During the New Industrial Ambition for Europe summit on January 16, 2025, in Brussels, the two companies painted a bleak picture of Europe’s digital future unless immediate steps are taken to bolster the telecom and technology sectors.

Co-hosted by Pekka Lundmark, CEO of Nokia, and Börje Ekholm, CEO of Ericsson, the summit attracted key political figures and industry stakeholders, including representatives from the European Commission, Polish Digital Affairs Deputy Minister Dariusz Standerski, and former Italian Prime Minister Enrico Letta. The central focus of the event was the findings of two influential reports released in 2024, authored by Letta and Mario Draghi, the former President of the European Central Bank. The reports offered a sobering analysis of the state of Europe’s telecom sector, emphasizing the need for consolidation and transformative policy changes to prevent the continent from falling behind in the digital age.

Lundmark, in his opening address, warned that Europe’s competitive edge was rapidly diminishing. “Europe’s competitiveness already has one foot in the mortuary, but there is still time to turn this tanker around,” he declared. His comments underscored the urgency of fostering an environment conducive to investment in emerging technologies, such as artificial intelligence (AI), cloud computing, and 5G connectivity. Without this, he argued, Europe risks becoming an afterthought in a world increasingly driven by digital innovation.

Ekholm also highlighted the growing threat, pointing out that despite Ericsson’s substantial investments in research and development (R&D) in Europe—investments that outpace those in other regions—the continent’s regulatory and investment environment is failing to keep pace with global competitors. As he put it, Europe’s slow response to innovation could soon render it irrelevant on the global stage.

Both CEOs stressed that a series of urgent measures are required to steer Europe back on course. They called for increased R&D investments, reduced regulatory barriers, and reforms to competition laws to stimulate growth and consolidation within the telecom industry. Moreover, they emphasized the need for a stronger alignment between Europe’s digital and environmental goals, urging clearer targets for 5G deployment and the enforcement of fair business practices to ensure a competitive market.

The summit concluded with a clear and urgent call to action for European policymakers. While the continent’s regulatory frameworks have long been seen as a hindrance to the fast-moving digital sector, the reality is that Europe’s leadership in technology is slipping away. With other regions accelerating their own digital transformation, Europe cannot afford to delay these critical reforms any longer.

In a world where the pace of technological advancement is ever-quickening, the summit’s message was clear: Europe must act now or risk losing its seat at the table of global digital innovation. The time to turn the tide is fast running out, and the stakes are higher than ever for the continent’s future in the digital economy.