‘The best on Earth’: Can weak economic growth undermine Europe’s ‘very sophisticated social system’?

Pascal Lamy, a former European Commissioner for Trade and former Director-General of the World Trade Organization, says the continent's mounting economic and political tensions are rooted in a deeper predicament.

He looks beyond the immediate turmoil in France to identify a widening disconnect between Europe's social commitments and its capacity to generate the economic growth needed to sustain them.

The question of whether Europe can continue to sustain one of the world's most ambitious social models while falling increasingly behind its major economic competitors is central to this analysis.

Growth and social commitments

Lamy's analysis suggests that the continent's sophisticated social system is at risk of being undermined by a failure to achieve robust economic growth.

The tension between these two pillars—social ambition and economic capacity—creates a fundamental challenge for European policymakers.

Competitiveness and political tensions

A decline in competitiveness against other major economies further exacerbates these internal European tensions.

Lamy's warning highlights the critical need for Europe to bridge the gap between its social aspirations and its economic realities to ensure long-term stability.