ABB chief executive Morten Wierod warned that Europe could slide into mass unemployment if policymakers fail to roll back regulations that choke competitiveness. He linked the surge in energy costs from the Iran‑Russia conflict to a widening gap between EU manufacturers and global rivals, arguing that current rules stifle investment and drive firms abroad.

Wierod urged an urgent deregulation agenda, citing the need to cut compliance burdens that add billions to production costs. He pointed to the EU’s energy shock as a catalyst that could erode export markets unless firms regain pricing flexibility. The plea comes as European industry grapples with slower growth and rising labor shortages.

Investors should watch for policy shifts in Brussels that could reshape the continent’s industrial outlook. A swift reform package could restore margins for exporters and curb the risk of factory closures. Without such action, the region may see a sustained decline in manufacturing output and job creation.