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The recent US national security strategy offers a misguided view of Europe. It claims that unrestrained immigration and so-called "progressive" agendas pose an existential risk to European civilization. Yet, this perspective is based on a serious misreading of the reality. The actual danger confronting Europe is not societal but economic and technological backwardness.

The Stark Growth Gap Between the US and Europe

The data paint a stark picture. Between 2008 and 2023, American economic output surged by eighty-seven percent, compared to a mere thirteen and a half percent increase for the European Union. During this period, European income per person fell from 76.5% to just 50% of the American figure. Strikingly, even Mississippi now has a greater average income than several leading European economies like Italy and France.

Currently, about half of the world’s top fifty tech companies are US-based, while a mere four are European.

The Technological Deficit: The Core Problem

This widening economic gap is driven by stronger productivity growth in the US, fueled by breakthroughs and better use of resources. The scene of global tech leadership is overwhelmingly American. In the last fifty years, hundreds of American startups have grown into companies valued at more than ten billion dollars, versus only fourteen in the European continent.

This disparity prompts a vital question: In the race for future industries like semiconductors, AI, and fusion energy, where does the EU positioned? Most analysts agree it is essentially a contest between two between the US and China, with Europe entering at a clear disadvantage.

Root Causes of the Continent's Technological Lag

A number of key reasons account for this technological divide.

• Venture Capital: The United States has a far deeper and more dynamic system for funding startups. Europe still lacks a true capital markets union, which caps the growth potential of emerging companies.
• Regulatory Fragmentation: Complex and divided regulation hinder European business. A US startup can launch a product under a single regulatory framework to access a market of hundreds of millions. The European Union, despite a bigger population size, is divided among 27 different national regimes, creating huge internal barriers.
• Mindset Differences: Attitudes toward risk-taking differ sharply. In parts of Europe, a startup's collapse was once viewed with penalties, whereas in the US, it is often seen as a valuable lesson.
• Defense Spending: The United States enjoys a deeply integrated academic-military-industrial complex. Europe's long-term lack of spending in military capabilities has eroded its capacity for pioneering research.

A Path Forward: Grounds for Hopefulness

In spite of these challenges, one can find reasons for hope. Policymakers are growing more conscious of the severe threat and have begun to advance substantial change. Notable analyses on EU competitiveness and the internal market point to the necessity of major changes.

With the right incentives and regulatory reforms, these assets could support much higher levels of business-led breakthroughs.

The continent retains significant strengths: skilled workforce, top-tier schools and universities, and world-class research institutions. Alongside a large internal market and high savings rates, these elements could unleash a surge of investment and entrepreneurship.

Crucially, even if Europe does not take the lead in developing cutting-edge tech, it can still dramatically boost productivity by implementing and tailoring advancements from other regions.

An Inflection Point

Europe now stands at a critical moment. To paraphrase a famous line, decline often happens "gradually and then suddenly". So far, the continent's technological decline has been steady. However, without decisive action to tackle its structural weaknesses, today's slow erosion could turn into a rapid and permanent loss of world influence.