Economics
Dec 10, 2025
Philippe Aghion
Now that major geopolitical developments have forced Europeans to rethink how they will ensure their own prosperity, security, and sovereignty, policymakers must not take innovation for granted. This primary engine of economic growth will not run smoothly unless it is properly tuned and carefully maintained.
PARIS – While debates about Europe’s flagging growth prospects have been ongoing at least since the turn of the century, the 2020s have lent them new urgency. Not only did Russia’s invasion of Ukraine expose a dangerous dependence on imported energy, but a change of administration in the United States has forced Europeans to rethink how they will ensure their prosperity, security, and sovereignty in the future. Moreover, with America and China racing ahead in AI – widely assumed to be the next general-purpose technology, on par with the internet – Europe’s lack of dynamism has become an emergency.
