The forecasts published in mid-April 2026 regarding the European economy growing by a mere 1.1% did not surprise observers, but rather confirmed a bitter reality experienced by the Old Continent. European industry, once the engine of growth, finds itself today
caught in a pincer movement: volatile energy costs due to crises in the Middle East and Eastern Europe, and harsh monetary policies aimed at taming inflation. This reality has pushed many major corporations to scale back production or seek less
expensive investment havens outside the borders of the European Union. Unless Brussels takes bold decisions to enhance competitiveness and alleviate tax and regulatory burdens, the risk of sliding into a prolonged economic recession will persist, threatening the social welfare structure
that characterizes European nations.
