Core Points - The article discusses the weakening economic engine of Europe, highlighting the challenges faced by the region's long-standing welfare model and its reliance on cheap energy and goods [1][3][5] Economic Performance - Eurozone GDP is projected to grow only 0.2% quarter-on-quarter in Q3 2025, with Germany experiencing zero growth [3] - Inflation is eroding purchasing power, leading to corporate relocations and a burdened welfare system [3][9] Welfare System Challenges - EU social welfare spending reached 26.8% of GDP in 2023, with some countries exceeding 30%, creating a heavy financial burden amid economic stagnation [9][11] - The phenomenon of "lazy economy" is prevalent, with young people in Belgium preferring unemployment benefits over work, complicating recruitment for businesses [9][11] Energy Crisis and Industrial Relocation - The war in Ukraine has led to skyrocketing energy prices, with German electricity prices reaching €0.50 per kWh, making it one of the highest globally [7] - Energy-intensive industries are relocating, with BASF closing some German production lines in favor of facilities in China and the U.S. [7][9] Demographic and Structural Issues - Europe faces structural challenges, including an aging population, with over 20% of the EU's population aged 65 and older [11][13] - Labor shortages and difficulties in integrating immigrants are exacerbating social tensions, with far-right movements gaining traction [13] Future Economic Strategies - The European Central Bank has lowered interest rates to stimulate growth, but the effectiveness remains limited due to low consumer and business confidence [15][17] - Strengthening economic cooperation with China is seen as a potential avenue for recovery, despite mutual dependencies [17][19] Competitive Landscape - European companies, particularly in the automotive sector, are facing increased competition from Chinese brands in the high-end market [19] - The choice between maintaining a high-welfare society and enhancing competitiveness is a pressing issue for European leaders [19][22]