Tse, Τ. and Esposito, Μ., (2014), “Investing in ‘pockets of excellence’ in periphery countries would help the EU address its lack of competitiveness”, LSE Blogs, 19 February.
We are currently at the beginning of a crucial year for the EU. While we are still struggling with the ongoing Eurozone crisis, European Parliament elections will be taking place this coming May. This means that work is already winding down and the new EU machinery may not be running in top gear until 2015. With EU countries still potentially requiring rescue and austerity programmes, the EU’s competitiveness may further deteriorate.
What to do and what not to do to build competitiveness.
But this does not have to be the case if the EU and national governments turn their target to raising competitiveness. Contrary to what many people believe, the fundamental trouble of the Eurozone is much less about heavy debt – both the US and Japan are more indebted – it is its inability to compete effectively. As several of our colleagues have previously pointed out, enhancing productivity through innovation is the only way to restore competitiveness. And the EU has to do more – much more – on this front.
Relevant Posts
- Mariniello, M., (2014), “Why Competition Policy matters for Growth?”, Bruegel, 18 February.
- Kastelli I. and Caloghirou, Y., (forthcoming), “The impact of knowledge-intensive entrepreneurship on the growth and competitiveness of European traditional sectors”. In H. Hirsch-Kreinsen , I. Schwinge (eds.), Knowledge-Intensive Entrepreneurship In Low-Tech Industries, Cheltenham: Edward Elgar Publishing.
- Priestley, J., (2014), “EU election fault lines: Jobs and growth”, Policy Network, 18 February.