Here's the thing—when firing people becomes a legal nightmare, companies stop taking risks. Europe's biggest corporations face this exact problem. The strict employment protections that make sense on paper actually push firms away from betting on innovation and emerging technologies.

Why? Because hiring for a risky new division means potential layoffs if things don't work out. And in Europe, that's expensive, complicated, and sometimes almost impossible. So instead of experimenting with new markets or tech, these firms play it safe with existing revenue streams.

The irony is brutal: stronger worker protections, meant to help people, can end up hurting the entire economy. When continental giants stop innovating, startups struggle to compete, talent gets frustrated, and the whole region falls behind. It's a classic case where good intentions on labor policy create unintended consequences for economic dynamism.

The result? Brain drain, slower growth, and Europe gradually losing ground to more agile economies.