Speech by President Alar Karis at the opening of the Delphi Economic Forum: Europe’s strength lies in its people

Ladies and gentlemen,

Happy to be here in Delphi and to have a privilege to speak as one of the first speakers at the highly regarded Delphi Economic Forum, a gathering where entrepreneurs, finance people, academics and politicians meet.

It is always important and beneficial for various parties to get together, exchange ideas in order to influence the agenda.

In Estonia - and I believe across Europe, including here in Greece - we often hear the narrative of a weak Europe, lagging behind the United States and China in competitiveness.

There is some truth to concerns about Europe's competitiveness. But the solution is not to turn Europe into America or Asia. Rather, it is to build on Europe's own strengths.

Europe's greatest strength lies in placing the individual and human values at the very centre. The European economy is a human-centred economy.

The rights and freedoms of individuals to shape their own future, to express themselves freely, and to live according to their own choices are fundamental values. These values are deeply connected to Greece. Actually, they originate from Greece.

A human-centred economy values culture and human life. It is an economy that attracts talent and develops the skills of young people through strong education systems and a vibrant cultural space.

Investing in people is even more important than building new railways or ports. Human capital raises productivity and creates value.

Talented and well-educated people are the ones who advance science, and through it, business and society as a whole. We have had a lesson in the past, about 100 years ago. Europe lost its competitiveness in the 1930s, when human values were pushed aside across much of the continent.

Today, as forces that again sideline human values are gaining strength globally, Europe has an opportunity to stand out as a place that attracts talent from around the world and grows through smart entrepreneurship.

Ladies and Gentlemen,

A strong social safety net plays an important role in innovation. Doing something new often requires taking risks.

Taking risks requires trust - in public institutions, but also in one's community and family. It requires knowing that if a risk does not succeed, there is a safety net that allows one to recover. In this respect, the Nordic model is a good example: an economy that is highly market-oriented yet supported by a social system that provides security. Thanks to the courage to take risks and a high degree of economic freedom, the Nordic countries are among the most successful economies in the European Union.

Greece itself is a success story of economic reform. Over the past decade, you have made enormous progress in leaving the crisis behind and return to a functioning and growing market economy, showing Europe that change is possible and that reforms can deliver results.

Friends,

Not all technologies need to be invented in Europe from scratch. But we are able to learn, adapt, and improve upon what exists. We are capable of developing smart and innovative solutions that make life simpler and more efficient.

My home country, Estonia, is a good example. Over the past 30 years, we have become a digital society where all public services are available online. This saves time, reduces bureaucracy, and improves access to services.

You no longer need to travel to a city to handle administrative matters - in fact, you do not even need to be in Estonia. An Estonian citizen can manage their affairs digitally even while on holiday in Greece. Only what one needs, is a net-connection.

Of course, the digital transition has not been without challenges. There is still room for improvement in the adoption of digital tools among small businesses. The challenges faced by small enterprises in Estonia are similar to those here in Greece.

However, I believe that the development of artificial intelligence will encourage many small firms to adopt digital solutions. Due to their flexibility, small companies can often adopt new technologies faster, and cloud-based AI solutions do not always require large upfront investments or additional staff - a subscription may be enough.

The adoption of AI is also an area where Europe's human-centred approach matters greatly. Using new technologies in ways that empower people rather than replace them, requires strong education and often good management skills.

European societies are well positioned to develop these skills through cooperation between the public and private sectors. In Estonia, for example, we have recently launched the program called Estonia.AI.

This is aimed at equipping a large share of the population with AI skills, so they can apply them in their work and become more productive.

To strengthen education, I have also initiated an "AI Leap" program, which aims to develop AI tools for schools to improve learning outcomes. Children are already using AI; what matters is that teachers have the tools to guide them in using it in ways that enhance learning quality, open up the minds and enhances creativeness.

I believe that leveraging technology and applying education more effectively in the economy will help to create new incentives in entrepreneurship.

Returning to the idea of a human-centred economy it can strengthen Europe's labour supply by supporting people through better healthcare, workplace safety and childcare.

To address other bottlenecks like fragmentation and insufficient integration in Europe we need more harmonized institutions, deeper capital markets, greater trust and cooperation between countries.

Strengthening a common capital market would help close the investment gap and keep European savings within the region.

It would also boost competitiveness, particularly through investments in energy and defence and reduce external dependencies in an increasingly uncertain geopolitical environment.

To conclude,

I am not pessimistic about Europe's economy. I believe Europe has strong prospects. With my background as a scientist, I believe that growth is driven by smart entrepreneurship, which depends on good education - and ultimately on people.

It is people who will deepen cooperation in Europe and advance the single market. A society that places individual freedoms and the human being at its centre will thrive.

I wish you innovative and thought-provoking exchanges for the next four days.