ABB warns Europe risks mass unemployment without deregulation push

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Europe job loss risk warning

Highlights

ABB chief Björn Rosengren warns Europe risks mass unemployment if lawmakers do not pursue aggressive deregulation in response to rising gas prices and U.S. competition.
Wierod criticizes Brussels’ plan to reduce foreign technology dependence, arguing 'Made in Europe' measures may increase costs and negatively impact industrial competitiveness.
European commissioner Roxana Mînzatu estimates up to 1.3 million EU jobs could be lost due to persistent high energy prices, prompting ABB to advocate rapid electrification and decarbonisation.

Energy shock and reform pressure build

As reported by the Financial Times, Wierod says European lawmakers are showing little urgency on deregulation even as rising gas prices weaken the region’s position against the U.S. He points to the reform blueprint prepared by former Italian prime minister Mario Draghi for the European Commission nearly two years ago, arguing that only limited action has followed.

Speaking in New York, the ABB chief says Europe should remove legislation rather than merely simplify it, and strengthen the single market to support economic growth. He warns that waiting for a larger crisis before acting could result in mass unemployment across the region.

Wierod also says Brussels’ plan announced this week to reduce dependence on foreign technology could bring unintended consequences and raise costs. While backing resilience measures, he says ABB supports open trade and cautions that "Made in Europe" style rules can create harmful side effects for industry.

Industry impact and competitiveness concerns

ABB, based in Zurich, is one of Europe’s largest industrial engineering and technology groups, with a market capitalisation of almost $200bn. The company employs 52,400 people in Europe, nearly twice its U.S. workforce, even though the U.S. is its largest revenue-generating market.

Wierod says Europe retains major strengths, including a skilled workforce, strong education systems and an ability to respond in crisis, citing the rapid reduction in dependence on Russian gas from 35% to 10% within a year. But he says the latest supply disruption from the Middle East is pushing gas prices higher again, with elevated prices expected to persist through 2026 and 2027, adding more pressure on European industry than on the U.S., which benefits from domestic gas supply.

The wider concern is already being reflected in policymaker estimates. European commissioner for jobs Roxana Mînzatu says up to 1.3 million EU jobs could be lost because of higher energy prices, while ABB is pressing EU policymakers to accelerate electrification, industrial efficiency and decarbonisation as the fastest route to improving the bloc’s competitiveness.

In our earlier report on AstraZeneca’s warning about drug pricing, the company said pressure to tie U.S. medicine prices to lower international levels is strengthening the commercial case for prioritising the American market over Europe. CEO Sir Pascal Soriot argued that without higher reimbursement for innovative treatments in the UK and across Europe, new drug launches could be delayed or withheld because lower European prices can also drag down U.S. pricing.

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