Munich: Europe has lost competitiveness but has the potential to get better, the prime minister of Luxembourg said Sunday. The EU needs to do more as a bloc to become more competitive, Luc Frieden said on the final day of the three-day Munich Security Conference.

According to Anadolu Agency, Frieden spoke at a panel on reviving European competitiveness and mentioned that the American economy has not changed in the three weeks since President Donald Trump came to power. The previous administration under Joe Biden had passed the Inflation Reduction Act and similar legislation. Frieden highlighted that the US has made significant efforts to attract investment, and emphasized the need for Europe to capitalize on its strengths, including a market of 400 million people. However, he stressed that Europeans need to do more to enhance their competitiveness.

Frieden pointed out the challenges to making the European market more appealing, stating that the bloc must deepen the single market due to existing hurdles to cross-border activities. He remarked that Europe often functions as 27 member states rather than as a unified bloc and suggested that more efforts are needed in research and innovation. Although the European Commission is reviewing several regulations, Frieden noted that implementation will take time.

He further stated that the EU's challenge is to match the speed of other competitors like the US and China. Frieden acknowledged the loss of competitiveness but remained optimistic about Europe's potential for improvement. He urged Europeans to adopt a more positive outlook on Europe, suggesting that significant achievements could be made on the continent.

Frieden's comments came amid an ongoing discussion about the future of US-EU trade ties, following US President Donald Trump's recent announcement of 25% tariffs on foreign steel and aluminum.