A recent policy brief from ECIPE investigates why the European Union's productivity growth has consistently lagged behind the United States. The authors argue that this gap, evident since the 1990s and widening despite some bright spots in Eastern Europe, stems from structural deficiencies in the EU economy. Key factors identified include lower EU investment in R&D and intangible capital, slower business dynamism, and less attraction of foreign direct investment compared to the US. To reverse this trend, the brief recommends that European policymakers should prioritize increasing R&D spending, investing in digital infrastructure and intangible assets, revitalizing the single market, and fostering a more competitive business environment. Ultimately, the analysis aims to pinpoint areas for improvement to help the EU achieve stronger productivity and economic growth.

#MEGA - Make Europe Great Again