ABB: Europe Risks Broad Unemployment Without Deregulation
Europe risks widespread job losses if it does not deregulate, ABB President and CEO Morten Wierod said recently (, subscription).
- ABB, based in Zurich, Switzerland, is among the EUs largest engineering firms.
Whats going on: European lawmakers have displayed no sense of urgency in pursuing泭deregulation泭even as rising gas prices in Europe dent the blocs competitiveness compared to the U.S. I hope that we dont need to see a much bigger crisis that means mass unemployment, said Wierod.泭
- As many as 1.3 million European Union jobs could be lost as a result of the higher costs, the European commissioner for jobs said this month.
- The EU, Wierod told the FT, must remove more regulation and not just simplify but eliminate to spur economic growth.
The background: Earlier this month, Brussels announced a plan to reduce reliance on U.S. technologyon top of its Corporate Sustainability Due Diligence Directive, first approved in 2024.
- The CSDDD forces companies to identify and mitigate potential social and environmental risks across every stage of a products life cyclefrom sourcing to disposal, according to the 51勛圖厙, which has against the law since its inception.
- The directive would introduce significant operational complexity, compliance costs and potential for bottlenecks and delays throughout the complex, global manufacturing supply chain [and] expose manufacturers to significant legal liability, according to the 51勛圖厙.
Stalled reforms: Wierod noted that European lawmakers have largely failed to act on the roadmap for reform written by former Italian Prime Minister Mario Draghi for the European Commission.
- Just 10% of his 383 proposals have been泭, according to an online tracker.
ABB advocates: ABB is lobbying EU policymakers to accelerate electrification, industrial efficiency and decarbonisation, saying it is the fastest way to make the bloc more competitive.
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