In this Bloomberg interview, Luxembourg’s finance minister Gilles Roth argues that Europe must urgently sharpen its competitiveness and rethink how it engages with global trade. He warns that the world is drifting toward more fragmented trading blocs, and the EU cannot afford to be caught unprepared. Roth stresses that Europe needs to “focus on itself” by strengthening its industrial base, simplifying regulations, and investing in innovation so that companies aren’t tempted to shift production outside the continent. He also touches on the debate around using Russia’s frozen assets, reflecting the broader geopolitical pressures shaping Europe’s economic decisions.
For Germany, Roth’s comments hit directly on familiar pressure points. As Europe’s biggest economy and its traditional export powerhouse, Germany’s slowdown has amplified worries about the EU’s overall competitiveness. High energy prices, ageing infrastructure, and slow digital progress mirror the structural weaknesses Roth describes. Berlin’s recent decision to boost public investment and modernise its industrial base is essentially a response to the same challenges he warns about. And his point about avoiding global trade fragmentation resonates strongly with Germany’s situation: if Germany fails to adapt and lead, the entire EU risks losing ground to faster-moving competitors like the U.S. and China.
Watch in detail on Bloomberg for a clear take on Europe’s competitiveness challenge.