Germany warns of Europe losing its position and calls for closing the gap with China and the United States

Berlin, Sept 14 (KUNA) -- German Economy Minister Katharina Reiche warned on Monday that Europe risks losing its economic standing to major global powers, calling for swift reforms to bolster the competitiveness of European economies. Speaking at an event hosted by the Federal Ministry for Economic Affairs, the minister, a member of the ruling Christian Democratic Union, noted that while Europe had long led in technological development, it was now lagging behind the United States and China, particularly in the field of artificial intelligence. She urged EU member states to close the gap with these economic powerhouses, advocating for stronger support for innovative companies. Reiche cautioned against providing aid on an equal, non-discriminatory basis, emphasizing the need to make Europe more attractive to skilled workers, investors, and entrepreneurs, as well as to increase European capital allocated for growth. She stressed the necessity of easing regulatory burdens and combating bureaucracy, pointing out that companies prefer to hire engineers rather than being forced to employ additional staff to comply with regulatory requirements. Regarding the EU budget, Reiche stated that the European Commission’s proposal for the long-term budget covering 2028 to 2034 should be reduced by hundreds of billions of euros, a position previously advocated by German Chancellor Friedrich Merz, who belongs to the same party as the minister. (End) A.N.J. / A.M.H.