EU innovation
Mario Greco, Zurich Insurance CEO (Credit: Zurich Insurance)

Europe’s Innovation Challenge: A Wake-Up Call from Zurich’s CEO

Mario Greco warns Europe to adapt and innovate or risk falling behind the U.S. and Asia

2 mins read

Zurich Insurance CEO Mario Greco has urged Europe to take decisive action to keep up with the innovation pace set by the U.S. and Asia. Speaking at the World Economic Forum in Davos, Switzerland, Greco emphasized that while the world rapidly advances, Europe risks falling further behind due to its preoccupation with stringent regulations and a lack of investment in transformative technologies.

“In a world which is going very fast forward, with lots of innovation, it’s a wake up call, again, for Europe. And I hope that Europe takes it seriously,” Greco told CNBC on the sidelines of WEF.

“Take all the developments in AI [artificial intelligence] and digital. Europe has not invested in that, as America and China have done. It is also the integration of financial markets in Europe. It is still [an issue of] how complicated it is to do business in Europe … And this is why I’m saying it again, Europe needs to wake up,” the Swiss insurance giant’s CEO added.

(Conceptual image capturing the theme of Europe and innovation generated by ACE-ChatGPT OpenAI)

Greco noted that in a dynamic global environment, Europe must adapt quickly to sustain its relevance, particularly as geopolitical forces like President Trump’s “America First” policies reshape economic interactions. He pointed out Europe’s complexity in conducting business and its hesitation to integrate financial markets as critical barriers to growth. According to him, these factors stifle progress and innovation in crucial areas needed for future economic stability.

While there is a huge amount of European startups and innovators, the issue is they start in the Old Continent and expand their businesses in the U.S. where access to capital is easier and companies are less burdened with red tape.

Greco’s comments serve as a wake-up call, stressing that Europe must recognize the urgency of fostering innovation to stay competitive on the global stage. His message also underscores the broader importance of balancing regulation with the agility required to embrace emerging technologies like AI and digital transformation.

Meanwhile, European policymakers appear to be aware of the urgent need to fix their economies and become more competitive, in the face of burgeoning economic competition and rivalry from the U.S. and China.

“The new Trump administration should be a wake-up call for Europe,” Belgian Finance Minister Vincent Van Peteghem told reporters on Monday according to Reuters. “Rather than focusing on retaliation (against U.S. tariffs), we should focus on the challenges of Europe – the decreasing competitiveness and the increasing productivity gap that we face” he said.

Experts argue that fostering public-private partnerships, simplifying regulations, and increasing investment in research and AI could help Europe bridge the innovation gap.