McKinsey: What are the biggest disruptive currents Europe is facing, and how can the region overcome these vulnerabilities?
Marco Piccitto: One key disrupting factor will be technology. We did some research on the technological gap between the United States, Europe, and China, and if you look between now and 2040, we think 50 percent of European growth can actually derive from bridging that gap. So it’s a big arena, will be a big disruption, and will be very, very important.
Looking forward, I think Europe should revisit policymaking and investment, which is already something in the works. But we have to make sure we invest in technologies which will change the future, obviously leveraging Europe’s existing strengths.
Two examples. In semiconductors, the new investment deal from the European Union is as large as the one from the US government, around $50 billion. So that’s a good way to bridge that gap. And on sustainability, Europe can invest a lot while leveraging its strong starting point. Europe is very good in terms of renewable energy and its ability to transition to a net-zero economy. So that’s an area where we should invest even more to develop technologies we can export globally.