Europe lags behind the rest of the world when it comes to technology, both in venture capital funding and innovation. That will soon threaten security in the region, predicts Germany’s top diplomat and former head of the Munich Security Council, Wolfgang Issinger.
Issinger told Politico that the continent is “clearly not in a good place” in trying to catch up with advances in defense and security technology.
“I think this is probably the biggest long-term challenge for the European Union. It’s the technology gap,” he said.
Concerns about European security have increased in recent years following Russia’s invasion of Ukraine, and the European Union (EU) is being asked to increase defense spending. Brussels has earmarked 7.3 billion euros for defense technology investments from 2021 to 2027, including automation software and 5G networks, Wired reported.
Despite Europe’s recent moves to strengthen its defense capabilities, the region still has a long way to go before it can match its peers in China and the United States.
“My optimism is somewhat limited because I don’t think any government agency, whether it’s at the national level or the EU level, can actually do that,” Issinger said.
These comments are straight from the horse’s mouth. Mr. Issinger is a former German ambassador to the United States and has spent most of his career advising Europe on defense, security and foreign policy matters.
He also led the Munich Security Conference, known as the “Davos with guns,” for 14 years. Held every February, the conference brings together the world’s top leaders on international security issues and is currently chaired by NATO Secretary-General Jens Stoltenberg.
Is the narrative that “Europe is falling behind” too old?
The story of Europe falling behind the United States and China is by no means new.
CEOs have been thinking about this topic for years. Pekka Lundmark, CEO of Finnish giant Nokia, wrote in a Fortune magazine column in July that Europe’s innovation engine was “underpowered” and that it needed to “acquire new technologies” to become competitive again. I wrote that I needed to.
In a recent podcast interview with the Financial Times, Norwegian sovereign wealth fund CEO Nicolai Tangen stressed that Europe is “far behind” as there are few big tech companies.
“Will we manage to catch up? I would be surprised if we do. Instead, what we are doing is introducing a lot of regulations,” he added.
Concerns about Europe’s technology ecosystem are growing, but not unfounded. Even the European Central Bank’s Mario Draghi highlighted what the region was losing in a scathing report last month. Concerns surrounding national security and global AI competition are also rapidly increasing.
At least Europe can boast of high regulatory standards that seem to be an inspiration to the rest of the world. The danger is striking a balance without impeding the region’s technological progress.
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