The economy in Europe is under pressure due to crises and increasing competition. A report by former Italian Prime Minister Mario Draghi highlights weaknesses.
In the competition with companies from North America and Asia, the European economy must become significantly more innovative, according to former Italian Prime Minister Mario Draghi. Europe is stuck in a static industrial structure, writes the 77-year-old in a report commissioned by the EU Commission. Only a few new companies are emerging that are changing existing industries or developing new growth engines.
In the EU, many fear that local companies could be left behind. Another report this year stated: “While GDP per capita in the US increased by almost 60 percent between 1993 and 2022, the increase in Europe was less than 30 percent.”
Draghi now attributes this primarily to the technology sector. “Europe has largely missed the digital revolution triggered by the Internet and the associated productivity gains,” his report says. The EU is weak when it comes to new technologies that will drive future growth. Only four of the 50 largest technology companies in the world are European companies.
Source: Stern
