Earlier quoted context omitted.
Because it’s hard to fire someone in the EU. Eastern Europe is cheaper and so is India.
That's a myth. How is it hard to fire someone? I live in Austria and you can fire people for pretty much any reason. You have to give them 6 weeks notice, and there are some extra protections for people who are old or who have disabilities and who have been working for your company for a long time, but even then you can fire them. You can even fire people for getting sick a lot. And that's assuming you directly hire…
Maybe the statement isn't true for EU as a whole, but some member countries have far higher bar than what you describe. For instance in Spain the company must provide justification to the government before firing someone.