The fundamental problem EU faces is that energy costs in Eurozone are much higher than in US or China. This makes manufacturing uncompetitive. This is leading Europe to rely more on imports while exports are now dropping.

You can see here how manufacturing sector in Europe got destroyed after the war started. Industrial PMI under 50 indicates a contraction, and it’s been steadily contracting for the past three years.

https://tradingeconomics.com/euro-area/manufacturing-pmi

The only solution here would be to either start creating state owned industry or to do massive subsidies for companies to start creating domestic industry. Neither option seems to be possible under the current system.