They self identify as a "regulatory superpower", the EU officials see their primary strength not in the economic and social strengths of their member states, but in the gigantic bureaucracy that they have created.

EU economies have benefited greatly from the removal of barriers between countries. The EU officials didn't see that as a sign that the strength of the EU lies in their members freedom, but as a sign that now every single issue should be regulated by EU officials.

That is why you have laughable things like the recent AI regulations. An entire continent with barely a single AI company wants to tell the rest of the world what to do. The cause is pretty clearly in the delusional minds of EU officials who genuinely believe that their regulation are worth more than the paper they are written on.