded that Europe still has strong assets in the form of skilled workers, quality education, and crisis management experience. However, disruptions in gas supplies are increasing competitive pressure on the EU. The entrepreneur emphasized that the resource is unlikely to disappear completely, but its cost will rise significantly, which will impact the economic condition of member states.
"I am not worried that there will be no gas in Europe. There will be. But at a higher price," said the head of ABB.
The average unemployment rate in the European Union is 6.0%, while in the eurozone (countries using the euro) it is 6.3%.
