Laggard EU seeks growth fixes to compete in global shift to new technologies

(Reuters, 15 Apr 2024) The European Union risks being left behind by the United States, China and other rivals in the global shift to new technologies if it fails to radically improve the competitiveness and dynamism of its economy.

That is the consensus view of economists, business and many of the EU leaders meeting on April 17-18 to discuss how to drive the economic growth needed to maintain the bloc's championing of living standards and climate change action.

They are set to call for a "New European Competitiveness Deal" - which may give some a strong sense of deja vu after the growth-focused Lisbon Strategy of 2000 and the Europe 2020 plan that came a decade later. What is different now is the disruption of new technologies, from artificial intelligence to zero-carbon manufacturing, China's rise up the value chain, increased protectionism and the loss of cheap Russian gas on which EU industry had relied. Zach Meyers, assistant director of think tank CER, said the EU's problem was twofold, with growth stubbornly lower than that of its rivals and a lack of dynamism and innovation to adapt.

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Reuters, 15 Apr 2024: Laggard EU seeks growth fixes to compete in global shift to new technologies