At that moment, I have to decide – do I spare them by giving them the short answer or risk boring them with the long one? If you are still reading, it means I have chosen the latter.

For decades, Europe was synonymous with prosperity and stability. However, in recent years, the continent has lost its economic momentum, caught in a web of stagnation, declining competitiveness, and policy paralysis. Over the past decade, the Eurozone’s economic growth has been disappointingly weak. In 2024, the Eurozone barely grew by 0.7 percent, a stark reflection of its sluggish trajectory, according to Eurostat.

[Germany, once the powerhouse of the continent, ended 2024 with a 0.2 percent contraction in GDP, marking two consecutive years of recession –an unprecedented event in its post-war history. According to a recent World Economic Forum report, Europe's share of global GDP has plummeted from nearly 25 percent at the start of the millennium to just 15 percent today.

These numbers are not just data points; they signal a deeper malaise, a slow but steady erosion of Europe's economic standing in the world. As Mario Draghi warned, Europe risks a "slow agony" if it fails to address its structural deficiencies. In this climate of chronic economic stagnation, investment in innovation lags behind, energy costs remain cripplingly high, and young talent – rather than being nurtured – is either underutilized or fleeing to more dynamic markets.

So here is my short answer: I do not see opportunities for European youth who, like me, are deciding whether to stay or return home. As you may have gathered from the introduction, I am Spanish. You might know Spain for its cuisine and stunning beaches, or perhaps you have visited the ever-popular Madrid or Barcelona. And before you ask, no, I am not from either of those cities. I love my country. Yet, long ago, I made up my mind about not wanting to build my career there.

Spain, like much of Europe, suffers from high youth unemployment, stagnant wages, and limited career progression. In 2024, Spain’s youth unemployment rate stood at nearly 27 percent, among the highest in the EU. Even for those fortunate enough to secure jobs, many find themselves trapped in low-paying, temporary contracts with little job security or room for growth.

Beyond employment statistics, there is a deeper issue: Europe’s risk-averse and bureaucratic culture. While the continent has long positioned itself as a regulatory powerhouse, shaping global standards in key industries, it now finds itself falling behind in critical areas like artificial intelligence. As new economic powers emerge, the EU’s influence is waning. Ambition in Europe routinely clashes with outdated labor laws, excessive regulation, and sluggish institutions, creating an environment where young professionals are met with skepticism rather than opportunity.

Meanwhile, countries like China, the UAE, and Singapore are investing aggressively in innovation, attracting global talent, and fostering dynamic business ecosystems. Against this backdrop, Europe appears stagnant, clinging to past glory rather than adapting to a changing world.

Europe’s economic downturn is not simply a byproduct of external shocks; it is deeply rooted in structural deficiencies. The ZEW Economic Sentiment Index, which measures investor confidence, has been in a prolonged decline, signaling widespread uncertainty about Europe’s future. What is most concerning is that this collapse is happening in the absence of a global crisis, indicating that the problem is endogenous rather than cyclical. Similarly, the IFO Business Climate Index – a key measure of Germany’s economic health – has recorded consecutive months of decline, marking one of the longest downturns on record. This persistent slump underscores a stark reality: businesses themselves are losing confidence in Europe’s economic model, raising serious concerns about long-term growth prospects.

The case of Germany is particularly telling in Europe’s economic stagnation. As Wolfgang Münchau argues in Kaput: The End of the German Miracle, German success was more fragile than it seemed. The country’s reliance on a manufacturing-heavy, export-driven economy worked well in an era of globalization, cheap Russian gas, and an industrial boom in China. But these pillars have now crumbled. The energy crisis following the war in Ukraine has exposed Germany’s dangerous dependence on Russian gas, driving up costs for industry and making manufacturing less competitive. Meanwhile, China – once a key buyer of German machinery and automobiles – is now an aggressive competitor, outpacing Germany in critical areas like electric vehicles and high-tech manufacturing.

Münchau also highlights Germany’s self-imposed stagnation, particularly its obsession with fiscal austerity and rigid economic orthodoxy. The country’s infamous "Schwarze Null" (black zero) policy – an insistence on balanced budgets – has starved public investment in infrastructure, digitalization, and innovation, leaving Germany technologically behind and unable to pivot toward new growth sectors. The country’s once-mighty automobile sector is struggling with an identity crisis, caught between declining global demand for combustion engines and the slow transition to EVs, where China and the U.S. now lead. Münchau’s argument is clear: Germany’s "economic miracle" was never built to last. But more critically, its policymakers refuse to acknowledge the need for fundamental change. This is not just a German problem; it is a microcosm of Europe’s broader failure to adapt.

If Germany, the supposed economic backbone of the continent, can no longer sustain growth, what does that mean for Europe as a whole? The answer is bleak. Without radical policy shifts, Europe risks falling further behind in the global economic order, its influence fading into irrelevance.

But I do sincerely hope there are people more optimistic than me.

Perhaps Europe’s fate is not sealed – perhaps the continent will rediscover its ambition, shake off its complacency, and embrace the kind of bold reform that has long been overdue. Perhaps young Europeans will no longer have to choose between staying in the place they love and leaving in search of opportunity.

Yet hope alone is not a strategy. The question is not whether the world will wait for Europe to catch up – it will not. The real question is whether Europe has the resolve to break free from stagnation before it is too late.