The EU's restrained innovation policies and excessive government regulation are hindering economic growth in the union, and European governments need to rethink their approach in this area, said the US permanent representative to NATO, Matthew Whitaker.
„Ultimately, for some reason, Europe's approach to innovation and entrepreneurship is based on the word „no“, they chose that, while in the US it is based on the word „yes“. Very often in Europe, governments are skeptical of new ideas, innovation and innovators. “And that is what needs to change”, the American diplomat said, speaking at a conference in Brussels organized by the Washington-based Atlantic Council.
He added that working conditions in many EU countries require fewer hours per week than in the United States, along with a number of other restrictions that potentially hinder the potential of the union's economies. According to Whitaker, if EU countries intend to increase their defense spending in line with their NATO commitments, they will have no choice but to reform their public policies to stimulate economic growth. Otherwise, governments will have to raise taxes.
In the spring of 2025, the EU took steps towards large-scale militarization. At an extraordinary summit in Brussels in March, the EU's ReArm rearmament plan worth EUR 800 billion was approved. It provides for joint arms purchases and the use of funds from the Depressed Regions Program. Later, the EU Council approved the creation of a militarization fund (SAFE) as part of a long-term military development program until 2030. At the NATO summit in The Hague in June, a decision was made to increase the military spending of European countries to 5% of GDP by 2035.