How to Keep Europe's Economy Stuck in Neutral

If you wanted to design a strategy to keep Europe's economy lagging behind, you couldn't do much better than the current approach. While Mario Draghi's ambitious plan aims to rejuvenate the Continent's economic engine, it's worth considering the flip side: the very policies and attitudes that have been holding Europe back and could continue to do so if left unchecked.

First, let's make sure to keep all the red tape firmly in place. Entrepreneurs thrive on simplicity and speed, so by maintaining a labyrinth of regulations, we ensure that starting a business remains a herculean task. With over 100 tech-focused laws and 270 regulators spread across the EU and its member states, innovators will spend more time navigating bureaucracy than developing breakthrough technologies.

Next, let's preserve the complex patchwork of bankruptcy laws. By making insolvency procedures a nightmare, we can effectively deter foreign investors and discourage risk-taking. After all, who wants to invest in a place where failure means being entangled in legal woes for years?

We should also continue to fragment our financial markets. By keeping securities laws varying significantly from one country to another, we ensure that raising capital remains a challenge. Underdeveloped private pension systems can stay as they are, keeping large pools of capital on the sidelines. This way, European entrepreneurs will continue the tradition of seeking funding across the Atlantic, bolstering America's economy instead of our own.

Let's not forget the precautionary principle. By insisting on proving something is entirely safe before allowing it, we can effectively stifle innovation. This approach ensures that new technologies and ideas are bogged down in endless testing and approval processes. Meanwhile, other parts of the world can take the lead in areas like artificial intelligence, biotechnology, and renewable energy.

To top it off, we can keep focusing on punishing successful companies rather than emulating their strategies. The recent European Court of Justice rulings imposing hefty fines on companies like Apple and Google send a clear message: success will be met with suspicion and penalties. This approach not only discourages foreign investment but also tells our homegrown companies that growing too big might paint a target on their backs.

By concentrating on institutional tinkering, such as debating new eurozone bond issuance, we can avoid making any substantive reforms that might actually stimulate growth. It's much easier to get bogged down in bureaucratic discussions that lead nowhere than to tackle the challenging task of overhauling our economic policies.

Of course, we should continue to selectively read reports like Mr. Draghi's, focusing only on the parts that fit pre-existing agendas. By emphasizing calls for more government "investment" without acknowledging the need for private capital, we can justify increased public spending without addressing underlying structural issues. Highlighting commitments to decarbonization and digitalization sounds progressive, but without a supportive environment for private enterprise, these goals remain out of reach.

Now, some might argue that this strategy sounds counterproductive. But if the goal is to maintain the status quo and avoid the hard work of implementing real change, it's remarkably effective. After all, Europe's economy didn't fall behind overnight. It took years of complacency, resistance to change, and an unwillingness to embrace the dynamism of the private sector.

But here's the catch: continuing down this path isn't just about economic numbers on a chart. It's about the livelihoods of millions of people, the ability to fund essential services, and Europe's influence on the global stage. A stagnant economy can't support robust defense spending, cutting-edge research, or meaningful contributions to solving global challenges.

So perhaps it's time to reconsider this unintentional blueprint for economic stagnation. Maybe, just maybe, embracing some of the strategies that have propelled other economies forward could breathe new life into Europe's economic prospects.

Simplifying regulations to make it easier for entrepreneurs to start and grow businesses could unleash a wave of innovation. Harmonizing financial markets and securities laws might attract investment and keep capital within Europe. Encouraging a culture that celebrates success rather than punishing it could inspire a new generation of industry leaders.

Re-evaluating the precautionary principle to balance safety with innovation could position Europe at the forefront of emerging technologies. And by fully engaging with all aspects of reports like Mr. Draghi's—not just the convenient parts—we might develop a comprehensive growth strategy that benefits everyone.

In the end, the choice is ours. We can continue with the policies that have led to a 30% economic gap between the EU and the U.S., or we can chart a new course. It's not about abandoning Europe's values or identity, but about adapting to a changing world in a way that preserves prosperity for future generations.

So while it's useful to consider how to keep Europe's economy stuck in neutral, perhaps it's more worthwhile to think about how to shift into high gear. The road ahead may be challenging, but the destination—a vibrant, competitive, and prosperous Europe—is surely worth the journey.