I find it very strange that the word "non-compete" does not occur in the article. Having California style non-compete legislation sounds like it would be one of the easiest steps to improve European competitiveness.
From what I understand, in Germany at least, companies can demand that employees sign a non compete. However, once an employee departs the company, if the non compete agreement prevents the former employee from finding suitable work, the company must pay your salary until it can either prove that the non compete agreement is not the issue or until it releases the former employees from the agreement. Given those conditions, companies very rarely enforce their noncompete agreements and they’re functionally toothless.