Remaining competitive is fundamental for Europe’s future, Snömos från Lagarde och von der Leyen

Europe’s perfect storm

Discussions of competitiveness are front and centre in Europe right now.

European Commission’s new Competitiveness Compass, its answer to the Draghi report, calls for the EU to build its own artificial intelligence infrastructure

I lived and worked in Europe for 10 years, just when the single currency was introduced. It was an optimistic time. 

But since then Europe has lagged the US on pretty much every economic metric, from growth and per capita income to the size of capital markets and the number of high-value technology companies.

But they also reminded me of the conversation Europe has been having for two decades about capital market integration, deepening cross-border ties in the services industries and creating a true fiscal union. 

So far, so 2005.   

Rana Foroohar Financial Times 2 February 2025

https://www.ft.com/content/7e37b937-9ccd-44fd-bcbf-156b27fa90ec

We need faster economic growth and higher productivity to protect the quality of life for Europeans — from their jobs and incomes to their security and welfare. 

That is why Europe must act. Our competitiveness is at risk. 

We need profound change on three fronts. 

First, we need to make the EU an easier place for innovative companies to grow. 

Second, we need to make Europe a better place to invest.

Third, we need to make doing business in Europe cheaper, especially in terms of energy costs. 

We need massive investment in grids and storage and smarter market design. 

Christine Lagarde and Ursula von der Leyen Financial Times 31 January 2025

https://www.ft.com/content/fba6b27a-3a72-4451-8c75-ea8533c62681