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Europe probably has more raw capacity for power in terms of labour and technology but it's much less capable of marshalling it towards a goal. The fact that you have to go through the market economy makes all the resources needed to exercise power more expensive. Russian shells cost 4x less than Europe's. More centrally managed economies tend to outcompete at this. Having to go through the 27 countries democracies to direct it is another challenge. All Russia has to do is get several Orbans in domestic governments to keep the power level low. In effect Europe is less strong than Russia even though it could be much stronger. And this doesn't stop with milirary power. Even simple stuff like tackling internal security from sabotage, economic security etc.
There's also other structural blockers to projecting power, like the external energy dependence. Europe was critically dependdnt on Russian fossil fuels. Now a significant portion has been shifted to the US. As a result, uncle Donnie has a significant say in EU's ability to exercise power over entities he likes.
This is why Kallas'es statements look more like stern finger wagging than anything real to anyone aware of these issues. Or Germany's stern warnings to the Russian ambassador. Kaja gives good strong vibes to the EU citizenry but it's not changing the material reality. Eventually it would stop working. My guess is that's gonna happen quickly once uncle Donnie decides to go through with taking Russia's reserve money under her nose and giving it to his corporations to invest in Russia, like they're planning to.