"The reason Europe has been doing poorly lately is because of deluded utopists thinking it isn't. "
So you think that democracy is inherently poorer and weaker than autocracies? (Again, this sounds like Mencius Moldbug.) We have had our fair share of autocratic empires in Europe across centuries, all of them are gone. Many actually collapsed after losing a war. How so, if they are so inherently powerful?
We have different problems, such as aging of the population. But so does China, which worsened its own demographic situation by clinging to its autocratic One Child Policy until 2016, about 20 years more than it was even useful.
We also have a bureaucratic problem. Again, this is not specifically democratic disease. Every big country requires bureaucracy to run, and it can easily overwhelm the rest of the system.