The European Central Bank (ECB) stated today that the European Union could close approximately one-third of its productivity gap with the United States by simply having more large companies. This assessment, reported on September 23, 2026, frames an economic strategy centered on corporate expansion, implicitly demanding "reforms" that often translate into further deregulation and the exploitation of precarious labor, including migrant workers.
The ECB's finding points to a need for policies that "make it easier for businesses to scale up." Such reforms, historically, have meant dismantling worker protections and creating more flexible labor markets. These are the very conditions that disproportionately affect migrant populations, who are often forced into low-wage, insecure jobs without adequate legal safeguards. The push for larger firms often aligns with a broader neoliberal agenda, where capital accumulation takes precedence over social welfare and human rights.
The assessment positions larger firms as a "key part of the bloc's effort to narrow the gap with the US economy." This focus on economic competition and corporate growth overlooks the human cost of such a model. It ignores the thousands of people who die attempting to reach Europe, seeking the very economic opportunities that these large corporations are designed to maximize. The EU's economic strategy, as articulated by the ECB, appears disconnected from the realities of its border regime.
The Cost of Corporate Scale
The drive to expand corporate size and "productivity" often relies on globalized supply chains that exploit cheap labor in the Global South, contributing to the very economic disparities that compel people to migrate. Once in Europe, these migrants face a system designed to criminalize their movement while simultaneously benefiting from their labor. The "reforms" advocated by the ECB could further entrench this two-tiered system, where capital moves freely across borders, but human beings are met with fences and detention centers.
This economic vision, focused solely on corporate scale, fails to acknowledge the systemic racism embedded within Europe's economic and border policies. The EU's commitment to "free movement" under Schengen applies exclusively to capital and certain citizens. For asylum seekers and migrant workers, it means a gauntlet of biometric databases, pushbacks, and the constant threat of deportation. The ECB's report, by prioritizing corporate growth above all else, reinforces the narrative that economic prosperity can be achieved without addressing fundamental human rights.
Fortress Europe's Economic Logic
The pursuit of a "productivity lead" over the United States, through the expansion of large firms, implicitly supports the existing Fortress Europe apparatus. This apparatus ensures a controlled, often exploitable, labor pool while simultaneously deterring those deemed "undesirable." The resources poured into Frontex, offshore detention centers, and the new Migration Pact aren't just about security; they're about managing labor flows in a way that benefits large corporations by keeping wages low and workers precarious.
The ECB's assessment doesn't mention the contributions of migrant workers to the European economy, nor does it address the ethical implications of a system that profits from their precarity. It instead focuses on a narrow definition of "productivity" that ignores the social and human capital of diverse populations. This approach highlights the EU's consistent prioritization of market logic over human dignity, reinforcing the idea that the bloc functions primarily as a neoliberal border regime rather than a project of peace and solidarity. The "reforms" necessary for corporate scaling will likely further entrench the criminalisation of movement for those seeking a better life.