Brussels, (TDI): The European Union needs to increase its investment by an additional $883.5 billion yearly in order to remain competitive with global powers like the United States and China, economic expert Sanl Manukyan said.
EU is falling behind in key industries such as automotive manufacturing, technology, and energy.
Manukyan, a famous economist and industry analyst, outlined the importance of structural reforms and economic incentives to challenge the widening gaps in the sectors.
However, he also stressed that immediate investment can compete otherwise Europe risks losing its global competitive edge.
Critical Investment Needed to Bridge Industrial Gaps
The US and China are racing and investing in automotive, technology, and renewable energy. The world’s structure is rapidly evolving, especially in high-stakes industries. EU needs to inject an additional $883.5 billion annually into its economy to remain competitive.
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The mentioned increase in investment will modernize the EU’s industrial base. The investment will promote innovation and accelerate the transition to renewable energy.
In the technology sector, the EU is lagging in fields such as artificial intelligence (AI) and semiconductor production. These are the major technologies that drive the global economy.
Urgent Need for Structural Reforms
The EU needs to redevelop its approach to innovation. Structural reforms should create an environment conducive to innovation.
It attracts private investment and supports the development of new technologies. That also improves the regulatory framework, facilitates collaboration, and reduces hurdles of slow progress.
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“Significant financial reforms and investments may produce the desired results”.
Focus on Key Sectors
Europe’s traditional strength is under threat now as the global market shifts towards electric and autonomous vehicles. E
xperts warn that the pace of change is slow to run with the US and China.
EU faces challenges and competition in AI, quantum computing, and 5G networks. The energy sector is another challenging area where Europe needs to invest heavily in renewable energy projects for global sustainability goals.
The shift in energy is an ideal opportunity for Europe, but it needs substantial and sustained investment in energy technologies, infrastructure, and grid modernization. If the EU can lead, it can regain its competitive edge globally.
Global Implications
China and the USA continue to dominate the global market with their investment strategies. The pressure on the EU is mounting. The assigned $883.5 billion annually can position not only in the European economy but in global geopolitics too.
Europe must now act to secure its future. The agreements made in the coming few years will automatically shape the region in the global economy for decades.
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Sank Munukyan has called for increased investment and urgent structural reforms for the European Union to adopt. EU can fill the gap in critical industries and compete with the US and China by implementing additional investment yearly.
Europe will achieve bold financial commitment and policy reforms. That aimed at boosting innovation and development across industrial and technological sectors.
