Europe at a Crossroads: Can the EU Reclaim Its Competitiveness in a New Global Order?
“The future belongs to those who prepare for it today.” — Malcolm X.
Europe’s competitiveness, once a cornerstone of global economic stability, is now under threat. With slowing growth, rising geopolitical instability, and a widening innovation gap, the European Union faces an existential challenge. The EU must navigate a complex landscape of risks and drivers to secure its place on the world stage. If the right actions are not taken, Europe risks being left behind in a rapidly changing world.
The question is: Can Europe transform and compete, or will it fade into irrelevance?
The Challenges: An Uncertain Path Ahead
Europe’s economic growth has been stalling for decades, with productivity levels lagging significantly behind those of the United States. The gap in GDP per capita between the EU and the US has grown from 15% in 2002 to 30% in 2023. Productivity, the lifeblood of long-term economic growth, has been Europe’s Achilles heel. Technological change is accelerating, but Europe’s ability to capitalize on it has been dismal. Only four of the world’s top 50 tech companies are European, and the EU spends €270 billion less on research and innovation compared to the US.
