MEGA - Make Europe Great Again

This paper, published in January 2025 by the European Investment Bank, the Vienna Institute for International Economic Studies, and the Austrian National Bank,  examines the state of innovation and competitiveness in Central, Eastern, and South-Eastern European (CESEE) EU countries . It highlights that while these countries have  increased their innovation capacity, significant challenges remain ,...

This European Central Bank publication examines the  challenges facing European competitiveness , emphasizing the critical role of  institutions and the necessity for structural reforms . It identifies  low productivity growth ,  burdensome regulations , and  demographic shifts  as key issues, exacerbated by global tensions. The article argues that  boosting productivity through investment, innova...

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 capit...

The European Commission's  "EU Competitiveness Compass"  outlines a strategy to revitalize Europe's economic standing by addressing innovation gaps, promoting a joint path for decarbonization and competitiveness, and reducing strategic dependencies. This communication identifies  longstanding structural weaknesses  hindering the EU's growth, particularly in productivity and t...

This IMF working paper  investigates the causes behind Europe's lagging productivity growth compared to the United States.  Through firm-level analysis, the authors identify  performance gaps in both leading and young, high-growth European companies.  The paper highlights  smaller market sizes and limited access to equity financing as key obstacles for larger firms , while  skill shortages and...

A  Nature News  article reports on a directive from  Trump's team  ordering significant  government layoffs , which is anticipated to negatively impact  science  due to associated budget cuts. The piece features insights from scientists within  US agencies  regarding the potential consequences for their staff and funding. An update notes the  National Science Foundation  later reinstated some...

Sorry for the missing episode: I've been busy with consulting assignments! We're back: The first document is the European Commission's 2025 Annual Single Market and Competitiveness Report, assessing the EU's economic competitiveness. It highlights weaknesses like high energy prices, lagging productivity, and insufficient innovation, alongside strengths such as a large single market...

Germany and France  jointly propose a new EU agenda to boost competitiveness and growth over the next five years.  Key priorities  include strengthening the Green Deal and its Industrial Plan, reducing bureaucratic burdens, and fostering innovation.  The plan addresses  competitiveness challenges, including strategic dependencies and structural weaknesses, by promoting investments in green and dig...

This European Commission communication addresses the EU's long-term competitiveness beyond 2030. It examines current challenges, including weaker productivity growth compared to other major economies and increasing reliance on global supply chains. The communication proposes nine key drivers to enhance competitiveness, focusing on strengthening the single market, boosting investment, improving...

Today we analyze a recent Elcano Royal Institute report that analyzes the widening competitiveness gap between the EU and the US. Using nine key performance indicators from the European Commission and additional metrics. The authors assess EU performance in areas such as the single market, access to capital, public investment, R&D, energy, digitalization, and education. The analysis reveals si...

This McKinsey Global Institute article assesses Europe's competitiveness in a new geo-economic era. While Europe excels in sustainability and inclusion, its economic growth lags behind the United States, creating a significant prosperity gap. The authors identify seven key areas impacting competitiveness—innovation, energy, capital, supply chains, talent, size, and competition—and propose ambitiou...

An online community led by Philipp Herkelmann proposes the creation of "EU-Inc," a unified, digital-first private limited liability company structure for the European Union. Let's deep dive into this initiative, a proposed shortcut to work around the drawbacks of Europe in the areas of creating, funding and running businesses on the continent. This aims to address the challenges of fragmented nati...

This report by Enrico Letta assesses the European Union's Single Market, identifying challenges to its effectiveness and proposing solutions. It emphasizes the need for increased economic security, a strengthened rule of law, and deeper integration across various sectors, including finance, energy, defense, and healthcare. The report advocates for regulatory simplification, enhanced digital infras...

Analyzing Mario Draghi's report to the European Commission: "The future of European Competitiveness" (September 2024) (Created using NotebookLM)