ABB CEO warns of massive job losses in Europe

ABB CEO warns of massive job losses in Europe Keystone-SDA

The CEO of Swiss engineering firm ABB has warned of a significant loss of EU competitiveness and possible mass redundancies.

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The EU must deregulate as a matter of urgency, Morten Wierod said in an interview with the Financial Times. Otherwise, there is a risk of a severe crisis with “mass unemployment”.

According to the article, the CEO of the Zurich-based electrical engineering group criticised the fact that European lawmakers have shown “no sense of urgency” in their reforms. The reform plan presented by former European Central Bank president and ex-Italian prime minister Mario Draghi has been on the table for almost two years, but very little has been implemented.

“I hope it will not come to a much more serious crisis with mass unemployment. It should not have to get to that point for the necessary urgency to be recognised,” Wierod said.

The ABB CEO called for concrete improvements: “The internal market or the EU must further reduce regulation, not only by simplifying it, but by abolishing regulations altogether and further promoting the internal market. This will stimulate economic growth.”

At the same time, Wierod warned of possible side effects of new EU directives to reduce dependence on foreign technology. ABB supports free trade, but ‘Made in Europe’ standards could have unintended consequences and increase costs.

US ahead on energy costs

In the interview, Wierod pointed to well-qualified workers, high-level education systems and the ability to manage crises as Europe’s strengths. The rapid reduction of dependence on Russian gas was proof of this.

However, due to the war in Iran and rising gas prices, the EU’s competitiveness against the US is deteriorating. Gas will remain available, but at higher prices, which according to Wierod is expected to persist in 2026 and 2027. This puts a greater burden on the EU than on the US, which has its own gas fields.

Wierod joins a growing number of business leaders calling for less red tape and faster reforms from the EU to boost competitiveness. Already last autumn, executives from Totalenergies and Siemens called in an open letter for less EU regulation.

Translated from Italian by AI/mga

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